A commentary in the Wall Street Journal outlines how the consumer price index is out of date and includes luxury items. To assess true living costs, the Ludwig Institute for Shared Economic Prosperity created their own cost-of-living index that contains only necessary elements a family needs to live—housing, food, fuel, and healthcare—and leaves aside Rolexes. This swaps out items you might have needed in 2008, like a landline phone, for items you need today, like a smartphone. "According to the Minnesota Housing Partnership, a third of households in the state are renters, 'one of the largest renter populations in the Upper Midwest.' The American Community Survey shows that renters are almost twice as likely to spend 30% or more of their income on housing as homeowners are. The CPI doesn’t do justice to their situation."

The National Low Income Housing Coalition have released their annual Out of Reach report.  The report shows that low-wage workers are facing severe challenges in affording housing amid record-breaking rent increases. The report highlights the mismatch between the wages people earn and the price of decent rental housing in every state, county, and metropolitan area in the U.S.

The report also calculates the “Housing Wage” a full-time worker must earn to afford a rental home without spending more than 30% of their income on housing costs. This year’s national Housing Wage is $25.82 per hour for a modest two-bedroom home at fair market rent and $21.25 per hour for a modest one-bedroom home. Read NLIHC's full report here. 

Hours at Minimum Wage to Afford a 1-Bedroom Apartment.

MHP's Minnesota snapshot of the 2022 Out of Reach report highlights state and county trends that reveal that households in every corner of Minnesota are spending thousands of dollars more than they can afford each year just to pay the rent for a modest apartment. Now more than ever, as evidenced by the rippling effects of the COVID-19 pandemic, housing security is central to overall health and well-being.

One exemplifying fact: Out of Reach shows that a minimum wage earner in non-metro Minnesota must work 48 to be able to afford rent for a one-bedroom apartment, and a whopping 80 hours per week in the Twin Cities. Many top in-demand jobs earn less than the housing wage, including critically needed healthcare.

The United States Treasury Department has recently announced new guidance to increase state, local, and tribal governments’ ability to use Coronavirus State and Local Fiscal Recovery Funds (SLFRF) authorized in the  American Rescue Plan Act (ARPA) to support affordable housing development, including through the Housing Credit.

The guidance aims to provide additional flexibilities for the use of SLFRF – $350 billion provided to all levels of state and local government – to Treasury’s January 2022 final rule for SLFRF.  Learn more about the new guidance, and what it means for Housing Credit development from The Action Campaign here!

The department of Housing and Urban Development (HUD) has announced the Initiative for Unsheltered and Rural Homelessness to help communities humanely and effectively implement coordinated approaches for solving unsheltered homelessness with housing, health care, and supportive services. The package includes:

• $322 million in Continuum of Care (CoC) Program grants, with $54.5 million set aside specifically for rural communities, through a Special Notice of Funding Opportunity to fund homeless outreach, permanent housing, supportive services, and other costs. 
• $43 million for approximately  4,000 new Housing Choice Vouchers that will be allocated through a separate notice to public housing authorities

On July 29th the Senate Appropriations Committee Chairman Patrick Leahy (D-Vt.) released the Chairman’s mark of the 12 senate appropriations bills which includes funding for HUD, USDA, and Treasury, among other government agencies. The FY23 appropriations legislation would allocate $70 billion for HUD, an increase of $4.3 billion above FY22, providing robust funding levels for key housing and community development programs.

Additionally, Senate Majority Leader Schumer (D-NY) and Senator Manchin (D-WV) outlined an agreement on a reconciliation package, titled the Inflation Reduction Act of 2022. The proposal includes provisions on climate, energy, healthcare and tax. While the package does not focus on housing, it includes a number of housing-related climate items.

The Biden-Harris administration has unveiled a new effort designed to assist low-income residents connect to solar power and help lower their electricity bills. The new guidance from HUD is designed to clear the way for residents living in HUD-assisted properties to access cost-saving community solar subscriptions without inducing any rent increases or utility allowance adjustments.

The Federal Funding Hub is a coalition of partners that help local governments and their partners make the most of opportunities under the American Rescue Plan Act (ARPA) and other federal funding programs.

As a part of this effort they have developed the MSP ARPA Tracker which shares how 17 cities and 12 counties have committed the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund dollars in its first year. The tracker Includes all funding commitments made before 3/15/2022 (1 year after the passage of ARPA).

MHP created the The Emerging Developer Initiative for Northwest Minnesota (EDI) to support the emergence and professional development of new housing developers from rural communities and Native Nations in the area. The EDI team hit the road running in the past couple months, recruiting a cohort that includes participants from all three Native Nations in the Northwest with projects ranging from small home cluster communities to mixed/use and multi-family workforce housing. In September, MHP will be presenting the first of two Housing Opportunity Workshops in Bemidji. The sessions include an interactive overview of housing development, a multi-sector panel discussion exploring regional perspectives and approaches to housing, and a roundtable of subject matter experts providing resources and covering such topics as energy, proforma development, financial resources, and business development and marketing.

Contact Community Development Manager Donald Goggleye at donald.googleye@mhponline.org for more information or to register.

Engaging candidates is an opportunity to elevate housing as a top issue area in the election. Hear from MHP and housing advocates about candidate questionnaires, organizing and participating in forums, digital advocacy and more as ways to educate and engage with candidates in the lead up to the November elections. You'll also learn about how to engage as a 501c3. Join us!

Minnesota is in a housing crisis that needs immediate and impactful action. Join us as we hold a conversation with candidates for Governor about homelessness, housing instability, and home ownership at:

Wayzata Community Church, 7 - 8:30 PM, 125 Wayzata Blvd E. Wayazata, MN 55391

This event is sponsored by ACER | Aeon | Beacon Interfaith Housing Collaborative | Catholic Charities of St. Paul & Minneapolis | Equity in Place | Habitat for Humanity of Minnesota | HOME Line | Housing Justice Center | Inquilinxs Unidxs Por Justicia | Interfaith Outreach | Lutheran Social Service of MN | Minnesota Coalition for the Homeless | Minnesota Housing Partnership | Model Cities | New American Development Center NADC | Outreach Development Corporation | People Serving People | Project for Pride in Living, Inc. | Simpson Housing | Twin Cities Habitat for Humanity | Urban Homeworks