Proposed Minneapolis Budget is a Welcome Step Toward Home
On August 15, Minneapolis Mayor Jacob Frey presented the budget for 2023. Beacon applauds the proposed increase to the Affordable Housing Trust Fund (AHTF) from $15 million to $18 million for both 2023 and 2024. In 2019, the Mayor and Council budgeted a record $21 million for the AHTF. Since that year, the amount has never been as high, and we have advocated for an increase in 2023 that allows the city to keep up with costs of building new housing.
Providing this crucial source of capital has led to significant results in Minneapolis. Mayor Frey noted today that “unprecedented investment in the Trust Fund is resulting in unprecedented new affordable units,” noting the four-fold increase in total apartment units since 2019. “Even though these results are incredible I’m beginning to expect them each year, as should you.”
The City of Minneapolis has partnered with Beacon many times as we work to provide homes affordable for residents with very low incomes. AHTF awards have helped make possible the expansion of Lydia, the construction of Bimosedaa, and the future Emerson Village, to name a few.
Still, there are many renters struggling to afford a home in the city, and there is much that needs to be done if Beacon and other developers are to provide an adequate number of homes affordable for households at or below 30% of the Area Median Income (AMI) (around $31,000 for a family of four). We are committed to working together with the city to increase the 30% AMI homes built with AHTF dollars. This year’s increase in the budget would help keep Minneapolis from falling behind on the progress that has been made during a time of rapidly rising costs.
We know that Mayor Frey has been a champion for creating affordable housing in the city, and we are excited to work with him and the City Council to build more 30% AMI homes if they pass this budget. In a time of rising building costs, we praise this forward-thinking budget that moves the City of Minneapolis closer to our Beacon vision where all people have a home.
