With Nick Erickson, Executive Director of the Housing Affordability Institute and Senior Director of Housing Policy at Housing First Minnesota
Q: What has been Housing First Minnesota’s role in the policy discussion?
A: Unlike most heavily regulated industries, housing is predominantly a state and local issue. For our industry and our members, it is critically important to be engaged in the policy discussions at the state capitol, at state agencies, and in city halls. Crafting better housing policy is essential for homeownership to be attainable for future generations and for the industry to grow.
What makes Minnesota unique is that here the housing industry is driving the housing policy discussion. Because of our membership’s expertise in every facet of housing, Housing First Minnesota and its members are able to lead the housing discussion. This is done through the association’s strategic communications platforms, as a part of our advocacy efforts, and through Housing Affordability Institute.
Given the depths of Minnesota’s housing challenges, having skilled professionals who can explain why housing costs as much as it does and what to do about it, ensures we focus on the topics and solutions that will do the most good for the housing market and future homeowners.
Q: What is Housing Affordability Institute?
A: In 2018, Housing First Minnesota founded Housing Affordability Institute, a 501c(3) nonprofit housing policy think tank. The Institute has played a critical role in reorienting the housing policy
discussion in Minnesota.
Its first project, Priced Out: The True Cost of Minnesota’s Broken Housing Market, was released in February 2019 and highlighted the state and local housing policies in Minnesota that are pricing new
homebuyers out of the market.
Last year, the association’s leadership saw a need for continued investment the Institute. In January, the Institute launched new programming aimed at increasing understanding of Minnesota’s housing problems and the solutions necessary to increase housing affordability, inventory, and access. Our
programming includes policy research, white papers on affordability issues, events, and commentary.
You can learn more about Housing Affordability Institute at HousingAffordabilityInstitute.org.
Q: Zoning is at the forefront of the housing debate at the moment. Why is this topic getting so much attention?
A: Zoning determines what is built and where — but there is far more at play. Due to reliance on outdated policies that favor large lots that many new homebuyers can no longer afford, much of the new housing in the area is approved via planned unit development. Because of this, zoning in the Twin Cities includes more than height, width, and setbacks.
Zoning controls paired with private negotiations determine project density, community features, offsite improvements, luxury aesthetic mandates, extra-large garages, and other requirements that add to the cost of housing.
In the past, this process has been used to force builders and developers to accept illegal and unauthorized terms and conditions, such as street impact fees, as a requirement for project approval.
All of this has an impact on housing affordability and access.
Q: Aside from zoning, what else is driving the policy conversation in Minnesota?
A: The critical lack of housing and the impact this has on housing affordability and access are at the core of much of the policy discussion, including zoning.
On the rental side, there has been a lot of focus on rent control policies and the conversion of single-family homes from for-ownership to rentals. On the existing home side, there are concerns over sharp increases in home prices.
These are symptoms of a broken housing ecosystem, one that is chronically undersupplied due to roadblocks to affordability and new construction.
Increasing the understanding that Minnesota must increase affordability and access is an important job for both Housing First Minnesota and Housing Affordability Institute.
Additionally, there are two obstacles faced by the industry that contribute to the discussion.
The first is NIMBYism. Elected officials face pressure from a vocal minority of residents who are opposed to new housing, particularly new starter homes.
The second is that state and local policymakers don’t often view policy decisions as a housing issue and the impacts on housing affordability and supply are not considered.
Q: How can members get involved in the policy discussion?
There are many ways our members can get engaged in the housing policy discussion.
- When meeting with policymakers and regulators, be sure to explain the ways they can lift roadblocks and make it easier for you to build new housing or renovate existing housing.
- Sign up for Housing First Minnesota’s grassroots by texting HOUSINGFIRST to 52886. Our advocacy team will send alerts when we need you to contact policymakers who are considering changing housing policies in Minnesota.
- Share Housing First Minnesota and Housing Affordability Institute’s content with your teams.
