HOUSING

Bemidji City Council passes resolution to apply for housing infrastructure grant

TJ Rhodes — Tue, 10 Jun 2025 14:58:10 GMT

BEMIDJI — The Bemidji City Council approved a resolution during a Monday special council meeting that allows the application of a housing infrastructure grant. If awarded, a significant housing project that immediately brings 39 mixed-income units to Bemidji would follow, with additional phases set for the future.

The Headwaters Regional Development Commission is leading the application process to develop a potential housing project on Beltrami County Housing and Redevelopment Authority land. The HRDC can secure up to $500,000 for its proposed project; the city must match the awarded grant.

The match initially led to concern when the application was first proposed during a May 27 council work session.

Some councilmembers wondered if the city could afford a $500,000 pledge. City Manager Rich Spiczka explained that the city could utilize Tax Increment Financing to fund the project, but did not have an official figure. Thus, the council asked for an official figure before an official vote.

And during Monday's meeting, Spiczka explained that the city would be able to use roughly $448,000 of TIF for the project. Additionally, the Beltrami County HRA pledged $100,000 toward the project.

The city would still need to pay its portion of the funding up front, as TIF is awarded after a project concludes. To accomplish this, Spiczka said the city could use enterprise funds.

Mayor Jorge Prince asked if the city could fund its portion of the project any other way and Spiczka confirmed that the city could.

Since Spiczka demonstrated that the city could afford an up to $500,000 pledge, the council unanimously voted to approve the resolution. Each councilor expressed support for the grant and the project, while demonstrating a need for housing in the area.

The HRDC will submit its application before the June 12 deadline. Once the HRDC knows the outcome of the application, it will provide an update. Conversely, the council will determine how it will pay for its portion of the project if the HRDC is awarded the grant.

This was the only item considered during the special council meeting.

The council will next meet for a regular meeting at 6 p.m. on Monday, June 16, at City Hall. All meetings can be viewed on the city website.

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Allocation of opioid settlement dollars determined by the Beltrami County Board

TJ Rhodes — Wed, 04 Jun 2025 21:45:10 GMT

BEMIDJI — A recommendation to distribute opioid settlement funds to five local organizations was approved by the Beltrami County Commissioners on Tuesday.

The opioid settlement is state funding that is distributed around the state to aid local organizations in combating the opioid epidemic through reimbursements.

Local organizations applied by showcasing projects that could utilize the funding, along with a dollar request. Then, the Opiate Steering Committee, comprised of 17 different community members, reviewed the applications before drafting a recommendation that was presented by Public Health Director Amy Bowles.

Beltrami County applicants will receive a total of $70,050. Face it Together will receive $10,000, the Bemidji Fire Department will receive $4,050, Stellher Human Services will receive $21,000, the Nameless Coalition for the Homeless will receive $30,000 — the maximum — and the State of Minnesota Drug Court will receive $5,000.

The commissioners unanimously approved the recommendation as presented on Tuesday after initially delaying action.

The recommendation was first presented during a May 20 county board meeting. District 5 Commissioner John Carlson removed the recommendation from the consent agenda to cast a separate vote.

District 2 Commissioner Joe Gould motioned to approve it and District 4 Commissioner Tim Sumner seconded. Carlson followed with a motion to table, which sparked confusion. County Attorney David Hanson clarified that a motion to table takes precedence over a motion to approve, leading to the 3-2 vote to table.

District 1 Commissioner Craig Gaasvig, District 3 Commissioner Scott Winger and Carlson voted in favor of tabling the motion. Gould and Sumner opposed the motion.

Community leaders who rely on the opioid settlement fund expressed concern over this decision.

Isabella Schaefer, owner of the Recovery Space LLC, will not benefit from this year's settlement. However, she spoke during public comment, pleading with the board not to delay action any longer.

"My business has an operating budget of $0," Schaefer began. "As a person with lived experience, I can appreciate the board wanting to take as much due diligence in the dispersion of our funding. However, people are dying. Any delay in the release of funds prevents our organizations from continuing to provide or begin providing new and emergent services."

Carlson was the first commissioner to speak about the recommendation.

"I just would like to thank the public for their patience for the two week time period that I specifically asked for," Carlson said, "to be able to check the process to make sure that I was satisfied that we were following the Memorandum of Understanding with the state, that all the allocations were done properly so we didn't get any trouble later on."

Carlson spoke in favor of the recommendation, citing positive communication with the Public Health Department and community leaders who rely on the funding.

"I really want to thank Amy Bowles ... for taking the time to go over that with me," Carlson said. "I also want to thank (Face it Together Executive Director) Chris Earl. I had expressed to Chris that I was a little dismayed that maybe we didn't fund 100% of his project, if maybe somebody else got 100%. At the end of the day, Chris said he's grateful to get something.

"I did find that there's some synergy between Face it Together and the Nameless Coalition for the Homeless and The New Day Center, so that was very, very exciting. Whatever grants are going to the Nameless Coalition could maybe, in some way, still help Face it Together."

Gaasvig asked why some organizations that applied a year ago did not apply this year. Bowles explained that organizations have 18 months to spend the funds, meaning some do not need another round of funding yet. She also stated that no organization expressed any issue with the application process.

Carlson motioned to approve the recommendation. Gould seconded and the board unanimously approved the motion.

At a later date, Beltrami County will distribute another round of funding meant to combat the opioid epidemic.

Housing development projects

The board also approved a Beltrami County Housing Trust Fund Cabinet recommendation for two housing development projects.

North Star Neighbors, a community land trust, is a Northwest Minnesota Foundation program designed to develop more affordable housing units in the area. North Star Neighbors submitted both of the approved requests.

The first asked for $300,000 to construct two affordable, single-family homes, beginning this summer. The second request asked for $220,000 to construct eight affordable, single-family homes, starting this year and concluding in 2027.

The second request is less than the first because funding was secured. The Cabinet will fund the remainder of the projects.

The recommendations were approved in a 4-1 vote — Carlson only supported the second request, citing cost concerns, and voted against the motion.

"I'm in favor of the proposal for the eight units," Carlson began, "but I can't be in favor of spending $300,000 on two houses. It just doesn't seem right to me to spend $300,000 on two houses when I think that there's an opportunity for larger developments that we could we could leverage our money (toward). I don't know that the immediacy of having two more houses in one year is going to make that much difference."

Winger later chimed in to say that housing projects are too important to pass up, especially if they are affordable.

And Sumner discussed the importance of supporting commissions that make such recommendations.

"We have a housing need in our community," Sumner said. "I don't withhold funds if there's already a plan in place.

"To me, it seems like if we are going to continue to question folks in these committees that do their work on our behalf, then maybe we should just dissolve all the committees and do all the work that they're doing. I can guarantee you that a lot of these folks who sit on these committees are more of an expert and knowledgeable about these types of things than us. I think that's why it's important that we support the people who do the work and bring their decisions and recommendations to us."

Board action

The board also passed revisions to Solid Waste Ordinance 13, which will take effect on Jan. 1, 2026. The revision will include minor changes to definitions, formatting and terminology.

The board then approved a new mailbox support policy. This policy will follow current practices by the county, including the replacement of private mailboxes that are damaged by county snow plows and the furnishing and installation of swing-away mailbox supports.

The board also approved a project that will replace all non-conforming mailbox supports along county roads. The project is fully funded by a grant, and the county will look for bids in 2026. Public Works Director Bruce Hasbargen believes this project will be complete by September 2026.

The newsletter committee submitted a newsletter policy to officially guide what can be published within the county newsletter, which is mailed to residents and published on the county website. The new policy was approved by the board during the meeting.

The commissioners will next meet at 5 p.m. on Tuesday, June 17, in the County Board Room, preceded by a work session at 3 p.m. All meetings can be viewed on the county's YouTube channel.

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Bemidji City Council, HRDC discuss housing infrastructure grant opportunity

TJ Rhodes — Wed, 28 May 2025 20:47:53 GMT

BEMIDJI — More housing units could be on Bemidji's horizon.

During the Bemidji City Council work session on Tuesday, Sandy Hennum, Community Development Specialist of the Headwaters Regional Development Commission, discussed a grant opportunity that could partially fund a significant Bemidji housing project.

The opportunity comes from the Greater Minnesota Housing Infrastructure grant program, which provides funds for affordable, multi-family, workforce housing projects across the state.

Councilors were handed a preliminary proposal before the work session and provided feedback. Now, the HRDC will finalize a proposal and seek council approval before the June 12 application deadline.

The HRDC plans to request the maximum grant amount of $500,000. Bemidji would be required to match the grant, meaning a proposed project could total $1 million.

Ward 2 Councilor Josh Peterson asked if the city could afford a $500,000 pledge.

City Manager Rich Spiczka explained that the city has a few different options to fund the project, but faces a challenge.

"Municipal governments, there's a heavier lift for us than there's ever been, and I don't think that's going away anytime soon," Spiczka said. "If you want housing or you want projects, the city is going to have to come help. That's just the reality.

"I think (Tax Increment Financing) is a definite player here. Depending on how it looks, it's usually 26 years. It just means that we're deferring collecting tax until utilities are basically paid for. So, it makes it affordable. I think because (the project is) infrastructure, there are enterprise funds that can be used as well. We're not looking straight at the levy. We also have housing dollars ... I think we have a multitude of options."

Currently, exact figures for TIF are not known. Mayor Jorge Prince asked if the HRDC and the city could provide this figure before council approval.

"It would be good to have that number," Prince said, "because if we were just able to fund this fully off TIF, for me, that's an easy decision; that becomes a no-brainer. If we have to pull dollars from housing funds or from utility accounts, then the (return on investment) question starts becoming a little bit more complex."

Prince then asked if the HRDC could afford a lower pledge, if deemed necessary by the council.

Hennum explained that even if the HRDC applies for $500,000, there is no guarantee that it would receive that amount. Thus, if the HRDC receives less than $1 million, whether from a lesser pledge or grant, it would downsize the project's scope as needed to ensure affordability. The project would not cease.

Overall, this opportunity is monumental, according to Hennum. Historically, Northland cities struggled to receive this grant as the majority of the funds did not leave the metro. Now, after successful lobbying efforts, 50% of the funds are set aside for greater Minnesota, giving Bemidji a chance.

"I would say on this grant, the fact that it's isolated to greater Minnesota almost never happens," Spiczka said. "With the climate and the space we have right now, with funding being shut down and frozen, or whatever, when we have a chance to at least attempt to get some (funds), I think we should think hard about that."

All present council members unanimously expressed support for a project after sharing thoughts and concerns — Ward 1 Councilor Gwenia Fiskevold Gould and At-Large Councilor Audrey Thayer were absent.

"I think this is a really good thing," Ward 4 Councilor Emelie Rivera said. "I just want to make sure that anything that we put forth as an application has a realistic representation of what (the city) can do and what is within the guidelines."

Prince later mentioned a housing study that could be published during the summer.

"It'll be interesting once we get our housing study back to see what we're short on," Prince began. "But boy, (this project) could go a long way to meeting those (needs)."

The HRDC will finalize its proposal, which should include all relevant information regarding a proposed project, grant amount, potential timeline and more. The council will review this proposal and cast a vote before the June 12 deadline.

The council will next meet for a regular meeting at 6 p.m. on Monday, June 2, at City Hall. All meetings can be viewed on the city website.

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Young people are more likely to own a home in Minnesota than North Dakota. Why is that?

Peyton Haug — Sat, 24 May 2025 10:17:00 GMT

BISMARCK — When states are ranked, it's not often North Dakota appears next to places like Hawaii, New York or California.

But when it comes to states where young adults are buying homes, national media outlets have reported North Dakota ranks in the bottom 10 — next to states known for being densely populated and having a high cost of living.

The data that ranks states by homeownership rates for adult residents under 35 was compiled by a management company called Evernest that oversees 22,000 properties across the country. The company used data related to income levels, average listing prices and census numbers to come up with the list.

While North Dakota scored poorly in relation to other states, Minnesota topped the list as the only state in the country where homeownership rates for people under age 35 is over 50%.

In North Dakota, 36% of people under 35 own homes, which makes the state dead last among the Midwest states and 40th nationwide.

Explaining housing trends with a single data point is nearly impossible, experts say, but they agree the national reports are probably right: it's becoming increasingly difficult for young North Dakotans to buy homes.

'It's something nobody really has a grip on right now'

David Flynn, an economist who works at the University of North Dakota, said climbing interest rates and home prices seem to be among the many reasons why young people are intimidated out of purchasing a home.

The average interest rate is sitting at 7%, more than double what it was a few years ago.

Americans have experienced high interest rates in the past, but there is a discernibly wider gap between the cost of housing and the average income, especially in North Dakota, a state housing expert said.

“You can afford that much more home if your interest rate's that low," said Brian Dettlaff, the homeownership director at the North Dakota Housing Finance Agency. "Now, interest rates are high, and so are home prices.

“We have this historic climb of housing prices, but salaries have stayed fairly stagnant," he said of North Dakota. “When is it going to plateau?”

According to a 2024 Housing Finance Agency report, the number of North Dakota households earning more than $125,000 per year has risen, but the number of middle-class households has stayed the same, and so has the poverty rate. Half of North Dakota households earn less than $75,000 per year, and a third bring in below $50,000 annually.

As such, the report found homeownership rates have fallen dramatically in the last decade.

Low- and middle-income households experienced the biggest decline, with the number of homeowners dropping by nearly 20% between 2012 and 2022. In the same period, monthly housing costs — like insurance and utilities — rose by nearly 40% on average.

The report didn't specifically tie age to homeownership rates.

Meanwhile, housing prices have surged similarly between North Dakota and Minnesota, according to data from the United States Federal Reserve.

Home prices in ND and MN

The average home price has risen, at times exponentially, over the past decade in North Dakota.

The average home price has risen in Minnesota over the past decade.

Such patterns seem to be making young people “a little more cautious” about putting down roots, Flynn said, emphasizing the impact of living through events like the 2008 recession and the COVID-19 pandemic. But that does not explain why more young people would buy homes in Minnesota compared to neighboring North Dakota.

"It's something nobody really has a grip on right now," he said. "How young people change spending patterns from previous generations, there's always a little bit of a smear about it, like, 'oh, young people are doing things either right or wrong.' But in fact, if it's done with the understanding that you're going to have less money later, and you want to spend it now because you have it now (and) you want to enjoy it — that's hard to argue against. “

The 2024 report estimated, based on change in population by age and the state’s housing inventory, North Dakota would need to add more than 20,300 housing units by 2027 to meet the need — a 6% increase in demand from 2022.

"There’s just not a ton of homes out there that some of these first-time home buyers can buy,” Dettlaff said.

“It’s a really weird paradigm we’re in right now because the state could give us $100 million to go build housing. We could do all these programs throughout the state, but who’s going to build it?” he continued. "There’s not even enough contractors" to build affordable homes in general, let alone starter homes.

What does Minnesota do better?

More affordable housing leads to more people buying homes, both Dettlaff and Flynn emphasized.

There's a stark difference in the housing dollars doled out between the two states.

Though Minnesota's housing budget hasn't been finalized, it's slated to spend hundreds of millions on affordable housing programs within its two-year budget.

On the other hand, the North Dakota Legislature tends to take a more privatized approach, allocating $25 million for similar initiatives for the next biennium. The dollar amount came in at one-third of what the executive branch recommended.

The money is in limbo, however, after Gov. Kelly Armstrong accidentally vetoed it.

State funding aside, North Dakota's culture — its low population, lack of job mobility and geographical isolation — continues to work against its ability to maintain its younger population, according to Flynn.

Although the state's population has climbed in recent years, encompassing a notable increase in young residents, he said, it's hard to say whether they are staying.

It's nearly impossible to quantify, but it's likely Minnesota, especially its metro areas, is retaining more of its young population because its job market is more diversified, it's more populated and has more access to leisure and recreation activities, Flynn added.

Katie Johansen, a licensed real estate agent in North Dakota and Minnesota with Berkshire Hathaway HomeService, said she works with a lot of young buyers and isn’t surprised Minnesota leads the pack for young people becoming homeowners.

“Especially with the Twin Cities, you have a ton of young professionals buying homes. Plus, there’s a lot of people in that area,” said Johansen, who has been in the real estate market in the two states for 12 years.

"Fargo in particular doesn't always follow the trends for North Dakota," she said. "As a metro, we tend to be a lot more urban than the rest of the state."

Johansen was showing Andrea Smith, 26, a home in the Fargo area on Thursday, May 23. Smith, who grew up in Horace and moved to Bismarck to attend the University of Mary, is looking to buy her first home.

Now that she’s graduated and moved back to the area, she said, she felt it was time to buy a home.

Experts agree that finding ways to encourage more people like Smith to buy a home in North Dakota is not an easy task.

“There’s going to need to be a lot of different approaches,” Dettlaff said, calling on the younger generation to voice their concerns to state leaders.

Flynn also highlighted how complex it will be at the state level to make finding affordable housing easier for young people.

"It's not something that a reasonable person should sit there and say 'the solution is this,'" he said.

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Red Lake, Leech Lake and White Earth secure nearly $18 million in grant funding for housing

Pioneer Staff Report — Tue, 20 May 2025 12:33:00 GMT

WASHINGTON — U.S. Department of Housing and Urban Development Secretary Scott Turner recently announced more than $90 million in Indian Housing Block Grant funding for eligible tribal nations to carry out affordable housing activities.

Among the recipients are Leech Lake, Red Lake and White Earth Nations, which received $6.5 million, $6 million and $5.1 million, respectively.

“From day one, HUD has been engaged in alleviating affordable housing challenges facing urban, rural and tribal communities,” Turner said in a release. “HUD has a strong partnership with tribal nations across the Midwest, and I look forward to collaborating directly with tribal leaders in Michigan, Minnesota and Wisconsin to expand housing opportunities and remove burdensome regulatory barriers that impede progress.”

The IHBG program is a formula grant that provides a range of affordable housing activities in tribal communities. Eligible activities include housing development, operation and modernization of existing housing, housing services to eligible families and individuals, crime prevention and safety, and model activities.

A full list of the IHBG award winners can be found on the U.S. Department of Housing and Urban Development website.

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Gov. Tim Walz signs bill supporting service dogs in training

Mary Murphy — Thu, 08 May 2025 17:27:25 GMT

ST. PAUL — Gov. Tim Walz signed a bill Thursday, May 8, expanding support for service dogs in training, marking the first bill-signing ceremony of the legislative session.

Minnesota law already prohibits housing discrimination against individuals with active service dogs. Now, the law will prevent the same for individuals training service dogs who are part of an organization accredited by Assistance Dogs International or the International Guide Dog Federation to train service dogs.

The new law will also prohibit any extra fees for those seeking accommodation with a service dog in training, but permit liability for any damages to the property caused by the dog.

“These are not pets,” Walz said at the signing. “These are not nice-to-have things. These are absolutely critical to the quality of life to the people who need them and the folks who train them.”

Walz was joined by the authors of the bill, Sen. Bonnie Westlin, DFL-Plymouth, and Rep. Cedrick Frazier, DFL-New Hope.

“This is one of those small things that we do in the course of the legislative session that often does not get the attention that it deserves,” Westlin said. “And this bill actually changes lives. This will ensure that individuals who actively train service dogs will have full and equal access to housing.”

Also present was Jeff Johnson, executive director of Can Do Canines, and affected individuals with service dogs, Lydia Roseth, a Hamline University student with service dog Flint, and Jessica Eggert, from the Minnesota Commission of the Deaf, with service dog Jessie.

“I have been able to take on more academically and socially than I could have ever possibly imagined. He not only has changed my life, but he has saved my life,” Roseth said.

A landlord or a board of a homeowners association may require written certification from the organization supervising the training as a condition of granting an accommodation, and may terminate the accommodation upon completion of the training.

The new law takes effect Aug. 1.

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Northwoods Habitat for Humanity to hold Construction Site Safety Trainings

Pioneer Staff Report — Fri, 02 May 2025 23:00:00 GMT

BEMIDJI — Northwoods Habitat for Humanity is offering two construction site safety trainings for those interested in volunteering on a Habitat build site this summer.

Sessions will be held at noon on Tuesday, May 13, and 5:30 p.m. on Thursday, May 15, at the Bemidji Chamber Conference Room at the LaunchPad Building, 102 First St. W.

Only one session is required, and each will last about an hour.

Construction plans are underway for two partner families, and a third family is nearing the sweat equity milestone required to begin planning their home, a release said.

According to the release, each build requires between 2,000 and 3,000 volunteer hours to complete, including sweat equity contributed by the families themselves.

To ensure a safe work environment, all volunteers are required to complete a safety training session. These trainings also offer a chance to connect with fellow volunteers and Habitat staff and learn more about the build process.

No prior construction experience is necessary, just a willingness to serve.

Pre-registration is required by May 9. To sign up, contact Brandon Mustful, Community Engagement Coordinator, at (218) 751-4649 or brandon.mustful@northwoodshabitat.org.

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Minnesota House passes $75M housing increase amid budget squeeze, growing need

Mary Murphy — Wed, 30 Apr 2025 19:53:17 GMT

ST. PAUL — The Minnesota House passed its housing omnibus budget bill in a 106-25 vote on Tuesday, April 29, increasing spending by $75 million with a total appropriation of $319 million.

The bill, HF2445, makes a $75 million one-time investment for 2026-27 — a drop-off from the last budget-passing session in 2023, when the Minnesota Legislature made a $1.3 billion one-time investment in housing.

Co-Chair of the Housing Finance and Policy Committee Rep. Michael Howard, DFL-Richfield, said before the floor vote Tuesday that he’s proud of what the House was able to come up with under a tight budget and a tied House, but that it's not “nearly enough.”

“This last session was the first year, really ever, we made really significant investments at that $1 billion level,” Howard said. “In the context of our current budget, you know, having a $75 million target … I mean, there’s a lot of really good, tangible things that we can do at that $75 million level, but it is not nearly enough compared with the need across the state.”

This session’s February budget forecast showed state lawmakers would be working with a $456 million budget surplus and a looming $6 billion deficit to consider. Lawmakers are looking to craft a roughly $66 billion budget. The 2023 budget, when Minnesota was working with an $18 billion surplus, marked the state’s largest in history, at $72 billion — a jump from the previous $52 billion budget.

The House’s budget target for a $75 million increase is higher than the Senate’s proposed $3 million increase in SF2298. The House’s total housing appropriations from the general fund — including debt service — come to $319 million, compared to the Senate’s total appropriations of $257 million.

Among the $319 million investments are: $100 million in housing infrastructure bonds; $31 million for the Family Homeless Prevention and Assistance Program, aiding roughly 8,500 renters and homeowners, according to Anna Mavity with Minnesota Housing Partnership; and $10 million for the Greater Minnesota Workforce Development Program.

The House also passed its omnibus Housing policy bill Wednesday, HF2309, in a 109-22 vote. Rep. Jim Nash, R-Waconia, said during the floor debate Tuesday for the housing finance bill that the housing bills needed to go further.

Nash said Minnesota’s “main barrier” is the need for more “regulatory reforms” like aesthetic mandates and density reform. Earlier this session, Nash was part of a bipartisan coalition pushing the “Yes to Homes” bill package — a slew of zoning reforms to allow for more multi-family housing, among other housing policy reforms.

“A lot of the regulatory reform is being conducted in blue states and red states alike, quite successfully,” Nash said. “Something has to get done, and funding isn’t the only way out of it.”

Howard said that in one of the funding allocations — $20 million for Greater Minnesota Housing Infrastructure Grants — there’s language in Section 3 of the bill that is meant to “incentivize” cities that want the grants to build multi-family homes like townhomes and duplexes.

“We’re still pushing this year to move the needle as far as we can,” Howard said before the floor vote Tuesday. “Cities and their city groups and their lobbyist organizations have been fundamentally opposed to anything that usurps their sort of local control.”

Minnesota has a shortage of 101,209 shortage of rental homes for low-income renters, and $56,728 is the annual household income needed to afford a two-bedroom rental home, according to the National Low Income Housing Coalition estimates.

In 2018, the Minnesota Task Force on Housing estimated that Minnesota would require an additional 300,000 homes by 2030 to meet statewide demand.

“Every year we don’t take bold action on housing is another year that we … dig a deeper hole,” Howard said before the floor vote Tuesday.

The House has the largest housing spending increase target, while Gov. Tim Walz has proposed a $1.4 million reduction in housing spending. The Senate, House and Walz will meet in the coming weeks in conference committees to hash out their differences in spending targets before the session wraps on May 19.

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Lawmakers discuss state oversight of rental housing following MPR News investigation

Ellie Roth / MPR News — Tue, 22 Apr 2025 18:15:02 GMT

ST. PAUL — Some lawmakers and lobbyists in Minnesota say state intervention is needed after an MPR News investigation found inspection processes and local political pressures leave low-income renters vulnerable in Greater Minnesota.

According to the U.S. Commission on Civil Rights, Minnesota needs more than 100,000 units of housing to meet current demand. MPR News found some cities have become lenient with landlords whose buildings fail inspections because of a shortage of alternative housing options. Other cities don’t have rental inspections at all.

“There should be some sort of statewide oversight of licensing of rental properties,” said Sen. Lindsey Port, DFL-Burnsville, chair of the Housing and Homelessness Prevention Committee. She said the state could help with rental inspections, enforcement and create a database of landlords and rental housing.

“It would likely require funding from the state because small municipalities across Minnesota can’t necessarily just take that on,” she said.

Legal aid attorneys from around the state say many low-income rental buildings have serious problems that go unrepaired for long periods of time. And because of severe housing shortages in many areas of the state, city leaders are hesitant to hold these landlords accountable.

The investigation highlighted what happened at an affordable housing building in Bemidji that was condemned in 2023 because of structural problems that the city’s inspection system was not designed to catch.

“Losing units at this point is catastrophic in Minnesota,” Port said. “Affordable units are not built without state funding. So that is in some ways a state asset, and to know that we’re potentially losing them to disrepair feels like a real betrayal of people’s tax dollars.”

Advocates for both developers and city government warned that state regulation could be costly.

“Cities, even if they have rental housing in their communities, just do not have the resources or the property tax base to generate enough revenue to run programs” like Port proposes, said Daniel Lightfoot, a lobbyist for the League of Minnesota Cities.

“What we’ve been thinking about in terms of our policies is, how could the state continue to be partners with communities to help with the provision of those resources, especially for those smaller communities that may not have ability to support that program on their own?” he said.

The Minnesota Multi Housing Association advocates on behalf of developers and landlords.

“I don’t think that there’s an inspection problem here, I do think it points to a supply problem,” said Cecil Smith, the association’s president and CEO. “We really believe competition is really good because housing providers in a competitive marketplace have to provide a great product.”

Earlier this session, the Minnesota Multi Housing Association testified in support of a bipartisan package of bills designed to loosen zoning restrictions statewide, known as “Yes to Home” legislation.

Rep. Mike Howard, DFL-Richfield, chair of the House Housing and Finance Policy Committee, supports that effort.

He said a state and local partnership could help cities hold landlords accountable, but “it is frustrating to me that while the cities across the state are dropping the ball, they are fighting tooth and nail at the Legislature to kill legislation that would address the problem, to help us build more housing,” referencing the Yes to Home bills.

Those bills would make it easier to construct multi-family homes and would allow single-family homes to be built on smaller lots. Supporters say this would encourage construction of more affordable housing. But the zoning bills received pushback from suburban lawmakers, local governments and the League of Minnesota Cities, citing a preference for local control.

Despite pushback, Rep. Spencer Igo, R-Wabana Township, said he hasn’t given up on zoning reform. In fact, he said MPR News’ investigation into the dynamic between cities and landlords has strengthened his resolve.

“Minnesota is in a crisis and the way we fix that is by diversifying our housing stock and making it affordable again,” said Igo, the Republican chair of the House Housing Finance and Policy Committee and the co-author of a zoning reform bill. “The way to do that is to unleash our greater Minnesota communities, our metro communities, our city communities to be able to build the housing stock that people want. And by removing barriers in land use and zoning, that’s how we open the door to make that happen.”

In the coming months, lawmakers say they will consider both zoning reform and statewide oversight of rental housing to help protect low-income renters in Greater Minnesota.

MPR News senior politics reporter Dana Ferguson contributed to this report.

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This story was originally published on MPRNews.org.

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DFL bill calls for stronger manufactured home park regulations

Jack O'Connor — Sat, 05 Apr 2025 19:00:00 GMT

ST. PAUL — A DFL bill to help residents of Minnesota manufactured home parks by limiting rent increases, preventing charges for utility repair costs and giving residents the chance to purchase park land was laid over in committee Tuesday, April 1.

Manufactured homes — referred to as mobile homes, if built prior to 1976 — are an alternative housing option where people own the transportable residence and pay lot rent for land where the home is parked. Residents of manufactured home parks told lawmakers at recent Minnesota Legislature committee hearings that they are being taken advantage of by investment firms who own and rent out the land that manufactured homes sit on.

“It seems like these companies look at us like money machines instead of real people trying to make a life,” Andreas Hernandez, who lives in a manufactured park home with his mother and sister, said on March 20 in the Senate’s Housing and Homeless Prevention Committee.

Hernandez said the uncertainty of knowing if a rent increase is coming makes his family afraid that his manufactured home will no longer be financially viable.

Minnesota was home to around 80,000 manufactured homes in 2019, with about half of those homes residing in parks, according to the Minnesota Department of Commerce.

Rep. Matt Norris, DFL-Blaine, said manufactured homes are “under attack” in the state.

“One of the biggest concerns is these private equity firms that are moving in and buying up parks here in Minnesota and across the country and increasing the lot rent by incredibly high, unreasonable amounts, and making it difficult for these people, many of whom are on fixed incomes, either senior citizens or folks with disabilities to stay in their homes,” Norris said.

Minnesota law requires rent increases in parks to be reasonable, but the law does not define what reasonable means. Norris's bill, HF2381, and its Senate version, SF2691, would change that — limiting park owners to one rent increase a year and largely prohibiting rent increases greater than 3% from the previous year. According to the bill, rent increases could exceed 3% from the year before if a park owner proves that the increase is necessary for resident health and safety, or if a resident-owned coop approves the rate.

Resident of Cimarron mobile home park Brey Mafi, who is also president of the Cimarron Residents’ Association, said tighter regulations are needed.

"Residents are faced with fear tactics and hostility from park management," Mafi said. "Amenities and services are closing and [being] reduced year after year. "

Mafi said annual evictions in the park have increased in frequency and that lot rent has gone up roughly 35% in five years, now costing $1,019 a month.

Several park owners spoke out against the bill in committee hearings. Minnesota Multi Housing Association President Cecil Smith said the rent control policy would lead to less housing construction in Minnesota.

“The unintended consequences outweigh the benefits,” Smith said in a March 20 committee hearing. “While this proposal is narrowly focused on a specific type of housing, it will eventually mean broader avoidance and disinvestment in Minnesota’s housing market.”

Norris, who is the chief author of HF2381, said the rent increase limits in the bill are not comparable to rent control for apartments. Renters unhappy with the price of their apartment can move relatively easily, he said, but moving a manufactured home can be pricey. The average cost of relocating a manufactured home is $9,000, according to an October 2024 article by Forbes.

“If there's ever a time when it's appropriate for the government to step in and regulate a market, it's when you have a market like this that's so much more inefficient than the apartment market,” Norris said.

Norris said he also wants to give manufactured homeowners a better chance at owning the land under their home. If passed, park owners would be required to give residents a 60-day notice of intent to sell the park and to consider any offers from residents to buy the land before it’s sold to an outside company.

When parks are owned by residents instead of private equity firms, it leads to better outcomes and prevents some “predatory behavior,” Norris added.

Park Plaza Cooperative President Natividad Seefeld, who oversees a park owned by residents, mirrored Norris’s sentiments and said her community has improved the park without having to excessively raise rent costs.

“We only have 81 families. We don’t raise the rent every time a tree falls. We don’t raise the rent every time taxes go up,” Seefeld said in Tuesday’s committee. “If we can do it, we know others can do it.”

Park owners testifying to the committee expressed frustration over the mandatory sale notification section of HF2381. Owner of Mike Ives Realty Michelle Carlson, who operates six parks in the state, said the current sale notification requirements, approved in 2023, are working and the proposed changes give her less freedom to oversee her parks.

“It’s a taking of property rights without just compensation. The current notification of sale language is working. Let’s not end it,” Carlson said in Tuesday’s committee meeting.

The bill also caps late fees at 8% of rent, mandates electronic methods for rent payment, prohibits charging residents for utility repairs and requires park owners to give residents an itemized list of fees.

The Senate version of the bill passed out of its committee on March 20 and is awaiting a hearing in the Commerce and Consumer Protection Committee. The House version was laid over for possible inclusion in a larger bill Tuesday in the Housing Finance and Policy Committee.

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