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Bipartisan group of Minnesota lawmakers announces affordable housing package

A look inside the bipartisan effort to fix the affordable housing crisis in Minnesota
A look inside the bipartisan effort to fix the affordable housing crisis in Minnesota 01:51

For many Minnesota families, housing costs eat up more of their budget than anything else. A bipartisan group of state lawmakers say they have a blueprint to fix that. 

On Wednesday, the coalition — which includes conservatives and progressives from the Twin Cities metro and Greater Minnesota — announced a package of bills to tackle what they call a crisis. The state is more than 114,000 affordable homes short of the need, according to the Minnesota Housing Partnership. 

Half of all renters are considered "cost-burdened," meaning they spend more than 30% of their monthly income on rent, which represents more people than at any other time in the last decade, the group's latest report said. 

"We hear it all the time: Housing costs too damn much," said Rep. Mike Howard, DFL-Richfield. 

The bills have yet to be published, but the legislators said the proposals will cut down on red tape in order to build more starter home options — like townhomes and duplexes — and ensure they're approved by cities in a timely manner by streamlining that process.

Another plan would require local governments to allow more options in commercial areas. Notably, Minneapolis recently loosened its rules so vacant office space could be converted into apartments. 

Others focus on lifting parking directives and removing aesthetic requirements — the mandated use of premium products as the minimum construction standard — that supporters say are barriers to development. 

"As I have said in the past, housing is a North Star issue. Every person needs to find their way home — like my kid in the Navy always told me, I know I can go home to our North Star in Waconia," said Rep. Jim Nash, R-Waconia. "There are so many people that don't have that opportunity right now, so Republicans and Democrats and progressives and liberals are all saying, 'Let's fix this.'"

Last year, legislation aimed at the same goal failed to get enough support to pass. This group says these bills are different and answer concerns from cities. The proposed changes do not force development where core government services cannot support that expansion, for example. 

"That's one thing that we heard loud and clear from cities is that we want to have more choice and to apply these reforms in the way that makes sense for our communities. And these bills reflect that," Howard said. 

Minnesotans need to make nearly $100,000 a year to afford a median-priced home, the Minnesota Housing Partnership detailed in its report. Meanwhile wage growth has not kept pace with the increase in rent and the price of a home.

The proposals are only policy changes, meaning they don't impact the state budget, which will face some constraints this year as lawmakers try to spend wisely to avoid a $5 billion deficit in future years.

The latest economic forecast data — about the state's budget outlook — comes out on Thursday. 

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