Proposed changes

We are seeking public comment to make changes to the City Model that is part of the Perpetually Affordable Housing program.

What to know

Comments are due by April 1.

See timeline for comments and City meetings about changes

Read the draft documents

About the City’s Model in the Perpetually Affordable Housing Program

The PAH program is a model for maintaining long-term affordable ownership of housing. It was created in collaboration with community members through a housing study completed with Grounded Solutions Network. Homebuyers who purchase units enrolled in the PAH program will agree to a shared-equity formula that restricts the resale price. There are two models under PAH: 1) the City model, which limits the annual value appreciation to 2%, and the City of Lakes land trust model (CLCLT Model), which determines the resale price based on 25% of the market change in value. We are seeking public comment regarding changes to the 1^st model mentioned, the City Model.

Program goals:

• Eliminate racial disparities in homeownership
• Maintain long-term affordability
• Provide sustainable and accessible homeownership

See Minneapolis Homes programs

Change appreciation Rate for City Model

Increasing the annual increase in the City PAH model home from currently 2% to 2.5%.

Capital Improvement Policy

Modify the PAH program that adds a capital improvement policy for the City Model. This policy would provide an additional credit to a home owned in the City PAH model which would provide additional credit for specific improvements done to a home that is enrolled in the City Model within the PAH program.