HOME  E-DEMOCRACY 98  E-DEBATE WEB MN-FORUM

Hubert H. Humphrey      Response 13

Question 13: What is the state's role in promoting affordable housing? Share a specific proposal in this area.

Of all the issues facing Minnesota's communities, affordable housing
is one of the most difficult and immediate. Estimates say that over
50,000 Minnesota working families earning less than $30,000 spend more
than half their incomes on housing, and much of that is substandard.
While government cannot and should not do everything, it must do the
essential things. The lack of affordable housing is not an issue just
for 'poor people.' Employers are finding that they cannot expand their
operations because of a shortage of workers, driven in part by a lack
of housing affordable by middle income working families. Affordable
housing is truly a crisis issue for the state.

Resolving this housing crisis requires a comprehensive approach
involving governments at all levels, private sector financiers and
developers, non-profits and foundations, and community volunteers.
Under the Humphrey/Moe Administration's balanced budget plan, we will
invest $120 million of the budget surplus in an affordable housing
fund which, with public/private partnerships, can be leveraged to
build about $1.2 billion worth of affordable housing statewide and
help meet the many unmet needs of our citizens.

When leveraged with federal, local and private dollars, and when
supplemented by existing Housing Finance Agency programs, the total
available will be about $1.2 billion. These resources will construct
up to 7,000 new units and rehabilitate another 13,000 existing units.
The total of 20,000 housing units is a significant number. However,
estimates indicate that the current need for annual new construction
and rehabilitation is about 15,000 total units. Thus, this initiative
is a good start, but resources must be found to continue a significant
state involvement on into the future, and the Humphrey/Moe
Administration is committed to do that.