This report was
compiled to analyze the impacts of Minneapolis Neighborhood
Revitalization Program (NRP) funds which provided loans and grants to
homeowners for home improvements. This was the largest single use of
Phase 1 NRP funds.
Over $28 million
of the $102 million (27.4%) spent on neighborhood NRP plan
allocations through September 2000 was spent on housing loan and
grant programs. While this is not the total of NRP funds dedicated
to housing, it is the major component of NRP housing expenditures.
Of the 64
neighborhoods contracting with NRP, 57 had some type of loan or grant
program. While the individual loans and grants were small (averaging
5,010 NRP dollars per property
1),
the impacts go far beyond the actual improvements made to the
estimated 6,400
2
recipient properties.
Each NRP dollar
was matched by $1.20 of additional investment
3
by loan/grant recipients resulting in over $61 million being spent on
home improvements. There is strong evidence that these home
improvement programs gave non-recipients incentives to make their own
home improvements because of the trend set by NRP loan/grant
recipients.
An extensive
random sampling of loan and grant recipients was surveyed to
determine how receiving NRP loan/grant funds affected their
investments in, and feelings about, their home, neighborhood, and
city. Their survey responses were compared, when possible, to
responses by non-recipient Minneapolis residents.
500 recipients,
7.8% of the total loan and grant recipient pool, were randomly
selected to participate in the survey. Their perceptions, together
with other relevant data, paint a very positive picture of how NRP
home improvement funds have created a better future for Minneapolis
neighborhoods.
The survey
results support the following conclusions:
- NRP loan and
grant home improvement programs stimulated significant investment in
Minneapolis residential properties.
- NRP loan and grant home improvement programs helped foster stability in
neighborhoods.
- NRP loan and grant home improvement programs improved the appearance and livability of Minneapolis
neighborhoods.
- NRP loan and grant recipients were more involved in their neighborhood and felt that their neighborhood was a high priority with the City
government.
- Grants made greater positive impacts on recipients' willingness to invest and their feelings about their neighborhood than did loans.
Based on information available about 90% of the total loans and grants.
Calculated, based on information about 90% of the total recipients.
Based on information about 30% of the recipients - from vendors who recorded this information.
Housing Loan Survey Table of Contents
