Some additional
research and statistics show the existence of similar trends relating
to the improvement of Minneapolis housing stock and increased
stability in neighborhoods, as was indicated by our analysis. While
no direct correlation can be made, it is still worthwhile to note the
following:
The median sale prices of Minneapolis homes rose 55% from 1993 to
2000.
17
There is no directly traceable relationship between this increase
and the loan/grant activity, except that this price increase occurred
at the same time that the loan/grant programs were in effect.
Teamworks made the following conclusion in its evaluation of Phase I
NRP impacts, “Between 1990 and 1999, NRP expenditures made a
significant difference in the size of increase in homeownership rates
in Minneapolis neighborhoods. All neighborhoods together gained more
homeowners than they would have without NRP. Neighborhoods with more
NRP spending experienced greater increased in homeownership rates.”
18
Their conclusion relates to the impact of all NRP spending, not just
NRP loan/grant program expenditures, which is 27.4% of all NRP
spending.
As noted in Conclusion I of this report, overall NRP expenditures
resulted in an estimated 2,674 additional permits citywide from 1992
to 1997.
19
While no conclusive evidence is currently available to determine
trends, other research and statistics suggest potential outcomes to
monitor. Some data raises questions about the lack of loan/grant
program benefits to low income homeowners and to properties in below
average condition:
It was noted in the Teamworks' evaluation
20
that in a majority of the 16 neighborhoods where The Center for
Energy and the Environment (CEE) administered the loan/grant program,
the recipients had incomes greater than the neighborhood's
median income. As indicated, however, lack of data about homeowners'
income made comparison with recipients' income difficult.
Assessors Office statistics about below average housing units raise
questions about the impacts (or lack thereof) of NRP loan/grant
programs on these units. The percentage of housing units rated as
being in below average condition from 1997 to 1999 increased from
20.2 to 21.5% of the total housing stock.
21
This represents a 6.5% increase in below average housing units at a
time when housing values were soaring and NRP housing investments
were at high levels. Figures also show below average housing
increasing from 10.1% to 17.5% of all housing units from 1993 to
1996. The Assessors Office advises caution in making conclusions
about trends prior to 1997 due to the possibility of using outdated
information. The automated valuation system that was initiated in
1997 changed the frequency of assessing these housing condition
ratings. As future year statistics about below average housing
become available, conditions can be monitored to evaluate if NRP
housing funds are having an impact on these units.
Source: Minneapolis State of the City Reports, 1996 and 2000
NRP Evaluation Report Phase One: 1990-1999 by Teamworks, page 25
Source: NRP Evaluation Report Phase One: 1990-1999 by Teamworks, page 25
Source: NRP Evaluation Report Phase One: 1990-1999 by Teamworks, pages 75-77
Source: Minneapolis City Assessor's Office
Housing Loan Survey Table of Contents
