Living Cities:The National Community Development Initiative

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Twin City Facts

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Turning Neighborhoods Around

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Minneapolis-St.Paul

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Current Challenges

Growth and economic prosperity have made the Twin Cities a generally healthy urban area; by the end of the 1990s, the standard of living in Minneapolis had risen considerably. But numbers can be deceiving. Many studies show that the residents who have prospered over the past decade have consistently been those for whom affordable housing is not likely to be an issue; and while unemployment figures remain low, many jobs do not pay enough to enable people to buy or rent a home. This is especially visible along racial lines; Minneapolis-St. Paul is one of the country’s most racially segregated metropolitan areas, and its urban poor continue to be disproportionately black and Latino.

Furthermore, the housing situation in the Twin Cities is still considered to be in crisis. Vacancy rates, once a fraction of those of other U.S. cities, have risen over the past few years, with prices nevertheless remaining high. The average cost of rentals went up by 34 percent between 1990 and 2000; meanwhile, the average renter’s income rose by only 9 percent. For families, the numbers are worse. In November 2003, households at or below 30 percent of the median income level could afford fewer than 1 percent of available two-bedrooms.

The good news is that LISC and local CDCs are poised to offer solutions. They are working to develop and implement innovative financial tools including a new land acquisition fund and a widened predevelopment loan pool. They are also raising funds to provide nonprofit developers with $1.5 million in working capital.

MINNEAPOLIS-ST PAUL

Turning Neighborhoods Around

The overall quality of life in Minneapolis and St. Paul has remained high since the 1990s:

The 2000 Census showed that median household income went up by 9 percent from 1990 to 2000, more than double the national average.
The unemployment rate was 4.7 percent in 2002, well below the national average.
Crime rates remained low.

Ironically, the economic health of Minneapolis and St. Paul has been both a blessing and a curse when it comes to affordable housing. The Twin Cities now suffer from a shortage of affordable housing coupled with a rising population and outward sprawl. LISC and Twin Cities CDCs have made progress in providing more affordable housing, but much remains to be done. Most recently, LISC has teamed up with a pair of non-profit developers—one in each city—to work towards the goal of financing 2,000 new housing units in the next three years. LISC has also helped foster relationships among 11 different CDCs by providing financial incentives for them to pool resources.

Building Partnerships: the Franklin-Portland Gateway

One promising collaboration is between Hope Community and the Central Community Housing Trust (CCHT), two metro area CDCs. Together they have launched the Franklin-Portland Gateway Development, a project that includes the construction of 269 mixed income housing units—from studios to three-bedrooms—and almost 30,000 square feet of commercial space , at the intersection of Franklin and Portland Avenues in Minneapolis’s historically troubled Ventura Village. In March 2004, Hope Community and CCHT celebrated the opening of the Children’s Village Center , with 30 housing units, a community center, and new office space.

Pilot Cities Initiative: Payne-Lake Community Partners

The influx of new immigrants has made the Twin Cities much more ethnically diverse—the 1990s saw a 127 percent increase in Minneapolis’s foreign-born population, according to the 2000 U.S. Census. Many of these new immigrants are relatively poor, and providing them with economic opportunity is a pressing need. LISC and the McKnight Foundation have selected two neighborhoods—Payne Avenue in St. Paul and Lake Street in Minneapolis—to be included in Living Cities’ Pilot Cities initiative, with a focus on spurring economic growth while integrating immigrants into the community. The main goal is to revitalize the neighborhood business districts while linking education and entrepreneurship, in order to ensure that immigrant communities are part of the economic renewal of the city centers. For more about this project and the Pilot Cities Initiative [link], visit the PCI page.

Twin City Facts

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Current Challenges

MINNEAPOLIS-ST PAUL

Turning Neighborhoods Around

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