The Minneapolis City Council Housing Policy & Development Committee voted to direct city staff to contract with one or more consultants (vendors) to undertake an economic impact analysis regarding rent stabilization as a component of housing policy in Minneapolis.
HPD#4
By Ellison and Bender
Directing the City Coordinator’s Office, with assistance from Community Planning and Economic Development and Regulatory Services to contract with one or more consultants to undertake an economic impact analysis in order to evaluate rent stabilization as a component of housing policy in Minneapolis. The consulting contract should be in place no later than March 15, 2020. Staff should bring an update on progress to the Housing Policy and Development committee by November 13, 2019
The contract deliverables generally should include the following:
Establish a baseline and identify key factors for assessing annual rent increase caps as a rent stabilization policy in Minneapolis, which may include:
- Distribution of rent burden, rent cost trends, rental vacancy and turnover
- Composition of housing stock including age, ownership and geographic distribution of rental property
Analyze these key factors within the Minneapolis context to understand potential impacts on renters and building owners. Key factors could include:
- Financial analysis of return on investment for rental property owners
- Economic impacts to overall local economy and housing supply in the short and long term associated with capping annual rent increases
- Housing stabilization outcomes for tenants
Provide potential models for consideration of rent stabilization policies that include rent increase caps and the economic impact of those models.
In describing the need to further study the issue of ‘Rent Stabilization,’ including capping rents, Council President Bender stated, “It’s time to further study this issue and ask the question should we even before asking the question could we,” a reference to a MN state law prohibiting rent control.
The vote of the Housing Policy Committee was 6-1. Councilmembers Gordon, Ellison, Reich, Bender, and Schroeder voted in the affirmative. Councilmember Goodman voted nay.
In the public statement that was released on social media and signed by Council Lisa President Bender and Councilmember Jeremiah Ellison they offered renter displacement, renter cost burdens, rental vacancy rates and the need to maintain an inclusive and welcoming city as the reasons to further study rent stabilization or rent control.
Next step: City staff to return to Minneapolis Housing Policy and Development Committee on November 13, 2019 with a report about an attempt to contract with a vendor to provide policy advice regarding rent stabilization/rent control.