The economy and housing market in Minneapolis/St. Paul region has largely recovered from the recent recession. However, for many people, even a full-time job does not guarantee access to a home they can afford. Housing sale prices increased 7 percent from 2014 to 2015, and rental prices in some neighborhoods are not affordable to many people in the local workforce. Ensuring that there is a full range of housing choices with access to quality jobs and transportation options is critically important to regional economic competitiveness. In a recent survey conducted by Greater MSP, young transplants to the region were asked what they looked for in choosing a community to live in overwhelmingly the No. 1 attribute was the availability and affordability of housing.

One strategy to meet this goal is to work with local developers to reserve a portion of their new units for low- or moderate-income residents. In some cases, the affordable housing set aside can be mandatory, and in others, it is part of a voluntary program that is supported by incentives, such as density bonuses or tax increment financing. While this strategy has worked well in many cities throughout the country, it is a relatively new but quickly expanding concept in the Minneapolis/St. Paul (MSP) region.

What is Mixed Income Housing?

Mixed income housing refers to developments that are primarily market rate but have a modest component of affordable housing. Often, the development is 80 or 90 percent market rate units, with the remainder of the homes reserved for low- or moderate-income residents.