Recently, GOPC partnered with the Lincoln Institute of Land Policy to report on equitable development interventions that can be used to improve equity outcomes within the context of weak real estate markets found in legacy cities within the United States. The equitable development strategies we profiled attempt to make safe, secure, and affordable housing attainable for residents of color and low-income residents through increased production, maximizing benefits associated with affordable housing, or capitalizing on market opportunities.

As part of that report, GOPC identified examples of equitable development not only in Ohio, but around the United States. Below is one of the case studies identified in the report. This example is from Minneapolis, Minnesota.

Organizations working in and around the City of Minneapolis have launched several initiatives to acquire, restore, and maintain Naturally Occurring Affordable Housing (NOAH), and while these programs often work together, each can be viewed separately for replication. These programs preserve affordability for residents and, by focusing acquisition efforts on opportunity neighborhoods, help preserve mixed-income neighborhoods.

NOAH - older, unsubsidized rental units - form the most common type of affordable housing in the country. Because it is so plentiful in most cities, especially legacy cities, NOAH is an integral segment of a stable and diverse housing stock; however, it is also at risk due to rising property values or poor maintenance. In Minneapolis, more than half of low-income renter households live in unsubsidized housing, putting residents at risk of increased housing cost burden and displacement, reinforcing the need for preservation strategies that maintain high-quality, socioeconomically diverse neighborhoods.

To preserve NOAH in high-opportunity and improving neighborhoods, the Greater Minnesota Housing Fund (GMHF), a CDFI, launched the NOAH Impact Fund in 2017. The fund specifically targets acquisition of properties serving low- and moderate-income individuals that are deemed at risk of conversion to higher rents due to their location in a neighborhood with increasing property values. Under the program, the Fund provides 90 percent of the funds needed for acquisition of Class B and Class C rental housing.

In addition to the GMHF NOAH Impact Fund, the City of Minneapolis launched its own NOAH Preservation Strategy in 2017, which includes three programs to aid in the acquisition and preservation of NOAH properties:

• Two acquisition loan funds for partners interested in maintaining strategic ownership of properties (NOAH Preservation Fund and the Small & Medium Multifamily Loan Fund).

• One property tax reduction program for private owners of NOAH who are willing to make long term affordability commitments (the 4d Affordable Housing Incentive Program). This policy is discussed in a later section, with more information on page 18.

One of the NOAH Preservation Strategies—the Small & Medium Multifamily Loan Program (SMMF)—is designed as a partnership between the Land Bank Twin Cities, Twin Cities LISC, and the City. Much like the NOAH Impact Fund, the SMMF is a short-term acquisition fund to secure community control over Class B and C multifamily buildings that offer existing affordable rents. The City and LISC act as financing partners, offering the landbank zero percent interest loans of up to $50,000 per unit for the acquisition, rehab, and operation of a property, provided the landbank commit to finding buyers that will keep at least 20 percent of units affordable to households making at or below 60 percent of area median income.

Acquisition funding from the City is available for use citywide, while the NOAH Impact Fund is specifically deployed in high-opportunity areas regionally, ensuring that affordable housing is available within reach of public transportation, employment opportunities, and high-performing schools. Between the city fund and regional fund, tens of millions of dollars have been invested in NOAH, preserving the affordability of thousands of units. These programs can compete with speculators and national investors through available lower-cost capital and professional capacity that can close deals within 60 days.