Housing feels virus fallout

Fallout from the coronavirus pandemic is extending to Minnesota’s housing sector, as affordable housing advocates seek emergency rental assistance for low-income workers and a homebuilders’ group postpones the state’s biggest residential construction marketing event.

Other community groups are pressuring elected officials in Minnesota to provide everything from assistance to small businesses and emergency shelter to putting a freeze on evictions, foreclosures and utility shutoffs.

On the low-income housing front, the Minnesota Housing Partnership and other housing groups want the state to provide $100 million in emergency COVID-19 funds to support low-wage workers at risk of homelessness amid the public health crisis.

The requested funding works out to $400 per month in housing support for 250,000 families, which tallies with the estimated number of minimum wage workers in Minnesota, according to the partnership.

Anne Mavity, executive director of the Minnesota Housing Partnership, said the money would be a lifeline for low-wage workers losing out on paydays as the pandemic hammers the retail sector and the rest of the economy.

“We know what we are facing will have a much wider impact beyond just minimum-wage workers. But we also know that minimum-wage workers are the ones really on the front lines and most likely to be one paycheck away from being unable to pay their rent, pay their mortgage, pay for food,” Mavity said in an interview.

At the same time, the emergency funding would offer continued rental income for property owners and help “prop up the system that provides this housing,” Mavity said.

The $100 million is above and beyond a $500 million request for housing infrastructure bonds and general obligation bonds to support construction, acquisition and rehabilitation of housing for low-income workers.

On the other end of the housing spectrum, Housing First Minnesota said this week that it’s “pausing” its popular Spring Parade of Homes event through at least April 2, and is canceling its 2020 Spring Remodelers Showcase, which was scheduled for April 3-5.

The Spring Parade of Homes showcases new homes for sale throughout the metro area. This year’s event included 434 model homes.

“We respect Minnesota Gov. Tim Walz’s leadership and decision to further enhance community mitigation to stop people from gathering in large groups and potentially spreading the disease,” Housing First Minnesota said in a statement. “Complying with Gov. Walz’s order is the right thing to do for the state, for our hosts, tour-goers and homeowners.”

David Siegel, executive director of Housing First Minnesota, said the tour of remodeled homes was canceled because it involved bringing people from the community into occupied dwellings, and it “felt like we couldn’t safely do that.”

Hitting the pause button on the Parade of Homes was a difficult decision, he said. The Spring Parade of Homes started on March 7 and the first two weeks were “the strongest in a decade,” Siegel said.

Housing First Minnesota will reassess the event’s status at the end of the month, Siegel said. For now, consumers can take a virtual tour of homes via the Parade of Homes’ website, which is still up and running.

Some builders, such as TJB Homes in Blaine, are taking an “appointment only” approach to showing model homes.

“At this time, our office is still open. We are sanitizing daily to ensure safety for all. We will still hold meetings at our office unless you would feel more comfortable talking over the phone or email, which is completely understandable,” TJB Homes said on its website.

But homebuilder concerns about the pandemic go beyond the showing of model homes.

Builders are worried about getting their licenses renewed and inspections, and some cities are canceling or postponing Planning Commission and City Council meetings, which could delay approvals for new subdivisions.

Delays in the entitlement process could push the start of construction into next year, which would put that much more pressure on a market that desperately needs more housing stock, Siegel said.

Simply put, builders are worried that the pandemic will slow momentum for homebuilding just at a time when production is picking up. Through February, the 13-county area has issued permits for 846 new single-family houses, up 10% from last year, according to the Keystone Report.

“We felt like we were getting a little lift under our wings. This one hits hard,” Siegel said.

James Honerman, spokesman for the Minnesota Department of Labor and Industry, said in an email that residential building contractors are able to renew their licenses as usual.

To date, 2,348 or 39% of those eligible for renewal by March 31 have been renewed. Another 1,158 are under staff review, and 2,586 have not yet submitted a renewal, according to DLI.

“DLI has also extended the deadline for all licensees to complete required continuing education by 90 days, so builders can renew their licenses even if the qualifying person for the license has not yet completed their continuing education,” Honerman said in an email.

The department “encourages builders to submit their renewals online and to upload current liability and workers’ compensation insurance information with their online renewal or email them to [email protected],” Honerman said.

As for inspections, department is reaching out to municipalities that enforce the building code to “remind them of their responsibilities to provide inspection services” and to contact DLI’s Construction Codes and Licensing Division if they will be reducing services, Honerman said.

“DLI will also reach out to construction industry associations to inform them who they can contact at DLI if contractors have difficulty obtaining inspections. The department will try and resolve specific issues with affected cities. However, some cities are no longer responding to calls or emails,” he added.

Also on Wednesday, a coalition of unions and community organizations in Minnesota released what it calls a “People-Centered Response to Covid-19 Public Health Emergency.”

The group published a list of “demands” that include support for emergency shelter, workplace safety, emergency unemployment benefits, lease security, stable housing, a moratorium on evictions and foreclosures and more.

“The immediate demands focus on ensuring that as we fight back against COVID-19 and the economic fallout that comes with it,” the group said. “We are putting the needs of Minnesota families before handing corporations more bailouts.”

On Wednesday, the U.S. Department of Housing and Urban Development said it has authorized the Federal Housing Administration to implement an “immediate foreclosure and eviction moratorium” for single-family homes with HFA mortgages. The moratorium is valid for the next 60 days.

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