(bright music) (bright music continues) - Welcome to "Almanac North," I'm Maria Hewitt.

On tonight's show, experts on housing share what they know about the marketplace, programs, and incentives for home-seekers of all levels, and trends and insights surrounding home ownership in our region.

That's up next on "Almanac North," but first, the Minnesota Department of Human Services is asking for public feedback on new draft childcare licensing standards for family and center-based childcare providers.

The changes will be the first significant revisions to the childcare licensing standards since the 1980s.

The current documents are drafts, and feedback is a crucial step in the process.

In-person listening sessions for childcare providers, licensers, and the public will take place throughout the state in June and July.

Time, dates, and locations can be found on the project webpage.

The events will be in person, RSVPs are requested.

People can also weigh in on the draft standards through an online survey through July 15th.

The survey will be used to gather input on the clarity, effort, and value of the draft standards.

The DHS will issue a revised draft this fall after gathering comments with plans to present the revised draft to the legislature next year.

The legislature would need to consider and pass the new standards, including establishing a start date, that the legislative process includes additional opportunities for public engagement.

Updating the childcare licensing standards is part of Minnesota's Child Care Regulation Modernization Project.

Minnesota's first comprehensive scan of school nurses shows many schools, particularly those with more low-income families, lack access to a school nurse.

The "Minnesota School Nurse Workforce: A 2022 Snapshot" is a report focused on the school nurse workforce in 2022 in response to the impact the COVID-19 pandemic had on the health and wellbeing of students, families, school nurses, and educators.

Approximately two-thirds of schools were public school districts, and one-third were charter schools.

Overall, less than half of Minnesota school districts employ a licensed school nurse.

Only 34% of Minnesota school districts are required to employ a licensed school nurse, because they enroll 1,000 or more students.

Of the schools below that threshold, only 26% have school nurses.

Research has shown that school nurses are a critical bridge between health and learning within and beyond the walls of schools.

School nurses empower to be well through teaching, treating, counseling, and supporting students to increase classroom seat time and decrease trips to the health office and absences from school, according to a 2021 study by University of Washington researchers in "The Journal of School Nursing."

(bright music) Now, let's switch gears to our topic tonight, housing.

One Roof Community Housing Director of Strategy and Policy, Noah Hobbs, joins us.

Noah, welcome.

- Thanks for having me.

- Happy to have you here.

Let's start out with an overview of One Roof, and how it helps housing in Duluth.

- Yeah, so, One Roof provides a variety of services for affordable housing, whether it's multi-family development, we've got Brewery Creek right across from the co-op on 4th Street there, that'll be opening this year.

We do single-family development as well, so, single-family home ownership through a shared-equity model called the Community Land Trust.

We have about 325 homes, mostly in Duluth, but as far as Grand Marais to Grand Rapids, and down to to Cloquet.

We also provide home rehab loans for folks that may get denied from a traditional lender, so, a bank or a credit union, that have poor credit or something, and we're able to help with that, provide the financing for, you know, roof, windows, furnace, whatever it is that you need.

We also do some down payment assistance on behalf of, now, the state of Minnesota, as well as having our own pool of funds for down payment, and then we also operate home buyer education and counseling for folks.

So, a lot of first time home buyer mortgages through various lenders, you have to take this eight-hour course, and I took it back in 2011, and it was super helpful.

Eight hours of, you know, what's realtor, what to look for, housing inspection, insurance agent, all of that, and so, we provide that as well, twice a month.

- I think that education piece is so important.

I feel, in high school, that would've been a nice education topic.

I don't use trigonometry, but buying a house, and the information you need would've been helpful.

- Yeah, I mean, outside of potentially a college education, a house is the next biggest investment or the biggest investment that you'll make, so, it makes sense to be as knowledgeable as possible when you make that investment.

- Let's talk about the Community Land Trust program.

Maybe you can explain a little bit more how that works?

You said, 300 some homes, how does someone get involved in that?

- Yeah, so, it's home ownership, so, you pay property taxes, insurance, mortgage, just like traditional home ownership.

What we do is there's a subsidy on the front end that buys down the purchase price so that it's affordable to someone earning 80% and below the area median income, and most of our homeowners earn about 60% and below the area immediate income.

So, it allows folks to achieve home ownership quicker, or achieve home ownership if they may not normally be able to without this service.

So, it's a one-time, upfront subsidy, and then the shared-equity portion when that homeowner goes to sell, or if they sell, part of the sale price, the appreciation goes back into buying down the sale price.

And so, it's kind of a way to slightly decommodify real estate or housing market, but also allow folks to build equity in a way that renting doesn't allow for.

- So, looking at a wider lens, how do you view the current housing market in Duluth?

- It's tight, right?

So, you've got interest rates that have increased significantly over a short period of time, we have low inventory both for across all income levels.

I think the last housing indicator report said we needed about, you know, 3,500 affordable, both rental and ownership, and then also, you know, market rate, as well, and I think about a 1,000 or 1,500 demand, and then we had the downtown study that said, Downtown Duluth could take an additional 1,000 or 1,400 units, and so, we're starting to feel that with house prices, you know, creeping up significantly in the past decade or so.

Some interesting trends on that, though, is that our home ownership rate has remained steady and slightly increased from a decade ago, so, we're at about 60%, 60.2%, which is in line with the national average, but about 14% below the average for Minnesota, and so, there's not a lot of home ownership being converted into rental.

I mean, that's certainly something to watch with the conversation around LLCs purchasing homes, but our home ownership rate has actually slightly increased and remained steady through the last decade.

- Are there any specific challenges for those in Duluth, those first-time home buyers who maybe have additional barriers to getting that first home?

Are there specific challenges they're facing?

- Yeah, in this market, it's certainly other buyers that may have more money for a down payment, may do a cash offer, or may offer above and beyond what the asking price was, and that's certainly a barrier, always, and then with, you know, we have about 80 homes on the market right now, single-family homes, and that's not a lot, and so, you're competing with, you know, a minimum of, you know, 80 other folks, potentially, for 80 other properties, and certainly more than that.

That's tough, and so, I think the home buyer education counseling is huge, whether it's through, you know, One Roof provides it, and Community Action Duluth also provides it here in Duluth to help prepare folks to purchase a home, and then that down payment assistance from the state of Minnesota is really helpful, as well, in kind of leveling the playing field a little bit on an offer.

- How do you see the market evolving over the next few years?

- (chuckles) That's a big question, right?

So, I think 2023 was the first time since 2007 that we've reached a production threshold across the country, and so, we have increasing population, either through people having children or immigration, and we're not building housing to the rate that we're actually growing as a country and as a state, and folks wanna live in Duluth, you know, more locally, and that's putting pressure on folks on the lower income scale, prices are going up.

I think we have to get serious about adding, you know, not 5, 10, 20 units, it has to be thousands of units, and that's always scary for folks, 'cause it's changed, you may get new neighbors, your neighborhood may change a little bit, but to have a vibrant, thriving city, I think having an influx of, you know, growing population is always a good thing to have.

- Do you have any advice for someone looking for a home right now?

- Yeah, make sure, if it's your first time buying a home, take a first-time home buyer course.

It's super helpful in identifying the things that you need to do to be ready for it, to make that purchase and investment, and also gives you answers to questions you didn't know to ask, 'cause you don't know what you're looking at, and so, do that, it'll help you connect you with realtors, insurance agents, all of these things that, you know, very adult things, right?

First-time home buyers don't feel like you've grown up until you purchase a home, - Yep.

- And I think that's the first step.

And you don't have to do it, you know, two weeks before you're purchasing a home.

You can do it and should do it, you know, a year in advance, and be prepared for that, and then hang in there.

It's a tough market, - Yeah.

- And don't get discouraged.

- Noah, thank you so much for joining us tonight.

- Thank you.

(bright music) - Next, we're having a conversation with realtor, Casey Carbert from Edmunds LLP.

Casey, thank you for joining us.

- Thank you for having me here today.

- Happy to have you here, and let's talk about the current housing market.

What does it look like at the moment in our area?

- Well, it has been a seller's market for the past several years, and it continues to be a seller's market.

We have a shortage of inventory, and we are not alone in Duluth, that's happening everywhere, but I don't see a solution to it anytime soon.

- Are there any local or national programs that you recommend for first-time home buyers?

- Oh, certainly.

We are fortunate in this area to have Minnesota Housing.

They have some wonderful programs.

We're also locally really lucky to have One Roof Community Housing.

They have a number of programs that are available, and you're shaking your head like you've heard of these before, - Yep, yep, yep, we're chatting with them, yep.

- Yep, yep, and so, additionally, depending on the lender, they may also have some programs that could work for the first-time home buyer.

Everyone's trying to cater to that business for obvious reasons.

- Mm-hmm.

You know, I feel like everybody knows someone in the home hunt currently, and it seems like it's just so competitive with, you know, like, full cash offers, waiving inspections, you know.

Do you have any advice for people who maybe can't do a cash offer, or aren't willing to waive inspection?

Like, what can you put in an offer that will help you?

- Well, that's a really great question, and it does require some creativity, sometimes, to do it, but at the end of the day, if there's a cash offer that waives an inspection, it's pretty hard to beat it, but that's not every time, you know?

Very commonly, there are other financed offers, and you can't be down and out about it.

Just keep writing those offers, and recognize that it might take seven or eight offers to get that one.

As far as the waiving the inspection thing, that's always a sticky wicket.

I mean, who wants to wave an inspection?

I certainly wouldn't be real excited about that, of course, but one thing that started to happen, and it's not as good as an inspection, is you can potentially ask the listing agent if a walk-and-talk inspection can happen, where you go through with an inspector and have an abbreviated inspection in advance of making an offer.

Clearly not ideal.

It doesn't last as long or is as thorough as a full inspection, but it can give you more of an idea if someone was to just consider doing that.

The other thing is, it's also not ideal, because you spend money to do that, and there's no guarantee that you're going to get the property, which is often why the inspection contingency is added once you know you have it locked down, you know?

- Sure, so, you mentioned that there's a lot of interest in assisting first-time home buyers.

What sort of things can you do, or realtors do, or lenders do to help remove barriers to become a first-time home buyer?

- I think it's really essential that you find someone who knows, especially in the lending world, the options for people, and again, and unfortunately, if you're up against a cash buyer, boy, that's a tough one, but if you have a lender who knows what they're doing, knows the programs, that can make all the difference.

I was just talking to a lender at North Shore who does a lot of business.

They were just acknowledged for all the high volume that they do with the Minnesota Housing, for example, and she said that they had to really stick with getting the voucher for the person.

They had to know the ins and outs of the program, and they got the person to the closing table, and she said it wasn't the highest sale that she's done, but it was one of the ones where she drive the most pleasure because of the fact that she got this person a house, and this person had worked so hard to find it.

So, knowing those programs is essential, and working with someone who understands those programs is also essential.

- Yeah.

So, you know, earlier this year, there was a lot of talk in the community about, like, private investment or LLCs buying up properties, particularly in an incident in Park Point.

Is that something that you see across the City of Duluth?

Is that an issue that the housing market is facing?

- Well, certainly in the housing boom of the early 2000s, we saw a lot of investors who were coming in and purchasing student rentals.

I mean, you look around, you know, the neighborhoods within close proximity to UMD, it happened then, and it can still happen, but what's interesting is aside from potentially those investors that are coming in and purchasing maybe some of the existing rentals, the demand is so great for single-family homes that some of those are actually flipping back into owner-occupied properties, because at the end of the day, they're not looking at the bottom line for how it should cash flow.

I personally have not found a corporation, for example, that is, like, big, like you hear about, what was it, Blackwater in Arizona, buying up a number of properties.

Here, you'll find the, you know, like, "Hey, my friend and I, we bought a house together, and then we called it, you know, Raven LLC, you know, and we have an apartment."

It's more of that that you're seeing, and absolutely, it is competing with some of that, but it's one of those things with a shortage of inventory, everyone's trying to get the same piece of pie.

- So, do you have any advice for those looking to buy a home right now?

- Well, just, you know, clearly, if someone is in a position where they're looking for a home, they're a goal-oriented person who's used to some level of success, and just be prepared that it could take a little while, and that not getting the first house you buy is probably a, or, I'm sorry, the first house on which you make an offer is probably a reality, but just to stay with it, don't get down.

Cheerleading is important.

I do a lot of cheerleading in my job.

- Yeah.

- And really, things do have a way of working out, and for, not everyone, but a lot my buyers, we're winning more than we're losing, you know?

And having quick feet is essential.

Get in and take a look at the house as soon as you can, because then you can capitalize on the fact that you have maybe a day or two to contemplate it, as opposed to going in after the house has been listed for a couple days, and then there may already be offers on the table and a deadline in place, and you're having to make a quick decision.

- Yeah, I know when I was house hunting, my mantra was, "The right house will come along."

(both chuckling) - Well, and it sounds so cheesy to say that, but, I mean, at the end of the day, things do have a way of working out for the best.

- Casey, thank you so much for joining us tonight.

- Well, I appreciate being asked to come by.

(bright music) - And now, we're joined by Community Development Manager for St. Louis County, Brad Gustafson.

Brad, welcome to "Almanac North."

- Thank you for having me.

- Brad, can you provide an overview of the Northeast Minnesota Home Consortium, and how it helps home buyers in the region?

- Yeah, so, the Northeast Home Consortium was created in 1992 through some legislation by Jim Oberstar.

So, it created, it was so specific down to number of lakes, square miles, and it's in order for us to be eligible for some home investment partnerships financing through Housing and Urban Development, HUD.

So, we receive an amount every year from HUD to go to benefit low to moderate-income individuals and households.

So, the consortium is made up of Itasca County, Koochiching, Cook Lake, and St. Louis County, so, that covers 15,000 square miles.

It's about a fifth of the landmass of Minnesota, and 3% of the population in Minnesota.

- Oh, wow.

- So, it's a big area with very low-dense population.

- So, what are some of the challenges or barriers that those home buyers, homeowners are facing?

- I would say availability of homes and cost are the two big drivers right now.

- So, for the finances from HUD, you get those yearly, how do you disperse them, or is it through programs that you have through the county?

- Yeah, so, it's a competitive grant application process, and the consortium is made up of voting members, one commissioner from each of the counties as well as a housing professional, and I should say Duluth receives its own home funding.

So, our consortium is the five counties outside of the city of Duluth as well.

- Okay, okay.

So, how would someone learn about the grant and be a part of the consortium?

- So, we mainly fund nonprofits, so, for example, One Roof Community Housing is a great partner for us.

You know, they do acquisition, rehab, resale to low-income families, you know, and they have a land lease, a 99-year land lease to make it more affordable, so, it's been very challenging for One Roof even to find homes, you know, within their budget.

Another couple agencies that we work with, with our first-time home buyer assistance program is AEOA and KOOTASCA Community Action.

So, they administer on our behalf a down payment and closing cost assistance program to income-eligible, low-income homeowners, first time home buyers.

- Okay.

So, from your view, from the St. Louis County view, how does the housing market look?

- (chuckles) It's pretty dismal across the entire nation.

You know, the housing market is like a wheel.

There's many different spokes.

There's the single-family housing that's one spoke, there's senior housing, market-rate rentals, affordable rentals, we need everything, and, you know, if you take out one of those spokes, the wheel doesn't turn correctly.

You know, so, with the housing market, especially for affordable first-time home buyers looking to buy their first home, there's nothing out there.

The homes that are out there, they're going within nine days, and there's usually a bidding competition, which drives up the price, so, they're getting priced out of the market.

To have a healthy housing environment, we need seniors to have a place to live, so they move out of their single family homes, freeing those up for either move-up buyers or those first time home buyers, you know, they're gonna be moving their family into 'em.

- I really like your spoke analogy, because housing, they're all connected.

- It is.

- And there's like a life cycle where, you know, (Brad chuckling) at different points in your life, you need different kinds of housing depending on where you are.

- Yep.

- So, do you see any solutions on the horizon?

- So, the last state legislation passed, huge funding to Minnesota Housing for housing initiatives.

- Was that the 1 billion?

- Yeah, so, we're starting - Yeah.

- To see, you know, once Minnesota Housing hires and figure out how they're gonna, you know, put out these new programs, we'll start seeing projects coming forward, but unfortunately, that's not gonna be enough to solve this.

You know, if you look around the City of Duluth, there's a bunch of new housing complexes coming up, which is great.

For example, there's The Pillars of Hermantown, it's a senior living.

You know, one of my parents' friends called there, because they live up north, Northern St. Louis County, there's no senior housing available there.

So, they're like, "Well, let's call The Pillars to see," and it's a five-year wait - Oh.

- To get in there.

So, I mean, what we're seeing in Duluth is great, but Northern St. Louis County is completely different.

You know, we've got the oldest housing stock in the state, the rents that you can charge to these people, or the residents there don't make sense to just build a rental unit, or new single-family homes, or senior, just because the amount you can collect in rent won't pay for the loans that are needed to make everything work.

So, there's needs to be a lot more subsidies added to make these projects move forward.

- You know, you mentioned what, you know, the consortium area of Northeast Minnesota sees, you know, not a ton of population, a ton of land, and they're impacted by these certain challenges.

How does that compare to the rest of the state of Minnesota?

- I think there's a housing shortage across the entire state, but I think it's a lot more needed in Northern St. Louis County, just because we don't have builders coming in, slapping in, you know, all these new housing units.

You know, Habitat for Humanity of Northern St. Louis County is our biggest housing developer.

You know, they do five to six homes a year, whereas, you know, in the metro, you know, they're popping up new housing developments all across the suburbs.

So, we need to have a more regional focus, you know, at least through the consortium lens, trying to, you know, put together some incentive packages, and work with all the stakeholders that are in our region to try to solve this housing issue.

- Brad, thank you so much for joining us tonight.

Really appreciate it.

- Thank you.

(bright music) - The weather has been up and down all week, and it might impact events over the weekend, but are we going to let some wet weather slow us down?

I didn't think so.

Let's take a look at what you might be up to this weekend.

Starting up Friday and going through Saturday is the 42nd Annual Park Point Rummage Sale in Duluth.

Search for your next treasure during this iconic event hosted by the Park Point Community Club.

Weather on Saturday starts off okay, but there is potential for rain starting in the afternoon.

Saturday from 1:30 to 3:30 is the Basalt Bling Pendant Jewelry Workshop in Bayfield.

Wild Rice Retreat is putting on the event, which will teach you how to take a Lake Superior basalt pebble and turn it into your own jewelry piece.

Tools and materials are included in the cost of the workshop.

Starting Friday and running through the weekend is the Second Annual Green Lantern Craft Show in Brainerd.

Minnesota-made arts, crafts, and curiosities offer all kinds of interesting finds.

If you are a vendor, you are also encouraged to join in on the fun.

From 9:00 to 5:00 on Friday and Saturday, and from 9:00 to 3:00 on Sunday.

And don't forget, Sunday is Father's Day.

Many different businesses and restaurants are having specials or hosting events to help celebrate Dad.

Well, there's a lot going on out there.

Keep an eye on the weather, and make sure you go out and enjoy your weekend.

That's it for everyone here at "Almanac North."

I'm Maarja Hewitt, thank you for joining us, good night.

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