Mayor Frey is right; excessive rules delay housing development

To combat the affordable housing crisis as well as the declining value of commercial properties, Minneapolis Mayor Jacob Frey signed a law cutting red tape for office-to-residential conversions.

According to the Minnesota Reformer:

Under the new rules, commercial-to-residential conversion projects will not be subject to public hearings — instead, the plans will only require approval by city staff. The ordinance will also exempt projects from intensive traffic studies and from an inclusionary zoning ordinance that requires developers to designate a portion of apartments as “affordable housing” or pay large fees instead.

Office-to-residential conversions, however, are not without their difficulties. As John Phelan previously illustrated, office buildings fundamentally differ from residential buildings in their design. This limits the convertibility of these offices into residential space. So, unfortunately for residents of Minneapolis, the new law will not likely do much to address housing issues or the city’s budget issues.

But while this law doesn’t offer much in terms of solutions, it should be an opportunity to shine a light on the need for universal housing reform in Minneapolis.

Whether he realizes it or not, by touting this law, Mayor Frey has admitted that excessive regulations are a huge obstacle to housing development in Minneapolis.

Converting an existing office building into housing doesn’t need the same level of public input and traffic study as a brand-new building, Frey said.

“Time is money and uncertainty is money,” Frey said. “If we can cut down on the uncertainty and cut down on the time frame that it takes to get this done, more owners and developers will choose to make that shift.”

The impact of regulations does not stop depending on what kind of development it is. If regulations, such as inclusionary zoning and public hearings, are causing developers to rethink converting offices into residential homes, those same regulations are also potentially responsible for the delayed construction of traditional residential housing in Minneapolis.

Mayor Frey is right; excessive rules cost developers time and money through uncertainty and delays. He needs to extend this reasoning to the broader housing industry.

Housing reform, if it is going to make an impact, should be universal.