Archive for April, 2024

Houses, History, and Hope Walking Tour – June 9th, 2024

Posted on: April 29th, 2024

Join us Sunday, June 9th from 1pm-3pm for a walk around Lake of the Isles to learn about the history of Minneapolis and its parks. All proceeds go to supporting Alliance Housing.

Register for $50/per person on the Eventbrite or email eschmidt@alliancehousinginc.org with any questions.

Ben Olk, former history teacher, Board Chair Emeritus of Alliance, and, according to his children, certified “History Geek” will lead the tour and conversation. Ben will will share stories about the stately homes around the lake including the people who designed, built, and originally lived in them. In addition to the impressive homes, he’ll also discuss how Minneapolis and its citizens have responded to the need for affordable and accessible housing, including the history of Alliance Housing.

The walk is limited to 40 individuals, if tickets sell out, you will be able to join a waitlist and we will reach out if a spot becomes available. In the event of inclement weather the walk will be rescheduled to the following Sunday, June 16th.

Wear comfortable shoes and bring water for this approximately 3-mile walk. Meet at the SW end of the bridge across from the NE end of the Lake of the Isles Dog Park.

Protect tax exemption for nonprofit-owned affordable housing

Posted on: April 24th, 2024

Over the past four years Alliance has provided updates related to our effort to maintain property tax exemption status after being denied exemption by Hennepin County in 2020. After several years of advocacy, Alliance prevailed and the Minnesota Supreme Court affirmed our exemption status according to state law. This was a win not only for Alliance, but for nonprofit-owned affordable housing across the state.

Alliance successfully brought an action in the Minnesota Tax Court to retain these exemptions. Hennepin County then appealed to the Minnesota Supreme Court, which affirmed the tax court’s decision. The Court held that the properties in question should be tax-exempt since they are owned by a 501(c)(3) nonprofit organization and rented to fulfill its charitable purpose of providing affordable housing. Hennepin County is now advocating for legislation in the Minnesota Legislature that would deny tax exemption unless “a portion of the property is permanently used by the charitable organization to provide services to the intended beneficiaries of the organization’s work.

Hennepin County is seeking legislation as part of the omnibus tax bill (SF 5234/HF 5247) that would effectively eliminate tax exemption for some nonprofit-owned affordable housing rented to low-income and formerly homeless Minnesotans.

The change proposed by Hennepin County would effectively eliminate the property tax-exempt status for nonprofit housing providers across Minnesota, many of whom serve Minnesotans facing the greatest risk of homelessness. Organizations like Alliance operate at a loss and must seek charitable donations to help pay the cost of operating these properties, as rental revenues fall well short of operating expenses.
Eliminating tax exemption for these properties would require Alliance to either seek significant additional donations or subsidies, or to raise the rents charged to tenants who are already struggling to afford housing. This would have a $100,000 annual impact on Alliance alone.

Alliance and its peers hope to work with Hennepin County to meet their shared goals of preventing homelessness and ensuring a range of housing options. Alliance supports a change to Minn. Stat. § 273.19 to clarify that individuals residing in nonprofit-owned affordable housing should not be subject to tax as a result of the property’s tax-exempt status, as they are its intended beneficiaries.

Learn more about Alliance’s position on the new legislation.