Jonathan Weinhagen's "Business has nothing to fear from DFL dominance" (Opinion Exchange, Nov. 16), welcoming a trifecta of DFL government control, shows a complete lack of recognition of the damage that Gov. Tim Walz, his administration and the DFL House did to the rental property industry. The DFL has been oblivious to the damage done to the affordable housing industry during COVID, and little understands the long-term effect of that damage.
Unlike grocery, clothing or utility suppliers — presumably the "other" necessities of life — only rental landlords were required to give free goods and not be fully reimbursed over 30 months of the pandemic. At least restaurants got to close their operations and stem the bleeding. I received no such relief. I received maybe 20 cents from Rent Help MN for every dollar of rent owed by nonpaying tenants. That wasn't enough to cover operating costs, let alone pay debt service.
Only rental property owners have been denied access to justice to evict deadbeats and nonpaying tenants — first by unconstitutional executive order and then by legislation. The courts still have a four-month backlog to grant even a first hearing to get nonpaying tenants from June out. I can assure the state — there will be a reckoning.
Meanwhile I must continue to pay full taxes, full utilities and full staffing costs. I have lost millions of dollars and most of my industry colleagues are recoiling from huge losses as well. Our affordable investments are still owed over $2 million of unpaid rent for just the small portfolio of 1,500 units we have here in Minnesota. We were granted no debt relief. No tax relief. Not much rent relief.
And speaking of rent relief — what came was inadequate and bureaucratically mismanaged by an incompetent housing commissioner — Jennifer Ho. She is completely oblivious to how poorly her department administered Rent Help MN, one of the worst-run rent help programs in the country.
Meanwhile, the Department of Education gave away $250 million for more phantom meals to students than could have been consumed in a decade, let alone in two years. The largest fraud in the country. Great management there.
Surprisingly, for four years it has been the DFL — not the Republicans — who have blocked meaningful property tax relief for affordable housing operators and their tenants. The bill to fix "4D rates" has cleared the Senate three times and been stalled in the House each time. Affordable housing is taxed more in Minnesota than in any other state. Any wonder why investment is bailing on us, or why the affordable housing crisis continues?
As president and CEO of the Minneapolis Regional Chamber, Weinhagen needs to play nice. I get that. But that sop to the DFL is an embarrassment, and I am ashamed that an organization I am a member of would tolerate it.
Steven M. Minn, of Roseville, is vice president and chief financial officer, Lupe Development Partners.
