This paper was written in fulfillment of the requirements for the degree of Master in Public Policy at the John F. Kennedy School of Government, Harvard University, and with support from the Kennedy School's Ash Center for Democratic Governance and Innovation.
As a response to the foreclosure crisis the City of Minneapolis developed its Foreclosure Recovery Plan. A key component of the Minneapolis strategy was its partnership with nonprofits to acquire and rehabilitate (rehab) properties for ownership and rental under the Neighborhood Stabilization Program (NSP). Non-profits have acquired almost 189 properties and completed 102 of the rehabs with funding from the City. As the housing market begins to bounce back, Minneapolis continues to struggle with the foreclosures left by the crisis. At the same time, resources are wearing thin as federal funds run out. With fewer resources, it is imperative for the City to evaluate its efforts and identify where it can make the biggest impact. At the request of the Community and Economic Development Department this analysis attempts to evaluate the impact of the City’s rehabilitation strategy on the private market.