Minnesota Housing Programs

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Minnesota Housing Programs
Relocation Aid
April 21, 2006
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Minnesota Housings Mission

• We are committed to meeting Minnesotans needs
  for decent, safe, affordable homes and stronger
  communities

3
Minnesota Housings Strategic Goals

• End Long-Term Homelessness
• Increase Minority Homeownership
• Preserve Strategically The Existing Affordable
  Housing Stock
• Provide Housing Choices For Low And Moderate
  Income Workers
• Housing Partner Of Choice

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Todays Multifamily Agenda

• Three Goals
• Agency Introduction
• Long-term tools
• Case Study
• Capital Resources
• Short-term tools
• Rental Assistance Resources

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Housing Assistance, 10/04 - 9/05

• Single Family
• 398.8 million in assistance to over 16,400
  homeowners and homebuyers.
• Multifamily
• 238.5 million to over 41,500 units of affordable
  rental housing.
• Contact staff to determine affordable rental
  housing available in your area.

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Case Study Agency Financed

• New San Marco Apartments
• 70 SRO/Efficiency units, New Construction
• City of Duluth
• Affordable to residents at 30 AMI
• 36 Long-term homeless units
• 40 Section 8 PBV units
• 30 GRH units
• Targeting homeless with disabilities

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New San Marco - Site
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Case Study New San Marco

• Multi-year process
• Planning
• Application
• Selection
• Underwriting
• Construction
• Occupancy

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Case Study New San Marco

• Financing TDC, 9.2 Million
• 5.96 million Tax Credit Equity (650,000)
• 1.65 million Minnesota Housing
• 500,000 Federal Home Loan Bank
• 400,000 HUD
• 300,000 Greater MN Housing Fund
• 250,000 City of Duluth (HOME, HIF)
• 170,000 MN Green Owner Equity

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Multifamily Resources

• Annual Request for Proposals (RFP)
• Capital Resources
• Rental Assistance
• Operating Subsidy
• 2006 RFP
• Published, April 24
• Applications deadline, June 20

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2006 RFP Timeline

• April 24, 2006 RFP Published.
• May 10, 2006 RFP Training.
• Earle Brown Center, Brooklyn Center
• June 20, 2006 RFP Deadline.
• October 26, 2006 Board Selection.

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Multifamily Resources 2006 RFP

• State Resources
• Approximately 80,000,000
• Funding Partner Resources
• Approximately 5,000,000
• Housing Tax Credits
• Approximately 10,000,000

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Multifamily Resources 2006 RFP

• Funding Partners
• Family Housing Fund
• Greater MN Housing Fund
• Met Council
• Green Communities Initiative
• Collaborating Partners
• Hennepin County
• Ramsey County
• City of Minneapolis
• City of St. Paul
• Coordinating Partners
• Federal (HUD USDA Rural Dev.)
• State (DHS, DEED)

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Multifamily Resources 2006 RFP

• Minnesota Housing Funding Programs
• Housing Trust Fund
• Deferred Loan
• Capital, Operating Subsidy Rental Assistance
• 70 targeted toward LTH proposals.
• Ending Long-Term Homeless Initiative Fund
• Deferred Loan
• Capital, Operating Subsidy Rental Assistance
• Targets LTH proposals.

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Multifamily Resources 2006 RFP

• Funding Programs Continued
• Publicly Owned Permanent Supportive Housing
  Program
• Forgivable Loan, Capital
• Public ownership requirement
• LTH requirement
• Economic Development Housing Challenge
• Deferred Loan, Capital
• Workforce housing proposals
• American Indian set-aside

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Multifamily Resources 2006 RFP

• Funding Programs Continued
• Preservation of Affordable Housing Investment
  Fund
• 1st Mortgage or deferred, Capital
• Preservation Acquisition, rehab or debt
  restructuring of developments with Project Based
  Federal assistance and supportive housing
  developments.
• Economic Development Housing Challenge
• Deferred Loan, Capital
• Workforce housing proposals
• American Indian set-aside

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Multifamily Resources 2006 RFP

• Funding Programs Continued
• Low and Moderate Income Rental Program
• 1st Mortgage, Capital
• Acquisition, rehab and new construction
• Flexible Financing for Capital Costs
• Deferred loan in conjunction with 1st mortgage
• Acquisition, rehab and new construction

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Multifamily Resources 2006 RFP

• Funding Programs Continued
• Housing Tax Credits
• Housing Program under IRS rules
• Eligible acquisition, rehab and new construction
  expenses
• Two competitive rounds per year

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Rental Assistance Resources

• Rental Assistance
• Housing Opportunities for Persons w/ AIDS
• Short-term Rent, utility and mortgage assistance
• ELHIF LTH specific
• Available through the RFP or local administrators
• Bridges SPMI specific
• Minnesota Housing partners with DHS
• Local Administrators (ELHIF HTF)
• Each program is unique
• 21 program administrators statewide
• Contact list available on website

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Rental Assistance Resources

• Rental Assistance
• Minnesota Housing Contact
• Kim Lieberman, Program Manager
• 651-296-9841
• Kim.Lieberman_at_state.mn.us

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Rent Assistance Resources

• Rent Assistance Brochure
• www.mhfa.state.mn.us/multifamily/RA_Brochure.pdf
  
• HTF ELHIF Rent Assistance Program Info.
• www.mhfa.state.mn.us/multifamily/HTF.htm
• HTF ELHIF Rent Assistance Program
  Administrators
• www.mhfa.state.mn.us/multifamily/HTFRA_ELHIF_Conta
  cts.pdf
• Bridges Program Administrators
• www.mhfa.state.mn.us/multifamily/BRIDGES20Contact
  s.pdf
• Bridges Program Information
• www.mhfa.state.mn.us/multifamily/bridges.htm
• Family Homeless Prevention and Assistance
• www.mhfa.state.mn.us/multifamily/FHPAP.htm

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Multifamily Resources

• Multifamily Housing
• www.mhfa.state.mn.us/multifamily/_home.htm
• Consolidated RFP Guide
• www.mhfa.state.mn.us/multifamily/MF_Application_Gu
  ide.pdf
• Housing Tax Credits
• www.mhfa.state.mn.us/multifamily/Multifamily_Tax.h
  tm
• Long Term Homeless Business Plan
• www.mhfa.state.mn.us/multifamily/LTH.htm
• Program Guides
• www.mhfa.state.mn.us/managers/Program_Guidelines.h
  tm

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For More Information Contact
Ken Doresky 651-284-3177 Ken.Doresky_at_state.mn.us
400 Sibley Street, Suite 300 St. Paul, MN 55101
651-296-7608 800-657-3769 TTY
651-297-2361 www.mhfa.state.mn.us
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Single-Family Homeownership and Home
Improvement Programs
April 21, 2006
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Supporting Successful Home Ownership
Education Outreach
Pre-PurchaseCounseling
Before-Purchase
Affordable Financing Loans
Purchase
Post-Purchase Support
Default and Foreclosure Counseling Assistance
After-Purchase
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Homebuyer Education

• Homestretch Curriculum
• Advantages vs. disadvantages of homeownership
• Mortgage industry terms
• Overview of loan application process
• Evaluation of credit picture and barriers
• Shopping for a home
• Home Inspections
• Loan closings forms
• Post-purchase responsibilities

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First Mortgage Programs

• Minnesota Mortgage Program (MMP)
• Below market interest rate
• 3,000 in entry-cost assistance available
• Available statewide from participating lenders
• Community Activity Set Aside (CASA)
• Below market interest rate
• 3,000 in entry-cost assistance available
• Monthly payment assistance (75, 50, 25)
• Option of a 40 year term mortgage
• Partnerships apply for the program

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Borrower Eligibility RequirementIncome Limits
MMP and CASA

• 11 County Twin Cities Metro Area contains
  Anoka, Carver, Chicago, Dakota, Hennepin, Isanti,
  Ramsey, Scott, Sherburne, Washington and
  Wright Counties
• These limits are based on data supplied by the
  US Department of Housing and Urban Development
  (HUD)

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Borrower Eligibility Requirement House Price
Limits

• For MMP and CASA

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Borrower Eligibility Requirement First-time
Homebuyer

• Has not had an ownership interest in a principal
  residence for 3 years First-Time Homebuyer
  (Section 4.3)

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Downpayment and Entry-Cost Assistance

• Homeownership Assistance Fund (2nd Mortgage)
• Interest free, deferred loan
• Helps borrowers qualify by providing cash to
  close, improving ratios and increasing borrower
  purchasing power
• Due and payable upon one of the following
• Sale or transfer of property
• Refinance of the first mortgage
• Payoff of first mortgage
• No longer a primary residence

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Downpayment and Entry-Cost Assistance

• Various levels of assistance depending on
  mortgage program
• MMP
• 3,000 in entry-cost assistance for eligible
  borrowers
• Targeted borrower/non-targeted borrower
  requirements
• CASA
• 3,000 in entry-cost assistance
• Monthly payment assistance (75, 50, 25)

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HAF Program Guidelines

• CASA or MMP First Mortgage
• Borrower meets income limits
• Borrower required to pay out of own funds 500
• (Borrower must cover their minimum investment
  per guidelines of the insurer/guarantor FHA,VA,
  RD,etc.)

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How Borrowers Access Programs

• Apply with a lender that originates Minnesota
  Housing first mortgage programs.
• The lender originates, processes, underwrites,
  closes and funds the loan, then sells the loan to
  Minnesota Housing.

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Credit Requirements

• Credit worthiness (Section 4.7)
• Must be a good credit risk as defined by loan
  type and mortgage industry underwriting standards
• FHA
• VA
• RD
• Conventional (Fannie Mae, Freddie Mac, etc.)

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Mortgage Eligibility

• Fully amortized fixed rate loans- No balloons
• Allowable Loan Amortization Terms
• MMP (15, 20, 25, 30)
• CASA (15, 20, 25, 30, 40)

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Increased Purchasing Power Cash to Close
60,000 Income, 20 added to PITI for Taxes
Insurance, 33/38
5.625
206,700
3,000
217,400
233,300
233,300
CASA An increase of 37,100 in buying power
and 3,000 cash to close!
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Home Improvement Programs

• Improve livability, accessibility or energy
  efficiency of a home
• Accessibility features
• Room additions
• Accessible bathrooms
• Ramps
• Hardwood flooring
• Hallway widening

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Home Improvement Programs

• Fix-Up Fund
• Flagship program
• Community Fix-Up Fund
• Community targeting
• Subprime features
• Rehab Loan Fund
• Targeted to very low-income borrowers

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Fix-Up Fund

• Max loan 35,000
• Higher loan amount possible if serving a
  household member with a disability
• Fixed payments
• Max repayment 20 yrs
• No down payment
• Low closing costs
• 110 LTV
• Unsecured loans if lt 10,000

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Community Fix-Up Fund

• Special home improvement programs for targeted
  community initiatives!
• Same terms and conditions as the fix-up-fund
• Subprime component available
• To access this program
• www.mhfa.state.mn.us/homes/CFUF_Matrix.pdf

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Fix-Up Fund and Community Fix-Up Fund Requirements

• Household incomes 90,000
• Income waiver possible if serving a family member
  with a disability
• Decent credit
• Owner-occupied homes (No cabins!)

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Rehab Loan Program

• Features
• Max loan amount is 15,000
• Additional 5,000 can be accessed in hh contains
  a family member with a disability
• Single-family homes 30 yr. term with 0
  interest rate loan payment deferred until
  borrower sells, transfers title or no longer
  occupies the property
• Requirements
• Income limits apply (4 person hh is 23,550)
• Owner-occupancy required
• Assets not greater than 25,000
• Access by contacting an administrator
• www.mhfa.state.mn.us/homes/Rehab_Administrator_by
  _County.pdf

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Resources

• Homebuyer Education
• Minnesota Home Ownership Center, www.hocmn.org
• First-Time Homebuyer Programs
• www.mhfa.state.mn.us/homes/homes_mortgage.htm
• Downpayment and Closing Cost Assistance
• www.mhfa.state.mn.us/homes/homes_payment.htm
• Home Improvement Programs
• www.mhfa.state.mn.us/homes/homes_improvement.htm
• Foreclosure Prevention Assistance
• www.mhfa.state.mn.us/homes/homes_foreclosure.htm

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For More Information Contact
Devon Pohlman [phone] Devon.Pohlman_at_state.m
n.us
400 Sibley Street, Suite 300 St. Paul, MN 55101
651-296-7608 800-657-3769 TTY
651-297-2361 www.mhfa.state.mn.us