6. HRSR 10-03-2011Item #6
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MEMORANDUM
TO: Housing Redevelopment Authority
FROM: Clay Wilfahrt, Assistant Director of Economic Development
DATE: 3 October 201 I
SUBJECT: Minnesota Home Ownership Center
Ed Nelson, Marketing and Communications Manager for the Minnesota Home Ownership Center
(MNHOC), will be joining the HftA to give an update on the programs offered byMNHOC,
focusing on the new EmergencyHomeowners' Loan Program focused on keeping families in their
homes during difficult economic times. Approximately 18 household in Elk River applied for this
program. Other programs offered byMNHOC include homebuyer education, foreclosure
prevention, and home repair and rehab.
ATTACHMENT
•EHLP Fact Sheet
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Housing Homeownership
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The Emergency Homeowners' Loan Program (EHLP) is afirst-of-its-kind federal program focused on
keeping families in their homes during difficult economic times. The program, developed by the U.S.
Department of Housing and Urban Development (HUD), will offer unprecedented mortgage assistance
to Minnesota homeowners in danger of foreclosure because of involuntary unemployment,
underemployment, or medical issues.
HUD has set aside almost $56 million for this program in Minnesota, which will provide up to $50,000 in
interest-free forgivable loans to more than 1,400 selected qualifying homeowners statewide.
ADDRESSING THE GREATEST NEED
More than two thirds of Minnesota
homeowners who seek foreclosure
counseling report falling behind on their
mortgage because of unemployment,
underemployment or medical bills.
This program has been designed specifically
to offer these homeowners -who are often
ineligible for loan modifications or other
foreclosure avoidance programs - an
avenue to keep their home.
In Minnesota, the program is being
promoted and supported by the Minnesota
Homeownership Center and Minnesota
Housing, two of the state's leading agencies
for helping homeowners avoid foreclosure.
EHLP Targets the Primary Cause
of Foreclosure in Minnesota
® Unemployment, Underemployment, Medical Hardship
^ All Other Causes
Source: Minnesota Homeownership Center 2010 counseling data
WHAT DO HOMEOWNERS NEED TO KNOW?
The Minnesota Homeownership Center is accepting applications from July 5 to July 22 from qualifying
homeowners statewide who meet basic program criteria. At the close of the application period, 1,405
Minnesota homeowners will be selected through a random lottery to participate in EHLP.
To qualify, homeowners must meet several criteria, including:
~ Have faced an income decline of at least 15 percent due to unintentional unemployment or
underemployment, or medical issues
~" Be at least 90 days delinquent on mortgage payments
~ Reside in the mortgaged property
For more information, a program application and submission instructions, visit www.EHLPMinnesota.com
www. EHLPMinnesota.com