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HANDOUTS HRSR 04-28-2003 4104cykkj._ t_//cD___Oz3 Minnesota Housing Finance Agency City of Elk River, HRA April 28,2003 MHFA Basic Facts • Lead state agency on affordable housing • 30 years old • Portfolio of $2 billion in loans • 2002: • $521 million in housing assistance • 54,000 households assisted • i MHFA Mission We are committed to meeting Minnesotan's needs for decent, safe, affordable homes and stronger communities. Decent, Safe, Affordable Homes • Incomes • Rents • Underserved populations • Stronger Communities • New development and job growth • Rehabilitation and age of housing stock • Linkage and smart growth principles • Cooperatively developed plans • Local investment and leverage MHFA 2001-2003 PROGRAM BUDGET Sources of Funds Uses of the Funds 14% 25% 1" 29% '.0.000 0:0:00.000 » 44% 22 44% 13% 9 •Bond Sales •Home Improvement Program •Agency Resources o Rental-Multifamily Development ®Federal Funds ®Rental Portfolio Management o State Appropriations ❑Homeownership Programs $1.1 billion in new activity for 2001-2003 biennium • Homes Programs A Continuum of Successful Home Ownership • Homeownership education • Home buying • Fixing-up homes • Community Revitalization • Post-purchase support, foreclosure prevention Consumer Lending Programs • Minnesota Mortgage Program (MRB) • Minnesota City Participation Program • Bonds sold "on behalf of" cities • Higher lender fees • Access to HAF • Fix-up Fund • Fixed rate, affordable payments • Ongoing funding! • Mortgage Revenue Bond Programs (MRS) • Tax exempt bonds • Below market interest rate financing • First time homebuyers • Low and moderate income • Acquisition cost limits • FHA, VA, RD, conventional loans Community Lending Programs • Key: address community credit needs • Homeownership Assistance Fund (HAF) • Interest-free deferred second loans • Entry cost assistance ($3,000) • Monthly payment assistance ($60/mo.) • Equity contribution loans (CASA only - $%,000) • Community Lending Programs (cont.) a'` • Community_Activity Set Aside Program (CASA) (NLRB) • Lender and community partner • Lowest interest rate funds • Access to pools • Higher income limits • Equity contribution loans Community Lending Programs (cont.) • Community Fix-up Fund (CFUF) • Lender and community partner • Lowest interest rate funds • Access to pool • Higher income and purchase price limits • Subprime option • Community Lending Programs (cont.) • Entry Cost Homeownership Opportunity Program (ECHO) • Lender and community partner • Private lender funds • $3,000 entry cost assistance • Interest-bearing deferred loan Community Revitalization Programs • Community Revitalization Fund • "Super RFP" one-stop shop • Flexible funding fills gaps • Variety of uses • Funding partners • Minnesota Urban and Rural Homesteading Program • Keys to Funding: What We Like! • Capacity • Feasibility • EVHI compliance • Cooperatively developed plans • Smart growth • Leverage • Underserved populations Multifamily Programs • Community re/development • New construction • Rehabilitation and preservation • Tenant support and rent assistance • Homeless prevention • Portfolio management; compliance monitoring; contract administration Activities • Development/Redevelopment • Supportive Housing • Preservation • Asset Management • Contract Services Re/development Programs • Policy goals • Production necessary for economic growth • Mixed income;subsidize only to fair market rent as defined by the U.S.Housing and Urban Development Agency • EVHI guidelines;smart growth;local planning, investment,leverage • Programs • Super RFP:Housing Trust Fund,Challenge Fund • First mortgages (Low and Moderate Income Rental Program) • Tax credits Supportive Housing Programs • Permanent housing with support services; very low income households; multiple challenges • Policy goals • Deeper rent subsidy • Link to social services • Continuum of Care Plans • Programs: Housing Trust Fund; Bridges Preservation of Federally Assisted Housing • Policy goals • Preserve every unit feasible • Ensure quality ownership;physical condition • Programs • PARIF • Redefined equity I and II • First mortgages,tax credits Asset Management • 336 Developments, $326 million in loans • Over 20,000 units • $63 million in annual rent subsidies • Tools • Regular inspections and reports • Deferred maintenance loans • Tax credits and HOME Rental Rehab • FA and FAF savings Contract Services • Section 8 Contract Administration • Interagency Stabilization Group Monitoring • WWW.MHFA.STATE.MN.US • i