Minnesota Housing Capital Investment Overview

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Moris Curtis
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Mission: Minnesota Housing finances affordable housing for

1 Minnesota House Capital Investment Committee Minnesota Housing Capital Investment Overview February 21, Our Mission: Minnesota Housing finances affordable housing for low- and moderate-income households while fostering strong communities. 1

2 Presentation Summary Minnesota Housing Overview Housing Infrastructure Bonds General Obligation (GO) Bonds Need & Demand 3 Strategic Priorities Promote and support successful homeownership Preserve federally-subsidized rental housing Address specific and critical needs in rental housing markets Prevent and end homelessness Prevent foreclosures and support community recovery 4 2

3 Assistance Highlights in 2012 Served 63,000 households Provided $638 million for housing 78% of all renters assisted had an annual income under $20,000 54% of all homebuyers assisted had an annual income under $45,000 More than 2,300 first time homebuyers assisted, 23% households of color 5 Agency Overview Management and control of the Agency vested solely in the members of the Board by statute Operating budget NOT funded by state appropriations» 100% of state appropriations go to programs» Operating costs: $25.6 million (FY12)» Operating costs 3.21% of assistance provided Nearly all assistance provided through network of private delivery partners» Agency does not own or operate housing 6 3

4 2012 Capital Investment Appropriations $35.5 million in bonding for Minnesota Housing $30 million in housing infrastructure bonds to: Address affordable housing infrastructure needs in communities throughout the state Preserve existing federally subsidized rental housing Stabilize communities impacted by the foreclosure crisis Construct or acquire and rehabilitate supportive housing $5.5 million in General Obligation (GO) bonds for public housing preservation 7 What are Housing Infrastructure Bonds? Appropriation bonds for the public purpose of providing housing for low- and moderate-income families who are unable to afford adequate housing without assistance and to improve substandard housing conditions. Bonds are issued by Minnesota Housing. The state makes a standing appropriation for the term of the bonds.» Costs to the state of appropriation bonds are not materially different from GO Bonds Housing affordability must be maintained for at least the term of the bond (20 years) 8 4

5 2012 Selection Highlights Applications funded through a competitive application process 9 multifamily projects funded» 577 units» $27.6 million in housing infrastructure bond proceeds 5 Community Land Trusts receive $1.77 million for foreclosure remediation Will leverage more than $73 million in other financing 9 Map of 2012 Selections 10 5

6 Map of 2012 Selections 2/20/

7 2012 Housing Infrastructure Bond Selection Highlights CommonBond VA Housing, St. Cloud New construction of permanent rental housing Supportive housing for veterans who have experienced homelessness Received $3,920,380 in housing infrastructure bond proceeds / $2.3 million in other financing 35 units of affordable housing Incomes between 30% and 50% of Area Median income Housing Infrastructure Bond Selection Highlights Rochester Square Apartments Rehabilitation and preservation of affordable rental housing Received $4,082,305 in housing infrastructure bond proceeds / $6.2 million in other financing 104 units, 91% Project-Based Section 8 Families with incomes at or below 50 percent of Area Median Income 12 7

8 2012 Housing Infrastructure Bond Selection Highlights Two Rivers Community Land Trust Acquisition and rehabilitation of foreclosed homes in Washington County Received $380,000 in housing infrastructure bond proceeds Will acquire and rehabilitate 8 homes GO Bond Selection Highlights $5.5 million in GO Bond proceeds for publicly owned housing, used to:» Address health and safety issues» Replace and repair major systems» For energy conservation measures to reduce operating costs Will stabilize 950 units of public housing Leveraged $3 million in local and federal resources 14 8

9 2012 GO Bond Selection Highlights Glenwood Manor, Glenwood Housing and Redevelopment Authority Received $450,000 in GO Bond proceeds Rehabilitation of 30 units Focus on energy conservation:» Window Replacements» HVAC and boiler high efficiency upgrades 15 Need & Demand 33% of Minnesota Households pay more than 30% of their income for housing» 50% of renters pay more than 30% of income Minnesota Housing received 87 applications for multifamily developments in 2012» 39 applications were funded» Applications were for bond proceeds and other deferred financing» The Agencytypically receives 3-4 times as many applications for deferred financing as there are available resources» Minnesota Housing received 20 applications for GO Bonds and funded

10 For More Information Contact Commissioner Mary Tingerthal Tonja Orr Katie Topinka Sibley Street, Suite 300 St. Paul, MN * * TTY

Housing Assistance in Minnesota

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