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Workforce Home
Ownership Minnesota
Invest in Opportunity
WHOM 2017 Supporters
• Third opportunity to present this proposal—growing support!
• Broad membership: 8 MN Land Trusts, 25 CAP Agencies, Northcountry Coop, PRG, Dayton’s Bluff Housing Services, Urban Homeworks, TC Habitat
• Good timing:
Spotlight on the need for affordable housing/homeownership
Well documented community struggles statewide to provide housing for essential workers
Rising property values - more difficult for low income households to purchase homes
Progressive ideas for Greater Minnesota
Invest in Opportunity:Workforce Home Ownership MN
WHOM Function• Established 2016 as separate & complementary fund with
MHFA
• Captures the annual growth in deed and mortgage registration taxes (estimated at $6—$10 million per year) to be invested in affordable homeownership
• Does not replace but adds to appropriated funds
• Sunsets in 10 years
Design
Homes for All Policy Committee Presentation
October 4, 2016
1. Brings balance. Vast majority of State funds spent in Minnesota to lower the cost of housing are spent on rental housing
2. Adds to pie. Delivers increase in funds for workforce home ownership without reducing funds for other housing programs
3. Rational nexus. Draws increased revenue from strengthening housing market to help low-income households access opportunity via home ownership
4. Shrinks homeownership gap. Provides a built-in mechanism for Minnesota to shrink its persistent homeownership gap between Caucasian households and households of color
5. Important part of affordable housing continuum. Affordable homeownership impacts education, health and other factors
Rationale
Minnesota’s Racial Homeownership Gap
2nd Worst in Nation
22%
41%
49%
56%
76%
Black
Hispanic
Native American
Asian
White
Minnesota homeownership rates
WHOM Member Demographics: FY 2015-2017
•953+ units developed statewide
•43% AMI average income served
•45% units purchased by households of color
WHOM Uses• Funds to nonprofits, cooperatives and community land
trusts
• Increase the supply of owner-occupied, workforce, affordable housing by paying for:
• Development costs
• Rehabilitation
• Land development
• New construction
• Storm shelters and community facilities for manufactured home communities
Eligibility
Annual Economic Impact
•730 Construction Jobs
•$3.5 M State Income/Sales Taxes
•$730 K Local Property Taxes
•$2.9 M Real Estate Commissions
WHOM at 2016 Legislature
• HF 3377 Fabian, Davids, Gunther, Clark, Marquart, Simonson, Slocum, Uglem, Kiel, Moran, Poppe, Johnson S. , Johnson C., Davnie, Mariani, Lohmer, Fenton
• SF 3167 Cohen, Tomassoni, Reinert, Koenen
• Strong bipartisan support
• $750,000 in one-time funding was passed
WHOM2016 Legislature
WHOM at 2017 Legislature• HF 1535: Fabian, Davids, Clark, Kiel, Marquart,
Anderson, P., Baker, Hamilton, Nelson, Schultz, Olson, Davnie, Pierson, Lohmer, Sauke, Johnson, C., Johnson, S., Metsa, Sundin, Rosenthal, Lee, Thissen
• SF 1497: Westrom, Senjem, Cohen, Dziedzic, Tomassoni
• Included on Homes for All Support List
• Worked to continue bipartisan support
• Educated and added additional supporters
WHOM2017 Legislature
WHOM Presentation Conclusion
Q & A
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