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Serving the Underserved: Reducing Barriers to Homeownership
October 20, 2014Presented by: Michael Haley, Minnesota
Housing Assistant Commissioner, Single Family
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Our Mission:
Minnesota Housing finances affordable housing for low- and moderate-income households while fostering strong communities.
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Homeownership Disparity—Communities of Color and Hispanic Ethnicity
• Minnesota population growth—12% to 17%
• Entire projected growth to 2030
• Homeownership rate—76% vs 39%
• 3rd largest gap in the nation
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Planful Response
• Increase staff diversity and cultural competency• Establish production goals• Focused outreach and marketing• Program development emphasis• Lead industry wide initiatives
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Establish Production Goals
• Critical part of annual planning process
• Stretch goals• Accountability• Goals established and
met
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Focused Outreach and Marketing• Business Development
Representatives• Lender/Realtor outreach
and training• Community connections
and events• Welcoming
communications approach
• Partner Solutions Team
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Program Development Emphasis
• Standard business focus• Special assistance programs/pilots– Enhanced Financial Homeownership Capacity
Initiative– Targeted Mortgage Opportunity Program– Deferred Payment Loan Plus
• Program development with community input
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Enhanced Financial Capacity Homeownership Initiative
• Supplements comprehensive homebuyer training
• Focuses on basic financial capacity
• Seven community-based providers
• $1.3 million commitment
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Targeted Mortgage Opportunity Program
• Manually underwritten portfolio product• Community lenders• Homeownership Capacity “graduates”• “Manageable barriers”• $18 million commitment
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Deferred Payment Loan Plus
• Replaces HOME funded program• Separate application• Eligibility– Household of four or more– Front-end ratio > 28%– Single headed household with minor dependents– Household with disabled member
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Industry-wide Initiatives
• Emerging Markets Homeownership Initiative
• Homeownership Opportunity Alliance
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For More Information
Contact:
Mike [email protected]
Minnesota Housing651.296.8215 | 800-710-8871
www.mnhousing.gov
