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October 20, 2014 Serving the Underserved: Reducing Barriers to Homeownership Presented 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% 3 rd 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 Haley [email protected] Minnesota Housing 651.296.8215 | 800-710-8871 www.mnhousing.gov