Transcript Overview of Consolidated RFP Recomendations

Presented to
Legislative Commission to End Poverty
Minnesota Housing
Agency Overview
December 5, 2007
Presentation Summary
• Mission
• Strategic Priorities
• Program Delivery
•Preventing Homelessness and Supportive Housing
• Family Homeless Prevention
• Housing Trust Fund
• Bridges
• Minnesota’s Housing Record and Current Challenges
2
Minnesota Housing’s Mission
Minnesota Housing finances and
advances affordable housing
opportunities for low and
moderate income Minnesotans
to enhance quality of life and
foster strong communities.
3
Minnesota Housing Strategic Priorities
• Finance New Affordable Housing
Opportunities
• Preserve Existing Affordable Housing
• End Long-Term Homelessness
• Increase Emerging Market
Homeownership
4
Minnesota Housing Program Delivery –
Five Program Activity Areas
• Preventing Homelessness and
Supportive Housing
• Development / Homes for Working
Families
• Homeownership Loans
• Preservation
• Resident and Organizational Support
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Minnesota Housing Program Delivery - Preventing
Homelessness and Supportive Housing
• Three programs: Family Homeless Prevention,
Housing Trust Fund, Bridges
• Provides rental assistance, temporary
assistance to resolve a housing emergency,
and financial assistance with the capital costs
of rental housing for very low income
households
• Median annual incomes of household served
are under $10,000
• Delivered through local HRAs, CAPs,
counties, for-profit and non-profit developers
6
Minnesota Housing Program Delivery - Preventing
Homelessness and Supportive Housing 2008-2009
• Family Homeless Prevention - $15 m to provide
assistance to households facing a crisis that is likely to
result in homelessness and to households who are
homeless to move them into permanent housing as
quickly as possible
• Housing Trust Fund – $6m to sustain commitments
already made for rental assistance and to provide
additional housing opportunities
• Bridges - $4m to increase the number of persons
served with rental assistance who have mental health
problems
• State Appropriated Programs are 9.4% of the
Agency’s Budget and provide the most flexibility
to meet the needs of the lowest income
Minnesotans.
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Minnesota Housing Program Delivery –
Targeting of Resources to Those with the Greatest
Housing and Related Challenges
Percentage of Total Households Served, FFY 2006
Incomes
5%
9%
11%
41%
Under $9,000
$10,000 - $20,000
$20,000 - $30,000
34%
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$30,000 - $40,000
Over $40,000
Minnesota’s Housing Record –
Minnesota Income Comparisons
Income
Comparisons
MN Family Investment Program
$10,716
Renters
Poverty Level (Household of 4)
$10,958
$20,000
First Time Home Buyers
$37,415
Homeowners (Rehab loans)
$49,756
HUD Non-Metro Median
HUD 60% of HUD Median Income,
Statewide
HUD 60% of HUD Median Income,
Mpls/St. Paul
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Minnesota Housing
Median Household
Income, 2006
$55,100
$40,920
$54,165
HUD Median Income, Statewide
$68,200
HUD Median Income, Mpls/St. Paul
$78,500
Minnesota’s Housing Record - Emerging Markets
Homeownership Initiative, Goals
Minnesota Emerging Markets
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Homeownership
Rate, 2000
Activity,
2003
Ownership
Rate, 2004
Annual
Goal
Homeownership
Rate in 2012
Goal
42%
3,598
46%
4,962
58%
• White homeownership rate = 79.2%
• Homeownership gap = 33%
• Minority homeownership rate = 45.7%
• 5th worst in the nation
Housing Trends and Challenges Declining Affordability in Mpls-St. Paul
Ratio of Median House Price to Median Household Income: 1994-2005
4.0
3.5
3.0
3.3
2.5
2.5
2.7
2.4
2.3
2.4
2.2
1995
1996
1997
1998
2.5
2.4
1999
2000
3.4
3.5
2004
2005
2.9
2.0
1.5
1.0
0.5
0.0
1994
2001
2002
2003
Sources: Joint Center for Housing Studies analysis of National Association of Realtors, Metropolitan Area Existing SingleFamily Home Price; Freddie Mac, Conventional Mortgage Home Price Index; Moody's Economy.com Median Household
Income Estimates.
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Housing Trends and Challenges – Jobs, Housing,
Transportation Mismatch Affects Healthcare and Food
Budgets for Families
Average family with Children Monthly Expenditures - $2000-$2500 (2003)
$202
$114
$148
$67
$407
$449
$94
$41
$357
$145
$276
Personal Insurance
and Pensions
Healthcare
$407
Food
Transportation
Housing
Less
than
30%
12
30 50%
50%
and
Over
Source: Joint Center for Housing Studies tabulations of the BLS Consumer Expenditure Surveys.
8
7
6.7
7.1
6
5
6
5.1
4.7
$850
$848
4
3
$843
$840
2
1
0
2002
2003
2004
Vacancy
12
$871
2005
Average Rent
Source: GVA Marquette Advisors, 4th Quarter 2006, Apartment Trends
2006
$875
$870
$865
$860
$855
$850
$845
$840
$835
$830
$825
$820
Average Rent
Vacancy Rate (Percentage)
Housing Trends and Challenges –
Rental Market is Tightening
Housing Trends and Challenges –
Confronting Today’s Foreclosure Crisis,
Identifying Hot Spots
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Housing Trends and Challenges - Affordable
Housing Needs Continue into the Next Decade
Affordable Housing Need in the
Twin Cities in 2011-2020 That Will
Consume Land
• 166,547 new households expected
• 64,100 new low-income households
expected
• 25,800 units of affordable housing that
the private market will provide to new
low-income households
• 51,000 net need for land-consumptive,
newly-constructed, affordable housing
units
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For More Information Contact
Cherie Shoquist
651.297.3120
[email protected]
400 Sibley Street, Suite 300
St. Paul, MN 55101
651-296-7608 * 800-657-3769 * TTY 651-297-2361
www.mhfa.state.mn.us
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Minnesota’s Business Plan to
End Long-Term Homelessness
Legislative Commission to End Poverty
December 5, 2007
People experiencing
Long-Term Homelessness







57 % have mental illness.
34% have a chemical dependency problem.
25% have dual diagnosis (MI and CD).
15% are veterans.
11% have a history of being victimized by domestic
violence (34% of females).
36% have a history of prior incarceration.
39% report possible brain injury.
(2006 survey data from Wilder Research)
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Business Plan Background

Developed in 2003, recalibrated in 2007, based on Wilder data


Single strategy: develop 4,000 new housing opportunities for
households experiencing long-term homelessness
Now part of Heading Home Minnesota, an unprecedented,
Innovative, coordinated partnership of public, business, nonprofit,
philanthropic, and faith communities

Heading Home Plans include Southeast MN, Hennepin, Ramsey, St.
Louis County

Heading Home Governance includes Executive Team of plan
leaders; Steering Committee of faith, philanthropic and business
leaders; and Advisory Council of community leaders.
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Financing Plan Estimate (2004-2010)
(in millions) (Revised)
A unique effort to estimate over time the costs of housing
and support services from multiple funding sources.
Sources
2004 2007
Costs/Uses
2004
2007
Identified Sources:
State General Obligation Bonds
$90
$77
New Construction
$85
$87
Minnesota Housing
State Appropriated Programs and
Agency Resources
$90
$96
Acquisition and Rehabilitation
$125
$88
Private Tax Credit Equity
(Minnesota Housing allocation)
$60
$60
Units Integrated into
Mixed-Income
Developments
$50
$85
Department of Human Services
$120
$88
Rental/Operating Assistance
$100
$77
Remaining Sources:
Federal Government
Local Government
State Departments
Philanthropic/Nonprofit/Other
$180
$162
Services/
Income Supplements
$180
$146
Total
$540
$483
Total
$540
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$483
1,661 Housing Opportunities
Funded Through 11/30/07
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People housed after
experiencing LTH
Of 662 households (1,320 individuals):

2/3 report a disability (45% mental illness, 17% dual diagnosis,
16% alcohol abuse)

57% are people of color (38% African American,16% American
Indian)

78% are in Twin Cities metro area (22% in Greater Minnesota)
Of 249 households who left housing, 40% went to a permanent
living situation; 35% had a rental subsidy or are living in Public
Housing.
Of those currently in housing (620 households), 36% have
maintained housing for more than a year
(Data on people housed from HMIS, FY07 annual report)
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State Budget Decisions
2005 through 2007
Based largely on the Governor’s budget, the Legislature has
approved bonding and appropriated funds to support the
Business Plan:
 $31.5 million – Bonding for supportive housing (2005 and 2006)
 $13.5 million to Housing Trust Fund (at Minnesota Housing) for capital,
operating costs, and rental assistance ($5m in 1-time funding)
 $12 million to DHS for Supportive Services Fund ($2 million in 1-time)
 $2.3 million for foster care transition
 $2.7 million to DOC for transitional housing
 $7.5 million for Family Homeless Prevention and Assistance
 $2 million for Bridges rental assistance
 $750,000 to DHS for transitional housing (1-time)
 $1.6 million to DOC for 3 re-entry projects
 $2.7 million for Group Residential Housing (GRH)
 $3.25 million to DHS for mental health housing support
 $700,000 for outreach grants through DPS
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For more information, contact
Laura Kadwell
Minnesota Director for Ending
Long-Term Homelessness
[email protected]
651-284-0079
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