Presentation Title

• Date z

Community

Homeownership

Impact Fund*

Technical

Assistance

May 30, 2013 *program formerly known as CRV

Today’s Speakers

• Minnesota Housing

Luis Pereira

Nancy Slattsveen

Eric Thiewes

Jessica Deegan

Hal Clapp (GMHF)

Agenda

• Overview of 2013 application updates

• Available funds, and other available funds Economic Development and Housing Challenge funds

Metropolitan Council; Greater Minnesota Housing Fund

• Funding uses and application materials New! General Application and Activity-specific sections

• Selection Standards and Funding Priorities

• Application Tips and Required documents

• Impact Fund program link to a Community Fix-Up Initiative

Application Materials Key Dates and Details

• SF RFP Application Deadline (received by

Minnesota Housing on or before)

July 11, 2013 at 12:00 NOON.

• Electronic upload RFP (Box.com) PLUS mail 1 original

Available Funds Based on Approval by Legislature

Minnesota Housing: • $14.2 million

- Challenge Fund (SF / MF) *

• Of the $14.2 million, $1.2 million

Indian Housing (SF / MF)

• Of the $14.2 million, special priority for

Housing and Job Growth Initiative (SF /

MF)

• $780,000

0% and 2% Interim Construction

Financing (SF only)

*includes funds for LAAND

Metropolitan Council

• $1.5 million • Local Housing Incentive

Account (SF & MF)

Greater Minnesota

Housing Fund

• $400,000 • Re-Building Better

Neighborhoods (SF only)

Tentative Available Funds

Tentative Available Funds

Minnesota Department of Corrections:

• Institution Community Work Crew (ICWC)

Affordable Housing Building Program - provides interest-free, interim construction financing to nonprofit entities in certain locations.

Contact Terry Byrne at: 651-361-7127 or Terry.Byrne@state.mn.us

Minnesota Housing’s

2013 Income Limits •Maximum – 115% of statewide or area median household income

•Majority of units serve 80% of AMI or less

•Effective for Impact Fund closed/completed units on or after 4-21-13

Funding partners’ program income limits vary

Gross

Household

Income

Limits

Twin Cities

11-County

Metro

Rochester

MSA Rice County

Balance of

State

60% $49,500 $48,300 $44,600 $44,400

80% $66,000 $64,400 $59,500 $59,200

100% $82,400 $80,500 $74,300 $74,000

115% $94,700 $92,500 $85,400 $85,100

Community Homeownership Impact Fund Forms of Assistance

• Interim financing (0% or 2%)

rehabilitation / new construction • 0% must be innovative /

visitability requirements

• Grant – value gap

• Deferred loan – affordability

gap

Interim Financing

• $780,000 available for single-family

• Pair with primary construction lender

Use to lower LTV Ratio with primary construction

lender

• No prepayment penalty

• Combine construction financing with value gap

• Projects should be near construction ready

• Interest will start to accrue when funds are

disbursed until repaid.

Value Gap Grant

Difference between fair market sales (or Appraisal) and total development cost of home

Total Development Cost $150,000

Fair Market Sales Price $135,000

Value Gap $15,000

Affordability Gap Deferred loans

Difference between Fair Market Sales Price (or Appraisal) and end buyer mortgage

(based upon household annual income and the buyer’s ability to pay)

Fair Market Sales Price $150,000

Buyer’s First Mortgage Amount -$138,800

Affordability Gap $11,200

Affordability Gap Deferred loans

• Recommended minimum housing ratio, 28%

• Due on sale, refinance, end of mortgage term or if the borrower no longer occupies the property

• Minnesota Housing provides legal documents to the Administrator for borrower to sign at closing

• Administrator records mortgage documents and assigns mortgage to Minnesota Housing for servicing

• NOTE! We have updated our deferred loan documents and are located on the Impact Fund website

Affordability Gap Tips

• Be aware of community second mortgage guidelines Fannie, Freddie, government-insured products such as

FHA, VA, RD

• Consult with a lending partner

• If additional deferred mortgage funding is involved that has different terms, use the more restrictive guidelines (e.g. Housing ratio or DTI)

• For-profits should have a non-profit processing entity to effectively use community seconds

What Special Niche does your

proposed program provide?

• Are there other local, or Minnesota Housing programs available to meet the same housing activity needs?

Down payment assistance: Programs available from Minnesota Housing (Deferred Payment loans, Monthly Payment loans and Home Help loans)

Owner-occupied rehabilitation: Fix Up & Community Fix Up Programs and, for very low income borrowers, the Rehabilitation Loan Program (new funds

available fall 2013).

Housing and Job Growth

Initiative funding • A pre-recorded technical assistance module

has been posted at the Impact Fund website:

• http://www.mnhousing.gov/wcs/Satellite?c=Page&cid=1358906164357&pagename=External%2FPage%2FEXTStandardLayout

- Click on Training

Hold for Speaker Transition

• Minnesota Housing

Nancy Slattsveen

Application Materials and

Resources

Application Materials Dates and Details

• SF RFP Application Deadline (received by

Minnesota Housing on or before)

July 11, 2013 at 12:00 NOON.

• Electronic upload RFP (Box.com) PLUS mail 1 original

• Award Decisions Special Minnesota Housing Board

Meeting on November 7, 2013

• Selection Notification Within 20 working days of Board

approval

Community Homeownership Impact Fund

Application Materials

• Consolidated Application Guide and Instructions

• Program Concepts

Request for Proposal (RFP)

• General Application and Workbook

• Housing Activity Sections and Workbooks

+ Acquisition- Rehabilitation –Resale

+ Affordable Gap/Downpayment

+ LAAND

+ New Construction/Demolition/Rebuild

+ Owner-Occupied Rehabilitation

+ Greater Minnesota Housing Fund Chart

+ Metropolitan Council Form

+ Department of Corrections Information • If applicable, complete the CLT supplemental

Application or Housing Co-op Supplement.

Selection Standards Organizational Capacity

• Housing experience with similar projects

• Partners

• Role

• Performance

Organization Capacity and Review Form

• Form is required by Non-governmental organizations.

• Government Agencies and Tribal Governments are not required to complete the form.

• To be completed by your organization’s Finance Manager, Accountant or Executive Director.

• Required Attachment: Financial Statement

• Purpose: To help Minnesota Housing and co funders assess whether your organization is likely to need additional TA to properly administer funds.

Selection Standards Project Feasibility

• Degree of development readiness

• Sources and uses

• Alignment of housing strategy to maximize impact Analyze housing-market and Community Profile data and assess the

housing and community needs in the target area;

Identify the community needs that the applicant is trying to meet in relation to Minnesota Housing’s funding priorities; and

Explain why the target area is in need of housing investments and how and why the proposal/project is the most appropriate for fulfilling those needs

Strategic Funding Priorities and

Legislative Requirements

• Foreclosure Remediation*

• Community Recovery*

• Minimizing Transportation costs and promoting access to transit*

• Economic Integration*

• Leverage

• Serving Eligible/Underserved Populations (formerly marketing)

• Efficient land use

• Others

Long term affordability Site and design features

* Methodology document

Foreclosure Remediation

Acquire and / or Rehabilitate

A foreclosed property or redeveloped vacant land involved in a foreclosure action

In a Foreclosure Priority Area zip code

(158 zip codes)

Elsewhere if the three-year (2010,

2011, 2012) sheriff-sales rate for the

target area at least 7.5% in Twin Cities

or 5% in GR MN (target area must

contain 200 residential parcels)

A property

In a Foreclosure Priority Area zip code

What is considered a foreclosed

property?

• Property’s current delinquency status is at least 60 days delinquent by the Mortgage Bankers of America delinquency calculation and owner has been notified of this delinquency

or • The property owner is 90 days or more delinquent on tax

payments

or

What is considered a foreclosed

property?

• Under state, local, or tribal law, foreclosure proceedings have been initiated or completed

or • Foreclosure proceedings have been completed and title has

been transferred to an intermediary aggregator or servicer that is not an NSP grantee, subrecipient, contractor, developer or end user

Community Recovery

Communities with lower median household incomes, older housing stock, and higher than average declines in home sales prices are likely to need public investment to recover. To be eligible for community recovery priority, census tracts must achieve two of three criteria:

• Significant Price Declines since peak (~2007)

• Lower Median Incomes by region

• Older Housing Stock by region (higher % built before 1950)

Minimizing Transportation Costs Seven County Metro Area

• ½ mile radius of a completed or planned LRT, BRT, or commuter rail station

• Within ¼ mile of a fixed route stop on Metro Transit’s Hi-Frequency Network

• ¼ mile of a high service public transportation fixed route stop

• ½ mile of an express bus route stop

• ½ mile of a park and ride

Minimizing Transportation Costs Greater Minnesota

• 1/4 mile radius of a public transportation fixed route stop (includes express bus routes & park and ride stations)

• Within a census tract that is within 5 miles of 2,000 low and moderate wage jobs for urban census tracks, or within 5 miles of 5,000 low and moderate wages jobs for rural census tracks and meets both of the following:

located within 1/2 mile of at least four different types of facilities

and

has access to dial-a-ride services during standard workday hours.

Refer to Community Profile Data

Minimizing Transportation Costs Greater Minnesota

Economic Integration

• Locating the proposed housing activity in a high income census tract close to low and moderate wage jobs.

-First Tier (40th percentile but less than 80th percentile)

-Second Tier (80th)

Leverage

• Leverage is a Critical Requirement!

More leverage, more likely to be funded, illustrates applicant has a viable program

• Project specific versus other leverage in support of your organization

• Regulatory leverage

• Types of Leverage

In kind

Philanthropic, Government, Business Contribution

• Separate leverage by activity type (see workbook)

Serving Income-Eligible and/or

Underserved Populations

• Considerations

Do you know your market?

Are the techniques used reasonable?

Is there information submitted supporting the proposed marketing need?

Are the housing renovations or designs suitable for the needs of potential homeowners?

Hold for Speaker Transition

• Minnesota Housing

Eric Thiewes

Additional Application Factors

• Partnerships in the community (realtors; local government; lenders; local contractors; homebuyer educators; etc.)

• Cooperatively Developed Plan

• Development readiness

• Cost containment

• Underwriting

• Use supporting programs/resources well

• Consistent information within application

Narrative / Charts / Financial Worksheet

What is a Cooperatively Developed Plan?

A community-supported plan that:

1. Encompasses multiple affordable housing and related service initiatives; that is

2. In a geographically defined area that is developed through the cooperation and input of a city or county (or instrumentality thereof) or a regional unit of government; and

3. One or more of the following entities: a neighborhood group or community group;

housing providers; and/or

housing funders.

See Jobs-Housing Initiative for CHIF Recorded Training - 5.21.2013

Development Readiness

• Is your project “shovel-ready”

Have you acquired the land for development or property to be rehabilitated?

Do you have building designs in mind?

Do you have a target population?

• Do you have a easily-generated pipeline of interested homeowners or homebuyers? Or maybe you have a waiting list?

• Do you have marketing plans?

Cost Containment

• Controlling Costs

• How efficient is your organization or proposal?

Underwriting

• What underwriting requirements does your program have in place?

• How do you calculate the amount of funds provided to homebuyers/homeowners?

• Is the amount of assistance based on household need?

Additional Required Documentation

• General & Activity-specific workbooks

• Updated 2012 Impact Fund Annual Report(s) (if applicable)

• Staff Qualifications

• Organization Capacity and Review Form / Attachments

• Property/Site Information (typical)

• Target area maps (Census/neighborhood)

• Strategic priority maps (e.g., Foreclosure; Transit service, etc.)

• Evidence of Leverage – Commitment Letters

• Underwriting Policy/Practices/Procedures

• Marketing

• Green Documentation (New Construction; Acq/ Rehab proposals only)

Green Communities Requirements

• New construction and acquisition-rehabilitation-resale activities

Green Communities Design Criteria

2011 Green Communities Criteria

2011 MN Overlay

Submit Intended Methods form along with application

2011 Green Waiver Request Form (if applicable)

Green Communities Training

• Recorded technical assistance module will be posted at the Impact Fund website:

http://www.mnhousing.gov/wcs/Satellite?c=Page&cid=1358906164357&pagename=External%2FPage%2FEXTStandardLayout

Click on “+ Training”

• Eric Thiewes and Luis Pereira, Impact Fund staff have provided this module

• Module is directed towards Single Family RFP applicants or previously-funded CRV administrators only.

COMMUNITY PROFILES

Data for your application

Data Layer Themes Census Tract and County

Economy and Workforce

• Total Jobs

• Change in Jobs 2005-2010

• Median Distance to Work

• Unemployment Rate

Household Demographics

• Age of Population

• Population from Communities of Color

• Total Households

• Change in Households

• Cost Burdened Households

• Median Income

• Homeless Population

• Poverty Rate

Homeowner Housing Market

• Homeownership Costs

• Homeownership Rate

• Foreclosures

• Age of Housing

• Share built by year

• Home Sales Price

• Change in Home Sales Price

Rental Housing Market

• Median Rent

• Subsidized Vacancy Rate

• Age of Housing

• Share built by year

• Number of rental units by size of structure

• Number of Rental Units by Bedroom Size

RFP Geographic Priority Areas

Available in the Profiles

•Moderate to high income areas close to job Economic Integration

•Proximity to transit, hi frequency network, and bus service

Access to Transportation

•Areas with a high rate of foreclosure relative to the state

High Need Foreclosure Areas

•Cities with job growth (or top job communities) and 5 or 10 mile buffer Workforce Housing

•Jobs & Household growth

•Cost Burdened Renters

Preservation

•Job Growth Areas

•Long Distance Commuters

Jobs+Housing Initiative

Find at: www.mnhousing.gov

DEMO

Application Tips

• Double check financial worksheet in Workbook /application narrative information.

• Use the Checklist

• Attachments—provide “sample” information for scopes of work, etc.

• AND…..

Don’t forget to email

To request that an account be created for you to

upload your application on Box.com!

and/or

eric.thiewes@state.mn.us luis.pereira@state.mn.us

Selection Process and Scoring

• Strategic Funding Priorities

Reviewed and scored by staff

• Selection Standards

Reviewed, discussed, scored by selection committee members

Minimum score required to receive funding

RFP Point Allocation

• Approved by MN Housing board on May 23 Point allocation will be available on

the Impact Fund website

• Key priorities are those highlighted before

• Organizational Capacity and Project Feasibility are very important selection standards

Post-Award Information

• Board Meeting

• Debriefings available for non-funded applicants Contact Minnesota Housing

staff

• Impact Fund contracts

• Disbursement process

• Reporting/monitoring

Other Recorded Webinars

• Green Communities Requirements

• Housing and Jobs Growth Initiative

• Community Fix Up Loan Program and option to link with the Impact Fund (write-down of Fix Up loan interest rate)

Hold for Speaker Transition

• Minnesota Housing

Luis Pereira

Improving homes with Minnesota

Housing’s Fix Up Loan

Includes options for unsecured and secured loans

Affordable fixed rates and repayment terms (10-20 years)

Secured loans up to 110% of after-improved value

Loans from $2,000-$50,000

Maximum eligible household income of $96,500!

Community Fix Up program &

partnership • Program has the same benefits/features of Fix-Up Fund

⁻ slightly reduced interest rate

• An approved lender and a community partner team up in a partnership to provide services and/or funds in conjunction with Fix Up loans to further increase affordability and provide an incentive for homeowners’ home improvement projects.

⁻ The approved lender originates these loans.

⁻ The community partner provides value-added contributions to the loan

Recorded module about how-to combine these programs: https://www1.gotomeeting.com/register/496976488

Using Impact Fund resources in

a Community Fix-up Partnership

Impact Fund dollars and goals can be linked to Fix Up/Community Fix Up loans

Serve more homeowners – enhance the success of your housing preservation goals

Impact Fund dollars can be used for interest rate write-downs on Community Fix Up “discount loans” – when leveraged with additional resources

Fix-up Fund staff can facilitate partnerships with lenders and Community Fix Up initiatives

Recorded module about how-to combine these programs: https://www1.gotomeeting.com/register/496976488

RFP Assistance

• Luis Pereira 651.296.8276 luis.pereira@state.mn.us

• Nancy Slattsveen 651.296.7994 nancy.slattsveen@state.mn.us

• Eric Thiewes 651.296.6527 eric.thiewes@state.mn.us

Co-Funder Program

Information • Department of Corrections – Terry Byrne

terry.byrne@state.mn.us

651-361-7127

• Greater Minnesota Housing Fund – Hal Clapp hclapp@gmhf.com

651-221-1997

• Metropolitan Council – Linda Milashius Linda.milashius@metc.state.mn.us

651-602-1541

Fix Up and Community Fix Up

program contacts

• Link to program page:

http://www.mnhousing.gov/wcs/Satellite?c=Page&cid=1358906132763&pagename=External%2FPage%2FEXTStandardLayout

• For more information on or to receive application materials to become a Fix Up

Lender or apply for a Community Fix Up initiative, please contact: Cal Greening Cal.Greening@state.mn.us Robert Russell Robert .Russell@state.mn.us

Thank You!

Minnesota Housing Community Homeownership Impact Fund

(the Impact Fund – fka CRV)

Tuesday, May 28, 2013 – 9:30 PM – 11:30 AM CDT

-Welcome-

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