1 Serving the Underserved: Reducing Barriers to Homeownership October 20, 2014 Presented by: Michael Haley, Minnesota Housing Assistant Commissioner, Single Family

2 Our Mission: Minnesota Housing finances affordable housing for low- and moderate-income households while fostering strong communities.

3 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

4 Planful Response Increase staff diversity and cultural competency Establish production goals Focused outreach and marketing Program development emphasis Lead industry wide initiatives

5 Establish Production Goals Critical part of annual planning process Stretch goals Accountability Goals established and met

6 Focused Outreach and Marketing Business Development Representatives Lender/Realtor outreach and training Community connections and events Welcoming communications approach Partner Solutions Team

7 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

8 Enhanced Financial Capacity Homeownership Initiative Supplements comprehensive homebuyer training Focuses on basic financial capacity Seven community- based providers $1.3 million commitment

9 Targeted Mortgage Opportunity Program Manually underwritten portfolio product Community lenders Homeownership Capacity “graduates” “Manageable barriers” $18 million commitment

10 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

11 Industry-wide Initiatives Emerging Markets Homeownership Initiative Homeownership Opportunity Alliance

12 For More Information Contact: Mike Haley Minnesota Housing |