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

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

3. 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. 4 Planful Response Increase staff diversity and cultural competency Establish production goals Focused outreach and marketing Program development emphasis Lead industry wide initiatives

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

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

7. 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. 8 Enhanced Financial Capacity Homeownership Initiative Supplements comprehensive homebuyer training Focuses on basic financial capacity Seven community- based providers $1.3 million commitment

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

10. 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. 11 Industry-wide Initiatives Emerging Markets Homeownership Initiative Homeownership Opportunity Alliance

12. 12 For More Information Contact: Mike Haley Mike.haley@state.mn.us Minnesota Housing 651.296.8215 | 800-710-8871 www.mnhousing.gov