Workforce Home

Ownership Minnesota

Invest in Opportunity

WHOM 2017 Supporters

• Third opportunity to present this proposal—growing support!

• Broad membership: 8 MN Land Trusts, 25 CAP Agencies, Northcountry Coop, PRG, Dayton’s Bluff Housing Services, Urban Homeworks, TC Habitat

• Good timing:

Spotlight on the need for affordable housing/homeownership

Well documented community struggles statewide to provide housing for essential workers

Rising property values - more difficult for low income households to purchase homes

Progressive ideas for Greater Minnesota

Invest in Opportunity:Workforce Home Ownership MN

WHOM Function• Established 2016 as separate & complementary fund with

MHFA

• Captures the annual growth in deed and mortgage registration taxes (estimated at $6—$10 million per year) to be invested in affordable homeownership

• Does not replace but adds to appropriated funds

• Sunsets in 10 years

Design

Homes for All Policy Committee Presentation

October 4, 2016

1. Brings balance. Vast majority of State funds spent in Minnesota to lower the cost of housing are spent on rental housing

2. Adds to pie. Delivers increase in funds for workforce home ownership without reducing funds for other housing programs

3. Rational nexus. Draws increased revenue from strengthening housing market to help low-income households access opportunity via home ownership

4. Shrinks homeownership gap. Provides a built-in mechanism for Minnesota to shrink its persistent homeownership gap between Caucasian households and households of color

5. Important part of affordable housing continuum. Affordable homeownership impacts education, health and other factors

Rationale

Minnesota’s Racial Homeownership Gap

2nd Worst in Nation

22%

41%

49%

56%

76%

Black

Hispanic

Native American

Asian

White

Minnesota homeownership rates

WHOM Member Demographics: FY 2015-2017

•953+ units developed statewide

•43% AMI average income served

•45% units purchased by households of color

WHOM Uses• Funds to nonprofits, cooperatives and community land

trusts

• Increase the supply of owner-occupied, workforce, affordable housing by paying for:

• Development costs

• Rehabilitation

• Land development

• New construction

• Storm shelters and community facilities for manufactured home communities

Eligibility

Annual Economic Impact

•730 Construction Jobs

•$3.5 M State Income/Sales Taxes

•$730 K Local Property Taxes

•$2.9 M Real Estate Commissions

WHOM at 2016 Legislature

• HF 3377 Fabian, Davids, Gunther, Clark, Marquart, Simonson, Slocum, Uglem, Kiel, Moran, Poppe, Johnson S. , Johnson C., Davnie, Mariani, Lohmer, Fenton

• SF 3167 Cohen, Tomassoni, Reinert, Koenen

• Strong bipartisan support

• $750,000 in one-time funding was passed

WHOM2016 Legislature

WHOM at 2017 Legislature• HF 1535: Fabian, Davids, Clark, Kiel, Marquart,

Anderson, P., Baker, Hamilton, Nelson, Schultz, Olson, Davnie, Pierson, Lohmer, Sauke, Johnson, C., Johnson, S., Metsa, Sundin, Rosenthal, Lee, Thissen

• SF 1497: Westrom, Senjem, Cohen, Dziedzic, Tomassoni

• Included on Homes for All Support List

• Worked to continue bipartisan support

• Educated and added additional supporters

WHOM2017 Legislature

WHOM Presentation Conclusion

Q & A