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$100 million for affordable housing

Published (3/20/2009)
By Sue Hegarty
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Affordable housing advocates seek multi-millions of dollars to provide additional affordable housing opportunities across the state.

Sponsored by Rep. Karen Clark (DFL-Mpls), HF1354 would give the Minnesota Housing Finance Agency authority to issue up to $100 million in nonprofit housing bonds to local governments and 501(c)(3) nonprofit organizations. Grantees could then acquire land for, or to construct, affordable rental housing units.

The agency might also provide grants to public land trust agencies, such as the City of Lakes Community Land Trust, which has provided homes for 650 families.

Under these programs, homebuyers receive counseling to help them manage and understand their mortgages, insurance policy and closing documents. Recipients own the home but not the land it sits upon. They are able to resell the home and receive a small percentage of the profit. The majority is reinvested in the land trust program, said Jeff Washburn, director of the City of Lakes Community Land Trust program.

The House Housing Finance and Policy and Public Health Finance Division held the bill over March 17 for possible inclusion in its omnibus bill. A companion, SF1382, sponsored by Sen. David Tomassoni (DFL-Chisholm), is scheduled to be heard March 20 by a Senate housing subcommittee.

Rural Minnesota agencies also provide similar support services, including help for foreclosures. First Homes, sponsored by the Rochester Area Foundation, manages nearly 200 homes within a 30-mile radius of the city.

“In Minnesota, we have towns like Mankato, Albert Lea, Austin, Northfield, Chatfield and Le Center that have their own serious foreclosure issues right now. Because those communities haven’t received (Neighborhood Stabilization Funds), I think it’s important to note that those cities don’t have any subsidies available to do work in remediation for foreclosures,” said Sean Allen, First Homes director.

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