Stakeholder Input Requested to Develop 2015 Affordable Housing Plan
To help Minnesota Housing develop an effective Affordable Housing Plan (the Agency’s annual business plan), the Agency seeks input from partners and stakeholders. Prior to providing feedback, the Agency asks partners and stakeholders to review three documents:
- Minnesota Housing's 2013-15 Strategic Plan (the Agency’s guiding document)
- The 2014 Affordable Housing Plan (the business plan currently being used)
Minnesota has significant affordable housing needs and limited resources. The Agency expects funding levels in the 2015 plan to be similar to the levels in the 2014 plan. In addition, Minnesota Housing needs to address the full spectrum of affordable housing needs across the state for a wide range of low- and moderate-income households. The Agency must address immediate needs and maintain the long-term financial stability of the Agency. Consequently, budgeting decisions involve careful assessment and planning.
As you review these documents, please consider the following questions:
- What activities funded in the 2014 AHP are your highest priorities?
- Using the 2014 AHP as the starting point, are there affordable housing needs to which you think Minnesota Housing should shift additional resources? Why? What specific changes would be needed? If you are suggesting that the Agency increase resources for a program or area, please identify the programs or areas from which those resources should be taken and explain why.
Overriding Funding Restrictions
Keep in mind that not all funds are interchangeable. Federal and state requirements and investor expectations dictate the purpose and use of funds.
- Federal Resources and State Appropriations (including funds from the bonding bills) - Federal and state laws and regulations set the amount, purpose, and use of these funds – typically setting specific amounts for specific programs and activities. With respect to federal HOME funds, there is some flexibility in how the Agency can use the funds, but program requirements make many potential uses impractical.
- Agency Bond Proceeds and Other Mortgage Capital - These funds can only be used to support amortizing loans for the purchase or refinancing of single-family homes or affordable rental properties.
- Housing Investment Fund (Pool 2) - Based on Minnesota Housing board policy (which is determined by rating agency and investor expectations), the Agency can only use these funds for investment-quality amortizing loans. While the availability of these funds is limited, the Agency is currently in a position to increase their use if quality opportunities arise.
- Housing Affordability Fund (Pool 3) - These Agency funds can be used for grants and zero-interest deferred loans. Consequently, they are in high demand, and the supply is limited.
For more guidance, please refer to: (1) Table 2 on pages 6-7 of the 2014 AHP for a program and funding overview, (2) Appendix A (right after page 31 of the AHP) for a break out of the funding sources for each program, and (3) Appendix B for more details on each program.
For more information
If you have questions about the AHP, Strategic Plan, or the Key Market Trends for Housing, please contact John Patterson (Director of Planning, Research & Evaluation) at 651.296.0763 or email@example.com.
Comments are due by 5:00 p.m. on Friday, May 9, 2014. Submit comments to: firstname.lastname@example.org.
Once public comments have been received and assessed, Minnesota Housing will develop and release a draft 2015 AHP in August, which will include a webinar presentation. Partners and stakeholders will have two weeks to comment on the draft AHP.