Presentation Summary 2 Mission Strategic Priorities Program DeliveryPreventing Homelessness and Supportive Housing Family Homeless Prevention Housing Trust Fund Bridges Minnesotas Housing Record and Current Challenges

Minnesota Housing finances and advances affordable housing opportunities for low and moderate income Minnesotans to enhance quality of life and foster strong communities.

Minnesota Housings Mission3

Minnesota Housing Strategic PrioritiesFinance New Affordable Housing OpportunitiesPreserve Existing Affordable HousingEnd Long-Term HomelessnessIncrease Emerging Market Homeownership 4

Minnesota Housing Program Delivery Five Program Activity AreasPreventing Homelessness and Supportive HousingDevelopment / Homes for Working FamiliesHomeownership LoansPreservationResident and Organizational Support5

Minnesota Housing Program Delivery - Preventing Homelessness and Supportive HousingThree programs: Family Homeless Prevention, Housing Trust Fund, BridgesProvides rental assistance, temporary assistance to resolve a housing emergency, and financial assistance with the capital costs of rental housing for very low income householdsMedian annual incomes of household served are under $10,000Delivered through local HRAs, CAPs, counties, for-profit and non-profit developers6

Minnesota Housing Program Delivery - Preventing Homelessness and Supportive Housing 2008-2009Family Homeless Prevention - $15 m to provide assistance to households facing a crisis that is likely to result in homelessness and to households who are homeless to move them into permanent housing as quickly as possibleHousing Trust Fund $6m to sustain commitments already made for rental assistance and to provide additional housing opportunitiesBridges - $4m to increase the number of persons served with rental assistance who have mental health problemsState Appropriated Programs are 9.4% of the Agencys Budget and provide the most flexibility to meet the needs of the lowest income Minnesotans.

7

Minnesota Housing Program Delivery Targeting of Resources to Those with the Greatest Housing and Related Challenges Percentage of Total Households Served, FFY 20068

Minnesotas Housing Record Minnesota Income Comparisons9

Minnesotas Housing Record - Emerging Markets Homeownership Initiative, Goals White homeownership rate = 79.2% Minority homeownership rate = 45.7%Minnesota Emerging Markets Homeownership gap = 33% 5th worst in the nation10

Housing Trends and Challenges -Declining Affordability in Mpls-St. Paul11

Housing Trends and Challenges Jobs, Housing, Transportation Mismatch Affects Healthcare and Food Budgets for FamiliesSource: Joint Center for Housing Studies tabulations of the BLS Consumer Expenditure Surveys.Average family with Children Monthly Expenditures - $2000-$2500 (2003)12

Housing Trends and Challenges Rental Market is TighteningSource: GVA Marquette Advisors, 4th Quarter 2006, Apartment Trends12

Chart1

5.1840

6.7843

7.1850

6848

4.7871

Vacancy

Average Rent

Vacancy Rate (Percentage)

Average Rent

Critical Housing Needs

yearpercentage

200011.4%

200513%

Critical Housing Needs

00

stable housing

20,000,0001971-1977

Stable HousingUnstable Housing

Likelihood of Food Insecurity11.92

Likelihood of Hospitalization11.51

Likelihood of Fair or Poor Health11.86

stable housing

00

00

00

Stable Housing

Unstable Housing

DNR

Urbanized LandHouseholdsPopulation

1986000

199110108

1998302119

2002382925

DNR

000

000

000

000

&A

Page &P

Urbanized Land

Households

Population

Percentage Growth from 1986

Growth in Urbanized Land, Population, and Households 7-County Core Area: 1986-2002

ELTH

Housing Opportunities

GoalActual

10001093

Plan Costs

PlanActual

$62.2144.4

ELTH

0

0

Cumulative Units 2004-2006

Housing Opportunities

average rent

00

Plan

Actual

Cumulative Costs - 2004-2006 (Excluding Service costs, including committeed funds not yet disbursed)

(in millions)

Plan Costs

$44.4

state appropriations

20022003200420052006

Vacancy5.16.77.164.7

Average Rent$840$843$850$848$871

state appropriations

00

00

00

00

00

&A

Page &P

Vacancy

Average Rent

Vacancy Rate (Percentage)

Average Rent

1996- 19971998- 19992000- 20012002- 20032004- 20052006- 20072008- 2009 (Proposed)

Base47.4663.01479.2980.19869.7770.4796.24

One-Time026.14293.7527.850.5050

G.O.2.52016.212.3519.50

49.9691.156173.04124.24882.6289.97146.24

000

000

000

000

000

000

000

$49.96

$91.138

$173.04

$124.248

$82.62

$89.97

138.876

Yearly Cumulative Total

Base

One-Time

G.O.

Housing Trends and Challenges Confronting Todays Foreclosure Crisis, Identifying Hot Spots14

Housing Trends and Challenges - Affordable Housing Needs Continue into the Next DecadeAffordable Housing Need in the Twin Cities in 2011-2020 That Will Consume Land 166,547 new households expected 64,100 new low-income households expected 25,800 units of affordable housing that the private market will provide to new low-income households 51,000 net need for land-consumptive, newly-constructed, affordable housing units15

For More Information ContactCherie Shoquist651.297.3120cherie.shoquist@state.mn.us400 Sibley Street, Suite 300St. Paul, MN 55101651-296-7608 * 800-657-3769 * TTY 651-297-2361www.mhfa.state.mn.us16

Minnesotas Business Plan to End Long-Term Homelessness

Legislative Commission to End Poverty December 5, 2007

People experiencing Long-Term Homelessness57 % have mental illness.34% have a chemical dependency problem.25% have dual diagnosis (MI and CD).15% are veterans.11% have a history of being victimized by domestic violence (34% of females).36% have a history of prior incarceration.39% report possible brain injury.

(2006 survey data from Wilder Research)

Business Plan Background Developed in 2003, recalibrated in 2007, based on Wilder data Single strategy: develop 4,000 new housing opportunities for households experiencing long-term homelessnessNow part of Heading Home Minnesota, an unprecedented, Innovative, coordinated partnership of public, business, nonprofit, philanthropic, and faith communitiesHeading Home Plans include Southeast MN, Hennepin, Ramsey, St. Louis CountyHeading Home Governance includes Executive Team of plan leaders; Steering Committee of faith, philanthropic and business leaders; and Advisory Council of community leaders.

Financing Plan Estimate (2004-2010)A unique effort to estimate over time the costs of housing and support services from multiple funding sources.(in millions) (Revised)

1,661 Housing Opportunities Funded Through 11/30/07

People housed after experiencing LTHOf 662 households (1,320 individuals): 2/3 report a disability (45% mental illness, 17% dual diagnosis, 16% alcohol abuse)57% are people of color (38% African American,16% American Indian) 78% are in Twin Cities metro area (22% in Greater Minnesota)

Of 249 households who left housing, 40% went to a permanent living situation; 35% had a rental subsidy or are living in Public Housing.

Of those currently in housing (620 households), 36% have maintained housing for more than a year

(Data on people housed from HMIS, FY07 annual report)

State Budget Decisions2005 through 2007 Based largely on the Governors budget, the Legislature has approved bonding and appropriated funds to support the Business Plan:$31.5 million Bonding for supportive housing (2005 and 2006)$13.5 million to Housing Trust Fund (at Minnesota Housing) for capital, operating costs, and rental assistance ($5m in 1-time funding)$12 million to DHS for Supportive Services Fund ($2 million in 1-time)$2.3 million for foster care transition$2.7 million to DOC for transitional housing$7.5 million for Family Homeless Prevention and Assistance$2 million for Bridges rental assistance $750,000 to DHS for transitional housing (1-time)$1.6 million to DOC for 3 re-entry projects$2.7 million for Group Residential Housing (GRH) $3.25 million to DHS for mental health housing support$700,000 for outreach grants through DPS

For more information, contact

Laura KadwellMinnesota Director for EndingLong-Term Homelessness

laura.kadwell@state.mn.us651-284-0079