SF 2638

as introduced - 88th Legislature (2013 - 2014) Posted on 03/14/2014 08:56am

A bill for an act
relating to housing; creating the Housing Opportunities Made Equitable (HOME)
pilot project; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin HOUSING OPPORTUNITIES MADE EQUITABLE (HOME) PILOT
PROJECT.
new text end

new text begin (a) The Minnesota Housing Finance Agency shall establish the Housing
Opportunities Made Equitable (HOME) pilot project to support closing the disparity
gap in affordable homeownership and rental housing for all communities of color and
American Indians in Minnesota.
new text end

new text begin (b) $50,000,000 is appropriated in fiscal year 2015 from the general fund to the
Minnesota Housing Finance Agency for the HOME pilot project under this section. Funds
appropriated shall be used to support the capacity of several local community nonprofit
housing and service providers to administer the project. The Minnesota Housing Finance
Agency shall choose providers that have proven track records of assisting culturally
diverse groups of people with long-term education services and wraparound services that
have historically resulted in sustainable affordable housing opportunities for culturally
diverse groups. The pilot project must:
new text end

new text begin (1) increase housing opportunities for specific groups while closing the disparity gap
that exists in Minnesota;
new text end

new text begin (2) redevelop and rebuild challenged neighborhoods affected by foreclosure crisis;
new text end

new text begin (3) bring long-term cost benefits by rejuvenating a property tax base of more than
$2,500,000 over four years; and
new text end

new text begin (4) create a revenue stream of at least $....... each year to be redistributed to providers
to expand capacity to help more families.
new text end

new text begin (c) Of the appropriation, $....... must be used to assist families to attain sustainable
affordable homeownership and rental units. Assistance may include long-term financial
education, training, case management, credit mending, homebuyer education, foreclosure
prevention mitigation services, jobs and employment readiness training resources, and
supporting wraparound services.
new text end

new text begin (d) Of the appropriation, $....... must be used to develop and administer a revolving
loan pool for lending to assist families with culturally sensitive credit affordability
financing that will be administered by the providers. Proceeds from the origination,
processing, administrative fees, and servicing of the loans must go into a pool that will
be redistributed back to the providers to expand capacity to assist more families with
purchasing a home or providing rental subsidies.
new text end