2006 Minnesota Statutes

462A.209 HOMEOWNERSHIP EDUCATION, COUNSELING, AND TRAINING
PROGRAM.
    Subdivision 1. Full cycle homeownership services. The homeownership education,
counseling, and training program shall be used to provide funding to community-based nonprofit
organizations and political subdivisions to assist them in building the capacity to provide and
providing full cycle homeownership services to low and moderate income home buyers and
homeowners, including seniors. The purpose of the program is to encourage private investment in
affordable housing and collaboration of nonprofit organizations and political subdivisions with
each other and private lenders in providing full cycle homeownership services.
    Subd. 2. Definition. "Full cycle homeownership services" means supporting eligible home
buyers and home owners through all phases of purchasing and keeping a home, by providing
prepurchase home buyer education; prepurchase counseling and credit repair; prepurchase and
postpurchase property inspection and technical and financial assistance to buyers in rehabilitating
the home; postpurchase counseling, including home equity conversion loan counseling, mortgage
default counseling, postpurchase assistance with home maintenance, entry cost assistance;
foreclosure prevention and assistance; and access to flexible loan products.
    Subd. 3. Eligibility. The agency shall establish eligibility criteria for nonprofit organizations
and political subdivisions to receive funding under this section. The eligibility criteria must
require the nonprofit organization or political subdivision to provide, to build capacity to provide,
or support full cycle homeownership services for eligible home buyers. The agency may fund a
nonprofit organization or political subdivision that will provide full cycle homeownership services
by coordinating with one or more other organizations that will provide specific components of full
cycle homeownership services. The agency may make exceptions to providing all components of
full cycle lending if justified by the application. If there are more applicants requesting funding
than there are funds available, the agency shall award the funds on a competitive basis and also
assure an equitable geographic distribution of the available funds. The eligibility criteria must
require the nonprofit organization or political subdivision to have a demonstrated involvement in
the local community and to target the housing affordability needs of the local community or to
have demonstrated experience with counseling older persons on housing, or both. The eligibility
criteria may include a requirement for specific training provided by designated state or national
entities. The agency may also include an eligibility criteria that requires counselor certification or
organizational accreditation by specified organizations which provide certification or accreditation
services. Partnerships and collaboration with innovative, grass roots, or community-based
initiatives shall be encouraged. The agency shall give priority to nonprofit organizations and
political subdivisions that have funding from other sources for full cycle homeownership services.
Applicants for funds under section 462A.057 may also apply funds under this program.
    Subd. 4.[Repealed, 1Sp2001 c 4 art 5 s 10]
    Subd. 5. Selection criteria. The agency shall take the following criteria into consideration
when determining whether to award funds to an eligible organization:
(1) the extent to which there is an equitable geographic distribution of funds among program
applicants;
(2) the prior experience and documented familiarity of the organization, as may be
applicable, in establishing, administering, and maintaining some or all of the components of
full cycle homeownership services;
(3) the reasonableness of the proposed budget in meeting the program objectives, a
demonstrated ability to leverage program money with other sources of funding, and the extent of
the leveraging of other sources of funding;
(4) the extent to which efforts are targeted towards households with incomes that do not
exceed 80 percent of the state or area median income or underserved segments of the local
population; and
(5) the extent to which program funding does not duplicate other efforts currently available
in the local area and will enable, expand, or enhance existing activities.
    Subd. 6. Designated areas. A program administrator must designate specific areas,
communities, or neighborhoods within which the program is proposed to be operated for the
purpose of focusing resources.
    Subd. 7. Assistance to prevent mortgage foreclosures. (a) Program assistance and
counseling to prevent mortgage foreclosures or cancellations of contract for deeds includes
general information, screening, assessment, referral services, case management, advocacy, and
financial assistance to borrowers who are delinquent on mortgage or contract for deed payments.
(b) Not more than one-half of funds awarded for foreclosure prevention and assistance
activities may be used for mortgage or financial counseling services.
(c) Financial assistance consists of payments for delinquent mortgage or contract for deed
payments, future mortgage or contract for deed payments for a period of up to six months,
property taxes, assessments, utilities, insurance, home improvement repairs, future rent payments
for a period of up to six months, and relocation costs if necessary, or other costs necessary to
prevent foreclosure.
(d) An individual or family may receive a maximum of $5,500 of financial assistance to
prevent a mortgage foreclosure or the cancellation of a contract for deed.
(e) The agency may require the recipient of financial assistance to enter into an agreement
with the agency for repayment. The repayment agreement for mortgages or contract for deed
buyers must provide that in the event the property is sold, transferred, or otherwise conveyed, or
ceases to be the recipient's principal place of residence, the recipient shall repay all or a portion of
the financial assistance. The agency may take into consideration financial hardship in determining
repayment requirements. The repayment agreement may be secured by a lien on the property for
the benefit of the agency.
    Subd. 8. Report. By January 10 of every year, each nonprofit organization that delivers
services under this section must submit a report to the agency that summarizes the number of
people served and the sources and amounts of nonstate money used to fund the services. The
agency shall annually submit a report to the legislature by February 15.
History: 1995 c 224 s 106; 1999 c 223 art 2 s 53; 1Sp2001 c 4 art 5 s 3