1. Presented to Legislative Commission to End Poverty Minnesota Housing Agency Overview December 5, 2007

2. Presentation Summary 2 Mission Strategic Priorities Program Delivery Preventing Homelessness and Supportive Housing Family Homeless Prevention Housing Trust Fund Bridges Minnesota’s Housing Record and Current Challenges

3. Minnesota Housing finances and advances affordable housing opportunities for low and moderate income Minnesotans to enhance quality of life and foster strong communities. Minnesota Housing’s Mission 3

4. Minnesota Housing Strategic Priorities Finance New Affordable Housing Opportunities Preserve Existing Affordable Housing End Long-Term Homelessness Increase Emerging Market Homeownership 4

5. Minnesota Housing Program Delivery – Five Program Activity Areas Preventing Homelessness and Supportive Housing Development / Homes for Working Families Homeownership Loans Preservation Resident and Organizational Support 5

6. Minnesota Housing Program Delivery - Preventing Homelessness and Supportive Housing Three programs: Family Homeless Prevention, Housing Trust Fund, Bridges Provides rental assistance, temporary assistance to resolve a housing emergency, and financial assistance with the capital costs of rental housing for very low income households Median annual incomes of household served are under $10,000 Delivered through local HRAs, CAPs, counties, for-profit and non-profit developers 6

7. Minnesota Housing Program Delivery - Preventing Homelessness and Supportive Housing 2008-2009 Family 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 possible Housing Trust Fund – $6m to sustain commitments already made for rental assistance and to provide additional housing opportunities Bridges - $4m to increase the number of persons served with rental assistance who have mental health problems State Appropriated Programs are 9.4% of the Agency’s Budget and provide the most flexibility to meet the needs of the lowest income Minnesotans. 7

8. Minnesota Housing Program Delivery – Targeting of Resources to Those with the Greatest Housing and Related Challenges Incomes Percentage of Total Households Served, FFY 2006 8

9. Minnesota’s Housing Record – Minnesota Income Comparisons 9

10. Minnesota’s Housing Record - Emerging Markets Homeownership Initiative, Goals Homeownership Rate, 2000 Activity, 2003 Ownership Rate, 2004 Annual Goal Homeownership Rate in 2012 Goal 42%3,59846%4,96258% White homeownership rate = 79.2% Minority homeownership rate = 45.7% Minnesota Emerging Markets Homeownership gap = 33% 5 th worst in the nation 10

11. Housing Trends and Challenges - Declining Affordability in Mpls-St. Paul 11

12. Housing Trends and Challenges – Jobs, Housing, Transportation Mismatch Affects Healthcare and Food Budgets for Families Source: Joint Center for Housing Studies tabulations of the BLS Consumer Expenditure Surveys. Less than 30% 30 - 50% 50% and Over Average family with Children Monthly Expenditures - $2000-$2500 (2003) 12

13. Housing Trends and Challenges – Rental Market is Tightening Source: GVA Marquette Advisors, 4th Quarter 2006, Apartment Trends 12

14. Housing Trends and Challenges – Confronting Today’s Foreclosure Crisis, Identifying Hot Spots 14

15. Housing Trends and Challenges - Affordable Housing Needs Continue into the Next Decade Affordable 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 units 15

16. For More Information Contact Cherie Shoquist 651.297.3120 cherie.shoquist@state.mn.us 400 Sibley Street, Suite 300 St. Paul, MN 55101 651-296-7608 * 800-657-3769 * TTY 651-297-2361 www.mhfa.state.mn.us 16

17. Minnesota’s Business Plan to End Long-Term Homelessness Legislative Commission to End Poverty December 5, 2007

18. 18 People experiencing Long-Term Homelessness 57 % 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)

19. 19 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 homelessness Now part of Heading Home Minnesota, an unprecedented, Innovative, coordinated partnership of public, business, nonprofit, philanthropic, and faith communities Heading Home Plans include Southeast MN, Hennepin, Ramsey, St. Louis County Heading Home Governance includes Executive Team of plan leaders; Steering Committee of faith, philanthropic and business leaders; and Advisory Council of community leaders.

20. 20 Financing Plan Estimate (2004-2010) Sources20042007Costs/Uses20042007 Identified Sources: State General Obligation Bonds$90$77New Construction$85$87 Minnesota Housing State Appropriated Programs and Agency Resources $90$96Acquisition and Rehabilitation$125$88 Private Tax Credit Equity (Minnesota Housing allocation) $60 Units Integrated into Mixed-Income Developments $50$85 Department of Human Services$120$88Rental/Operating Assistance$100$77 Remaining Sources: Federal Government Local Government State Departments Philanthropic/Nonprofit/Other $180$162Services/ Income Supplements $180$146 Total$540$483Total$540$483 A unique effort to estimate over time the costs of housing and support services from multiple funding sources. (in millions) (Revised)

21. 21 1,661 Housing Opportunities Funded Through 11/30/07

22. 22 People housed after experiencing LTH Of 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)

23. 23 State Budget Decisions 2005 through 2007 Based largely on the Governor’s 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

24. 24 For more information, contact Laura Kadwell Minnesota Director for Ending Long-Term Homelessness laura.kadwell@state.mn.us 651-284-0079