1. Presented to Single-Family RFP Fall 2007 We are committed to meeting Minnesotans’ needs for decent, safe, affordable homes and stronger communities 651-296-8215 * 800-710-8871 * TTY 651-297-2361 www.mhfa.state.mn.us

2. 2 About Today  Presenters  Restrooms  Introductions

3. 3 Agenda RFP 101 New This Round RFP Selection Standards and Funding Priorities Minnesota Housing Supporting Programs Q&A

4. 4 Minnesota Housing Mission: To meet Minnesotans’ needs for decent, safe affordable homes and stronger communities.

5. 5 MHFA’s Strategic Goals 2004 - 2007  End Long-Term Homelessness in MN  Increase the Homeownership Rate for Underserved Ethnic Groups  Preserve Existing Stock of Affordable Housing  Increase Housing Choices for Minnesota Workers  MHFA as a Housing Partner of Choice

6. 6 E-News

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8. 8 RFP 101

9. 9 Resources for Developers/Administrators Consolidated RFP ▪ Family Housing Fund ▪ Greater Minnesota Housing Fund ▪ Metropolitan Council ▪ MN Department of Corrections ▪ MH Housing Available twice a year ▪ Spring (released in December) ▪ Fall (released in June)

10. 10 Community Revitalization Fund (CRV) CRV resources approx. $5 million State appropriations and agency resources Legislative selection standards and funding priorities Income limit is 115% of state median (or less) $500,000 award limit, waiver permitted

11. 11 CRV Income Limits Effective for CRV closed/completed units on or after April 18, 2007 Gross Household Income Limits Twin Cities Metropolitan Area (11 County) Olmsted County Balance of the State 50%$39,000$36,500$34,000 80%$62,500$58,500$54,500 100%$78,000$73,000$68,000 115%$89,500$83,500$78,000 Funding partners’ program income limits vary

12. 12 Eligible Applicants Non-Profit/For-Profit Organizations Cities Public Housing Agencies HRA's, CAP's and EDA’s Individuals Indian Tribes/Tribal Housing Corporation Private Developers

13. 13 Funding Uses Acquisition New construction Rehabilitation Demolition/removal Value gap Affordability gap

14. 14 Form of CRV Assistance Interim Construction Financing (2%) for new construction or rehab ▪ Visitability Value gap - limited availability (grant) Affordability gap – same term as first mortgage (deferred loan) Other

15. 15 Value Gap (grant) Difference between fair market sales price (or Appraisal) and total development cost of home TOTAL DEVELOPMENT COST$150,000 FAIR MARKET SALES PRICE$135,500 Value Gap$14,500 Buyer profile: $36,000 HH gross annual income, 3% down payment, 5.5% mortgage, and 30-year term

16. 16 Affordability Gap (deferred loans) Difference between Fair Market Sales Price (or Appraisal) and end buyer mortgage (based upon household annual income and the buyer’s ability to pay) FAIR MARKET SALES PRICE$135,500 3% DOWNPAYMENTless $ 4,065 BUYER’S PORTIONless $118,500 Affordability Gap $ 12,935 Buyer profile: $36,000 HH gross annual income, 3% down payment, 5.5% mortgage, and 30-year term

17. 17 Affordability Gap (deferred loans) Needs-based formula required Due on sale, refinance, end of mortgage term or if the borrower no longer occupies the property Minnesota Housing provides legal documents to Administrator for borrower to sign at closing Administrator records mortgage docs and assigns mortgage to Minnesota Housing for servicing

18. 18 End Result Must be Owner-Occupied Housing Owner’s principal place of residence One to four units ▪ 1 unit must be the owner’s principal place of residence

19. 19 Application Materials RFP Web Page www.mhfa.state.mn.us/homes/homes_administrators.htm Standard Application www.mhfa.state.mn.us/homes/CRV_Application Short-Form Application www.mhfa.state.mn.us/homes/CRV_Short_Form_Application

20. 20 Short Form Short-Form Application »For successful applicants recently awarded funds (last four funding rounds) »Must propose “fundamentally” the same activity »20 month term of most recently awarded application cannot have expired »50% of previously awarded activity must be committed or completed »Selection standards & funding priorities continue to apply

21. 21 Important Dates Application Deadline ▪ 5:00 pm July 12, 2007 Hard copy plus two copies Application Selection Committee ▪ Minnesota Housing Board Meeting ▪ October 25, 2007 Notification of Selection ▪ Within 20 working days of Board Approval

22. 22 New This Round

23. 23 What’s New Streamlined RFP New RFP web page Fillable forms: call w/questions or feedback! Required attachments Sustainability policy

24. 24 Application Materials Standard/Short-Form –PLUS— Supplemental Application Materials ▪ CLT/Coop application (if applicable) ▪ Extra financial worksheets (if proposing more than one activity type) ▪ Funding partner application –Greater Minnesota Housing Fund –Metropolitan Council

25. 25 Application Tips Rich text format Drop down boxes ▪ Activity chart: activity, assistance, income ▪ CRV award status chart Development schedule Financial worksheet Required attachments

26. 26 Required Attachments A.Staff qualifications B.Financial statement (only for applicants not previously funded) C.Site information* D.Government approvals* E.Marketing materials* F.Financial commitments* G.Leverage & regulatory incentives* H.MHIG I.CLTs/Coops * Short-form required attachments

27. 27 RFP Selection Standards and Funding Priorities

28. 28 Selection Process and Scoring Selection Standards ▪ Reviewed, discussed, scored by selection committee members ▪ Minimum score required to receive funding Funding Priorities ▪ Reviewed and scored by staff

29. 29 Application Tips Selection standards and funding priorities Partnerships Readiness Leverage Use supporting programs/resources well

30. 30 Selection Standards: Capacity and Feasibility Capacity ▪ Housing experience w/similar projects ▪ Partners ▪ Role/compensation ▪ Performance Feasibility ▪ Workforce housing need (market analysis) ▪ Degree of readiness/site information ▪ Sources and uses

31. 31 Funding Priority: Efficient Land Use Detail project impact on existing infrastructure & economic vitality of area Describe and indicate housing location with respect to local services: schools, jobs, transportation

32. 32 Funding Priority: Sustainability Cost-effective sustainable building techniques/materials (exceed code) Energy-efficient/green certification program?

33. 33 Funding Priority: Leverage Committed leverage (Aug. 15) ▪ Employer ▪ Governmental entity ▪ Philanthropic ▪ Other Regulatory incentives Costs as low as possible

34. 34 Funding Priority: Underserved Populations Targeting underserved populations ▪ Emerging markets ▪ Single-headed households ▪ Households with a disabled member Marketing techniques Experience

35. 35 Other Funding Priorities Long-term affordability/protect subsidy Inclusionary housing Site and design features Economic vitality

36. 36 Minnesota Housing Programs Supporting CRV

37. 37 Minnesota Housing Programs First-Time Homebuyer Programs »Community Activity Set-Aside Mortgage Program (CASA) »Minnesota Mortgage Program Home Improvement Loan Programs »Fix-Up Fund (FUF) »Community Fix-Up Fund (CFUF)

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40. 40 Community Activity Set Aside Program Benefits »Minnesota Housing Interest Rate »Optional 40 Year Term »$3,000 in entry-cost assistance »Monthly payment assistance of $75, $50, $25 over the first 3 years Interest-free, deferred loan Homebuyer education required

41. 41 Community Activity Set-Aside Program Partnership applies to target activities ▪ Workforce housing—CRV eligible ▪ Single-headed household ▪ Emerging markets Income limits and home cost limits Borrowers access CASA via a participating CASA lender ▪ www.mhfa.state.mn.us/homes/CASA_Matrix_Greater_MN.pdf ▪ www.mhfa.state.mn.us/homes/CASA_Matrix_Twin_Cities.pdf

42. 42 Combining CRV and CASA Use of CASA helps reduce CRV affordability gap CASA partners can enhance success If CASA initiatives don’t exist, create a CASA partnership: Program Concept www.mhfa.state.mn.us/homes/CASA_Program_Concept.pdf Application www.mhfa.state.mn.us/homes/CASA_Application.pdf

43. 43 Fix-Up Fund (FUF) Loan amounts of $2,000 to $35,000 Fixed interest rate – long repayment terms: »$2,000 to $10,000 = 10 year maximum term »$10,000 to $35,000 = 20-year maximum term 110% loan to value, using after-improved value No-cost options for appraisals -- no escrows Liberal debt-to-income ratios Funds continuously available! Statewide network of FUF lenders: www.mhfa.state.mn.us/homes/fixup.htm

44. 44 Community Fix-Up Fund (CFUF) Same benefits/features of FUF, with slightly reduced interest rate FUF lenders and community partners form partnerships and provide leverage to offer additional loan activities: ▪ Sub-prime loans with budget counseling ▪ Reduced interest rates (“discount loans”) ▪ Community Land Trust properties ▪ Outreach or donated services such as rehab advising or translation services CFUF participation application and matrix of current initiatives: www.mhfa.state.mn.us/homes/commfix.htm

45. 45 Combining CRV and HI Resources CRV can be linked to FUF/CFUF loans FUF loans and CFUF loans/partners can enhance success of housing preservation goals CRV funds can be used for CFUF interest rate write-downs – when leveraged with additional resources

46. 46 Post-Award Information Debriefings available for non-funded applicants ▪ Contact Minnesota Housing staff Awarded administrator training—required ▪ Typically held yearly in December CRV contracts Disbursement process Reporting/monitoring

47. 47 Sustainable Building Resources MN Green Communities ▪ www.greencommunitiesonline.org/minnesota Housing Assistance Council ▪ Green Fund capacity grants up to $15,000 ▪ Applications due July 15, 2007 ▪ www.ruralhome.org/infoAnnouncements_GreenFund07.htm The Home Depot Foundation ▪ www.homedepotfoundation.org/support_housing_apply.html

48. 48 RFP Assistance Nancy Slattsveen 651.296.7994 nancy.slattsveen@state.mn.us Terry Hanna 651.296.9567 terry.hanna@state.mn.us Robert Russell 651.296.9804 robert.russell@state.mn.us Devon Pohlman 651.296.8255 devon.pohlman@state.mn.us