Habitat for Humanity of Minnesota

The main program offered by Habitat for Humanity of Minnesota (hfh-mn) is a loan program through which we provide a secondary market for Habitat mortgages. As of june 30, 2022, we have financed 965 mortgages for affiliates for total loan disbursements of $71 million. Over 2,700 Habitat for Humanity homes have been sold to partner families in Minnesota since the late 1980s. Collectively, these mortgages total over $100 million in principal balances. These homes are sold with 0% interest or zero-equivalent mortgages. Homeowner mortgage payments are used to build more Habitat homes. The Habitat Minnesota loan fund allows hfh-mn to act as a secondary lender for Minnesota hfh mortgages. Affiliates pledge their homeowners mortgages and monthly mortgage payments to the fund. In return, affiliates get the cash value of the mortgage right away, rather than having to wait 20 to 30 years for the payments to come in. Affiliates then use this cash to accelerate home building, acquire land for large-scale projects, and leverage support from others. All pledged mortgages must be to homeowners with incomes at or below 80% of median at the time the family was selected. A subset of this loan fund was approved and rolled out in fy'22. Habitat homebuyers making equal to or less than 80% area median income can be qualified to received downpayment assistance in the form of a subordiante mortgage. This subordinate mortgage lowers the first mortgage amount, making their payments more affordable, and funds are disbursed after closing to the Habitat affiliate who developed and sold the property. The homeowner begins ammoritized repayment of the subordinate mortgage only after the first mortgage has been paid in full. As of june 30, 2022, $1 million has been disbursed for these purposes.

The Habitat 500 is a peer-to-peer fundraising bike ride event that supports Habitat for Humanity affiliates around the nation. Habitat Minnesota coordinates and sponsors the annual ride that hosts between 130-150 cyclists who, through their peers, fundraise for a designated Habitat for Humanity affiliate. Habitat Minnesota coordinates the ride logistics and fundraising disbursements to the designated affiliates.

The Minnesota housing finance agency (mhfa) provides grants and loans to affordable housing developers through a competitive once a year request for proposal process under its community homeownership impact fund (formerly community revitilization) program. The mhfa has asked hfh-mn to serve as the coordinating entity for the greater Minnesota Habitat affiliates application for these funds. In fy 22, hfh-mn disbursed $121,000 for 8 homes under this program. All funds received from mhfa under these program grants are passed through to affiliates to support the construction or repair of specific qualifying homes. All new construction homes must be sold to homeowners with incomes at or below 60% of median. All home repairs must be completed for households with incomes at or below 40% of area median income. In the fall of 2008, the mhfa specified that all newly constructed homes built with impact funds must meet the Minnesota green communities criteria (mgcc). This requirement applies to our current impact fund value gap award. Funds provided under these grants are secured by a subordiante mortgage or deed restriction held by hfh-mn on the specific home. No monthly payments are due under these liens and, if the homeowner maintains occupancy of the home through the maturity date, the funds are forgiven. Any repayments received by hfh-mn from these subordinate liens are to be re-used for the original intended purpose and do not need to be repaid to mhfa if hfh-mn meets this requirement.

Other program services include training and technical assistance to our borrower affiliates and other miscellaneous program services.