Habitat for Humanity - 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, 2023, we have financed 971 mortgages for affiliates for total loan disbursements of $72.1 million. Over 2,750 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 subordinate 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, 2023, $3 million has been disbursed for these purposes.

Habitat Minnesota provides training and technical assistance programming to our borrower affiliattes. Bi-annually, Habitat minnsota hosts an affiliate learning conference. In fy23, it was hosted in february 2023 and affiliates representing 5 different states were present. More than 100 attendees participated; topics included construction cost planning, safeguarding, mortgage serving compliance, family selection, business operations, and others connected to the business of managing a Habitat for Humanity affiliate.

Habitat Minnesota supports Habitat affiliates in Minnesota in implementing their local and state-level advocacy goals. We provide training and support with the goal of increasing affordable housing supply, educating affiliates on land use policies and resources, and communicating the economic and community impact Habitat has around the state with decision-makers at various levels of government. Habitat Minnesota is seen as the state's expert on affordable homeownership. Habitat is a nonpartisan organization focused on building a world where everyone has an affordable place to call home.

Other program services include educational events, sustainable building and cost saving techniques, marketing and communication, and fundraising events.