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Minnesota Housing Finance Agency Kit Hadley, Commissioner

Mission: Meeting Minnesotans' needs for decent, safe, affordable homes and stronger communities.

See a profile of the Minnesota Housing Finance Agency at: http://www.budget.state.mn.us/profiles/b34.shtml

Indicators on this site are some of what MHFA uses to measure how they are doing to meet Minnesotans' needs for decent, safe, and affordable homes. To see the indicators they use to measure performance on meeting Minnesotans' needs for stronger communities, please see

Performance Report for Minnesota Housing Finance Agency:
http://www.mnplan.state.mn.us/indicators/bigplan/housing/index.html

For additional information on performance indicators and other data, see:

MHFA Program Assessment: http://www.mhfa.state.mn.us/about/assess.pdf
MHFA Web site: http://www.mhfa.state.mn.us


Goal: Increase the number of households assisted by the Minnesota Housing Finance Agency.

Number of new units financed.

Number of rehabbed units financed.

Goal: Provide housing opportunities to households not being adequately assisted by the private market alone.

Households assisted that have extremely low incomes ($17,370 annually)

Homebuyers assisted that have very low incomes ($28,950 annually)

Homeownership among households of color.

Rental units developed with rents affordable to households with extremely low incomes ($17,370 annually)

Rental units developed with rents affordable to households with very low incomes ($28,950 annually)

Goal: Strengthen Minnesota communities.

Leverage of nonstate and local resources in affordable housing development projects

Investment in affordable housing development projects by local businesses and employers

Cost reductions in development projects resulting from regulatory relief

 

 

Number of new units financed.

Graph depicting new units financed by MHFA.

New units financed by MHFA
1999: 759
2000: 810
2001 Target: 1,600
2001 Actual: 1,418
2002 Target: 1,600

Note: The supply of affordable housing in Minnesota is not keeping pace with household growth, undermining economic vitality and the stability of working families. This indicator measures the Agency's efforts to increase the supply of affordable housing. In 2001, MHFA helped produce 1,418 new homes and apartments, nearly double the number in 2000.

Learn more at: http://www.mhfa.state.mn.us/ top arrow pointing up

 

Number of rehabbed units financed.

Graph depicting rehabbed units financed by MHFA.

Rehabbed units financed by MHFA
1999: 6,128
2000: 6,729
2001 Target: 5,974
2001 Actual: 6,786
2002 Target: 6,382

Note: The goal of increasing the supply of affordable housing is undermined if we lose existing homes and apartments due to physical deterioration, conversion to higher income housing, or both. Rehabilitating and preserving Minnesota's existing supply of affordable housing is critical. This indicator measures the Agency's efforts to improve and maintain the state's existing stock of affordable homes and apartments.

These numbers will vary from year to year depending on inflation in construction costs and the resulting increase in loan amounts; unpredictability of funding requests from cities, developers, and housing organizations; and competition for resources among proposals for rehabilitation, new construction, and supportive housing.

Learn more at: http://www.mhfa.state.mn.us/ top arrow pointing up

 

Households assisted that have extremely low incomes ($17,370 annually)

Graph depicting the percent of households with extremely low incomes served by MHFA.

Percent of households with extremely low incomes served by MHFA
1999: 63%
2000: 60.4%
2001 Target: 71%
2001 Actual: 74.3%
2002 Target: 65.9%

Note: This indicator measures the Agency's efforts to assist the lowest income households in the state. Thirty percent of the statewide median income is the standard for "extremely low income" households set by the Federal Department of Housing and Urban Development (HUD). In 2001, 30 percent of the statewide median income was equal to an annual income of $17,370 for a family of four. That income level is also close to the highest level that a family of four can earn and remain on the Minnesota Family Investment Program (welfare-to-work).

Learn more at: http://www.mhfa.state.mn.us/ top arrow pointing up

 

Homebuyers assisted that have very low incomes ($28,950 annually)

Graph depicting the percent of homebuyers with very low incomes served by MHFA.

 
 
 
 
 
 

Note: This indicator measures the Agency's efforts to bring homeownership to very low income households. 50 percent of the statewide median income is the standard for "very low income" set by the federal Department of Housing and Urban Development (HUD). In 2001, 50 percent of the statewide median income was equal to an annual income of $28,950 for a family of four.

Learn more at: http://www.mhfa.state.mn.us/ top arrow pointing up

 

Homeownership among households of color.

Graph depicting the percent of homebuyers served by MHFA who are households of color.

Homebuyers who are households of color, served by MHFA
1999: 15.3%
2000: 19.9%
2001 Target: 16.5%
2001 Actual: 19.5%
2002 Target: 18.2%

Note: This indicator measures the extent to which the Agency serves homebuyers of color. The Agency targets its resources to groups historically underserved by the private market, including households of color. Homeownership rates among households of color are adversely affected by a variety of factors including significant increases in house prices.

For more information on program assistance, see MHFA Program Assessment at
http://www.mhfa.state.mn.us/about/assess.pdf.

For more information on program performance, see Performance Report for Minnesota Housing Finance Agency at
http://www.mnplan.state.mn.us/indicators/bigplan/housing/index.html.

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Rental units developed with rents affordable to households with extremely low incomes ($17,370 annually)

Graph depicting the percent of rental units developed  with rents affordable to extremely low income households.

Percent of rental units developed with rents affordable to extremely low income households
1999: 62.8%
2000: 64.9%
2001 Target: 60%
200 Actual: 52.0%
2002 Target: 59.9%

Note: This indicator and the following indicator measure the extent to which the Agency produces rental housing affordable to the lowest income households and very low income households. Thirty percent and 50 percent of the statewide median income are the standards set by the federal Department of Housing and Urban Development (HUD) for "extremely low" and "very low" incomes respectively. In 2001 by this standard, 30 percent of the statewide median income was $17,370 per year for a family of four.

Learn more at: http://www.mhfa.state.mn.us/ top arrow pointing up

 

Rental units developed with rents affordable to households with very low incomes ($28,950 annually)

Graph depicting the percent of rental units developed with rents affordable to households with very low incomes.

Percent of rental units developed, affordable to households with incomes under $28,950
1999: 98.9%
2000: 96.7%
2001 Target: 90.0%
2001 Actual: 94.0%
2002 Target: 96.5%

Note: Fifty percent of the statewide median income is the standard for "very low income" set by the federal Department of Housing and Urban Development (HUD). In 2001, 50 percent of the statewide median income was equal to an annual income of $28,950 for a family of four.

Learn more at: http://www.mhfa.state.mn.us/

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Leverage of nonstate and local resources in affordable housing development projects

Graph depicting overall outside housing funds (in thousands).

Overall Outside funds (in thousands)
1999 6-month baseline: $84,589
1st half 2000: $127,994
2nd half 2000: $162,906
1st half 2001: $105,542
2nd half 2001: $180,209
Target 1st half 2002: $122,000
Actual 1st half 2002: $117,131

Graph depicting MHFA housing funds (in thousands).

MHFA housing funds (in thousands)
1999 6-month baseline: $19,661
1st half 2000: $27,540
2nd half 2000: $29,005
1st half 2001: $34,564
2nd half 2001: $33,469
Target 1st half 2002: $26,074
Actual 1st half 2002: $23,258

Graph depicting leverage ratio - outside dollar invested for every state dollar.

Leverage ratio
Baseline 6 months: $4.30
1st half 2000: $4.65
2nd half 2000: $5.62
1st half 2001: $3.05
2nd half 2001: $5.38
Target 1st half 2002: $4.68
2nd half 2002 actual: $4.04

Note: The state leverages its resources with private sector resources to maximize investment in affordable housing. The supply of workforce housing will not be increased without capital investment from more, and different, partners in affordable housing development. The first and second graphs reflect the funding of affordable housing both with MHFA and outside funds. In each year since the Agency began tracking this indicator, the investment of nonstate resources significantly exceeded the baseline. Since the volume of housing development business tends to be stronger in the last six months of the calendar year, we created a six-month baseline for 1999 that is half of the overall business for that year. Fluctuations in performance results are affected by a variety of factors including appropriations of one-time funds for specified purposes.

The third graph, the leverage ratio, reflects that the ratio of outside dollars invested in affordable housing for each state dollar remains reasonably positive. Ongoing improvement on this indicator is a key focus of the Agency's efforts.

Learn more at http://www.mhfa.state.mn.us

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Investment in affordable housing development projects by local businesses and employers

Graph depicting contributions by local businesses and employers (in thousands).

Contributions (in thousands)
Baseline 6 mos. $2,978
1st half 2000: $4,198
2nd half 2000: $3,719
1st half 2001: $2,225
2nd half 2001: $1,552
Target 1st half 2002: $2,000
2nd half 2002 actual: $4,034

Graph depicting the number of contributing local businesses and employers.

Number of local businesses and employers
Baseline 6 mos. 6
1st half 2000: 17
2nd half 2000: 13
1st half 2001: 16
2nd half 2001: 15
Target 1st half 2002: 15
2nd half 2002 actual: 20

Note: The supply of workforce housing will not be increased with governmental and philanthropic funding alone. Meeting the workforce housing challenge requires involvement from local businesses and employers. The Administration works to encourage increased housing investment from these sources.

The dollar amount of investment by local businesses and employers in affordable housing development projects in the first half of 2002 is more than double the target established for that time period, and is the second highest amount achieved since the baseline was set. In both dollar amount and number, 2002 local business and employer investment far outpaced performance in 2001. Since the volume of housing development business tends to be stronger in the last six months of the calendar year, we created a six-month baseline for 1999 that is half of the overall business activity for that year.

Learn more at http://www.mhfa.state.mn.us

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Cost reductions in development projects resulting from regulatory relief

Graph depicting homeownership cost reduction from regulatory relief (in thousands).

Cost reduction from regulatory relief
Baseline 6 months: $1,634,000
1st half 2001: $1,446,000
2nd half 2001: $1,129,000
Target 1st half 2002: $1,200,000
Actual 1st half of 2002: $ 811,383

Graph depicting rental housing cost reduction from regulatory relief (in thousands).

Rental housing cost reduction
Baseline 6 months: $1,419,000
1st half 2001: $2,093,000
2nd half 2001: $2,207,000
Target 1st half 2002: $1,400,000
Actual 1st half 2002: $1,628,000

Note: Although we will never eliminate the need for public funding, strategies other than subsidies must be used for producing workforce housing. The Administration works to reduce unnecessary costs so that we can increase production of workforce housing that does not need public funding, and make the public funding that does exist go farther. Local governments can contribute to reducing costs and increasing private, unsubsidized development by reducing or eliminating restrictive regulations that serve as barriers to development, such as density requirements, lot sizes, fees and zoning limits.

The considerable amount of regulatory relief achieved, even in challenging financial times, reflects the strong commitment we attach to this type of contribution in prioritizing development projects. Since the volume of housing development business tends to be stronger in the last six months of the calendar year, we created a six-month baseline for 1999 that is half of the overall business for that year.

Learn more at http://www.mhfa.state.mn.us

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