The Minnesota Housing Finance Agency was created by the legislature in 1971 to help provide decent, safe, sanitary, and affordable housing for low and moderate income Minnesota residents (Laws 1971 c702). Federal assistance was at a peak when the legislation was passed, but high inflation, dramatic changes in the housing market, and the abrupt halt of federal involvement prevented the agency from becoming operational until 1974. In its first year of operation, the agency provided financial assistance for the construction of 2,000 housing units and the purchase of homes for over 1,250 Minnesota families. The agency facilitates construction and rehabilitation of housing by providing for mortgage loans, development loans, and technical assistance to qualified housing sponsors to be used for such construction and rehabilitation. These programs are financed primarily through the sale of tax exempt revenue bonds which are supplemented with some state and federal appropriations, and in some instances, local government funds.