Affordable housing
Habitat lands low-cost financing line
Twin Cities Habitat for Humanity and Minnesota Housing have entered into a 10-year, $25 million agreement that Habitat said will help it increase affordable-housing production in an increasingly expensive market.
The partnership with Minnesota Housing gives Habitat access to a flexible, low-cost credit line, allowing Habitat to respond to land-and-property acquisition opportunities in a tight housing market. The financing was negotiated over several months by just-retired Habitat CEO Susan Haigh.
In the fiscal year that ended June 30, Habitat helped 93 families achieve homeownership through its new-construction, rehab and low-cost financing programs, including home buyer education. That number is expected to grow to 110 households next year, double what Habitat has done historically.
Roughly 90 percent of Twin Cities Habitat home buyers are minority households, who tend to have lower incomes.
"This partnership provides an essential ingredient for the [Habitat] Impact 2020 plan to double the number of households that Twin Cities Habitat can serve each year," said Minnesota Housing Commissioner Mary Tingerthal. "This is an important part of Minnesota Housing's strategy to extend more homeownership opportunities to households of color and close Minnesota's homeownership gap."
Impact 2020 was catalyzed by a partnership with Bremer Bank, valued at $98 million. Bremer committed to buy Twin Cities Habitat's mortgages at a below-market rate.
"The line of credit from Minnesota Housing, paired with financial commitments from Bremer and Twin Cities donors, will help multiply the impact, so hundreds more families will have the opportunity to purchase a home of their own." said Habitat CEO Chris Coleman, the former St. Paul mayor.
Neal St. Anthony