| Minnesota Housing and the Family Housing Fund award $1.4 million to Twin Cities Habitat for Humanity |
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"The state of Minnesota, through Minnesota Housing, is a significant investor in Habitat for Humanity, and is excited about this new investment in strategic land acquisition. As with our prior and ongoing investments, we know that there will be a substantial return. The new homeowners will have improved quality of lives, not only because of owning their own homes, but also by having access to jobs near their homes to reduce their commuting time, which allows them to devote more time and resources to satisfying other important family needs," said Tim Marx, Minnesota Housing Commissioner. The Metropolitan Council estimates that 51,000 new units of affordable housing will be needed in the Twin Cities between 2011 and 2020. Over 700 will be needed in the City of Chaska alone. "Affordable homeownership is good for families, it's good for business, it's good for the community, and it brings much needed stability to our region's housing market," said Peter Bell, Metropolitan Council Chair. In announcing the award, Minnesota Housing emphasized that funding priority was given to Community Developers that possess a reliable track record of success and a proven marketability of their homes. Twin Cities Habitat for Humanity (TCHFH) was specifically chosen due to Habitat for Humanity's strong national presence and consistent ability to deliver affordable homeownership solutions to low-income families. In fiscal year 2006, 86% of TCHFH homeowners were from emerging market communities, one of the other funding criteria for the award. Additionally, Twin Cities Habitat provides a thorough homebuyer selection process, and requires eleven homebuyer education courses. As a result, the organization sees low default and foreclosure rates among the homeowners it serves. "The decision by MN Housing and Family Housing Fund to award $1.4 million to Habitat for Humanity for land acquisition is a savvy response to the current slow down in the Twin Cities housing market. This landmark decision will offer Twin Cities Habitat the opportunity to preserve land for the future and partner with communities to reach their affordable housing goals," said Susan Haigh, president of Twin Cities Habitat for Humanity. With the funding from the land acquisition award, TCHFH leaders said that they will be able to leverage an additional $4.5 million in funding from the community to pay for the construction of the homes. "This is an incredible first step and now we will have to roll up our sleeves, get to work and turn to the community to help us raise the funds needed to make the dream of homeownership a reality for our partner families," said Haigh. To date, Twin Cities Habitat for Humanity (TCHFH) has built and sold four homes in Carver County and two homes in Scott County, representing less than 1 percent of the organization's home production in their seven county service area. Historically, it has been cost-prohibitive to build in Scott and Carver counties due to the high cost of land. Through the Strategic Land Acquisition grant, TCHFH plans to purchase 28-35 parcels of land, and will construct homes in three phases from 2009-2011. About Twin Cities Habitat for Humanity (TCHFH) The mission of Twin Cities Habitat for Humanity is to eliminate poverty housing from the Twin Cities and to make decent, affordable shelter for all people a matter of conscience. Volunteer labor, donated materials and contributed funds are used to build and renovate homes in the Twin Cities area. Working under the faith-based principle that no profit should be gained from assisting those in need, Habitat for Humanity charges no interest on the mortgages that it issues to homebuyers. Families who purchase Habitat homes are selected based on need, ability to repay the zero percent mortgage, and willingness to partner. Families put in 300-500 hours of "sweat equity" helping to build Habitat homes. As a leading Twin Cities community developer, TCHFH has built over 665 homes in 40 communities throughout the seven-county metro, and engages more than 20,000 volunteers a year. For more information, visit www.tchabitat.org.
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Contact: Sharon Rolenc Photo caption: State and community leaders announced a $1.4 million award to Habitat for land acquisition. Pictured from left: Twin Cities Habitat president Susan Haigh, Minnesota Housing Commissioner Tim Marx, Metropolitan Council Chair Peter Bell, and First Lady Mary Pawlenty.
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(November 20, 2007) Minneapolis, Minn.- Minnesota Housing Commissioner Tim Marx, First Lady Mary Pawlenty and Metropolitan Council Chair Peter Bell joined Twin Cities Habitat for Humanity (TCHFH) and
community leaders today to announce $1.4 million in funding for land
acquisition in the fast growing communities of Scott and Carver Counties. The land will be preserved for the future development
of affordable homeownership. As a
leading local community developer of affordable housing, TCHFH was awarded the
first of its kind Strategic Land Acquisition funding award from Minnesota
Housing Finance Agency and the Family Housing Fund.
