Impact Loan Fund
The 21st Century Fund was established in 2000 with a $21 million, 0% interest loan from the Minnesota Housing Finance Agency. Because Habitat Minnesota holds this money interest free, we are able to loan 21st Century Funds to affiliates at 0% interest. The 21st Century Fund loan pool totals approximately $1.3 million per year and carries an 8% loan origination fee to help cover program costs. The loan term matches the term of the mortgage pledged to Habitat Minnesota, on average 25 – 30 years. As of June 30, 2017, approximately $40.1 million has been disbursed from the original loan of $21.3 million plus recycled funds, funding 542 mortgages. In FY’19 Habitat Minnesota has approximately $1.5 million available. A complete application consists of the following seven items. Click here for a copy of the FY19 Request for Applications.
Impact Fund Program Guidelines
Minnesota Housing Finance Agency offers funding through the Impact Fund program. Each year, Impact Fund funding is awarded on a competitive basis to affordable single and multi-family housing projects. Since 2009, Habitat Minnesota has applied for and received over $3.3 million in grants to help Greater Minnesota affiliates construct new or rehab housing. Currently, Habitat Minnesota has $375,000 available to help construct 25 units in fiscal year 2019.
- IF only Application Checklist (applying for IF funding only)
- Construction Cost Worksheet
- Homeowner and Property Data Worksheet
- Income Documentation:
- 3 Consecutive Pay Stubs with sufficient YTD data or Verification of Employment (Form 1005 – Fannie Mae)
- Most Recent Full Federal Tax Return (2 years for self-employment)
- Child Support – 12 month history of child support (if applicable)
- SSI/SSDI Benefit Letter (if applicable)
- Zero Income Certification (if applicable)
- Privacy Notice
- IF Program Guidelines – Construction
- HERS Rater Sample Contract
- GC Workbook IF #5
- HVAC Subcontractor Sheet
- Evidence of Cost Control
- New construction or acquisition/ rehab eligible for select Greater Minnesota affiliates.
- Eligible homeowner income: Earns up to 60% of AMI as defined by Minnesota Housing Impact Fund Income guidelines(note: not adjusted for family size)
- Eligible homeowners: family must be a single headed household OR of an ethnic and/or racial minority OR a household with a disabled family member
- Grant amounts: average $15,000 per home. Final amount per unit based on number of eligible families and level of other sponsorships
- Repayment: Each grant is secured with a second mortgage on the home with no monthly payments and is forgiven on the 30th year anniversary of the mortgage (not before).
- Every IF home must be built to Green Communities Criteria to be verified by a certified Home Energy Rating System inspector.
- Projects must be pre-qualified prior to homeowner closing.
- Processing fee = 8% of IF grant amount