MHP Connect

In the third quarter of 2012, conditions were very clearly on the up-and-up for homeowners and the housing industry. Renters, however, are still awaiting brighter days, with rental housing scarce, especially for cash-strapped lower-income renters. The number of homeless families turning to Hennepin County for shelter reached a 12-year high this quarter, according to the latest "2 x 4" Report.

At the November Minnesota Housing board meeting, the highlights included an announcement of a new State Director to Prevent and End Homelessness, and the Agency committed the remaining bonding authority allocated to it by the 2012 Legislature. The board and staff discussed where the Agency faced the greatest risks, as well as the challenge of using pay for performance, or social impact bonds.

It comes as very welcome news that the number of foreclosures is slowly declining from a peak in 2010 in Minnesota. But we've been curious to understand what's "normal" for Minnesota. Looking at the historical delinquency rate for mortgages going back in time can help us understand the trends. What we found was that as of Q3 of 2012, the mortgage delinquency rate was still almost three times higher than the average over several decades before the foreclosure crisis began. 

The money tree was shaken hard at the Minnesota Housing October board meeting. In making its annual funding awards, the Agency committed $134 million. This commitment will result in development of 3,070 housing units and will sustain 4,500 jobs. The Agency's October board report ran 320 pages. That's what it took to describe one of the largest funding commitments ever made by Minnesota Housing through the Consolidated Request for Proposals (RFP).