Minnesotas Emerging Markets Homeownership Initiative EMHI

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Minnesotas Emerging Markets Homeownership
Initiative (EMHI)
Closing the Homeownership Gap

• January 27, 2005

CURA Forum
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Homeownership Attainment in MN

• Minnesotas homeownership gap is the 8th largest
  in the county (2003)
• Emerging market HO rate 47
• White HO rate 79
• Minnesotas emerging market population doubled
  from 1990 to 2000 (6 to 12) and is expected to
  experience strong future growth

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A Call to Action

• Business Planning
• Analysis of the homeownership gap
• Community and industry participation
• Implementation
• 12 strategies with corresponding scopes of work
• Inclusive governance structure to ensure ongoing
  accountability

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EMHI Business Plan Participants

• EMHI Conveners
• Committee Members
• Advisory Group Members
• Interested Stakeholders

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Committee Members

• Bremer Bank
• U.S. Bank
• Wells Fargo
• Home Ownership Center
• Independent Community Bankers of Minnesota
• MN Association of Mortgage Brokers
• MN Association of Realtors
• MN Bankers Association
• Mortgage Association of MN

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Advisory Group Members

• African American Family Services
• African Development Center
• American Indian OIC
• Bremer Bank
• Bremer Foundation
• Builders Outreach Foundation
• Center for Asians and Pacific
  Islanders
• Chicanos Latinos Unidos En Servicios
• City of Minneapolis
• City of St. Paul
• Cross Cultural Home Ownership Alliance
• Department of Housing and Urban Development
• Dont Borrow Trouble
• Duluth Local Initiatives Support Corporation
• Family Housing Fund
• First Homes
• Freddie Mac
• Greater Minnesota Housing Fund
• Greater Twin Cities United Way

• Metropolitan Alliance of Community Centers
• Metropolitan Council
• Mille Lacs Band of Ojibwe
• Minneapolis Area Association of Realtors
• Minneapolis Public Housing Authority
• Minneapolis Urban League
• Minnesota Coalition of Community Land Trusts
• Minnesota Credit Union Network
• Minnesota Housing Partnership
• Minnesota Manufactured Housing Association
• Mortgage Guaranty Insurance Company
• Multicultural Network of Real Estate
  Professionals
• National Association of Housing and Redevelopment
  Officials (MN)
• Neighborhood Development Alliance
• Pohlad Family Foundation
• St. Paul Area Association of Realtors
• St. Paul Urban League
• TCF Bank
• United Migrant Opportunity Services, Inc.

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Business Plan Key Findings

• Minnesotas racial and ethnic homeownership gap
  harms the quality of life for all Minnesotans
• Emerging markets represent a business opportunity
  

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Key Findings (cont.)

• There are six principal barriers to homeownership
  for emerging markets that can be addressed
  successfully by the housing industry

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Business Planning Process
DETERMINANTS OF HOMEOWNERSHIP
Quantitative Analysis
Interviews
Literature Review
Qualitative Analysis
Listening Sessions
Focus Groups
Quantifiable 1. Income 2. Demographic
Factorsage, marital status,
immigration status
Unquantifiable 1. Credit Quality 2. Wealth 3.
Cultural Factors/Preferences 4.
Discrimination 5. Other (housing supply)

• EMHI Sphere of Influence
• Achievable
• 2 Actionable
• 3 Impactful

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Business Planning Process (cont.)

• BUSINESS PLAN STRATEGIES
• Provide Trusted Guidance
• Recruit and develop diverse industry service
  providers
• Establish industry certification program
• Expand and Tailor Outreach
• Marketing campaign
• EMHI web site
• Expand culturally sensitive homeowner training
• Develop Roadmap for Success guides
• Develop post purchase services network
• Partner with schools to expand financial
  empowerment
• Innovate Structural Support
• Expand access to entry-cost assistance
• Develop emerging market friendly financing
  products and processes
• Acknowledge issues of housing supply
• Acknowledge issues of racism

RESULTS Homeownership Rates
2004 2012 Non-Hispanic Whites
78 81 Emerging Markets
46 58 Homeownership Gap
32 23

HOMEOWNERSHIP BARRIER FOCUS AREAS 1. Wealth and
Downpayment 2. Credit and Lending Practices 3.
Cultural Factors, Preferences and
Immigration 4. Discrimination 5. Information,
Marketing and Outreach 6. Homebuyer
Counseling and Financial Education
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Homeownership Goals

• Overall goal is homeownership rate parity among
  non-Hispanic whites and emerging markets
• Emerging market homeownership rate goal of 58 by
  2012
• 5,700 new emerging market homeowners per year
  (40,000 total by 2012)

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EMHI Governance Structure

• EMHI Advisory Group and Committee
• Responsible for reviewing implementation progress
  at an annual EMHI Summit
• Governance Group
• Responsible for ongoing review, direction and
  oversight of the plan (operational and financial)
• 14 Members 6 from the Advisory Group, 5 from
  the Committee, 1 from each convening organization

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Governance Structure (cont.)

• EMHI Director
• Responsible for statewide implementation of the
  business plan
• 4 Community Councils
• Assure initiatives and pilots are designed to
  address community needs
• Advocates for, and liaisons to, diverse
  communities

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Implementation Plan

• Initiatives and Pilot Efforts
• 12 Strategies with Corresponding Scopes of Work
• Accountabilitylead conveners, primary conveners,
  participants
• Proposed outcomes
• Evaluation component
• Service area
• Target market

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Scopes of Work

• Provide Trusted Guidance
• Recruit and develop diverse industry service
  providers
• Establish industry certification program
• Expand and Tailor Outreach
• Develop synergistic marketing campaign
• Create an EMHI web site
• Expand culturally sensitive homeowner training
• Develop Roadmap for Success guides
• Develop post-purchase services network
• Partner with schools to expand financial
  empowerment

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Scopes of Work

• Innovate Structural Support
• Expand entry-cost assistance resources
• Develop emerging market friendly products and
  processes
• Acknowledge issues of housing supply
• Acknowledge issues of racism

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Implementation Progress

• Incorporation of EMHI in MN
• Filing for 501 c3 status
• EMHI director search
• Establishment of 4 community councils
• Convening of 5 priority scopes of work

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For More Information

• Executive summary available www.mhfa.state.mn.us/
  homes/EMHI_Executive_Summary.pdf
• Business plan available
• www.mhfa.state.mn.us/about/EMHI_Business_Plan.pdf
• EMHI web site
• www.mhfa.state.mn.us/homes/EMHI.htm
• To join as a stakeholder
• Email emhi.mn_at_state.mn.us