Twin Cities Habitat legislative agenda for 2010 was focused on Helping Neighborhoods & Families Recover from Foreclosure. We pursued a combination of funding and policy items that would remove barriers and increase support for communities hardest hit by the foreclosure crisis.

We had success with the following:

Funding: While state funding to MN Housing was cut, the program used by 20 out of 33 Habitat affiliates in the state was not.  Known as the Challenge Fund, the resources are used to build new energy efficient homes and rehab foreclosed houses. 

Policy: State Legislators allowed Habitat affiliates, government agencies and foreclosure prevention counselors to be exempt from new regulations around originating and negotiating mortgages, if HUD allows states to create this exemption.  In doing so, State Legislators created an opportunity for nonprofits to avoid a huge barrier to our work to recover from the foreclosure crisis.

Unsuccessful, but had a good showing:

Funding: The bill to capture the growth in the deed and mortgage tax revenue as a resource for affordable housing successfully passed two key committees.  However, the bill stalled once the Supreme Court ruled that Governor Pawlenty’s 2009 unallotments were an overreach of Executive Powers.

Policy: Our efforts to streamline the pre-foreclosure notification process also stalled in committee.  We attempted to make the transfer of information between a homeowner, a lender or servicer, and a foreclosure prevention counselor more efficient.  However, work needs to be done with additional stakeholders over the summer to work out the details.  We hope to be back next session with a resolution that works for all parties.

Kristin Beckmann, Government and Community Relations Director

More good news for Habitat for Humanity affiliates and our partners.  Senator Franken will cosponsor S.3106, the Nonprofit Mortgage Licensing Clarification Act of 2010. This directs HUD to allow states to exempt nonprofit housing organizations from the regulations of the S.A.F.E. Mortgage Licensing Act of 2008.  We are very grateful for Senator Franken's support of our work.

The bill clarifies that the SAFE Act is only meant to apply to individuals working with mortgages, “for compensation or gain.”  Habitat has a unique mission and does not seek to gain from its partner family homeowners. It does not make sense to require Habitat to satisfy requirements that are focused on profit-making enterprises.  Directing HUD to allow Minnesota to exempt Habitat affiliates enables us to avoid costly and burdensome regulations.

What Habitat affiliates do:

• Habitat affiliates make no-profit mortgages, and carefully screen and provide education to all partner families.
• Habitat affiliates do not include any fees that accrue to the affiliate in its no-profit mortgages, except for those fees necessary to service the mortgages.
• Even through the current housing crisis, Habitat’s focus on true affordability and homeowner education has allowed our ministry to maintain an extremely low foreclosure rate (around 2 percent).

We are hopeful that the legislation encourages HUD to make clear that Habitat affiliates do not need to comply with the SAFE Act regulations before July 31st so Habitat affiliates can avoid meeting expensive compliance standards this summer.
 
Senator Franken joins Senator Klobuchar who became a cosponsor in April. Congressmen Walz, Kline, Paulsen and Ellison and Congresswoman McCollum are cosponsoring the House version of the bill H.R.4400. We are grateful to the MN Congressional delegation for recognizing the good work we do and helping remove barriers to our efforts to recover from the foreclosure crisis.

Trista Matascastillo, Community Relations Sr. Associate

In Washington, Senators Amy Klobuchar and Al Franken are pushing for a financial overhaul bill that will serve as bookends to the vicious cycle that trapped unwitting mortgage borrowers. Many people have a similar story to Tecora Parks, a retired hospital worker and South Minneapolis resident, who was duped into refinancing her home in 2005 near the height of the housing bubble.

Tecora, like many homeowners, admits she understood little of what she signed. She bought a house with an option ARM mortgage, and the mortgage payments increased dramatically over the years. Someone should have helped her understand that the “teaser rate” her lender offered her would not necessarily mean she would be able to afford her mortgage payments in the future – but no one ever did.
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Photo by Richard Tsong-Taatarii, Star Tribune

Tuesday afternoon, Twin Cities Habitat for Humanity President, Sue Haigh and a few support staff headed to the Minneapolis City Council Chambers to seek approval from the Community Development Committee on the purchase of four properties that will be part of the Jimmy & Rosalynn Carter Project in North Minneapolis. 

Ms Johnson, from the City, presented the plan for the properties to the council and was very enthusiastic about the collaboration that Habitat has with the Hawthorne neighborhood group, the city and the Carters. This is really an awesome example of how partnerships can make a difference in revitalizing neighborhoods.  

The properties are part of the Eco Village, a four block area cluster that is dedicated to incorporating green building in its revitalization efforts. In 2008, the EcoVillage was considered the hardest hit by the foreclosure crisis in Minneapolis. Nearly 55% of the homes in this area were vacant and boarded up. But, it didn’t slow the neighbors in the Hawthorne area; instead, they mobilized and came up with a plan to redevelop the area and to do it with Green and LEED building standards, making the EcoVillage ideal for the Jimmy & Rosalynn Carter Work Project. 

After a brief statement to the Community Development Committee by Sue Haigh, Councilman Don Samuels moved to approve the sale of the properties, and Councilwoman Diane Hofstead seconded the motion with a big thank you to all involved. Motion Passed Unanimously! Thanks Minneapolis! We are excited to continue our work with you. 

Trista Matascastilllo, Community Relations Sr. Associate

This past Saturday night everyone was dressed in their best dress, and tool belts to boot (pun intended)! This was my third Hard Hat & Black Tie Gala, and I am always so amazed at the numbers of people who attend. There were over 700 people out to support the important work of Twin Cities Habitat for Humanity – truly an inspiration for all of us who work so hard to give A World of Hope to the hopeless and a voice to the voiceless. 

The atmosphere was full of energy, and though it was a huge crowd of grownups, the theme this year was Legos... building blocks. It reminded us of the children who will live in the homes that Habitat builds and that it really does All Starts at Home.  

Dinner kicked off with a friendly competition, where each table tried to build the best house with Legos.  I've never seen so many adults get so excited about Legos. I think I even saw St. Paul City Councilman Lee Helgen coming up with a strategic plan to incorporate community members in his build.  I think that in the end the members of our Thrivent Builds group mastered the building the best.  But, as our emcee for the night, Julie Nelson pointed out, they do have more experience with building with Habitat than most people.

Perhaps the best part of the evening was the video launch of our Neighborhood Revitalization Initiative, which is a collaboration of our work along with the cities of Minneapolis and St. Paul. The Jimmy & Rosalynn Carter Work Project is just a piece of the work we will continue to do to help restore the hardest hit neighborhoods in these two cities. It is really about bringing the neighborhoods back to life, and filling empty homes with families.  The goal is to once again have the children playing in the yards, with seniors basking in the sun, watching the children play. Together with neighborhood groups, churches, volunteers and the city staff we can and will make a tangible impact. 

Trista Matascastillo, Community Relations Sr. Associate
Photo by Peter Kowler