Appendix
	Federal Funds Summary

 

Table

 

Federal Award Name  + Brief Purpose	New grant	Required state match/MOE? Yes/No		SFY 2012 Revenues	SFY 2013 Revenues	Estimated SFY 2014 Revenues	Estimated SFY 2015 Revenues
		Match	MOE
Emergency Homeownership Loan Program	No	No	No	$549	$337	0	0
Energy Rebate	No	No	No	5	0	0	0
HOME	No	No	No	8,888	13,923	8,115	8,115
HOPWA - Housing Opportunities for People With AIDS	No	No	No	150	194	143	143
HUD – Sustainable Communities	No	No	No	140	81	0	0
National Foreclosure Mitigation Counseling	No	No	No	2,995	1,352	0	0
Neighborhood Initiative Grants	No	No	No	113	0	0	0
Neighborhood Stabilization Program	No	No	No	4,245	8,896	0	0
Section 8 – Agency Portfolio	No	No	No	74,983	70,854	71,115	71,115
Section 8 – Contract Administration	No	No	No	106,243	107,100	107,100	107,100
Section 236 Interest Reduction	No	No	No	1,504	1,625	1,625	1,625
Section 1602 Tax Credit Exchange	No	No	No	4,766	0	0	0
Tax Credit Assistance Program	No	No	No	6	0	0	0
Total				204,587	204,362	188,098	188,098

 

Narrative

Minnesota Housing receives federal funds from the U.S. Department of Housing and Urban Development (HUD) consistently for several programs including Section 8 and Section 236, HOME and the Housing Opportunities for Persons with AIDS Program (HOPWA). The HOME program requires a 25 percent state match; none of the other programs require a match. The Housing Trust Fund and the Bridges program provide the match for HOME. The state-funded Affordable Rental Investment Fund – Preservation (PARIF) program is used for preservation of existing Section 8 and other federally subsidized rental housing, such as Rural Development. This is housing that is at risk of opting out of the federal subsidy program or of losing their rent assistance contracts because the owners cannot afford to rehabilitate the properties.

In FY2012 the Agency received additional federal funds for the Emergency Homeownership Loan Program (EHLP), the Neighborhood Stabilization Program (NSP), the National Foreclosure Mitigation Counseling Program (NFMC), Neighborhood Initiative Grants, the Tax Credit Exchange and Tax Credit Assistance Programs, and the Energy Rebate program. The NFMC program and EHLP program were also funded for FY2013. These programs were short term federal programs developed in response to the housing crisis. The Agency does not expect to receive additional funding for those programs.

The Agency made estimates of federal funds for the 2014-15 Biennium based on FY2012 Federal appropriations. HUD funding levels could potentially be cut under sequestration, which would impact the level of HOME, HOPWA and Section 8 funds the state receives. The last available estimate of sequestration cuts for discretionary domestic programs from OMB is 8.2%. This estimate may no longer be accurate with recent passage of the American Taxpayer Relief Act of 2012, which delayed sequestration by two months and modified the spending reduction targets.

A trend over recent years has been to reduce funding for the HOME program. The Agency’s annual award of HOME funds has been reduced from nearly $10.5 million in 2010 to less than $6.2 million in 2012. We anticipate similar funding level in 2013. Similar reductions are experienced by local HOME entitlement communities in Minnesota.

The agency expects that HUD will have some flexibility in managing the effects of sequestration in the short- and medium-term in the Section 8 program, but less in the HOME and HOPWA programs.

Note: on budget reports for Minnesota Housing, federal funds are displayed in “other state funds,” not the federal fund.