Minneapolis aims to increase homeownership

By Heidi Wigdahl
Saturday, May 30, 2015

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MINNEAPOLIS -- The city of Minneapolis has started a new program aimed at reducing the racial disparity gap when it comes to homeownership.

The program, Homeownership Opportunity Minneapolis (HOM), includes $940,000 for assistance and outreach.

The Minneapolis City Council approved Mayor Betsy Hodges' recommendation for HOM--$840,000 toward affordability assistance and $100,000 for outreach efforts.

Eligible buyers can receive up to $7,500 toward down payment and closing cost assistance. The zero percent interest loan does not require a monthly payment. After five years of living in the home, the loan is forgiven. It applies to any single family home, townhouse or condo in Minneapolis.

"The state of Minnesota and Minneapolis have one of the worst homeownership rates in the country. We know that currently in the city of Minneapolis, there are approximately 10,000 renters that have enough money to purchase a home now," said Cherie Shoquist, principal project coordinator for the city.

According to Shoquist, 100-150 homebuyers will benefit from this program in its first year.

While eligibility is based on income, the city is working closely with organizations that have relationships with communities of color.

A 2011-2013 American Community Survey revealed Minnesota had one of the worst racial disparity gaps in homeownership in the country at 38 percent (the difference in percentage between white households who own their homes and non-white households).

"They already have a trusted relationship within communities of color. So they are out promoting this program, bringing these vital resources to those potential homebuyers," Shoquist said.

Income eligibility requirements:

Homebuyers with household income up to 115 percent of the area median income (currently $99,500) are eligible for up to $5,000.

Homebuyers with household income up to 80 percent of the area median income (currently $69,280) are eligible for up to $7,500.

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