07/17/03 - Laserfiche WebLink

Home

All told, MHFA experienced a base funding cut of $9.298 or 12%. With the loss of $24 million in one-time j, MHFA faces a 33% budget reduction compared to the 02-03 biennium. The one positive development for MHFAts budget was the successful effort of HousingMinnesota and the MN Coalition for the Homeless to restore lost one-time funding for the Family Homeless Prevention and Assistance program. We successfully lobbied to restore a $250,000 hole left by one-time funding and to gain an additional $50,000 on top of that to increase the base funding for FHPAP by a total of 4%. After that bit of good news, some of the cuts to MHFA's programs are described below. Much-needed funding for the production and rehab of affordable housing was dramatically reduced with the loss of $4.364 million from MHFA's Challenge Fund. The loss of this funding was compounded by the loss of $24 million in one-time funding for housing production in the 2001-02 biennium. The combined loss of these production/rehab dollars means approximately 600 fewer affordable units will be built of rehabbed over the next two years. Rehabilitation of aging housing stock is a particular challenge for many communities across Minnesota, yet funding for rehabilitation was reduced by ~486,000, undermining our ability to, at a minimum, hold )nto the affordable housing stock we already have. Sixty-three fewer households will receive rehab loans as a result of this cut. Another housing preservation program_ intended to maintain the federally funded housing we have in Minnesota was cut by $1.118 million, which means 121 affordable units may be permanently lost. Funding for mortgage foreclosure prevention and related services (a growing problem in these troubling economic times) was also cut by $146,000 which translates into 300 fewer families served. One of the most painful cuts was funding for Emergency Services (homeless shelters) and Transitional Housing which was reduced by $2.7 million or 29%. This reduction was so severe because one-time funding was relied upon to provide much of the funding in previous years to meet the basic housing needs of some of our most vulnerable Minnesotans. As a result, the 9overnor~ original budget did not restore $4.7 million in one-time funding for emergency services and transitional housing which amounted to a 50% heduction in funding for these programs. HousingMinnesota and the Minnesota Coalition for the Homeless successfully lobbied to restore $2 - million to the transitional housing program, softening the reduction from 50% to 29%. Another painful affordable housing cut was the $9.028 million (53%) cut to the Minnesota Economic Opportunity Grants (MEOG). This funding helps support the 27 community action agencies across the state which serve all 87 counties with anti-poverty and self-sufficiency programs. Community action agencies are responsible for much of the affordable housing activityand homelessness programs across the state. (A full description of the MHFA and other housing- related budget cuts, and housing-related legislation is available on our web site: vvvvw, housingminnesota.org.) Gearing Up For Next Year! In the coming months HousingMinnesota will be seeking your input on our legislative priorities for the 2004 legislative session. There are some hopeful signs for the coming year-- Commissioner Tim Marx_joining MHFA, the supportive housing working group, new supportersjoining HousingMinnesota§ efforts, and the beginnings of an unprecedented collaboration among housing advocates to support a bonding package for affordable housing. If you would like to participate on HousingMinnesota~ Steering Committee to help set directions for our work in the 2004 legislative session, contact Chip Halbach at 651-649-1710 ext. 101 or chalbach@mhponline.org. All other questions and comments about HousingMinnesota§ policy work may be directed to Rachel Callanan. Rachel Callanan is the Policy Director at MFIR Contact her at 651-649-'1710 ext. 107 or rcallanan@mhponline.org. Rachel Callanan (right) and Michael Dahl of the Minnesota Coalition for the Homeless (center) speak with MHFA commissioner Tim Marx (left) at the 2003 Minnesota Supportive Housing Conference. The Bullet 5