Foreclosure Response and Recovery Foreclosure Prevention, Recovery and
Community Stabilization
Program Goal: Provide large-scale foreclosure prevention funding
and strategies to stabilize at-risk families and neighborhoods.
One in 20 households in Minnesota, nearly 100,000 families, has faced a
foreclosure since 2005.(1) In response to this crisis, Greater Minnesota Housing
Fund has made foreclosure prevention and recovery a top priority for its
funding and technical assistance by taking the following actions:
Worked closely with the Minnesota Home Ownership Center, Family
Housing Fund and Minnesota Housing since 2007 to secure more than
$15 million of federal, state and philanthropic resources to dramatically
increase the number of nonprofit foreclosure prevention counselors from
18 to 70 advisors.
Assembled new funding for the acquisition and rehabilitation of
foreclosed properties in high-impact communities to support local
neighborhood stabilization efforts.
Assisted in assembling over $22 million in funding from federal, state
and philanthropic sources for foreclosure recovery and neighborhood
stabilization initiatives in Greater Minnesota, including $10.8 million in
federal Neighborhood Stabilization Program (NSP) funds, $6.3 million
in Federal Home Loan Bank (FHLB) of Des Moines and over $5 million
in private philanthropic investments.
Established the National Community Stabilization Trust (NCST)
program in Greater Minnesota to enable public, private and nonprofit
partners to purchase foreclosed homes directly from lenders at discounted
prices to stimulate community stabilization.
national Community stabilization trust (ncst)
Stabilizing Communities, Strengthening Neighborhoods, Creating Sustainable Homeownership Opportunities
GMHF's Foreclosure Recovery NCST Program provides private sector builders and developers access to up to $2 million in low interest loans and exclusive access to foreclosed bank-owned real estate for the purposes of engaging private builders to partner with local government and non-profits to foster stable home ownership, stimulate neighborhood revitalization and strengthen local housing markets.
Qualified builder/developers (borrowers) must have a strong track-record working with public and non-profit organizations in the creation of affordable housing opportunities for low-and moderate-income households.
Qualified builder/developers (borrowers) are provided exclusive access to a national pipeline of bank-owned foreclosed properties at discounted prices. (2) Borrowers must agree to meet GMHF income targeting requirements, HUD HQS standards, and the Minnesota Overlay to the Green Communities Criteria.
Program Goals
Greater Minnesota Housing Fund (GMHF) supports efforts to stabilize and strengthen neighborhoods and communities in greater Minnesota hard hit by home foreclosures and disinvestment. In order to address the current scale of the foreclosure crisis, increased collaboration between public, private and non-profit development partners is necessary. Through this program, GMHF seeks to work with public and private entities to:
Redevelop vacant, foreclosed and abandoned homes to stabilize local housing markets.
Augment existing local Neighborhood Stabilization Program (NSP) foreclosure recovery efforts.
Provide sustainable homeownership opportunities for low- and moderate-income homebuyers.
Rehabilitate foreclosed homes to green and healthy building standards to foster energy conservation, improved health for families and sustainable communities.
Create local green jobs in the residential construction and supporting industries.
Engage civic minded builders and developers in community-based foreclosure recovery.
Please contact us at info@gmhf.com or 800.277.2258 if you would like more information on this program.
Click here to download more informtion on GMHF's Foreclosure Recovery NCST Program.
Click here to download GMHF's Foreclosure Recovery NCST Program Application (Narrative) part 1 of 2.
Click here to download GMHF's Foreclosure Recovery NCST Program Application (Budget) part 2 of 2.
(1) Includes all sheriff’s sales of residential property as collected by HousingLink in statewide surveys of sheriff’s sales for 2005-
2010. This is a conservative count since it does not calculate countless short sales in which a family sells their home at a loss
with the lender’s permission.
(2) GMHF has partnered with the National Community Stabilization Trust (GMHF-NCST) to provide developers with the opportunity to acquire bank-owned properties that are discounted due to bad market conditions, declining values and current risk. Property discounts are geared to reflect lower values due to housing conditions and assumptions of risk in disposing of bank-owned REO properties. GMHF-NCST facilitates these transactions in order to pass savings along to provide a more affordable unit to end homebuyers. Access to NCST properties is reserved exclusively for use with GMHF interim financing through the Public-Private Foreclosure Recovery Program.
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