State plots new affordable housing programs, despite cuts

The state's housing finance agency is planning new programs to help underwater homeowners and neighborhoods recover from the housing crisis.

Minnesota Housing Thursday laid out its Affordable Housing Plan for the next year, which runs from this month through the end of next September.

The budget makes available $658 million for affordable housing — that's $43 million less than the current budget. The decline in funding is due to less available federal and state funds, and a cut which was required last year by the Legislature.

Commissioner Mary Tingerthal said despite the decline, the agency will continue to address the foreclosure crisis through several programs.

"One will be to assist borrowers with financing to purchase homes in neighborhoods hard hit by foreclosure," Tingerthal said. "The other will be helping people who already live in those areas to get home improvement loans."

Minnesota Housing's plan also includes efforts to end long-term homelessness and other programs to preserve low- and moderate-income housing and rentals.