During the week of May 8, the Minnesota House and Senate passed the “First-Generation Homebuyers Down Payment Assistance Fund” program, which was included in the final version of the omnibus housing finance bill (HF 2335). On Monday, May 15, Governor Walz signed HF 2335 into law.
This pilot program was brought forward by a diverse coalition of groups led by Minnesota Realtors® (MNR), the Minnesota Homeownership Center (the Center), and Twin Cities Habitat for Humanity.
MNR and the Center commissioned a study that revealed lack of sufficient capital for a down payment was a key barrier to homeownership. Realizing the scope of the problem, MNR and the Center sought other partners, and enlisted Twin Cities Habitat for Humanity. From there, more groups joined the fold and soon a coalition was advocating for passage of the “First-Generation Homebuyers Down Payment Assistance Fund” at the Capitol.
The $150 million appropriated in the omnibus housing finance bill for down payment assistance for first-generation homebuyers, and specifically the $100 million in this for the coalition’s proposed pilot program (to be administered by Midwest Minnesota Community Development Corporation in partnership with CDFIs, nonprofits, and Tribal entities around the state), will open the door to homeownership for thousands of first-generation buyers —particularly those in communities of color. “It will help advance the goal of closing the racial homeownership gap in Minnesota and getting more first-generation homebuyers over the down payment barrier and into homeownership,” Julie Gugin, president of the Center, said.
Funds will be available in 2024.
Learn more at firstgendpa.org