HABITAT FOR HUMANITY OF MINNESOTA INC

LOAN PROGRAM:THE MAIN PROGRAM OFFERED BY HABITAT FOR HUMANITY OF MINNESOTA (HFH-MN) IS A LOAN PROGRAM THROUGH WHICH WE PROVIDE A SECONDARY MARKET FOR HABITAT MORTGAGES. AS OF JUNE 30, 2025, WE HAVE FINANCED 976 MORTGAGES FOR AFFILIATES FOR TOTAL LOAN DISBURSEMENTS OF $73 MILLION. OVER 2,750 HABITAT FOR HUMANITY HOMES HAVE BEEN SOLD TO PARTNER FAMILIES IN MINNESOTA SINCE THE LATE 1980S. COLLECTIVELY, THESE MORTGAGES TOTAL OVER $100 MILLION IN PRINCIPAL BALANCES. THESE HOMES ARE SOLD WITH 0% INTEREST OR ZERO-EQUIVALENT MORTGAGES. HOMEOWNER MORTGAGE PAYMENTS ARE USED TO BUILD MORE HABITAT HOMES. (CONTINUED ON SCHEDULE O)THE HABITAT MINNESOTA LOAN FUND ALLOWS HFH-MN TO ACT AS A SECONDARY LENDER FOR MINNESOTA HFH MORTGAGES. AFFILIATES PLEDGE THEIR HOMEOWNERS' MORTGAGES AND MONTHLY MORTGAGE PAYMENTS TO THE FUND. IN RETURN, AFFILIATES GET THE CASH VALUE OF THE MORTGAGE RIGHT AWAY, RATHER THAN HAVING TO WAIT 20 TO 30 YEARS FOR THE PAYMENTS TO COME IN. AFFILIATES THEN USE THIS CASH TO ACCELERATE HOME BUILDING, ACQUIRE LAND FOR LARGE-SCALE PROJECTS, AND LEVERAGE SUPPORT FROM OTHERS. ALL PLEDGED MORTGAGES MUST BE GIVEN TO HOMEOWNERS WITH INCOMES AT OR BELOW 80% OF MEDIAN AT THE TIME THE FAMILY WAS SELECTED. A SUBSET OF THIS LOAN FUND WAS APPROVED AND ROLLED OUT IN FY22. HABITAT HOMEBUYERS MAKING EQUAL TO OR LESS THAN 80% AREA MEDIAN INCOME CAN BE QUALIFIED TO RECEIVE DOWNPAYMENT ASSISTANCE IN THE FORM OF A SUBORDINATE MORTGAGE. THIS SUBORDINATE MORTGAGE LOWERS THE FIRST MORTGAGE AMOUNT, MAKING THEIR PAYMENTS MORE AFFORDABLE, AND FUNDS ARE DISBURSED AFTER CLOSING TO THE HABITAT AFFILIATE WHO DEVELOPED AND SOLD THE PROPERTY. THE HOMEOWNER BEGINS AMORTIZED REPAYMENT OF THE SUBORDINATE MORTGAGE ONLY AFTER THE FIRST MORTGAGE HAS BEEN PAID IN FULL. AS OF JUNE 30, 2025, $8 MILLION HAS BEEN DISBURSED FOR THESE PURPOSES.

DEVELOPMENT SERVICES:IN FY25, WE HELD A REGIONAL HABITAT CONFERENCE IN PARTNERSHIP WITH STATE-WIDE HABITATS FROM IOWA AND ILLINOIS. 78 HABITAT AFFILIATED ORGANIZATIONS FROM 9 STATES ATTENDED THE CONFERENCE. WE PROVIDED TRAINING THAT INCLUDED LEADERSHIP DEVELOPMENT, COMPLIANCE, NEW STAFF ORIENTATIONS, MONTHLY WEBINARS, AND WEEKLY NETWORKING CALLS. WE PROVIDED TECHNICAL ASSISTANCE THAT INCLUDED SUPPORT ON MORTGAGE ORIGINATION, FUNDRAISING, FINANCE, POLICY APPLICATION, AND BOARD DEVELOPMENT.