Date: August 23, 2004

Funding available for housing assistance for low-income families

The Missouri Housing Development Commission has announced the availability of $6 million for agencies and organizations providing housing services for very low income individuals and families in Missouri in 2005 through the Missouri Housing Trust Fund (MHTF).

Trust Fund monies must be used to create additional housing units and related housing services to meet the needs of Missouri’s most challenged population, the homeless. Programs targeting preventing homelessness through rent and mortgage assistance, as well as other housing costs, are also given a high priority. Special consideration will be given to proposals targeted to the homeless population, especially proposals that leverage other resources, and provide housing related services.

The MHTF is designed to increase affordable housing opportunities for low-income families. Funding categories include emergency assistance for homeless prevention, housing for the homeless, home repair, construction/rehabilitation, operating support for housing and services for eligible persons, and some rental assistance. All persons assisted by the MHTF must have income at, or below, 50 percent of the median family income for the geographic area (adjusted for family size). Half of the MHTF must be used to assist individuals or families with income at or below 25 percent of the median family income for the geographic area.

The process of granting or loaning funds to housing providers across the state is accomplished by the comparison of competing applications and selection is based on demonstrated need, leveraged financing, targeted population served, economic feasibility, experience of the providers, local support for the program and other revenue sources being used. Requested grants must not exceed 25 percent of the provider’s total operating budget and administrative costs must not exceed 10 percent of the total cost of the proposal or program.

The Trust Fund is supported by a set aside of $3 recording fee from all real estate documents filed in the State of Missouri. The annual funding level depends upon the level of real estate activity. In October 2003, MHDC received 188 applications requesting more than $19 million in 2004 MHTF funding. In January 2004, the Commission approved 121 grants totaling $6.25 million in funding for agencies and organizations providing housing assistance for very low income families.

The Commission will accept applications until 5 p.m., Central Daylight Time, October 19, 2004 in their Kansas City office at 3435 Broadway, Kansas City, MO 64111. Decisions regarding proposals will be made during the month of December 2004.

Applicants with access to the internet should visit our Web site at www.mhdc.com to obtain the 2005 Application Packet, including the MHTF Program Guide, Proposal Information Guide, Application, Selection Criteria and Allocation Plan. These documents are also available on a computer diskette. To request a diskette or printed copy of the Application Packet, please contact Melody Berry at 816.759.7236.