Minneapolis is spending nearly $1 million to increase homeownership in the city, especially among minorities.
The Homeownership Opportunity Minneapolis (HOM) program will offer $840,000 for affordability assistance and $100,000 for outreach efforts that are expected to help 125 families this year.
"We're trying to build trust in these communities and regain homeownership as a good, stable investment for families in the city," said Cherie Shoquist, a principal project coordinator for the city.
Minneapolis has long had one of the biggest racial disparity gaps the country, meaning the share of white households that own their homes far exceeds the percentage of nonwhite households that own their homes.
The announcement comes a day after HUD announced a settlement with Associated Bank, which has been accused of a discriminatory lending practice called "redlining."
The deal requires the Green Bay, Wis.-based company to invest nearly $200 million in new mortgages in diverse, economically challenged communities in the Twin Cities and other markets.
Associated, a relative newcomer to the Twin Cities, was the 10th-largest lender in the Twin Cities in 2013 for mortgage originations and has 17 branches throughout the Twin Cities metro and almost 400 employees.
Since late last year, Associated and other lenders and housing professionals have been participating in a voluntary program aimed at increasing minority homeownership in the state. The Homeownership Opportunity Alliance was launched several months ago by the Minnesota Homeownership Center, which is also promoting the city's HOM program with the help of Minnesota Housing.