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Attachment 1 HOUSING AFFORDABILITY INITIATIVES Under Administrative Rules (pending) governing issuance of mortgage revenue bonds, a "housing affordability initiative" must meet one or more of the following criteria: 1, The new construction program is accepted and or designated under The United States Department of Housing and Urban Development (HUD) Affordable Housing Program or any successor p rogram sponsored by HUD to encourage affordable, newly constructed housing. 2. The ro ram provides that financial resources, other than those necessary to complete the i� � mortgage revenue bond sale} are applied to reduce the cost of the housing or improve the terms of the mortgage loans provided. A contribution greater than, or equal to, five percent of the purchase price of each nearly constructed hone to be financed with mortgage revenue bond P roceeds must be provided. Such contributions may be provided either in whole, or in art: from federal* state, or local government resources or programs, private foundations, or the Federal Housing Finance Board. 3. The applicable local government must take steps to relax regulations for newly constructed Domes that result in greater housing affordability. These steps must reduce the cost of the housing by at least five percent. 4. The ro ram supports the efforts of housing groups that support self-help and/or owner built � �• , � r materials needed to housing initiatives �n which at least 1 percent of the labor and/or complete the construction of each house is acquired or donated through the efforts of such groups. 5. Housing is constructed by a nonprofit entity (as defined in Minnesota Rules Part 4900.01 00, subpart 1). The nonprofit must have the development of affordable housing as its primary mission.