MCASA HOMES
MCASA, LLC is a partnership between Model Cities Community Development Corporation and Aurora St. Anthony Neighborhood Development Corporation. The mission of MCASA is to create affordable home ownership opportunities for low income families. This mission is carried out in a project known as MCASA Homes. MCASA Homes develops new-construction and rehabilitation home-ownership opportunities that target families with annual household incomes at or below 80% of the Area Median Income (no more than $62,000).
MCASA Homes markets to families who have had previous difficulty qualifying for conventional mortgage financing, primarily due to debt-related issues and/or low credit scores. Consequently, these families require support services (e.g., home ownership training, housing counseling and debt counseling) in order to stabilize their finances and prepare them for home ownership.
MCASA, LLC works with home ownership counselors to provide guidance and assistance to MCASA Homes participants in moving towards homeownership. In addition, a consultant provides case management services on a regular basis to participants. Participants are provided information in areas such as understanding the home-buying process and mortgage financing, financial literacy; debt reduction and management; and predatory lending and foreclosure prevention. These topics are covered in monthly group sessions or by home ownership counselors working one-on-one with purchasers.
MCASA Homes are sold on either a contract-for-deed or a lease-to-purchase basis, depending on the needs of the purchaser. A contract-for-deed is a legal agreement between MCASA and the buyer that outlines the requirements the buyer must fulfill in order to purchase the house. This allows the purchaser to move into the home, enjoy all the benefits of homeownership, and allows time for them to clear up any debt or credit issues in order to secure their own mortgage. Once the buyer completes those requirements, they receive the deed to the house and enjoy full ownership of the property.
Currently, MCASA has constructed six single-family homes located in the Summit-University neighborhood, close to the new Rondo Outreach Library. These newly constructed homes are currently occupied and have 2-stories, and approximately 1700 square feet, with 3 bedrooms and 2 and a half baths. As a part of the City of St. Paul’s Invest St. Paul Initiative (An effort by the City of St. Paul to address blight and disinvestment in neighborhoods. For more information about Invest St. Paul, click on this link: http://ci.saint-paul.mn.us/docs/ISPFactSheet.pdf ), MCASA is planning to rehabilitate an additional 5-7 homes in the Summit-University neighborhood of St. Paul for purchase by first time homebuyers. An additional 3-4 homes will be rehabbed in the Frogtown neighborhood of St. Paul. These new rehabbed homes will have a minimum of three bedrooms, with new kitchens and bathrooms, and will feature similar features as previous MCASA Homes. Rehabilitation of these homes will begin in the spring of 2008, with an anticipated completion and occupancy by December 2008.
MCASA, LLC was selected as a Pilot Project for the Emerging Markets Homeownership Initiative (EMHI) in October 2006. Emerging markets refers to those persons or groups who are underrepresented in homeownership compared to non-Hispanic whites. Four general categories of emerging markets in Minnesota include: African American and recent African immigrants, American Indians, Asian and Pacific Islanders, and Latinos. In the housing industry, these groups are considered “emerging markets.” Emerging markets comprise a growing segment of the housing market, especially first-time homebuyers.
To address this disparity, Minnesota Housing along with 50 other private, nonprofit and public partners, developed a business plan to create 40,000 new emerging market homeowners by the year 2012. The Business Plan was presented to the community in June 2005.
A major component of this plan was the designation of EMHI pilot projects. Pilot projects are recognized as important research and development tools.
In order to qualify as an EMHI pilot project, a project must be innovative and have the potential for wider replication. It must address gaps in the home mortgage process and result in homeownership for more emerging markets households. Another key characteristic of the EMHI pilot project is its involvement of community partners.
In October 2006, MCASA was designated as an EMHI pilot due to its innovative model of addressing homeownership gaps among African American households. As an EMHI pilot, MCASA will participate in opportunities to evaluate the EMHI initiative, share best practices, and participate in mutual dialogue among pilot project participants.
For more information on the EMHI business plan, please visit EMHI's web site at www.emhimn.org.
- Under no circumstances will an applicant for MCASA Homes be discriminated against, due to race, color, religion or national origin, sex, familial status, disability, marital status, sexual orientation, income, or status with regard to public assistance.
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MCASA Brochure (Must have Microsoft Publisher to view)