35 million dollar economic plan passed. Missouri Housing Developement Commission

Subject: $35 million economic development package passed at MHDC

As Chair of the Missouri Housing Development Commission, I am
very excited to announce that moments ago we passed a $35
million economic development initiative. This initiative, first
unveiled by Governor Jay Nixon and myself on November 24, will
provide property tax relief to thousands of qualified middle-
and low-income Missouri homebuyers, create and protect
potentially thousands of good-paying jobs and help improve
energy-efficiency in Missouri housing.

The $35 million package was approved at today's MHDC meeting,
which was webcast live for the first time ever in an effort to
bring increased transparency to the housing agency. The package
provides:

1. $15 million to pay the first year of property taxes for
qualified homebuyers who purchase a new or existing home after
January 1, 2010. This has the opportunity to help between 9,000
and 11,000 Missouri families making less than $100,000 a year.

2. $15 million to finance and begin construction on affordable
multi-family housing. This will create and save thousands of
jobs at a time when Missouri unemployment is over 9% and allow
us to continue to make quality affordable housing available to
all Missourians.

3. $5 million in assistance to qualified homebuyers to help
with down payments and closing costs. This helps potential
homebuyers overcome the obstacle of coming up with enough cash
for a down payment and closing costs. MHDC has been a national
leader on this front.
4. Additional assistance to homebuyers who purchase an
energy-efficient home or purchase energy-saving appliances. This
is an opportunity to raise energy-efficiency standards in
Missouri, making a positive impact on both the economy and the
environment. It's a win-win.

This economic development package provides property tax relief
to thousands of Missourians at a crucial time in our economy
without spending Missouri tax dollars. This will be paid for
entirely out of MHDC's reserve fund and federal recovery funds
already in our possession. This comes in addition to more than
$100 million in recovery funds and more than $19 million in
reserves already allocated to boost Missouri's economy and put
Missourians back to work.

My goal as Chair is to ensure MHDC is playing a pivotal role in
Missouri's economic recovery and I believe we are doing that.
The agency already offers competitive interest rates on home
loans for qualified borrowers and a cash assistance loan plan
for first-time homebuyers to help with down payments and closing
costs. MHDC has also been a national leader in allowing
Missourians to use the $8,000 federal first-time homebuyer tax
credit up front for a down payment or closing costs. This
program has been a success and will continue until at least
April of 2010.

At a time when economic resources are scarce, it is important
for you to know that I am constantly looking for new and
innovative ways to get our economy moving again as well as ways
to better marshal the tools and resources that are available.

One of those tools is the Missouri Linked Deposit Program, which
provides low-interest loans to qualified small businesses and
family farms. On November 23, I announced the largest-ever small
business loan issued through the program. A small agricultural
company in Marshall qualified for a $3.4 million loan, which
will save the business more than $300,000 over five years
compared to the cost of a regular loan. In addition, the loan
will allow the company to add jobs and expand its customer base.

Thanks to changes made earlier this year to the Missouri Linked
Deposit Program through my Invest in Missouri legislation, I am
able to issue these kinds of loans to more small businesses with
less turnaround time, allowing them to receive much-needed
capital quickly.

Again, this costs Missouri taxpayers nothing. The Missouri
Linked Deposit Program allows us to invest right here in
Missouri to help small businesses that need it the most and who
are playing a pivotal role in our economic recovery.

We have about $200 million in loans already out to small
business throughout Missouri and we still have another $520
million available. To find out more about the Missouri Linked
Deposit Program, click
here(http://www.treasurer.mo.gov/LinkedDeposit.asp).

As always, thank you for your interest and feel free to contact
me with any ideas, feedback, or questions at
clint@clintformissouri.com or 314-645-0555.

Regards,

Clint Zweifel

Missouri State Treasurer