Item Description:
title
2025 AHIF funding recommendations - Neg 4 award modifications; neg 5 2025 award agmts, 05/13/25-05/12/80, total combined NTE $6,114,538
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Resolution:
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BE IT RESOLVED, that the unexpended amount of $29,538 from 2022 AHIF award (Resolution 22-HCHRA-0018) to American Indian Community Development Corporation for the Many Rivers West project (Agreement PR00004381), be reallocated for distribution under the 2025 Hennepin County Housing and Redevelopment Authority (HCHRA) budget as described herein; that a budget authority transfer from HRA: AHIF 2024 Project 1010428 to HRA: AHIF 2025 Project 1011474 in the amount of $29,538, be authorized; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the 2023 AHIF awards (Resolution 23-HCHRA-0021) to Reuter Walton Development LLC for the 901 Cedar project in the amount not to exceed $455,000 (Agreement PR00005293), and to Sherman Associates for the Bottineau Commons & Lofts project in the amount not to exceed $545,000 (Agreement PR00005291), be rescinded and reallocated for distribution under the 2025 HCHRA budget as described herein; that a budget authority transfer from HRA: AHIF 2019-2023 Project 1006757 to HRA: AHIF 2025 Project 1010428 in the amount of $1,000,000, be authorized; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that $85,000 unawarded in the 2024 AHIF program (Resolution 24-HCHRA-0015) be reallocated for distribution under the 2025 HCHRA budget as described herein; that a budget authority transfer from HRA: AHIF 2024 Project 1010428 to HRA: AHIF 2025 Project 1011474 in the amount of $85,000, be authorized; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate the following Agreements during the period May 13, 2025 through May 12, 2080:
• PR00007240 with Solhem Development, LLC or affiliated entity, for the 1345 Central project, with a not to exceed amount of $896,000;
• PR00007242 with CommonBond Communities or affiliated entity, for the Bloomington Family Townhomes project, with a not to exceed amount of $750,000;
• PR00007243 with VY Enterprise & One Stop African Market or affiliated entity, for the LOMA project, with a not to exceed amount of $600,000;
• PR00007244 with CommonBond Communities or affiliated entity, for the South Haven & Summit Point project, with a not to exceed amount of $1,206,000;
• PR00007245 with CommonBond Communities or affiliated entity, for the South Shore Park & Westonka Estates project, with a not to exceed amount of $536,000;
that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate modifications to three 2024 AHIF Agreements approved under Resolution 24-HCHRA-0015, recognizing additional funding awarded from 2025 AHIF Program, and extending the contract period from May 6, 2079 to May 12, 2080:
• PR00005294 with Little Earth of United Tribes Housing Corporation, or affiliated entity, for the Little Earth project, increasing the not to exceed amount by $478,538 for a new total not to exceed amount of $1,682,675;
• PR00006154 with Alliance Housing Inc., or affiliated entity, for the 2116 Nicollet project, increasing the not to exceed amount by $742,000 for a new total not to exceed amount of $1,072,000;
• PR00006227 with Noor Development Group and Project for Pride in Living, or affiliated entity, for the Zaria project, increasing the not to exceed amount by $906,000 for a new total not to exceed amount of $1,246,000;
that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreements and related documents on behalf of the Authority; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate a modification to 2020 Affordable Housing Incentive Fund (AHIF) award (Resolution 20-HCHRA-0019) with Duffy Development Company, Inc., or an affiliated entity, for the Rogers Main Street Senior Housing project (Agreement PR00002185) extending the permissible contract end date from May 11, 2065 to December 31, 2070, with no change to the not to exceed amount of $300,000; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreement and related documents on behalf of the Authority; and that the Controller be authorized to disburse funds as directed.
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Background:
The Affordable Housing Incentive Fund (AHIF) Program was created by the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners (Resolution 08-HCHRA-00) to work with municipalities, other government and nonprofit agencies, private and nonprofit developers, and lenders to encourage the preservation and development of affordable housing opportunities throughout Hennepin County.
The Coordinated Affordable Housing Development Request for Proposals (RFP) was released in December 2024. The RFP included AHIF, Supportive Housing Strategy, Homeownership Assistance Fund, and federal HOME funds, and garnered 22 qualified multifamily rental applications requesting approximately $28 million. Proposals were reviewed by Housing and Economic Development and Health and Human Services staff for consistency with county priorities. Proposals were then reviewed and ranked by a multiagency panel.
AHIF funding is typically provided in the form of a 30- to 50-year deferred loan. Loan documents include a loan agreement, promissory note, mortgage, and declaration of covenants and restrictions. In addition, at the project’s financial closing and during the term of the loan, the HCHRA may be asked to sign various related documents and amendments, including subordination agreements and disbursement agreements.
Since 2000, and including the recommended 2025 awards, the AHIF Program has committed approximately $126 million to affordable housing projects, leveraging over $2.26 billion dollars in additional investment to assist the development and/or preservation of nearly 12,000 affordable housing units in Hennepin County.
Recommended Project Awards:
1345 Central - PR00007240 - Solhem Development, LLC - $896,000
1345 Central Ave Northeast, Minneapolis; construction of 64 affordable rental units (16 units affordable and restricted to households at or below 30 percent of AMI; 48 units at or below 50 percent of AMI; 14 units with rental assistance; 14 units for large families)
Bloomington Family Townhomes - PR00007242 - CommonBond Communities - $750,000
4810 Nord Drive and adjacent addresses in Bloomington; preservation of 20 affordable rental units (4 units affordable and restricted to households at or below 30 percent of AMI; 16 units at or below 50 percent of AMI; 17 units for large families)
The LOMA - PR00007243 - VY Enterprise & One Stop African Market - $600,000
3246 Nicollet Avenue South, Minneapolis; construction of 62 affordable multigenerational rental units for seniors (30 units affordable and restricted to households at or below 30 percent of AMI; 32 units at or below 50 percent of AMI; 15 units for people exiting homelessness; 31 units with rental assistance; 16 units for large families)
South Haven & Summit Point - PR00007244 - CommonBond Communities - $1,206,000
3400 Parklawn Ave & 5010 Summit Ave in Edina; preservation of 129 affordable rental units for seniors (26 units affordable and restricted to households at or below 30 percent of AMI; 103 units at or below 50 percent of AMI; 13 units for people exiting homelessness; 129 units with rental assistance)
South Shore Park & Westonka Estates - PR00007245 - CommonBond Communities - $536,000
255 Mill Street, Excelsior & 2461 Commerce Boulevard, Mound; preservation of 109 affordable rental units for seniors (22 units affordable and restricted to households at or below 30 percent of AMI; 87 units at or below 50 percent of AMI; 11 units for people exiting homelessness; 109 units with rental assistance)
2024 AHIF Project Award Modifications:
Little Earth - PR00005294 - Little Earth of United Tribes Housing Corporation - increasing the contract by $478,538
2501 Cedar Avenue South and adjacent addresses in Minneapolis; preservation of 212 affordable rental units (44 units affordable and restricted to households at or below 30 percent of AMI; 168 units at or below 50 percent of AMI; 22 units for people exiting homelessness; 212 units with rental assistance; 106 units for large families)
2116 Nicollet - PR00006154 - Alliance Housing Inc - increasing the contract by $742,000
2116 Nicollet Ave South, Minneapolis; construction of 53 affordable rental units (41 units affordable and restricted to households at or below 30 percent of AMI and below; 12 units at or below 50 percent of AMI; 11 units for people exiting homelessness; 19 units with rental assistance)
Zaria - PR00006227 - Noor Development Group & Project for Pride in Living - increasing the contract by $906,000
3030 Nicollet Avenue South, Minneapolis; construction of 89 affordable rental units (29 units affordable and restricted to households at or below 30 percent of AMI, 60 units at or below 50 percent of AMI; 9 units for people exiting homelessness; 29 units with rental assistance; 30 units for large families)
Attachment A provides further detail on the eight projects recommended for funding.
Current Request: This request is for authorization to negotiate four award modifications and five implementation agreements with a total combined not to exceed amount of $6,114,538 under the 2025 AHIF Program.
Impact/Outcomes: Eight projects will create or preserve a total of 738 affordable housing units in Hennepin County; projects will include 212 units for households with incomes at or below 30 percent of AMI, 526 units for households with incomes at or below 50 percent of AMI, and 81 units designated and reserved for people experiencing homelessness.
Housing Disparity Domain: Households of color are disproportionately housing cost burdened, and experience housing instability, including homelessness, at disproportionate rates. This request creates housing opportunities for individuals with incomes at or below 30 percent and 50 percent of the area median income, and creates units specifically reserved for people experiencing homelessness.
recommendation
Recommendation from County Administrator: Recommend Approval