Item Description:
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Neg Agmt PR00008378 with Twin Cities Habitat for Humanity for the construction of affordable homes, 05/12/26-5/12/61, NTE $195,000
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Resolution:
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BE IT RESOLVED that the 2023 Homeownership Assistance Fund award (Resolution 23-HCHRA-0020) to Greater Metropolitan Housing Corporation for a new construction project of a single-family home in Golden Valley, in the amount not to exceed $245,000 (Agreement PR00005306), be rescinded; and
BE IT FURTHER RESOLVED that the Executive Director be authorized to negotiate Agreement PR00008378 with Twin Cities Habitat for Humanity, Inc, for the construction of two new single-family homes during the period May 12, 2026 through May 12, 2061, with a not to exceed amount of $195,000; 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.
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Background:
The Homeownership Assistance Fund was created by the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners (Resolution 21-HCHRA-0046) to create affordable, sustainable homeownership opportunities throughout Hennepin County.
A coordinated affordable housing development request for proposals (RFP) which included the HOME Investment Partnerships (HOME) program, Community Development Block Grant (CDBG), and HCHRA capital funding from the Homeownership Assistance Program was released in December 2025. The RFP garnered eight homeownership applications requesting a total of $2,807,337. Proposals were reviewed and ranked by a multiagency panel consisting of Hennepin County, Eden Prairie, Bloomington, Brooklyn Park, Minneapolis, and St. Louis Park staff.
A total of $195,000 in 2026 HOME funds was awarded to Twin Cities Habitat for Humanity to construct two new single-family homes on vacant parcels in Bloomington (PR00008378, Resolution 26-0165). However, these HOME funds are no longer a viable funding source for the project because development is ready to proceed and the 2026 U.S. Department of Housing and Urban Development (HUD) grant agreement has been delayed. Reallocating Homeownership Assistance funds will allow these homeownership opportunities to advance more quickly and help avoid construction delays for the developer.
Homeownership capital funding is typically provided in the form of a 30-year deferred loan. Loan documents typically include a loan agreement, promissory note, declaration of covenants and restrictions and possibly a mortgage. In addition, during the term of the loan, the HCHRA may be asked to sign various related documents and amendments, including subordination agreements and disbursement agreements.
HOME funds ($195,000) originally awarded to Twin Cities Habitat for Humanity for the Bloomington project will be made available under the 2027 coordinated affordable housing development RFP and reallocated under the 2027 HUD Annual Action Plan in May 2027.
Current Request: Authorize negotiation of Agreement PR00008378 with Twin Cities Habitat for Humanity for the construction of affordable homes using Homeownership Assistance funds instead of federal funds with a not to exceed amount of $195,000.
Impact/Outcomes: The project will create two affordable homeownership opportunities in Hennepin County, with all units affordable to households at or below 80 percent of the area median income.
Housing Disparity Domain: Households of color are disproportionately left out of the homeownership. This request creates homeownership opportunities for individuals with incomes at or below 50 percent, 60 percent and 80 percent of the area median income.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval