Item Description:
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Submission of substantial amendment to the 2023 HUD Annual Action Plan; Neg 2 award modifications, 07/01/25-06/30/70, total combined NTE $1,000,000
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Resolution:
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BE IT RESOLVED, that the 2023 HOME Investment Partnerships Program award to Project for Pride in Living to develop affordable rental housing units in Brooklyn Center in the amount not to exceed $1,000,000 (Agreement PR00005266, Resolution 23-0175); be rescinded and reallocated for distribution under the HOME Investment Partnership Program; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate modifications to two 2025 HOME Investment Partnerships Program awards approved under Resolution 25-0192, reallocating the rescinded award herein, during the period July 1, 2025 through June 30, 2070:
• PR00007246 with JO Companies LLC, or an affiliated entity, for the Penn Station project, increasing the not to exceed amount by $560,000 for a new total not to exceed amount of $908,174;
• PR00007247 with Common Bond Communities, or an affiliated entity, for the South Shore Park and Westonka Estates project, increasing the not to exceed amount by $440,000 for a new total not to exceed amount of $990,000;
that the following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the agreements and other necessary documents on behalf of the county; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that a substantial amendment to the 2023 Annual Action Plan, reallocating up to $1,000,000 in 2023 HOME Investment Partnerships Program funding be approved; that the plan be submitted to the U.S. Department of Housing and Urban Development; and that the County Administrator be designated as the authorized official to act on behalf of Hennepin County in matter related thereto.
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Background:
The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County to adopt a Five-Year Consolidated Plan and an Annual Action Plan to receive HUD entitlement funds, including the HOME Investment Partnerships (HOME) Program. To reallocate these HOME funds to other activities, the Consortium is required to create a substantial amendment to the impacted Action Plan.
Resolution 23-0175 approved the 2023 Action Plan and awarded $1,000,000 in HOME funding to Project for Pride in Living to develop affordable rental housing units in Brooklyn Center (Agreement PR00005266); this project subsequently terminated. The 2025 Coordinated Affordable Housing RFP process identified the proposed use of the reallocated funds to two affordable housing developments: $560,000 to JO Companies LLC for the Penn Station project in Richfield, and $440,000 to CommonBond Communities for the South Shore Park and Westonka Estates project in Excelsior and Mound.
This change constitutes a substantial amendment as it changes the scope of an activity and increases the amount awarded to an activity by more than 50 percent of the original budget.
A notice for public comment was published in the Finance and Commerce newspaper on May 8, 2025 for a 30-day public comment period.
Current Request: This request is for approval of the substantial amendment to the HUD 2023 Annual Action Plan, and authorization to negotiate two award modifications with a total combined not to exceed amount of $1,000,000 under the HOME Investment Partnerships Program.
Impact/Outcomes: The reallocation of funds to the Penn Station and South Shore Park and Westonka Estates projects will create or preserve a total of 151 units of affordable housing, including 38 units for households at or below 30 percent of the area median income.
recommendation
Recommendation from County Administrator: Recommend Approval