Item Description:
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2026 Homeownership Assistance Fund funding recommendations - Neg 5 Agmts, total combined NTE $1,570,742; transfer $300,000 in budget authority from Capital Project 1006757 to Capital Project 1009192
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Resolution:
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BE IT RESOLVED, that repayment proceeds in the amount of $9,742 from Twin Cities Habitat for Humanity for a 2001 AHIF project (Agreement A020517) be received and reallocated for distribution under the 2026 Hennepin County Housing and Redevelopment Authority (HCHRA) Capital Budget (Fund 37) as described herein; that a supplemental appropriation to the 2026 HCHRA Special Project Fund 37 budget for the capital project 1009192: HRA: Homeownership Assistance in the amount of $9,742 be authorized; and that the Controller be authorized to accept and disperse funds as directed; and
BE IT FURTHER RESOLVED, that the unexpended amount of $300,000 from 2020 AHIF award (Resolution 20-HCHRA-0019) to the City of Lakes Land Trust for scattered site project (Agreement PR00002183) be reallocated for distribution under the 2026 HCHRA Capital Budget (Fund 37) as described herein; that a budget authority transfer from capital project 1006757: HRA: Affordable Housing 2019-2023 to capital project 1009192: HRA: Homeownership Assistance in the amount of $300,000 be authorized; and that the controller be authorized to disperse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate the following Agreements during the period May 12, 2026 through May 12, 2061:
• PR00008380 with City of Lakes Community Land Trust for acquisition and rehabilitation of up to 15 single-family homes for affordable homeownership in a land trust, with a not to exceed amount of $550,000;
• PR00008385 with Outlaw Development, or affiliated entity, for the construction of 2 single family homes for affordable homeownership in Bloomington, with a not to exceed amount of $200,000;
• PR00008379 with Magnolia Homes LLC, or affiliated entity, for the construction of 2 twin-homes totaling 4 units for affordable homeownership in Bloomington, with a not to exceed amount of $160,000;
• PR00008377 with Twin Cities Habitat for Humanity Inc, for the construction of 1 single family home for affordable homeownership in Golden Valley, with a not to exceed amount of $85,742;
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 Agreement PR00008373 with Neighborworks Home Partners for administration of down payment assistance, with a not to exceed amount of $575,000, during the period of May 12, 2026 through May 12, 2031; 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 Homeownership Assistance Fund was created by the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners (Resolution 21-HCHRA-0046) as part of the annual budget to create affordable, sustainable homeownership opportunities throughout Hennepin County.
A coordinated affordable housing development request for proposals (RFP) which included the Affordable Housing Incentive Fund (AHIF) program, Supportive Housing Strategy, HOME Investment Partnerships (HOME) program, Community Development Block Grant (CDBG) and Local Affordable Housing Aid (LAHA) was released in December 2025. The RFP garnered eight homeownership applications requesting a total of $2,807,337. Proposals were reviewed by Housing and Economic Development staff for consistency with county priorities. Proposals were reviewed and ranked by a multiagency panel consisting of Hennepin County, and staff representing several Hennepin County cities.
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.
Recommended Project Awards:
City of Lakes Community Land Trust - PR00008380 - Homebuyer Initiated project - $500,000;
Minneapolis; acquisition and rehabilitation of up to 15 single-family homes for affordable homeownership in a land trust.
Outlaw Development - PR00008385 - Bloomington single family project - $200,000;
Bloomington; construction of 2 single family homes for affordable homeownership.
Magnolia Homes LLC - PR00008379 - Bloomington Twin-home project - $160,000; Bloomington; construction of 2 twin-homes totaling 4 units for affordable homeownership.
Twin Cities Habitat for Humanity - PR00008377 - Golden Valley project - $85,742; construction of 1 single family home for affordable homeownership.
Neighborworks Home Partners - administer down payment assistance to 28 home buyers prioritizing first generation buyers.
Attachment A provides a summary of the five projects recommended for funding.
Current Request: Authorize negotiation of five implementation agreements with a total combined not to exceed amount of $1,570,742 under the Homeownership Assistance Fund program.
Impact/Outcomes: Five projects will create 50 affordable homeownership opportunities in Hennepin County, with all units affordable to households at or below 80 percent of the area median income (AMI).
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 AMI.
recommendation
Recommendation from County Administrator: Recommend Approval