Item Description:
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2024 Homeownership Assistance Program capital funding recommendations - Neg 5 agmts, 05/07/24-5/06/59, total combined NTE $1,245,000
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Resolution:
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BE IT RESOLVED that the Executive Director be authorized to negotiate these Agreements during the period May 7, 2024 through May 6, 2059:
• PR00006253 with City of Lakes Community Land Trust for the CLCLT Sheridan/4th Street North project, with a not to exceed amount of $250,000;
• PR00006254 with Amani Construction for the Queen Townhomes project, with a not to exceed amount of $200,000;
• PR00006252 with Trio Development Group, for the 14th Avenue Townhomes project, with a not to exceed amount of $375,000;
• PR00006255 with Amani Construction, for the Humboldt Triangles project, with a not to exceed amount of $300,000;
• PR00006256 with Magnolia Homes, for the Lowry Avenue project, with a not to exceed amount of $120,000; and
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 Program 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 request for proposals (RFP) which included the Affordable Housing Incentive Fund (AHIF) program, Home Investment Partnerships (HOME) program, and Homeownership Assistance Program was released in January 2024. The RFP garnered nine homeownership applications requesting a total of $4.6 million. 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, Eden Prairie, Bloomington, Brooklyn Park, and St. Louis Park staff.
Homeownership capital funding is typically provided to projects 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.
Attachment A provides further detail on the five projects recommended for funding.
Recommended Project Awards:
PR00006253 - City of Lakes Community Land Trust - Sheridan/4th Street North project - $250,000
Minneapolis; construction of 3 single-family homes for affordable homeownership in a land trust.
PR00006254 - Amani Construction - Queen Townhomes project - $200,000
Minneapolis; construction of 5 townhomes for affordable homeownership.
PR00006252 - Trio Development Group - 14th Avenue Townhomes project - $375,000
Minneapolis; construction of 10 townhouses for affordable homeownership.
PR00006255 - Amani Construction - Humboldt Triangles project - $300,000
Minneapolis, construction of 18 twin-home units for affordable homeownership.
Magnolia Homes - Lowry Avenue project - $120,000
Minneapolis, construction of 6 units in two triplexes for affordable homeownership.
Current Request: This request is to authorize negotiation of five implementation agreements with a total combined not to exceed amount of $1,245,000 under the Homeownership Assistance Program.
Impact/Outcomes: Five projects will assist a total of 42 affordable homeownership opportunities in Hennepin County, with 15 affordable to households with incomes at or below 50 percent of the area median income (AMI), 22 affordable to households with incomes at or below 60 percent of AMI, and 5 units affordable to households at or below 80 percent of 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 the area median income.
recommendation
Recommendation from County Administrator: Recommend Approval