File #: 24-0524    Version: 1
Type: Resolution Status: Agenda Ready
File created: 11/26/2024 In control: Board of Hennepin County Commissioners
On agenda: 11/19/2024 Final action:
Title: Negotiate 9 Repair + Grow grant agreements, 01/01/25-12/31/27, total combined NTE $17,313,956
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Item Description:

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Negotiate 9 Repair + Grow grant agreements, 01/01/25-12/31/27, total combined NTE $17,313,956

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Resolution:

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BE IT RESOLVED, that the County Administrator be authorized to negotiate the following Repair + Grow Agreements, helping non-profit developers to sustain and increase future affordable housing development, during the period January 2, 2025 through December 31, 2027:

                     Aeon: $7,135,669, PR00006893

                     Agate Housing & Services: $214,070, PR00006897

                     Alliance Housing: $399,832, PR00006892

                     Beacon Interfaith: $1,302,677, PR00006899

                     Clare Housing: $293,528, PR00006898

                     CommonBond Communities: $4,428,912, PR00006890

                     Hope Communities: $322,209, PR00006894

                     Project for Pride in Living: $2,289,425, PR00006896

                     RS Eden: $927,634, PR00006891; 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 county; and that the Controller be authorized to disburse funds as directed; and

 

BE IT FURTHER RESOLVED, that the Hennepin County Board of Commissioners authorizes the County Administrator to revise, as needed, the funding amounts of the Hennepin County Board approved projects in response to potential changes in a specific project's funding requirements providing that such revisions will not result in an increase in the aggregate funding of $17,313,956 for any projects being funded that have not been approved by the board.

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Background:

The 93rd Minnesota Legislature approved a first-ever sales and use tax dedicated to affordable housing, and annual appropriations to the new Statewide Local Affordable Housing Aid fund. The 0.25% Metropolitan Region Sales and Use Tax for housing, plus annual appropriations, will provide an estimated $30 million per year for Hennepin County under the Local Affordable Housing Aid (LAHA) and Statewide Affordable Housing Aid (SAHA) programs. The primary intent of these new funding sources is to increase production of affordable housing in the metropolitan area.

 

In November 2023, the Hennepin County Board affirmed a LAHA/SAHA implementation framework tailored to leverage Hennepin County's unique program-based strengths and strategies to address our deepest racial disparities in housing (Resolution 23-0438). The implementation framework outlined five strategies along the county’s affordable housing continuum, including a one-time program to repair and grow the capacity of affordable housing developers to create more affordable housing (Repair + Grow).

 

This action awards LAHA revenues toward the one-time Repair + Grow program Request for Proposals. The RFP garnered 16 proposals requesting a total of $104M in assistance. Award sizes were based on financial need as determined by a third-party analyst; portfolio size and character (i.e., larger awards for larger portfolios, with weighting for 30% AMI units); and effectiveness of the proposer’s Stabilization Plan.

 

The recommended nine awards will help stabilize 7,959 affordable units across Hennepin County by helping to restore capitalized reserves, develop asset management and property management staff, and helping to expedite lease-ups and unit turns, among other industry best practices.

 

Current request: This request is for authorization to negotiate nine Repair + Grow grant agreements helping non-profit developers to sustain and increase future affordable housing development with a total combined not to exceed amount of $17,313,956.

 

Impact/Outcomes: The nine awards will help stabilize 7,959 affordable units across Hennepin County.

 

Housing Disparity Domain: Households of color are disproportionately housing cost burdened at or below 50% AMI. This request helps stabilize existing housing, and develop new housing, affordable at or below 50% AMI.

 

 

recommendation

Recommendation from County Administrator: Recommend Approval