Item Description:
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2025 Homeownership Assistance Fund capital funding recommendations - Neg 5 agmts, 05/06/25-05/06/60, total combined NTE $1,000,000
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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 6, 2025 through May 6, 2060:
• PR00007290 with City of Lakes Community Land Trust for the Homebuyer Initiated Project, with a not to exceed amount of $250,000;
• PR00007291 with Urban Homeworks for the Northside Homes project, with a not to exceed amount of $150,000;
• PR00007292 with Magnolia Homes LLC, for the Russell/Lilac Dr project, with a not to exceed amount of $100,000;
• PR00007293 with Amani Construction, for the Queen Townhomes project, with a not to exceed amount of $300,000;
• PR00007294 with Twin Cities Habitat for Humanity Inc, for the Minnetonka Mills project, with a not to exceed amount of $200,000; 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 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 request for proposals (RFP) which included the AHIF program, Supportive Housing Strategy, Home Investment Partnerships (HOME) program, and Homeownership Assistance Fund was released in December 2024. The RFP garnered eight homeownership applications requesting a total of $3,040,000. 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 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:
PR00007290 - City of Lakes Community Land Trust - Homebuyer Initiated project - $250,000
Minneapolis; acquisition and rehabilitation of up to 12 single-family homes for affordable homeownership in a land trust.
PR00007291 - Urban Homeworks - Northside Homes project - $150,000
Minneapolis; construction of 4 single family homes for affordable homeownership.
PR00007292 - Magnolia Homes LLC - Russell/Lilac Dr project - $100,000
Minneapolis/Golden Valley; construction of 2 twin-homes totaling 4 units for affordable homeownership.
PR00007293 - Amani Construction - Queen Townhomes - $300,000
Minneapolis, construction of 5 townhome units for affordable homeownership.
PR00007294 - Twin Cities Habitat for Humanity - Minnetonka Mills Twin Homes project - $200,000construction of 4 units in two twin-homes for affordable homeownership.
Current Request: This request is to authorize negotiation of five implementation agreements with a total combined not to exceed amount of $1,000,000 under the Homeownership Assistance Fund program.
Impact/Outcomes: Five projects will create 37 affordable homeownership opportunities in Hennepin County, with 25 affordable to households with incomes at or below 60 percent of the area median income (AMI) and 12 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 60 percent and 80 percent of the area median income.
recommendation
Recommendation from County Administrator: Recommend Approval