Item Description:
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Neg Amd 2 to Agmt PR00004768 with MACV, 10/11/22-10/10/52, reducing NTE by $400,000; neg HOME Agmt PR00006324 with MACV, 10/11/22-10/10/52, NTE $400,000
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 2 to Agreement PR00004768 with the Minnesota Assistance Council for Veterans (MACV) for a supportive housing project in Robbinsdale, removing HOME Program Income, with no change to the contract period of October 11, 2022 through October 10, 2052, and decreasing the not to exceed amount by $400,000 for a new not to exceed amount of $700,000 from HOME-ARP; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the amendment 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 County Administrator be authorized to negotiate HOME implementation funding Agreement PR00006324 with MACV for a supportive housing project in Robbinsdale, during the period October 11, 2022 through October 10, 2052, with a not to exceed amount of $400,000; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreement, and other related documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
The Hennepin County Board of Commissioners authorized Agreement PR00004768 (NTE $1,100,000 as amended) with the Minnesota Assistance Council for Veterans (MACV) to create 16 units of supportive housing in downtown Robbinsdale for veterans experiencing and at risk of homelessness (Resolution 22-0406 adopted November 1, 2022; Resolution 22-0510 adopted December 2022). Current funding for Agreement PR00004768 includes HOME American Rescue Plan (HOME-ARP) in the maximum eligible amount of $700,000 and HOME Investment Partnerships (HOME) program income in the amount of $400,000.
Most recent guidance from the U.S. Department of Housing and Urban Development (HUD) suggests that all HOME-ARP agreements be independent of any other funding source.
Staff recommends the following actions to comply with HUD guidance:
• Authorize negotiation of Amendment 2 to PR00004768 to remove HOME Program Income funding and references, thus creating an independent HOME-ARP agreement with a not to exceed amount of $700,000; and
• Authorize negotiation of new Agreement PR00006324 codifying all funding terms for the HOME Program income with a not to exceed amount of $400,000.
Hennepin County HOME and HOME-ARP funding agreements are typically in the form of a 30-40 year loan and must be expended within five years.
Current Request: Authorization to negotiate Amendment 2 to Agreement PR00004768 with MACV, reducing the NTE to $700,000 from HOME-ARP; authorization to negotiate Agreement PR00006324 with MACV for $400,000 from HOME.
Impact/Outcomes: This funding will assist in the creation of 16 affordable rental units for homeless veterans with incomes below 30 percent of the area median income.
recommendation
Recommendation from County Administrator: Recommend Approval