Item Description:
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Neg Agmt PR00006401 with NeighborWorks Home Partners for homebuyer assistance program funding, 07/01/24-06/30/25, NTE $204,616
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Resolution:
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BE IT RESOLVED, that the unspent 2020 and 2021 CDBG allocations to the City of Brooklyn Center (Agreements PR00002195 in the amount of $65,000 and PR00003270 in the amount of $70,000) be reallocated for distribution as described herein; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00006401 with Community Neighborhood Housing Services dba NeighborWorks Home Partners for a homebuyer assistance program during the period July 1, 2024 through June 30, 2025, with a not to exceed amount of $204,616; 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:
Hennepin County is the lead entitlement agency for the Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development (HUD) on behalf of suburban Hennepin County (recognizing that the cities of Bloomington, Eden Prairie, and Plymouth directly receive/implement CDBG funds in their communities).
Hennepin County's 2024 Action Plan, adopted May 14, 2024 (Resolution 24-0186) included a $69,616 CDBG allocation to homebuyer assistance for the suburban cities participating in the consolidated funding pool. Hennepin County’s 2020 Action Plan (Resolution 20-0186) and 2021 Action Plan (Resolution 21-0162) included CDBG allocations to the City of Brooklyn Center to fund homebuyer assistance, of which $135,000 remains unspent (Agreements PR00002195 in the amount of $65,000 and PR00003270 in the amount of $70,000).
To program these funds, a Request for Proposals (RFP) for a Homebuyer Assistance Program Administrator(s) was released in May 2024. The aim of this program is to improve homeownership opportunities in Hennepin County for historically underserved communities by contracting with an Administrator(s) experienced in engaging and supporting households with barriers to generational wealth.
NeighborWorks Home Partners was the only applicant and met all program criteria. NeighborWorks demonstrated significant experience and expertise in financial coaching and engaging communities who face systemic barriers and gaps, including low- to moderate-income households, households led by Black, Indigenous, and People of Color, those affected by exclusionary practices, and those who have unique cultural needs. NeighborWorks most recently demonstrated these successes in launching the Hennepin County Housing and Redevelopment Authority’s Homebuyer Assistance Program earlier this year.
The CDBG homebuyer assistance program will focus on affordable and sustainable homeownership by providing scaled financial assistance based on household income, with larger amounts for households with lowest incomes. Eligible households must have incomes at or below 80 percent of the area median income. The CDBG homebuyer assistance program will provide support and direct financial assistance to approximately 6-10 families buying homes in suburban Hennepin County.
Current Request:
This request is to authorize negotiation of Agreement PR00006401 with NeighborWorks Home Partners for homebuyer assistance program funding during the period July 1, 2024 through June 30, 2025, with a not to exceed amount of $204,616.
Impact/Outcomes:
This funding will assist in the creation of 6-10 affordable homeownership opportunities.
Housing Disparity Domain:
Households of color are disproportionately left out of homeownership. This request creates homeownership opportunities for individuals with low- to moderate incomes.
recommendation
Recommendation from County Administrator: Recommend Approval