Item Description:
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Neg Amd 2 to Agmt A06174 with Wayside Jersey Avenue Supportive Housing extending term to 10/31/33, amend and restate related documents, no change to NTE
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 2 to Agreement A06174 with Wayside Jersey Avenue Supportive Housing, LLC, or affiliated entity, for Wayside Supportive Housing located at 1341 and 1349 Jersey Avenue, St. Louis Park, extending the contract period to October 31, 2033, with no change in the not to exceed amount of $600,000, and amending and restating related documents as necessary; 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 county; and that the controller be authorized to disburse funds as directed.
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Background:
Wayside Supportive Housing is a 20-unit affordable rental project located at 1341 and 1349 Jersey Avenue South in St. Louis Park. Wayside Supportive Housing includes 20 two-bedroom units, 17 of which have project-based Section 8 Vouchers from the Housing Authority of St. Louis Park, allowing tenant households to pay no more than 30 percent of their income towards rent.
The county awarded the project HOME funds in 1993 for acquisition and rehabilitation. The HOME funds were structured as a 30-year deferred loan, which comes due and payable in October 2023. Separately, the project has also received two Affordable Housing Incentive Fund (AHIF) awards from the Hennepin County Housing and Redevelopment Authority (HCHRA): a $120,000 deferred loan expiring 2033, and a $85,000 grant with a declaration expiring in 2038.
Wayside has experienced significant operating losses due to changes in service and operating funding and other market pressures. While these challenges threaten the sustainability of the project, the October 2023 HOME loan repayment date has prevented productive long-term planning.
To facilitate further planning, Wayside has requested a 10-year extension of the HOME loan term to match the AHIF loan term. Wayside would use the additional time to determine the best path forward to maintain the affordability.
Current Request: This request is for authorization to negotiate Amendment 2 to Agreement A06174 with Wayside Jersey Avenue Supportive Housing to extend the loan and compliance period to October 31, 2033, with no change to the loan amount of $600,000.
Impact/Outcomes: Approval of this request will facilitate strategies for preservation of 20 affordable housing rental units.
Housing Disparity: This board action request aligns with Hennepin County’s disparity reduction efforts by preserving affordable housing opportunities for households with extremely low incomes.
recommendation
Recommendation from County Administrator: Recommend Approval