Item Description:
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Submission of substantial amendment to the 2022 and 2024 HUD Annual Action Plans; Neg 2 award modifications, 07/01/25-06/30/70, total combined NTE $950,000; Neg 1 HOME Agreement, 8/13/25-8/12/70, NTE $900,000
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Resolution:
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BE IT RESOLVED, that the substantial amendments to the 2022 and 2024 U.S. Department of Housing and Urban Development (HUD) Annual Action Plans to reallocate up to $1,850,000 of HOME Investment Partnerships (HOME) Program funding and $234,180 of Community Development Block Grant (CDBG) funding be approved; that the plan be submitted to the U.S. Department of Housing and Urban Development; and that the County Administrator be designated as the authorized official to act on behalf of Hennepin County in matter related thereto; and
BE IT FURTHER RESOLVED, that the 2022 HOME award to MWF Properties, LLC to develop affordable rental housing units in Richfield in the amount not to exceed $550,000 (Agreement PR00004361), and the 2024 HOME award to Duffy Development to develop affordable rental housing units in Brooklyn Park in the amount not to exceed $1,300,000 (Agreement PR00006189), be rescinded and reallocated for distribution under the HOME program; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate modifications to two 2025 HOME awards approved under Resolution 25-0192, recognizing the rescinded awards herein, during the period July 1, 2025, through June 30, 2070:
• PR00007295 with West Hennepin Affordable Housing Land Trust, or an affiliated entity, for the Homes Within Reach project, increasing the not to exceed amount by $550,000 for a new total not to exceed amount of $1,050,000;
• PR00007323 with St. Louis Park Housing Authority, or an affiliated entity, for the Stable Home - Tenant Based Rental Assistance project, increase the not to exceed amount by $400,000 for a new total not to exceed amount of $650,000;
that the following review and approval by the County Attorney’s Office, the County Administrator and Chair of the Board be authorized to execute the agreements and other necessary documents; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, the County Administrator be authorized to negotiate Agreement PR00004841 with Lupe Development Partners, LLC, or an affiliated entity, for the American Legion Apartments project, during the period August 13, 2025 through August 12, 2070, with a not to exceed amount of $900,000; that the following review and approval by the County Attorney’s Office, the County Administrator and Chair of the Board be authorized to execute the agreement and other necessary documents; and that the Controller be authorized to disburse funds as directed.
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Background:
The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County to adopt a Five-Year Consolidated Plan and an Annual Action Plan to receive HUD entitlement funds, including the Community Development Block Grant (CDBG), and HOME Investment Partnerships (HOME). To allocate or reallocate CDBG and HOME funds to activities, the Consortium is required to create an amendment to the impacted Action Plan.
The 2022 Action Plan (Resolution 22-0177) allocated $550,000 from HOME to MWF Properties, LLC to develop affordable rental housing units in Richfield (PR00004361) and the 2024 Action Plan (Resolution 24-0186) allocated $1,300,000 to Duffy Development to develop affordable housing units in Brooklyn Park (PR00006189); these projects subsequently terminated. The 2025 Coordinated Affordable Housing RFP process proposed reallocation of these unused funds to three affordable housing projects: $550,000 to West Hennepin Affordable Housing Land Trust for the Homes Within Reach project, $900,000 to Lupe Development Partners, LLC for the American Legion Apartments project in Richfield, and $400,000 to St. Louis Park Housing Authority for the Stable Home - Tenant Based Rental Assistance project.
The 2024 Action Plan (Resolution 24-0186) allocated $385,172 of CDBG funds to Brooklyn Park (PR00006207), of which Brooklyn Park intended to use $234,180 for the Zanewood Teen Center public facility renovation. Brooklyn Park will shift these funds to the Brooklyn Park Housing Rehabilitation program.
The substantial amendments were made available to the public for the HUD required 30-day public comment period between June 24, 2025, and July 25, 2025. Public comments will be incorporated into the final document submitted to HUD.
Current Request: This request is for approval of the substantial amendment to the HUD 2022 and 2024 Annual Action Plan, authorization to negotiate two award modifications with a combined not to exceed amount of $950,000 from July 1, 2025 through June 30, 2070, and authorization to negotiate one new HOME Agreement with a not to exceed amount of $900,000 from August 13, 2025 through August 12, 2070.
Impact/Outcomes: Four projects will create or preserve a total of 167 units of affordable housing to low- and moderate-income households and provide emergency rental assistance to 40 households at or below 50 percent of AMI.
recommendation
Recommendation from County Administrator: Recommend Approval