Item Description:
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Submission of HC Consortium HOME-ARP Allocation Plan and substantial amendment to the 2021 HUD Annual Action Plan; neg 1 HOME-ARP award Agmt, 05/12/26-05/12/81, NTE $1,000,000
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Resolution:
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BE IT RESOLVED, that the Hennepin County Consortium HOME-ARP allocation plan and substantial amendment to the 2021 Action Plan 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 matters related thereto; and
BE IT FURTHER RESOLVED, that sponsorship and acceptance of grant funding for the programs by the Hennepin County Board of Commissioners does not imply a continued funding commitment by Hennepin County for these programs when grant funds are no longer available; and
BE IT FURTHER RESOLVED, that acceptance of this award in no way reflects acceptance of terms or conditions that are legally unenforceable against Hennepin County; and
BE IT FURTHER RESOLVED, that the 2024 HOME-ARP award (Resolution 24-0251) to Beacon Interfaith Housing Collaborative for supportive housing in Richfield in the amount not to exceed $1,000,000 (Agreement PR00006195), be rescinded and reallocated for distribution under the HOME-ARP Program as described herein; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00008386 with New Generations LLC, or an affiliated entity, for the Community Corner project in Brooklyn Center, with a not to exceed amount of $1,000,000, during the period May 12, 2026 through May 12, 2081; 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:
On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law, including the appropriation of $5 billion to be administered through the HOME Investment Partnerships (HOME) Program to address the need for homelessness assistance and supportive services.
Hennepin County has been awarded a one-time allocation of $6,415,971 of HOME American Rescue Plan (HOME-ARP) funding on behalf of the Hennepin County Consortium (all Hennepin County Cities except for Minneapolis).
Hennepin County’s HOME-ARP Allocation Plan, adopted September 27, 2022 (Resolution 22-0358), follows the priorities and goals identified in the county’s 2020-2024 Consolidated Plan, the requirements of the American Rescue Plan Act, and HUD Notice CPD-21-10.
To date, HOME-ARP funds have been awarded to three projects. The first two, the Vista 44 project (Resolution 22-0358, Agreement PR00004498, NTE $4,630,000) and the Robin Hotel project (Resolution 22-0510, Agreement PR00004768, NTE $700,000), are fully operational and leased. The third, Aster Commons (Resolution 24-0251, Agreement PR00006195, NTE $1,000,000) was terminated by the developer.
Staff recommend that the reallocation of HOME-ARP funding ($1,000,000) be awarded to New Generations LLC for the Community Corner project in Brooklyn Center. Community Corner will create 31 units of supportive housing for people experiencing and at risk of homelessness. Hennepin County HOME-ARP funding agreements are typically in the form of a 30-40-year loan and must be expended within five years.
Current Request: Approve submission of the Hennepin County Consortium HOME-ARP allocation plan and substantial amendment to the 2021 Action Plan, and authorization to negotiate Agreement PR00008386 with New Generations LLC for the Community Corner project in Brooklyn Center, with a not to exceed amount of $1,000,000.
Impact/Outcomes: This project will create a total of 31 units of supportive housing, including 8 high priority homeless units and 12 units for people with complex medical conditions and homeless.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval