Item Description:
title
Authorize supplemental appropriation to amend the 2023 budget
end
Resolution:
body
BE IT RESOLVED, that the 2023 Hennepin County Housing and Redevelopment Authority budget be amended to provide a supplemental appropriation to increase the revenue and expenditure budget by $9,409,200; and that the budget for HRA Project SRO Acquisition (CP 1009431) be established as $9,409,200; and that the Controller be authorized to transfer funds as directed.
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Background:
In 2023, the Hennepin County Housing and Redevelopment Authority (HCHRA) received approval through Resolution 23-HCHRA-0026 for the sale of Metro Inn (5637 Lyndale Ave. S.), corresponding forgivable loan in the amount of $900,000, and for normal and customary closing costs estimated at $20,000. This resolution gave authorization to negotiate Forgivable Loan Agreement with Agate Housing and Services, or an affiliated entity, for 38 rental housing units located at 5637 Lyndale Ave. South, Minneapolis. It authorized to accept, transfer, and disburse funds as directed.
In 2022, the HCHRA received approval through Resolution 22-HCHRA-0051 for the sale of University Inn (925 4th St SE) and corresponding forgivable loan in the amount of $8,500,000. This resolution gave authorization to negotiate Forgivable Loan Agreement with 925 Studios, LLC, or an affiliated entity, for 45 rental housing units located at 925 4th St. SE., Minneapolis It authorized to accept, transfer, and disburse funds as directed.
Sale of both properties (and corresponding forgivable loans securing long-term affordable housing) occurred in 2023, and the HCHRA is requesting a supplemental appropriation to its 2023 Operating Budget for recognition of the transactions and appropriation of budget.
Fund
Dept ID
Account
Project #
Description
Amount
HRA
REVENUE
37
843400
49120
1009431
Building & Land Sale -General
9,409,200
EXPENSE
37
843400
52902
1009431
HRA: SRO Acquisition
9,409,200
r...
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