Item Description:
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Neg Amend to Agmt PR00001996 with Greater MN Housing Fund for acquisition of naturally occurring affordable housing, extend the term to 12/31/42; no change to NTE
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate an amendment to Agreement PR00001996 with Greater Minnesota Housing Fund, or affiliated entity, to preserve naturally occurring affordable housing, extending the contract end date from February 28, 2040 to no later than December 31, 2042, with no change in the not to exceed amount of $2,000,000; 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 Authority; and that the Controller be authorized to disburse funds as directed.
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Background:
Hennepin County has over 45,000 unsubsidized multifamily rental housing with rents affordable to households with incomes at or below 60 percent of the Area Median Income (AMI). Rents in these “naturally occurring affordable housing” (NOAH) units tend to average from $950 to $1,450 per month. The properties range in size, age, location and ownership. Hennepin County accounts for approximately 50 percent of the NOAH units across the seven-county metropolitan area.
To preserve this valuable resource, the Hennepin County Housing and Redevelopment Authority (HCHRA) approved a $3 million contribution to Greater Minnesota Housing Fund’s (GMHF’s) NOAH Impact Fund in 2016 (Resolution 16-HCHRA-0021). The fund was created to finance the acquisition and preservation of NOAH properties to preserve affordability for the long-term. After that fund preserved 701 affordable units across the region, GMHF launched NOAH Pool 2, to which the HCHRA invested $2 million (Resolution 20-HCHRA-0004). NOAH Pool 2 leverages $26.5 million in additional public, philanthropic, and private investment in addition to the HCHRA investment. The parties, including Program Administrat...
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