Coversheet

Housing and Redevelopment Authority Board Action Request
21-HCHRA-0016


Item Description: 2021 AHIF funding recommendations - Neg 11 2021 award agmts, 05/12/21-05/10/66, total combined NTE $6,100,000; neg Agmt PR00003356 with CommonBond Communities for Rise on 7, 05/12/21-05/10/45, NTE $1,771,294; supp app to 2021 HCHRA budget

Resolution:

BE IT RESOLVED, that repayment proceeds in the amount of $46,213 from Community Involvement Programs for 1816 Zephyr Place (2009 AHIF award, Agreement A100513), $702,767 from Autumn Ridge Limited Partnership for Autumn Ridge Apartments (2007 AHIF award, Agreement A070927), and $1,022,314 from Loring Towers Preservation Limited Partnership for Loring Towers (2003 AHIF award, Agreement A040036), be received and reallocated for distribution under the 2021 Hennepin County Housing and Redevelopment Authority (HCHRA) budget as described herein; that a supplemental appropriation to the 2021 HCHRA Special Projects budget (HRA: AHIF 2019-2023 - Project 1006757) in the amount of $1,771,294 be authorized; and that the Controller be authorized to accept and disburse funds as directed; and

BE IT FURTHER RESOLVED, that the 2020 Affordable Housing Incentive Fund (AHIF) awards (Resolution 20-HCHRA-0019) to Duffy Development for the Rogers Main Street Workforce Housing project (Agreement PR00002255), in the amount not to exceed $300,000, and to MWF Properties, LLC for the Lofts at Anderson Reserve project (Agreement PR00002180), in the amount not to exceed $300,000, be rescinded and reallocated for distribution under the 2021 HCHRA budget as described herein; that a supplemental appropriation to the 2021 HCHRA Special Projects budget (HRA: AHIF 2019-2023 - Project 1006757) in the amount of $600,000 be authorized; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate these Agreements during the period May 12, 2021 through May 10, 2066:

PR00003351 with City of Lakes Community Land Trust, or affiliated entity, for the Homebuyer Initiated Program project, with a not to exceed amount of $400,000;
PR00003354 with CommonBond Communities, or affiliated entity, for the Rise on 7 project, with a not to exceed amount of $950,000;
PR00003347 with Duffy Development Company, or affiliated entity, for the Tessman Ridge Apartments project, with a not to exceed amount of $925,000;
PR00003345 with Ecumen and Lupe Development, or affiliated entity, for the Cornelia View project, with a not to exceed amount of $665,000;
PR00003346 with Matrix Development, or affiliated entity, for the Plymouth Avenue Apartments project, with a not to exceed amount of $900,000;
PR00003348 with Housing and Redevelopment Authority in and for the City of Plymouth, or affiliated entity, for the Valor Place project, with a not to exceed amount of $75,000;
PR00003353 with Reuter Walton, or affiliated entity, for the Greenway Apartments project, with a not to exceed amount of $800,000;
PR00003350 with Twin Cities Habitat for Humanity, or affiliated entity, for the Minnetonka Affordable Homeownership project, with a not to exceed amount of $60,000;
PR00003349 with Walker Methodist, or affiliated entity, for the Raines Building project, with a not to exceed amount of $800,000;
PR00003352 with Wall Companies, or affiliated entity, for the Malcolm Yards Affordable Housing project, with a not to exceed amount of $350,000;
PR00003355 with West Hennepin Affordable Housing Land Trust, or affiliated entity, for the Homes Within Reach project, with a not to exceed amount of $175,000;

that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Agreement PR00003356 with CommonBond Communities, or affiliated entity, for 30 percent of Area Median Income unit rental subsidy for 19 units in the Rise on 7 project, with a not to exceed amount of $1,771,294, during the period May 12, 2021 through May 10, 2045 that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreement and related documents on behalf of the authority and that the Controller be authorized to disburse funds as directed.


Background: History: The Affordable Housing Incentive Fund (AHIF) Program was created by the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners (Resolution 08-HCHRA-00) to work with municipalities, other government and nonprofit agencies, private and nonprofit developers, and lenders to encourage the preservation and development of affordable housing opportunities throughout Hennepin County. A coordinated request for proposals (RFP) for the AHIF and Home Investment Partnerships (HOME) programs was released in January 2021. The RFP garnered 27 applications requesting a total of $20.2 million in AHIF and HOME funding. Proposals were reviewed by Housing and Economic Development (HED) and Health and Human Services (HHS) staff for consistency with county priorities. Proposals were reviewed and ranked by a multi-agency panel consisting of Hennepin County (HED and HHS), Bloomington, Brooklyn Park, Minneapolis, and St. Louis Park staff. AHIF funding is typically provided to projects in the form of a 30 to 40 year deferred loan. Loan documents typically include a loan agreement, promissory note, mortgage, and declaration of covenants and restrictions. In addition, during the term of the loan, the HCHRA may be asked to sign various related documents and amendments, including subordination agreements and disbursement agreements. Consistent with the March 4 and March 11, 2021 Homeless and Housing briefings, staff is also recommending a first-ever 15-year annual subsidy for CommonBond’s Rise on 7 project to support the difference between 60 percent of AMI rents and 30 percent of AMI rents for 19 units. This will allow the project to maintain sufficient resources to pay its capital debt financing costs, while allowing tenants at or below 30 percent of AMI access to affordable rents. Since 2000, and including the recommended 2021 allocations, the AHIF Program has committed approximately $79 million to affordable housing projects, leveraging over $1.7 billion dollars in additional investment to assist the development and/or preservation of over 9,421 affordable housing units in Hennepin County. Attachment A provides a summary of the 11 projects recommended for funding. The 2021 HCHRA budget includes $5.5 million in funding for the 2021 AHIF Program (Resolution 20-HCHRA-0060). An additional $2,371,294 in prior year AHIF loan repayments ($1,771,294) and rescinded project awards ($600,000) is also recommended for reallocation under the 2021 AHIF Program. Recommended Project Awards: Affordable Rental Housing PR00003354 – CommonBond Communities – Rise on 7 - $950,000 8115 Highway 7, St. Louis Park; construction of 120 rental units (19 units at 30 percent of AMI, 48 units at 50 percent of AMI, 32 units at 60 percent of AMI, 21 units at 80 percent of AMI); 24 units for large families, 19 units with rental assistance, 4 units prioritized for occupancy by county HHS clients. PR0003347 - Duffy Development Company – Tessman Ridge Apartments - $925,000 6900 85th Avenue N, Brooklyn Park; construction of 75 rental units (20 units at 30 percent of AMI, 43 units at 60 percent of AMI, 12 units at market rate); 8 units for people experiencing homelessness, 4 units for people with disabilities; 15 units for large families, 12 units with rental assistance; and 4 units prioritized for occupancy by county HHS clients. PR00003345 - Ecumen and Lupe Development– Cornelia View - $665,000 4040 West 70th Street, Edina; construction of 118 affordable rental units for seniors (6 units at 30 percent of AMI, 35 units at 50 percent of AMI, 53 units at 60 percent of AMI, 24 units at 80 percent of AMI); 6 units for homeless seniors; 6 units with rental assistance, and 6 units prioritized for occupancy by county HHS clients. PR00003346 – Matrix Development – Plymouth Avenue Apartments - $900,000 2309 Plymouth Avenue North, Minneapolis; construction of 63 rental units (21 units at 30 percent of AMI, 42 units at 50 percent of AMI); 14 units for people experiencing homelessness; 21 units with rental assistance; and 3 units prioritized for occupancy by county HHS clients. PR00003348 – Plymouth Housing and Redevelopment Authority – Valor Place - $75,000 14225 41st Avenue North, Plymouth; construction of 2 rental units (2 units at 50 percent of AMI); 2 units prioritized for occupancy by veterans; and 2 units for large families. PR00003353 – Reuter Walton – Greenway Apartments - $800,000 2839 11th Avenue South, Minneapolis; construction of 79 rental units (19 units at 30 percent of AMI, 5 units at 50 percent of AMI, 45 units at 60 percent of AMI, 10 units at 80 percent of AMI); 11 units for people experiencing homelessness; and 11 units with rental assistance. PR00003349 – Walker Methodist – Raines Building - $800,000 3737 Bryant Avenue South, Minneapolis; construction of 89 affordable rental units for seniors (45 units at 30 percent of AMI, 44 units at 50 percent of AMI); 18 units for homeless seniors; 45 units with rental assistance, and 10 units prioritized for occupancy by county HHS clients. PR00003352 – Wall Companies – Malcolm Yards Affordable Housing - $350,000 495 Malcolm Avenue SE, Minneapolis; construction of 142 rental units (16 units at 30 percent of AMI, 79 units at 50 percent of AMI, 47 units at 80 percent of AMI); 16 units for people experiencing homelessness; 16 units with rental assistance, and 4 units prioritized for occupancy by county HHS clients. Affordable Homeownership PR00003351 – City of Lakes Community Land Trust - $400,000 Scattered sites, Minneapolis; acquisition and rehabilitation of up to 20 single-family homes for long-term affordable homeownership in a land trust. PR00003350 – Twin Cities Habitat for Humanity - $60,000 13201 Minnetonka Drive, Minnetonka; construction of 2 single-family homes for long-term affordable homeownership in a land trust. PR00003355 – West Hennepin Affordable Housing Land Trust - $175,000 Scattered sites, suburban Hennepin County; acquisition and rehabilitation of up to 10 single-family homes for long-term affordable homeownership in a land trust. 30 Percent of AMI Unit Rental Subsidy PR00003356 – CommonBond Communities – Rise on 7 - $1,771,294 8115 Highway 7, St. Louis Park; 15-year at 30 percent of AMI unit rental subsidy for 19 units (14 one-bedroom, 2 two-bedroom, 3 three-bedroom). Current Request: Approve negotiation of 12 implementation agreements with a combined total not to exceed amount of $7,871,294 under the 2021 AHIF Program. Impact/Outcomes: Eleven projects will assist a total of 708 affordable housing units in Hennepin County; projects will include 146 units for households with incomes at or below 30 percent of AMI, 255 units for households with incomes at or below 50 percent of AMI, 130 units with rent assistance, 73 units for people experiencing homelessness, 67 units for large families, 32 units for affordable homeownership, and 31 units prioritized for county HHS clients.

ATTACHMENTS:
Description	Upload Date	Type
Attachment A - 2021 Budget Recommendations	5/4/2021	Backup Material