On August 17, 2021, the County Board authorized $46,000,000 in Federal Pandemic Funds for equitable housing recovery strategies (Resolution 21-0305) such as:

• Investments to immediately increase affordable multifamily housing production, such as:
  • Gap funding for affordable housing projects serving populations disproportionately impacted by the COVID-19 public health emergency
  • Investments to address a backlog of deferred rehab need in Naturally Occurring Affordable Housing (NOAH) properties (a primary source of housing for populations disproportionately impacted by the COVID-19 public health emergency) and support for additional non-profit preservation acquisition of at-risk NOAH properties

• Acquisition of properties supporting affordable housing along the housing continuum, especially single adults experiencing homelessness/housing instability
•  Homebuyer Assistance programs targeting populations disproportionately impacted by the COVID-19 public health emergency.

Resolution 22-0136R1 (adopted March 22, 2022) authorized the County Administrator to rescind the funding source for any prior board action that authorized use of Federal Pandemic Funds for pandemic recovery activities in order to use other resources for the same activities.  The County Administrator has accordingly rescinded the original funding source for Resolution 21-0305 and designated other resources for the previously authorized equitable housing recovery strategies. 

After review by the County Attorney’s Office, it has been determined that the Hennepin County Housing and Redevelopment Authority (HCHRA) offers the most straightforward, independent statutory authority for administering equitable housing recovery programming. 

Resolution 22-0143 (adopted April 19, 2022) transferred $3,316,000 to the HCHRA for single room occupancy property acquisition.  Additionally, Resolution 22-0143 authorized $1,700,000 for single room occupancy construction and rehabilitation by Facility Services (and that amount is not included in this transfer). 

Staff recommends transferring the balance ($40,984,000) of the previously authorized $46,000,000 to the HCHRA for eligible costs, operations, staffing, and services to advance equitable housing recovery strategies consistent with Resolutions 21-0305 and 22-0136R1.

Further, as identified below, several strategies were initiated in late 2021 and early 2022, competitive program request for proposals (RFPs) released, applications reviewed and recommendations approved by the County Administrator under Resolution 21-0305 delegation authority:

• Pandemic-related construction cost increase RFP, released November 10, 2021
• Naturally Occurring Affordable Housing (NOAH) preservation RFP, released December 21, 2021
•  Coordinated Affordable Housing RFP, released January 6, 2022, including:
  • Affordable Housing Accelerator
  •  Homeownership Assistance

Consistent with the transfer of pandemic recovery funds and responsibilities, staff also recommends the above RFPs be transferred to the HCHRA for execution and ongoing administration (funding for these agreements is included in the $40,984,000).

Request: This request is to authorize the transfer of $40,984,000 in pandemic recovery funds to the HCHRA for eligible costs, operations, staffing, and services to advance equitable housing recovery strategies consistent with Resolutions 21-0305 and 22-0136R1, and request the HCHRA to manage the outcome of three RFPs previously completed by the county.

Impact/Outcomes: Create or preserve approximately 2,000 units of affordable housing and support more than 100 households in buying homes.

Housing Domain Disparity: Households of color are disproportionately housing cost burdened and will benefit from an increase in affordable housing preservation/production.