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 program, Home Investment Partnerships (HOME) program, and pandemic recovery funds was released in January 2022. The RFP garnered 30 qualified multifamily rental applications requesting a total of $76.6 million. 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 multiagency panel consisting of Hennepin County (HED and HHS), Eden Prairie, 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.
Since 2000, and including the recommended 2022 allocations, the AHIF Program has committed approximately $84 million to affordable housing projects, leveraging over $1.9 billion dollars in additional investment to assist the development and/or preservation of over 10,108 affordable housing units in Hennepin County.
Attachment A provides a summary of the seven projects recommended for funding. The 2022 HCHRA budget includes $5.0 million in funding for the 2022 AHIF Program (Resolution 21-HCHRA-0046). An additional $173,639 in prior year AHIF loan repayments is also recommended for reallocation under the 2022 AHIF Program.
Recommended Project Awards:
PR00004387 – Crystal Housing Group, LLC and Access Development, LLC – 5240 Apartments – $1,000,000; 13610 Balsam Lane N, Dayton; construction of 58 rental units; 15 units affordable and restricted to households at or below 30 percent of the area median income (AMI), 18 units at 50 percent of AMI, 25 units at 60 percent of AMI; 7 units for homeless, 5 for people with disabilities, 20 large family units; 12 units with rental assistance.
PR00004436 – Alatus LLC – Blake Road Building A – $600,000; 325 Blake Road, Hopkins; construction of 112 rental units; 3 units affordable and restricted to 30 percent of AMI, 106 units at 50 percent of AMI, 3 units at 60 percent of AMI; 15 units for large families.
PR00004435 – Lupe Development Partners and Ecumen – Cornelia View – $200,000; 4040 West 70th Street, Edina; construction of 118 rental units restricted to seniors; 6 units affordable and restricted to households at or below 30 percent of AMI, 49 units at 50 percent of AMI, 46 units at 60 percent of AMI, and 17 at 80 percent of AMI; 6 units for homeless seniors, and 6 units with rental assistance.
PR00004390 – Bethesda Cornerstone Village, LLC – Cornerstone Village Brooklyn Park – $703,639; 7601 Brooklyn Boulevard, Brooklyn Park; construction of 100 rental units targeted to seniors and individuals with intellectual and developmental disabilities; 20 units affordable and restricted to households at or below 30 percent of AMI, 68 units at 50 percent of AMI, 12 units at 60 percent of AMI; 10 units for homeless, and 21 units with rental assistance.
PR00004378 – Wellington Management and Currie Commons LLC – Currie Commons – $950,000; 187 Humboldt Avenue N, Minneapolis; construction of 187 rental units; 45 units affordable and restricted to households at or below 30 percent of AMI, 61 units at 50 percent of AMI, 81 units at 60 percent of AMI; 28 units for large families; 5 units for homeless; 13 units for people with disabilities; 45 units with rental assistance.
PR00004381 – American Indian Community Development Corporation – Many Rivers West Rehabilitation – $720,000; 1400 East Franklin Avenue, Minneapolis; renovation of 28 rental units; 6 units affordable and restricted to households at or below 50 percent of AMI, 14 units at 60 percent of AMI, 8 market-rate units; 14 units for large families, and 3 units with rental assistance.
PR00004377 – Artspace Projects, Inc. – Northrup King Residential – $1,000,000; 1500 Jackson Street NE, Minneapolis; adaptive re-use of former industrial/warehouse buildings into 84 rental units; 16 units affordable and restricted to households at or below 30 percent of AMI, 44 units at 50 percent of AMI, 9 units at 60 percent of AMI, and 15 units at 80 percent of AMI, including 26 large family units.
Current Request: Authorize negotiation of seven implementation agreements with a total combined not to exceed amount of $5,173,639 under the 2022 AHIF Program.
Impact/Outcomes: Seven projects will assist a total of 687 affordable housing units in Hennepin County; projects will include 105 units for households with incomes at or below 30 percent of AMI, 352 units for households with incomes at or below 50 percent of AMI, 28 units for people experiencing homelessness, 18 units for people with disabilities, 103 large family units, and 87 units with rent assistance.
Housing Disparity Domain: Households of color are disproportionately housing cost burdened. This request creates housing opportunities for individuals with incomes at or below 30 percent, 50 percent, and 60 percent of the area median income.