The Homeownership Assistance Program was created by the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners (Resolution 21-HCHRA-0046) to create affordable, sustainable homeownership opportunities throughout Hennepin County.

A coordinated request for proposals (RFP) which included the AHIF program, Home Investment Partnerships (HOME) program, and capital funding from the Homeownership Assistance Program was released in January 2023. The RFP garnered five homeownership applications requesting a total of $3.3 million. Proposals were reviewed and ranked by a multiagency panel consisting of Hennepin County, Eden Prairie, Bloomington, Brooklyn Park, Minneapolis, and St. Louis Park staff.

Homeownership capital funding is typically provided to projects in the form of a 30-year deferred loan. Loan documents typically include a loan agreement, promissory note, declaration of covenants and restrictions, and possibly a mortgage. In addition, at the project’s final closing and during the term of the loan, the HCHRA may be asked to sign various related documents and amendments, including subordination agreements and disbursement agreements.

Attachment A provides further detail on the four projects recommended for funding.

Recommended Project Awards:

PR00005304 - City of Lakes Community Land Trust - Perpetually Affordable Homeownership project - $500,000; Minneapolis; Acquisition and rehabilitation of up to 14 single-family homes for affordable homeownership in a land trust.

PR00005307 - West Hennepin Affordable Housing Land Trust - Homes Within Reach project - $420,000;

suburban Hennepin County; Acquisition and rehabilitation of up to 14 single-family homes for affordable homeownership in a land trust

PR00005305 - Project for Pride in Living, Inc. and Urban Homeworks - Northside Homes project - $80,000; Minneapolis; Construction of 2 single-family homes for affordable homeownership in a land trust.

PR00005306 - Greater Metropolitan Housing Corporation - Golden Valley project - $245,000;

Golden Valley; Construction of 4 single-family homes for affordable homeownership in a land trust.

Current Request: This request is to authorize negotiation of four implementation agreements with a total combined not to exceed amount of $1,245,000 under the 2023 Homeownership Assistance Program.

Impact/Outcomes: Four projects will assist a total of 34 housing opportunities in Hennepin County, 32 affordable to households at or below 80 percent of area median income (AMI) and two affordable to households with incomes at or below 60 percent of AMI.

Housing Disparity Domain: Households of color are disproportionately left out of the homeownership. This request creates homeownership opportunities for individuals with incomes at or below 60 percent and 80 percent of the area median income.