History:  Resolution 16-0314S2 (adopted August 2016)  authorized staff to negotiate an agreement with the Greater Metropolitan Housing Corporation to administer two housing programs for the Penn Avenue Corridor as part of the Penn Avenue Community Works project; the Front Yard Fix Up and Homebuyer Assistance programs. Following this board action, Greater Metropolitan Housing Corporation informed Hennepin County that they would not be able to move forward with the contract. An agreement with Greater Metropolitan Housing Corporation was never executed, and does not require board action to rescind or nullify. Through a comparative review of qualifications and administrative cost structure offered by three firms, it has been determined that Center for Energy and Environment, a local non-profit housing organization, has the qualifications and ability to fulfill the contract terms and administer the housing programs as proposed. The agreement involves a change of entity and timeframe, with no change to the not-to-exceed amount that was originally requested.

The Front Yard Fix Up program will help property owners along Penn Avenue to update the front exterior of their properties by financing up to $5,000 per borrower for curb appeal projects, and the Homebuyer Assistance program will provide homebuyers who purchase properties in the corridor up to $3,000 for down payment and closing cost assistance.  Both programs are no-interest loans that are forgivable if the borrower owner-occupies the property for a period of five years from the loan closing.

Current Request:  This request is for approval of Agreement A177171 with Center for Energy and Environment to administer two housing initiatives in the Penn Avenue Community Works project area from May 2017 to December 2019.

Impact/Outcomes:  The Front Yard Fix Up and Homebuyer Assistance programs will provide down payment assistance for up to 30 homebuyers and funding for exterior home improvements for up to 18 homeowners in the Penn Avenue Community Works project area.