History: In the Tax Forfeit to Affordable Housing Program, the Hennepin County Housing and Redevelopment Authority (HCHRA) acquires and rehabilitates select foreclosed and/or tax-forfeited housing to provide affordable housing, eliminate blight, and expand the tax base. Properties acquired by the HCHRA are rehabilitated by Sentencing to Service (STS) Homes and eventually resold to an eligible community land trust homebuyer. The STS Homes Program provides on-the-job carpentry program for minimum-custody offenders housed at the state’s minimum security facilities and to Summit Academy OIC students. The West Hennepin Affordable Housing Land Trust (WHAHLT) provides homeownership opportunities in suburban Hennepin County for individuals and families with incomes at or below 80 percent of area median income (AMI).

Resolution 16-HCHRA-0041 authorized the purchase of 9335 Russell Court in the City of Bloomington from Hennepin County Resident and Real Estate Services. Rehabilitation of the home is nearing completion and is proposed to be sold to WHAHLT for resale to an income-qualified buyer in the summer of 2018. The final sales price will be established upon completion of construction through an appraisal, but in no event will the sale price be less than $250,000. WHAHLT provides additional assistance upon resale to obtain affordability at or below 80 percent of AMI.

After the public hearing on May 8, 2018, the HCHRA will consider sale of the property at 9335 Russell Circle in Bloomington on June 5, 2018.

Current Request: Establish a public hearing on Tuesday, May 8, 2018 at 1:30 p.m., or as soon thereafter as practicable, to obtain public comment on the sale of 9335 Russell Circle in the City of Bloomington to WHAHLT, or affiliated entity.

Impact/Outcomes: The conveyance of this property to WHAHLT, or an affiliated entity, will return a vacant property to the tax base and provide a new affordable housing opportunity.