Coversheet

Housing and Redevelopment Authority Board Action Request
18-HCHRA-0014


Item Description: 2018 AHIF funding recommendations - Neg 4 2017 award modifications, 5/2/17-5/2/63; Neg 9 2018 award agmts, 5/9/18-5/8/63, total combined NTE $3,288,000

Resolution:

BE IT RESOLVED, that accrued interest payments in the amount of $38,000 received in the refinancing of 2005 Affordable Housing Incentive Agreement A051254 (Albright Townhomes) be allocated for the 2018 Affordable Housing Incentive Fund (AHIF) Program; and

BE IT FURTHER RESOLVED, that $550,000 from Hennepin County Housing and Redevelopment Authority (HCHRA) Fund 32 (Other Services) be transferred to HCHRA Fund 37 (HCHRA Special Projects-Affordable Housing Incentive Fund) for inclusion in the 2018 AHIF Program; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate modifications to four 2017 AHIF Program funding awards approved under Resolution 17-HCHRA-0020, recognizing additional funding awarded under the 2018 AHIF Program: Agreements A177334 with Alliance Housing, Inc., or affiliated entity, for the Minnehaha Commons project, increasing the not to exceed amount by $88,000 for a new total not to exceed amount of $338,000; A177335 with Minneapolis Public Housing Authority, or affiliated entity, for the Minnehaha Townhomes project, increasing the not to exceed amount by $100,000 for a new total not to exceed amount of $600,000; A177338 with Newport Midwest, LLC, or affiliated entity, for The Mariner project, increasing the not to exceed amount by $200,000 for a new total not to exceed amount of $400,000; A177339 with Sabathani Community Center, or affiliated entity, for the Sabathani Senior Housing project, increasing the not to exceed amount by $400,000 for a new total not to exceed amount of $800,000; and extending each contract period from May 2, 2062 to May 8, 2063; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Agreements PR00000380 with Community Housing Development Corporation, or affiliated entity, for the Park 7 project, with a not to exceed amount of $400,000; PR00000376 with Lake Street Apartments, LLC, or affiliated entity, for the Lake Street Apartments project, with a not to exceed amount of $300,000; PR00000381 with Northside Partners GP, LLC, or affiliated entity, for the Penn Avenue Union project, with a not to exceed amount of $300,000; PR00000385 with PERIS, or affiliated entity, for the PERIS Development project, with a not to exceed amount of $400,000; PR00000378 with Project for Pride in Living Inc., or affiliated entity, for the Maya Commons project, with a not to exceed amount of $400,000; PR00000379 with Red Lake Band of Chippewa Indians, or affiliated entity, for the Mino-bimaadiziwin project, with a not to exceed amount of $300,000; PR00000373 with Sand Companies, or affiliated entity, for the Element project, with a not to exceed amount of $200,000; PR00000374 with Twin Cities Habitat for Humanity, or affiliated entity, for the Scattered-site Rehab project, with a not to exceed amount of $100,000; and PR00000375 with West Hennepin Affordable Housing Land Trust, or affiliated entity, for the WHAHLT Homes Within Reach project, with a not to exceed amount of $100,000, during the period May 9, 2018 through May 8, 2063; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the HCHRA authorizes the Executive Director to revise, as needed, the AHIF funding amounts of the HCHRA Board approved projects in response to potential changes in a specific project's funding requirements providing that such revisions will not result in an increase in the aggregate funding of $3,288,000 or any projects being funded that have not been approved by the board.


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. In January 2018, a request for proposals was released which garnered 29 applications requesting a total of $15 million in funding. Proposals were reviewed for consistency with AHIF priorities, transit and corridor considerations, Health and Human Services (HHS) priorities, and potential environmental concerns. Proposals were reviewed and ranked by a multi-agency panel consisting of Hennepin County (Community Works and HHS), Bloomington, Brooklyn Park, Minneapolis, Minnetonka, New Hope, Plymouth, and St. Louis Park staff. Attachments A and B provide a summary and map of the 2018 AHIF applications received including the 13 recommended for funding. Resolution 17-HCHRA-0055 allocated $2.7 million for the 2018 AHIF Program. Additionally, in response to growing regional affordable housing needs and collaboration with HHS staff to target highest priority projects for county clients, staff recommends the use of $38,000 in pending AHIF interest payments (Resolution 17-HCHRA-0046, 2005 AHIF/Albright Townhomes) and $550,000 in unallocated 2018 HCHRA funding in the 2018 AHIF Program. Three high priority HHS projects were identified this round: Minnehaha Commons will provide supportive housing to homeless seniors; Minnehaha Townhomes will provide supportive housing to homeless families; and the PERIS Project will provide supportive housing to youth aging out of foster care. Recommended Project Awards: Rental Housing – New Construction Supportive PR00000380 - Community Housing Development Corporation–Park 7- $400,000 714 Park Avenue and 615 South 7th Street, Minneapolis; construct 61 new supportive rental units for families experiencing homelessness of which 31 units will serve long-term homeless; 10 HHS units. Rental Housing - New Construction PR00000373 - Sand Companies, Element – $200,000 56th Avenue N and Highway 55, Plymouth; construct 58 affordable rental units of which eight units will serve long-term homeless. PR00000381 - Lake Street Apartments, LLC / Lupe Development Partners, Lake Street Apartments–$300,000 410 Lake Street West, Minneapolis; construct 111 affordable rental units of which seven units will serve persons with disabilities; three HHS units. PR00000378 - Project for Pride in Living Inc, Maya Commons – $400,000 1220 Brook Avenue SE, Minneapolis; construct 50 affordable rental units, of which four units will serve long-term homeless. PR00000379 - Red Lake Band of Chippewa Indians, Mino-bimaadiziwin – $300,000 2015-2113 Cedar Avenue S and 1820 22nd Street E, Minneapolis; construct 109 rental units in a mixed-use development near an existing Blue Line Light Rail Transit (LRT) station, of which 22 units will serve long-term homeless. PR00000381 - Northside Partners GP, LLC, Penn Avenue Union – $300,000 2200 Golden Valley Road, Minneapolis; construct 64 affordable rental units in a mixed-income, mixed-use development at a transit-oriented location; four units will serve long-term homeless; four HHS units. A177339 - Sabathani Community Center, Sabathani Senior Housing – $400,000 (new total NTE $800,000) 310 E 38th Street, Minneapolis; construct 50 affordable rental units for seniors age 55 and older next door to the Sabathani Community Center; five HHS units. A177338 - Newport Midwest, LLC – The Mariner – $200,000 (new total NTE $400,000) 10400-10550 Bren Road, Minnetonka; construct 236 rental units, of which 55 will be affordable rental units for Phase I in a mixed-income, mixed-use development near planned Southwest LRT Station of which four units will serve long-term homeless; four HHS units. Affordable Homeownership – Rehabilitation PR00000374 – Twin Cities Habitat for Humanity - $100,000 Scattered sites, suburban Hennepin County; purchase and rehabilitate/construct three single-family homes for land trust homeownership. PR00000375 - West Hennepin Affordable Housing Land Trust, WHAHLT Homes Within Reach - $100,000 Scattered sites, suburban Hennepin County; acquire and rehabilitate nine single-family homes for homeownership in the land trust. Human Service Alignment: A177334 - Alliance Housing Inc., Minnehaha Commons–$88,000 (new total NTE $338,000) 3001 E Lake Street, Minneapolis; construct 44 new supportive rental units for seniors experiencing homelessness with services provided by Touchstone Mental Health of which 10 units will serve long-term homeless. A177335 - Minneapolis Public Housing Authority, Minnehaha Townhomes–$100,000 (new total NTE $600,000) 5348-68 Riverview Road and 5118 54th Street E, Minneapolis; construct 16 new supportive townhome rental units for families experiencing homelessness of which four units will serve long-term homeless. PR00000385 - PERIS, LLC, PERIS Development- $400,000 1930 Hennepin Avenue S, Minneapolis; construct 41 affordable rental units at a transit-oriented location, of which 15 units will be dedicated to youth aging out of foster care; 15 HHS units. AHIF funding agreements are typically in the form of a 30-40 year loan. Loan documents typically include the 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 such as subordinations and insurance endorsements. Since 2000, and including the recommended 2018 allocations, the AHIF Program will have committed approximately $63.2 million, leveraging over $1.5 billion dollars in additional investment to assist over 7,700 affordable units in Hennepin County. Current Request: Reallocate $38,000 from accrued interest from Albright Townhomes; reallocate $550,000 from Hennepin County Housing and Redevelopment Authority Fund 32 to Fund 37; authorize negotiation of four award modifications and nine implementation agreements totaling $3,288,000 under the 2018 AHIF Program. Impact/Outcomes: Thirteen projects will create 659 new construction and 12 rehabilitated affordable housing units in Hennepin County, serving 102 households/individuals at or below 30 percent of area median income (AMI), 332 households/individuals at or below 50 percent of AMI, 237 households/individuals at or below 60 percent of AMI, and leveraging $172 million in other private and public resources.

ATTACHMENTS:
Description	Upload Date	Type
Attachment A - 2018 AHIF	5/3/2018	Backup Material
Attachment B - AHIF Map	5/2/2018	Map
Presentation	5/7/2018	Presentation