| | | | | | | | Housing and Redevelopment Authority Board Action Request
19-HCHRA-0043
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| | | | | | | | Item Description:
Authorization to acquire four rehabilitated homes from Hennepin County RRES, NTE $1,072,600; establish a public hearing on 11/12/19 for comment on the proposed sale of three homes in Mpls to CLCLT, and one home in St. Louis Park to WHAHLT |
| | | | | | | | Resolution:
BE IT RESOLVED, that the acquisition of 1239 Logan Avenue North, Minneapolis (PID 21-029-24-22-0106), legally described as Lot 26 and North ½ of Lot 25 including adjacent half of the vacated alley, Block 30, “Oak Park Addition to Minneapolis;” 1713/1715 44th Avenue North, Minneapolis (PID 04-029-24-21-0151), legally described as Lot 4, Block 3, “Harvey’s Addition to Minneapolis;” 3544 34th Avenue South, Minneapolis (PID 06-028-23-32-0034), legally described as Lot 12, Block 2, “Clifton Addition to Minneapolis;” and 8616 Cedar Lake Road, St. Louis Park (PID 07-117-21-42-0127), legally described as Lot 4, Block 7, “West Texa-Tonka Hills” by the Hennepin County Housing and Redevelopment Authority (HCHRA) from the Hennepin County Resident and Real Estate Services Department, during the period December 3, 2019 through June 30, 2020 in consideration of a total combined not to exceed amount of $1,072,600, be authorized; that the Chair and the Executive Director be authorized to execute all related conveyance documents on terms they deem appropriate and meeting the public purpose of increasing the supply of affordable housing on behalf of the HCHRA; and that the Controller be authorized to disburse any funds as directed pursuant to the conveyance; and
BE IT FURTHER RESOLVED, that a public hearing to obtain public comment on the proposed sale of 1239 Logan Avenue North, 1713/1715 44th Avenue North, and 3544 34th Avenue South in Minneapolis and 8616 Cedar Lake Road in St. Louis Park be held before the Hennepin County Housing and Redevelopment Authority on Tuesday, November 12, 2019 at 1:30 p.m., or as soon thereafter as practicable, in room A-2400 of the Hennepin County Government Center in the City of Minneapolis and that the Clerk of the Board shall publish notice of the hearing, in substantially the form attached hereto as Exhibit A in Finance and Commerce, the official newspaper of Hennepin County at least once, 15 days prior to the date of the public hearing. |
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| | | | | | | | Background:
History: Hennepin County, through its Resident and Real Estate Services (RRES) and Purchasing departments, created a Small Business Enterprise (SBE) Home Rehabilitation pilot program in 2016 to complete rehabilitation of tax forfeit homes. The program partners with local rehab contractors to provide business development and job opportunities for emerging small business firms and return a tax forfeit home to the tax base.
Four homes (1239 Logan Avenue North, Minneapolis; 1713/1715 44th Avenue North, Minneapolis; 3544 34th Avenue South, Minneapolis; and 8616 Cedar Lake Road, St. Louis Park) are nearly complete and ready for sale. RRES has requested the Hennepin County Housing and Redevelopment Authority (HCHRA) facilitate sales to the City of Lakes Community Land Trust (CLCLT) and the West Hennepin Affordable Housing Land Trust (WHAHLT) for resale to income-qualified buyers. CLCLT provides homeownership opportunities in Minneapolis and WHAHLT provides homeownership opportunities in suburban Hennepin County for individuals and families with incomes at or below 80 percent of area median income. Rehabilitation costs associated with the four homes is currently estimated at a combined total of $1,163,000 (approximately $290,000 per home).
The HCHRA will acquire the four properties at the appraised value currently estimated at a combined total of $1,027,900 (approximately $257,000 per home), plus special assessments, fees and taxes associated with the purchase of tax forfeit property currently estimated at a combined total of $44,700 (approximately $11,170 per home) for a total combined not to exceed amount of $1,072,600 (approximately $268,150 per home).
Preservation of affordable homeownership often requires affordability assistance to bridge gaps between obtainable homeowner mortgages and resale/admin/closing costs. The current estimated gap for these four homes is $400,000 (to be sourced by the land trusts through Minnesota Housing, Hennepin County, HCHRA, and/or city funds made available for this purpose).
After the public hearing on November 12, 2019, the HCHRA Board will consider sale of the four properties to the land trusts on December 3, 2019, including use of any HCHRA affordability gap financing authorized in the 2019 budget (Resolution 18-HCHRA-0043).
Current Request: Approve acquisition of properties at 1239 Logan Avenue North, 1713/1715 44th Avenue North, and 3544 34th Avenue South in Minneapolis and 8616 Cedar Lake Road in St. Louis Park from RRES with a total combined not to exceed amount of $1,072,600 and establish a public hearing on Tuesday, November 12, 2019 for public comment on the proposed sale of properties at 1239 Logan Avenue North, 1713/1715 44th Avenue North, and 3544 34th Avenue South in Minneapolis to the CLCLT and 8616 Cedar Lake Road in St. Louis Park to the WHAHLT.
Impact/Outcomes: Acquisition of these properties will allow the HCHRA to ultimately convey these properties to the local land trusts, return vacant properties to the tax base, and provide four new long-term affordable housing opportunities. |
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