Item Coversheet

Housing and Redevelopment Authority Board Action Request
20-HCHRA-0019

Item Description:
2020 AHIF funding recommendations - Neg 10 2020 award agmts, 5/12/20-5/11/65, total combined NTE $5,726,213; supp app to 2020 HCHRA budget
Resolution:

BE IT RESOLVED, that $226,213 in prior year Affordable Housing Incentive Fund (AHIF) program loan repayment proceeds from the Whittier Townhomes Project (Contract #A062121) be reallocated for distribution under the 2020 AHIF Program as described herein; that a supplemental appropriation to the 2020 Hennepin County Housing and Redevelopment Authority (HCHRA) budget in the amount of $226,213 be authorized; and that the Controller be authorized to accept and disburse funds as directed; and

 

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate Agreements PR00002179 with Alliance Housing, Inc. or affiliated entity, for the 3301 Nicollet project, with a not to exceed amount of $700,000; PR00002191 with CommonBond Communities, or affiliated entity, for the Stonehouse Square project, with a not to exceed amount of $500,000; PR00002183 with City of Lakes Community Land Trust, or affiliated entity, for the Homebuyer Initiated Program and African American Community Land Trust projects, with a not to exceed amount of $600,000; PR00002185 with Duffy Development Company, Inc., or affiliated entity, for the Rogers Main Street Senior Housing project, with a not to exceed amount of $300,000; PR00002255 with Duffy Development Company, Inc., or affiliated entity, for the Rogers Main Street Workforce Housing project, with a not to exceed amount of $300,000; PR00002184 with Ecumen, or affiliated entity, for the Snelling Yards Senior Housing project, with a not to exceed amount of $800,000; PR00002256 with Lupe Development Partners, LLC, or affiliated entity, for the Gardens of Bryn Mawr project, with a not to exceed amount of $600,000; PR00002180 with MWF Properties, LLC, or affiliated entity, for the Lofts at Anderson Reserve project, with a not to exceed amount of $300,000; PR00002186 with Project for Pride in Living, Inc., or affiliated entity, for the Bloom Lake Flats project, with a not to exceed amount of $1,026,213; PR00002254 with Seward Redesign, Inc. and Noor Development, or affiliated entity, for the Wadaag Commons project, with a not to exceed amount of $600,000, during the period May 12, 2020 through May 11, 2065; 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 Hennepin County Housing and Redevelopment Authority (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 $5,726,213 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 2020, a coordinated request for proposals (RFP) for the AHIF and Home Investment Partnerships (HOME) programs was released. The RFP garnered 29 applications requesting a total of $19.7 million in AHIF and HOME funding. Proposals were reviewed for consistency with Housing and Economic Development (HED) and Health and Human Services (HHS) priorities. Proposals were reviewed and ranked by a multi-agency panel consisting of Hennepin County (HED and HHS), Bloomington, Brooklyn Park, Minneapolis, Minnetonka, Plymouth, and St. Louis Park staff.

 

AHIF project funding is typically provided in the form of a 30-40-year deferred loan. Loan documents include a 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 and amendments, including subordination agreements and disbursement agreements.

 

Since 2000, and including the recommended 2020 allocations, the AHIF Program has committed approximately $73.1 million to affordable housing projects, leveraging over $1.7 billion dollars in additional investment to assist the development and/or preservation of over 8,874 affordable housing units in Hennepin County.

 

Attachments A and B provide a summary and map of the 10 applications recommended for funding. The 2020 HCHRA budget includes $5.5 million in funding for the 2020 AHIF Program (Resolution 19-HCHRA-0054). An additional $226,213 in prior year AHIF loan repayments is also recommended for reallocation.

 

Recommended Project Awards:

 

Supportive Housing

PR00002179 – Alliance Housing, Inc. – 3301 Nicollet - $700,000

3301 Nicollet Avenue, Minneapolis; Construction of 63 affordable rental units; 20 units for people experiencing chronic homelessness, 20 units with project-based rental assistance.

 

PR00002186 – Project for Pride in Living, Inc. – Bloom Lake Flats - $1,026,213

3020 16th Avenue S, Minneapolis; Construction of 42 affordable rental units for persons living with HIV/AIDS; 21 units for people experiencing homelessness, 7 units for people with a disability, 4 units for large families, 42 units with project-based rental assistance.

 

Affordable Rental Housing

PR00002191 – CommonBond Communities – Stonehouse Square - $500,000

215 Broadway Street NE, Minneapolis; Acquisition and rehabilitation of 71 rental units (57 affordable units); 19 units for large families, 19 units with project-based rental assistance.

 

PR0002185 - Duffy Development Company Inc. – Rogers Main Street Senior Housing - $300,000

13001 Main Street, Rogers; Construction of 40 affordable rental units for seniors; 4 units for seniors experiencing homelessness, 4 units prioritized for occupancy by county HHS clients.

 

PR00002255 - Duffy Development Company Inc. – Rogers Main Street Workforce Housing - $300,000

21501 John Deere Lane N, Rogers; Construction of 64 rental units (50 affordable units); 7 units for people experiencing homelessness, 4 units for people with a disability; 22 units for large families; 4 units prioritized for occupancy by county HHS clients.

 

PR00002184 - Ecumen – Snelling Yards Senior Housing - $800,000

3601 East 44th Street, Minneapolis; Construction of 100 affordable rental units for seniors; 10 units for homeless seniors; 11 units with project-based rental assistance, 4 units prioritized for occupancy by county HHS clients.

 

PR00002256 – Lupe Development Partners, LLC – Gardens of Bryn Mawr - $600,000

2800 Wayzata Blvd S, Minneapolis; Construction of 99 affordable rental units for seniors; 6 units for homeless seniors; 6 units with project-based rental assistance, 4 units prioritized for occupancy by county HHS clients.

 

PR00002180 - MWF Properties LLC – Lofts at Anderson Reserve - $300,000

9360 Hennepin Town Road, Eden Prairie; Construction of 52 affordable rental units; 8 units for people experiencing homelessness; 14 units for large families; 8 units with project-based rental assistance, 3 units prioritized for occupancy by county HHS clients.

 

PR00002254 – Seward Redesign, Inc. and Noor Development – Wadaag Commons - $600,000

2115 Snelling Avenue, Minneapolis; Construction of 32 affordable rental units; 8 units for people experiencing homelessness, 16 units for large families, 24 units with project-based rental assistance.

 

Affordable Homeownership

PR00002183 – City of Lakes Community Land Trust - $600,000

 

  • Scattered sites, Minneapolis; Acquisition and rehabilitation of up to 15 homes for long-term affordable homeownership in a land trust through the Homebuyer Initiated Program ($300,000);
  • Scattered sites, Minneapolis; Acquisition and rehabilitation of up to 10 homes for long-term affordable homeownership in a land trust through the African American Community Land Trust ($300,000).

 

Current Request: Authorize negotiation of 10 implementation agreements totaling $5,726,213 under the 2020 AHIF Program.

 

Impact/Outcomes: Ten projects will assist a total of 411 affordable housing units in Hennepin County; projects will include 73 units for households with incomes at or below 30 percent of AMI, 391 units for households with incomes at or below 50 percent of AMI, 130 units with project-based rent assistance, 84 units for people experiencing homelessness, 75 units for large families, 15 units prioritized for county HHS clients, and 10 units to reduce disparities in homeownership.

Recommendation from County Administrator: Recommend Approval
ATTACHMENTS:
DescriptionUpload DateType
Attachment A - 2020 AHIF and HOME recommendations5/7/2020Backup Material
Attachment B - AHIF-HOME-TOD map5/7/2020Map