Housing and Redevelopment Authority (HRA)

2020 Budgeted Actions

On May 12, 2020, the HRA passed the following items in line with our efforts to impact workforce development, housing development, and economic development:

• Allocated $2,160,000 for supportive housing projects, totaling 88 client-focused affordable housing units. The Client-based Housing Program, established in 2018, provides targeted capital assistance to client-focused housing projects that preserve and expand the supportive housing system. The program helps to create more supportive housing through proactive investment. Note: This action brought our cumulative capital allocations for Year 1 of the Supportive Housing strategy to $5,856,000 for a total of 212 units of supportive housing. See the memo from Hennepin staff to the Board on this item. Three projects chosen through a recent Request for Proposals process (RFP) will create:

  • 88 new units of supportive, affordable housing; 20 units for people with severe addictions, and 68 units for people experiencing chronic homelessness

• Awarded $5,726,213 in Affordable Housing Incentive Fund (AHIF) funding to create 535 affordable housing units. The AHIF works with municipalities, partner governments, nonprofit agencies, developers, and lenders to encourage the preservation and development of affordable housing opportunities throughout Hennepin County. Since 2000, the AHIF Program has committed over $73 million to affordable housing projects, supporting $1.7 billion dollars in additional investment to assist the development and/or preservation of over 8,874 affordable housing units in Hennepin County. See the memo from Hennepin staff to the Board on this item. The ten projects will create a total of 535 housing units affordable to households with incomes at or below 80% of the area median income (AMI), including:

  • 140 units affordable to households with incomes at or below 30% AMI

  • 324 units affordable to households with incomes at or below 50% AMI

  • 84 units for people experiencing homelessness

  • 263 units for seniors

  • 75 units that can accomodate for large families

  • 15 units for county Health and Human Services clients

  • 10 units to reduce disparities in homeownership

• Awarded  $1,700,000 of Transit Oriented Development (TOD) to create 800 housing units and create or retain 170 jobs. Transit Oriented Development (TOD) grants promote a mixture of uses such as housing, retail, services, jobs, and open space projects within walking distance of transit. These projects typically feature pedestrian and bicycle connections, reduced or shared parking, increased density, and building orientation towards the pedestrian environment. See the memo from Hennepin staff to the Board on this item. In total, the 5 projects awarded today will generate over 800 housing units, 141 of which are affordable, over 100,000 square feet of commercial and community space and 170 new or retained jobs.

Public Health Emergency Actions

Since the start of the Hennepin emergency declaration on March 16, the HRA passed the following important measures to address the impacts of the COVID-19 pandemic.

• $15,000,000 to the Hennepin County Small Business Relief Program to provide small business technical assistance and emergency loan funding to assist local businesses recover from the economic impacts of the COVID-19. This program will impact over 1000 Hennepin small businesses and will improve their capacity to survive/recover from the current crisis. Funds will help businesses pay for critical operating expenses such as utilities, rent payments, mortgage payments, and payments to suppliers. Hennepin County Small Business Relief Program provides up to $10,00 in one-time emergency forgivable loan funding to sustain operations in for profit businesses. Your business qualifies with the below criteria. Note: This program will be administered by the Metropolitan Consortium of Community Developers (MCCD).

  1. You are locally owned and operated

  2. You have a physical establishment in Hennepin County

  3. You have at least one and no more than 20 employees

  4. You have under $1 million in annual revenue

• $740,000 to assist approximately 154 low income Hennepin County residents maintain stable housing during the COVID-19 pandemic. This includes two programs, one for renters and one for homeowners.

  1. An emergency rent and assistance program that focuses on renters with low incomes at or below 50 percent of area median income (AMI) and at the highest risk for COVID-19 related economic loss, and provides an average of $1,500 per household, plus staffing costs, with a goal of assisting 144 households. Note: this program will be administered through existing community based providers.

  2. An innovative strategy to preserve homeownership as well as long-term affordability of homes focused on homeowners with incomes below 80 percent of AMI at risk of tax forfeiture and home loss. This provides financial assistance to prevent tax forfeiture and rehabilitate homes, in exchange for ownership of the land and a Ground Lease ensuring the home remains affordable long-term, with a goal of helping 10 homes. Note: this program will be administered by City of Lakes Community Land Trust (CLCLT).

• $100,000 to provide small business outreach in partnership with culturally specific community based organizations. Existing barriers faced by businesses owned by people of color, women, or in lower income areas are only exacerbated by the current crisis. Targeted, culturally competent outreach will increase access to capital and help ensure more equitable outcomes for small businesses in Hennepin County. The goal is to help businesses understand the various federal, state, and local funds available to them and how to connect with lenders and government agencies that are administering these funds. Note: This program will be administered by the Alliance for Metropolitan Stability.