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Home My WebLink About2023-02-02 HRA Regular Meeting PacketAg enda E dina H ousing and R edevelopm ent Author ity City of E dina, Minnesota City Hall Council Chambers Thursday, Febr uar y 2, 2023 7:30 AM Watch the m eeting on cable TV or at EdinaMN.gov/LiveMeeting s or Facebook.com /EdinaMN. To Participate in Comm unity Comm ent Call 786-496-5601 E nter Conference PIN 8802069# Press *1 on your telephone keypad when you would like to get in the queue to speak. An operator will introduce you when it is your turn. I.Call to Ord er II.Roll Call III.Pledge of Allegia n ce IV.Ap p roval of Meetin g Agen d a V.Com m unity Com m en t Du ring "Com m unity Com m en t," th e Edin a Housing and Redevelop m ent Au thority (HRA) will in vite resid ents to sh are new issues or con cern s tha t h aven't been con sid ered in th e p ast 30 da y s b y th e HRA or w h ich a ren't slated for fu ture consideration . Individ u als m u st lim it their com m ents to three m inutes. Th e Ch air m a y lim it the num ber of sp ea kers on th e sa m e issue in th e interest of tim e a n d topic. Gen era lly sp ea king, item s tha t are elsewhere on tod ay's a genda m a y not b e addressed d u ring Com m unity Com m en t. In d ividua ls sh ould not expect th e Ch air or Com m issioners to resp ond to th eir com m en ts toda y . Instead the Com m issioners m ight refer the m atter to sta. for consideration a t a fu ture m eeting. A.E xecu tive Director's Resp onse to Com m u n ity Com m ents VI.Ad option of Con sen t Agenda All a genda item s listed on the consent a genda a re con sid ered rou tin e and will be en acted by one m otion. There will be no sepa rate d iscussion of such item s unless requested to be rem oved from the Con sen t Agenda by a Com m ission er of the HRA. In su ch ca ses the item w ill b e rem oved from th e Consent Agen d a and con sid ered im m ediately follow ing the a d option of th e Consent Agen d a. (Fa vorable rollcall vote of m a jority of Com m issioners p resent to approve.) A.Dra ft Min u tes of the Special Meetin g Decem b er 6, 2022 B.Dra ft Min u tes of the Regu la r Meetin g Decem b er 8, 2022 C.Dra ft Min u tes of the Special Meetin g Decem b er 20, 2022 D.Dra ft Min u tes of the Regu la r Meetin g Janua ry 5, 2023 VII.Reports/Recom m enda tions: (Favora b le vote of m ajority of Com m ission ers p resent to approve excep t where n oted) A.Loan Forgiven ess of Previously Awa rd ed Fu n d s to Hom es W ithin Reach B.Presentation by Dorsey W h itn ey VIII.Executive Director's Com m ents A.Req u est for TIF Assista n ce - 7200-7250 Fra n ce Avenue B.By-La w Review C.Forecast of 2023 HRA Activities IX.HRA Com m issioners' Com m en ts X.Ad jou rn m ent Th e E d ina Housing a n d Redevelop m ent Au thority wa n ts all pa rticip ants to be com fortable b ein g pa rt of th e p u b lic p rocess. If y ou n ee d a ssista n ce in the w a y of h ea ring am pli@ca tion, a n in terp reter, large-p rint docum en ts or som ethin g else, p lease ca ll 952-927-8861 72 hou rs in advance of the m eeting. Date: F ebruary 2, 2023 Agenda Item #: V.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: O ther F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Exec utive Director's R espons e to C ommunity C omments Information Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: None. I N TR O D U C TI O N: No questions were asked at the previous H R A meeting for E xecutive D irector Neal to respond to. Date: F ebruary 2, 2023 Agenda Item #: VI.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of the S pec ial Meeting December 6, 2022 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the draft minutes of the special H R A meeting December 6, 2022. I N TR O D U C TI O N: AT TAC HME N T S: Description Draft Minutes of the Special Meeting December 6, 2022 Page 1 MINUTES OF THE SPECIAL MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 6, 2022 IMMEDIATELY FOLLOWING THE CITY COUNCIL MEETING I. CALL TO ORDER Chair Hovland called the meeting to order at 11:51 p.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Commissioners Anderson, Jackson, Pierce, Staunton, and Chair Hovland. Absent: None. III. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. IV. COMMUNITY COMMENT No one appeared. V. PUBLIC HEARINGS V.A. RESOLUTION NO. 2022-11, SETTING 2023 TAX LEVY AND ADOPTING THE 2023 OPERATING BUDGET – ADOPTED Executive Director Neal said the Commission was asked to hold the public hearing on setting the 2023 tax levy and adopting the 2023 operating budget. He said the public hearing would remain open until December 12, 2022 at noon and that approval of Resolution No. 2022-11 Setting 2023 Tax Levy and Adopting 2023 Operating Budget would be required at the December 20, 2022 HRA meeting. He explained the HRA was a separate taxing authority formed by the City Council in 1974 with the purpose to levy to pay a portion of the administrative expenses and other economic initiatives necessary to operate the HRA including the City's renewed efforts to create affordable housing. Historically those expenses had been paid using TIF funds. Continuing with the plan to reduce the reliance on TIF funds, the levy proposed for 2023 was a 3% increase from $237,300 in 2022 to $244,400 and was the same as the preliminary amount approved by the HRA on September 15. The Commission asked questions and provided feedback. Chair Hovland opened the public hearing at 11:55 p.m. Public Testimony No one appeared. Commissioner Jackson moved to close the public hearing at noon on December 12, 2022, and continue action until December 20, 2022 to adopt Resolution No. 2022-11 adopting the budget and setting the tax levy payable in 2023 as presented. Seconded by Commissioner Pierce. Roll call: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. Minutes/HRA/December 6, 2022 Page 2 VI. EXECUTIVE DIRECTOR’S COMMENTS – Received VII. HRA COMMISSIONER COMMENTS – Received VIII. ADJOURNMENT Motion made by Commissioner Pierce, seconded by Commissioner Jackson, to adjourn the meeting at 11:59 p.m. Roll call: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: F ebruary 2, 2023 Agenda Item #: VI.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of the R egular Meeting Dec ember 8, 2022 Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the draft minutes of the regular H R A meeting D ecember 8, 2022. I N TR O D U C TI O N: AT TAC HME N T S: Description 2022-12-08 DRAFT HRA Regular Minutes Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 8, 2022 7:30 A.M. I. CALL TO ORDER Vice Chair Anderson called the meeting to order at 7:34 a.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Commissioners Jackson, Pierce, Staunton, and Vice Chair Anderson. Absent: Chair Hovland. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Pierce, seconded by Commissioner Jackson, approving the meeting agenda as presented. Roll call: Ayes: Anderson, Jackson, Pierce, and Staunton Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED - AS PRESENTED Member Jackson made a motion, seconded by Member Staunton, approving the consent agenda as presented: V.A. Approve Draft Minutes of the Regular Meeting of November 17, 2022 V.B. Approve 2023 Calendar of Meeting and Religious Observance Dates V.C. Approve Entering into a Master Services Agreement with The Financial Services Consulting Group V.D. Request for Purchase, Change Order #1 Eden Avenue Landscaping, awarding the bid to the recommended low bidder, Peterson Companies, to change substantial completion date to June 1, 2023 V.E. Request for Purchase, Change Order #1 Eden Avenue Improvements, awarding the bid to the recommended low bidder, S.M. Hentges and Sons, to change substantial completion date to June 1, 2023 V.F. Request for Purchase, Change Order #1 Grandview Pedestrian Bridge, awarding the bid to the recommended low bidder, Pember Companies, to change substantial completion date to July 28, 2023 Rollcall: Ayes: Anderson, Jackson, Pierce, and Staunton Motion carried. VII. REPORTS AND RECOMMENDATIONS VII.A. REDEVELOPMENT AGREEMENT FOR MULTIFAMILY HOUSING AT 4620 WEST 77TH STREET – APPROVED Affordable Housing Development Manager Hawkinson said this item pertained to the use of public financing to partially fund private redevelopment at 4620 West 77th Street. She shared comments made by the Federal Reserve Bank of Minneapolis regarding the increasing cost of housing and its impact to the Twin Cities economy then requested the Commission consider approval of the Minutes/HRA/December 8, 2022 Page 2 redevelopment agreement for up to $9,351,000 in gap finance for 4620 West 77th Street. She said the source of the loan would be Pentagon Park pooled TIF funds and SPARC. She reviewed the current conditions of the site adjacent to the Fred Richards Park and the project that would include 276 new housing units with 28 units affordable at 50% AMI and an additional 110 units not to exceed 120% AMI. She shared more about the project that would include a public road, pedestrian and bike baths to Fred Richards Park, then outlined the proposed funding, loan terms, public benefit of the project, and proposed agreement in detail. The HRA asked questions and provided feedback. Motion by Commissioner Pierce, seconded by Commissioner Jackson, to approve the Redevelopment Agreement for Multifamily Housing at 4620 West 77th Street as presented. Roll call: Ayes: Anderson, Jackson, Pierce, and Staunton Motion carried. VII.B. AMENDMENTS TO NEW MULTIFAMILY AFFORDABLE HOUSING POLICY – APPROVED Ms. Hawkinson stated that based on the ever-changing housing market and after reviewing recent housing proposals, staff proposed three changes to the New Multi-Family Affordable Housing Policy: increase the Buy-in from $125,000 per unit to $175,000 per unit; require the inclusion of affordable units if the top half of the density range is requested; and require cooperation with the City designated compliance officer. She said the policy was initially approved in 2015 with changes that had occurred over time which included rents and incomes adjusted annually, then reviewed the proposed changes in detail. Executive Director Neal shared background regarding being the first city in Minnesota to require a buy-in amount and how over time developers were receptive to the amount and that $175,000 was appropriate. The HRA asked questions and provided feedback. Motion by Commissioner Jackson, seconded by Commissioner Pierce, to approve the proposed amendments to the new Multifamily Affordable Housing Policy as presented. Roll call: Ayes: Anderson, Jackson, Pierce, and Staunton Motion carried. VIII. EXECUTIVE DIRECTOR’S COMMENTS – Received IX. HRA COMMISSIONER COMMENTS – Received X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Pierce, to adjourn the meeting at 8:34 a.m. Roll call: Ayes: Anderson, Jackson, Pierce, and Staunton Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: F ebruary 2, 2023 Agenda Item #: VI.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of the S pec ial Meeting December 20, 2022 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the draft minutes of the special H R A meeting December 20, 2022. I N TR O D U C TI O N: AT TAC HME N T S: Description Draft Minutes of the Special Meeting December 20, 2022 Page 1 MINUTES OF THE SPECIAL MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY DECEMBER 20, 2022 IMMEDIATELY FOLLOWING THE REGULAR MEETING I. CALL TO ORDER Chair Hovland called the meeting to order at 8:55 p.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Anderson, Jackson, Pierce, and Staunton. Absent: None. III. MEETING AGENDA APPROVED – AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. IV. COMMUNITY COMMENT No one appeared. V. CONSENT AGENDA ADOPTED – AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Staunton, approving the consent agenda as presented: V.A. Approve Tax Increment Financing Policy Rollcall: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. VI. REPORTS AND RECOMMENDATIONS VI.A. RESOLUTION NO. 2022-11, SETTING 2023 TAX LEVY AND ADOPTING 2023 OPERATING BUDGET – ADOPTED Executive Director Neal said the HRA was a separate taxing authority formed by the City Council in 1974. The purpose of the levy was to pay a portion of the administrative expenses and other economic initiatives that were necessary to operate the HRA including the City's renewed efforts to create affordable housing. Historically those expenses had been paid using TIF funds. He said continuing with the plan to reduce the reliance on TIF funds, the levy proposed for 2023 was an increase from $237,300 in 2022 to $244,400, which was the same as the preliminary amount approved by the HRA on September 15. He noted a public hearing on December 6 with no comments and that staff recommended approval. Commissioner Jackson introduced and moved adoption of Resolution 2022-11, adopting the budget and setting the tax levy payable in 2023. Commissioner Staunton seconded the motion Roll call: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. VII. EXECUTIVE DIRECTOR’S COMMENTS – Received Minutes/HRA/December 20, 2022 Page 2 VIII. HRA COMMISSIONER COMMENTS – Received IX. ADJOURNMENT Motion by Commissioner Jackson, seconded by Commissioner Anderson, to adjourn the meeting at 9:05 p.m. Roll call: Ayes: Anderson, Jackson, Pierce, Staunton, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: F ebruary 2, 2023 Agenda Item #: VI.D. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of the R egular Meeting January 5, 2023 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the draft minutes of the regular H R A meeting J anuary 5, 2023. I N TR O D U C TI O N: AT TAC HME N T S: Description Draft Minutes of the Regular Meeting January 5, 2023 Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JANUARY 5, 2023 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:30 a.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Chair Hovland, Commissioners Agnew, Jackson, Risser, and Hovland. Absent: Member Pierce. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS AMENDED Motion by Commissioner Jackson, seconded by Commissioner Agnew, approving the meeting agenda as amended, postponing Items V.A., V.B., and V.C. Roll call: Ayes: Agnew, Jackson, Risser, and Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. V.A. EXECUTIVE DIRECTOR’S RESPONSE TO COMMUNITY COMMENTS There were no comments received. VI. CONSENT AGENDA ADOPTED - AS AMENDED Member Risser made a motion, seconded by Member Agnew, approving the consent agenda as presented: V.A. Draft Minutes of the Special Meeting December 6, 2022 V.B. Draft Minutes of the Regular Meeting December 8, 2022 V.C. Draft Minutes of the Special Meeting December 20, 2022 V.D. Election of Officers V.E. Appointment of the Executive Director of the HRA V.F. Resolution No. 2023-01; Designating Official Newspaper V.G. Resolution No. 2023-02; Designating Official Depositories Rollcall: Ayes: Agnew, Jackson, Risser, and Hovland Motion carried. VII. REPORTS AND RECOMMENDATIONS VII.A. 2022 YEAR IN REVIEW – RECEIVED Economic Development Manager Neuendorf said each year staff created a year in review report that summarized the recent work of the HRA and included a year end status update of HRA programs. He shared 2022 accomplishments that included 70th and France redevelopment, Solhem 2 Apartments, 404 Senior Apartments, Sound Apartments, Edina Theater, Edina Innovation Lab, various policy updates, Grandview Yard, Grandview District improvements, housing rehabilitation program, and active and pending TIF districts. The Board asked questions and provided feedback. Minutes/HRA/January 5, 2023 Page 2 VII.B. INTRODUCTION TO HRA, ECONOMIC DEVELOPMENT AND AFFORDABLE HOUSING – RECEIVED Mr. Neuendorf provided an introduction and overview of the functions of the Edina Housing and Redevelopment Authority that included history, scope, activities, and authority of the HRA, then reviewed HRA accomplishments that provided benefits to the general public and community goals. The Board asked questions and provided feedback. VII.C. FORECAST OF 2023 HRA ACTIVITIES – POSTPONED Mr. Neuendorf provided a forecast of possible projects that could require involvement of the Housing and Redevelopment Authority. VIII. EXECUTIVE DIRECTOR’S COMMENTS – Postponed VIII.A. BY-LAW REVIEW IX. HRA COMMISSIONER COMMENTS – Postponed X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Agnew, to adjourn the meeting at 8:58 a.m. Roll call: Ayes: Agnew, Jackson, Risser, and Hovland Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: F ebruary 2, 2023 Agenda Item #: VI I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Loan F orgiveness of P reviously Awarded F unds to Homes Within R eac h Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the forgiveness of previously awarded funds to West H ennepin Affordable Housing L and Trust dba Homes Within R each. I N TR O D U C TI O N: I n 2020 the H R A awarded H omes Within Reach $1,300,000 for the acquisition and rehabilitation of single family homes that would be placed into a land trust with the house sold to an income eligible homebuyer. T his program was augmented with an additional $2,000,000 in 2021. Of the $3,300,000 awarded $960,000 was to be returned to the C ity once the houses were sold. S taff is requested that the $960,000 be used to acquire and rehabilitate 4 additional homes for home ownership and then be forgiven. AT TAC HME N T S: Description Staff Report Pres entation February 2, 2023 Chair and Commissioners of the Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Loan Forgiveness of Previously Awarded Funds to Homes Within Reach Information / Background: The Housing Preservation Program was created in June 2020 through the creation of a $1,300,000 revolving loan to the West Hennepin Affordable Housing Land Trust (WHAHLT) dba Homes Within Reach (HWR). The City mailed out over 3000 postcards with the message “Not for a Tear Down” offering the option for homes valued up to $425,000 to be sold as-is to HWR, rehabilitated, and sold to income eligible buyers through the land trust program. Of the initial funds awarded, $840,000 was a grant and the remaining $460,000 would return to the City’s Affordable Housing Trust Fund upon sale of the houses. Due to the success of the program, on August 26, 2021 the HRA awarded an additional $2,000,000 to expand the program. Of this, $1,500,000 was structured as a grant and $500,000 would be returned upon sale of the houses. Rather than requiring HWR to return the combined $960,000 to the City’s Affordable Housing Trust Fund, Staff is requesting that the HRA approve forgiving the loan so HWR can use those funds to buy and rehabilitate four additional houses for affordable home ownership. Description of the Community Land Trust practice: HWR establishes affordability by using the Community Land Trust practice to acquire and retain the ownership of real property, rehabilitate and then sell the improvement (house) to buyers earning less than 80% Area Median Income (AMI). The HWR Community Land Trust program removes the land value from the mortgage equation to create initial affordability. The home costs less than market rate homes because HWR buyers purchase only the house and enter into a Ground Lease with HWR to secure the long-term rights and use of the land. This land trust practice offers long-term affordability, where each affordable home will offer homeownership to 7-12 families throughout the life of the lease. The homes are made permanently affordable for work-force homeowners through two contractual provisions embedded in the Ground Lease. STAFF REPORT Page 2  The first is a pricing formula that provides the owner with a fair amount of equity (35%), while ensuring the sale price for subsequent low-to-moderate income households is affordable.  The second requires the homeowner to sell to another low-to-moderate income household. In addition, the provisions ensure the home continues to be affordable with each sale. The Ground Lease allows the homeowner to secure long-term rights to the land. In addition, the homeowners have full use of the land and are responsible for the property and payment of all real estate taxes on the house and the parcel of land. The homeowner may sell his/her home only to an income qualified buyer. The resale price is based on a formula, which (based on market conditions) allows the seller to recover the original cost of the house plus a modest profit. Therefore, assuming the house has retained or increased in value, the homeowner who sells his or her home will get all of their equity plus a percentage (35%) of the home’s appreciation (the amount that a home has increased in value since it was purchased). As a result, Community Land Trust homes remain affordable for consecutive generations of homeowners, because the resale restriction ensures permanent affordability. Program Status: Since June 2020, HWR has acquired 10 single family homes in Edina. Seven have been thoroughly rehabilitated so no major mechanical work will be needed for 10 years or more, and the houses sold to income eligible homeowners for $200,000 on average. This has allowed seven families to realize home ownership in Edina, included a cook in an Edina restaurant with a family of four; a young couple with two kids to move closer to grandma who provides daycare; a single mom who works in the public school system as a teaching assistant, and others. Of the seven home buyers, five are first time homebuyers and two are first generation homebuyers. Rather than returning the sale proceeds upon each home sale, the funds have been rolled into a subsequent houses for rehabilitation. Based on the existing agreements, a small installment has been redeposited into the Affordable Housing Trust Fund, with the remaining due upon the sale of the final houses. What community needs does this activity address: In today’s market, Edina is confronted with the fact that entry-level properties are overpriced for most work-force households who work or live in the City. Increased home values have taken place because of a reduction in supply and increase in demand, while wages have not increased accordingly and cannot keep pace with increases in housing costs. HWR program not only offers value and benefits to the families it has assisted in becoming homeowners; the program also expands homeownership opportunities, retains community wealth, preserves older modest homes in the City, and supports young families who want to enroll their children in area schools. It also provides a mechanism to invest in affordable homeownership, which enhances residential stability and the preservation of housing affordability by recycling funds from owner to owner. STAFF REPORT Page 3 Housing is a multiplier, a basic need that impacts every part of life: education, health, economic success. HWR’s mission is to continue creating affordable homeownership for low-to-moderate income work-force households, which in turn stabilizes the family unit and adds value to the community. Budget Information: Affordable Housing Trust Fund Estimated Balance Requests Beginning Balance* $ 8,460,000 Market Street (2019) ($750,000) 4d Pilot Program 2018 - NO TAKERS ($160,000) 4d Pilot Program -2019 ($50,000) 425 Jefferson ($152,717) Home Rehabilitation Program (Pilot) ($250,000) Home Rehabilitation Program (Aug. 2021) ($750,000) Home Rehabilitation Program (2022) ($500,000) LISC Single Family Partnership Program ($1,260,000) First Generation Grant ($150,000) Single Family Ownership Program (2020) ($840,000) Single Family Ownership Program (2021) ($1,500,000) Single Family Ownership Program (2023) ($960,000) Ending Balance $ 1,137,283 Sources and Uses: $960,000 Forgivable Loan Sources (for 4 houses) Uses Affordable Housing Trust Fund $960,000 Acquisition $1,600,000 Partner Contributions $240,000 Rehabilitation $ 300,000 Home Buyers $800,000 Project Expenses $ 100,000 TOTAL $2,000,000 TOTAL $2,000,000 Compliance with City Approved Plans Continuing to support the partnership between the City of Edina and the Homes Within Reach program is supported by multiple goals within both the Housing Chapter of the Comprehensive Plan and the Housing Strategy Task Force report. 2040 Comprehensive Plan Goal 1: Accommodate all planned residential growth in the city based on planned infrastructure investments and other community goals and assets. 3. Recognize that successfully reaching affordable housing goals assists the city in achieving related community goals, including: a. Accommodating housing for families with children in Edina schools. The Homes Within Reach program preserves entry level and modest Edina homes to makes available for current and future families who want to raise their children in Edina. STAFF REPORT Page 4 Goal 2: Encourage the development and maintenance of a range of housing options affordable to residents at all income levels and life stages. 1. Encourage the production of additional affordable housing units and retention of existing affordable housing units to meet the city’s housing needs and its Metropolitan Council affordable housing need allocation of 1,804 units. 9. Promote owner-occupied units over rental units when providing affordable housing The Homes Within Reach program is an affordable single family ownership housing program. Goal 3: Continue to support high quality design of residences and residential neighborhoods in a way that furthers sustainability, character, and livability, and maintains long term investment. 4. Maintain some of Edina’s lower square footage housing stock in order to attract new residents and retain existing residents, including providing affordable options. The Homes Within Reach program preserves neighborhood based, modest sized housing and provides an affordable option. Housing Strategy Task Force Report A. Promote Affordable and Attainable Housing 3) Attract new residents and retain existing residents by preserving and expanding housing options for moderate- and low-income households. The Homes Within Reach program is an affordable housing program for both existing and new residents. D. Encourage Preservation and Promotion of Diverse Housing Stock 1) Assist neighborhoods in retaining starter housing stock that can accommodate young families. 3) Maintain some of Edina’s single-family, lower square footage housing stock. The Homes Within Reach program accomplishes these stated goals. Housing and Redevelopment Authority Homes Within Reach Stephanie Hawkinson Affordable Housing Development Manager February 2, 2023 Guiding Documents EdinaMN.gov 2 •The Comprehensive Plan:Equal access and opportunities for all residents and fostering economic equity. •Race and Equity Report: “Perceptions exist that city-based housing programs and policies are contributing to the lack of people of color in Edina.” •Council’s Equity Statement: “Our commitment to diversity, equity and inclusion will be a continuous process of learning and adapting to the multiple needs of all in the community, while consistently applying an equity lens in all decisions and interactions.” •Council’s Statement on Engagement: “As the Edina City Council, we are committed to fostering an engaged community built on trust. We will do this by intentionally focusing on equity, diversity and inclusion and creating a dialogue of perspectives. “ West Hennepin Affordable Housing Land Trust “We are a non-profit, community-based organization that creates and preserves affordable homeownership opportunities for working households in suburban Hennepin County.” Who is WHAHLT (dba Homes Within Reach)? EdinaMN.gov 3 Photo credit: Homes Within Reach website Land Trust Model EdinaMN.gov 4 For qualified applicants, HWR provides safe, healthy and hazard-free entry-level homes in well-established neighborhoods that offer a variety of educational, recreational, shopping and medical services. Program Outline Goals •Preserves homeownership opportunities for low-to- moderate income households •Retains community and homeowner wealth •Enhances residential stability •Preserves long-term housing affordability •Serves households with incomes 60%-80% AMI (< $82,720) EdinaMN.gov 5 •June 2020 –Housing Preservation Program created with $1.3MM Line of Credit •August 2021 –An Additional $2MM awarded TOTAL: $3,300,000 •$960,000 to be repaid to City •$2,340,000 gap financing Background Information EdinaMN.gov 6 Permanents Sources (est. to date) Affordable Housing Trust Fund $2,275,340 Other Public $ 308,900 Home Buyers –house sales $1,869,000 TOTAL $ 4,453,240 Uses (est. to date) Acquisition $3,107,600 Rehabilitation $1,084,340 Project Expenses $ 261,300 TOTAL $4,453,240 Program Process Home Seeker Submits Application WHAHLT Searches for House WHAHLT Submits Request for Funds WHAHLT Purchases and Rehabs Home WHAHLT Sells House to Homebuyer; Retains Land WHAHLT Repays House; Sales Proceeds to HRA EdinaMN.gov 7 Todays’ Request: Rather than requiring Homes Within Reach to return the $960,000, allow the funds to support the acquisition, rehabilitation and sale of four more homes and then be forgiven. Program Impact (since 2020) EdinaMN.gov 8 •Nine* houses bought with these program funds. •Houses were sold for roughly $200,000. •Six houses are now owned and occupied by families with young children. •Home ownership made a reality for a researcher, educator, utility worker, chef, family advocate, etc. *a 10th house bought, rehabbed and sold but with different sources of funds Public Benefits EdinaMN.gov 9 Complies with multiple Comprehensive Plan Goals: -Retain existing affordable housing units to meet the city’s housing needs and its Metropolitan Council affordable housing need allocation of 1,804 units. -Accommodate housing for families with children in Edina schools. -Promote owner-occupied units over rental units when providing affordable housing -Maintain some of Edina’s lower square footage housing stock in order to attract new residents and retain existing residents, including providing affordable options. Complies with Housing Strategy Task Force Goals: -Attract new residents and retain existing residents by preserving and expanding housing options for moderate-and low-income households. -Assist neighborhoods in retaining starter housing stock that can accommodate young families. -Maintain some of Edina’s single-family,lower square footage housing stock. EdinaMN.gov 10 Questions? Date: F ebruary 2, 2023 Agenda Item #: VI I.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:P res entation by Dorsey W hitney Information Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for informational purposes only. I N TR O D U C TI O N: T he H R A retains the Dorsey & W hitney law firm to provide specialized legal support for redevelopment projects that include public financing. T heir expertise supplements the legal role of C ampbell Knutson, the City Attorney. Dorsey & W hitney attorney Jay Lindgren will provide a brief overview of his supporting role on H R A projects. Date: F ebruary 2, 2023 Agenda Item #: VI I I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:R equest for T I F As s is tance - 7200-7250 F ranc e Avenue Information Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for informational purposes only. I N TR O D U C TI O N: T he developer has requested that the C ity consider the use of T I F to support infrastructure improvements on this vacant commercial site. T he project consists of two separate buildings connected by roadway and landscaping elements that will be available for public use. T he first phase–an office building–was granted preliminary zoning approvals in fall 2022. T he second phase is anticipated to be considered for site plan this spring. T hat proposal is expected to abide by the zoning parameters defined in the preliminary approval. T his site has been vacant and troubled for several years. O ne of the structures was condemned due to structural safety concerns. T he developer has already demolished the buildings to prevent injuries and to remove a nuisance that had become the target for vandals. A T I F D istrict was previously set up for the multi-family building that was previously approved for this site in 2018-19. T hat project failed to secure private financing and will not be built. If the C ity C ouncil approves the use of T I F for the new project, the old District will be removed and replaced. S taff is in discussions with the developer to better understand their financial needs. A report is anticipated to be presented to the H R A in late F ebruary or early March. Date: F ebruary 2, 2023 Agenda Item #: VI I I.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S cott H. Neal, C ity Manager Item Activity: Subject:By-Law R eview Information Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: None. I N TR O D U C TI O N: T he B y-L aws of the H ousing and Redevelopment Authority are reviewed on an annual basis. Staff recommends no amendments to the by-laws at this time. Date: F ebruary 2, 2023 Agenda Item #: VI I I.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:F orecast of 2023 HR A Activities Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for information and discussion purposes only. I N TR O D U C TI O N: S taff will present a forecast of possible projects that may require involvement of the Housing and R edevelopment Authority.