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22-100 (11-01) Approve LHIA Affordable Homeownership Pilot Application for HOPE RESOLUTION NO. 22-100 A RESOLUTION APPROVING THE LOCAL HOUSING INCENTIVES ACCOUNT (LHIA) AFFORDABLE HOMEOWNERSHIP PILOT APPLICATION TO THE METROPOLITAN COUNCIL FOR THE HOME OWNERSHIP PROGRAM FOR EQUITY (HOPE) WHEREAS, the City has elected to participate in the Local Housing Incentives program established by the Metropolitan Livable Communities Act (LCA) as well as partnered with the Metropolitan Council to establish a set of goals for affordable and lifecycle housing; and WHEREAS, the City established the Home Ownership Program for Equity to make City owned lots available for affordable and equitable homeownership development; and WHEREAS, HOPE prioritizes organizations that have demonstrated success in building relationships of trust with Black, Indigenous and people of color and in serving first generation homebuyers and other underrepresented homebuyers; and WHEREAS, systemic racism in housing occurs today – Black, Indigenous, and other communities of color continue to face discrimination and lack of access to affordable housing and home ownership; and WHEREAS, the City has higher racial disparities in homeownership than the regional average; and WHEREAS, the share of single-family housing stock in the City (72 percent) and the share of owner-occupied housing stock (74 percent) is higher than the regional average; and WHEREAS, the City has an average home sale price ($566,347) higher than what is affordable to a household earning 80 percent of Area Median Income ($355,600); and WHEREAS, the affordable housing need in the 51 to 80 percent of Area Median Income level (116 units) is more than half of the total affordable housing need (222 units); and WHEREAS, the qualified developers have a demonstrated record of serving Black, Indigenous, and/or other households of color in homeownership at rates at 70-80 percent and are greater than the city and or region’s homeownership rates for those same groups; and DocuSign Envelope ID: 44527F4A-F47C-4977-91B6-004166A33794 WHEREAS, the qualified developers have a current waiting list consisting of 80 percent Black, Indigenous, or other households of color and are at levels that are greater to the city population; and WHEREAS, the project team includes a lender, realtor, or other homebuyer- facing team member that is reflective of the Black, Indigenous, or other households of color that have disparate homeownership rates in the region; and WHEREAS, the marketing efforts for sale of the homes affirmatively further fair housing; and WHEREAS, HOPE will provide affordable homeownership opportunity to homebuyers with incomes less that 80 percent of Area Median Income; and WHEREAS, HOPE homes will remain affordable upon resale for ninety-nine years; and WHEREAS, HOPE addresses a need specific to our community to provide affordable and equitable homeownership opportunity on City owned vacant lots; and WHEREAS, the LHIA Affordable Homeownership Pilot funding would assist in filling the development financing and construction costs gaps. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GOLDEN VALLEY that this Council supports the Local Housing Incentives Account Affordable Homeownership Pilot application to the Metropolitan Council for the Home Ownership Program for Equity. Adopted by the City Council of Golden Valley, Minnesota this 1st day of November 2022. ____________________________ Shepard M. Harris, Mayor ATTEST: _______________________ Theresa Schyma, City Clerk DocuSign Envelope ID: 44527F4A-F47C-4977-91B6-004166A33794