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07-05-23 HRA Special Meeting Agenda July 5, 2023 — 6:30 PM Golden Valley City Hall Hybrid Meeting 1.Call to Order 1.A.Roll Call 2.Approval of Agenda 3.Public Hearing 3.A.Public Hearing and Adopt Resolutions Approving Contracts for Development and Transfer of Home Ownership Program for Equity Properties 1605 Douglas Drive North, 47XX/4707 Circle Down, and 208 Meander Road 4.New Business 4.A.Adopt HRA Resolution No. 23-10 Accepting Metropolitan Council Livable Communities Grant, Approving Grant Agreement with Metropolitan Council, and Authorizing Sub Recipient Grant Agreements with Greater Metropolitan Housing Corporation for Home Ownership Program for Equity 4.B.Adopt HRA Resolution No. 23-11 Authorizing City Staff to Apply to the Minnesota Housing Community Impact Fund for the Home Ownership Program for Equity 5.Adjournment HRA SPECIAL MEETING AGENDA Housing and Redevelopment Authority meetings are being conducted in a hybrid format with in- person and remote options for attending, participating, and commenting. The public can make statements in this meeting during public comment sections. Remote Attendance/Comment Options: Members of the public may attend this meeting by watching on cable channel 16, streaming on CCXmedia.org, streaming via Webex, or by calling 1-415-655-0001 and entering access code 2463 155 5683 and webinar password 1234. Members of the public wishing to address the HRA remotely during public comment sections have two options: Via web stream - Stream via Webex and use the ‘raise hand’ feature. Via phone - Call 1-415-655-0001 and enter meeting code 2463 155 5683 and webinar password 1234. Press *3 to raise your hand. City of Golden Valley HRA Special Meeting July 5, 2023 — 6:30 PM 1 EXECUTIVE SUMMARY Community Development 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting July 5, 2023 Agenda Item 3.A. Public Hearing and Adopt Resolutions Approving Contracts for Development and Transfer of Home Ownership Program for Equity Properties 1605 Douglas Drive North, 47XX/4707 Circle Down, and 208 Meander Road Prepared By Cherie Shoquist, Housing and Economic Development Manager Summary The City Council approved the Public Land Disposition Ordinance on December 21, 2021 (Motion Carried 5-0). The Housing and Redevelopment Authority received and filed the City property inventory and recommendations on March 15, 2022 (Motion Carried 5-0). The HRA identified 1605 Douglas Drive North, 4707 Circle Down, and 208 Meander Road for development of affordable homes. An information and engagement meeting with potential developers and other stakeholders was held on May 31, 2022. The HRA approved the Home Ownership Program for Equity (HOPE) Guidelines and Request for Qualifications (RFQ) on June 21, 2022 (Motion Carried 5-0). The RFQ was released on June 22, 2022, and an information session was held with interested developers on June 29, 2022. Qualifications were due on July 22, 2022. The HRA discussed the responses to the RFQ at the August 10, 2022, Work Session. Contingent on the ability of the developers to successfully compete for development gap funds, the HRA approved the following qualified developers at the August 16, 2022 Special Session (Motion Carried 5-0): Twin Cities Habitat for Humanity to develop a single family home at 1605 Douglas Drive North Greater Metropolitan Housing Corporation to develop a single family home at 4707 Circle Down Greater Metropolitan Housing Corporation to develop a single family home at 208 Meander Road The June 21, 2022 HRA approval of the land write down in the HOPE Guidelines and the August 16, 2022 approval of the developers for specific properties satisfied funders requirements for both site control and funding leverage. The developers will build 4 Bedroom, 1.75 – 2 Bath, 2,000-3,000 square foot homes with 2 car attached garages. The homes will be energy efficient and built to Minnesota Green Communities Criteria as required by Minnesota Housing, the state housing finance agency that has committed funds. 2 The Green Communities Criteria produces green affordable housing that: results in a high-quality, healthy living environment; lowers residents’ utility costs; enhances residents’ connection to nature; protects the environment by conserving energy, water, materials and other resources; and advances the health of local and regional ecosystems. The intent is to maximize energy savings, indoor air quality, and help ensure the health and safety of residents. The Green Communities requirements and the design of the homes mitigate noise and air pollution concerns. Air quality is always changing, we have recently experienced degraded air quality across the state with the Canadian wildfire smoke for example. The American Lung Association has identified corridors within 0.3 miles of a highway to be more susceptible to air pollution, these areas are highlighted on the map. As an urban city, 54% of housing units fall within these corridors. MPCA did some detailed air quality mapping in 2017, scores in Golden Valley ranged from 1.5-2.2 (labeled) from a statewide range of 0.0-21.0 and no pollutants were found to be above the health benchmark. The developers are committed to expanding homebuyers opportunity to make the choice of where they will live. The homebuyers will have to opportunity to assess the benefits of the location including the school districts, proximity to jobs, transportation corridors, open spaces, and other community amenities. The future homebuyers will ultimately make the decision regarding acceptable noise and air pollution in an urban environment when they consider purchasing the property from one of our partners. The approvals were made contingent on the developer’s ability to access additional funds for development. The developers were successful in competing for Minnesota Housing Community Impact Funds ($40,000 per unit), Met Council ($112,000 for the 2 Greater Metropolitan Housing Corporation units), and Hennepin County HOME funds ($60,000 per unit through West Hennepin Affordable Housing Land Trust). To contribute to the development and impact the affordability gap and to leverage funding partner resources, the HRA will provide a land write down to the developers and will sell each property for $1. The current market appraised values are: $165,000 for 1605 Douglas Drive North, $165,000- $170,000 for 4707 Circle Down, and $175,000 for 208 Meander Road. Greater Metropolitan Housing Corporation and Twin Cities Habitat for Humanity will construct single family homes and partner with West Hennepin Community Land Trust in order serve homebuyers with incomes at 60% - 80% of Area Median Income. The community land trust model secures the long-term affordability of the property for 99 years. Construction is expected to begin in summer/fall of 2023 and be completed within a year of construction start. Twin Cities Habitat for Humanity (Habitat) was established in 1985 by a Lutheran congregation in South Minneapolis. Since then, more than 1,500 families have partnered with Habitat to achieve affordable homeownership. Their mission is to bring people together to create, preserve, and promote affordable homeownership and advance racial equity in housing. Their vision is an equitable Twin Cities region where all families have access to the transformational power of homeownership. In recent years, Habitat homebuyers are 80% Black, Indigenous and people of color. There are 14 existing Habitat homes in Golden Valley. Greater Metropolitan Housing Corporation (GMHC) has been providing affordable homeownership 3 opportunities throughout the Twin Cities with a focus on quality, sustainability, and energy efficiency since 1970. GMHC has sold nearly 2,000 homes to low to moderate income homebuyers. GMHC’s mission is to preserve, improve and increase affordable housing for low and moderate income individuals and families, assist communities with housing revitalization as well as create and carry out demonstration projects. In recent years, GMHC homebuyers served are 70% Black, Indigenous and people of color. There are 15 existing GMHC homes in Golden Valley. West Hennepin Affordable Housing Land Trust (WHALT) – Homes Within Reach (HWR) is a non-profit community- based organization that creates and preserve affordable homeownership opportunities for working households in suburban Hennepin County. Since 2001, HWR has helped over 200 workforce families earning less than 80% Area Median Income (AMI) become homeowners by acquiring, remodeling and selling properties through proven Community Land Trust practice (CLT) that: allows qualified clients to purchase the home and lease the land at a nominal fee and reduces the mortgage, down payment and closing costs. There are 5 existing HWR homes in Golden Valley. Financial or Budget Considerations Necessary due diligence such as an appraisal and phase 1 environmental reports were solicited. The HRA is being asked to consider writing down the land and conveying it to the developer for $1 and pursuant to the terms of the Development Agreement. Legal Considerations All attachments have been reviewed and approved by the City Attorney. Equity Considerations The Home Ownership Program for Equity meets the City’s goals to preserve and promote economically diverse housing options in our community by creating high quality housing in Golden Valley for households with a variety of income levels, ages, and sizes. Dedicated publicly owned land for more affordable housing for homeownership is a valuable resource to meet our affordable housing goals. HOPE recognizes that 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. There are currently approximately 1,603 racially restrictive covenants in Golden Valley including 61 covenants on City/HRA owned parcels. The HOPE properties at 1605 Douglas Drive and 208 Meander have a racially restrictive covenant that will be discharged by the City prior to transfer of the properties. Cities must also be more inclusive of diverse populations by creating opportunities and resources for housing that are accessible at all affordability levels. Given existing racial disparities in housing, providing both affordable rental and homeownership opportunity is not only vital to providing all individuals and families with housing choice, but also with access to stable housing that impacts their health, education, employment, and ability to build wealth. Recommended Action Motion to Adopt Resolution No. 23-07 Authorizing Transfer of Property and Approving Contract for Development on 1605 Douglas Drive North. Motion to Adopt Resolution No. 23-08 Authorizing Transfer of Property and Approving Contract for Development on 47XX/4707 Circle Down. Motion to Adopt Resolution No. 23-09 Authorizing Transfer of Property and Approving Contract 4 for Development on 208 Meander Road. Supporting Documents Resolution No. 23-07 Transfer of Property 1605 Douglas Drive North Racial Covenant Report 1605 Douglas Drive North Contract for Development 1605 Douglas Drive Declaration of Easements 1605 Douglas Drive North Resolution No. 23-08 Transfer of Property 47XX Circle Down Contract for Development 47XX Circle Down Resolution No. 23-09 Transfer of Property 208 Meander Road Contract for Development 208 Meander Road 208 Meander Road Racial Covenant Report 5 RESOLUTION NO. 23-07 A RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 1605 DOUGLAS DRIVE NORTH TO TWIN CITIES HABITAT FOR HUMANITY, INC, IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT WHEREAS, The Housing and Redevelopment Authority in and for the City of Golden Valley (the “HRA”) has been established by the city of Golden Valley (the “City”) to promote development and redevelopment within the community; and WHEREAS,the HRA desires to develop certain real property pursuant to and in furtherance of the Home Ownership Program for Equity adopted by the HRA, said real property being described as follows: Address: 1605 Douglas Drive North, Legal: as described in Exhibit A, attached hereto; and WHEREAS,the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS,a developer, Twin Cities Habitat for Humanity, Inc., has been identified as the purchaser of the described property and in accordance with a Contract for Development; and WHEREAS,a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED,by the Housing and Redevelopment Authority in and for the City of Golden Valley: 1. A public hearing has been held for 1605 Douglas Drive North and it is authorized to be sold for $1 to Twin Cities Habitat for Humanity, Inc. in accordance with a Contract for Development with the HRA. 2. The Chairperson and Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Twin Cities Habitat for Humanity, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota this 5th day of July 2023. ____________________________ Maurice Harris, HRA Chair ATTEST: ______________________________ Timothy J. Cruikshank, Executive Director 6 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Lots 1 and 2, Belmont, according to the recorded plat thereof, Hennepin County, Minnesota. (Abstract Property) 7 Racially Restrictive Covenant 1605 Douglas Drive Golden Valley, MN 55427 8 1,603 racially restrictive covenants in Golden Valley 61 covenants on City/HRA owned parcels 9 10 "Proper restrictions have been placed on every lot insuring a good neighborhood and neat, attractive homes" "We sell only to white people" 11 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 CONTRACT FOR DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY and TWIN CITIES HABITAT FOR HUMANITY, INC. at 1605 DOUGLAS DRIVE, GOLDEN VALLEY, MN This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Golden Valley 7800 Golden Valley Road Golden Valley, Minnesota 55427 Telephone: (763) 593-3968 12 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 1 CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (this “Agreement”) is made and entered into as of this ___ of ____________, 2023, by and between the Housing and Redevelopment Authority in and for the City of Golden Valley, a body corporate and politic under the laws of the State of Minnesota, having its principal office at: 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the “HRA”), and Twin Cities Habitat for Humanity, Inc., a non-profit corporation under the laws of Minnesota, having its principal office at: 1954 University Avenue, St. Paul, Minnesota 55104 (the “Developer”). WITNESSETH: WHEREAS, the HRA has acquired the property located at: 1605 Douglas Drive, Golden Valley, legally described on the attached Exhibit A (the “Property”) from the City of Golden Valley (the “City”). WHEREAS, the City of Golden Valley (the “City”) and the HRA have previously created and established the Home Ownership Program for Equity (the “HOPE Program”) pursuant to the authority granted in Minnesota Statutes Sections 469.001 through 469.047; and WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in carrying out the objectives of the HOPE Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA and the Developer, each party does hereby represent, covenant, and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) City. The City of Golden Valley, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit B. (c) Developer. Twin Cities Habitat for Humanity, Inc. (d) Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. (e) Event of Default. Event of Default has the meaning given such term in Section 8.1. 13 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 2 (f) Holder. The term “holder” in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) HOPE Program. The Home Ownership Program for Equity which makes public land available for the development of homes for affordable and equitable homeownership opportunity in the City. (h) Housing and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (i) HRA. The Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota. (j) Improvements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Construction Plans approved by the HRA. (k) Mortgage. The term “mortgage” shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (l) Property. The real property legally described on the attached Exhibit A, having a street address of: 1605 Douglas Drive, Golden Valley. (m) Qualified Buyer. A purchaser whose income does not exceed 60-80 percent of the Area Median Income as defined by Minnesota Housing Finance Agency’s Community Homeownership Impact Fund income limits for the 11 county Twin Cities Metro Area. (n) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, natural disasters, litigation commenced by third parties which results in delays or acts of any federal, state, or local government, except those contemplated by this Agreement, which are beyond the control of the Developer. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Legal Description of the Property B. List of Construction Plan Documents C. Form of Quit Claim Deed D. Form of Certificate of Completion Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. 14 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 3 (b) The words “herein” and “hereof” and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1 By the Developer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the execution, delivery, and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, the Construction Plans, and all local, state, and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state, and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. Section 2.2 By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 15 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 4 2.2 (b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA’s discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1 Sale of Property to Developer. The HRA is the fee owner of the Property. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an “as is” condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit C. The purchase price for the Property will be $1.00. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, (a) The HRA shall surrender a copy of an owner’s title insurance policy for the Property, and the abstract for the Property, if in the HRA’s possession or control, to the Developer or to the Developer’s designated title service provider; and (b) The Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer’s lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney’s title opinion, at Developer’s selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. The Developer agrees that it will not object to the Declaration of Easements a form of which is attached as Exhibit ____ (the “Declaration”) and that the Declaration shall be a permitted encumbrance on the Property. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the HRA shall have no obligation to cure any objections and may inform the Developer of such. The Developer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. Section 3.3 Well Disclosure. The HRA does not know of any wells on the Property. Section 3.4 Closing. Closing on the Property will take place on or before June 26, 2023, or such other date as may be agreed to by the parties in writing. At closing, the Developer will provide the HRA with the purchase price of the Property. If closing has not occurred by October 2, 2023, either party may terminate this Agreement. Section 3.5. Closing Costs. The Developer will pay: (a) the closing fees charged by its title insurance company or other closing agent, if any, utilize d to close the transaction for Developer; and (b) the recording fees to record this Agreement and the deed transferring title to the Developer. The HRA will pay any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. 16 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 5 Section 3.6. Sewer and Water. The Property is currently not served by City water. HRA warrants that City sanitary sewer is available. Section 3.7. ISTS Disclosure and Removal. The HRA is not aware of any individual sewage treatment system on the Property. The Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and the Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The HRA is conducting a Phase I environmental assessment of the Property. The HRA will provide the Developer with a copy of the Phase I environmental assessment no later than 10 business days after execution of this Agreement by both parties. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes, pollution, or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such inspections and tests regarding soil conditions and hazardous wastes as the Developer may desire. Said inspections and tests shall be performed at the Developer’s expense. The Developer shall provide the HRA with copies of any reports received. Permission to enter the Property to conduct such inspections and tests must be given in writing under the terms and conditions established by the HRA. Section 3.10 Survey. The HRA will allow reasonable access to the Property for the Developer to conduct a survey, if desired by the Developer. Said survey shall be performed at the Developer’s expense. The Developer shall provide the HRA with a copy of any survey performed. Permission to enter the Property to conduct the survey must be given in writing under the terms and conditions established by the HRA. Section 3.11 Lease to Qualified Buyer; Sale to Community Land Trust; Covenant on Use. The Developer agrees to lease the Improvements via a ground lease to a Qualified Buyer within 180 days of issuance of a Certificate of Occupancy or after that time as a greed upon by the parties. The Developer agrees to convey the Property to a community land trust that secures the long-term affordability of the Property for 99 years. Prior to agreeing to a ground lease of the Improvements to a Qualified Buyer or conveyance of the Property to a community land trust, the Developer shall provide the HRA with sufficient evidence that the potential lessee is a Qualified Buyer and the community land trust is a land trust that secures the long-term affordability of the Property for 99 years. In addition, the Developer must obtain the HRA’s prior approval of the terms and conditions of its purchase agreement with the community land trust, and the purchase agreement terms and conditions must be consistent with this Agreement. This Agreement constitutes a covenant on the part of the Developer, its successors and assigns, to develop the Property and Improvements for affordable owner-occupied, single-family residential purposes as permitted by the HRA. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS 17 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 6 Section 4.1. Construction of Improvements. The Developer shall construct the Improvements on the Property at the Developer’s cost in accordance with the Construction Plans, and shall maintain, preserve, and keep the Improvements in good repair and condition until sale of the Property to a community land trust. Section 4.2. Building Plans. The Developer agrees that the City of Golden Valley Building Official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state, and federal regulations. The HRA staff shall, within 25 days of receipt of Construction Plans and an application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA staff determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA staff shall be a conclusive determination that the Construction Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall begin within 14 days of Closing and construction of the Improvements shall be completed within 365 days of the commencement of construction. All construction shall be in conformity with the approved Construction Plans. Periodically during construction , the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer’s construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the form attached hereto as Exhibit D. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Developer to construct the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer to take or perform in order to obtain such certification. Section 4.5 Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred and the HRA may proceed with its remedies under Section 8.2. 18 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 7 ARTICLE V. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder’s risk insurance, written on the so-called “Builder’s Risk -- Completed Value Basis,” in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called “all risk” form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner’s Contractor’s Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers’ compensation insurance, with statutory coverage. The policies of insurance required pursuant to subparagraphs (a) and (b) above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than 30 days’ advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. ARTICLE VI. FINANCING Section 6.1 Financing. Within 20 days of the date of execution of this Agreement, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1 (b) of this Agreement. If the HRA staff finds that the financing is adequate in amount to provide for the construction of the Improvements, the HRA staff shall notify the Developer of its approval. If the HRA staff rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA’s remedies pursuant to Sections 8.2 and 9.8 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence of financing for construction of the Improvements. 19 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 8 Section 6.2 Limitation Upon Encumbrance of Property. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Representation as to Development. The Developer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Developer further recognizes that, in view of the importance of the Development to the general welfare of the City and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the development of the Property possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this 20 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 9 Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligatio ns of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect t o any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change; and (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The lease of the Improvements to a Qualified Buyer or the sale of the Property to a community land trust shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3 Approvals. Any approval required to be given by the HRA under this Article VIII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; 21 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 10 (b) Subject to Section 9.7, failure by the Developer to complete the Improvements within 365 days of the date of commencement of construction, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation, or agreement on its part to be observed or performed hereunder, including the time for such performance; (d) Failure by the Developer to close with respect to the lease of the Improvements with a Qualified Buyer and the sale of the Property to a community land trust within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (f) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (g) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Holder of the Mortgage. Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Developer as provided in 9.4 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; and (d) take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, th at any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer’s interest in the Property, it shall, notwithstanding 22 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 11 the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.4 No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA official or employee who is authorized to take part in any manner in making this Agreement in their official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than 10 days’ prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: 23 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 12 (a) As to the HRA: Golden Valley HRA Director 7800 Golden Valley Road Golden Valley, MN 55427 (b) As to the Developer: Twin Cities Habitat for Humanity, Inc. ATTN: ______ 1954 University Avenue St. Paul, MN 55104 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.4. Section 9.5 Provisions Not Merged With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion date of the Improvements set forth in Section 4.3 that exceeds six months from the date agreed to in Sections 3.4 and 4.3, respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing Date to a date less than six months from the Closing Date agreed to in Section 3.4 and extend the completion date of the Improvements to a date less than six months from the completion date set forth in Section 4.3. Section 9.8. Revesting Title in the HRA Upon Happening of Event Subsequent to Conveyance by the Developer. In the event that subsequent to conveyance of the Property to the Developer and prior to receipt by the Developer of the Certificate of Completion, the Developer, subject to Unavoidable Delays, fails to carry out its obligations with respect to the construction of the Improvements (including the nature and the date for completion thereof), or abandons or substantially suspends corrective work, and any such failure, abandonment, or suspension is not cured, ended, or remedied within 60 days after written demand from the HRA to the Developer to do so, then the HRA shall have the right to re-enter and take possession of the Property and to terminate (and revest in the HRA) the estate conveyed by deed to the Developer, it being the intent of this provision, together with other provisions of this Agreement, that the conveyance of the Property to the Developer shall be made upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Developer and failure of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivision, the HRA at its option, may declare a termination in favor of the HRA of the title, and of all the rights and interests in and to the Property conveyed to the Developer, and that such title and all rights and interests of the Developer and any assigns or successors in interest to and in the Property, shall revert to the HRA, but only if the events stated in this Section have not been cured within the time periods provided above. 24 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 13 Notwithstanding anything to the contrary contained in this Section, the HRA shall have no right to reenter or retake title to or possession of the Property in the event that a Certificate of Completion has been issued. Section 9.9. Resale of Reaquired Property; Disposition of Proceeds. Upon the revesting in the HRA of title to or possession of the Property as provided in Section 9.8 of this Agreement, the HRA shall apply the purchase price received by the HRA for the sale of the Property as follows: (a) First, to reimburse the HRA for all costs and expenses incurred by the HRA, including but not limited to, proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property (but less any income derived by the HRA from the Property in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property (or, in the event that the Property is exempt from taxation or assessment, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the City’s assessing official) as would have been payable if the Property were not exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property at the time of revesting of title thereto to the HRA or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Improvements on the Property; and any amounts otherwise owing the HRA by the Developer and its successors or transferee; and (b) Second, to reimburse the Developer for the balance of the purchase price received by the HRA for the sale of the Property remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Developer by the HRA upon delivery of an executed, recordable warranty deed to the Property by the Developer to the HRA. 25 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________________ Its: Maurice Harris, Chairperson By: _______________________________________ Its: Timothy J. Cruikshank, Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. ________________________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Timothy J. Cruikshank, the Executive Director of the Housing and Redevelopment Authority in and for the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. ________________________________________________ Notary Public 26 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 TWIN CITIES HABITAT FOR HUMANITY, INC. By: ________________________________ Name:_______________________________ Its: ___________________________________ STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this _____day of _______________, 2023, by __________________________________________, the _______________________ of Twin Cities Habitat for Humanity, Inc., a non-profit corporation under the laws of Minnesota, on behalf of the corporation. ________________________________________________ Notary Public 27 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Lots 1 and 2, Belmont, according to the recorded plat thereof, Hennepin County, Minnesota. (Abstract Property) 28 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 2 EXHIBIT B LIST OF CONSTRUCTION PLAN DOCUMENTS  Contract for Development  Concept Plans  Site Plan 29 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 3 EXHIBIT C FORM OF QUIT CLAIM DEED Quit Claim Deed DEED TAX DUE: $_______ ECRV: __________________ Date: ____________________ FOR VALUABLE CONSIDERATION, the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Twin Cities Habitat for Humanity, Inc., a non-profit corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, legally described as follows: Lots 1 and 2, Belmont, according to the recorded plat thereof. Together with all hereditaments and appurtenances, and subject to easements of record. Check here if part or all of the land is Registered (Torrens)  This deed is subject to the terms and provisions of that certain Contract for Development between Grantor and Grantee (the “Contract”), dated ______________, 20____, recorded _______________, 20_____, in the office of the Hennepin County Registrar of Titles as Document No. ______________, including, without limitation, the Grantor’s right of reverter in the event of certain defaults by Grantee under the Contract as more fully described in Section 9.8 thereof. Additionally, pursuant to Section 3.11 of the Contract, the Grantee agrees to lease the Improvements to a Qualified Buyer (as that term is defined in the Contract) and convey the Property to a community land trust. The Grantee must obtain the Grantor’s prior approval of the terms and conditions of the lease with the Qualified Buyer for the Improvements and the sale of the Property to the community land trust, and the agreement terms and conditions must be consistent with the terms of the Contract. 30 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 4  The Seller certifies that the Seller does not know of any wells on the described real property.  A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: __________________).  I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 31 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v15 NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK) NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: Its: Maurice Harris, Chairperson By: Its: Timothy J. Cruikshank, ExecutiveDirector STATE OF MINNESOTA MINNESOTA )} ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____ day of _______, 2023, by Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority, Grantor. _______________________________________ SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) } ss. The foregoing was acknowledged before me this ____________ day of _______, 2023, by Timothy J. Cruikshank, the Executive Director, of Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the Authority, Grantor. _______________________________________ SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT 32 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v16 Tax Statements should be sent to: Twin Cities Habitat for Humanity, Inc. 1954 University Avenue St. Paul, MN 55104 This instrument was drafted by: Kennedy & Graven, Chartered (SJS) Fifth Street Towers, Suite 700 150 South Fifth Street Minneapolis, MN 55402 (612)337-9300 33 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v17 EXHIBIT D FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that ____________________________, has fully and completely complied with its obligations under Article IV of that document entitled “Contract for Development”, between the Housing and Redevelopment Authority in and for the City of Golden Valley and Twin Cities Habitat for Humanity, Inc. dated ___________________________, filed ___________________________ as Document No. ____________________ with respect to the construction of the approved construction plans and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: ___________________ HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: __________________________________ Its: Maurice Harris, Chairperson By: __________________________________ Its: Timothy J. Cruikshank, Exectuive Director 34 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v18 STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2023, by Maurice Harris the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota on behalf of the Authority. ________________________________ Notary Public STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Timothy J. Cruikshank, the Executive Director of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority. ________________________________________________ Notary Public This instrument was drafted by: Housing and Redevelopment Authority in and for the City of Golden Valley 7800 Golden Valley Road Golden Valley, MN 55427 35 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 9 EXHIBIT E FORM OF DECLARATION OF EASEMENTS DECLARATION OF EASEMENTS THIS DECLARATION OF EASEMENTS (this “Declaration”) is made this _____ day of _________________, 2023, by the City of Golden Valley, a municipal corporation under the laws of the State of Minnesota (the “Declarant”). Recitals A. Declarant is the fee owner of the property located in Hennepin County, Minnesota (the “Property”) and legally described on Exhibit A attached hereto. B. Declarant wishes to establish perpetual, non-exclusive easements for drainage, utility, walkway, and roadway purposes over, under, across, and through the portions of the Property legally described on the attached Exhibit B and depicted on the attached Exhibit C (the “Easement Areas”). Declaration Now, therefore, the Declarant hereby declares that the Property shall be held, sold, and conveyed subject to the following easements, which shall inure to the benefit of the City of Golden Valley (the “City”): 1. Public Easement. The Property shall be subject to perpetual, non -exclusive easements for drainage, utility, walkway, and roadway purposes, including, but not limited to, the construction, installation, operation, inspection, repair, replacement, removal, and maintenance of drainage, utility, walkway, and roadway improvements and related facilities. The easement granted herein also includes the right to cut, trim, or remove from the Easement Areas such improvements, trees, shrubs, or other vegetation, and to prohibit obstructions and grading alterations as in the City’s judgment unreasonably interfere with the easements or the function of the improvements and facilities located therein. 2. Easements to Run with Land; No Merger. The easements created herein shall run with the land and be binding on all parties having any right, title, or interest in the Property, their successors and assigns. The Declarant intends that the easements created herein shall not merge into Declarant’s 36 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 10 title to the Property and that any future conveyance of the Property by the Declarant shall be subject to this Declaration unless the instrument of conveyance expressly states an intention to terminate this Declaration. 3. Amendment; Modification; Termination. This Declaration may not be amended, modified, or terminated without the consent of the City of Golden Valley. [Signature page to follow] 37 CITY OF GOLDEN VALLEY By:______________________________ Shepard M. Harris Its: Mayor By: __________________________________ Timothy J. Cruikshank Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _________, 2023, by Shepard M. Harris and Timothy J. Cruikshank, the Mayor and the City Manager of the City of Golden Valley, a municipal corporation under the laws of Minnesota, on behalf of the municipal corporation, Declarant. ______________________________ Notary Public NOTARY STAMP OR SEAL THIS INSTRUMENT DRAFTED BY: Kennedy & Graven, Chartered (SJS) Fifth Street Towers 150 South 5th Street, Suite 150 Minneapolis, MN 55402 (612) 337-9300 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135- 11 50-875898.v1 38 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v112 EXHIBIT A TO DECLARATION OF EASEMENTS Legal Description of the Property Lots 1 and 2, Belmont, according to the recorded plat thereof, Hennepin County, Minnesota. 39 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 13 EXHIBIT B TO DECLARATION OF EASEMENTS Legal Descriptions of the Easement Areas A perpetual easement for drainage, utility, walkway and roadway purposes over, under, across, and through the east 35.00 feet, as measured at a right angle, of a parcel of land described as follows: Lots 1 and 2, "BELMONT", according to the recorded plat thereof, Hennepin County, Minnesota. AND A perpetual easement for drainage and utility purposes over, under, across, and through the south 10.00 feet, the north 6.00 feet, and the west 6.00 feet, all measured at right angles, of a parcel of land described as follows: Lots 1 and 2, "BELMONT", according to the recorded plat thereof, Hennepin County, Minnesota. 40 0 = 1 " " GL135-50-875898.v1 GL135-50-875898.v1 GL135-50-875898.v1 14 EXHIBIT C TO DECLARATION OF EASEMENTS Depiction of the Easement Areas 41 1 GL135-50-885516.v1 DECLARATION OF EASEMENTS THIS DECLARATION OF EASEMENTS (this “Declaration”) is made this _____ day of _________________, 2023, by the City of Golden Valley, a municipal corporation under the laws of the State of Minnesota (the “Declarant”). Recitals A. Declarant is the fee owner of the property located in Hennepin County, Minnesota (the “Property”) and legally described on Exhibit A attached hereto. B. Declarant wishes to establish perpetual, non-exclusive easements for drainage, utility, walkway, and roadway purposes over, under, across, and through the portions of the Property legally described on the attached Exhibit B and depicted on the attached Exhibit C (the “Easement Areas”). Declaration Now, therefore, the Declarant hereby declares that the Property shall be held, sold, and conveyed subject to the following easements, which shall inure to the benefit of the City of Golden Valley (the “City”): 1. Public Easement. The Property shall be subject to perpetual, non-exclusive easements for drainage, utility, walkway, and roadway purposes, including, but not limited to, the construction, installation, operation, inspection, repair, replacement, removal, and maintenance of drainage, utility, walkway, and roadway improvements and related facilities. The easement granted herein also includes the right to cut, trim, or remove from the Easement Areas such improvements, trees, shrubs, or other vegetation, and to prohibit obstructions and grading alterations as in the City’s judgment unreasonably interfere with the easements or the function of the improvements and facilities located therein. 42 GL135-50-885516.v1 2 2. Easements to Run with Land; No Merger. The easements created herein shall run with the land and be binding on all parties having an y right, title, or interest in the Property, their successors and assigns. The Declarant intends that the easements created herein shall not merge into Declarant’s title to the Property and that any future conveyance of the Property by the Declarant shall be subject to this Declaration unless the instrument of conveyance expressly states an intention to terminate this Declaration. 3. Amendment; Modification; Termination. This Declaration may not be amended, modified, or terminated without the consent of the City of Golden Valley. [Signature page to follow] 43 GL135-50-885516.v1 3 CITY OF GOLDEN VALLEY By: Shep Harris Its: Mayor By: __________________________________ Tim Cruikshank Its: City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _________, 2023, by Shep Harris and Tim Cruikshank, the Mayor and the City Manager of the City of Golden Valley, a municipal corporation under the laws of Minnesota, on behalf of the municipal corporation, Declarant. ______________________________ Notary Public NOTARY STAMP OR SEAL THIS INSTRUMENT DRAFTED BY: Kennedy & Graven, Chartered (SJS) Fifth Street Towers 150 South 5th Street, Suite 150 Minneapolis, MN 55402 (612) 337-9300 44 A-1 GL135-50-885516.v1 EXHIBIT A TO DECLARATION OF EASEMENTS Legal Description of the Property Lots 1 and 2, Belmont, according to the recorded plat thereof, Hennepin County, Minnesota. 45 B-1 GL135-50-885516.v1 EXHIBIT B TO DECLARATION OF EASEMENTS Legal Descriptions of the Easement Areas A perpetual easement for drainage, utility, walkway and roadway purposes over, under , across, and through the east 35.00 feet, as measured at a right angle, of a parcel of land described as follows: Lots 1 and 2, "BELMONT", according to the recorded plat thereof, Hennepin County, Minnesota. AND A perpetual easement for drainage and utility purposes over, under, across, and through the south 10.00 feet, the north 6.00 feet, and the west 6.00 feet, all me asured at right angles, of a parcel of land described as follows: Lots 1 and 2, "BELMONT", according to the recorded plat thereof, Hennepin County, Minnesota. 46 C-1 GL135-50-885516.v1 EXHIBIT C TO DECLARATION OF EASEMENTS Depiction of the Easement Areas 47 RESOLUTION NO. 23-28 A RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 47XX/4707 CIRCLE DOWN TO GREATER METROPOLITAN HOUSING CORPORATION IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT WHEREAS, The Housing and Redevelopment Authority in and for the City of Golden Valley (the “HRA”) has been established by the city of Golden Valley (the “City”) to promote development and redevelopment within the community; and WHEREAS,the HRA desires to develop certain real property pursuant to and in furtherance of the Home Ownership Program for Equity adopted by the HRA, said real property being described as follows: Address: 47XX/4707 Circle Down, Legal: as described in Exhibit A, attached hereto; and WHEREAS,the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS,a developer, Greater Metropolitan Housing Corporation, has been identified as the purchaser of the described property and in accordance with a Contract for Development; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Golden Valley: 1. A public hearing has been held for 47XX/4707 Circle Down and it is authorized to be sold for $1 to Greater Metropolitan Housing Corporation in accordance with a Contract for Development with the HRA. 2. The Chairperson and Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Greater Metropolitan Housing Corporation. Adopted by the Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota this 5th day of July 2023. ____________________________ Maurice Harris, HRA Chair ATTEST: ______________________________ Timothy J. Cruikshank, Executive Director 48 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Lot 2, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota. (Abstract Property) AND That part of Tract A described below: Tract A. Lots 1, 3, and 4, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota; which lies northerly of Line 1 described below: Line 1. Commencing at the east quarter corner of Section 30, Township 29 North, Range 24 West; thence westerly on an azimuth of 271 degrees 21 minutes 02 seconds along the east and west quarter line thereof for 2652.57 feet to the center of said Section 30; thence on an azimuth of 00 degrees 21 minutes 23 seconds for 701.35 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 284 degrees 30 minutes 39 seconds for 34.03 feet; thence on an azimuth of 230 degrees 05 minutes 25 seconds for 2.96 feet; thence on an azimuth of 230 degrees 01 minute 59 seconds for 14.00 feet; thence on an azimuth of 320 degrees 01 minute 50 seconds for 130.14 feet; thence on an azimuth of 319 degrees 50 minutes 03 seconds for 144.27 feet; thence on an azimuth of 320 degrees 28 minutes 03 seconds for 168.10 feet and there terminating. (Abstract Property) 49 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 CONTRACT FOR DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY and GREATER METROPOLITAN HOUSING CORPORATION at 47XX CIRCLE DOWN, GOLDEN VALLEY, MN This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Golden Valley 7800 Golden Valley Road Golden Valley, Minnesota 55427 Telephone: (763) 593-3968 50 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 1 CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (this “Agreement”) is made and entered into as of this ___ of ____________, 2023, by and between the Housing and Redevelopment Authority in and for the City of Golden Valley, a body corporate and politic under the laws of the State of Minnesota, having its principal office at: 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the “HRA”), and Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of Minnesota, having its principal office at: 970 Raymond Avenue, Unit 201, St. Paul, Minnesota 55114 (the “Developer”). WITNESSETH: WHEREAS, the HRA has acquired the property located at: 47XX Circle Down, Golden Valley, legally described on the attached Exhibit A (the “Property”) from the City of Golden Valley (the “City”). WHEREAS, the City of Golden Valley (the “City”) and the HRA have previously created and established the Home Ownership Program for Equity (the “HOPE Program”) pursuant to the authority granted in Minnesota Statutes Sections 469.001 through 469.047; and WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in carrying out the objectives of the HOPE Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA and the Developer, each party does hereby represent, covenant, and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) City. The City of Golden Valley, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit B. (c) Developer. Greater Metropolitan Housing Corporation. (d) Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. (e) Event of Default. Event of Default has the meaning given such term in Section 8.1. 51 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 2 (f) Holder. The term “holder” in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) HOPE Program. The Home Ownership Program for Equity which makes public land available for the development of homes for affordable and equitable homeownership opportunity in the City. (h) Housing and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (i) HRA. The Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota. (j) Improvements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Construction Plans approved by the HRA. (k) Mortgage. The term “mortgage” shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (l) Property. The real property legally described on the attached Exhibit A, having a street address of: 47XX Circle Down, Golden Valley. (m) Qualified Buyer. A purchaser whose income does not exceed 60-80 percent of the Area Median Income as defined by Minnesota Housing Finance Agency’s Community Homeownership Impact Fund income limits for the 11 county Twin Cities Metro Area. (n) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, natural disasters, litigation commenced by third parties which results in delays or acts of any federal, state, or local government, except those contemplated by this Agreement, which are beyond the control of the Developer. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Legal Description of the Property B. List of Construction Plan Documents C. Form of Quit Claim Deed D. Form of Certificate of Completion Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. 52 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 3 (b) The words “herein” and “hereof” and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1 By the Developer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the execution, delivery, and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, the Construction Plans, and all local, state, and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state, and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. Section 2.2 By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 53 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 4 2.2 (b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA ’s discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1 Sale of Property to Developer. The HRA is the fee owner of the Property. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an “as is” condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit C. The purchase price for the Property will be $1.00. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, (a) The HRA shall surrender a copy of an owner’s title insurance policy for the Property, and the abstract of the Property, if in HRA’s possession or control, to Developer or to Developer’s designated title service provider; and (b) The Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer’s lender, including but not limited to title searches, abstracting, title examinations, a title insurance commitment or an attorney’s title opinion, at Developer’s selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the HRA shall have no obligation to cure any objections and may inform the Developer of such. The Developer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. There is a mortgage recorded against the Property for which the HRA has not been able to obtain a satisfaction or release (mortgage dated December 20, 1983, filed January 9, 1984 as Document No. 4857625, to secure indebtedness in the amount of $104,000 and any other sums which may become due and payable under the terms thereof, executed by Wayne R. Willette and Donna Kay Voogd Willette, husband and wife, as mortgagor to TCF Mortgage Corporation, as mortgagee (the “Mortgage”)). The Developer agrees that it will not object to the Mortgage and will be taking the Property subject to the Mortgage. If the Developer desires to remove the Mortgage from the Property, the Developer shall be responsible for those costs. Section 3.3 Well Disclosure. The HRA does not know of any wells on the Property. Section 3.4 Closing. Closing on the Property will take place on or before May 31, 2024, or such other date as may be agreed to by the parties in writing. At closing, the Developer will provide the HRA with the purchase price of the Property. If closing has not occurred by ________, 2023, either party may terminate this Agreement. 54 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 5 Section 3.5. Closing Costs. The Developer will pay: (a) the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Developer; and (b) the recording fees to record this Agreement and the deed transferring title to the Developer. The HRA will pay any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.6. Sewer and Water. City sanitary sewer service is available but pipe and service stub will need to be replaced or rehabilitated. City water service is not available at the lot line. Section 3.7. ISTS Disclosure and Removal. The HRA is not aware of any individual sewage treatment system on the Property. The Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and the Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The HRA is conducting a Phase I environmental assessment of the Property. The HRA will provide the Developer with a copy of the Phase I environmental assessment no later than 10 business days after execution of this Agreement by both parties. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes, pollution, or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such inspections and tests regarding soil conditions and hazardous wastes as the Developer may desire. Said inspections and tests shall be performed at the Developer’s expense. The Developer shall provide the HRA with copies of any reports received. Permission to enter the Property to conduct such inspections and tests must be given in writing under the terms and conditions established by the HRA. Section 3.10 Survey. The HRA will allow reasonable access to the Property for the Developer to conduct a survey, if desired by the Developer. Said survey shall be performed at the Developer’s expense. The Developer shall provide the HRA with a copy of any survey performed. Permission to enter the Property to conduct the survey must be given in writing under the terms and conditions established by the HRA. Section 3.11 Lease to Qualified Buyer; Sale to Community Land Trust; Covenant on Use. The Developer agrees to lease the Improvements via a ground lease to a Qualified Buyer within 180 days of issuance of a Certificate of Occupancy or after that time as a greed upon by the parties. The Developer agrees to convey the Property to a community land trust that secures the long-term affordability of the Property for 99 years. Prior to agreeing to a ground lease of the Improvements to a Qualified Buyer or conveyance of the Property to a community land trust, the Developer shall provide the HRA with sufficient evidence that the potential lessee is a Qualified Buyer and the community land trust is a land trust that secures the long-term affordability of the Property for 99 years. In addition, the Developer must obtain the HRA’s prior approval of the terms and conditions of its purchase agreement with the community land trust, and the purchase agreement terms and conditions must be consistent with this Agreement. This Agreement constitutes a covenant on the part of the Developer, its successors and assigns, to develop the Property and Improvements for affordable owner-occupied, single-family residential purposes as permitted by the HRA. 55 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 6 ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Developer shall construct the Improvements on the Property at the Developer’s cost in accordance with the Construction Plans, and shall maintain, preserve, and keep the Improvements in good repair and condition until sale of the Property to a community land trust. Section 4.2. Building Plans. The Developer agrees that the City of Golden Valley Building Official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state, and federal regulations. The HRA staff shall, within 25 days of receipt of Construction Plans and application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA staff determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA staff shall be a conclusive determination that the Construction Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall begin with 14 days of Closing. Construction of the foundation of the Improvements shall be completed within 12 months of the date of commencement of construction. All of the Improvements shall be completed within 18 months of the date of commencement of construction. All construction shall be in conformity with the approved Construction Plans. Periodically during construction, the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer’s construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the form attached hereto as Exhibit D. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Developer to construct the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, indicating 56 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 7 in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer to take or perform in order to obtain such certification. Section 4.5 Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred and the HRA may proceed with its remedies under Section 8.2. ARTICLE V. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder’s risk insurance, written on the so-called “Builder’s Risk -- Completed Value Basis,” in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called “all risk” form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner’s Contractor’s Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers’ compensation insurance, with statutory coverage. The policies of insurance required pursuant to subparagraphs (a) and (b) above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than 30 days’ advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. ARTICLE VI. FINANCING Section 6.1 Financing. Within 20 days of the date of execution of this Agreement, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1 (b) of this Agreement. If the HRA staff finds that the financing is adequate in amount to provide for the construction of the Improvements, the HRA staff shall notify the Developer of its approval. If the HRA staff rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such 57 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 8 notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA’s remedies pursuant to Sections 8.2 and 9.8 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2 Limitation Upon Encumbrance of Property. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operat ion of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Representation as to Development. The Developer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Developer further recognizes that, in view of the importance of the Development to the general welfare of the City and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the development of the Property possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest 58 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 9 therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change; and (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The lease of the Improvements to a Qualified Buyer or the sale of the Property to a community land trust shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3 Approvals. Any approval required to be given by the HRA under this Article VIII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. 59 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 10 EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Subject to Section 9.7, failure by the Developer to complete the Improvements within 365 days of the date of commencement of construction, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation, or agreement on its part to be observed or performed hereunder, including the time for such performance; (d) Failure by the Developer to close with respect to the lease of the Improvements with a Qualified Buyer and the sale of the Property to a community land trust within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (f) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (g) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Holder of the Mortgage. Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Developer as provided in 9.4 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; and 60 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 11 (d) take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agre ement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer’s interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.4 No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA official or employee who is authorized to take part in any manner in making this Agreement in their official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than 10 days’ prior written notice by the Developer, agrees to execute, acknowledge and deliver, without ch arge to the 61 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 12 Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Golden Valley HRA Director 7800 Golden Valley Road Golden Valley, MN 55427 (b) As to the Developer: Greater Metropolitan Housing Corporation ATTN: ______ 970 Raymond Avenue, Unit 201 St. Paul, MN 55114 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.4. Section 9.5 Provisions Not Merged With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion date of the Improvements set forth in Section 4.3 that exceeds six months from the date agreed to in Sections 3.4 and 4.3, respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing Date to a date less than six months from the Closing Date agreed to in Section 3.4 and extend the completion date of the Improvements to a date less than six months from the completion date set forth in Section 4.3. Section 9.8. Revesting Title in the HRA Upon Happening of Event Subsequent to Conveyance by the Developer. In the event that subsequent to conveyance of the Property to the Developer and prior to receipt by the Developer of the Certificate of Completion, the Developer, subject to Unavoidable Delays, fails to carry out its obligations with respect to the construction of the Improvements (including the nature and the date for completion thereof), or abandons or substantially suspends corrective work, and any such failure, abandonment, or suspension is not cured, ended, or remedied within 60 days after written demand from the HRA to the Developer to do so, then the HRA shall have the right to re-enter and take possession of the Property and to terminate (and revest in the HRA) the estate conveyed by deed to the Developer, it being the intent of this provision, together with 62 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 13 other provisions of this Agreement, that the conveyance of the Property to the Developer shall be made upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Developer and failure of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivision, the HRA at its option, may declare a termination in favor of the HRA of the title, and of all the rights and interests in and to the Property conveyed to the Developer, and that such title and all rights and interests of the Developer and any assigns or successors in interest to and in the Property, shall revert to the HRA, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the HRA shall have no right to reenter or retake title to or possession of the Property in the event that a Certificate of Completion has been issued. Section 9.9. Resale of Reaquired Property; Disposition of Proceeds. Upon the revesting in the HRA of title to or possession of the Property as provided in Section 9.8 of this Agreement, the HRA shall apply the purchase price received by the HRA for the sale of the Property as follows: (a) First, to reimburse the HRA for all costs and expenses incurred by the HRA, including but not limited to, proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property (but less any income derived by the HRA from the Property in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property (or, in the event that the Property is exempt from taxation or assessment, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the City’s assessing official) as would have been payable if the Property were not exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property at the time of revesting of title thereto to the HRA or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Improvements on the Property; and any amounts otherwise owing the HRA by the Developer and its successors or transferee; and (b) Second, to reimburse the Developer for the balance of the purchase price received by the HRA for the sale of the Property remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Developer by the HRA upon delivery of an executed, recordable warranty deed to the Property by the Developer to the HRA. 63 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________________ Its: Maurice Harris, Chairperson By: _______________________________________ Its: Timothy J. Cruikshank, Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Maurice Harris, the Chairperson in and for the Housing and Redevelopment Authority in and for the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. ________________________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Timothy J. Cruikshank, the Executive Director in and for the Housing and Redevelopment Authority in and for the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. ________________________________________________ Notary Public 64 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 GREATER METROPOLITAN HOUSING CORPORATION By: ________________________________ Print Name:__________________________ Its: ___________________________________ STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this _____day of _______________, 2023, by __________________________________________, the _______________________ of the Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of Minnesota, on behalf of the corporation. ________________________________________________ Notary Public 65 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Lot 2, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota. (Abstract Property) AND That part of Tract A described below: Tract A. Lots 1, 3, and 4, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota; which lies northerly of Line 1 described below: Line 1. Commencing at the east quarter corner of Section 30, Township 29 North, Range 24 West; thence westerly on an azimuth of 271 degrees 21 minutes 02 seconds along the east and west quarter line thereof for 2652.57 feet to the center of said Section 30; thence on an azimuth of 00 degrees 21 minutes 23 seconds for 701.35 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 284 degrees 30 minutes 39 seconds for 34.03 feet; thence on an azimuth of 230 degrees 05 minutes 25 seconds for 2.96 feet; thence on an azimuth of 230 degrees 01 minute 59 seconds for 14.00 feet; thence on an azimuth of 320 degrees 01 minute 50 seconds for 130.14 feet; thence on an azimuth of 319 degrees 50 minutes 03 seconds for 144.27 feet; thence on an azimuth of 320 degrees 28 minutes 03 seconds for 168.10 feet and there terminating. (Abstract Property) 66 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 2 EXHIBIT B LIST OF CONSTRUCTION PLAN DOCUMENTS  Contract for Development  Concept Plans  Site Plan 67 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 3 EXHIBIT C FORM OF QUIT CLAIM DEED Quit Claim Deed DEED TAX DUE: $_______ ECRV: __________________ Date: ____________________ FOR VALUABLE CONSIDERATION, the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of the State of Minnesota, Grantee, real property i n Hennepin County, Minnesota, legally described as follows: Lot 2, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota. AND That part of Tract A described below: Tract A. Lots 1, 3, and 4, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota; which lies northerly of Line 1 described below: Line 1. Commencing at the east quarter corner of Section 30, Township 29 North, Range 24 West; thence westerly on an azimuth of 271 degrees 21 minutes 02 seconds along the east and west quarter line thereof for 2652.57 feet to the center of said Section 30; thence on an azimuth of 00 degrees 21 minutes 23 seconds for 701.35 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 284 degrees 30 minutes 39 seconds for 34.03 feet; thence on an azimuth of 230 degrees 05 minutes 25 seconds for 2.96 feet; thence on an azimuth of 230 degrees 01 minute 59 seconds for 14.00 feet; thence on an azimuth of 320 degrees 01 minute 50 seconds for 130.14 feet; thence on an azimuth of 319 degrees 50 minutes 03 seconds for 144.27 feet; thence on an azimuth of 320 degrees 28 minutes 03 seconds for 168.10 feet and there terminating. 68 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 4 Together with all hereditaments and appurtenances, and subject to easements of record. Check here if part or all of the land is Registered (Torrens)  This deed is subject to the terms and provisions of that certain Contract for Development between Grantor and Grantee (the “Contract”), dated ______________, 20____, recorded _______________, 20_____, in the office of the Hennepin County Registrar of Titles as Document No. ______________, including, without limitation, the Grantor’s right of reverter in the event of certain defaults by Grantee under the Contract as more fully described in Section 9.8 thereof. Additionally, pursuant to Section 3.11 of the Contract, the Grantee agrees to lease the Improvements to a Qualified Buyer (as that term is defined in the Contract) and convey the Property to a community land trust. The Grantee must obtain the Grantor’s prior approval of the terms and conditions of the lease with the Qualified Buyer for the Improvements and the sale of the Property to the community land trust, and the agreement terms and conditions must be consistent with the terms of the Contract. 69 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 5  The Seller certifies that the Seller does not know of any wells on the described real property.  A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: __________________).  I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 70 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v16 NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK) NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: Its: Maurice Harris, Chairperson By: Its: Timohty J. Cruikshank, Executive Director STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____ day of _______, 2023, by Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority, Grantor. _______________________________________ SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____________ day of _______, 2023, by Timothy J. Cruikshank, the Executive Director, of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the Authority, Grantor. _______________________________________ SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT 71 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v1 7 Tax Statements should be sent to: Greater Metropolitan Housing Corporation 970 Raymond Avenue, Unit 201 St. Paul, MN 55114 This instrument was drafted by: Kennedy & Graven, Chartered (SJS) Fifth Street Towers, Suite 700 150 South Fifth Street Minneapolis, MN 55402 (612) 337-9300 72 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v18 EXHIBIT D FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that ____________________________, has fully and completely complied with its obligations under Article IV of that document entitled “Contract for Development”, between the Housing and Redevelopment Authority in and for the City of Golden Valley and Greater Metropolitan Housing Corporation dated ___________________________, filed ___________________________ as Document No. ____________________ with respect to the construction of the approved construction plans and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: ___________________ HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: __________________________________ Its: Maurice Harris, Chairperson By: __________________________________ Its: Timothy J. Cruikshank, Executive Director 73 0 = 1 " " GL135-50-875905.v1 GL135-50-875905.v1 GL135-50-875905.v19 STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2023, by Maurice Harris the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota on behalf of the Authority. ________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ______________ ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, byTimothy J. Cruikshank, the Executive Director of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority. ________________________________________________ Notary Public This instrument was drafted by: Housing and Redevelopment Authority in and for the City of Golden Valley 7800 Golden Valley Road Golden Valley, MN 55427 74 RESOLUTION NO. 23-09 A RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 208 MEANDER ROAD TO GREATER METROPOLITAN HOUSING CORPORATION IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT WHEREAS,The Housing and Redevelopment Authority in and for the City of Golden Valley (the “HRA”) has been established by the city of Golden Valley (the “City”) to promote development and redevelopment within the community; and WHEREAS, the HRA desires to develop certain real property pursuant to and in furtherance of the Home Ownership Program for Equity adopted by the HRA, said real property being described as follows: Address: 208 Meander Road, Legal: as described in Exhibit A, attached hereto; and WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS,a developer, Greater Metropolitan Housing Corporation, has been identified as the purchaser of the described property and in accordance with a Contract for Development; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED,by the Housing and Redevelopment Authority in and for the City of Golden Valley: 1. A public hearing has been held for 208 Meander Road and it is authorized to be sold for $1 to Greater Metropolitan Housing Corporation in accordance with a Contract for Development with the HRA. 2. The Chairperson and Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Greater Metropolitan Housing Corporation. Adopted by the Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota this 5th day of July 2023. ____________________________ Maurice Harris, HRA Chair ATTEST: ______________________________ Timothy J. Cruikshank, Executive Director 75 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY The North 158.8 feet of Lot 4, Block 3, Tralee, according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 434516 and 434517. 76 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 CONTRACT FOR DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY and GREATER METROPOLITAN HOUSING CORPORATION at 208 MEANDER ROAD, GOLDEN VALLEY, MN This Instrument Drafted by: The Housing and Redevelopment Authority in and for City of Golden Valley 7800 Golden Valley Road Golden Valley, Minnesota 55427 Telephone: (763) 593-3968 77 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 1 CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (this “Agreement”) is made and entered into as of this ___ of ____________, 2023, by and between the Housing and Redevelopment Authority in and for the City of Golden Valley, a body corporate and politic under the laws of the State of Minnesota, having its principal office at: 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the “HRA”), and Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of Minnesota, having its principal office at: 970 Raymond Avenue, Unit 201, St. Paul, Minnesota 55114 (the “Developer”). WITNESSETH: WHEREAS, the HRA has acquired the property located at: 208 Meander Road, Golden Valley, legally described on the attached Exhibit A (the “Property”) from the City of Golden Valley (the “City”). WHEREAS, the City of Golden Valley (the “City”) and the HRA have previously created and established the Home Ownership Program for Equity (the “HOPE Program”) pursuant to the authority granted in Minnesota Statutes Sections 469.001 through 469.047; and WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in carrying out the objectives of the HOPE Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA and the Developer, each party does hereby represent, covenant, and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) City. The City of Golden Valley, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit B. (c) Developer. Greater Metropolitan Housing Corporation. (d) Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. (e) Event of Default. Event of Default has the meaning given such term in Section 8.1. 78 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 2 (f) Holder. The term “holder” in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) HOPE Program. The Home Ownership Program for Equity which makes public land available for the development of homes for affordable and equitable homeownership opportunity in the City. (h) Housing and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (i) HRA. The Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota. (j) Improvements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Constructio n Plans approved by the HRA. (k) Mortgage. The term “mortgage” shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (l) Property. The real property legally described on the attached Exhibit A, having a street address of: 208 Meander Road, Golden Valley. (m) Qualified Buyer. A purchaser whose income does not exceed 60-80 percent of the Area Median Income as defined by Minnesota Housing Finance Agency’s Community Homeownership Impact Fund income limits for the 11 county Twin Cities Metro Area. (n) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, natural disasters, litigation commenced by third parties which results in delays or acts of any federal, state, or local government, except those contemplated by this Agreement, which are beyond the control of the Developer. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Legal Description of the Property B. List of Construction Plan Documents C. Form of Quit Claim Deed D. Form of Certificate of Completion Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. 79 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 3 (b) The words “herein” and “hereof” and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1 By the Developer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the execution, delivery, and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, the Construction Plans, and all local, state, and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state, and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and (e) The plans for the Improvements have been or will be prepared by a qualified draftsperson or architect. Section 2.2 By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 80 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 4 2.2 (b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA’s discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1 Sale of Property to Developer. The HRA is the fee owner of the Property. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an “as is” condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit C. The purchase price for the Property will be $1.00. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, (a) The HRA shall surrender copies of the certificates of title and any owner’s title insurance policy for the Property, if in HRA’s possession or control, to Developer or to Developer’s designated title service provider; and (b) The Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer’s lender, including but not limited to title searches, title examinations, a title insurance commitment or an attorney’s title opinion, at Developer’s selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the HRA shall have no obligation to cure any objections and may inform the Developer of such. The Developer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. Section 3.3 Well Disclosure. The HRA does not know of any wells on the Property. Section 3.4 Closing. Closing on the Property will take place on or before October 2, 2023, or such other date as may be agreed to by the parties in writing. At closing, the Developer will provide the HRA with the purchase price of the Property. If closing has not occurred by October 2, 2023, either party may terminate this Agreement. Section 3.5. Closing Costs. The Developer will pay: (a) the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Developer; and (b) the recording fees to record this Agreement and the deed transferring title to the Developer. The HRA will pay any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.6. Sewer and Water. The HRA warrants that City water is available at the lot line. City sewer service is available but the pipe and service stub will need to be replaced or rehabilitated. 81 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 5 Section 3.7. ISTS Disclosure and Removal. The HRA is not aware of any individual sewage treatment system on the Property. The Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and the Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The HRA is conducting a Phase I environmental assessment of the Property. The HRA will provide the Developer with a copy of the Phase I environmental assessment no later than 10 business days after execution of this Agreement by both parties. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes, pollution, or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such inspections and tests regarding soil conditions and hazardous wastes as the Developer may desire. Said inspections and tests shall be performed at the Developer’s expense. The Developer shall provide the HRA with copies of any reports received. Permission to enter the Property to conduct such inspections and tests must be given in writing under the terms and conditions established by the HRA. Section 3.10 Survey. The HRA will allow reasonable access to the Property for the Developer to conduct a survey, if desired by the Developer. Said survey shall be performed at the Developer’s expense. The Developer shall provide the HRA with a copy of any survey performed. Permission to enter the Property to conduct the survey must be given in writing under the terms and conditions established by the HRA. Section 3.11 Lease to Qualified Buyer; Sale to Community Land Trust; Covenant on Use. The Developer agrees to lease the Improvements via a ground lease to a Qualified Buyer within 180 days of issuance of a Certificate of Occupancy or after that time as a greed upon by the parties. The Developer agrees to convey the Property to a community land trust that secures the long-term affordability of the Property for 99 years. Prior to agreeing to a ground lease of the Improvements to a Qualified Buyer or conveyance of the Property to a community land trust, the Developer shall provide the HRA with sufficient evidence that the potential lessee is a Qualified Buyer and the community land trust is a land trust that secures the long-term affordability of the Property for 99 years. In addition, the Developer must obtain the HRA’s prior approval of the terms and conditions of its purchase agreement with the community land trust, and the purchase agreement terms and conditions must be consistent with this Agreement. This Agreement constitutes a covenant on the part of the Developer, its successors and assigns, to develop the Property and Improvements for affordable owner-occupied, single-family residential purposes as permitted by the HRA. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Developer shall construct the Improvements on the Property at the Developer’s cost in accordance with the Construction Plans, and 82 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 6 shall maintain, preserve, and keep the Improvements in good repair and condition until sale of the Property to a community land trust. Section 4.2. Building Plans. The Developer agrees that the City of Golden Valley Building Official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state, and federal regulations. The HRA staff shall, within 25 days of receipt of Construction Plans and an application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA staff determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA staff shall be a conclusive determination that the Construction Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall begin within 14 days of Closing. Construction of the foundation of the Improvements shall be completed within 12 months of the date of commencement of construction. All of the Improvements shall be completed within 18 months of the date of commencement of construction. All construction shall be in conformity with the approved Construction Plans. Periodically during construction, the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prio r to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer’s construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the form attached hereto as Exhibit D. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Developer to construct the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer to take or perform in order to obtain such certification. Section 4.5 Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred and the HRA may proceed with its remedies under Section 8.2. 83 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 7 ARTICLE V. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder’s risk insurance, written on the so-called “Builder’s Risk -- Completed Value Basis,” in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called “all risk” form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner’s Contractor’s Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers’ compensation insurance, with statutory coverage. The policies of insurance required pursuant to subparagraphs (a) and (b) above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than 30 days’ advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. ARTICLE VI. FINANCING Section 6.1 Financing. Within 20 days of the date of execution of this Agreement, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1 (b) of this Agreement. If the HRA staff finds that the financing is adequate in amount to provide for the construction of the Improvements, the HRA staff shall notify the Developer of its approval. If the HRA staff rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA’s remedies pursuant to Sections 8.2 and 9.8 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence of financing for construction of the Improvements. 84 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 8 Section 6.2 Limitation Upon Encumbrance of Property. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Representation as to Development. The Developer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of develo pment of the Property and not for speculation in land holding. The Developer further recognizes that, in view of the importance of the Development to the general welfare of the City and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the development of the Property possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this 85 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 9 Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change; and (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The lease of the Improvements to a Qualified Buyer or the sale of the Property to a community land trust shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3 Approvals. Any approval required to be given by the HRA under this Article VIII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; 86 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 10 (b) Subject to Section 9.7, failure by the Developer to complete the Improvements within 365 days of the date of commencement of construction, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation, or agreement on its part to be observed or performed hereunder, including the time for such performance; (d) Failure by the Developer to close with respect to the lease of the Improvements with a Qualified Buyer and the sale of the Property to a community land trust within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (f) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (g) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Holder of the Mortgage. Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Developer as provided in 9.4 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; and (d) take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer’s interest in the Property, it shall, notwithstanding 87 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 11 the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any su ch right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.4 No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA official or employee who is authorized to take part in any manner in making this Agreement in their official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than 10 days’ prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: 88 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 12 (a) As to the HRA: Golden Valley Director 7800 Golden Valley Road Golden Valley, MN 55427 (b) As to the Developer: Greater Metropolitan Housing Corporation ATTN: ______ 970 Raymond Avenue, Unit 201 St. Paul, MN 55114 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.4. Section 9.5 Provisions Not Merged With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion date of the Improvements set forth in Section 4.3 that exceeds six months from the date agreed to in Sections 3.4 and 4.3, respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing Date to a date less than six months from the Closing Date agreed to in Section 3.4 and extend the completion date of the Improvements to a date less than six months from the completion date set forth in Section 4.3. Section 9.8. Revesting Title in the HRA Upon Happening of Event Subsequent to Conveyance by the Developer. In the event that subsequent to conveyance of the Property to the Developer and prior to receipt by the Developer of the Certificate of Completion, the Developer, subject to Unavoidable Delays, fails to carry out its obligations with respect to the construction of the Improvements (including the nature and the date for completion thereof), or abandons or substantially suspends corrective work, and any such failure, abandonment, or suspension is not cured, ended, or remedied within 60 days after written demand from the HRA to the Developer to do so, then the HRA shall have the right to re-enter and take possession of the Property and to terminate (and revest in the HRA) the estate conveyed by deed to the Developer, it being the intent of this provision, together with other provisions of this Agreement, that the conveyance of the Property to the Developer shall be made upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Developer and failure of the Developer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivision, the HRA at its option, may declare a termination in favor of the HRA of the title, and of all the rights and interests in and to the Property conveyed to the Developer, and that such title and all rights and interests of the Developer and any assigns or successors in interest to and in the Property, shall revert to the HRA, but only if the events stated in this Section have not been cured within the time periods provided above. 89 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 13 Notwithstanding anything to the contrary contained in this Section, the HRA shall have no right to reenter or retake title to or possession of the Property in the event that a Certificate of Completion has been issued. Section 9.9. Resale of Reaquired Property; Disposition of Proceeds. Upon the revesting in the HRA of title to or possession of the Property as provided in Section 9.8 of this Agreement, the HRA shall apply the purchase price received by the HRA for the sale of the Property as follows: (a) First, to reimburse the HRA for all costs and expenses incurred by the HRA, including but not limited to, proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property (but less any income derived by the HRA from the Property in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property (or, in the event that the Property is exempt from taxation or assessment, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the City’s assessing official) as would have been payable if the Property were not exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property at the time of revesting of title thereto to the HRA or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults, or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Improvements on the Property; and any amounts otherwise owing the HRA by the Developer and its successors or transferee; and (b) Second, to reimburse the Developer for the balance of the purchase price received by the HRA for the sale of the Property remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Developer by the HRA upon delivery of an executed, recordable warranty deed to the Property by the Developer to the HRA. 90 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________________ Its: Maurice Harris, Chairperson By: _______________________________________ Its: Timothy J. Cruikshank, Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. ________________________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 2023, by Timothy J. Cruikshank, the Executive Director of the Housing and Redevelopment Authority in and for the City of Golden Valley (“HRA”), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. ________________________________________________ Notary Public 91 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 GREATER METROPOLITAN HOUSING CORPORATION By: ________________________________ Its: ___________________________________ STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this _____day of _______________, 2023, by __________________________________________, the _______________________ of the Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of Minnesota, on behalf of the corporation. ________________________________________________ Notary Public 92 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY The North 158.8 feet of Lot 4, Block 3, Tralee, according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 434516 and 434517. 93 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 2 EXHIBIT B LIST OF CONSTRUCTION PLAN DOCUMENTS  Contract for Development  Concept Plans  Site Plan 94 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 3 EXHIBIT C FORM OF QUIT CLAIM DEED Quit Claim Deed DEED TAX DUE: $_______ ECRV: __________________ Date: ____________________ FOR VALUABLE CONSIDERATION, the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Greater Metropolitan Housing Corporation, a non-profit corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, legally described as follows: The North 158.8 feet of Lot 4, Block 3, Tralee, according to the recorded plat thereof, Hennepin County, Minnesota. Together with all hereditaments and appurtenances, and subject to easements of record. Check here if part or all of the land is Registered (Torrens)  This deed is subject to the terms and provisions of that certain Contract for Development between Grantor and Grantee (the “Contract”), dated ______________, 20____, recorded _______________, 20_____, in the office of the Hennepin County Registrar of Titles as Document No. ______________, including, without limitation, the Grantor’s right of reverter in the event of certain defaults by Grantee under the Contract as more fully described in Section 9.8 thereof. Additionally, pursuant to Section 3.11 of the Contract, the Grantee agrees to lease the Improvements to a Qualified Buyer (as that term is defined in the Contract) and convey the Property to a community land trust. The Grantee must obtain the Grantor’s prior approval of the terms and conditions of the lease with the Qualified Buyer for the Improvements and the sale of the Property to the community land trust, and the agreement terms and conditions must be consistent with the terms of the Contract. 95 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 4  The Seller certifies that the Seller does not know of any wells on the described real property.  A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: __________________).  I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 96 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v15 NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK) NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK) HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: Its: Maurice Harris, Chairperson By: Its: Timothy J. Cruikshank, Executive Director STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____ day of _______, 2023, by Maurice Harris, the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority, Grantor. _______________________________________ SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this ____________ day of _______, 2023, by Timothy J. Cruikshank, the Executive Director, of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the Authority, Grantor. _______________________________________ SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT 97 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v16 Tax Statements should be sent to: Greater Metropolitan Housing Corporation 970 Raymond Avenue, Unit 201 St. Paul, MN 55114 This instrument was drafted by: Kennedy & Graven, Chartered (SJS) Fifth Street Towers, Suite 700 150 South Fifth Street Minneapolis, MN 55402 (612) 337-9300 98 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v17 EXHIBIT D FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that ____________________________, has fully and completely complied with its obligations under Article V of that document entitled “Contract for Development”, between the Housing and Redevelopment Authority in and for the City of Golden Valley and Greater Metropolitan Housing Corporation dated ___________________________, filed ___________________________ as Document No. ____________________ with respect to the construction of the approved construction plans and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: ___________________ HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: __________________________________ Its: Maurice Harris, Chairperson By: __________________________________ Its: Timothy J. Cruikshank Executive Director 99 0 = 1 " " GL135-50-875709.v1 GL135-50-875709.v1 GL135-50-875709.v1 8 STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _______________, 20___, by ___________________________________ the Chairperson of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of the State of Minnesota on behalf of the Authority. ________________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ______________ ) The foregoing instrument was acknowledged before me this __________ day of ____________________, 20__, by ____________________, the Director of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic under the laws of Minnesota, on behalf of the Authority. ________________________________________________ Notary Public This instrument was drafted by: Housing and Redevelopment Authority in and for the City of Golden Valley 7800 Golden Valley Road Golden Valley, MN 55427 100 Racially Restrictive Covenant 208 Meander Road Golden Valley, MN 55422 101 1,603 racially restrictive covenants in Golden Valley 61 covenants on City/HRA owned parcels 102 208 Meander Road 103 104 105 106 EXECUTIVE SUMMARY Community Development 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting July 5, 2023 Agenda Item 4.A. Adopt HRA Resolution No. 23-10 Accepting Metropolitan Council Livable Communities Grant, Approving Grant Agreement with Metropolitan Council, and Authorizing Sub Recipient Grant Agreements with Greater Metropolitan Housing Corporation for Home Ownership Program for Equity Prepared By Cherie Shoquist, Housing and Economic Development Manager Summary On November 1, 2022 the City Council approved an application to the Metropolitan Council for Local Housing Incentives Account (LHIA) Affordable Homeownership Pilot funds in the amount of $224,000 for the development of single family homes at 4707 Circle Down and 208 Meander Road by Greater Metropolitan Housing Corporation under the Home Ownership Program for Equity. Twin Cities Habitat for Humanity did not request LHIA funds for the 1605 Douglas Drive property because they had other sources of funding. On January 25, 2023 the LHIA Homeownership Pilot grant in the amount of $224,000 was awarded to the City of Golden Valley for the Home Ownership Program for Equity (HOPE) project. The Metropolitan Council staff provided the final Grant Agreement May 24, 2023 and agreed that it made sense for the agreement to be approved by the HRA with the Development Contracts and Sub-Recipient Agreements. Staff recommends the HRA accept the grant and approve the grant agreements. Financial or Budget Considerations If approved, the HRA will accept $224,000 in grant funds and allocate the funds in the following manner: $112,000 to Greater Metropolitan Housing Corporation to develop a single family home at 4707 Circle Down and $112,000 to Greater Metropolitan Housing Corporation to develop a single family home at 208 Meander Road. Legal Considerations The Grant Agreement and Sub-Recipient Grant Agreements conform with legal requirements for the grant programs. Equity Considerations The Home Ownership Program for Equity meets the City’s goals to preserve and promote economically diverse housing options in our community by creating high quality housing in Golden Valley for households with a variety of income levels, ages, and sizes. Dedicated publicly owned land for more affordable housing for homeownership is a valuable resource to meet our affordable housing goals. 107 HOPE recognizes that 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. There are currently approximately 1,603 racially restrictive covenants in Golden Valley including 61 covenants on City/HRA owned parcels. The HOPE property at 1605 Douglas Drive has a racially restrictive covenant that will be discharged by the City. Cities must also be more inclusive of Black Indigenous and People of Color populations by creating opportunities and resources for housing that are accessible at all affordability levels. Given existing racial disparities in housing, providing both affordable rental and homeownership opportunity is not only vital to providing all individuals and families with housing choice, but also with access to stable housing that impacts their health, education, employment, and ability to build wealth. HOPE prioritizes proposals from organizations that have demonstrated success in building relationships of trust with Black, Indigenous and People of Color populations and in serving first generation homebuyers. Serving homebuyers with annual incomes at 60% - 80% of Area Median Income as defined by Minnesota Housing Finance Agency' s Community Homeownership Impact Fund income limits for the 11 County Twin Cities Metro Area are also a priority of the Home Ownership Program for Equity. Recommended Action Motion to Adopt HRA Resolution No. 23-10 Accepting Metropolitan Council Livable Communities Grant and Approve Grant Agreement with Metropolitan Council. Motion to Approve Sub-Recipient Grant Agreement with Greater Metropolitan Housing Corporation for Home Ownership Program for Equity (HOPE) Property at 47XX/4707 Circle Down. Motion to Approve Sub-Recipient Grant Agreement with Greater Metropolitan Housing Corporation for Home Ownership Program for Equity (HOPE) Property at 208 Meander Road. Supporting Documents HRA Resolution No. 23-10 Metropolitan Council Livable Communities Grant and Approve Grant Agreement Agreement for Home Ownership Program for Equity GMHC LHIA Sub Grant Agreement 4707 Circle Down GMHC LHIA Sub Grant Agreement 208 Meander 108 HRA RESOLUTION NO. 23-10 A RESOLUTION APPROVING THE LOCAL HOUSING INCENTIVES ACCOUNT (LHIA) AFFORDABLE HOMEOWNERSHIP PILOT GRANT FROM THE METROPOLITAN COUNCIL FOR THE HOME OWNERSHIP PROGRAM FOR EQUITY (HOPE) WHEREAS, the City and the Housing and Redevelopment Authority in and for the City of Golden Valley 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, Minnesota Statutes sections 473.251 and 473.254 establish within the Metropolitan Livable Communities Fund a Local Housing Incentives Account and require the Council to annually distribute funds in the account to Participating Municipalities that have not met their affordable and life-cycle housing goals and are actively funding projects designed to help meet the goals, or to Development Authorities for projects located in Participating Municipalities; and WHEREAS, the City and the Housing and Redevelopment Authority has negotiated affordable and life-cycle housing goals pursuant to Minnesota Statutes section 473.254, subdivision 2 and have elected to participate in the Local Housing Incentives Account program; and WHEREAS, the Housing and Redevelopment sought funding in connection with an application for Local Housing Incentives Account Affordable Homeownership Pilot funds in the amount of $224,000 for the development of single family homes at 4707 Circle Down and 208 Meander Road under the Home Ownership Program for Equity; 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 109 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 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 will assist in filling the development financing and construction costs gaps. NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY that this Authority accepts the Local Housing Incentives Account Affordable Homeownership Pilot grant from the Metropolitan Council for the Home Ownership Program for Equity. 110 Passed by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota this 5th day of July 2023. ____________________________ Maurice Harris, HRA Chair ATTEST: ______________________________ Timothy J. Cruikshank, Executive Director 111 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 1 of 11 Pages LHIA SG-18436 rev. 3/13/2023 GRANTEE: Housing and Redevelopment Authority in and for the City of Golden Valley GRANT NO. SG- 18424 PROJECT: Home Ownership Program for Equity GRANT AMOUNT: $ 224,000 FUNDING CYCLE: 2022 COUNCIL ACTION: January 25, 2023 EXPIRATION DATE: December 31, 2025 METROPOLITAN LIVABLE COMMUNITIES ACT GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made and entered into by the Metropolitan Council (“Council”) and the Municipality or Development Authority identified above as “Grantee.” WHEREAS, Minnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act (“LCA”) and the policies of the Council’s Metropolitan Development Guide; and WHEREAS, Minnesota Statutes sections 473.251 and 473.254 establish within the Metropolitan Livable Communities Fund a Local Housing Incentives Account and require the Council to annually distribute funds in the account to Participating Municipalities that have not met their affordable and life-cycle housing goals and are actively funding projects designed to help meet the goals, or to Development Authorities for projects located in Participating Municipalities; and WHEREAS, the Grantee is a Municipality that has negotiated affordable and life-cycle housing goals pursuant to Minnesota Statutes section 473.254, subdivision 2 and has elected to participate in the Local Housing Incentives Account program, or is a Development Authority; and WHEREAS, at its March 9, 2022 meeting the Council approved an annual LCA Fund Distribution Plan that authorized a Local Housing Incentives Account Affordable Homeownership Pilot program; and WHEREAS, the Grantee seeks funding in connection with an application for Local Housing Incentives Account Affordable Homeownership Pilot funds submitted in response to a Request for Proposals issued by the Council for the “Funding Cycle” identified above and will use the grant funds made available under this Agreement to help fund the “Project” identified in the application; and WHEREAS, the Council awarded Local Housing Incentives Account Affordable Homeownership Pilot grant program funds to the Grantee subject to any terms, conditions, and clarifications stated in its Council Action, and with the understanding that the Project identified in the application will proceed to completion in a timely manner, all grant funds will be expended prior to the “Expiration Date” identified above and Project construction will have “commenced” before the Expiration Date. NOW THEREFORE, in reliance on the above statements and in consideration of the mutual promises and covenants contained in this Agreement, the Grantee and the Council agree as follows: 112 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 2 of 11 Pages LHIA SG-18436 rev. 3/13/2023 I. DEFINITIONS 1.01. Definition of Terms. The terms defined in this section have the meanings given them in this section unless otherwise provided or indicated by the context. (a) Commenced. For the purposes of Sections 2.09 and 5.03, “commenced” means significant physical improvements have occurred in furtherance of the Project (e.g., a foundation is being constructed or other tangible work on a structure has been initiated). In the absence of significant physical improvements, visible staking, engineering, land surveying, soil testing, cleanup site investigation, or pollution cleanup activities are not evidence of Project commencement for the purposes of this Agreement. (b) Council Action. “Council Action” means the action or decision of the governing body of the Metropolitan Council, on the meeting date identified at Page 1 of this Agreement, by which the Grantee was awarded Local Housing Incentives Account Affordable Homeownership Pilot funds. (c) Development Authority. “Development Authority” means a housing and redevelopment authority, economic development authority, or port authority. (d) Metropolitan Area. “Metropolitan Area” means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (e) Municipality. “Municipality” means a statutory or home rule charter city or town in the Metropolitan Area. (f) Participating Municipality. “Participating Municipality” means a Municipality electing to participate in the Local Housing Incentives Account program under Minnesota Statutes section 473.254. (g) Project. Unless clearly indicated otherwise by the context of a specific provision of this Agreement, “Project” means the development or redevelopment project identified in the application for Local Housing Incentives Account Affordable Homeownership Pilot funds for which grant funds were requested. Grant-funded activities typically are components of the Project. II. GRANT FUNDS 2.01. Source of Funds. The grant funds made available to the Grantee under this Agreement are from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund. The grant funds are derived from property taxes authorized by Minnesota Statutes sections 473.249, 473.253 and 473.254, subdivision 5 and are not from State or federal sources. 2.02. Total Grant Amount. The Council will grant to the Grantee the “Grant Amount” identified at Page 1 of this Agreement. Notwithstanding any other provision of this Agreement, the Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to the Council, or any reduction or termination of the dollar-for-dollar match amount required under Section 2.03, may result in a like reduction in the Grant Amount made available to the Grantee. 113 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 3 of 11 Pages LHIA SG-18436 rev. 3/13/2023 2.03. Match Requirement. Pursuant to Minnesota Statutes section 473.254, subdivision 6, the Grantee shall match on a dollar-for-dollar basis the total Grant Amount received from the Council under Section 2.02. The source and amount of the dollar-for-dollar match are identified in the Project Summary attached to and incorporated into this Agreement as Attachment A. With prior approval of the Council’s grant administrator the Grantee may change the source of the required match without a formal amendment to this Agreement, provided the change of match source is memorialized in a revised Project Summary. 2.04. Authorized Use of Grant Funds. The Grant Amount made available to the Grantee under this Agreement shall be used only for the purposes and Project activities described in the application for Local Housing Incentives Account Affordable Homeownership Pilot funds. A Project summary that identifies eligible uses of the grant funds as approved by the Council is attached to and incorporated into this Agreement as Attachment A. Grant funds must be used for purposes consistent with Minnesota Statutes section 473.25(a), in a Participating Municipality. 2.05. Ineligible Uses. Grant funds must be used for costs directly associated with the specific proposed Project activities and shall not be used for “soft costs” such as: administrative overhead; travel expenses; legal fees; insurance; bonds; permits, licenses, or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. Grant funds may not be used for costs of Project activities that occurred prior to the grant award, unless specifically included in the Project Summary or otherwise approved by the Council Action. A detailed list of ineligible and eligible costs is available from the Council’s Livable Communities program office. Grant funds also shall not be used by the Grantee or others to supplant or replace: (a) grant or loan funds obtained for the Project from other sources; (b) Grantee contributions to the Project, including financial assistance, real property or other resources of the Grantee; or (c) funding or budgetary commitments made by the Grantee or others prior to the Council Action, unless specifically authorized by the Council. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee or others in the implementation or performance of the Project activities. The Grantee agrees to comply with any “business subsidy” requirements of Minnesota Statutes sections 116J.993 to 116J.995 that apply to the Grantee’s expenditures or uses of the grant funds. 2.06. [reserved] 2.07. Revolving or Deferred Loans. If consistent with the application and the Project summary or if requested in writing by the Grantee, the Grantee may use the grant funds to make deferred loans (loans made without interest or periodic payments), revolving loans (loans made with interest and periodic payments) or otherwise make the grant funds available on a “revolving” basis for the purposes of implementing the Project activities described or identified in Attachment A. The Grantee will submit annual written reports to the Council that report on the uses of the grant funds. The Council will determine the form and content of the report. This annual reporting requirement is in addition to the reporting requirements stated in Section 4.03. Notwithstanding the Expiration Date identified at Page 1 of this Agreement and referenced in Section 5.01, the Grantee will submit the annual reports until the deferred or revolving loan programs terminate, or until the Council terminates this annual reporting requirement by written notice to the Grantee. At its discretion, the Council may: (1) permit the Grantee to use loan repayments to continue supporting affordable housing components of the Project; or (2) require the Grantee to remit the grant funds to the Council. 114 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 4 of 11 Pages LHIA SG-18436 rev. 3/13/2023 2.08. Restrictions on Grants and Loans by Subrecipients. The Grantee shall not permit any subgrantee or subrecipient to use the grant funds for grants or loans to any subgrantee or subrecipient at any tier unless the Grantee obtains the prior written consent of the Council. The requirements of this Section 2.08 shall be included in all subgrant and subrecipient agreements. 2.09. Project Commencement and Changes. The Project for which grant funds were requested must be “commenced” prior to the Expiration Date. The Grantee must promptly inform the Council in writing of any significant changes to the Project for which the grant funds were awarded, as well as any potential changes to the grant-funded activities described or identified in Attachment A. Failure to inform the Council of any significant changes to the Project or significant changes to grant- funded components of the Project, and use of grant funds for ineligible or unauthorized purposes, will jeopardize the Grantee’s eligibility for future LCA awards. Grant funds will not be disbursed prior to Council approval of significant changes to either the Project or grant-funded activities described or identified in Attachment A. 2.10. Budget Variance. The Grantee may reallocate up to twenty percent (20%) of the Grant Amount among the grant-funded activities, provided: (a) the grant funds may be used only for Project activities for which the Council awarded the grant funds; (b) the reallocation does not significantly change the Project deliverables; and (c) the Grantee receives written permission from Council staff prior to reallocating any grant funds. Council staff may administratively approve budget reallocation requests that exceed twenty percent (20%) of the Grant Amount only if the reallocation does not significantly change the Project deliverables. Notwithstanding the aggregate or net effect of any variances, the Council’s obligation to provide grant funds under this Agreement shall not exceed the Grant Amount identified at Page 1 of this Agreement. 2.11. Loss of Grant Funds. The Grantee agrees to remit to the Council in a prompt manner: any unspent grant funds, including any grant funds that are not expended prior to the Expiration Date identified at Page 1 of this Agreement; any grant funds that are not used for the authorized purposes; any grant funds that are not matched on a dollar-for-dollar basis as required by Section 2.03; and any interest earnings described in Section 2.13 that are not used for the purposes of implementing the grant-funded Project activities described or identified in Attachment A. For the purposes of this Agreement, grant funds are “expended” prior to the Expiration Date if the Grantee pays or is obligated to pay for expenses of eligible grant-funded Project activities that occurred prior to the Expiration Date and the eligible expenses were incurred prior to the Expiration Date. Unspent or unused grant funds and other funds remitted to the Council shall revert to the Council’s Local Housing Incentives Account for distribution through application processes in future Funding Cycles or as otherwise permitted by law. 2.12. Payment Request Forms, Documentation, and Disbursements. The Council will disburse grant funds in response to payment requests submitted by the Grantee through the Council’s online grant management system and reviewed and approved by the Council’s authorized agent. Payment requests shall be made using payment request forms, the form and content of which will be determined by the Council. Payment request and other reporting forms will be provided to the Grantee by the Council. The Council will disburse grant funds on a reimbursement basis or a “cost incurred” basis. To obtain reimbursement under this Agreement, the Grantee shall provide the Council with evidence that the eligible grant-funded Project activities (or a portion thereof) for which reimbursement has been requested have been satisfactorily completed. The Grantee shall describe the grant-eligible activities for which reimbursement is requested and shall provide sufficient documentation of grant-eligible expenditures, invoices and payment documents, and such other information as the Council reasonably 115 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 5 of 11 Pages LHIA SG-18436 rev. 3/13/2023 requests. The Council will make the final determination whether the expenditures are eligible for reimbursement under this Agreement, and verify the total amount requested from the Council. Reimbursement of any costs does not constitute a waiver by the Council of any Grantee noncompliance with this Agreement. Payment requests must include the following documentation: Consultant/contractor invoices showing the time period covered by the invoice; the specific grant-funded Project activities conducted or completed during the authorized time period within which eligible costs may be incurred; and documentation supporting expenses including subcontractor and consultant invoices showing unit rates, quantities, and a description of the good or services provided. Subcontractor markups shall not exceed ten percent (10%). The Council shall disburse grant funds for all grant-eligible expenditures within thirty-five (35) days of the receipt of satisfactory documentation from the Grantee. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION 2.12, THE COUNCIL WILL NOT DISBURSE ANY GRANT FUNDS TO THE GRANTEE UNLESS THE PARTICIPATING MUNICIPALITY HAS ADOPTED A FAIR HOUSING POLICY AS REQUIRED BY SECTION 3.04. 2.13. Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this Agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the Project activities described or identified in Attachment A. 2.14. Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the Project site nor imposes any obligation on the Council to participate in any pollution cleanup of the Project site if such cleanup is undertaken or required. 2.15. Resale Limitations. The Grantee must impose resale limitations regarding the disposition of any equity realized by the purchasers of “affordable” units if grant funds received from the Council under this Agreement are used for homeownership affordability gap financing in the Project described or identified in Attachment A. The intent of this resale limitation is to protect the public investment in the Project and ensure that a proportion of the affordability gap provided by the public investment in the form of grant funds received from the Council is recaptured for reuse in conjunction with other affordable housing efforts and does not become a windfall for any purchaser who might sell the home prior to expiration of a predetermined resale limitation period. If a purchaser sells the “affordable” home prior to expiration of the resale limitation time period, an equitable proportion of the affordability gap filled by grant funds received from the Council under this Agreement must be recaptured by the Grantee within twenty-four (24) months of the triggering resale event and applied to a similar affordable housing project within the Participating Municipality or returned to the Council. Unless otherwise agreed to by the Council and the Grantee, the length of the resale limitation time period and the proportion of the affordability gap to be recovered will be consistent with resale limitation time periods and repayment schedules stated in the Project application. These resale limitations do not apply when the grant funds are used for homeownership value gap financing. The Grantee will provide the Council with a copy of the resale limitations the Grantee imposed on the grant-assisted affordable units, which may include copies of declarations or restrictive covenants recorded against the property. 116 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 6 of 11 Pages LHIA SG-18436 rev. 3/13/2023 III. AFFORDABILITY; AFFIRMATIVE FAIR HOUSING 3.01. Affordability Term. If the Project for which the grant funds were awarded includes affordable housing units, the Grantee shall, through written instruments or otherwise, ensure the affordable units will remain affordable for a minimum period of fifteen (15) years. The Grantee’s obligation under this section may be satisfied if other Project funding sources (e.g., the Minnesota Housing Finance Agency or the U.S. Department of Housing and Urban Development (“HUD”) or state or federal laws (e.g., low-income housing tax credit programs) require an affordability term of at least fifteen (15) years. For the purposes of this section, “affordable housing unit” means a unit that is affordable to households at eighty percent (80%) or less of the Area Median Income (“AMI”), as established by HUD, unless the Grantee’s application stated an affordability standard lower than eighty percent (80%) of AMI, in which case the Grantee’s lower affordability standard shall apply. The affordability requirements of this section shall survive the expiration or termination of this Agreement. If the affordable housing units are made available for homeownership then they are subject to the resale limitations specified in Section 2.15 and the affordability requirements of this section only apply if Council funds pay more than half of the housing unit’s affordability gap stated in the Project application. 3.02. Affirmative Fair Housing Marketing Plans. If the Project for which the grant funds were awarded is a housing project or includes housing units (whether market rate or affordable), the Grantee shall, through written instruments or otherwise, ensure the Project owner (and any subsequent owner(s)) adopts and implements an affirmative fair housing marketing plan for all Project housing units. For the purposes of this section, “affirmative fair housing marketing plan” means an affirmative fair housing marketing plan that substantially conforms to affirmative fair housing marketing plans published by the U.S. Department of Housing and Urban Development (“HUD”) or sample affirmative fair housing marketing plans published by the Minnesota Housing Finance Agency. The affirmative fair housing marketing plan requirement under this section shall continue for the minimum affordability term specified in Section 3.01 and shall survive the expiration or termination of this Agreement. 3.03. [reserved] 3.04. Fair Housing Policy. If the Project will include a housing component, the governing body of the participating Municipality must have adopted a Fair Housing Policy. For the purposes of this section, the term “Fair Housing Policy” means a written statement regarding the participating Municipality’s commitment to fair housing that substantively includes at least the following elements: a purpose statement; procedures for responding to fair housing concerns and complaints; and a designated individual or staff position responsible for fair housing issues. A best practices guide, as well as a copy of a model local fair housing policy is available at: https://metrocouncil.org/Handbook/Files/Resources/Best-Practices/Fair-Housing-Policy- Guide.aspx. IV. ACCOUNTING, AUDIT, AND REPORT REQUIREMENTS 4.01. Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of Sections 5.01 and 5.02, such accounts and records shall be kept and maintained by the Grantee for a period of six (6) years following the completion of the Project activities described or identified in Attachment A or six 117 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 7 of 11 Pages LHIA SG-18436 rev. 3/13/2023 (6) years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of grant funds received pursuant to this Agreement, the Grantee will keep proper financial records and other appropriate documentation sufficient to evidence the nature and expenditure of the dollar- for-dollar match funds required under Section 2.03. Accounting methods shall be in accordance with generally accepted accounting principles. 4.02. Audits. The above accounts and records of the Grantee shall be audited in the same manner as all other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Grantee, for a period of six (6) years following the completion of the Project activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes section 16C.05, subdivision 5, the books, records, documents and accounting procedures and practices of the Grantee that are relevant to this Agreement are subject to examination by the Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. 4.03. Reporting and Continuing Requirements. The Grantee will report to the Council on a semi- annual basis by January 31 (for the period of July 1 through December 31) and July 31 (for the period January 1 through June 30) of each calendar year during the term of this Agreement. The Grantee reports shall describe the status of the Project activities described or identified in Attachment A. The report shall also describe the Project spending for the current reporting period and projected spending for the future reporting periods. The Grantee also must complete and submit to the Council a Final Report before the final disbursement of grant funds will be approved. The form and content of the semi-annual status reports and the Final Report will be determined by the Council. These reporting requirements and the reporting requirements of Section 2.07 shall survive the expiration or termination of this Agreement. 4.04. Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the Project activities funded by this grant, and that any environmental issues have been or will be adequately addressed. V. AGREEMENT TERM 5.01. Term and Close Out. This Agreement is effective upon execution of this Agreement by the Council. Unless terminated pursuant to Section 5.02, this Agreement expires on the Expiration Date identified at Page 1 of this Agreement. The Grantee has 120 calendar days after the Expiration Date to provide documentation and information necessary to close out this Agreement and receive disbursements for eligible grant-funded Project activities as prescribed in Section 2.04. If the Grantee fails to provide necessary documentation and information during this 120-day close out period, the Grantee shall not be eligible to receive any unpaid grant funds and the Council will not disburse any unpaid grant funds to the Grantee. This 120-day close out period does not extend any Grantee reporting deadlines established in this Agreement or authorize the Grantee to expend or commit any grant funds after the Expiration Date. 5.02. Termination. This Agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days’ written notice to the Grantee. Cause shall mean a material breach of this Agreement and any amendments of this Agreement. If this Agreement is terminated prior to the Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible Project activities 118 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 8 of 11 Pages LHIA SG-18436 rev. 3/13/2023 described or identified in Attachment A that have been completed prior to the termination. Termination of this Agreement does not alter the Council’s authority to recover grant funds on the basis of a later audit or other review and does not alter the Grantee’s obligation to return any grant funds due to the Council as a result of later audits or corrections. If the Council determines the Grantee has failed to comply with the terms and conditions of this Agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council’s interests and may refuse to disburse additional grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 5.03. Amendments and Extension. The Council and the Grantee may amend this Agreement by mutual agreement. Amendments or an extension of this Agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. If the Grantee needs a change to the Project, additional time within which to complete grant-funded activities and commence the Project, a change in the budget, or a change in the grant-funded activities the Grantee must submit to the Council AT LEAST NINETY (90) CALENDAR DAYS PRIOR TO THE EXPIRATION DATE, a complete, written amendment request. All requirements must be met for a request to be considered complete. THE EXPIRATION DATE MAY BE EXTENDED, BUT THE PERIOD OF ANY EXTENSION(S) SHALL NOT EXCEED TWO (2) YEARS BEYOND THE ORIGINAL EXPIRATION DATE IDENTIFIED AT PAGE 1 OF THIS AGREEMENT. VI. GENERAL PROVISIONS 6.01. Equal Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age and will take affirmative action to ensure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 6.02. Conflict of Interest. The members, officers, and employees of the Grantee shall comply with all applicable state statutory and regulatory conflict of interest laws and provisions. 6.03. Liability. Subject to the limitations provided in Minnesota Statutes chapter 466, to the fullest extent permitted by law, the Grantee shall defend, indemnify, and hold harmless the Council and its members, employees, and agents from and against all claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Project activities funded by this grant, except to the extent the claims, damages, losses and expenses arise from the Council’s own negligence. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as amended, United States Code, Title 42, sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code, title 42, sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would exist between the Council and the Grantee. The provisions of this section shall survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicable state or federal law. 119 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 9 of 11 Pages LHIA SG-18436 rev. 3/13/2023 6.04. Acknowledgments and Signage. The Grantee will acknowledge the financial assistance provided by the Council in promotional materials, press releases, reports, and publications relating to the Project. The acknowledgment will contain the following or comparable language: Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund. Until the Project is completed, the Grantee shall ensure the above acknowledgment language, or alternative language approved by the Council’s authorized agent, is included on all signs (if any) located at Project or construction sites that identify Project funding partners or entities providing financial support for the Project. The acknowledgment and signage should refer to the “Metropolitan Council” (not “Met Council” or “Metro Council”). 6.05. Permits, Bonds, and Approvals. The Council assumes no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Project activities described or identified in Attachment A. The Grantee and its developer(s), if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. 6.06. Subgrantees, Contractors and Subcontractors. The Grantee shall include in any subgrant, contract, or subcontract for Project activities appropriate provisions to ensure subgrantee, contractor, and subcontractor compliance with all applicable state and federal laws and this Agreement. Along with such provisions, the Grantee shall require that contractors and subcontractors performing work covered by this Agreement comply with all applicable state and federal Occupational Safety and Health Act regulations. The Grantee’s subgrant agreement(s) shall expressly include the affordability and affirmative fair housing marketing plan requirements of Sections 3.01 and 3.02. 6.07. Stormwater Discharge and Water Management Plan Requirements. If any grant funds are used for urban site redevelopment, the Grantee shall at such redevelopment site meet or require to be met all applicable requirements of: (a) Federal and state laws relating to stormwater discharges including, without limitation, any applicable requirements of Code of Federal Regulations, title 40, parts 122 and 123; and (b) The Council’s 2040 Water Resources Policy Plan and the local water management plan for the jurisdiction within which the redevelopment site is located. 6.08. Authorized Agent. Payment request forms, written reports, and correspondence submitted to the Council pursuant to this Agreement shall be directed to the Authorized Agent named below or their successor through the Council’s online grants administration portal or to the below contact information: Attn: Samuel F. Johnson Metropolitan Council CD & MTS Finance and Administration 390 Robert Street North Saint Paul, Minnesota 55101-1805 samuel.johnson@metc.state.mn.us 120 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 10 of 11 Pages LHIA SG-18436 rev. 3/13/2023 6.09. Non-Assignment. Minnesota Statutes section 473.254, subdivision 6 requires the Council to distribute the grant funds to eligible “municipalities” or “development authorities” for projects in municipalities participating in the Local Housing Incentives Account program. Accordingly, this Agreement is not assignable and shall not be assigned by the Grantee. 6.10. Authorization to Reproduce Images. The Grantee certifies that the Grantee: (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs, or other copyrightable materials (collectively, “copyrightable materials”) that are in the Grantee’s application or are submitted to the Council as part of the grant application review process or after grant award, or that the Grantee is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Grantee agrees the Council has a nonexclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports, and on the internet. The Grantee also agrees the Grantee will not hold the Council responsible for the unauthorized use of the copyrightable materials by third parties. 6.11. Warranty of Legal Capacity. The individuals signing this Agreement on behalf of the Grantee and on behalf of the Council represent and warrant on the Grantee’s and the Council’s behalf respectively that the individuals are duly authorized to execute this Agreement on the Grantee’s and the Council’s behalf respectively and that this Agreement constitutes the Grantee’s and the Council’s valid, binding, and enforceable agreements. 6.12. Counterparts. This Agreement may be executed in counterpart, each of which counterpart constitutes an original, but both of which together constitute one instrument. 6.13. Electronic Signatures. The electronic signatures of the Council’s and the Grantee’s authorized representatives shall be valid as an original signature of the authorized representatives and shall be effective to bind the Council and the Grantee under this Agreement. This Agreement containing, or to which there is affixed, an electronic signature shall be deemed to: (a) be “written” or “in writing”; (b) have been signed; and (c) constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. “Electronic signature” also means a manually signed original signature that is then transmitted by any electronic means, including without limitation a faxed version of an original signature or an electronically scanned and transmitted version (e.g., via PDF) of an original signature. The Council’s or the Grantee’s failure to produce the original signature of any electronically transmitted signature shall not affect the enforceability of this Agreement. [ Remainder of Page Intentionally Left Blank. Signature Page Follows. ] 121 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 11 of 11 Pages LHIA SG-18436 rev. 3/13/2023 IN WITNESS WHEREOF, the Grantee and the Council have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective on the date of final execution by the Council. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________ Title: MAURICE HARRIS, CHAIR Date: JULY 5, 2023 By: _______________________________ Title: TIMOTHY J. CRUIKSHANK, EXECUTIVE DIRECTOR Date: JULY 5, 2023 METROPOLITAN COUNCIL By: _________________________________ LisaBeth Barajas, Executive Director Community Development Division Date: _______________________________ 122 ATTACHMENT A PROJECT SUMMARY This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the Project identified in the application for Local Housing Incentives Account Affordable Homeownership Pilot grant funds submitted in response to a Request for Proposals issued by the Council for the Funding Cycle identified at Page 1 of this Agreement. The summary reflects the proposed Project for which the Grantee was awarded grant funds by the Council Action, and may reflect changes in Project funding sources, changes in funding amounts, or minor changes in the proposed Project that occurred subsequent to application submission. The application is incorporated into this Agreement by reference and is made a part of this Agreement as follows. If the application or any provision in the application conflicts with or is inconsistent with the Council Action, other provisions of this Agreement, or the Project summary contained in this Attachment A, the terms, descriptions, and dollar amounts reflected in the Council Action or contained in this Agreement and the Project summary shall prevail. For the purposes of resolving conflicts or inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the Project summary; and (4) the grant application. 123 Livable Communities Project Summary Grant # SG-18436 Type: Local Housing Incentives Account Affordable Homeownership Pilot Applicant: City of Golden Valley Project Name: Home Ownership Program for Equity Project Location: City of Golden Valley Council District: District 7 – John Pacheco Jr. Project Detail Project Overview The Home Ownership Program for Equity (HOPE) will make public land available for the development of homes for affordable and equitable homeownership opportunity in the City of Golden Valley. This is the first year of the program. Twin Cities Habitat for Humanity and Greater Metropolitan Housing Corporation have applied for Minnesota Housing Impact Funds to assist in the construction of the homes. The partnership with Homes Within Reach will assist in achieving affordability at 80% AMI, potentially 60% AMI funding contingent. The homes will remain affordable for 99 years. This project will prioritize applications from organizations that have demonstrated success in building relationships of trust with Black, Indigenous, and people of color and in serving first generation homebuyers. The qualified HOPE developers have demonstrated success in serving Black, Indigenous and people of color homebuyers; Habitat serves over 80% homebuyers of color and GMHC serves 70% homebuyers of color. Development Type New Construction, Preservation Total housing units 2 homes Affordable units (AMI) All homes ≤ 60% AMI LHIA Pilot Funding LHIA $224,000 Providing LHIA Match City of Golden Valley Use of Funds General construction and rehabilitation 124 SUB-GRANT AGREEMENT (Metropolitan Council Livable Communities Act Grant – Local Housing Incentives Account – Affordable Homeownership Grant Program) THIS SUB-GRANT AGREEMENT (the “Agreement”) is made as of this ___ day of _____________, 2023 (the “Effective Date”), between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, MINNESOTA, a public body corporate and politic of the State of Minnesota (the “Grantee”), and GREATER METROPOLITAN HOUSING CORPORATION, a Minnesota nonprofit cooperative (the “Sub-Grantee”). WHEREAS, the Grantee and Metropolitan Council entered into the Metropolitan Livable Communities Act Grant Agreement, effective as of January 25, 2023 (the “Grant Agreement”), a copy of which is attached hereto as EXHIBIT A and is incorporated herein and made part of this Agreement; and WHEREAS, the Grant Agreement provides that Metropolitan Council is to grant to the Grantee a sum not to exceed $112,000, which shall be used to reimburse the Sub-Grantee for the development of a new homeownership housing unit to be sold to households with incomes of no more than eighty percent (60%) of the area median income (the “Project”) on the property legally described in EXHIBIT B attached hereto (the “Property”); and WHEREAS, the Grantee and the Sub-Grantee have agreed for the Sub-Grantee to assume certain duties and responsibilities of the Grantee under the Grant Agreement in consideration of receiving funds provided for in the Grant Agreement and subject to the terms, conditions, and limitations set forth therein. NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, the parties hereto covenant and agree as follows: 1. Grant Funds. The Grantee will distribute funds received under the Grant Agreement upon the continuing compliance by the Sub-Grantee with its obligations hereunder. The Sub-Grantee shall use the grant proceeds which are being provided by the Grantee under this Agreement solely for the Project, as further specified within the Livable Communities Project Summary (attached to the Grant Agreement). The grant proceeds shall not be used for any ineligible uses as described in the Grant Agreement. The Sub-Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to Metropolitan Council from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund may result in a like reduction in the amount of the grant proceeds that will be made available to the Sub-Grantee pursuant to this Agreement. Pursuant to Section 2.08 of the Grant Agreement, the parties agree that none of the grant funds may be made available to any subgrantee or subrecipient without the prior written consent of Metropolitan Council. 2. Grantee’s Obligations. The Grantee will be responsible for reimbursing the Sub-Grantee for the costs of tree removal and demolition (the “Activities”) up to a total amount of $112,000, which will be funded from the grant proceeds received from Metropolitan Council. The Grantee will disburse funds to the Sub-Grantee pursuant to this Agreement and the Grant Agreement, based upon reimbursement requests submitted by the Sub-Grantee and reviewed and approved by the Grantee and Metropolitan Council. Reimbursement requests must be accompanied by all information and documentation needed by the Grantee pursuant to Section 2.12 of the Grant Agreement to submit a payment request form to Metropolitan Council. In order to ensure that all funds are drawn prior to the expiration of the grant, all payment requests must be received by the Grantee at least 60 days prior to the grant-term expiration date of December 31, 2025 unless extended by the Grantee in writing, otherwise any unrequested funds will be lost. The Grantee shall have no obligation to disburse any of these funds if, at the time of disbursement, the Sub-Grantee is in default under any of the terms of this Agreement. 125 2 3. Sub-Grantee’s Obligations. The Sub-Grantee shall perform and satisfy certain obligations of the Grantee under the Grant Agreement. Specifically, but without limiting the foregoing, the Sub-Grantee must perform all the following with respect to the Activities and in satisfaction of the Grant Agreement obligations: a. The Sub-Grantee will be responsible for performing all of the activities on the Property set forth in the Livable Communities Project Summary that is attached to the Grant Agreement (the “Activities”). All Activities provided by the Sub-Grantee under this Agreement must be performed to the reasonable satisfaction of the Grantee and Metropolitan Council and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Sub-Grantee will not receive payment for Activities found by the Grantee or Metropolitan Council to be reasonably unsatisfactory or performed in violation of federal, state, or local law. b. The Sub-Grantee will comply with all requirements and conditions of the Grant Agreement applicable to the Activities that, by their nature, must be performed by Sub-Grantee rather than Grantee and that are conditions of award of funds under the Grant Agreement. c. The Sub-Grantee must take all other actions as are needed to ensure compliance with the Grant Agreement and provide such information and assistance to the Grantee as may reasonably be needed to ensure the Grantee can comply with the requirements of the Grant Agreement that, by their nature, must be performed by the Grantee rather than the Sub-Grantee. d. In order to permit the Grantee and Metropolitan Council to monitor compliance with this Agreement, the Sub-Grantee shall permit any person that the Grantee or Metropolitan Council designates, at the expense of the Grantee or Metropolitan Council, to visit and inspect the Property, corporate books and financial records and documents of the Sub-Grantee as relevant to receipt and expenditure of the grant funds or this Agreement and to discuss its affairs, finances, and accounts (as they relate to receipt and expenditure of the grant funds or this Agreement) with the principal officers of Sub-Grantee, all at such reasonable times and as often as the Grantee or Metropolitan Council may reasonably request during the term of this Agreement and for a period of six (6) years after the termination of this Agreement. e. The Sub-Grantee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. f. If the Sub-Grantee earns any interest or other income from the grant funds received from the Grantee under this Agreement, the Sub-Grantee must use the interest earnings or income only for the purposes of implementing the Activities. g. Pursuant to Section 3.01 of the Grant Agreement, because the Project includes affordable housing units, the Grantee is required to ensure that said housing units will remain “affordable,” as that term is defined in the Grant Agreement, for a minimum period of fifteen (15) years. Said obligation may be satisfied if other Project funding sources require 126 3 an affordability term of at least fifteen (15) years. If at any point it is determined that the Sub-Grantee is not participating in said program or in another state or federal program that will ensure such affordability for the period required via formal instrument, or if there is any other reason to believe that there are no instruments in place to ensure the same, as required in the Grant Agreement, the Sub-Grantee agrees that it will execute any instruments to ensure such affordability, in a form that meets the Grantee’s satisfaction. A failure to adhere to this subsection may result , at Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. h. Pursuant to Section 3.02 of the Grant Agreement, the Sub-Grantee agrees and acknowledges that it, as the Project owner, must adopt and implement an affirmative fair housing marketing plan for all housing units within the Project. To that end, the Sub- Grantee agrees that before it will be eligible for any grant funds under the terms of this Agreement, it shall adopt and implement such a plan, which shall substantially conform to affirmative fair housing marketing plans published by the U.S. Department of Housing and Urban Development (“HUD”) or sample affirmative fair housing marketing plans published by the Minnesota Housing Finance Agency. Such plan shall be made available to Grantee upon its request. A failure to adhere to this subsection may result, at the Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. 4. Ownership and Condition of the Property. The Sub-Grantee makes the following representations: a. It is the owner of the Property in fee simple. b. To the best of the Sub-Grantee’s knowledge, the Property does not violate any applicable federal, state, or local law, ordinance, or regulation. c. There are no actions, suits, or proceedings pending, at law or in equity, or to the knowledge of the Sub-Grantee threatened, against or affecting it or the Property, and the Sub-Grantee is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority. d. The consummation of this transaction and performance of the Sub-Grantee’s obligations under this Agreement will not result in any breach of, or constitute a default under any mortgage, deed of trust, lease, bank loan, or credit agreement, partnership agreement, or other instrument which affects the Sub-Grantee, or to which the Sub-Grantee is a party. e. It has not used the Property in connection with the generation, disposal, storage, treatment, or transportation of hazardous substances and that the Property will not be so used during the term of this Agreement by the Sub-Grantee, its agents, tenants, or assigns, except in compliance with a Minnesota Pollution Control Agency (“MPCA”) approved Development Response Action Plan. f. It has obtained or caused its contractors and/or affiliates to obtain, all the insurance described in Section 5 hereof and such policies of insurance are in full force and effect as of the date of this Agreement. g. The individual(s) signing this Agreement on behalf of the Sub-Grantee are duly authorized to execute this Agreement on the Sub-Grantee’s behalf. 127 4 5. Affirmative Covenants. The Sub-Grantee hereby covenants and agrees that it shall: a. Insurance. i. Purchase and maintain such insurance, or cause its contractors and/or affiliates to purchase and maintain such insurance, as will protect it from claims which may arise out of, or result from, the Activities completed under this Agreement, whether such operations be by the Sub-Grantee or by any subcontractor, or by anyone directly employed by them, or by anyone for whose acts any one of them may be liable. ii. For the term of this Agreement and in connection with the Activities completed pursuant to this Agreement, secure the following coverages and comply with all provisions noted, or cause its contractors and/or affiliates to secure, the following coverages and comply with all provisions noted. Upon written request by Grantee, during the term of this Agreement, the Sub-Grantee will provide certificates of insurance evidencing current coverages. Commercial General Liability Insurance: $1,500,000 per occurrence $2,000,000 general aggregate $2,000,000 products/completed operations total limit $1,000,000 personal injury and advertising injury This policy shall be written on an occurrence basis using ISO form CG 00 01 or its equivalent. The Sub-Grantee represents that there is no per claim limit under the Sub-Grantee’s occurrence-based policy. Coverage shall include contractual liability and XCU. Notwithstanding the foregoing, the Sub-Grantee will obtain, or cause its contractor and/or affiliates to obtain completed operations coverage for three (3) years after substantial completion of the Activities. Upon written request by the Grantee, the Sub-Grantee is required to add, or to cause its contractors and/or affiliates to add, the Grantee and any specified officials, employees, volunteers, and agents as Additional Insureds to the Commercial General Liability and Umbrella policies fulfilling the requirements of this Agreement with respect to liabilities caused in whole or in part by the Sub-Grantee’s acts or omissions, or the acts or omissions of those acting on the Sub-Grantee’s behalf in the performance of the ongoing operations, services, and completed operations of the Sub-Grantee under this Agreement. The coverage provides shall be primary and non-contributory. Automobile Insurance: Coverage shall be provided for hired, non-owned, and owned automobiles. Minimum limits of $1,000,000 combined single limit. Workers’ Compensation and Employers’ Liability: Workers’ Compensation as required by Minnesota statutes. 128 5 Employers’ Liability Limits: $500,000/$500,000/$500,000 Professional Liability/Errors and Omissions Coverage (if applicable): Per Claim Limit: $500,000 Per Occurrence Limit: $1,500,000 Aggregate Limit: $2,000,000 This policy is to be written as acceptable to the Grantee. Certificates of Insurance must indicate if the policy is issued on a claims-made or occurrence basis. If coverage is carried on a claims-made basis, then (1) the retroactive date shall be noted on the certificate and shall be prior to or the day of the inception of this Agreement; and (2) evidence of coverage shall be provided for three (3) years beyond expiration of this Agreement. iii. The Sub-Grantee shall provide the Grantee with prior notice of any lapse in the insurance required under this Agreement including cancellation, and/or non-renewal or material change in coverage. iv. The above sub-paragraphs establish minimum insurance requirements, and it is the sole responsibility of the Sub-Grantee to purchase and maintain, or cause its contractors and/or affiliates to purchase and maintain, additional coverages as the Sub-Grantee may deem necessary in connection with this Agreement. v. The Certificate of Insurance must demonstrate that the policy is issued pursuant to these requirements. Copies of insurance policies shall be submitted to the Grantee upon written request. vi. Certificates shall specifically indicate if the policy is written with an admitted or non-admitted carrier. Best’s Rating for the insurer shall be noted on the certificate and shall not be less than an A-. b. To the fullest extent permitted by law, the Sub-Grantee shall defend, indemnify, and hold harmless the Grantee and Metropolitan Council and their officials, employees, and agents from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Activities funded by this Agreement, except to the extent the claims, damages, losses, and expenses arise from the own negligence of the Grantee or Metropolitan Council. Claims included in this indemnification include without limitation any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes, Chapter 115B (CERCLA), as amended, United States Code Title 42, Section 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code Title 42, Sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or Metropolitan Council of any immunities or limits on liability provided by Minnesota Statutes Chapter 466 or other applicable state or federal law. c. Promptly pay and discharge all taxes, assessments, and other governmental charges imposed upon it or upon its income and profits or upon the Property, and any and all claims 129 6 for labor, material or supplies or rental charges or charges of any other kind which, if unpaid, might by law become a lien or charge upon the Property, provided, however, that the Sub-Grantee shall not be required to pay any such tax, assessment, charge or claim, if the Sub-Grantee is contesting the validity of such matters, in good faith, through appropriate proceedings, and the Sub-Grantee sets aside on its books adequate reserves for the payment of such claims. d. Maintain the Property in good repair, working order, and condition and from time to time, make or cause to be made all necessary renewals, replacements, and repairs so that at all times the Sub-Grantee’s business can be conducted efficiently. e. Establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Grantee. Notwithstanding the expiration and termination provisions of this Agreement, such accounts and records shall be kept and maintained by the Sub-Grantee for a period of six (6) years following the completion of the Activities for six (6) years following the expenditure of the grant funds, whichever occurs earlier. Accounting methods shall be in accordance with generally accepted accounting principles. f. The accounts and records of the Sub-Grantee shall be audited in the same manner as all other accounts and records of the Sub-Grantee are audited and may be audited or inspected on the Sub-Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Grantee or Metropolitan Council at any time, following reasonable notification to the Sub-Grantee, for a period of six (6) years following the completion of the Activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes, Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices of the Sub-Grantee that are relevant to this Agreement are subject to examination by the Grantee and Metropolitan Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. g. The Sub-Grantee shall include in any contract or subcontract for the Activities appropriate provisions to ensure contractor or subcontractor compliance with all applicable state and federal laws and this Agreement, including, but not limited to, federal and state laws relating to stormwater discharges (i.e., Code of Federal Regulations, Title 40, parts 122 and 123 and Metropolitan Council’s 2040 Water Resources Policy Plan and the local water management plan). Along with such provisions, the Sub-Grantee shall require that contractors and subcontractors performing activities covered by this grant obtain all required permits, licenses, and certifications, and comply with all applicable state and federal Occupational Safety and Health Act regulations. h. Construct the Project to meet all applicable local codes, rehabilitation standards, ordinances, and zoning regulations. The Grantee and Metropolitan Council assume no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Activities. The Sub-Grantee and its contractors, if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. i. Acknowledge the financial assistance provided by Metropolitan Council in promotional materials, press releases, reports and publications relating to the Activities which are 130 7 funded in whole or in part with the grant funds. The acknowledgment must contain the following or comparable language: “Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund.” Until the Activities are completed, the Sub-Grantee must ensure the above acknowledgment language, or alternative language approved by the authorized agent of Metropolitan Council, is included on all signs (if any) located on the Property or construction sites. The acknowledgments and signage should refer to “Metropolitan Council” (not “Met Council” or “Metro Council”). j. Provide the Grantee with all information that is needed by the Grantee to submit the required written progress reports and annual written reports required by Section 4.03 of the Grant Agreement. 6. Negative Covenants. The Sub-Grantee covenants and agrees that for the term of this Agreement, it will not: a. Merge or consolidate with or into any other entity. b. Default upon any contract or fail to pay any contract or fail to pay any of its debts or obligations as the same mature, subject to the applicable cure periods set forth in such a contract. c. Generate, dispose of, use, store, treat, or transport hazardous waste substances on, in, over or across the Property or allow the Sub-Grantee’s tenants to do so; provided, however, that Sub-Grantee may treat or remediate hazardous substances pursuant to an MPCA-approved Development Response Action Plan and the Sub-Grantee and its tenants may use, store, and transport hazardous substances on, over or across the Property as is reasonably necessary to the use of the Property as residential, commercial, or office property provided such use, storage, and transportation complies at all times with all applicable federal, state, and local statutes, codes, regulations, and ordinances. 7. Miscellaneous. a. All representations and warranties contained herein or made in writing by or on behalf of the Sub-Grantee in connection with the transactions contemplated hereby shall be made as of the Effective Date but survive the execution and delivery of this Agreement and the advances hereunder. All statements contained in any certificate or other instrument delivered by or on behalf of the Sub-Grantee pursuant thereto or in connection with the transactions contemplated hereby shall constitute representations and warranties by the Sub-Grantee. b. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties. c. No amendment, change, waiver, or modification of this Agreement shall be valid unless it is in a written document which Sub-Grantee, and the Grantee sign, and the Grantee’s waiver of any breach or default of any of the Sub-Grantee’s obligations, agreements, or covenants under this Agreement shall not be deemed to be a waiver of any subsequent 131 8 breach of this Agreement, or any other obligation, agreement, or covenant. The Grantee’s forbearance in pursuing or enforcing a remedy for the Sub-Grantee’s breach of any of the obligations set forth in this Agreement shall not be deemed a waiver of the Grantee’s rights and remedies with respect to such breach. d. This Agreement may be executed simultaneously in two (2) or more counterparts, each of which shall be an original, but all of which shall constitute one (1) agreement. e. This Agreement supersedes and has merged into all prior oral agreements between the Grantee and the Sub-Grantee regarding the Activities. f. Any notices required or contemplated hereunder shall be effective upon the placing thereof in the United States Mail, certified mail, return receipt requested, postage prepaid, and addressed as follows: To the Grantee: Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota 7800 Golden Valley Road Golden Valley, MN 55427 Attn: Director To the Sub-Grantee: Greater Metropolitan Housing Corporation 970 Raymond Avenue, #201 Saint Paul, MN 55114 Attn: President g. This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. All litigation regarding this Agreement shall be venued in the appropriate state or federal district court in Hennepin County, Minnesota. h. Neither party may assign or transfer its rights and obligations under this Agreement without the prior consent of the other party, provided that such party’s assignee or transferee assumes all obligations under this Agreement and the other party consents to the assignment in writing. Said agreement to assignment shall not unreasonably be withheld by the consenting party. 8. Relationship. It is agreed that nothing contained in this Agreement is intended or should be construed as creating the relationship of agents, partners, joint venturers, or associates between the parties hereto or as constituting the Sub-Grantee as the employee of the Grantee for any purpose or in any manner whatsoever. The Sub-Grantee is an independent contractor and neither it, nor its employees, agents, or representatives are employees of the Grantee. 9. MGDPA. All data collected, created, received, maintained or disseminated for any purpose in the course of the Sub-Grantee’s performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, and any other applicable state statutes, any state rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data privacy. 10. Copyrights. The Sub-Grantee certifies that it (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs or other copyrightable materials (collectively “copyrightable materials”) that are in the grant application or submitted to the Grantee as part of the grant application 132 9 process or that the Sub-Grantee is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Sub-Grantee agrees that the Grantee and Metropolitan Council have a non-exclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports and on the Internet. The Sub-Grantee also agrees that it will not hold the Grantee or Metropolitan Council responsible for the unauthorized use of the copyrightable materials by third parties. 11. Restrictions on Loans or Grants by Sub-Grantee. The Sub-Grantee shall not use the grant proceeds for loans or grants to any subrecipient at any tier unless the Sub-Grantee obtains the prior written consent of Metropolitan Council. 12. Business Subsidy Law. The Sub-Grantee must comply, if appropriate and applicable, with any “business subsidy” requirements of Minnesota Statutes, Sections 116J.993 to 116J.995, that apply to the Sub-Grantee’s expenditures or uses of the grant funds. The grant will be used for the creation of affordable housing and subsidies for affordable housing are exempt from the Business Subsidy Law. 13. Expiration and Termination. This Agreement shall automatically expire upon the expiration or termination of the Grant Agreement, or upon the satisfactory completion of all obligations hereunder, whichever occurs first (the “Expiration Date”), except that the obligations contained in Section 3(g) and (h) hereof shall survive any such expiration. This Agreement may be terminated by the Grantee for cause at any time upon fourteen (14) calendar days’ written notice to the Sub-Grantee. “For cause” shall mean a material breach of this Agreement and any amendments to this Agreement. If this Agreement is terminated prior to the Expiration Date, the Sub-Grantee shall receive payment on a pro rata basis for eligible Activities that have been completed prior to the termination. Termination of this Agreement does not alter the authority of the Grantee or Metropolitan Council to recover grant funds on the basis of a later audit or other review, and does not alter the Sub-Grantee’s obligation to return any grant funds due to the Grantee or Metropolitan Council as a result of later audits or corrections. If the Grantee or Metropolitan Council determines that the Sub-Grantee has failed to comply with the terms and conditions of this Agreement, the Grant Agreement, or the applicable provisions of Metropolitan Livable Communities Act, the Grantee may take any action to protect the interests of the Grantee or Metropolitan Council and may refuse to disburse additional grant funds and may require the Sub-Grantee to return all or part of the grant funds already disbursed. 14. Effect of Grant. Issuance of this grant neither implies any Grantee or Metropolitan Council responsibility for the condition of the Property nor imposes any obligation on the Grantee or Metropolitan Council to participate in any activities on the Property. By awarding grant funds to the Sub-Grantee for the Activities and executing this Agreement, the Grantee and Metropolitan Council assume no responsibility for (a) any damage to persons, property, or the environment caused by implementation of the Activities; or (b) determining whether intended uses of the Property identified in the grant application or potential future uses of the Property, including any residential uses, are suitable for the Property. 133 S-1 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands to this Sub-Grant Agreement as of the date and year first written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, MINNESOTA By Its Maurice Harris, Chair By Its Timothy J. Cruikshank, Executive Director 134 S-2 Execution page of the Sub-Grantee to the Sub-Grant Agreement, dated the date and year first written above. GREATER METROPOLITAN HOUSING CORPORATION By Its President By Its Vice President 135 A-1 EXHIBIT A GRANT AGREEMENT 136 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 1 of 11 Pages LHIA SG-18436 rev. 3/13/2023 GRANTEE: Housing and Redevelopment Authority in and for the City of Golden Valley GRANT NO. SG- 18424 PROJECT: Home Ownership Program for Equity GRANT AMOUNT: $ 224,000 FUNDING CYCLE: 2022 COUNCIL ACTION: January 25, 2023 EXPIRATION DATE: December 31, 2025 METROPOLITAN LIVABLE COMMUNITIES ACT GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made and entered into by the Metropolitan Council (“Council”) and the Municipality or Development Authority identified above as “Grantee.” WHEREAS, Minnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act (“LCA”) and the policies of the Council’s Metropolitan Development Guide; and WHEREAS, Minnesota Statutes sections 473.251 and 473.254 establish within the Metropolitan Livable Communities Fund a Local Housing Incentives Account and require the Council to annually distribute funds in the account to Participating Municipalities that have not met their affordable and life-cycle housing goals and are actively funding projects designed to help meet the goals, or to Development Authorities for projects located in Participating Municipalities; and WHEREAS, the Grantee is a Municipality that has negotiated affordable and life-cycle housing goals pursuant to Minnesota Statutes section 473.254, subdivision 2 and has elected to participate in the Local Housing Incentives Account program, or is a Development Authority; and WHEREAS, at its March 9, 2022 meeting the Council approved an annual LCA Fund Distribution Plan that authorized a Local Housing Incentives Account Affordable Homeownership Pilot program; and WHEREAS, the Grantee seeks funding in connection with an application for Local Housing Incentives Account Affordable Homeownership Pilot funds submitted in response to a Request for Proposals issued by the Council for the “Funding Cycle” identified above and will use the grant funds made available under this Agreement to help fund the “Project” identified in the application; and WHEREAS, the Council awarded Local Housing Incentives Account Affordable Homeownership Pilot grant program funds to the Grantee subject to any terms, conditions, and clarifications stated in its Council Action, and with the understanding that the Project identified in the application will proceed to completion in a timely manner, all grant funds will be expended prior to the “Expiration Date” identified above and Project construction will have “commenced” before the Expiration Date. NOW THEREFORE, in reliance on the above statements and in consideration of the mutual promises and covenants contained in this Agreement, the Grantee and the Council agree as follows: 137 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 2 of 11 Pages LHIA SG-18436 rev. 3/13/2023 I. DEFINITIONS 1.01. Definition of Terms. The terms defined in this section have the meanings given them in this section unless otherwise provided or indicated by the context. (a) Commenced. For the purposes of Sections 2.09 and 5.03, “commenced” means significant physical improvements have occurred in furtherance of the Project (e.g., a foundation is being constructed or other tangible work on a structure has been initiated). In the absence of significant physical improvements, visible staking, engineering, land surveying, soil testing, cleanup site investigation, or pollution cleanup activities are not evidence of Project commencement for the purposes of this Agreement. (b) Council Action. “Council Action” means the action or decision of the governing body of the Metropolitan Council, on the meeting date identified at Page 1 of this Agreement, by which the Grantee was awarded Local Housing Incentives Account Affordable Homeownership Pilot funds. (c) Development Authority. “Development Authority” means a housing and redevelopment authority, economic development authority, or port authority. (d) Metropolitan Area. “Metropolitan Area” means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (e) Municipality. “Municipality” means a statutory or home rule charter city or town in the Metropolitan Area. (f) Participating Municipality. “Participating Municipality” means a Municipality electing to participate in the Local Housing Incentives Account program under Minnesota Statutes section 473.254. (g) Project. Unless clearly indicated otherwise by the context of a specific provision of this Agreement, “Project” means the development or redevelopment project identified in the application for Local Housing Incentives Account Affordable Homeownership Pilot funds for which grant funds were requested. Grant-funded activities typically are components of the Project. II. GRANT FUNDS 2.01. Source of Funds. The grant funds made available to the Grantee under this Agreement are from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund. The grant funds are derived from property taxes authorized by Minnesota Statutes sections 473.249, 473.253 and 473.254, subdivision 5 and are not from State or federal sources. 2.02. Total Grant Amount. The Council will grant to the Grantee the “Grant Amount” identified at Page 1 of this Agreement. Notwithstanding any other provision of this Agreement, the Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to the Council, or any reduction or termination of the dollar-for-dollar match amount required under Section 2.03, may result in a like reduction in the Grant Amount made available to the Grantee. 138 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 3 of 11 Pages LHIA SG-18436 rev. 3/13/2023 2.03. Match Requirement. Pursuant to Minnesota Statutes section 473.254, subdivision 6, the Grantee shall match on a dollar-for-dollar basis the total Grant Amount received from the Council under Section 2.02. The source and amount of the dollar-for-dollar match are identified in the Project Summary attached to and incorporated into this Agreement as Attachment A. With prior approval of the Council’s grant administrator the Grantee may change the source of the required match without a formal amendment to this Agreement, provided the change of match source is memorialized in a revised Project Summary. 2.04. Authorized Use of Grant Funds. The Grant Amount made available to the Grantee under this Agreement shall be used only for the purposes and Project activities described in the application for Local Housing Incentives Account Affordable Homeownership Pilot funds. A Project summary that identifies eligible uses of the grant funds as approved by the Council is attached to and incorporated into this Agreement as Attachment A. Grant funds must be used for purposes consistent with Minnesota Statutes section 473.25(a), in a Participating Municipality. 2.05. Ineligible Uses. Grant funds must be used for costs directly associated with the specific proposed Project activities and shall not be used for “soft costs” such as: administrative overhead; travel expenses; legal fees; insurance; bonds; permits, licenses, or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. Grant funds may not be used for costs of Project activities that occurred prior to the grant award, unless specifically included in the Project Summary or otherwise approved by the Council Action. A detailed list of ineligible and eligible costs is available from the Council’s Livable Communities program office. Grant funds also shall not be used by the Grantee or others to supplant or replace: (a) grant or loan funds obtained for the Project from other sources; (b) Grantee contributions to the Project, including financial assistance, real property or other resources of the Grantee; or (c) funding or budgetary commitments made by the Grantee or others prior to the Council Action, unless specifically authorized by the Council. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee or others in the implementation or performance of the Project activities. The Grantee agrees to comply with any “business subsidy” requirements of Minnesota Statutes sections 116J.993 to 116J.995 that apply to the Grantee’s expenditures or uses of the grant funds. 2.06. [reserved] 2.07. Revolving or Deferred Loans. If consistent with the application and the Project summary or if requested in writing by the Grantee, the Grantee may use the grant funds to make deferred loans (loans made without interest or periodic payments), revolving loans (loans made with interest and periodic payments) or otherwise make the grant funds available on a “revolving” basis for the purposes of implementing the Project activities described or identified in Attachment A. The Grantee will submit annual written reports to the Council that report on the uses of the grant funds. The Council will determine the form and content of the report. This annual reporting requirement is in addition to the reporting requirements stated in Section 4.03. Notwithstanding the Expiration Date identified at Page 1 of this Agreement and referenced in Section 5.01, the Grantee will submit the annual reports until the deferred or revolving loan programs terminate, or until the Council terminates this annual reporting requirement by written notice to the Grantee. At its discretion, the Council may: (1) permit the Grantee to use loan repayments to continue supporting affordable housing components of the Project; or (2) require the Grantee to remit the grant funds to the Council. 139 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 4 of 11 Pages LHIA SG-18436 rev. 3/13/2023 2.08. Restrictions on Grants and Loans by Subrecipients. The Grantee shall not permit any subgrantee or subrecipient to use the grant funds for grants or loans to any subgrantee or subrecipient at any tier unless the Grantee obtains the prior written consent of the Council. The requirements of this Section 2.08 shall be included in all subgrant and subrecipient agreements. 2.09. Project Commencement and Changes. The Project for which grant funds were requested must be “commenced” prior to the Expiration Date. The Grantee must promptly inform the Council in writing of any significant changes to the Project for which the grant funds were awarded, as well as any potential changes to the grant-funded activities described or identified in Attachment A. Failure to inform the Council of any significant changes to the Project or significant changes to grant- funded components of the Project, and use of grant funds for ineligible or unauthorized purposes, will jeopardize the Grantee’s eligibility for future LCA awards. Grant funds will not be disbursed prior to Council approval of significant changes to either the Project or grant-funded activities described or identified in Attachment A. 2.10. Budget Variance. The Grantee may reallocate up to twenty percent (20%) of the Grant Amount among the grant-funded activities, provided: (a) the grant funds may be used only for Project activities for which the Council awarded the grant funds; (b) the reallocation does not significantly change the Project deliverables; and (c) the Grantee receives written permission from Council staff prior to reallocating any grant funds. Council staff may administratively approve budget reallocation requests that exceed twenty percent (20%) of the Grant Amount only if the reallocation does not significantly change the Project deliverables. Notwithstanding the aggregate or net effect of any variances, the Council’s obligation to provide grant funds under this Agreement shall not exceed the Grant Amount identified at Page 1 of this Agreement. 2.11. Loss of Grant Funds. The Grantee agrees to remit to the Council in a prompt manner: any unspent grant funds, including any grant funds that are not expended prior to the Expiration Date identified at Page 1 of this Agreement; any grant funds that are not used for the authorized purposes; any grant funds that are not matched on a dollar-for-dollar basis as required by Section 2.03; and any interest earnings described in Section 2.13 that are not used for the purposes of implementing the grant-funded Project activities described or identified in Attachment A. For the purposes of this Agreement, grant funds are “expended” prior to the Expiration Date if the Grantee pays or is obligated to pay for expenses of eligible grant-funded Project activities that occurred prior to the Expiration Date and the eligible expenses were incurred prior to the Expiration Date. Unspent or unused grant funds and other funds remitted to the Council shall revert to the Council’s Local Housing Incentives Account for distribution through application processes in future Funding Cycles or as otherwise permitted by law. 2.12. Payment Request Forms, Documentation, and Disbursements. The Council will disburse grant funds in response to payment requests submitted by the Grantee through the Council’s online grant management system and reviewed and approved by the Council’s authorized agent. Payment requests shall be made using payment request forms, the form and content of which will be determined by the Council. Payment request and other reporting forms will be provided to the Grantee by the Council. The Council will disburse grant funds on a reimbursement basis or a “cost incurred” basis. To obtain reimbursement under this Agreement, the Grantee shall provide the Council with evidence that the eligible grant-funded Project activities (or a portion thereof) for which reimbursement has been requested have been satisfactorily completed. The Grantee shall describe the grant-eligible activities for which reimbursement is requested and shall provide sufficient documentation of grant-eligible expenditures, invoices and payment documents, and such other information as the Council reasonably 140 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 5 of 11 Pages LHIA SG-18436 rev. 3/13/2023 requests. The Council will make the final determination whether the expenditures are eligible for reimbursement under this Agreement, and verify the total amount requested from the Council. Reimbursement of any costs does not constitute a waiver by the Council of any Grantee noncompliance with this Agreement. Payment requests must include the following documentation: Consultant/contractor invoices showing the time period covered by the invoice; the specific grant-funded Project activities conducted or completed during the authorized time period within which eligible costs may be incurred; and documentation supporting expenses including subcontractor and consultant invoices showing unit rates, quantities, and a description of the good or services provided. Subcontractor markups shall not exceed ten percent (10%). The Council shall disburse grant funds for all grant-eligible expenditures within thirty-five (35) days of the receipt of satisfactory documentation from the Grantee. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION 2.12, THE COUNCIL WILL NOT DISBURSE ANY GRANT FUNDS TO THE GRANTEE UNLESS THE PARTICIPATING MUNICIPALITY HAS ADOPTED A FAIR HOUSING POLICY AS REQUIRED BY SECTION 3.04. 2.13. Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this Agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the Project activities described or identified in Attachment A. 2.14. Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the Project site nor imposes any obligation on the Council to participate in any pollution cleanup of the Project site if such cleanup is undertaken or required. 2.15. Resale Limitations. The Grantee must impose resale limitations regarding the disposition of any equity realized by the purchasers of “affordable” units if grant funds received from the Council under this Agreement are used for homeownership affordability gap financing in the Project described or identified in Attachment A. The intent of this resale limitation is to protect the public investment in the Project and ensure that a proportion of the affordability gap provided by the public investment in the form of grant funds received from the Council is recaptured for reuse in conjunction with other affordable housing efforts and does not become a windfall for any purchaser who might sell the home prior to expiration of a predetermined resale limitation period. If a purchaser sells the “affordable” home prior to expiration of the resale limitation time period, an equitable proportion of the affordability gap filled by grant funds received from the Council under this Agreement must be recaptured by the Grantee within twenty-four (24) months of the triggering resale event and applied to a similar affordable housing project within the Participating Municipality or returned to the Council. Unless otherwise agreed to by the Council and the Grantee, the length of the resale limitation time period and the proportion of the affordability gap to be recovered will be consistent with resale limitation time periods and repayment schedules stated in the Project application. These resale limitations do not apply when the grant funds are used for homeownership value gap financing. The Grantee will provide the Council with a copy of the resale limitations the Grantee imposed on the grant-assisted affordable units, which may include copies of declarations or restrictive covenants recorded against the property. 141 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 6 of 11 Pages LHIA SG-18436 rev. 3/13/2023 III. AFFORDABILITY; AFFIRMATIVE FAIR HOUSING 3.01. Affordability Term. If the Project for which the grant funds were awarded includes affordable housing units, the Grantee shall, through written instruments or otherwise, ensure the affordable units will remain affordable for a minimum period of fifteen (15) years. The Grantee’s obligation under this section may be satisfied if other Project funding sources (e.g., the Minnesota Housing Finance Agency or the U.S. Department of Housing and Urban Development (“HUD”) or state or federal laws (e.g., low-income housing tax credit programs) require an affordability term of at least fifteen (15) years. For the purposes of this section, “affordable housing unit” means a unit that is affordable to households at eighty percent (80%) or less of the Area Median Income (“AMI”), as established by HUD, unless the Grantee’s application stated an affordability standard lower than eighty percent (80%) of AMI, in which case the Grantee’s lower affordability standard shall apply. The affordability requirements of this section shall survive the expiration or termination of this Agreement. If the affordable housing units are made available for homeownership then they are subject to the resale limitations specified in Section 2.15 and the affordability requirements of this section only apply if Council funds pay more than half of the housing unit’s affordability gap stated in the Project application. 3.02. Affirmative Fair Housing Marketing Plans. If the Project for which the grant funds were awarded is a housing project or includes housing units (whether market rate or affordable), the Grantee shall, through written instruments or otherwise, ensure the Project owner (and any subsequent owner(s)) adopts and implements an affirmative fair housing marketing plan for all Project housing units. For the purposes of this section, “affirmative fair housing marketing plan” means an affirmative fair housing marketing plan that substantially conforms to affirmative fair housing marketing plans published by the U.S. Department of Housing and Urban Development (“HUD”) or sample affirmative fair housing marketing plans published by the Minnesota Housing Finance Agency. The affirmative fair housing marketing plan requirement under this section shall continue for the minimum affordability term specified in Section 3.01 and shall survive the expiration or termination of this Agreement. 3.03. [reserved] 3.04. Fair Housing Policy. If the Project will include a housing component, the governing body of the participating Municipality must have adopted a Fair Housing Policy. For the purposes of this section, the term “Fair Housing Policy” means a written statement regarding the participating Municipality’s commitment to fair housing that substantively includes at least the following elements: a purpose statement; procedures for responding to fair housing concerns and complaints; and a designated individual or staff position responsible for fair housing issues. A best practices guide, as well as a copy of a model local fair housing policy is available at: https://metrocouncil.org/Handbook/Files/Resources/Best-Practices/Fair-Housing-Policy- Guide.aspx. IV. ACCOUNTING, AUDIT, AND REPORT REQUIREMENTS 4.01. Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of Sections 5.01 and 5.02, such accounts and records shall be kept and maintained by the Grantee for a period of six (6) years following the completion of the Project activities described or identified in Attachment A or six 142 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 7 of 11 Pages LHIA SG-18436 rev. 3/13/2023 (6) years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of grant funds received pursuant to this Agreement, the Grantee will keep proper financial records and other appropriate documentation sufficient to evidence the nature and expenditure of the dollar- for-dollar match funds required under Section 2.03. Accounting methods shall be in accordance with generally accepted accounting principles. 4.02. Audits. The above accounts and records of the Grantee shall be audited in the same manner as all other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Grantee, for a period of six (6) years following the completion of the Project activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes section 16C.05, subdivision 5, the books, records, documents and accounting procedures and practices of the Grantee that are relevant to this Agreement are subject to examination by the Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. 4.03. Reporting and Continuing Requirements. The Grantee will report to the Council on a semi- annual basis by January 31 (for the period of July 1 through December 31) and July 31 (for the period January 1 through June 30) of each calendar year during the term of this Agreement. The Grantee reports shall describe the status of the Project activities described or identified in Attachment A. The report shall also describe the Project spending for the current reporting period and projected spending for the future reporting periods. The Grantee also must complete and submit to the Council a Final Report before the final disbursement of grant funds will be approved. The form and content of the semi-annual status reports and the Final Report will be determined by the Council. These reporting requirements and the reporting requirements of Section 2.07 shall survive the expiration or termination of this Agreement. 4.04. Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the Project activities funded by this grant, and that any environmental issues have been or will be adequately addressed. V. AGREEMENT TERM 5.01. Term and Close Out. This Agreement is effective upon execution of this Agreement by the Council. Unless terminated pursuant to Section 5.02, this Agreement expires on the Expiration Date identified at Page 1 of this Agreement. The Grantee has 120 calendar days after the Expiration Date to provide documentation and information necessary to close out this Agreement and receive disbursements for eligible grant-funded Project activities as prescribed in Section 2.04. If the Grantee fails to provide necessary documentation and information during this 120-day close out period, the Grantee shall not be eligible to receive any unpaid grant funds and the Council will not disburse any unpaid grant funds to the Grantee. This 120-day close out period does not extend any Grantee reporting deadlines established in this Agreement or authorize the Grantee to expend or commit any grant funds after the Expiration Date. 5.02. Termination. This Agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days’ written notice to the Grantee. Cause shall mean a material breach of this Agreement and any amendments of this Agreement. If this Agreement is terminated prior to the Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible Project activities 143 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 8 of 11 Pages LHIA SG-18436 rev. 3/13/2023 described or identified in Attachment A that have been completed prior to the termination. Termination of this Agreement does not alter the Council’s authority to recover grant funds on the basis of a later audit or other review and does not alter the Grantee’s obligation to return any grant funds due to the Council as a result of later audits or corrections. If the Council determines the Grantee has failed to comply with the terms and conditions of this Agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council’s interests and may refuse to disburse additional grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 5.03. Amendments and Extension. The Council and the Grantee may amend this Agreement by mutual agreement. Amendments or an extension of this Agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. If the Grantee needs a change to the Project, additional time within which to complete grant-funded activities and commence the Project, a change in the budget, or a change in the grant-funded activities the Grantee must submit to the Council AT LEAST NINETY (90) CALENDAR DAYS PRIOR TO THE EXPIRATION DATE, a complete, written amendment request. All requirements must be met for a request to be considered complete. THE EXPIRATION DATE MAY BE EXTENDED, BUT THE PERIOD OF ANY EXTENSION(S) SHALL NOT EXCEED TWO (2) YEARS BEYOND THE ORIGINAL EXPIRATION DATE IDENTIFIED AT PAGE 1 OF THIS AGREEMENT. VI. GENERAL PROVISIONS 6.01. Equal Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age and will take affirmative action to ensure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 6.02. Conflict of Interest. The members, officers, and employees of the Grantee shall comply with all applicable state statutory and regulatory conflict of interest laws and provisions. 6.03. Liability. Subject to the limitations provided in Minnesota Statutes chapter 466, to the fullest extent permitted by law, the Grantee shall defend, indemnify, and hold harmless the Council and its members, employees, and agents from and against all claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Project activities funded by this grant, except to the extent the claims, damages, losses and expenses arise from the Council’s own negligence. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as amended, United States Code, Title 42, sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code, title 42, sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would exist between the Council and the Grantee. The provisions of this section shall survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicable state or federal law. 144 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 9 of 11 Pages LHIA SG-18436 rev. 3/13/2023 6.04. Acknowledgments and Signage. The Grantee will acknowledge the financial assistance provided by the Council in promotional materials, press releases, reports, and publications relating to the Project. The acknowledgment will contain the following or comparable language: Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund. Until the Project is completed, the Grantee shall ensure the above acknowledgment language, or alternative language approved by the Council’s authorized agent, is included on all signs (if any) located at Project or construction sites that identify Project funding partners or entities providing financial support for the Project. The acknowledgment and signage should refer to the “Metropolitan Council” (not “Met Council” or “Metro Council”). 6.05. Permits, Bonds, and Approvals. The Council assumes no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Project activities described or identified in Attachment A. The Grantee and its developer(s), if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. 6.06. Subgrantees, Contractors and Subcontractors. The Grantee shall include in any subgrant, contract, or subcontract for Project activities appropriate provisions to ensure subgrantee, contractor, and subcontractor compliance with all applicable state and federal laws and this Agreement. Along with such provisions, the Grantee shall require that contractors and subcontractors performing work covered by this Agreement comply with all applicable state and federal Occupational Safety and Health Act regulations. The Grantee’s subgrant agreement(s) shall expressly include the affordability and affirmative fair housing marketing plan requirements of Sections 3.01 and 3.02. 6.07. Stormwater Discharge and Water Management Plan Requirements. If any grant funds are used for urban site redevelopment, the Grantee shall at such redevelopment site meet or require to be met all applicable requirements of: (a) Federal and state laws relating to stormwater discharges including, without limitation, any applicable requirements of Code of Federal Regulations, title 40, parts 122 and 123; and (b) The Council’s 2040 Water Resources Policy Plan and the local water management plan for the jurisdiction within which the redevelopment site is located. 6.08. Authorized Agent. Payment request forms, written reports, and correspondence submitted to the Council pursuant to this Agreement shall be directed to the Authorized Agent named below or their successor through the Council’s online grants administration portal or to the below contact information: Attn: Samuel F. Johnson Metropolitan Council CD & MTS Finance and Administration 390 Robert Street North Saint Paul, Minnesota 55101-1805 samuel.johnson@metc.state.mn.us 145 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 10 of 11 Pages LHIA SG-18436 rev. 3/13/2023 6.09. Non-Assignment. Minnesota Statutes section 473.254, subdivision 6 requires the Council to distribute the grant funds to eligible “municipalities” or “development authorities” for projects in municipalities participating in the Local Housing Incentives Account program. Accordingly, this Agreement is not assignable and shall not be assigned by the Grantee. 6.10. Authorization to Reproduce Images. The Grantee certifies that the Grantee: (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs, or other copyrightable materials (collectively, “copyrightable materials”) that are in the Grantee’s application or are submitted to the Council as part of the grant application review process or after grant award, or that the Grantee is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Grantee agrees the Council has a nonexclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports, and on the internet. The Grantee also agrees the Grantee will not hold the Council responsible for the unauthorized use of the copyrightable materials by third parties. 6.11. Warranty of Legal Capacity. The individuals signing this Agreement on behalf of the Grantee and on behalf of the Council represent and warrant on the Grantee’s and the Council’s behalf respectively that the individuals are duly authorized to execute this Agreement on the Grantee’s and the Council’s behalf respectively and that this Agreement constitutes the Grantee’s and the Council’s valid, binding, and enforceable agreements. 6.12. Counterparts. This Agreement may be executed in counterpart, each of which counterpart constitutes an original, but both of which together constitute one instrument. 6.13. Electronic Signatures. The electronic signatures of the Council’s and the Grantee’s authorized representatives shall be valid as an original signature of the authorized representatives and shall be effective to bind the Council and the Grantee under this Agreement. This Agreement containing, or to which there is affixed, an electronic signature shall be deemed to: (a) be “written” or “in writing”; (b) have been signed; and (c) constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. “Electronic signature” also means a manually signed original signature that is then transmitted by any electronic means, including without limitation a faxed version of an original signature or an electronically scanned and transmitted version (e.g., via PDF) of an original signature. The Council’s or the Grantee’s failure to produce the original signature of any electronically transmitted signature shall not affect the enforceability of this Agreement. [ Remainder of Page Intentionally Left Blank. Signature Page Follows. ] 146 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 11 of 11 Pages LHIA SG-18436 rev. 3/13/2023 IN WITNESS WHEREOF, the Grantee and the Council have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective on the date of final execution by the Council. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________ Title: ______________________________ Date: July 5, 2023 By: _______________________________ Title: ______________________________ Date: July 5, 2023 METROPOLITAN COUNCIL By: _________________________________ LisaBeth Barajas, Executive Director Community Development Division Date: _______________________________ 147 ATTACHMENT A PROJECT SUMMARY This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the Project identified in the application for Local Housing Incentives Account Affordable Homeownership Pilot grant funds submitted in response to a Request for Proposals issued by the Council for the Funding Cycle identified at Page 1 of this Agreement. The summary reflects the proposed Project for which the Grantee was awarded grant funds by the Council Action, and may reflect changes in Project funding sources, changes in funding amounts, or minor changes in the proposed Project that occurred subsequent to application submission. The application is incorporated into this Agreement by reference and is made a part of this Agreement as follows. If the application or any provision in the application conflicts with or is inconsistent with the Council Action, other provisions of this Agreement, or the Project summary contained in this Attachment A, the terms, descriptions, and dollar amounts reflected in the Council Action or contained in this Agreement and the Project summary shall prevail. For the purposes of resolving conflicts or inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the Project summary; and (4) the grant application. 148 Livable Communities Project Summary Grant # SG-18436 Type: Local Housing Incentives Account Affordable Homeownership Pilot Applicant: City of Golden Valley Project Name: Home Ownership Program for Equity Project Location: City of Golden Valley Council District: District 7 – John Pacheco Jr. Project Detail Project Overview The Home Ownership Program for Equity (HOPE) will make public land available for the development of homes for affordable and equitable homeownership opportunity in the City of Golden Valley. This is the first year of the program. Twin Cities Habitat for Humanity and Greater Metropolitan Housing Corporation have applied for Minnesota Housing Impact Funds to assist in the construction of the homes. The partnership with Homes Within Reach will assist in achieving affordability at 80% AMI, potentially 60% AMI funding contingent. The homes will remain affordable for 99 years. This project will prioritize applications from organizations that have demonstrated success in building relationships of trust with Black, Indigenous, and people of color and in serving first generation homebuyers. The qualified HOPE developers have demonstrated success in serving Black, Indigenous and people of color homebuyers; Habitat serves over 80% homebuyers of color and GMHC serves 70% homebuyers of color. Development Type New Construction, Preservation Total housing units 2 homes Affordable units (AMI) All homes ≤ 60% AMI LHIA Pilot Funding LHIA $224,000 Providing LHIA Match City of Golden Valley Use of Funds General construction and rehabilitation 149 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE PROPERTY Lot 2, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota. (Abstract Property) AND That part of Tract A described below: Tract A. Lots 1, 3, and 4, Block 1, Moshou Addition, according to the plat thereof on file and of record in the office of the County Recorder in and for Hennepin County, Minnesota; which lies northerly of Line 1 described below: Line 1. Commencing at the east quarter corner of Section 30, Township 29 North, Range 24 West; thence westerly on an azimuth of 271 degrees 21 minutes 02 seconds along the east and west quarter line thereof for 2652.57 feet to the center of said Section 30; thence on an azimuth of 00 degrees 21 minutes 23 seconds for 701.35 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 284 degrees 30 minutes 39 seconds for 34.03 feet; thence on an azimuth of 230 degrees 05 minutes 25 seconds for 2.96 feet; thence on an azimuth of 230 degrees 01 minute 59 seconds for 14.00 feet; thence on an azimuth of 320 degrees 01 minute 50 seconds for 130.14 feet; thence on an azimuth of 319 degrees 50 minutes 03 seconds for 144.27 feet; thence on an azimuth of 320 degrees 28 minutes 03 seconds for 168.10 feet and there terminating. (Abstract Property) RC125-384 (JAE) 878466v1 150 SUB-GRANT AGREEMENT (Metropolitan Council Livable Communities Act Grant – Local Housing Incentives Account – Affordable Homeownership Grant Program) THIS SUB-GRANT AGREEMENT (the “Agreement”) is made as of this ___ day of _____________, 2023 (the “Effective Date”), between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, MINNESOTA, a public body corporate and politic of the State of Minnesota (the “Grantee”), and GREATER METROPOLITAN HOUSING CORPORATION, a Minnesota nonprofit cooperative (the “Sub-Grantee”). WHEREAS, the Grantee and Metropolitan Council entered into the Metropolitan Livable Communities Act Grant Agreement, effective as of January 25, 2023 (the “Grant Agreement”), a copy of which is attached hereto as EXHIBIT A and is incorporated herein and made part of this Agreement; and WHEREAS, the Grant Agreement provides that Metropolitan Council is to grant to the Grantee a sum not to exceed $112,000, which shall be used to reimburse the Sub-Grantee for the development of a new homeownership housing unit to be sold to households with incomes of no more than eighty percent (60%) of the area median income (the “Project”) on the property legally described in EXHIBIT B attached hereto (the “Property”); and WHEREAS, the Grantee and the Sub-Grantee have agreed for the Sub-Grantee to assume certain duties and responsibilities of the Grantee under the Grant Agreement in consideration of receiving funds provided for in the Grant Agreement and subject to the terms, conditions, and limitations set forth therein. NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, the parties hereto covenant and agree as follows: 1. Grant Funds. The Grantee will distribute funds received under the Grant Agreement upon the continuing compliance by the Sub-Grantee with its obligations hereunder. The Sub-Grantee shall use the grant proceeds which are being provided by the Grantee under this Agreement solely for the Project, as further specified within the Livable Communities Project Summary (attached to the Grant Agreement). The grant proceeds shall not be used for any ineligible uses as described in the Grant Agreement. The Sub-Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to Metropolitan Council from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund may result in a like reduction in the amount of the grant proceeds that will be made available to the Sub-Grantee pursuant to this Agreement. Pursuant to Section 2.08 of the Grant Agreement, the parties agree that none of the grant funds may be made available to any subgrantee or subrecipient without the prior written consent of Metropolitan Council. 2. Grantee’s Obligations. The Grantee will be responsible for reimbursing the Sub-Grantee for the costs of tree removal and demolition (the “Activities”) up to a total amount of $112,000, which will be funded from the grant proceeds received from Metropolitan Council. The Grantee will disburse funds to the Sub-Grantee pursuant to this Agreement and the Grant Agreement, based upon reimbursement requests submitted by the Sub-Grantee and reviewed and approved by the Grantee and Metropolitan Council. Reimbursement requests must be accompanied by all information and documentation needed by the Grantee pursuant to Section 2.12 of the Grant Agreement to submit a payment request form to Metropolitan Council. In order to ensure that all funds are drawn prior to the expiration of the grant, all payment requests must be received by the Grantee at least 60 days prior to the grant-term expiration date of December 31, 2025 unless extended by the Grantee in writing, otherwise any unrequested funds will be lost. The Grantee shall have no obligation to disburse any of these funds if, at the time of disbursement, the Sub-Grantee is in default under any of the terms of this Agreement. 151 2 3. Sub-Grantee’s Obligations. The Sub-Grantee shall perform and satisfy certain obligations of the Grantee under the Grant Agreement. Specifically, but without limiting the foregoing, the Sub-Grantee must perform all the following with respect to the Activities and in satisfaction of the Grant Agreement obligations: a. The Sub-Grantee will be responsible for performing all of the activities on the Property set forth in the Livable Communities Project Summary that is attached to the Grant Agreement (the “Activities”). All Activities provided by the Sub-Grantee under this Agreement must be performed to the reasonable satisfaction of the Grantee and Metropolitan Council and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Sub-Grantee will not receive payment for Activities found by the Grantee or Metropolitan Council to be reasonably unsatisfactory or performed in violation of federal, state, or local law. b. The Sub-Grantee will comply with all requirements and conditions of the Grant Agreement applicable to the Activities that, by their nature, must be performed by Sub-Grantee rather than Grantee and that are conditions of award of funds under the Grant Agreement. c. The Sub-Grantee must take all other actions as are needed to ensure compliance with the Grant Agreement and provide such information and assistance to the Grantee as may reasonably be needed to ensure the Grantee can comply with the requirements of the Grant Agreement that, by their nature, must be performed by the Grantee rather than the Sub-Grantee. d. In order to permit the Grantee and Metropolitan Council to monitor compliance with this Agreement, the Sub-Grantee shall permit any person that the Grantee or Metropolitan Council designates, at the expense of the Grantee or Metropolitan Council, to visit and inspect the Property, corporate books and financial records and documents of the Sub-Grantee as relevant to receipt and expenditure of the grant funds or this Agreement and to discuss its affairs, finances, and accounts (as they relate to receipt and expenditure of the grant funds or this Agreement) with the principal officers of Sub-Grantee, all at such reasonable times and as often as the Grantee or Metropolitan Council may reasonably request during the term of this Agreement and for a period of six (6) years after the termination of this Agreement. e. The Sub-Grantee will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. f. If the Sub-Grantee earns any interest or other income from the grant funds received from the Grantee under this Agreement, the Sub-Grantee must use the interest earnings or income only for the purposes of implementing the Activities. g. Pursuant to Section 3.01 of the Grant Agreement, because the Project includes affordable housing units, the Grantee is required to ensure that said housing units will remain “affordable,” as that term is defined in the Grant Agreement, for a minimum period of fifteen (15) years. Said obligation may be satisfied if other Project funding sources require 152 3 an affordability term of at least fifteen (15) years. If at any point it is determined that the Sub-Grantee is not participating in said program or in another state or federal program that will ensure such affordability for the period required via formal instrument, or if there is any other reason to believe that there are no instruments in place to ensure the same, as required in the Grant Agreement, the Sub-Grantee agrees that it will execute any instruments to ensure such affordability, in a form that meets the Grantee’s satisfaction. A failure to adhere to this subsection may result , at Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. h. Pursuant to Section 3.02 of the Grant Agreement, the Sub-Grantee agrees and acknowledges that it, as the Project owner, must adopt and implement an affirmative fair housing marketing plan for all housing units within the Project. To that end, the Sub- Grantee agrees that before it will be eligible for any grant funds under the terms of this Agreement, it shall adopt and implement such a plan, which shall substantially conform to affirmative fair housing marketing plans published by the U.S. Department of Housing and Urban Development (“HUD”) or sample affirmative fair housing marketing plans published by the Minnesota Housing Finance Agency. Such plan shall be made available to Grantee upon its request. A failure to adhere to this subsection may result, at the Grantee’s request, in the Sub-Grantee being required to pay back grant funds received pursuant to this Agreement. 4. Ownership and Condition of the Property. The Sub-Grantee makes the following representations: a. It is the owner of the Property in fee simple. b. To the best of the Sub-Grantee’s knowledge, the Property does not violate any applicable federal, state, or local law, ordinance, or regulation. c. There are no actions, suits, or proceedings pending, at law or in equity, or to the knowledge of the Sub-Grantee threatened, against or affecting it or the Property, and the Sub-Grantee is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority. d. The consummation of this transaction and performance of the Sub-Grantee’s obligations under this Agreement will not result in any breach of, or constitute a default under any mortgage, deed of trust, lease, bank loan, or credit agreement, partnership agreement, or other instrument which affects the Sub-Grantee, or to which the Sub-Grantee is a party. e. It has not used the Property in connection with the generation, disposal, storage, treatment, or transportation of hazardous substances and that the Property will not be so used during the term of this Agreement by the Sub-Grantee, its agents, tenants, or assigns, except in compliance with a Minnesota Pollution Control Agency (“MPCA”) approved Development Response Action Plan. f. It has obtained or caused its contractors and/or affiliates to obtain, all the insurance described in Section 5 hereof and such policies of insurance are in full force and effect as of the date of this Agreement. g. The individual(s) signing this Agreement on behalf of the Sub-Grantee are duly authorized to execute this Agreement on the Sub-Grantee’s behalf. 153 4 5. Affirmative Covenants. The Sub-Grantee hereby covenants and agrees that it shall: a. Insurance. i. Purchase and maintain such insurance, or cause its contractors and/or affiliates to purchase and maintain such insurance, as will protect it from claims which may arise out of, or result from, the Activities completed under this Agreement, whether such operations be by the Sub-Grantee or by any subcontractor, or by anyone directly employed by them, or by anyone for whose acts any one of them may be liable. ii. For the term of this Agreement and in connection with the Activities completed pursuant to this Agreement, secure the following coverages and comply with all provisions noted, or cause its contractors and/or affiliates to secure, the following coverages and comply with all provisions noted. Upon written request by Grantee, during the term of this Agreement, the Sub-Grantee will provide certificates of insurance evidencing current coverages. Commercial General Liability Insurance: $1,500,000 per occurrence $2,000,000 general aggregate $2,000,000 products/completed operations total limit $1,000,000 personal injury and advertising injury This policy shall be written on an occurrence basis using ISO form CG 00 01 or its equivalent. The Sub-Grantee represents that there is no per claim limit under the Sub-Grantee’s occurrence-based policy. Coverage shall include contractual liability and XCU. Notwithstanding the foregoing, the Sub-Grantee will obtain, or cause its contractor and/or affiliates to obtain completed operations coverage for three (3) years after substantial completion of the Activities. Upon written request by the Grantee, the Sub-Grantee is required to add, or to cause its contractors and/or affiliates to add, the Grantee and any specified officials, employees, volunteers, and agents as Additional Insureds to the Commercial General Liability and Umbrella policies fulfilling the requirements of this Agreement with respect to liabilities caused in whole or in part by the Sub-Grantee’s acts or omissions, or the acts or omissions of those acting on the Sub-Grantee’s behalf in the performance of the ongoing operations, services, and completed operations of the Sub-Grantee under this Agreement. The coverage provides shall be primary and non-contributory. Automobile Insurance: Coverage shall be provided for hired, non-owned, and owned automobiles. Minimum limits of $1,000,000 combined single limit. Workers’ Compensation and Employers’ Liability: Workers’ Compensation as required by Minnesota statutes. 154 5 Employers’ Liability Limits: $500,000/$500,000/$500,000 Professional Liability/Errors and Omissions Coverage (if applicable): Per Claim Limit: $500,000 Per Occurrence Limit: $1,500,000 Aggregate Limit: $2,000,000 This policy is to be written as acceptable to the Grantee. Certificates of Insurance must indicate if the policy is issued on a claims-made or occurrence basis. If coverage is carried on a claims-made basis, then (1) the retroactive date shall be noted on the certificate and shall be prior to or the day of the inception of this Agreement; and (2) evidence of coverage shall be provided for three (3) years beyond expiration of this Agreement. iii. The Sub-Grantee shall provide the Grantee with prior notice of any lapse in the insurance required under this Agreement including cancellation, and/or non-renewal or material change in coverage. iv. The above sub-paragraphs establish minimum insurance requirements, and it is the sole responsibility of the Sub-Grantee to purchase and maintain, or cause its contractors and/or affiliates to purchase and maintain, additional coverages as the Sub-Grantee may deem necessary in connection with this Agreement. v. The Certificate of Insurance must demonstrate that the policy is issued pursuant to these requirements. Copies of insurance policies shall be submitted to the Grantee upon written request. vi. Certificates shall specifically indicate if the policy is written with an admitted or non-admitted carrier. Best’s Rating for the insurer shall be noted on the certificate and shall not be less than an A-. b. To the fullest extent permitted by law, the Sub-Grantee shall defend, indemnify, and hold harmless the Grantee and Metropolitan Council and their officials, employees, and agents from and against all claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Activities funded by this Agreement, except to the extent the claims, damages, losses, and expenses arise from the own negligence of the Grantee or Metropolitan Council. Claims included in this indemnification include without limitation any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes, Chapter 115B (CERCLA), as amended, United States Code Title 42, Section 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code Title 42, Sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or Metropolitan Council of any immunities or limits on liability provided by Minnesota Statutes Chapter 466 or other applicable state or federal law. c. Promptly pay and discharge all taxes, assessments, and other governmental charges imposed upon it or upon its income and profits or upon the Property, and any and all claims 155 6 for labor, material or supplies or rental charges or charges of any other kind which, if unpaid, might by law become a lien or charge upon the Property, provided, however, that the Sub-Grantee shall not be required to pay any such tax, assessment, charge or claim, if the Sub-Grantee is contesting the validity of such matters, in good faith, through appropriate proceedings, and the Sub-Grantee sets aside on its books adequate reserves for the payment of such claims. d. Maintain the Property in good repair, working order, and condition and from time to time, make or cause to be made all necessary renewals, replacements, and repairs so that at all times the Sub-Grantee’s business can be conducted efficiently. e. Establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Grantee. Notwithstanding the expiration and termination provisions of this Agreement, such accounts and records shall be kept and maintained by the Sub-Grantee for a period of six (6) years following the completion of the Activities for six (6) years following the expenditure of the grant funds, whichever occurs earlier. Accounting methods shall be in accordance with generally accepted accounting principles. f. The accounts and records of the Sub-Grantee shall be audited in the same manner as all other accounts and records of the Sub-Grantee are audited and may be audited or inspected on the Sub-Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Grantee or Metropolitan Council at any time, following reasonable notification to the Sub-Grantee, for a period of six (6) years following the completion of the Activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes, Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices of the Sub-Grantee that are relevant to this Agreement are subject to examination by the Grantee and Metropolitan Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. g. The Sub-Grantee shall include in any contract or subcontract for the Activities appropriate provisions to ensure contractor or subcontractor compliance with all applicable state and federal laws and this Agreement, including, but not limited to, federal and state laws relating to stormwater discharges (i.e., Code of Federal Regulations, Title 40, parts 122 and 123 and Metropolitan Council’s 2040 Water Resources Policy Plan and the local water management plan). Along with such provisions, the Sub-Grantee shall require that contractors and subcontractors performing activities covered by this grant obtain all required permits, licenses, and certifications, and comply with all applicable state and federal Occupational Safety and Health Act regulations. h. Construct the Project to meet all applicable local codes, rehabilitation standards, ordinances, and zoning regulations. The Grantee and Metropolitan Council assume no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Activities. The Sub-Grantee and its contractors, if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. i. Acknowledge the financial assistance provided by Metropolitan Council in promotional materials, press releases, reports and publications relating to the Activities which are 156 7 funded in whole or in part with the grant funds. The acknowledgment must contain the following or comparable language: “Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund.” Until the Activities are completed, the Sub-Grantee must ensure the above acknowledgment language, or alternative language approved by the authorized agent of Metropolitan Council, is included on all signs (if any) located on the Property or construction sites. The acknowledgments and signage should refer to “Metropolitan Council” (not “Met Council” or “Metro Council”). j. Provide the Grantee with all information that is needed by the Grantee to submit the required written progress reports and annual written reports required by Section 4.03 of the Grant Agreement. 6. Negative Covenants. The Sub-Grantee covenants and agrees that for the term of this Agreement, it will not: a. Merge or consolidate with or into any other entity. b. Default upon any contract or fail to pay any contract or fail to pay any of its debts or obligations as the same mature, subject to the applicable cure periods set forth in such a contract. c. Generate, dispose of, use, store, treat, or transport hazardous waste substances on, in, over or across the Property or allow the Sub-Grantee’s tenants to do so; provided, however, that Sub-Grantee may treat or remediate hazardous substances pursuant to an MPCA-approved Development Response Action Plan and the Sub-Grantee and its tenants may use, store, and transport hazardous substances on, over or across the Property as is reasonably necessary to the use of the Property as residential, commercial, or office property provided such use, storage, and transportation complies at all times with all applicable federal, state, and local statutes, codes, regulations, and ordinances. 7. Miscellaneous. a. All representations and warranties contained herein or made in writing by or on behalf of the Sub-Grantee in connection with the transactions contemplated hereby shall be made as of the Effective Date but survive the execution and delivery of this Agreement and the advances hereunder. All statements contained in any certificate or other instrument delivered by or on behalf of the Sub-Grantee pursuant thereto or in connection with the transactions contemplated hereby shall constitute representations and warranties by the Sub-Grantee. b. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties. c. No amendment, change, waiver, or modification of this Agreement shall be valid unless it is in a written document which Sub-Grantee, and the Grantee sign, and the Grantee’s waiver of any breach or default of any of the Sub-Grantee’s obligations, agreements, or covenants under this Agreement shall not be deemed to be a waiver of any subsequent 157 8 breach of this Agreement, or any other obligation, agreement, or covenant. The Grantee’s forbearance in pursuing or enforcing a remedy for the Sub-Grantee’s breach of any of the obligations set forth in this Agreement shall not be deemed a waiver of the Grantee’s rights and remedies with respect to such breach. d. This Agreement may be executed simultaneously in two (2) or more counterparts, each of which shall be an original, but all of which shall constitute one (1) agreement. e. This Agreement supersedes and has merged into all prior oral agreements between the Grantee and the Sub-Grantee regarding the Activities. f. Any notices required or contemplated hereunder shall be effective upon the placing thereof in the United States Mail, certified mail, return receipt requested, postage prepaid, and addressed as follows: To the Grantee: Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota 7800 Golden Valley Road Golden Valley, MN 55427 Attn: Director To the Sub-Grantee: Greater Metropolitan Housing Corporation 970 Raymond Avenue, #201 Saint Paul, MN 55114 Attn: President g. This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. All litigation regarding this Agreement shall be venued in the appropriate state or federal district court in Hennepin County, Minnesota. h. Neither party may assign or transfer its rights and obligations under this Agreement without the prior consent of the other party, provided that such party’s assignee or transferee assumes all obligations under this Agreement and the other party consents to the assignment in writing. Said agreement to assignment shall not unreasonably be withheld by the consenting party. 8. Relationship. It is agreed that nothing contained in this Agreement is intended or should be construed as creating the relationship of agents, partners, joint venturers, or associates between the parties hereto or as constituting the Sub-Grantee as the employee of the Grantee for any purpose or in any manner whatsoever. The Sub-Grantee is an independent contractor and neither it, nor its employees, agents, or representatives are employees of the Grantee. 9. MGDPA. All data collected, created, received, maintained or disseminated for any purpose in the course of the Sub-Grantee’s performance of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, and any other applicable state statutes, any state rules adopted to implement the Act and statutes, as well as federal statutes and regulations on data privacy. 10. Copyrights. The Sub-Grantee certifies that it (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs or other copyrightable materials (collectively “copyrightable materials”) that are in the grant application or submitted to the Grantee as part of the grant application 158 9 process or that the Sub-Grantee is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Sub-Grantee agrees that the Grantee and Metropolitan Council have a non-exclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports and on the Internet. The Sub-Grantee also agrees that it will not hold the Grantee or Metropolitan Council responsible for the unauthorized use of the copyrightable materials by third parties. 11. Restrictions on Loans or Grants by Sub-Grantee. The Sub-Grantee shall not use the grant proceeds for loans or grants to any subrecipient at any tier unless the Sub-Grantee obtains the prior written consent of Metropolitan Council. 12. Business Subsidy Law. The Sub-Grantee must comply, if appropriate and applicable, with any “business subsidy” requirements of Minnesota Statutes, Sections 116J.993 to 116J.995, that apply to the Sub-Grantee’s expenditures or uses of the grant funds. The grant will be used for the creation of affordable housing and subsidies for affordable housing are exempt from the Business Subsidy Law. 13. Expiration and Termination. This Agreement shall automatically expire upon the expiration or termination of the Grant Agreement, or upon the satisfactory completion of all obligations hereunder, whichever occurs first (the “Expiration Date”), except that the obligations contained in Section 3(g) and (h) hereof shall survive any such expiration. This Agreement may be terminated by the Grantee for cause at any time upon fourteen (14) calendar days’ written notice to the Sub-Grantee. “For cause” shall mean a material breach of this Agreement and any amendments to this Agreement. If this Agreement is terminated prior to the Expiration Date, the Sub-Grantee shall receive payment on a pro rata basis for eligible Activities that have been completed prior to the termination. Termination of this Agreement does not alter the authority of the Grantee or Metropolitan Council to recover grant funds on the basis of a later audit or other review, and does not alter the Sub-Grantee’s obligation to return any grant funds due to the Grantee or Metropolitan Council as a result of later audits or corrections. If the Grantee or Metropolitan Council determines that the Sub-Grantee has failed to comply with the terms and conditions of this Agreement, the Grant Agreement, or the applicable provisions of Metropolitan Livable Communities Act, the Grantee may take any action to protect the interests of the Grantee or Metropolitan Council and may refuse to disburse additional grant funds and may require the Sub-Grantee to return all or part of the grant funds already disbursed. 14. Effect of Grant. Issuance of this grant neither implies any Grantee or Metropolitan Council responsibility for the condition of the Property nor imposes any obligation on the Grantee or Metropolitan Council to participate in any activities on the Property. By awarding grant funds to the Sub-Grantee for the Activities and executing this Agreement, the Grantee and Metropolitan Council assume no responsibility for (a) any damage to persons, property, or the environment caused by implementation of the Activities; or (b) determining whether intended uses of the Property identified in the grant application or potential future uses of the Property, including any residential uses, are suitable for the Property. 159 S-1 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands to this Sub-Grant Agreement as of the date and year first written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, MINNESOTA By Its Maurice Harris, Chair By Its Timothy J. Cruikshank, Executive Director 160 S-2 Execution page of the Sub-Grantee to the Sub-Grant Agreement, dated the date and year first written above. GREATER METROPOLITAN HOUSING CORPORATION By Its President By Its Vice President 161 A-1 EXHIBIT A GRANT AGREEMENT 162 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 1 of 11 Pages LHIA SG-18436 rev. 3/13/2023 GRANTEE: Housing and Redevelopment Authority in and for the City of Golden Valley GRANT NO. SG- 18424 PROJECT: Home Ownership Program for Equity GRANT AMOUNT: $ 224,000 FUNDING CYCLE: 2022 COUNCIL ACTION: January 25, 2023 EXPIRATION DATE: December 31, 2025 METROPOLITAN LIVABLE COMMUNITIES ACT GRANT AGREEMENT THIS GRANT AGREEMENT (“Agreement”) is made and entered into by the Metropolitan Council (“Council”) and the Municipality or Development Authority identified above as “Grantee.” WHEREAS, Minnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act (“LCA”) and the policies of the Council’s Metropolitan Development Guide; and WHEREAS, Minnesota Statutes sections 473.251 and 473.254 establish within the Metropolitan Livable Communities Fund a Local Housing Incentives Account and require the Council to annually distribute funds in the account to Participating Municipalities that have not met their affordable and life-cycle housing goals and are actively funding projects designed to help meet the goals, or to Development Authorities for projects located in Participating Municipalities; and WHEREAS, the Grantee is a Municipality that has negotiated affordable and life-cycle housing goals pursuant to Minnesota Statutes section 473.254, subdivision 2 and has elected to participate in the Local Housing Incentives Account program, or is a Development Authority; and WHEREAS, at its March 9, 2022 meeting the Council approved an annual LCA Fund Distribution Plan that authorized a Local Housing Incentives Account Affordable Homeownership Pilot program; and WHEREAS, the Grantee seeks funding in connection with an application for Local Housing Incentives Account Affordable Homeownership Pilot funds submitted in response to a Request for Proposals issued by the Council for the “Funding Cycle” identified above and will use the grant funds made available under this Agreement to help fund the “Project” identified in the application; and WHEREAS, the Council awarded Local Housing Incentives Account Affordable Homeownership Pilot grant program funds to the Grantee subject to any terms, conditions, and clarifications stated in its Council Action, and with the understanding that the Project identified in the application will proceed to completion in a timely manner, all grant funds will be expended prior to the “Expiration Date” identified above and Project construction will have “commenced” before the Expiration Date. NOW THEREFORE, in reliance on the above statements and in consideration of the mutual promises and covenants contained in this Agreement, the Grantee and the Council agree as follows: 163 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 2 of 11 Pages LHIA SG-18436 rev. 3/13/2023 I. DEFINITIONS 1.01. Definition of Terms. The terms defined in this section have the meanings given them in this section unless otherwise provided or indicated by the context. (a) Commenced. For the purposes of Sections 2.09 and 5.03, “commenced” means significant physical improvements have occurred in furtherance of the Project (e.g., a foundation is being constructed or other tangible work on a structure has been initiated). In the absence of significant physical improvements, visible staking, engineering, land surveying, soil testing, cleanup site investigation, or pollution cleanup activities are not evidence of Project commencement for the purposes of this Agreement. (b) Council Action. “Council Action” means the action or decision of the governing body of the Metropolitan Council, on the meeting date identified at Page 1 of this Agreement, by which the Grantee was awarded Local Housing Incentives Account Affordable Homeownership Pilot funds. (c) Development Authority. “Development Authority” means a housing and redevelopment authority, economic development authority, or port authority. (d) Metropolitan Area. “Metropolitan Area” means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (e) Municipality. “Municipality” means a statutory or home rule charter city or town in the Metropolitan Area. (f) Participating Municipality. “Participating Municipality” means a Municipality electing to participate in the Local Housing Incentives Account program under Minnesota Statutes section 473.254. (g) Project. Unless clearly indicated otherwise by the context of a specific provision of this Agreement, “Project” means the development or redevelopment project identified in the application for Local Housing Incentives Account Affordable Homeownership Pilot funds for which grant funds were requested. Grant-funded activities typically are components of the Project. II. GRANT FUNDS 2.01. Source of Funds. The grant funds made available to the Grantee under this Agreement are from the Local Housing Incentives Account of the Metropolitan Livable Communities Fund. The grant funds are derived from property taxes authorized by Minnesota Statutes sections 473.249, 473.253 and 473.254, subdivision 5 and are not from State or federal sources. 2.02. Total Grant Amount. The Council will grant to the Grantee the “Grant Amount” identified at Page 1 of this Agreement. Notwithstanding any other provision of this Agreement, the Grantee understands and agrees that any reduction or termination of Local Housing Incentives Account funds made available to the Council, or any reduction or termination of the dollar-for-dollar match amount required under Section 2.03, may result in a like reduction in the Grant Amount made available to the Grantee. 164 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 3 of 11 Pages LHIA SG-18436 rev. 3/13/2023 2.03. Match Requirement. Pursuant to Minnesota Statutes section 473.254, subdivision 6, the Grantee shall match on a dollar-for-dollar basis the total Grant Amount received from the Council under Section 2.02. The source and amount of the dollar-for-dollar match are identified in the Project Summary attached to and incorporated into this Agreement as Attachment A. With prior approval of the Council’s grant administrator the Grantee may change the source of the required match without a formal amendment to this Agreement, provided the change of match source is memorialized in a revised Project Summary. 2.04. Authorized Use of Grant Funds. The Grant Amount made available to the Grantee under this Agreement shall be used only for the purposes and Project activities described in the application for Local Housing Incentives Account Affordable Homeownership Pilot funds. A Project summary that identifies eligible uses of the grant funds as approved by the Council is attached to and incorporated into this Agreement as Attachment A. Grant funds must be used for purposes consistent with Minnesota Statutes section 473.25(a), in a Participating Municipality. 2.05. Ineligible Uses. Grant funds must be used for costs directly associated with the specific proposed Project activities and shall not be used for “soft costs” such as: administrative overhead; travel expenses; legal fees; insurance; bonds; permits, licenses, or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. Grant funds may not be used for costs of Project activities that occurred prior to the grant award, unless specifically included in the Project Summary or otherwise approved by the Council Action. A detailed list of ineligible and eligible costs is available from the Council’s Livable Communities program office. Grant funds also shall not be used by the Grantee or others to supplant or replace: (a) grant or loan funds obtained for the Project from other sources; (b) Grantee contributions to the Project, including financial assistance, real property or other resources of the Grantee; or (c) funding or budgetary commitments made by the Grantee or others prior to the Council Action, unless specifically authorized by the Council. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee or others in the implementation or performance of the Project activities. The Grantee agrees to comply with any “business subsidy” requirements of Minnesota Statutes sections 116J.993 to 116J.995 that apply to the Grantee’s expenditures or uses of the grant funds. 2.06. [reserved] 2.07. Revolving or Deferred Loans. If consistent with the application and the Project summary or if requested in writing by the Grantee, the Grantee may use the grant funds to make deferred loans (loans made without interest or periodic payments), revolving loans (loans made with interest and periodic payments) or otherwise make the grant funds available on a “revolving” basis for the purposes of implementing the Project activities described or identified in Attachment A. The Grantee will submit annual written reports to the Council that report on the uses of the grant funds. The Council will determine the form and content of the report. This annual reporting requirement is in addition to the reporting requirements stated in Section 4.03. Notwithstanding the Expiration Date identified at Page 1 of this Agreement and referenced in Section 5.01, the Grantee will submit the annual reports until the deferred or revolving loan programs terminate, or until the Council terminates this annual reporting requirement by written notice to the Grantee. At its discretion, the Council may: (1) permit the Grantee to use loan repayments to continue supporting affordable housing components of the Project; or (2) require the Grantee to remit the grant funds to the Council. 165 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 4 of 11 Pages LHIA SG-18436 rev. 3/13/2023 2.08. Restrictions on Grants and Loans by Subrecipients. The Grantee shall not permit any subgrantee or subrecipient to use the grant funds for grants or loans to any subgrantee or subrecipient at any tier unless the Grantee obtains the prior written consent of the Council. The requirements of this Section 2.08 shall be included in all subgrant and subrecipient agreements. 2.09. Project Commencement and Changes. The Project for which grant funds were requested must be “commenced” prior to the Expiration Date. The Grantee must promptly inform the Council in writing of any significant changes to the Project for which the grant funds were awarded, as well as any potential changes to the grant-funded activities described or identified in Attachment A. Failure to inform the Council of any significant changes to the Project or significant changes to grant- funded components of the Project, and use of grant funds for ineligible or unauthorized purposes, will jeopardize the Grantee’s eligibility for future LCA awards. Grant funds will not be disbursed prior to Council approval of significant changes to either the Project or grant-funded activities described or identified in Attachment A. 2.10. Budget Variance. The Grantee may reallocate up to twenty percent (20%) of the Grant Amount among the grant-funded activities, provided: (a) the grant funds may be used only for Project activities for which the Council awarded the grant funds; (b) the reallocation does not significantly change the Project deliverables; and (c) the Grantee receives written permission from Council staff prior to reallocating any grant funds. Council staff may administratively approve budget reallocation requests that exceed twenty percent (20%) of the Grant Amount only if the reallocation does not significantly change the Project deliverables. Notwithstanding the aggregate or net effect of any variances, the Council’s obligation to provide grant funds under this Agreement shall not exceed the Grant Amount identified at Page 1 of this Agreement. 2.11. Loss of Grant Funds. The Grantee agrees to remit to the Council in a prompt manner: any unspent grant funds, including any grant funds that are not expended prior to the Expiration Date identified at Page 1 of this Agreement; any grant funds that are not used for the authorized purposes; any grant funds that are not matched on a dollar-for-dollar basis as required by Section 2.03; and any interest earnings described in Section 2.13 that are not used for the purposes of implementing the grant-funded Project activities described or identified in Attachment A. For the purposes of this Agreement, grant funds are “expended” prior to the Expiration Date if the Grantee pays or is obligated to pay for expenses of eligible grant-funded Project activities that occurred prior to the Expiration Date and the eligible expenses were incurred prior to the Expiration Date. Unspent or unused grant funds and other funds remitted to the Council shall revert to the Council’s Local Housing Incentives Account for distribution through application processes in future Funding Cycles or as otherwise permitted by law. 2.12. Payment Request Forms, Documentation, and Disbursements. The Council will disburse grant funds in response to payment requests submitted by the Grantee through the Council’s online grant management system and reviewed and approved by the Council’s authorized agent. Payment requests shall be made using payment request forms, the form and content of which will be determined by the Council. Payment request and other reporting forms will be provided to the Grantee by the Council. The Council will disburse grant funds on a reimbursement basis or a “cost incurred” basis. To obtain reimbursement under this Agreement, the Grantee shall provide the Council with evidence that the eligible grant-funded Project activities (or a portion thereof) for which reimbursement has been requested have been satisfactorily completed. The Grantee shall describe the grant-eligible activities for which reimbursement is requested and shall provide sufficient documentation of grant-eligible expenditures, invoices and payment documents, and such other information as the Council reasonably 166 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 5 of 11 Pages LHIA SG-18436 rev. 3/13/2023 requests. The Council will make the final determination whether the expenditures are eligible for reimbursement under this Agreement, and verify the total amount requested from the Council. Reimbursement of any costs does not constitute a waiver by the Council of any Grantee noncompliance with this Agreement. Payment requests must include the following documentation: Consultant/contractor invoices showing the time period covered by the invoice; the specific grant-funded Project activities conducted or completed during the authorized time period within which eligible costs may be incurred; and documentation supporting expenses including subcontractor and consultant invoices showing unit rates, quantities, and a description of the good or services provided. Subcontractor markups shall not exceed ten percent (10%). The Council shall disburse grant funds for all grant-eligible expenditures within thirty-five (35) days of the receipt of satisfactory documentation from the Grantee. NOTWITHSTANDING THE PROVISIONS OF THIS SECTION 2.12, THE COUNCIL WILL NOT DISBURSE ANY GRANT FUNDS TO THE GRANTEE UNLESS THE PARTICIPATING MUNICIPALITY HAS ADOPTED A FAIR HOUSING POLICY AS REQUIRED BY SECTION 3.04. 2.13. Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this Agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the Project activities described or identified in Attachment A. 2.14. Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the Project site nor imposes any obligation on the Council to participate in any pollution cleanup of the Project site if such cleanup is undertaken or required. 2.15. Resale Limitations. The Grantee must impose resale limitations regarding the disposition of any equity realized by the purchasers of “affordable” units if grant funds received from the Council under this Agreement are used for homeownership affordability gap financing in the Project described or identified in Attachment A. The intent of this resale limitation is to protect the public investment in the Project and ensure that a proportion of the affordability gap provided by the public investment in the form of grant funds received from the Council is recaptured for reuse in conjunction with other affordable housing efforts and does not become a windfall for any purchaser who might sell the home prior to expiration of a predetermined resale limitation period. If a purchaser sells the “affordable” home prior to expiration of the resale limitation time period, an equitable proportion of the affordability gap filled by grant funds received from the Council under this Agreement must be recaptured by the Grantee within twenty-four (24) months of the triggering resale event and applied to a similar affordable housing project within the Participating Municipality or returned to the Council. Unless otherwise agreed to by the Council and the Grantee, the length of the resale limitation time period and the proportion of the affordability gap to be recovered will be consistent with resale limitation time periods and repayment schedules stated in the Project application. These resale limitations do not apply when the grant funds are used for homeownership value gap financing. The Grantee will provide the Council with a copy of the resale limitations the Grantee imposed on the grant-assisted affordable units, which may include copies of declarations or restrictive covenants recorded against the property. 167 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 6 of 11 Pages LHIA SG-18436 rev. 3/13/2023 III. AFFORDABILITY; AFFIRMATIVE FAIR HOUSING 3.01. Affordability Term. If the Project for which the grant funds were awarded includes affordable housing units, the Grantee shall, through written instruments or otherwise, ensure the affordable units will remain affordable for a minimum period of fifteen (15) years. The Grantee’s obligation under this section may be satisfied if other Project funding sources (e.g., the Minnesota Housing Finance Agency or the U.S. Department of Housing and Urban Development (“HUD”) or state or federal laws (e.g., low-income housing tax credit programs) require an affordability term of at least fifteen (15) years. For the purposes of this section, “affordable housing unit” means a unit that is affordable to households at eighty percent (80%) or less of the Area Median Income (“AMI”), as established by HUD, unless the Grantee’s application stated an affordability standard lower than eighty percent (80%) of AMI, in which case the Grantee’s lower affordability standard shall apply. The affordability requirements of this section shall survive the expiration or termination of this Agreement. If the affordable housing units are made available for homeownership then they are subject to the resale limitations specified in Section 2.15 and the affordability requirements of this section only apply if Council funds pay more than half of the housing unit’s affordability gap stated in the Project application. 3.02. Affirmative Fair Housing Marketing Plans. If the Project for which the grant funds were awarded is a housing project or includes housing units (whether market rate or affordable), the Grantee shall, through written instruments or otherwise, ensure the Project owner (and any subsequent owner(s)) adopts and implements an affirmative fair housing marketing plan for all Project housing units. For the purposes of this section, “affirmative fair housing marketing plan” means an affirmative fair housing marketing plan that substantially conforms to affirmative fair housing marketing plans published by the U.S. Department of Housing and Urban Development (“HUD”) or sample affirmative fair housing marketing plans published by the Minnesota Housing Finance Agency. The affirmative fair housing marketing plan requirement under this section shall continue for the minimum affordability term specified in Section 3.01 and shall survive the expiration or termination of this Agreement. 3.03. [reserved] 3.04. Fair Housing Policy. If the Project will include a housing component, the governing body of the participating Municipality must have adopted a Fair Housing Policy. For the purposes of this section, the term “Fair Housing Policy” means a written statement regarding the participating Municipality’s commitment to fair housing that substantively includes at least the following elements: a purpose statement; procedures for responding to fair housing concerns and complaints; and a designated individual or staff position responsible for fair housing issues. A best practices guide, as well as a copy of a model local fair housing policy is available at: https://metrocouncil.org/Handbook/Files/Resources/Best-Practices/Fair-Housing-Policy- Guide.aspx. IV. ACCOUNTING, AUDIT, AND REPORT REQUIREMENTS 4.01. Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of Sections 5.01 and 5.02, such accounts and records shall be kept and maintained by the Grantee for a period of six (6) years following the completion of the Project activities described or identified in Attachment A or six 168 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 7 of 11 Pages LHIA SG-18436 rev. 3/13/2023 (6) years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of grant funds received pursuant to this Agreement, the Grantee will keep proper financial records and other appropriate documentation sufficient to evidence the nature and expenditure of the dollar- for-dollar match funds required under Section 2.03. Accounting methods shall be in accordance with generally accepted accounting principles. 4.02. Audits. The above accounts and records of the Grantee shall be audited in the same manner as all other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee’s premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Grantee, for a period of six (6) years following the completion of the Project activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes section 16C.05, subdivision 5, the books, records, documents and accounting procedures and practices of the Grantee that are relevant to this Agreement are subject to examination by the Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. 4.03. Reporting and Continuing Requirements. The Grantee will report to the Council on a semi- annual basis by January 31 (for the period of July 1 through December 31) and July 31 (for the period January 1 through June 30) of each calendar year during the term of this Agreement. The Grantee reports shall describe the status of the Project activities described or identified in Attachment A. The report shall also describe the Project spending for the current reporting period and projected spending for the future reporting periods. The Grantee also must complete and submit to the Council a Final Report before the final disbursement of grant funds will be approved. The form and content of the semi-annual status reports and the Final Report will be determined by the Council. These reporting requirements and the reporting requirements of Section 2.07 shall survive the expiration or termination of this Agreement. 4.04. Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the Project activities funded by this grant, and that any environmental issues have been or will be adequately addressed. V. AGREEMENT TERM 5.01. Term and Close Out. This Agreement is effective upon execution of this Agreement by the Council. Unless terminated pursuant to Section 5.02, this Agreement expires on the Expiration Date identified at Page 1 of this Agreement. The Grantee has 120 calendar days after the Expiration Date to provide documentation and information necessary to close out this Agreement and receive disbursements for eligible grant-funded Project activities as prescribed in Section 2.04. If the Grantee fails to provide necessary documentation and information during this 120-day close out period, the Grantee shall not be eligible to receive any unpaid grant funds and the Council will not disburse any unpaid grant funds to the Grantee. This 120-day close out period does not extend any Grantee reporting deadlines established in this Agreement or authorize the Grantee to expend or commit any grant funds after the Expiration Date. 5.02. Termination. This Agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days’ written notice to the Grantee. Cause shall mean a material breach of this Agreement and any amendments of this Agreement. If this Agreement is terminated prior to the Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible Project activities 169 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 8 of 11 Pages LHIA SG-18436 rev. 3/13/2023 described or identified in Attachment A that have been completed prior to the termination. Termination of this Agreement does not alter the Council’s authority to recover grant funds on the basis of a later audit or other review and does not alter the Grantee’s obligation to return any grant funds due to the Council as a result of later audits or corrections. If the Council determines the Grantee has failed to comply with the terms and conditions of this Agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council’s interests and may refuse to disburse additional grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 5.03. Amendments and Extension. The Council and the Grantee may amend this Agreement by mutual agreement. Amendments or an extension of this Agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. If the Grantee needs a change to the Project, additional time within which to complete grant-funded activities and commence the Project, a change in the budget, or a change in the grant-funded activities the Grantee must submit to the Council AT LEAST NINETY (90) CALENDAR DAYS PRIOR TO THE EXPIRATION DATE, a complete, written amendment request. All requirements must be met for a request to be considered complete. THE EXPIRATION DATE MAY BE EXTENDED, BUT THE PERIOD OF ANY EXTENSION(S) SHALL NOT EXCEED TWO (2) YEARS BEYOND THE ORIGINAL EXPIRATION DATE IDENTIFIED AT PAGE 1 OF THIS AGREEMENT. VI. GENERAL PROVISIONS 6.01. Equal Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation, or age and will take affirmative action to ensure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 6.02. Conflict of Interest. The members, officers, and employees of the Grantee shall comply with all applicable state statutory and regulatory conflict of interest laws and provisions. 6.03. Liability. Subject to the limitations provided in Minnesota Statutes chapter 466, to the fullest extent permitted by law, the Grantee shall defend, indemnify, and hold harmless the Council and its members, employees, and agents from and against all claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from the conduct or implementation of the Project activities funded by this grant, except to the extent the claims, damages, losses and expenses arise from the Council’s own negligence. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as amended, United States Code, Title 42, sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code, title 42, sections 6901 et seq. This obligation shall not be construed to negate, abridge, or otherwise reduce any other right or obligation of indemnity which otherwise would exist between the Council and the Grantee. The provisions of this section shall survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicable state or federal law. 170 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 9 of 11 Pages LHIA SG-18436 rev. 3/13/2023 6.04. Acknowledgments and Signage. The Grantee will acknowledge the financial assistance provided by the Council in promotional materials, press releases, reports, and publications relating to the Project. The acknowledgment will contain the following or comparable language: Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund. Until the Project is completed, the Grantee shall ensure the above acknowledgment language, or alternative language approved by the Council’s authorized agent, is included on all signs (if any) located at Project or construction sites that identify Project funding partners or entities providing financial support for the Project. The acknowledgment and signage should refer to the “Metropolitan Council” (not “Met Council” or “Metro Council”). 6.05. Permits, Bonds, and Approvals. The Council assumes no responsibility for obtaining any applicable local, state, or federal licenses, permits, bonds, authorizations, or approvals necessary to perform or complete the Project activities described or identified in Attachment A. The Grantee and its developer(s), if any, must comply with all applicable licensing, permitting, bonding, authorization, and approval requirements of federal, state, and local governmental and regulatory agencies, including conservation districts. 6.06. Subgrantees, Contractors and Subcontractors. The Grantee shall include in any subgrant, contract, or subcontract for Project activities appropriate provisions to ensure subgrantee, contractor, and subcontractor compliance with all applicable state and federal laws and this Agreement. Along with such provisions, the Grantee shall require that contractors and subcontractors performing work covered by this Agreement comply with all applicable state and federal Occupational Safety and Health Act regulations. The Grantee’s subgrant agreement(s) shall expressly include the affordability and affirmative fair housing marketing plan requirements of Sections 3.01 and 3.02. 6.07. Stormwater Discharge and Water Management Plan Requirements. If any grant funds are used for urban site redevelopment, the Grantee shall at such redevelopment site meet or require to be met all applicable requirements of: (a) Federal and state laws relating to stormwater discharges including, without limitation, any applicable requirements of Code of Federal Regulations, title 40, parts 122 and 123; and (b) The Council’s 2040 Water Resources Policy Plan and the local water management plan for the jurisdiction within which the redevelopment site is located. 6.08. Authorized Agent. Payment request forms, written reports, and correspondence submitted to the Council pursuant to this Agreement shall be directed to the Authorized Agent named below or their successor through the Council’s online grants administration portal or to the below contact information: Attn: Samuel F. Johnson Metropolitan Council CD & MTS Finance and Administration 390 Robert Street North Saint Paul, Minnesota 55101-1805 samuel.johnson@metc.state.mn.us 171 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 10 of 11 Pages LHIA SG-18436 rev. 3/13/2023 6.09. Non-Assignment. Minnesota Statutes section 473.254, subdivision 6 requires the Council to distribute the grant funds to eligible “municipalities” or “development authorities” for projects in municipalities participating in the Local Housing Incentives Account program. Accordingly, this Agreement is not assignable and shall not be assigned by the Grantee. 6.10. Authorization to Reproduce Images. The Grantee certifies that the Grantee: (a) is the owner of any renderings, images, perspectives, sections, diagrams, photographs, or other copyrightable materials (collectively, “copyrightable materials”) that are in the Grantee’s application or are submitted to the Council as part of the grant application review process or after grant award, or that the Grantee is fully authorized to grant permissions regarding the copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights of others. The Grantee agrees the Council has a nonexclusive royalty-free license and all necessary permissions to reproduce and publish the copyrightable materials for noncommercial purposes, including but not limited to press releases, presentations, reports, and on the internet. The Grantee also agrees the Grantee will not hold the Council responsible for the unauthorized use of the copyrightable materials by third parties. 6.11. Warranty of Legal Capacity. The individuals signing this Agreement on behalf of the Grantee and on behalf of the Council represent and warrant on the Grantee’s and the Council’s behalf respectively that the individuals are duly authorized to execute this Agreement on the Grantee’s and the Council’s behalf respectively and that this Agreement constitutes the Grantee’s and the Council’s valid, binding, and enforceable agreements. 6.12. Counterparts. This Agreement may be executed in counterpart, each of which counterpart constitutes an original, but both of which together constitute one instrument. 6.13. Electronic Signatures. The electronic signatures of the Council’s and the Grantee’s authorized representatives shall be valid as an original signature of the authorized representatives and shall be effective to bind the Council and the Grantee under this Agreement. This Agreement containing, or to which there is affixed, an electronic signature shall be deemed to: (a) be “written” or “in writing”; (b) have been signed; and (c) constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. “Electronic signature” also means a manually signed original signature that is then transmitted by any electronic means, including without limitation a faxed version of an original signature or an electronically scanned and transmitted version (e.g., via PDF) of an original signature. The Council’s or the Grantee’s failure to produce the original signature of any electronically transmitted signature shall not affect the enforceability of this Agreement. [ Remainder of Page Intentionally Left Blank. Signature Page Follows. ] 172 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 11 of 11 Pages LHIA SG-18436 rev. 3/13/2023 IN WITNESS WHEREOF, the Grantee and the Council have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective on the date of final execution by the Council. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________ Title: Chair By: _______________________________ Title: Executive Director Date: July 5, 2023 METROPOLITAN COUNCIL By: _________________________________ LisaBeth Barajas, Executive Director Community Development Division Date: _______________________________ 173 ATTACHMENT A PROJECT SUMMARY This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the Project identified in the application for Local Housing Incentives Account Affordable Homeownership Pilot grant funds submitted in response to a Request for Proposals issued by the Council for the Funding Cycle identified at Page 1 of this Agreement. The summary reflects the proposed Project for which the Grantee was awarded grant funds by the Council Action, and may reflect changes in Project funding sources, changes in funding amounts, or minor changes in the proposed Project that occurred subsequent to application submission. The application is incorporated into this Agreement by reference and is made a part of this Agreement as follows. If the application or any provision in the application conflicts with or is inconsistent with the Council Action, other provisions of this Agreement, or the Project summary contained in this Attachment A, the terms, descriptions, and dollar amounts reflected in the Council Action or contained in this Agreement and the Project summary shall prevail. For the purposes of resolving conflicts or inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the Project summary; and (4) the grant application. 174 Livable Communities Project Summary Grant # SG-18436 Type: Local Housing Incentives Account Affordable Homeownership Pilot Applicant: City of Golden Valley Project Name: Home Ownership Program for Equity Project Location: City of Golden Valley Council District: District 7 – John Pacheco Jr. Project Detail Project Overview The Home Ownership Program for Equity (HOPE) will make public land available for the development of homes for affordable and equitable homeownership opportunity in the City of Golden Valley. This is the first year of the program. Twin Cities Habitat for Humanity and Greater Metropolitan Housing Corporation have applied for Minnesota Housing Impact Funds to assist in the construction of the homes. The partnership with Homes Within Reach will assist in achieving affordability at 80% AMI, potentially 60% AMI funding contingent. The homes will remain affordable for 99 years. This project will prioritize applications from organizations that have demonstrated success in building relationships of trust with Black, Indigenous, and people of color and in serving first generation homebuyers. The qualified HOPE developers have demonstrated success in serving Black, Indigenous and people of color homebuyers; Habitat serves over 80% homebuyers of color and GMHC serves 70% homebuyers of color. Development Type New Construction, Preservation Total housing units 2 homes Affordable units (AMI) All homes ≤ 60% AMI LHIA Pilot Funding LHIA $224,000 Providing LHIA Match City of Golden Valley Use of Funds General construction and rehabilitation 175 B-1 EXHIBIT B LEGAL DESCRIPTION OF THE PROPERTY The North 158.8 feet of Lot 4, Block 3, Tralee, according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 434516 and 434517. 176 EXECUTIVE SUMMARY Community Development 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting July 5, 2023 Agenda Item 4.B. Adopt HRA Resolution No. 23-11 Authorizing City Staff to Apply to the Minnesota Housing Community Impact Fund for the Home Ownership Program for Equity Prepared By Cherie Shoquist, Housing and Economic Development Manager Summary The City Council approved the Public Land Disposition Ordinance on December 21, 2021. The Housing and Redevelopment Authority received and filed the City property inventory and recommendations on March 15, 2022. The HRA identified 1605 Douglas Drive North, 4707 Circle Down, and 208 Meander Road for development of affordable homes. An information and engagement meeting with potential developers and other stakeholders was held on May 31, 2022. The HRA approved the Home Ownership Program for Equity (HOPE) Guidelines and Request for Qualifications (RFQ) on June 21, 2022. The RFQ was released on June 22, 2022, and an information session was held with interested developers on June 29, 2022. Qualifications were due on July 22, 2022. The HRA discussed the response to the RFQ at the August 10, 2022, Work Session. Contingent on the ability of the developers to successfully compete for development gap funds, the HRA approved the qualified developers at the August 16, 2022 Special Session. The State of Minnesota awarded a record breaking $1 Billion in funding for affordable housing in 2023. Minnesota Housing encourages the Golden Valley HRA to apply for Community Housing Impact Fund funds for all of the current and future City owned properties as suitable for affordable housing development by the Public Land Disposition Policy and as part of the Home Ownership Program for Equity. Staff intends to apply for Impact Fund resources for the four properties approved for HOPE Round 2: 1611 Lilac Drive N: Greater Metropolitan Housing Corporation to develop 4 units; 2 duplexes 1131 Lilac Drive N: Magnolia Homes, LLC to develop a duplex 1211 Lilac Drive N: Twin Cities Habitat for Humanity to develop 1-2 units; either a single family home or a duplex 504 Lilac Drive N: Twin Cities Habitat for Humanity to develop 1 unit; a single family home Additionally, staff will apply for Impact Funds for the remaining City owned properties and any future acquisitions with development potential. If funds are awarded, the HRA would have up to 5 years issue a Request for Qualification or Request for Proposals to select developers and for the developers to construct HOPE homes. 177 Financial or Budget Considerations None known at this time, but if we are awarded the Impact Funds the land write down would be necessary. Legal Considerations None at this time. Equity Considerations The Home Ownership Program for Equity meets the City’s goals to preserve and promote economically diverse housing options in our community by creating high quality housing in Golden Valley for households with a variety of income levels, ages, and sizes. Dedicated publicly owned land for more affordable housing for homeownership is a valuable resource to meet our affordable housing goals. HOPE recognizes that 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. Cities must also be more inclusive of Black Indigenous and People of Color populations by creating opportunities and resources for housing that are accessible at all affordability levels. Given existing racial disparities in housing, providing both affordable rental and homeownership opportunity is not only vital to providing all individuals and families with housing choice, but also with access to stable housing that impacts their health, education, employment, and ability to build wealth. Recommended Action Motion to Adopt HRA Resolution No. 23-11 Authorizing the City to submit the Community Impact Fund Application to Minnesota Housing for the Home Ownership Program for Equity. Supporting Documents HRA Resolution No. 23-11 Impact Fund HOPE Properties Location Map 178 RESOLUTION NO. 23-11 A RESOLUTION APPROVING THE COMMUNITY HOUSING IMPACT FUND APPLICATION TO MINNESOTA HOUSING FOR THE HOME OWNERSHIP PROGRAM FOR EQUITY (HOPE) WHEREAS, the goal of the Minnesota Housing Community Housing Impact Fund is to increase the supply of affordable, owner-occupied, single family housing, while maintaining the safety and habitability of existing owner-occupied, single family homes in communities throughout Minnesota. WHEREAS,the Housing and Redevelopment Authority has elected to participate in the competitive Request for Proposal Process of the Minnesota Housing Community Housing Impact Fund to provide funding for affordable housing development; and WHEREAS, the City established Public Land Disposition Policy and the HRA established the Home Ownership Program for Equity to make City owned lots available for affordable and equitable homeownership development by providing a land write down and transfer for $1; 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 70-80 179 percent and are greater than the city and or region’s homeownership rates for those same groups; and 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 40 to 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 Community Housing Impact Fund 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 the Housing and Redevelopment Authority in and for the City of Golden Valley supports the application to Minnesota Housing for Community Housing Impact Fund funds for the Home Ownership Program for Equity. Passed by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota this 5th day of July 2023. ____________________________ Maurice Harris, HRA Chair ATTEST: ______________________________ Timothy J. 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vdPaisleyLnPaisleyLn Alley AlleyH ig h w a y 1 0 0Highway 169I n t e r s t a t e -3 9 4 / H i g h w a y 1 2 In ters ta te-3 9 4 / H ig h w ay 1 2 Highway 55 / Olson Memorial HighwayHighway 55 / Olson Memorial Highway H ig h w a y 5 5 / O ls o n M e m o r ia l H ig h w a y !( !( !( !( !( !( !( !( !( !( !( !( !( !( !(2 9 6 4 3 7 8 5 1 15 14 1310 11 12 0 1,800 3,600900Feet Properties withDevelopmentPotential Property !(HOPE DevelopmentProperty !(City Owned Real Property !(MnDOT ConveyanceProperty !(City Turnback Property 1) 1605 Douglas Dr N2) 1611 Lilac Dr N3) 1211 Lilac Dr N4) 1131 Lilac Dr N5) 208 Meander Rd6) 504 Lilac Dr N7) 4707 Circle Down8) 3300 Lilac Dr N9) 2415 Douglas Dr N10) 1935 Burnswick Ave N11) 1435 Douglas Dr N12) 7831 Olson Memorial Hwy13) Greenview Ln14) Ottawa Ave S15) 300 Turners Crossroad N IPrint Date: 6/22/2023Sources:-Hennepin County Surveyors Office for Property Lines (2022).-City of Golden Valley for all other layers. 181