23-10 Approve Local Housing Incentives LHIA Grant from Metropolitan Council for HOPEDocuSign Envelope ID: E553FOCB-362A4ED6-8FAA-5DO69375D546
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
DocuSign Envelope ID: E553FOCB-362A-4ED6-8FAA-5DO69375D546
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.
DocuSign Envelope ID: E553FOCB-362A-4ED6-8FAA-5DO69375D546
Passed by the Housing and Redevelopment Authority of the City of Golden Valley,
Minnesota this 5t" day of July 2023.
ocuSlgned by:rD
`1 1+ems.
Maurice T farras, HRA Chair
ATTEST:
Docu3pigneq�d by:
V
Timo y . Cruikshank, Executive Director