2025-01-14 - AGE - HRA Work Session January 14, 2025 — 6:30 PM
Golden Valley City Hall
(immediately following Council Work Session)
1.Discuss and Provide Feedback on the HOPE Program
HRA WORK SESSION AGENDA
Housing and Redevelopment Authority Work Sessions are being conducted in a hybrid format with in-
person and remote options for attending.
Remote Attendance: Members of the public may attend this meeting by streaming via Webex, or by
calling 1-415-655-0001 and entering access code 2864 210 1727 and webinar password
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Discussion Item(s)
HRA Work Session meetings have an informal, discussion-style format and are designed for the HRA to
obtain background information, consider policy alternatives, and provide general directions to staff.
No formal actions are taken at these meetings. The public is invited to attend HRA Work Session
meetings and listen to the discussion; public participation is allowed by invitation of the HRA.
City of Golden Valley HRA Work Session January 14, 2025 — 6:30 PM
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EXECUTIVE SUMMARY
Community Development
763-512-2345 / 763-512-2344 (fax)
Golden Valley Housing and Redevelopment Authority Work Session
January 14, 2025
Agenda Item
1. Discuss and Provide Feedback on the HOPE Program
Prepared By
Christine Costello, Housing & Economic Development Manager
Summary
The City of Golden Valley has supported efforts to develop affordable housing within the community,
and in June 2022, the Golden Valley Housing and Redevelopment Authority (HRA) approved the Home
Ownership Program for Equity (HOPE) Program Guidelines and Request for Qualifications. In August
2022, a Special HRA meeting was held to approve Twin Cities Habitat for Humanity as a qualified
developer for 6300 Olympia (formerly 1605 Douglas Drive) and Greater Metropolitan Housing
Corporation (GMHC) as the qualified developer for 208 Meander Road and 4707 Circle Down (both in
partnership with Homes Within Reach Land Trust), and Magnolia Homes for 1131 Lilac Drive.
Habitat for Humanity began construction in 2023 and completed construction of 6300 Olympia in the
Summer of 2024. GMHC has not begun construction on either property but has submitted a building
permit for 208 Meander. GMHC had received a variance for the parcel before proceeding. They plan
to start construction in 2025 at 4707 Circle Down following the completion of the platting of the
parcel. At this time GMHC has been focused on the merger of their organization with Dayton’s Bluff
Neighborhood Housing Services (DBNHS), which they completed recently.
Tasks that have been completed for the HOPE Program include:
Selecting qualified developers and some of the parcels they will develop
Sale of 6300 Olympia, 208 Meander, and 4707 Circle Down to qualified developers
Variance approval for 208 Meander, variance extension
Rezoning, land use map amendment, drainage and utility (D&U) easement vacation, and
preliminary plat for 4707 Circle Down
Purchase of 504 Lilac, 1611 Lilac, and 5328 Greenview Lane from MnDOT for future
development
Development agreement extensions for 208 Meander and 4707 Circle Down for construction
Since the HOPE Program was conceptualized, there have been several staff changes in Community
Development. Current staff have reviewed the program status, grant funding sources, and tasks
completed to date. In this process, it was discovered that additional due diligence work required
before construction of any housing units can begin. The due diligence work includes:
Rezoning of Lilac Drive properties to allow for duplexes as a permitted use (requires Planning
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commission and City Council public hearing process)
Initial meeting with surrounding landowners and the 2021 Housing Engagement Initiative
report revealed neighbors have no interest in seeing rezoning
Rezoning of Turners Crossroad to allow for rowhome development (requires Planning
Commission and City Council public hearing process)
2021 Housing Engagement Initiative Report revealed neighbors have no interest in
housing at this location
Administrative Comprehensive Plan amendment for approximately six parcels by the
Metropolitan Council for parcels that are rezoned and former MnDOT right-of-way that will
become parcels for development
Potential purchase of 2425 Douglas from a private developer
Four Alta Surveys for parcels that have not been surveyed yet (1425, 2415, 2425 Douglas and
300 Turners Crossroad)
Platting of approximately nine parcels to make them development ready (requires Planning
Commission and City Council process)
Payment of park dedication fee as part of the platting process
Engineering items such as easement vacations, addition of easements, adjusting lot lines,
removal of potential contaminated railroad ties, relocation of Xcel Energy utility pole and
easement, coordination/removal of items (gardens and wood piles) that have been places on
land by surrounding property owners outside of their property
Appraisals (approximately 10) of completed new homes needed as part of the MN Housing
Impact Fund
Contract for Development Agreements and sale of properties to qualified developers for one
dollar for the remaining parcels (requires HRA and City Council approval)
Monthly reporting to MN Housing for use of the grant funds
MN Housing Impact Fund grant funds for rowhomes will be required to follow State bidding
process and require qualified developers to follow all prevailing wage requirements. City staff
will be required to monitor and maintain documentation for grant program in order to receive
funding.
The estimated cost of the due diligence work needed to sell the parcels to a developer for
development is $207,012.00.
Financial or Budget Considerations
Staff recommends allocating Golden Valley’s Local Affordable Housing Aid (LAHA) and Tax Increment
Financing (TIF) funds to cover due diligence costs as shown in the table below. Other program costs
are covered by grants from the Metropolitan Council and State of Minnesota Housing Impact Fund.
Funding Source Proposed Allocation
LAHA 2024 (partial)$37,000
LAHA 2025 (estimate)$138,000
Cornerstone Creek TIF District $47,000
TOTAL $222,000
Metropolitan Council Grant
In January 2023, the City of Golden Valley was awarded $224,000 by the Metropolitan Council’s Local
Housing Incentives Account (LHIA) Affordable Homeownership Grant Program for construction of two
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new homes for homeownership. The homeowners are to have an area median income (AMI) that is
less than or equal to 60% of the AMI. The two homes that were noted in the grant application were
208 Meander and 4707 Circle Down. To date, funds have not been used because construction has not
taken place yet. The grant expires on December 31, 2025.
State of Minnesota Housing Impact Fund
The second funding source was awarded to the Golden Valley HRA in December 2023 in the amount of
$3,526,000. This funding source is for value gap funding (the difference between the total
development cost of a project and the fair market value of the property) for the construction of three
single-family homes, four duplexes, and 13 rowhomes. The Minnesota (MN) Housing Impact Fund
grant agreement was not signed until July 2024, therefore anything built prior to that date cannot use
MN Housing Impact Funds. This is the case for the house built at 6300 Olympia. Staff recommends
utilizing $100,000 from the Local Affordable Housing Aid (LAHA) 2024 allocation instead. The MN
Housing Impact Fund expires on April 27, 2027.
Local Affordable Housing Aid (LAHA)
The 2023 Minnesota Legislature initiated an increase in the sales tax in the seven-county metropolitan
area. The sales tax is administered by the Metropolitan Council and aims to fund the Local Affordable
Housing Aid (LAHA) program, which is designed to foster affordable housing development and
preservation. LAHA distributes proceeds to cities in two equal installments annually, in July and
December of each year. Golden Valley’s LAHA funds for 2024 was $137,095.15.
Funding Status to Date
To date, no Metropolitan Council or MN Housing grant funding has been expended for any sites. The
property at 6300 Olympia has always been a part of the HOPE Program; however, the construction
began before MN Housing Impact Funds were eligible to use. It has been proposed that Habitat for
Humanity would be participating in the MN Housing Impact Fund and would receive $100,000 as
participation in the HOPE Program. The home meets the definition and intent of the LAHA program
from the State. Using $100,000 from the 2024 LAHA funds would leave a remainder of approximately
$37,000 for other HOPE Program activities. Golden Valley will receive LAHA funds for 2025. The
amount is not available yet, but it is expected that the amount will be up slightly from 2024 since the
distribution factor is up slightly. When funding amounts are received for 2025 it will be shared with
the HRA.
Recommended Action
Seeking direction on completion of due diligence tasks ($207,012.00)
Feedback on public hearing process for due diligence
Supporting Documents
HOPE Program Overview
HOPE Program Site Complexities
HOPE Properties Map
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HOPE Program - City of Golden Valley Date: 01/14/2025
Round Round Round
1 1 1 1 2 2 3 3 3 3 3 3
6300 Olympia
(1605 Douglas)208 Meander Rd 4707 Circle Down 504 Lilac Drive 1131 Lilac Drive 1611 Lilac Drive 1435 Douglas Drive 1211 Lilac Drive 2415 Douglas Drive 2425 Douglas Drive
5325 Greenview Ln (2009 Unity
Ave)300 Turners Crossroads
Ownership Habitat for Humanity GMHC Quick Claim Deed to City Golden Valley HRA City of Golden Valley Golden Valley HRA City of Golden Valley City of Golden Valley City of Golden Valley Retro Companies Golden Valley HRA City of Golden Valley
Development Interest By…Habitat for Humanity GMHC GMHC Habitat for Humanity Magnolia Homes GMHC Currently none Currently none
Potentially Habitat for
Humanity
Potentially Habitat for
Humanity Currently none
Potentially Habitat for
Humanity
Proposed Housing Style Single Family Single Family Single Family Single Family 1 - Twinhome 2 - Twinhomes Single Family Twinhome Single Family
7 Units - Rowhomes or 3
Twinhomes
Rezoning Required No (R-1)No (R-1)No (R-1)No Yes ($1,000)Yes ($1,000)No Yes ($1,000)No No Yes ($1,000)Yes ($1,000)
Met Council
Comprehensive Plan
Amendment Required No No No Yes Yes Yes No Yes No No Yes Yes
Plat Cost Complete Complete $2,000 ($7,920 spent to date)6,500.00$ 6,500.00$ 6,500.00$ None 6,500.00$ 6,250.00$ 6,250.00$ 6,500.00$ 12,500.00$
County Assessor Value of
Land N/A N/A N/A N/A N/A N/A Nothing listed Nothing listed Nothing listed 440,000.00$ Nothing listed Nothing listed
Appraisal of Land ONLY N/A 175,000.00$ $165,000 to $170,000 180,000.00$ 340,000.00$ 680,000.00$
No Appraisal Done (Based
on 6300 Olympia Land
Value would be $123,730)225,000.00$
No Appraisal Done (Based
on 2425 Douglas Land
Value would be $451,233)No Appraisal Done 170,000.00$
No Appraisal Done (Based
on 1611 Lilac Land Value
would be $2,381,120)
Park Dedication Fee (6%
per City Code)N/A 10,500.00$ 10,200.00$ 10,800.00$ 20,400.00$ 40,800.00$ 7,500.00$ 13,500.00$ 27,074.00$ 11,562.20$ 10,200.00$ 142,867.00$ 305,403.20$
Appraisal on New Home
(Req'd by MN Housing
Fund)N/A 5,000.00$ 5,000.00$ 5,000.00$ 7,000.00$ 7,000.00$ 5,000.00$ 7,000.00$ 9,000.00$ 9,000.00$ 5,000.00$ 9,000.00$ 64,000.00$
Add'l Engineering Cost None None
D&U Easement Vacation on
3/19/2024 19,000.00$ 15,000.00$ None None None 20,000.00$
TOTAL COST FOR EACH
PARCEL DUE DILIGENCE
(EXCLUDES PARK
DEDICATON)
Complete $5,000.00 $7,000.00 $30,500.00 $14,500.00 $29,500.00 $5,000.00 $14,500.00 $30,762.00 $15,250.00 $32,500.00 $22,500.00 TOTAL: $207,012.00
LAHA Funds 100,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Met Council Affordable
Homeownership Grant
Program -$ 112,000.00$ 112,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Funds for general
construction and
rehabilitation of two
homes.
MN Housing Impact Fund -$ -$ -$ 135,000.00$ 49,000.00$ 98,000.00$ 135,000.00$ 49,000.00$ 675,000.00$ 675,000.00$ 135,000.00$ 1,575,000.00$
6 Units - Rowhomes or 3 Twinhomes
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HOPE Program - Complexities of Sites
1 1 1 1 2 2 3 3 3 3 3 3
6300 Olympia
(1605 Douglas)208 Meander Rd 4707 Circle Down 504 Lilac Drive 1131 Lilac Drive 1611 Lilac Drive 1435 Douglas Drive 1211 Lilac Drive 2415 Douglas Drive 2425 Douglas Drive 5325 Greenview Ln (2009 Unity Ave)300 Turners Crossroads
Complexity of Site
Built before MN
Housing Impact Fund
Grant Agreement
signed so can not use
funds for
construction.
Currently in for a
building permit and
under review
Need to obtain a release of
mortgage due to difficulty
GMHC should extend title
insurance to cover. Platting
process not finished need to
go through public hearing
process again
Restrictive covenants need to be
removed. Extra water & sewer
services to remove, wood pile may
have contaminated railroad ties.
Neighboring properties will have
to remove gardens. Also
Covenant was recorded against
property in 1948 that required
buys to build a house on the
property cost more than $10,000
within a year of the date of deed.
Property Torrens - Need to ask
Examiner of Titles for directive to
remove covenant from Certificate
of Title. Will ask for directive once
MnDOT conveys property to HRA.
Needs to connect to water
service. Landscaping from
neighbors crosses inside
of parcel. Neighborhood
opposition to rezoning
Sidelwalk/blvd easement
needed if Lilac
reconstructed in the future,
Vacate existing D&U
easement, Abandon sanitary
and sewer laterals, Connect
new sanitary with 10 ft.
easement. Adjust rear
property line neighboring
house encroachs over the
property line, Gap in
property to be corrected.
Neighborhood opposition to
rezoning
Very narrow lot for development
Steep slopes. Habitat for Humanity looked
at the parcel but passed on developing.
Neighborhood opposition to rezoning. If lilac
reconstructed a sidewalk will need to be
added. Fence corner crosses into surveyed
property, and retaining wall lies within
surveyed property
Remove temporary easement agreement. Right
of Entry for surveying work
Purchase from private property owner.
Remove existing debris and build from
the site for development. Cost
Estimate to remove existing materials
including footings and rebar could be
approximately $160,000
Need easement for sanitary on adjoining
property, Verification if sanitary service
abandoned, MCES easement on
property-no building/driveway within
area, Xcel pole and line relocation
needed for build, Vacate wall easement
surrounding property, overhead utility
lines are not in an easement
Needs to be surveyed to
determine if there are any
easement vacations needed
on the site. Including Right of
Entry to survey site. In addition,
determining if the site will need
any zoning variances to allow
for rowhomes. Neighborhood
opposition to rezoning
Round Round Round
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