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2025-06-03 - AGE - HRA Regular Meeting June 3, 2025 — 6:30 PM Golden Valley City Hall Council Chambers 1.Call to Order 2.Approval of Agenda 3.Consent Agenda Approval of Consent Agenda - All items listed under this heading are considered to be routine and will be enacted by one motion. There will be no discussion of these items unless a Commission Member so requests in which event the item will be removed from the general order of business and considered in its normal sequence on the agenda. 3.A.Approval of HRA Meeting Minutes 3.B.Approve First Amendment to the Grant Agreement with Metropolitan Council for the Local Housing Incentive Account (LHIA) Affordable Homeownership Grant Program (SG-18436) and Adopt HRA Resolution No. 25-01 Accepting the Metropolitan Council Livable Communities LHIA Grant (SG-19725) and Approve the Grant Agreement with Metropolitan Council for the Local Housing Incentive Account (LHIA) Affordable Homeownership Grant Program (SG-19725) 4.Public Hearing - None. 5.Old Business - None. 6.New Business - None. 7.Adjournment HRA REGULAR MEETING AGENDA Members of the public may attend this meeting in-person, by watching on cable channel 16, or by streaming on CCXmedia.org. The public can make in-person statements during public comment sections. Individuals may provide public hearing testimony remotely by emailing a request to the City Clerk's office at cityclerk@goldenvalleymn.gov by 3 p.m. on the day of the meeting. City of Golden Valley HRA Regular Meeting June 3, 2025 — 6:30 PM 1 City of Golden Valley HRA Regular Meeting June 3, 2025 — 6:30 PM 2 EXECUTIVE SUMMARY Legal 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting June 3, 2025 Agenda Item 3.A. Approval of HRA Meeting Minutes Prepared By Theresa Schyma, City Clerk Summary The following minutes are available to view on the City's public Laserfiche site : February 4, 2025 Regular HRA Meeting A direct link to the folder with the documents referenced above is: https://weblink.ci.golden-valley.mn.us/WebLink/Browse.aspx? id=1057510&dbid=0&repo=GoldenValley Legal Considerations This item did not require legal review. Equity Considerations This item did not require equity review. Recommended Action Motion to approve HRA meeting minutes as submitted. 3 EXECUTIVE SUMMARY Community Development 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting June 3, 2025 Agenda Item 3.B. Approve First Amendment to the Grant Agreement with Metropolitan Council for the Local Housing Incentive Account (LHIA) Affordable Homeownership Grant Program (SG-18436) and Adopt HRA Resolution No. 25-01 Accepting the Metropolitan Council Livable Communities LHIA Grant (SG- 19725) and Approve the Grant Agreement with Metropolitan Council for the Local Housing Incentive Account (LHIA) Affordable Homeownership Grant Program (SG-19725) Prepared By Christine Costello, Housing & Economic Development Manager Summary In 2023, the HRA applied for the Affordable Homeownership Grant Program under the Metropolitan Council. The program is focused on creating affordable homeownership opportunities through new construction and rehabilitation, which aligns with the City of Golden Valley's Homeownership Program for Equity (HOPE). That year, first grant agreement was approved while the second one was not . Staff have determined that an amendment is required for the first grant agreement, as described below. The second grant agreement is drafted and included for review and approval. A resolution accompanies the second grant agreement. Funds under both grants would assist with the site preparation as well as general construction of the new owner-occupied single-family and twinhomes constructed by these developers. Staff made the following requests to the Metropolitan Council for each grant: SG-18426 ($224,000 for 208 Meander and 4707 Circle Down) Requested an amendment to allow for homes to be constructed at 60% to 80% of the area median income (AMI) and match HOPE program guidelines. Allow for other affordable housing developers to construct the homes if the initial qualified developer(s) were unable to complete the work. Amend the deadline to December 2028 to allow City and HRA staff the appropriate time to complete all due diligence work in order to sell the lots to developers for construction. SG-19725 ($948,000 for 1131 and 1611 Lilac Drive) Requested an amendment to allow for homes to be constructed at 60% to 80% of the area median income (AMI) and match HOPE program guidelines. Allow for other affordable housing developers to construct the homes if the initial qualified 4 developer(s) were unable to complete the work. Allow for additional matching funding source of Minnesota Housing Impact Fund and Local Affordable Housing Aid (LAHA) in addition to land donation. Amend the deadline to December 2028 to allow City and HRA staff the appropriate time to complete all due diligence work in order to sell the lots to developers for construction. Once the HRA reviews and considers approval of the grant agreements they will go before the Metropolitan Council for final approval. Once the Metropolitan Council approves the amendments, the grant can be used by the proposed housing developers for construction of owner-occupied single family and twinhomes. Financial or Budget Considerations Both grants require a dollar-for-dollar match that is identified in each grant project summary. In July 2023, the HRA accepted and approved the $224,000 grant agreement: $112,000 to Greater Metropolitan Housing Corporation to develop a single-family home at 4707 Circle Down $112,000 to Greater Metropolitan Housing Corporation to develop a single-family home at 208 Meander Road The match is met with Minnesota Housing Impact Funds If the HRA accepts and approves the $948,000 grant agreement, funds will be allocated $316,000 to Magnolia Homes to develop one twinhome at 1131 Lilac Drive $632,000 to Greater Metropolitan Housing Corporation to develop two twinhomes at 1611 Lilac Drive The match is met with a combination of land write down, Minnesota Housing Impact Fund, and Local Affordable Housing Aid (LAHA) Legal Considerations The City Attorney has reviewed the proposed grant amendment for SG-18436 and the grant agreement for SG-19725. 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. Recommended Action Motion to Approve the First Amendment to the Grant Agreement with Metropolitan Council for the Local Housing Incentive Account (LHIA) Affordable Homeownership Grant Program (SG- 18436) in the amount of $224,000. Motion to Approve HRA Resolution No. 25-01 Accepting Metropolitan Council Local Housing Incentive Account (LHIA) Affordable Homeownership Grant and Approve Grant Agreement with Metropolitan Council. Motion to Accept and Approve the Grant Agreement with Metropolitan Council for the Local 5 Housing Incentive Account (LHIA) Affordable Homeownership Grant Program (SG-19725) in the amount of $948,000. Supporting Documents SG-18436 First Amendment and Project Update HRA Resolution No. 25-01 - Approving LHIA Grant Agreement SG-19725 SG-19725 LHIA - Agreement 6 Grant No. SG-18436 FIRST AMENDMENT OF METROPOLITAN LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT AGREEMENT THIS AGREEMENT is made and entered into by the Metropolitan Council (“Council”) and the City of Golden Valley Housing and Redevelopment Authority (“Grantee”). WHEREAS, in January 2023 the Grantee was awarded a $224,000.00 Local Housing Incentives Account Affordable Homeownership grant to help fund new constructions, preservations of 2 homes; and WHEREAS, on February 9, 2024 the Grantee and the Council entered into a grant agreement identified as Council Grant No. SG-18436 (“Agreement”) which made the grant funds available to the Grantee to help fund new constructions, preservations of 2 homes; and WHEREAS, on April 1, 2024 the Grantee requested an amendment to extend the grant term by 24 months and amend the project summary. NOW, THEREFORE, in consideration of the promises and covenants contained in this agreement, the Council and the Grantee agree to amend Grant No. SG-18436 as follows: 1. The “EXPIRATION DATE” identified at Page 1 of the Agreement and referenced in Section 4.01, Term, is changed from December 31, 2025 to December 31, 2027. 2. The Project Summary attached to Grant No. SG-18436 and referenced in, Authorized Use of Grant Funds, is deleted in its entirety and is replaced with the attached Revised Project Summary, which is incorporated into and made a part of Grant No. SG-18436. Except for this amendment, the provisions of Grant No. SG-18436 shall remain in force and effect without change. This space intentionally left blank. Signature page follows. 7 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. CITY OF GOLDEN VALLEY HRA METROPOLITAN COUNCIL By: _______________________________ By: ______________________________ LisaBeth Barajas, Executive Director Title: _____________________________ Community Development Division Date: _____________________________ Date: ____________________________ By: _______________________________ Title: _____________________________ Date: _____________________________ By: _______________________________ Title: _____________________________ Date: _____________________________ Approved as to form: By: _______________________________ Title: _____________________________ Date: _____________________________ 8 9 HRA RESOLUTION NO. 25-01 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 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 $948,000 for the development of twin homes at 1311 Lilac Drive and 1611 Lilac Drive 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 10 HRA Resolution No. 25-01 June 3, 2025 WHEREAS, HOPE will provide affordable homeownership opportunities to homebuyers with incomes between 60 and 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. Passed by the Housing and Redevelopment Authority of the City of Golden Valley, Minnesota this 3rd day of June 2025. ____________________________ Maurice Harris, HRA Chair ATTEST: ______________________________ Noah Schuchman, Executive Director 11 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 1 of 11 Pages SG-19725 rev. 12/28/23 GRANTEE: Housing and Redevelopment Authority in and for the City of Golden Valley GRANT NO. SG-19725 PROJECT: HOPE Round 2 GRANT AMOUNT: $ 948,000.00 FUNDING CYCLE: 2023 COUNCIL ACTION: January 10, 2024 EXPIRATION DATE: December 31, 2026 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: 12 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 2 of 11 Pages SG-19725 rev. 12/28/23 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. 13 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 3 of 11 Pages SG-19725 rev. 12/28/23 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 Project activities for which the Council awarded grant funds 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 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. 14 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 4 of 11 Pages SG-19725 rev. 12/28/23 2.08. Restrictions on Grants and Loans by Subrecipients. The Grantee shall not permit any subgrantee, subrecipient, or contractor 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 subgrants, subrecipient agreements, and contracts. 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 to 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 15 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 5 of 11 Pages SG-19725 rev. 12/28/23 expenditures, invoices and payment documents, and such other information as the Council reasonably 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. 16 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 6 of 11 Pages SG-19725 rev. 12/28/23 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 grant 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 17 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 7 of 11 Pages SG-19725 rev. 12/28/23 (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. Failure of the Grantee to timely execute this Agreement does not extend the Expiration Date. 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 18 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 8 of 11 Pages SG-19725 rev. 12/28/23 Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible Project activities 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, gender identity, marital status, status with regard to public assistance, familial status, 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. 19 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 9 of 11 Pages SG-19725 rev. 12/28/23 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 20 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 10 of 11 Pages SG-19725 rev. 12/28/23 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. This space intentionally left blank. Signature page follows. 21 LOCAL HOUSING INCENTIVES ACCOUNT AFFORDABLE HOMEOWNERSHIP GRANT PROGRAM Page 11 of 11 Pages SG-19725 rev. 12/28/23 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 METROPOLITAN COUNCIL AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By: _______________________________ By: _____________________________ LisaBeth Barajas, Executive Director Title: _____________________________ Community Development Division Date: _____________________________ Date: ___________________________ By: _______________________________ Title: _____________________________ Date: _____________________________ By: _______________________________ Title: _____________________________ Date: _____________________________ Approved as to form: By: _______________________________ City Attorney’s Office Date: _____________________________ 22 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. 23 Livable Communities Project Summary Grant # SG-19725 Type: LHIA Homeownership Program Applicant: Housing and Redevelopment Authority in and for the City of Golden Valley Project Name: HOPE Round 2 Project Location: 1611 & 1131 Lilac Drive, Golden Valley, MN Council District: District 8 – Anjuli Cameron Project Detail Project Overview The Home Ownership Program for Equity (HOPE) makes public land available for affordable and equitable homeownership development opportunities in the City of Golden Valley. The city will provide a land write-down as an incentive for affordable home development at 60- 80% of Area Median Income. The HRA has completed a Request for Qualification or Proposals process and will enter contracts for development with non-profit and private affordable housing developers. Proposals from organizations that have demonstrated success in building relationships of trust with Black, Indigenous and people of color and in serving first generation homebuyers are a priority. Development Team City of Golden Valley Homes within Reach Magnolia Homes Greater Metropolitan Housing Corp. (GMHC) Development Type New Recommended Number of Homes 6 Affordability Area Mean Income (AMI) 60% LHIA Award $948,000.00 Match Source City of Golden Valley HRA – Land Donation Anticipated use of funds Site preparation, general construction, interior and exterior finishing, roofing, electrical, plumbing, and/or heating 24