08-10-22 HRA Work Session Agenda
WORK SESSION AGENDA
HRA 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
(Click here) or by calling 1-415-655-0001 and entering access code 2459 362 3081. Additional
information about attending electronic meetings is available on the City website.
Pages
1. Discussion Regarding Home Ownership Program for Equity (HOPE) Qualified Developers 2-5
2. Introduction to Affordable Housing Trust Funds 6-7
3. Discussion on Proposed 2023-2024 HRA Budget and Levy for a Housing Program 8-17
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.
August 10, 2022 – 6:30 pm
Council Conference Room
Hybrid Meeting
Golden Valley HRA Work Session
August 10, 2022
Agenda Item
1. Home Ownership Program for Equity (HOPE) Qualified Developers
Prepared By
Cherie Shoquist, Housing and Economic Development Manager
Jason Zimmerman, Planning Manager
Marc Nevinski, Physical Development Director
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. Four properties were identified as available land for development of affordable
homeownership. The properties the HRA identified to move forward with single family or duplex
development are: 2415 Douglas Drive, 1605 Douglas Drive, 208 Meander Road, and 4707 Circle Down.
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 HOPE RFQ included the following:
Purpose: Provide affordable, owner-occupied, single family housing in Golden Valley. The City of
Golden Valley plans to make up to 15 publicly owned properties available primarily for affordable
single family or duplex development in the next few years. One property is suitable for a townhome
development.
Priority: 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. The City of
Golden Valley strongly supports the development of affordable housing in our city, throughout the
Metro Area, and across the State. 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. The suburban metro will benefit from the economic impact of
providing the necessary supply of affordable housing in each of our communities and by providing
affordable housing for all Black, Indigenous, people of color and lower income members of our
communities.
HRA Work Session Executive Summary
City of Golden Valley
August 10, 2022
2
Developers provided the following information:
• Project Summary
• Applicant Contact Information
• Development Experience
• Households Served
• Marketing, Outreach and Engagement
• Publically Owned Land for Development Preference
• Required Documentation
o Example Development Pro Forma
o Example plans and design renderings
o Proposed methods to insure long term affordability and build wealth and equity
Developers will provide the following required documentation prior to land sale approvals:
• Development Pro Forma
• Construction plans – floor plans/elevations/proposed lot layout
• BPO or Appraisal - Broker's price opinion that supports the sales price/completed project’s value
• Documentation of financing:
o Pre-approval letter from lender on letterhead, dated within 90 days
o Bank statements within 30 days
o Pending listing with amount of net sale proceeds expected
• Offer to Purchase
The City received qualifications from developers interested in the following properties:
• 2415 Douglas Drive
• 1605 Douglas Drive
• 208 Meander Road
• 4707 Circle Down
Greater Metropolitan Housing Corporation and Twin Cities Habitat for Humanity provided
qualifications to construct single family homes in partnership with West Hennepin Community Land
Trust on all four lots. Developers are interested in 2415 Douglas Drive as a multifamily development
however the level of density proposed does not align with the existing zoning regulations.
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. There are 14 existing
Habitat homes in Golden Valley.
HRA Work Session Executive Summary
City of Golden Valley
August 10, 2022
3
Greater Metropolitan Housing Corporation (GMHC) has been providing affordable homeownership
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. There are 15 existing GMHC homes in Golden Valley.
West Hennepin Community Land Trust – 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.
ORGANIZATION PREFERENCE
PROPERTIES
SUMMARY ESTIMATED
TDC/VALUE
GMHC/HWR 1605 Douglas Drive
2415 Douglas Drive
208 Meander Road
4707 Circle Down
a. Homeownership units: 4
b. Square Feet: 1,962
c. Bedrooms: 4
d. Bathrooms: 2
e. Garage Type: 2-car de/attached
f. Amenities:
MN Green Communities Criteria, Energy Efficient
upgrades
g. Construction timeline: Summer/Fall 2023 – early
2024
h. Sales Price Restrictions: HWR
i. Household Income/ Percent of Area Median
Income: 60% - 80% AMI (Funding Contingent)
$500,000
TCHFH/HWR 1605 Douglas Drive
208 Meander Road
2415 Douglas Drive
a. Homeownership units: 4
b. Square Feet: 1400-1600
c. Bedrooms: 3-5
d. Bathrooms: 1.5-2
e. Garage Type: 2-car de/attached
f. Amenities:
MN Green Communities Criteria, Energy Efficient
upgrades
g. Construction timeline: Summer/Fall 2023 – early
2024
h. Sales Price Restrictions: HWR
$400,000
HRA Work Session Executive Summary
City of Golden Valley
August 10, 2022
4
i. Household Income/ Percent of Area Median
Income: 60% - 80% AMI (Funding Contingent)
Staff recommends that the HRA consider qualifying the following builders and parcels, although work
remains to prepare for development:
• 208 Meander Road - Greater Metropolitan Housing Corporation
o Reguide and Rezone from Institutional I-P to R-1.
• 4707 Circle Down - Greater Metropolitan Housing Corporation
o This parcel is currently ROW. It needs to be platted, guided and zoned to R1.
• 1605 Douglas Drive - Twin Cities Habitat for Humanity
o Staff was recently made aware of discussions which occurred as part of the 2011
Douglas Drive Corridor Study, about leaving this parcel, as well as several to the south,
landscaped and undeveloped following reconstruction of the roadway. Additionally,
some access and safety concerns with the development of this parcel have been noted,
and could possibly be mitigated through site design. Conversations with TCHH and
further evaluation of the site will occur prior to the sale.
Staff does not recommend moving forward on the development of 2415 Douglas Drive at this time.
Proposals included development of either two single family homes or a 30-32 unit multifamily
development on site. Staff recommends reviewing the development potential of this site.
The HRA will consider the approval of qualified developers for specific properties at a Special HRA
Meeting on August 16. The land sales and development agreements, including building an, are
expected to be considered by the HRA in March 2023, contingent on funding awards, in order for
construction to begin in the spring of 2023. The additional work needed to prepare the lots for
development would occur between August 16 and the March 2023 HRA meeting. Public hearings will
be held as required and notice will be sent to surrounding properties.
Financial Or Budget Considerations
None
Supporting Documents
None
Golden Valley HRA Work Session
August 10, 2022
Agenda Item
2. Introduction to Affordable Housing Trust Funds
Prepared By
Cherie Shoquist, Housing and Economic Development Manager
Summary
Minnesota Statute §462C.16 provides authority for a local government to establish a housing trust
fund by ordinance. Housing Trust Funds (HTFs) are established by elected government bodies at the
city, county, or state level. They dedicate public revenues to a distinct fund that is used to address
housing needs.
Benefits of Housing Trust Funds include a dedicated and predictable funding source, leverage for
additional investment, flexibility to address community need, and the promotion of housing as a
priority.
Housing Trust Fund Loans or Grants May be Used for:
• Development, rehabilitation or financing of housing
• Rental assistance to create deeper affordability, down payment assistance, and home buyer
counseling services
• Leverage of matching funds from federal, state, county or private resources
• Administrative expenses up to 10%
Eligible Fund Sources:
• HRA Levy
• Appropriations
• Tax Increment Financing allocation
• Tax Increment Financing pooling
• Mixed Income Housing Policy payments in lieu
• Housing Revenue Bond or General Obligation Bond proceeds
• Loan repayments of principal and interest
• Investment earnings of the fund
• Grants and loans from a federal, state or private source
• Donations or gifts
• Housing-related fees
• Funds from other sources authorized by the HRA, City Council or the voters
HRA Work Session Executive Summary
City of Golden Valley
August 10, 2022
2
Considerations in Establishing a Housing Trust Fund:
• What is the Overall Goal of the HTF?
• How are Specific Needs and Priorities Determined?
• Which Funding Sources Should be Considered?
• What is a Realistic Annual Revenue Target, Based on Local Budget Dynamics?
• How Can a Local HRA Levy be Used as a Key Funding Source for the HTF?
• How Should a Budget for the HTF be Determined?
• How Can the HTF be Developed with Community Support?
• How Should an Entity be Selected to Administer the HTF?
• Who has Oversight and/or Advisory Role for the HTF?
Considerations in Determining Operations of a Housing Trust Fund:
• What Types of Uses (Projects and/or Programs) Should the HTF Support?
• Which Specific Income and Geographic Targeting Criteria Should the HTF Use?
• What Other Criteria Can be Used for Determining HTF Support?
• Who are the Eligible Applicants to the HTF?
• How Should the HTF Funds be Distributed (Form of Award)?
• What is the HTF Affordability Period and What Mechanism Can Secure it?
• How are the Results of a HTF Reported?
• How Should Planning Occur for Future HTF Revenues?
• How Can HTF Efforts be Coordinated with Other Local Housing Programs?
Next steps include HRA direction to proceed. Staff will take HRA direction under advisement and
provide more specific options for consideration in establishing an Affordable Housing Trust Fund in
Golden Valley at the November 9, 2022 HRA Work Session and potentially the December 6, 2022 HRA
Regular Meeting.
Financial Or Budget Considerations
Staff proposes using HRA levy funds allocated in 2022 ($25,000) and proposed for 2023 ($35,000) for
housing program activities to seed a housing trust fund.
Supporting Documents
None
Golden Valley HRA Work Session
August 10, 2022
Agenda Item
3. Discussion on Proposed 2023-2024 HRA Budget and Levy for a Housing Program
Prepared By
Sue Virnig, Finance Director
Summary
At the August 10 Housing and Redevelopment Authority (HRA) Work Session the HRA commissioners
will be review the 2023-2024 HRA budget. Staff will present the proposed budget and levy. The
proposed budget and levy will be presented again at the September 20 HRA meeting. Final approval of
the 2023-2024 proposed levy and budget will be sent to Hennepin County and included on the 2022
Proposed Property Tax Statement.
Financial Or Budget Considerations
The 2023 proposed tax levy for HRA will be $245,000.
Supporting Documents
• 2023-2024 Housing Budget and Levy
o 2023-2024 Housing Budget Summary (1 page)
o 9190.2023 Housing Budget (6 pages)
o 2023-2024 Housing Fund Revenue (1 page)
o 2023-2024 Housing Fund Balance (1 page)
DIVISION: Housing (016)PROGRAM: Housing (9190)
2020 2021 2022 2022 2023 2023 2024
OBJECT DESCRIPTION ACTUAL ACTUAL ADOPTED ESTIMATED CONCEPT PROPOSED CONCEPT
Personal Services
6110 Salaries-Regular Employees $0 $99,456 $125,150 $125,150 $129,285 $129,920 $133,815
6150 Employee Insurance - 26,620 32,225 32,225 33,290 35,050 31,130
6160 Retirement - 14,539 20,025 20,025 20,685 20,785 21,410
TOTAL Personal Services - 140,615 177,400 177,400 183,260 185,755 186,355
Supplies and Services
6320 Operating Supplies - - 500 500 500 500 500
6340 Professional Services 5,094 49 25,000 44,905 50,000 45,000 45,000
6344 Use of Personal Auto - - 500 500 500 500 500
6411 Conferences and Schools - 164 5,000 5,000 3,000 3,000 5,500
6413 Dues and Subscriptions - 150 2,000 2,000 2,000 2,000 2,000
TOTAL Supplies and Services 5,094 363 33,000 52,905 56,000 51,000 53,500
TOTALS 5,094 140,978 210,400 230,305 239,260 236,755 239,855
CITY OF GOLDEN VALLEY
2023 - 2024 OPERATING BUDGET
1
HOUSING Program 9190
6110 Regular Salaries
HRS Rate
2020
Actual HRS Rate
2021
Actual HRS Rate
2022
Adopted HRS Rate
2022
Estimate HRS Rate
2023
Concept HRS Rate
2023
Proposed HRS Rate
2024
Concept
Housing & Economic Development Manager 0 99,456 125,150 125,150 129,285 129,920 133,815
started 3-29-2021
$0 $0 $125,150 $125,150 $129,285 $129,920 $133,815
Description
HOUSING Program 9190
6320-Operating Supplies
2020
Actual
2021
Actual
2022
Adopted
2022
Estimate
2023
Concept
2023
Proposed
2024
Concept
Office Supplies 500 500 500 500 500
$0 $0 $500 $500 $500 $500 $500
Description
HOUSING Program 9190
6340-Professional Services
2020
Actual
2021
Actual
2022
Adopted
2022
Estimate
2023
Concept
2023
Proposed
2024
Concept
Housing Plan 5,094
Housing Study Update 19,905
Business Dashboard 1,000
Affordable Housing Trust Fund 25,000 25,000 25,000 35,000 10,000
First Time Homebuyer Program-WHALT
Revolving Loan Fund-New Construction
Revolving Loan Fund-NOAH Preservation
Misc (Title work, professional fees, etc…)49 9,000 10,000
$5,094 $49 $25,000 $44,905 $25,000 $45,000 $20,000
Description
HOUSING Program 9190
6344-Use of Personal Auto
2020
Actual
2021
Actual
2022
Adopted
2022
Estimate
2023
Concept
2023
Proposed
2024
Concept
Mileage Reimbursement - - 500 500 500 500 500
$0 $0 $500 $500 $500 $500 $500
Description
HOUSING Program 9190
6411-Conferences and Schools
2020
Actual
2021
Actual
2022
Adopted
2022
Estimate
2023
Concept
2023
Proposed
2024
Concept
Housing and Redevelopment Seminars
Economic Development Association of MN (EDAM)500 500 500 500 500 164
National Association of Housing & Redev Officials (NAHRO)500 500 500 500 500
Urban Land Institute (ULI)500 500 500 500 500
Miscellaneous 164 1,000 1,000 1,500 1,500 1,500
National Conference (EOY - EVEN Year)2,500 2,500 2,500
$0 $164 $5,000 $5,000 $3,000 $3,000 $5,500
Description
HOUSING Program 9190
6413-Dues and Subscriptions
2020
Actual
2021
Actual
2022
Adopted
2022
Estimate
2023
Concept
2023
Proposed
2024
Concept
Economic Development Association of MN (EDAM)150 200 200 200
National Association of Housing & Redev Officials (NAHRO)500 500 500
Urban Land Institute (ULI)500 500 500
Co-Star 800 800 800 1,000 1,000
Miscellaneous 1,000 1,000
$0 $150 $2,000 $2,000 $2,000 $2,000 $2,000
Description
Percent Percent Percent Percent Percent Percent Percent
Revenue Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total
Property Tax Revenues $0 0.0%$72,000 100.5%$214,000 101.7%$210,400 100.0%$250,000 102.0%$245,000 102.0%$255,000 102.0%
Allowance for Delinquencies ($3,600)($4,785)($4,900)-2.0%($4,900)-2.0%
Interest 191 100.0%(359) -0.5%$0 0.0%$0 0.0%$0 0.0%$0 0.0%$0 0.0%
Fund Balance - 0.0%- 0.0%0 0.0%0 0.0%0 0.0%0 0.0%0 0.0%
TOTALS $191 100.0%$71,641 100.0%$210,400 101.7%$210,400 100.0%$245,215 102.0%$240,100 100.0%$250,100 100.0%
CITY OF GOLDEN VALLEY
HRA HOUSING FUND
REVENUE DETAIL
Concept 2024Concept 2023Actual 2020 Actual 2021 Adopted 2022 Estimated 2022 Proposed 2023
Fund Balance @ 01/01/22 $31,454
Estimated Revenue - 2022 $210,400
Estimated Expenses - 2022 230,305
Excess of Revenue Over (Under) Expenses (19,905)
Estimated Fund Balance @ 12/31/22 $11,549
Proposed Revenue - 2023 240,100
Proposed Expenses - 2023 236,755
Excess of Revenue Over (Under) Expenses 3,345
Projected Fund Balance @ 12/31/23 $14,894
Concept Revenue - 2024 250,100
Concept Expenses - 2024 239,855
Excess of Revenue Over (Under) Expenses 10,245
Projected Fund Balance @ 12/31/24 $25,139
* Working Capital is defined as current assets minus current liabilities.
Fiscal Disparities will lower the revenue in 2022 through 2024.
CITY OF GOLDEN VALLEY
HRA HOUSING FUND
FUND BALANCE ANALYSIS *