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12-06-22 HRA Agenda December 6, 2022 — 6:30 PM Council Chambers Hybrid Meeting 1.Call to Order 1.A.Roll Call 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.Receive and File the Fourth Quarter Financial Reports 3.B.Approve Home Ownership Program for Equity (HOPE) Request for Qualifications 2023- 2024. 4.Public Hearing 5.Old Business 6.New Business 6.A.Public Comment and Adoption of the 2023-2024 Budget and 2023 Proposed Levy for a Housing Program, HRA Resolution No. 22-06 7.Adjournment HRA REGULAR MEETING AGENDA Housing and Redevelopment Authority meetings are being conducted in a hybrid format with in- person and remote options for attending, participating, and commenting. The public can make statements in this meeting during public comment sections. Remote Attendance/Comment Options: Members of the public may attend this meeting by watching on cable channel 16, streaming on CCXmedia.org, streaming via Webex, or by calling 1-415-655-0001 and entering access code 2468 282 3823. Members of the public wishing to address the Council remotely have two options: Via web stream - Stream via Webex and use the ‘raise hand’ feature during public comment sections. Via phone - Call 1-415-655-0001 and enter meeting code 2468 282 3823. Press *3 to raise your hand during public comment sections. City of Golden Valley HRA Regular Meeting December 6, 2022 — 6:30 PM 1 City of Golden Valley HRA Regular Meeting December 6, 2022 — 6:30 PM 2 EXECUTIVE SUMMARY Administrative Services 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting December 6, 2022 Agenda Item 3.A. Receive and File the Fourth Quarter Financial Reports Prepared By Sue Virnig, Finance Director Summary The quarterly financial reports - November 29, 2022 Financial or Budget Considerations The Housing Fund includes salaries/benefits and expenses outlined in the HRA budget and are for the Housing and Economic Development Manager. The December tax settlement was not received before these reports were created. Legal Considerations None Equity Considerations None Recommended Action Motion to receive and file the quarterly financial reports - November 29, 2022 Supporting Documents HRA Quarterly Financial Reports-Nov 29, 2022 3 HRA Of Golden Valley 2022 4th Quarter Financial Report 9000 9190 9300 9350 9400 9250 General Fund Housing Hwy 55/Cornerstone Winnetka North West TIF (4)Med Lk Rd Wirth #3 Cash Balance @ 09/01/2022 $168,101.93 $13,593.52 $505,939.57 $23,627.38 $1,268,545.02 $3,297.14 Add: Tax Levy (July, Dec, & Jan) Tax Increment (July, Dec & Jan) Deposit-Tarvisium Receipts: Less: Deposit Return Interfund Loan Salaries/Expenses (35,012.59) (49.25) Debt Service Payment Pay Go Note $0.00 Expenditures: Cash Balance @11/29/2022 $168,101.93 ($21,419.07)$505,939.57 $23,627.38 $1,268,545.02 $3,247.89 9190 - Housing Fund will receive property tax revenue in July, December and January for a total of $214,000. 9300 - Tax Revenue will be received in July and December. Bonds & Note are paid in February and August. 9350 - Pay Go Note is paid in February and August. Tax Revenue is received in July and December. 9400 - Tax Increment is received in July and December. Bond and Pay Go Notes are paid in February and August (3) Capital Proejcts Special Revenue 4 EXECUTIVE SUMMARY Physical Development 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting December 6, 2022 Agenda Item 3.B. Approve Home Ownership Program for Equity (HOPE) Request for Qualifications 2023-2024. Prepared By Cherie Shoquist, Housing and Economic Development Manager Myles Campbell, Planner Summary The Home Ownership Program for Equity (HOPE) program purpose is to provide affordable, owner- occupied, single-family housing in Golden Valley. The program priority is for 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. HOPE also prioritizes homebuyers with incomes at 60%-80% of Area Median Income. The land write down on City owned vacant lots leverages additional resources to deepen the affordability of the homes. Staff has identified the next four properties on the City property inventory as available land suitable for development of affordable homeownership under the Public Land Disposition Policy. These are City owned turn back properties or Minnesota Department of Transportation Properties conveyed to the City in 2017. Properties for consideration of affordable single family home development: 1611 Lilac Drive North 1211 Lilac Drive North 1121 Lilac Drive North 504 Lilac Drive North Timeline To achieve a level of affordability 60%- 80% of Area Median Income, leveraged resources from Hennepin County, Metropolitan Council and/or Minnesota Housing will be needed. The timeline for HOPE 2023-2024 anticipates HRA approval of the release of the Request for Qualified Developers in December, the Request for Qualifications to be released in January, and HRA approval of qualified developers in March 2023 in advance of the Minnesota Housing Request for Proposals release in April. This timeline prepares for construction beginning in the spring of 2024, funding contingent. Background 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 5 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. On June 21, 2022 the HRA approved the Home Ownership Program for Equity (HOPE) Program Guidelines and Request for Qualifications. On August 16, 2022 in a Special Meeting the HRA approved Twin Cities Habitat for Humanity as a qualified developer for 1605 Douglas Drive and Greater Metropolitan Housing Corporation as a qualified developer for 208 Meander Road and 4707 Circle Down both in partnership with Homes Within Reach. The homes are expected to begin construction in 2023. Financial or Budget Considerations NA Legal Considerations The HOPE Request for Qualifications and Program Guidelines were reviewed and approved by the City Attorney when the program was established June 21, 2022. Equity Considerations HOPE supports the Equity Plan Pillar 3 Providing unbiased programs and services and Pillar 4 An infrastructure that supports the advancement of diversity, equity, and inclusion. Recommended Action Motion to approve the Home Ownership Program for Equity (HOPE) Request for Qualifications 2023- 2024 for Properties for consideration of affordable single family home development: 1611 Lilac Drive, 1211 Lilac Drive, 1121 Lilac Drive, and 504 Lilac Drive. Supporting Documents HOPE RFQ and Guidelines 2023-2024 6 Home Ownership Program for Equity Request for Qualifications 2023-2024 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. At least one property is suitable for 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. Golden Valley will provide a land write down to achieve the following goals: reduce racial disparity in homeownership, build wealth, provide long term affordability, and support Disadvantaged Business Enterprises (owned, operated, employed, contracted, subcontracted). Properties included in this RFQ: 1611 Lilac Drive North 1211 Lilac Drive North 1121 Lilac Drive North 504 Lilac Drive North Please submit applications by 4:00 pm on Wednesday, February 1, 2023 electronically by email to Cherie Shoquist, Housing and Economic Development Manager, at cshoquist-henderson@goldenvalleymn.gov. The RFQ Information Session will be Tuesday January 7, 2023 from 3:00 pm – 4:00 pm at the Golden Valley City Hall Council Conference Room, Second Floor, 7800 Golden Valley Road and by Microsoft Teams. 7 HOPE Timeline: DATE ENTITY ACTION December 8, 2022 HRA Meeting Approve RFQ January 3, 2023 Staff Release RFQ January 7, 2023 Staff/Developers RFQ Information Session February 2, 2023 Developers RFQ Due February 14, 2023 HRA Work Session Review Recommended Qualified Developers March 14, 2023 HRA Meeting Approve Qualified Developers for Properties February/May 2024 HRA Work Session Review Development Agreements and Plans March/June 2024 HRA/CC Approve Development Agreements and Plans Approve Land Sale 8 HOPE Properties for Development 2023-2024 1611 Lilac Drive •.68 Acres / 29,489 SQ FT •Off Highway 100, North of Golden Valley Road •Staff Recommends 4 Townhomes •Title, zoning, and platting will be done by the City 1211 Lilac Drive •.52 Acre / 22,628 SQ FT •Off Highway 100, South of Golden Valley Road •Staff recommends a single family home, if possible •Steep slope, estimated 20 foot drop, may be water run off challenge, trees •Title, zoning, and platting will be done by the City 1131 Lilac Drive •.26 Acre / 11,216 SQ FT •Staff recommends a single family home •Off Highway 100, near Luce Line Trail •Title, zoning, and platting will be done by the City 504 Lilac Drive •.50 Acre / 21,612 SQ FT •Staff recommends a single family home •Off Highway 100 and 55 •Title, zoning, and platting will be done by the City 9 HOPE Request for Qualifications Outline 1. Project Summary a. # Homeownership units b. # Square Feet c. # Bedrooms d. # Bathrooms e. Garage Type f.Amenities g. Construction timeline h. Sales Price Restrictions i.Household Income/ Percent of Area Median Income j.Addresses of Properties 2. Applicant Contact Information a. Name b. Title c. Organization d. Address e. Email f.Phone Number 3. Development Experience a. Number of years in business b. Estimated annual production of residential units per year c. Examples of similar projects completed 4. Households Served a. Who has your organization sold to in the last 3 years? Provide the number of households served by race and ethnicity. Additionally, provide the number of households served that experience disparities in homeownership rates, for example: i. # Black/African American ii. # White, Non-Hispanic iii. # Asian/ Pacific Islander iv. # Native American v. # Latinx vi. # Multiple Races vii. # No Data/Refused viii. Total Served ix. # Household single headed with Children x. # Household with a disability xi. #Household with income at or below 60% of Area Median Income 10 5. Marketing, Outreach and Engagement The City of Golden Valley is committed to expanding housing opportunities for all people and households that experience disparities in homeownership rates. a. Describe your organization’s marketing and outreach strategies planned to reach households that experience disparities in homeownership rates, including households of color or indigenous, disabled, and/or low income populations. Be specific and include names of outreach methods (radio stations, newspapers, meetings, etc.) and why these strategies are most effective. b. Who has your organization reached in your marketing and outreach strategies in the last 3 years? Provide the estimated number of households served in the following categories. i. # Black/African American ii. # White, Non-Hispanic iii. # Asian/ Pacific Islander iv. # Native American v. # Latinx vi. # Multiple Races vii. # No Data/Refused viii. Total Served ix. # Household single headed with Children x. # Household with a disability xi. #Household with income at or below 60% of Area Median Income 6. Publicly Owned Land Available for Development a. Is there a minimum number of properties you need to be awarded to move forward? b. How many? c. List property addresses in order of preference. 7. Required Documentation for the Request For Qualifications a. Example Development Pro Forma i. Development value gap and identified resources to fill the value gap. Value Gap includes deferred loans or grants to cover the difference between the total development cost and appraised value of a unit. ii. Affordability gap and identified resources to fill the affordability gap. Affordability Gap includes deferred loans or grants to homebuyers to cover the difference between the purchase price of a home and the first mortgage for which a homebuyer qualifies. b.Example plans and design renderings c.Proposed methods to insure long term affordability and build wealth and equity 8. Required Documentations Prior to Land Sale Approvals a. Development Pro Forma b.Construction plans –floor plans/elevations/proposed lot layout c.BPO or Appraisal -Broker's price opinion that supports the sales price/completed project’s value 11 d.Documentation of financing: i.Pre-approval letter from lender on letterhead, dated within 90 days ii.Bank statements within 30 days iii.Pending listing with amount of net sale proceeds expected e.Offer to Purchase A Minnesota Housing 2022 Single Family Request for Proposals may serve as a response to this RFQ in addition to the response to 1. Project Summary and 6. Publicly Owned Land Available for Development. 12 HOPE Qualified Developer Selection Matrix STANDARD MET YES NO NOTES Project Summary Applicant Contact Information Development Experience Households Served Marketing, Outreach and Engagement Publicly Owned Land for Development Preference Required Documentation 13 Home Ownership Program for Equity Guidelines The Home Ownership Program for Equity (HOPE) will make public land available for the development of homes for affordable and equitable homeownership opportunity in the City of Golden Valley. Purpose: Provide affordable, owner-occupied, single family housing in Golden Valley. The City of Golden Valley, through its Public Land Disposition Policy, has prioritized the sale of city owned vacant property for the purpose of developing opportunities for affordable homeownership. The City will provide a land write down as an incentive for development of homes affordable at less than 115% of Area Median Income, with a priority for affordability at 80% or 60% of Area Median Income. 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. Golden Valley will provide a land write down to achieve the following goals: reduce racial disparity in homeownership, build wealth, provide long term affordability, and support Disadvantaged Business Enterprises (owned, operated, employed, contracted, subcontracted). Additional Funding Priorities: Provide long-term housing affordability and housing affordable to the local workforce; Reduce racial disparities in homeownership, build wealth and equity; Address the housing needs of underserved populations; Provide housing proximate to jobs, transportation, schools and services; and Leverage for other financial and in-kind investments. All funded projects must result in homes that are: Residential in nature; Owner-occupied; 14 Occupied by eligible homebuyers or homeowners (see program income limits); and Affordable to the local workforce (60%-80% of Area Median Income) or to homeowners with incomes at or below 115% of Area Median Income. Selection Standards:To be considered for funding the applicant must satisfy the following threshold requirements: A. Project Feasibility.This includes the extent to which reasonable development costs are proposed, how proposed development costs and subsidies compare to historical costs of similar projects, and the extent to which the proposal is economically viable. B. Organizational Capacity. This includes the applicant’s purpose and mission, related housing experience, demonstrated successful completion of similar projects, progress on current awards, organizational financial capacity and other organizational due diligence factors. C. Community Need.This includes the extent to which the proposed project addresses the well-defined community need for affordable home ownership opportunity in Golden Valley based on local demographic, workforce, market and economic factors. Additional Standards: High quality construction Code compliance Energy efficiency o Minnesota Overlay of Green Communities Criteria o Department of Energy Zero Energy Ready Homes Program Universal design Visitability and/or accessibility Fair housing and affirmative marketing Reporting and compliance Income Limits: For owner-occupied housing, the income limit includes principal, interest, property taxes and home insurance (subject to change annually). 50% AMI $59,100 60% AMI $71,000 80% AMI $94,600 100% AMI $118,200 115% AMI $136,000 15 EXECUTIVE SUMMARY Administrative Services 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Meeting December 6, 2022 Agenda Item 6.A. Public Comment and Adoption of the 2023-2024 Budget and 2023 Proposed Levy for a Housing Program, HRA Resolution No. 22-06 Prepared By Sue Virnig, Finance Director Summary At the September 20, 2022 HRA meeting a proposed 2023-2024 budget and levy payable in 2023 were approved. This item is the final consideration of the 2023-2024 Housing Fund Budget and 2023 HRA Property Tax Levy. Staff will make a presentation. Financial or Budget Considerations The HRA 2023 proposed budget is $241,000. The HRA will levy $245,000 due to the fiscal disparities and delinquencies that will reduce the amount received by the HRA. The monies are scheduled to be received in July and December. Legal Considerations MN Department of Revenue and MN Statutes outlines the process for levy certification and the Truth- in-Taxation process. Equity Considerations The proposed HRA budget was considered using an equity decision-making tool to evaluate various impacts and includes programming to advance affordable housing goals. Recommended Action Motion to Adopt HRA Resolution No. 22-06 Approving the Proposed 2023-2024 Housing and Redevelopment Budget and Adopting a Tax Levy Payable in 2023. Supporting Documents HRA Resolution No. 22-06 Adopting Proposed Budget and Establishing the Final Tax Levy Payable in 2023-2024 2023-2024 HRA Budget 16 HRA RESOLUTION NO. 22-06 ADOPTING THE HOUSING AND REDEVELOPMENT AUTHORITY 2023-2024 BUDGET AND ADOPTING TAX LEVY PAYABLE IN 2023 WHEREAS,The Golden Valley Housing and Redevelopment Authority (the “HRA”) has authorities and powers according to MN Statutes, Sections 469.001 to 469.047. MS Statutes, Section 469.033, subd. 6 grants the HRA the power to levy and collect taxes subject to a resolution of consent from the Golden Valley City Council for a set period and, WHEREAS,The Golden Valley HRA on September 20, 2022 Approved Resolution 22-05 Approving Granting Consent Intent for HRA Levy for a Housing Program, and WHEREAS,The City of Golden Valley on September 20, 2022 Approved HRA Resolution No. 22-05 Approving Granting Consent Intent for HRA Levy for a Housing Program, and WHEREAS, The HRA is requesting to adopt the proposed 2023-24 HRA budget and levy payable in 2023 and requests the City of Golden Valley approves Intent for the HRA Budget and Levy, and NOW, THEREFORE BE IT RESOLVED by the Board as follows: Section I. That there is proposed levy upon all taxable real and personal property in the City of Golden Valley, a tax rate sufficient to produce the amount as follows: REVENUE HRA HOUSING FUND LEVY $ 245,000 LOSS FOR FISCAL DISPARITIES _(4,000) TOTAL $241,000 Section 2. That the proposed budget is as follows EXPENDITURE HRA HOUSING FUND $ 241,000 Adopted by the City Council of Golden Valley, Minnesota this 6th day of December, 2022. __________________________ Gillian Rosenquist, Chair ATTEST: ________________________________ Timothy J. Cruikshank, Executive Director 17 18 19 20