Housing and Redevelopment Authority Meeting Date: July 7, 2026
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
Consider HRA Resolution - Forgiving a Forgivable Loan to Three Rivers Community Action for the Construction and Completion of Spring Creek II Affordable Housing Development.
Body
Action Requested:
The HRA is being asked to approve the attached resolution to formally acknowledge the completion of Spring Creek II and authorize forgiveness of the Three Rivers Community Action (TRCA) Forgivable Loan Agreement dated June 20, 2022.
Summary Report:
On April 26, 2022, the HRA approved a three-year, Five Hundred and Two Thousand Seven Hundred Forty-Seven and 00/100 Dollars ($502,747.00) forgivable loan to Three Rivers Community Action (TRCA) to help cover the funding gap for the construction of Spring Creek II.
The loan terms, memorialized in the Three Rivers Forgivable Loan Agreement executed June 20, 2022, established that the loan would be forgiven if TRCA and the developer successfully completed construction of the thirty-two (32) units of affordable housing within three years and met all required reporting and project-use obligations.
The loan was approved via HRA Resolution 2022-002. (Attachment #3)
Project Background:
TRCA has developed the Spring Creek II Townhomes as an expansion of the 2013 Spring Creek project. The development delivers 32 new affordable rental units to the City of Northfield and follows several years of coordination among TRCA, the HRA, and the City to secure Low-Income Housing Tax Credits (LIHTCs), establish a Tax Increment Financing (TIF) district, and prepare the site for construction.
The HRA contributed 4.5 acres of land (Southbridge 2nd Addition) and approved the forgivable loan to help address a significant funding gap due to rising construction costs. TRCA closed on the property in 2022 and subsequently conveyed it to the developer according to the terms of the Project.
Completion and Compliance:
TRCA has fulfilled all obligations required under the Forgivable Loan Agreement:
• Construction of the thirty-two (32) affordable housing units at Spring Creek II has been completed within the required three-year term.
• TRCA has submitted required reporting and documentation confirming that the loan funds were used solely for eligible project purposes.
• The project is operating as intended and remains in compliance with the required affordable housing use restrictions.
City Plans & Policies Relevance:
The completion of Spring Creek II and the associated loan forgiveness advance key goals established in both the Comprehensive Plan and Strategic Plan. The Northfield 2045 Comprehensive Plan calls for safe, stable housing in a variety of types and affordability levels to support residents and the local workforce and prioritizes expanding affordable housing options in walkable areas with access to daily needs. Similarly, the 2025-2028 Strategic Plan identifies Increasing Housing Availability as a core priority, with targets for adding multifamily units and expanding affordability for cost-burdened households. The development of 32 affordable units through Spring Creek II directly supports these adopted objectives and strengthens the City’s long-term housing strategy.
Laura Helle, Housing and Homeownership Director at TRCA, will provide an update on the completed project. (Attachment #4)
Alternative Options:
No alternative options are recommended. The loan forgiveness is contractually required upon satisfaction of the stated conditions, all of which have been met.
Financial Impacts:
There is no additional fiscal impact on the HRA. Funds were disbursed in 2022 as a one-time contribution to the project. Loan forgiveness confirms compliance but does not alter the HRA’s financial position.
Tentative Timelines:
N/A