HRA Meeting Date: June 30, 2025
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
HRA to Consider Lincoln Woods Townhome HOA request for funds.
Body
Action Requested:
HRA to consider Lincoln Woods Townhome HOA request for funds.
Summary Report:
In 1997, in partnership with Three Rivers Community Action, the HRA developed property that is now known as Lincoln Woods Townhomes for homeownership opportunity to households at or below 115% Area Median income. Attachment 1. The property is located on the north side of the City. Attachment 2.
As the property has aged, the need for maintenance and repairs has increased. The Lincoln Woods Townhome HOA is requesting financial assistance from the HRA to help with the repair and resurfacing of their private driveway. Attachment 3.
As part of HOA’s argument in support of their financial request of the HRA, is that there was never a shared maintenance agreement negotiated between the developer and the owner (now EIP Holdings, at the time Sprint) for repair and maintenance of the road leading to the cell tower located south of Lincoln Woods Townhomes.
When staff were initially approached with the request, staff explored utilizing Community Development Block Grant (CDBG) Funds and contacted Dakota County Community Development Agency (CDA) for program guidance. While the stated need and desired outcome fit within the CDBG identified goals, and the project is situated in HUD census tract 706.01, for the development to be eligible for CDBG funds for the project, each individual household must income qualify. HOA representatives have informed staff that not all households currently living at Lincoln Woods Townhomes would be income eligible.
In researching the existing environment to better understand the HOA’s request, staff found the following additional information:
• A Reciprocal Easement Agreement was carried out on August 21, 1992, between HRA and Star MidAmerica Limited Partnership. Attachment 4
• HRA land conveyance to Lincoln Woods Homeowners Association by Warranty Deed July 24, 2000. Attachment 5.
• An Easement Deed executed February 7, 2012, between Lincoln Woods Townhomes HOA and Sprint/Charter. Attachment 6.
Staff reviewed the documents with the city attorney. The city attorney noted that the HRA conveyed to the Lincoln Wood Homeowners Association, July 24, 2000, and therefore would not have been party to the class-action lawsuit, or received notice about it, in 2012. The city attorney also noted that easements are conveyed at the same time as land is conveyed and that the HRA, along with Three Rivers Community Action, was not negligent or remiss by not negotiating a shared maintenance agreement with Star MidAmerica/Sprint.
The HOA received a bid to resurface the driveway in 2023 for $60,000. While in conversation with Sprint/Charter about the driveway and working with a representative to update the easement agreement and consider a shared maintenance agreement, Sprint/Charter sold the cell tower to Everest Infrastructure Partners (EIP) Holdings. The sale set the HOA back in their negotiations. EIP is offering a one-time payment of $5,000 to go towards the resurfacing.
The Lincoln Woods Townhome HOA has made an open-ended request of the HRA to contribute funds to the repair and resurfacing of a private access driveway that leads to a cell tower.
• The HRA could approve the request for $5,000 to match the dollar amount that EIP Holdings has offered. Staff would recommend that this be on a reimbursement basis.
• The HRA could approve the request for a different dollar amount. Staff would recommend that this be on a reimbursement basis.
• The HRA could deny the request for funds and the HOA would need to explore other mechanisms for financing the repair and resurfacing of the driveway.
Alternative Options:
The HRA could look at establishing Housing Improvement Areas (HIAs). A HIA is a defined area in a city in which housing improvements in condominium, townhome complexes, or manufactured home parks may be financed with the assistance of the city, or the city’s EDA or HRA as a loan. Attachment 7.
Financial Impacts:
As of January 16, 2025, estimated HRA reserves are $489,750 ($249,777 restricted, $239,973 unrestricted).
Tentative Timelines:
N/A