Meeting Date: July 6, 2023
To: Members of the Housing & Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
Title
Local Housing Trust Fund and Budget Prep.
Body
Action Requested:
No action is requested at this time.
Summary Report:
The HRA is being provided this information and report before being asked to consider a 2023 budget amendment to provide initial funding to the Local Housing Trust Fund and the Establishment of the Local Housing Trust Fund Subcommittee.
Ordinance Number 1034 (att. 1) passed on April 19, 2022 amending Northfield City Code to establish a Local Housing Trust Fund. The 2023 Minnesota legislative session saw the largest single investment in housing in state history with the passing of $1.065 billion housing omnibus bill. As part of the bill, there will be made available $5.8 million in matching funds, up to $150,000, to communities who have established Local Housing Trust Funds. Minnesota Housing Finance Agency (MHFA) will be the state agency that will be administering the matching funds. There currently is not an application available from MHFA to apply for these funds. As for future funds and grant opportunities through MHFA, if funds are allocated to the Local Housing Trust Fund for future projects, the money is considered "spent" and are not subject to recapture if not immediately allocated to a project. Many grant and funding opportunities also come with a caveat to allow an administering entity administrative fees of up to 10% of allocated funds to the Local Housing Trust Fund for the administration of programming. This new change will allow the HRA an opportunity to build future capacity, both in terms of staffing and money, in order to effectively deploy funds for housing initiatives.
462C.16 Subd.3. of the State Statute spells out what funds in a Local Housing Trust Fund can and cannot be used for; some of the types of programs allowed are already a part of the Northfield HRA portfolio.
Current programs...
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