HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 12-08-2021 SpecialHousing and Redevelopment Authority 1 of 1 December 8, 2021
CITY OF PLYMOUTH
AGENDA
Regular Housing and Redevelopment Authority
December 8, 2021, 6:00 PM
1. CALL TO ORDER
2. PUBLIC FORUM—Individuals may address the HRA about any item not contained on the regular
agenda. A maximum of 15 minutes is allotted for the Forum. If the full 15 minutes are not needed for the
Forum, the HRA will continue with the agenda. The HRA will take no official action on items discussed at
the Forum, with the exception of referral to staff for future report.
3. APPROVE AGENDA —HRA members may add items to the agenda for discussion purposes or staff
direction only. The HRA will not normally take official action on items added to the agenda.
4. CONSENT AGENDA —These items are considered to be routine and will be enacted by one motion.
There will be no separate discussion of these items unless HRA member or citizen so requests, in which
event the item will be removed from the Consent Agenda and placed elsewhere on the agenda.
5. PUBLIC HEARINGS
6. NEW BUSINESS
6.1 First Time Homebuyer Program Funding
Resolution 2021-21
7. UPDATES
8. ADJOURNMENT
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Regular
Housing and
Redevelopment
Authority
December 8, 2021
Agenda
Number:6.1
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Danette Parr, HRA Executive Director
Item:First Time Homebuyer Program Funding
1. Action Requested:
Adopt a resolution providing additional funds to the First Time Homebuyer program from the HRA
General Fund Reserves.
2. Background:
The HRA has operated the First Time Homebuyer Program (FTHB) since 1986 and the program has
assisted 199 households, resulting in over $6.5 million invested in helping homebuyers purchase
their first home.
The FTHB program is funded through annual Community Development Block Grants (CDBG) from the
Department of Housing and Urban Development (HUD). Due to the tight housing market and
difficulty in finding properties that are affordable, staff has not recommended a lot of funding from
the CDBG program over the past few years. This was done becasue of the need to meet federal
spend down requirements.
The FTHB program offers a zero interest, 30-year deferred loan of up to $35,000 to assist moderate
income homebuyers to aquire their first home. Loans are repaid at the time of sale, after 30-years,
or if the property is no longer their primary residence. Only households with annual gross income at
or below 80% of the area median are eligible to participate. The current income limit for a
household of four in the Twin Cities is $79,900.
The FTHB program has historically assisted an average of seven households per year. Over the past
three years we have assisted a total of six households (2 per year). We currently have four
prequalified households with enough funding to assist one of them. In addition, one of the
applicants has idenified a property and is hoping to make an offer if they have access to the
Plymouth funds.
PROPOSED FUNDING:
As a result of the increased activity and all remaining program funds currently being committed, the
FTHB program will not be able to assist additional households until additional funding becomes
available. Additional funding will become available if and when program income is received, or
when 2022 CDBG funding becomes available in August, 2022.
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Staff is recomending that the HRA Board consider using some of the HRA reserves to supplement
program funding and allow additional households to be assisted. Staff recommends that the HRA
commit $150,000 from the reserves to supplement the Rehab Program when CDBG funds are not
available.
3. Budget Impact:
The HRA reserves currently have an unrestricted fund balance of $1.2 million. The Valor Place
project is currently committed to a portion of these funds ($600,000). In addition, staff may use
some of these funds to pay a portion of the Vicksburg Crossing window project. However, it is staff's
opinion that there is enough available funding to commit $150,000 to supplement the FTHB program.
4. Attachments:
Resolution 2021-21
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HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF PLYMOUTH, MINNESOTA
RESOLUTION NO.2021-21
RESOLUTION APPROVING
SUPPLEMENTAL FIRST TIME HOMEBUYER LOAN PROGRAM FUNDING
WHEREAS, the Housing and Redevelopment Authority in and for the City of Plymouth,
Minnesota (“HRA”) operates the First Time Homebuyer Loan Program; and
WHEREAS, the funding from the Community Development Block Grant program has been
allocated and is currently depleted; and
WHEREAS, the need for additional First Time Homebuyer Loan Program funding is needed to
continue to meet the goals and mission of the HRA.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment Authority
in and for the City of Plymouth, Minnesota that:
1.The HRA will allocate $150,000 from its reserves to supplement the Community
Development Block Grant (“CDBG”) Housing First Time Homebuyer Loan Program.
APPROVED AND ADOPTED this 8
th day of December, 2021, by the Housing and
Redevelopment Authority in and for the City of Plymouth, Minnesota.
Michelle Soderberg, Chair
Danette Parr, Executive Director
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