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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 1 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. 2 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 3 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 4