8.2. HRSR 11-25-2002 Item 8 . 2.
City of
Elk
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Developmen
DATE: November 25, 2002
SUBJECT: Future Work Session with MN Housing Finance Agency
Attachment
• "Community Development Tips from the MHFA",League of MN Cities, Oct. 2002.
Chair Toth would like to discuss with the HRA the consideration of a future HRA work
session to hear from Ms. Katherine Hadley, Commissioner of MN Housing Finance Agency
• (MHFA). The purpose for the work session would be to discuss housing program options
provided by MHFA.
The attached article from the League of MN Cities describes a number of MHFA affordable
housing programs that have been applied throughout the state.
The HRA has previously discussed an interest in a work session regarding scattered site
housing redevelopment programs such as Richfield and Fridley.
•
M A N A G I N G YOUR C I T Y
III
Community Development Tips from the MHFA
By Susan Jackson
he essence of a community's vitality to the manufacturers and employers in facturing expansion, concerns expressed
is visible not through the brick the region; determine the major barriers by the Nicollet Public School system,
and mortar construction seen on to home ownership; and, develop a and the planned land expansion of US
Main Street, but rather in the self-sustaining loan pool to provide Highway 14. To address these and other
enthusiasm and dedication of education and down payment/closing pending issues, the city's Economic
individuals with a vested interest cost assistance to homebuyers. The loan Development Agency approved a new
in the region where they live and pool was funded by a variety of con subdivision that included a 10-unit rental
work. Several small communities tributors, including: MHFA; employer townhome development and 25 single-
in Greater Minnesota have demonstrated donations ranging from large to small family lots. Funding was received from
this enthusiasm and dedication. Their cash contributions or in-kind services; a variety of sources and included personal
efforts have resulted in remarkable success and other city, county, and federal contributions from small business own-
in balancing the competing interests of resources. ers and employees of the public school
business and community in order to The "keys for success," according system. As of the summer of 2002, four
develop affordable housing programs for to Frigaard, are "to begin by putting model homes have been built and two
low- to moderate-income individuals together a strong team of business lead- have been sold.
and families. ers to use as an impetus to move forward The Courtland mixed-income devel-
To create and nurture strong links and carry the message to the community. opment project began as a private
ipbetween employment and affordable In addition, it's important to maintain initiative by a landowner, builder and
housing, the Legislature formed the a tenacity for the process, remain flex- , real estate agent. It rapidly transformed
Challenge Program under which the ible and work toward resolutions." into a public/private partnership when
Minnesota Housing Finance Agency Dan Wietecha, city administrator for the Minnesota Housing Partnership, who
(MHFA) awards funds to eligible appli- the cities of Nicollet, Courtland, and was contacted for assistance, suggested
cants in a competitive process. The Lafayette, credits the success in southern involving the City Council and other
Challenge Program requires that at least Minnesota to the overwhelming response community members. This housing
50 percent of the funds appropriated from the region's employers and resi- project reclaims an abandoned gravel
to MHFA for funding awards must be dents. Their projects demonstrate that pit and converts a portion of the site to
utilized in projects that include a finan- the most effective community develop- public use as a permanent water and
cial or in-kind contribution from an ment efforts happen when small business recreational area.
area employer. MHFA and its funding owners and individuals become involved. We strongly encourage communities
partners strongly encourage communities Lafayette, a rural community with to explore opportunities under this
to leverage funds with other resources. approximately 500 residents, formed a funding program with MHFA housing
In 1999, Northwest Community tax-increment financing district for a professionals, and to design project
Action requested Challenge funds for single-family in-fill development. In proposals that creatively serve the needs
the communities of Roseau, Kittson, and addition to MHFA funding, the city of the local community. For more infor-
Marshall to provide value/affordability provided direct assessment abatements mation,visit the MHFA web site(www.
gap financing for households with and funds towards construction financing mhfa.state.mn.us) or contact any
incomes at or below 80 percent of the and entry cost assistance. Local employ- member of the Community Revitaliza-
state median. ers provided funds for construction tion Team:
Karl Frigaard, housing and economic loans and entry cost assistance and local • Terry Hanna, (651) 296-9567
development coordinator of Northwest lenders agreed to provide end-loan or terry.hanna @state.mn.us
Community Action, described the financing. The Southwest Minnesota • Reed Erickson, (651) 296-8843
community development process as Housing Partnership was hired to admin- or reed.erickson @state.mn.us
beginning with the formation of a task istrate the program with input from the • Nancy Slattsveen, (651) 296-7994
force comprised of the local housing Lafayette EDA, the local bank president, or nancy.slattsveen @state.mn.us
revitalization agency, economic devel- a local realtor, and representatives of six • Donna Dimatteo, (651) 297-3132
opment professionals, banks, utilities,
• local employers, and local government local employers. or donna.dimatteo @state.mn.us
In Nicollet, the planning process
officials. The major objectives were to: was conducted in the fall of 1999 in Susan Jackson is marketer for loan products
communicate the benefits of the program response to a potential Hewitt Manu- with the Minnesota Housing Finance Agency.
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