05-26 Bill No. 2020-6BILL NO. 2020-6
TRANSITORY ORDINANCE NO. 19.14
AN ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Preamble.
1.01. In order to provide the City of Richfield (the "City") with additional tools to support
the rehabilitation and preservation of existing affordable housing within the City,
promote the development of additional affordable housing within the City, and assist
individuals with rental and down payment assistance, the City has determined to create
an Affordable Housing Trust Fund.
Section 2. Definitions.
2.01. Persons of very low income means families and individuals whose incomes do not
exceed 50 percent of area median income, as median income was most recently
determined by the United States Department of Housing and Urban development for the
Minneapolis -St. Paul- Bloomington, Minnesota Metropolitan Statistical Area, as adjusted
for smaller and larger families.
2.02. Persons of low income means families and individuals whose incomes do not
exceed 80 percent of the area median income, as median income was most recently
determined by the United States Department of Housing and Urban development for the
Minneapolis -St. Paul- Bloomington, Minnesota Metropolitan Statistical Area, as adjusted
for smaller and larger families.
2.03. Persons of moderate income means families and individuals whose incomes
exceed 80 percent, but do not exceed 120 percent, of area median income, as median
income was most recently determined by the United States Department of Housing and
Urban development for the Minneapolis -St. Paul -Bloomington, Minnesota Metropolitan
Statistical Area, as adjusted for smaller and larger families.
Section 3. Establishing Affordable Housing Trust Fund.
3.01. Pursuant to the authority granted to the City under Minnesota Statutes Section
462C.16, an affordable housing trust fund is established for the following purposes:
provide loans and grants to for -profit and non-profit housing developers for the acquisition
and capital and soft costs necessary for the creation of new affordable rental and owner -
occupied housing, for the rehabilitation and preservation of existing multi -family residential
rental housing including naturally occurring affordable housing and rental assistance and
homeownership assistance to persons of very low, low, and moderate income.
Bill No. 2020-6
Section 4. Funding Sources.
4.01. The Affordable Housing Trust Fund shall be funded by an annual budgeted
allocation of funds from the Housing and Redevelopment Authority in and for the City of
Richfield (HRA) levy and funds from the Richfield Economic Development Authority (EDA)
levy, as approved by the City Council. Other sources of funding may include, but are not
limited to:
(a) Private cash donations from individuals and corporations
designated for the Affordable Housing Trust Fund.
(b) Payments in lieu of participation in current or future affordable housing
programs.
(c) Matching funds from a federal or state affordable housing trust fund; or
a state program designated to fund an affordable housing trust fund.
(d) Principal and interest from Affordable Housing Trust Fund loan
repayments and all other income from Affordable Housing Trust Fund
activities.
(e) The sale of real and personal property.
(f) Local government appropriations, development fees and other
funds as designated from time to time by the City Council.
(g) Tax Increment Finance (TIF) pooled funds.
Section 5. Purpose of Affordable Housing Trust Fund.
5.01. The City may use money from the Affordable Housing Trust Fund to assist
proposed projects or programs to develop or preserve affordable housing for persons of
very low, low, and moderate income to include:
(a) Making loans at interest rates below or at market rates in order to
strengthen the financial feasibility of proposed projects;
(b) Guaranteeing of loans;
(c) Providing gap financing for affordable housing developments;
(d) Financing the acquisition, demolition, and disposition of property for
affordable housing projects;
(e) Financing construction of public improvements and utilities to aid
proposed affordable residential developments;
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Bill No. 2020-6
(f) Financing the rehabilitation, remodeling, or new construction of
affordable housing;
(g) Tenant and project based rental assistance;
(h) Funding for acquisition and rehabilitation in conjunction with or related to
affordable housing projects;
(i) Funding to facilitate affordable homeownership opportunities
including down payment assistance, second mortgages, closing
costs, etc.;
(j) Administrative costs associated with affordable housing programs that do
not exceed ten percent of the balance fund;
(k) Interim financing of public costs for affordable housing projects in
anticipation of a permanent financing source (i.e. construction financing,
bond sale, etc.); and
(1) Other uses as permitted by law and approved by the City Council.
Section 6. Administration of Affordable Housing Trust Fund.
6.01. The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the "Authority") shall administer the Affordable Housing Trust Fund on
behalf of the City.
6.02 The Authority shall determine the terms and conditions of repayment of loans and
grants from the Affordable Housing Trust Fund including the appropriate security and
interest, if any, should repayment be required. Interest on loans and grants shall be as
established by the Authority from time to time or at the time of approval of a specific
project or program.
6.03. The Authority shall report annually to the City on the use of the funds in the
Affordable Housing Trust Fund, including the number of loans and grants made, the
number and types of residential units assisted, and the number of households for which
rental assistance or down payment assistance were provided. The City shall post the
annual report on its Website.
6.04. The expenditures of funds from the Affordable Housing Trust Fund to provide
assistance for persons of moderate income must be approved by a supermajority of the
City Council.
Section 7. Council Action.
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7.01. The City Council of the City of Richfield hereby ordains the implementation of the
Affordable Housing Trust Fund.
7.02. This Ordinance shall be effective on the 30t" day following the publication of a
summary of this ordinance approved by the City Council of the City of Richfield in the
official newspaper of the City of Richfield.
7.03. The summary of this Ordinance was reviewed and approved by the City Council
of the City of Richfield and the City Council finds that the summary of this Ordinance
clearly informs the public of the intent and effect of this Ordinance.
Section 8. This Ordinance will be effective in accordance with Section 3.09 of
the City Charter.
Adopted by the City Council of the City of Richfield, Minnesota on this 26t" day of May,
2020.
K"c RPM j_AV
Maria Regan Gonzalez, Mayor
ATTEST:
Elizabeth VanHoose, City Clerk
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Bill No. 2020-6
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF RICHFIELD
SUMMARY PUBLICATION
BILL NO.2020-6
TRANSITORY
ORDINANCE NO. 19.14
AN ORDINANCE
ESTABLISHING AN
AFFORDABLE HOUSING
TRUST FUND
This summary of the ordinance
is published pursuant to Section
3.12 of the Richfield City Charter.
This ordinance establishes an
affordable housing trust fund in
order to provide additional tools
to support the rehabilitation and
preservation of affordable housing,
promote the development of addi-
tional affordable housing and assist
individuals with rental and down
payment assistance.
Copies of the ordinance are
available for public inspection in
the City Clerk's office during nor-
mal business hours or upon re-
quest by calling the Department of
Community Development at (612)
861 -9760.
Adopted by the City Council of
the City of Richfield, Minnesota this
26th day of May, 2020.
Published in the
Sun Cunent
June 4,2020
1 049828
)SS
Diane Erickson being duly sworn on an oath,
states or alfirms that he/she is the Publisher's
Designated Agent of the newspaper(s) known
as:
SC Bloomington Richheld
with the known oflice of issue being located
in the county oi
HENNEPIN
with additional circulation in the counties of:
HENNEPIN
and has full knowledge of the facts stated
below:
(A) The newspaper has complied with all of
the requirements constituting qualifica-
tion as a qualified newspaper as provided
by Minn. Stat. $331,{.02.
(B) This Public Notice was printed and pub-
lished in said newspaper(s) once each
week, for I successive week(s); the hrst
insertion being on 0610412020 and the last
insertion being on 0610412020.
MORTGAGE FORECLOSURE NOTICES
Pursuant to Minnesota Stat. $580.033
relatiug to the publication of mortgage
foreclosure notices: The newspaper complies
with the conditions described iD 9580.033,
subd. l, clause (l) or (2). If the newspaper's
known ollice of issue is located in a county
adjoining the county where the mortgaged
premises or some part of the mortgaged
premises described in the notice are located,a substantial portion of the newspaperrs
circulation is in the latter county.
Desipated Agent
Subscribed and sworu to or allirmed before
me oa 0610412020 by Diane Erickson.
Notary Public
Rate Information:
(1) Lowest classified rate paid by commercial users
for comparable space:
$34.45 per column inch
By:
l{olary Public
ll in nesota
CmEm E4rcs Jamtary 31, 2024
DARLENE MARIE
Ad rD 1049828