091624 HRA AgendaR E G U LAR H O U S IN G AN D R E D E V E LO P ME N T AU TH O R ITY ME E TIN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
S E P TEMB E R 16, 2024
7:00 P M
C all to Order
Open F orum
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the H R A . P lease refer to the H R A agenda and minutes web page for
additional ways to submit comments. C all into the open forum by dialing 1-415-655-0001 U se webinar access
code: 2630 079 8317 and password: 1234.
Approval of the Minutes
A pproval of the minutes of the Regular Housing and Redevelopment A uthority meeting of A ugust 19, 2024.
P R E S E N TATIO N S
1.L ocal S ales Tax P resentation
AG E N D A APPR O VAL
2.A pproval of the A genda
3.Consent Calendar contains several separate items which are acted upon by the H R A in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further H R A action on these items is necessary. However, any H R A
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for H R A discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A .A pprove the final revised E xecutive D irector's official budget document.
S taff Report No. 17
B .C onsideration of a S ection 8 payment standard adjustment.
S taff Report No. 18
4.C onsideration of items, if any, removed from C onsent C alendar
P U B LIC H E AR IN G S
5.P ublic hearing regarding consideration of approval of the Richfield Housing and Redevelopment A uthority's F ive-
Year P ublic Housing P lan.
S taff Report No. 19
H R A D IS C U S S IO N ITE MS
6.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
7.E xecutive D irector's Report
C LAIMS
8.C laims
9.A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9739.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 19, 2024
CALL TO ORDER
Chair Vrieze Daniels called the meeting to order at 7:00 p.m. in the Council Chambers.
HRA Members
Present:
Erin Vrieze Daniels, Chair; Sean Hayford Oleary; John Young
and Mary Supple
HRA Members
Absent:
Gordon Hanson
Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant
Community Development Director; and Michelle Friedrich, City
Clerk
OPEN FORUM
Chair Vrieze Daniels gave instructions on how to participate in the open forum. No one
spoke.
APPROVAL OF THE MINUTES
M/Supple, S/Young to approve the minutes of the 1) Regular Housing and
Redevelopment Authority meeting of June 17, 2024; and the Special Housing and
Redevelopment Authority meeting of July 9, 2024.
Motion carried: 4-0
ITEM #1
HRA BUDGET PRESENTATION
Executive Director Poehlman presented the 2024R-2025 HRA Budget.
Commissioner Hayford Oleary inquired about where the 10% administration fees
collected for managing the TIF districts show up. Executive Director Poehlman explained.
Commissioner Hayford Oleary inquired about how the decision was made to have the
HRA versus the City cover the administrative costs associated with managing the TIF districts.
HRA Meeting Minutes -2- August 19, 2024
Executive Director Poehlman explained.
Chair Vrieze Daniels inquired about the impact to the average homeowner. Executive
Director Poehlman explained.
Commissioner Hayford Oleary inquired about what the max levy is based upon,
Poehlman explained.
Commissioner Supple inquired about the reimbursements for Section 8 administrative
costs from HUD, Poehlman explained.
Chair Vrieze Daniels inquired about the general fund.
Commissioner Supple inquired if programing would need to be cut as TIF districts
decertify, Poehlman explained.
Commissioner Young thanked Poehlman for the detailed explanations and presentation.
ITEM #2
APPROVAL OF THE AGENDA
M/Hayford Oleary, S/Young to approve the agenda.
Motion carried 4-0
ITEM #3
APPROVAL OF THE CONSENT CALENDAR
Executive Director Poehlman presented the consent calendar.
A. Consideration of the approval of revisions to the First Time Homebuyer
Program Guidelines.
M/Young, S/Supple to approve the consent calendar.
Motion carried 4-0
ITEM #4
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
ITEM #5
CONSIDER RESOLUTIONS APPROVING PROPOSED 2025 PROPOSED
HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND TAX LEVY AND
2024 REVISED HOUSING AND REDEVELOPMENT AUTHORITY BUDGET.
HRA Meeting Minutes -3- August 19, 2024
M/Supple, S/Hayford Oleary to approve resolutions approving the 2025 proposed
Housing and Redevelopment Authority budget and tax levy the 2024 revised Housing and
Redevelopment Authority budget.
Motion carried 4-0
ITEM #6
HRA DISCUSSION ITEMS
Chair Vrieze Daniels asked about the Richfield Rediscovered Home Tour. Executive
Director Poehlman informed the commission about the upcoming tour. Chair Vrieze Daniels
encouraged commissioners to participate.
ITEM #7
EXECUTIVE DIRECTOR’S REPORT
Executive Director Poehlman introduced the new City Clerk, Michelle Friedrich.
ITEM #8
CLAIMS
M/Hayford Oleary, S/Supple that the following claims be approved:
U.S. BANK 8/19/2024
HRA Checks: #37091-37107 $451,551.34
Section 8 Checks: #136014-136091 $208,105.91
TOTAL $659,657.25
Motion carried: 4-0
ITEM #9
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:35 p.m.
Date Approved: September 16, 2024
Erin Vrieze Daniels
HRA Chair
LaTonia DuBois Melissa Poehlman
Administrative Assistant Community Development Director
Our Legacy, Our Future.
REINVESTING IN RICHFIELD
PARKS AND RECREATION
Preserving the Legacy of Our
Parks and Recreation System
The City of Richfield is putting forward an $80 million investment plan to address critical
infrastructure issues, support additional programs and provide recreational opportunities at the
Richfield Community Center, Wood Lake Nature Center and Veterans Park.
Wood Lake Nature Center is a
150-acre natural area dedicated to
environmental education, wildlife
observation and outdoor
recreation.
Whether it is swimming, skating,
attending the farmers market,
walking the trails or playing put-put,
the complex serves Richfield
residents and surrounding
community members alike.
The Richfield Community Center
attracts visitors from across the
city and around the region, hosting
wellness, fitness, tax programs as
well as other activities.
Wood Lake Nature Center Veterans Park Richfield Community Center
2
OUR CHALLENGES
Richfield Community Center
Originally built as a public library, the 63-year-old building lacks the
space and updated equipment to support the community programs and
activities our residents say they want.
Critical problems with the aging building include:
•Small and outdated kitchen
•Minimal community gathering spaces
•Lack of separate space for fitness activities and sports
•Electrical issues with the elevator
•Inadequate space for storing equipment and supplies
•Insufficient space for staff
•Eroding foundation that leads to water seeping into the building
when it rains
3
OUR CHALLENGES
Wood Lake Nature Center
The building at Wood Lake Nature Center is 50+ years old and has aged
past its useful life. The facility is plagued with critical infrastructure
problems that cannot be resolved with maintenance and repairs.
Problems at the Wood Lake Nature Center building include:
•Outdated, non-ADA accessible bathrooms
•Rodent and other wildlife infestation due to foundational erosion
•Insufficient space for staff to collaborate and gather
•Aging HVAC system and air quality issues
•Insufficient space for growing demand for educational classes
and community events
•Inadequate and cramped storage for equipment, supplies and
educational materials
4
OUR CHALLENGES
Veterans Park
Despite regular maintenance, many amenities throughout the park
require significant upgrades and renovations to maintain the safety
and health of patrons.
Major challenges at Veterans Park include:
•The 63-year-old pool liner and basin is deteriorating
and needs to be replaced to avoid permanently closing the pool
•Outdated pool filtration and heating systems
•Lack of ADA accessibility at the 53-year-old ice arena
•Deteriorating trail system
•Safety concerns with the aging metal roof at the pavilion
•Infrastructure and grounds issues at the mini golf course/building
and other parts of the park
5
Developing a Plan to Invest in Richfield
The investment plan was driven by feedback from
residents and facility assessments.
We listened to you.Richfield residents played a key role in
shaping these projects. Residents have shared their ideas and
priorities through surveys and at meetings, community events
and other engagement activities.
The city has conducted several facility assessments, worked
with experts and engineers and focused on the city’s strategic
plans and goals to form recommendations for parks and
recreation improvements.
6
This November, Richfield voters will decide whether to support a half-percent local
sales tax to provide $65 million, plus financing costs, to support the three projects.
The Plan
A New Richfield Community Center
The city is proposing to collect $45 million through a local sales
tax to help fund a new community center, designed to support
more activities for residents of all ages.
Potential amenities:
•Additional space allowing for more multipurpose programs,
events and health and wellness groups
•Designated spaces for community meetings and gatherings
•Modern kitchen to support community events
•Gyms and courts
•Indoor walking track
•Efficient workspaces for staff
•Additional areas for senior, adult, youth and family programs
•Increased storage space for equipment and supplies
7
The Plan
Wood Lake Nature Center
The city is proposing to invest $26 million to replace the current
building with a new facility that would provide a more accessible
and inspiring setting for residents and visitors to gather and
reconnect with nature for many years to come.
Key features of the new building would include:
•Fully accessible facilities and restrooms
•New and expanded exhibits and displays
•Meeting space to host classes and larger events such as family
gatherings or weddings
•Hands-on-learning spaces
•Capacity to support additional animal ambassadors
•Reinvestment in nearby grounds and trails
8
The Plan
Veterans Park
To maintain and improve current offerings that serve thousands
of visitors each year, the city is proposing $9 million in critical
upgrades and investments to the complex.
Key improvements at Veterans Park would include:
•Pool: new pool liner and basin, concession area upgrades and new
pool filtration and heating systems
•Ice Arena: accessibility upgrades, replacement of roofing and HVAC
updates for Rink #2
•Trails: resurfacing trails, vegetation improvements, removal of invasive
species,wildlife viewing platform and new park signage
•Bandshell: irrigation and gutter repair
•Pavilion: structural repairs to the metal roof, grading and surfacing,
landscaping and extending the patio area
•Mini Golf: roof and fascia improvements to the adjacent building
9
Financing the Investment Plan
•A half-percent local sales tax: The MN Legislature
authorized the city to seek voter approval of a half-percent
local sales tax to generate $65 million, plus interest and bond
costs, to help finance the three projects.
•State funding: To support the pre-design and construction of
a new educational facility at Wood Lake Nature Center, the
city has already secured $12 million in state funding.
•Federal funding: An additional $3 million in federal funds has
been awarded to the Wood Lake Nature Center project.
10
The city has put forward an $80 million investment plan for the Richfield Community Center, Wood
Lake Nature Center and Veterans Park. The city will finance the projects through three primary
funding sources:
•A local sales tax spreads the cost of the project among residents and nonresidents who purchase
goods and services in Richfield and often use our public amenities.
•A local sales tax follows the same exemptions and applications as the state sales tax.
•If the projects were funded through a property tax increase, the cost burden would fall solely on
property owners in Richfield.
Why a Local Sales Tax
⎻According to research by the University of
Minnesota Extension Center, 55% of the sales tax
would be paid by nonresidents when they make
purchases in the city.⎻That means approximately $35.75 million of the
$65 million collected through sales tax would be
paid by nonresidents.
55%
Nonresidents
($35.75 million)
45%
Residents
($29.25 million)
11
•Richfield residents would only pay about one-third of
the total cost of the projects when factoring in nonresident
contributions from the sales tax and state and federal funding.⎼The average cost of the local sales tax per Richfield
resident would be $3.92 per month, or $46.99 per year,
according to a study by the University of Minnesota.
How the Sales Tax Would Work
•The local sales tax is not permanent and would expire
within 20 years or when the total cost of the approved
projects has been repaid, whichever happens sooner.
•The city cannot use the sales tax for anything other than
the approved projects.
•The amount collected cannot change without approval from local voters.
•The local sales tax includes exemptions for essential goods, including
clothing, groceries, baby products, and feminine hygiene products.
12
=
A half-percent sales tax amounts to
one penny for every $2 spent, or five
cents for a $10 purchase.
Your Voice Matters
Voters will have the final say:The City of Richfield has proposed this community investment plan,
and residents will have the final say when they decide on Tuesday, November 5, whether to approve
a half-percent local sales tax to fund this investment to improve our parks and recreation offerings.
City leaders would reengage residents about
whether they still want to move forward with an
investment in the three project areas. However,
future investments would be more modest in
scale, spread over a longer period of time and
likely cost more in the long run.
The City of Richfield will move forward
with engagement, planning and designs for the
approved projects in 2025.Upgrades and
construction would take place in
phases from 2026-2031 to allow some
new amenities to be enjoyed while others are
being planned or under construction.
If the Referendum Passes If the Referendum Fails
13
Visit OurLegacyOurFuture.org
Learn more about:
The challenges of our outdated parks and rec facilities
The plan to enhance our parks and rec offerings
The cost and tax impact
Voting information
Answers to frequently asked questions
Important dates:
•Early voting begins Friday, Sept. 20 , 2024
•Election Day is Tuesday, Nov. 5, 2024
We encourage everyone to learn more at OurLegacyOurFuture.org
and make their voice heard on Election Day.
14
Thank You
QUESTIONS?
AGENDA SECTION:Consent Calendar
AGENDA ITEM #3.A.
STAFF REPORT NO. 17
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
9/16/2024
REPORT PREPARED BY: Melissa Poehlman, Executive Director
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Approve the final revised Executive Director's official budget document.
EXECUTIVE SUMMARY:
In putting together the final version of the Housing and Redevelopment Authority (HRA) Budget, HRA staff
and the Finance Division agreed that it would be ideal to clarify the Affordable Housing Trust Fund Budget,
reclassify the Bring it Home funds as Intergovernmental Revenue, and move a planned transfer of Temporary
Spending Plan funds for affordable housing projects from 2024 to 2025. In order to do so, staff is requesting
that the HRA approve a revised Executive Director's Budget document.
The final document combines the Affordable Housing Trust Fund with the Special Legislation Tax Increment
Funds for clarity. In the previous document, a fund balance of approximately $780,000 in the Special
Legislation Funds and an additional transfer of $500,000 from the Temporary Spending Plan was not
reflected and therefore made the Affordable Housing Trust Fund appear to be significantly overspent. While
staff will continue to manage these funds separately, the combination in this document makes it clear to the
reader that funds are available. This does not represent a change to any proposed funding and is an
accounting change only.
Bring it Home Funds that will be provided by the State were previously classified as Miscellaneous Revenue.
As these are funds coming from another government unit, they should be reflected as Intergovernmental
Revenue. This does not represent a change to any proposed funding and is an accounting change only.
As discussed and previously approved by the HRA, funding has been committed to both the Penn Station and
Aster Commons affordable housing projects, should they move forward. Given the timing of the tax credit
decisions, this expenditure would not happen until 2025. Therefore, the transfers for the projects will not
happen until 2025. The $485,000 and $500,000 transfers are now both reflected in 2025. This too, is an
accounting change and not a programmatic or spending plan change.
Additional minor typographical corrections have been made.
A revised Sources and Uses slide has been attached. The Budget continues to reflect the presentation
(projects and spending) given in August and the proposed levy would not change. There is no change to the
previously approved General Fund Budget.
RECOMMENDED ACTION:
By motion: Approve a Resolution approving the revised Executive Director's official budget document.
Melissa Poehlman, Executive Director9/3/2024
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
In 2021, the Legislature passed special legislation allowing the City to temporarily transfer pooled tax
increment to the Affordable Housing Trust Fund. These Special Legislation Tax Increment Funds (TIF)
are part of the Affordable Housing Trust fund but must be tracked separately per state rules regarding
TIF.
On August 19, 2024 the HRA discussed and approved resolutions that:
Approved 2024 revised and 2025 General Fund Budgets;
Approved a preliminary 2025 tax levy;
Approved a budget document to be maintained by the Executive Director.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The HRA Budget has been planned to work toward Desired Outcomes of the 2023-2026 Richfield
Strategic Plan by putting money into efforts to diversify the City's tax base and toward maintaining
Richfield as an affordable place to live.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
None.
D.CRITICAL TIMING ISSUES:
None.
E.FINANCIAL IMPACT:
None. While totals within the revised document have fluctuated, actual spending has not. Instead of
appearing to spend into a deficit, the document makes it clear that revenue and fund balances are
available to cover proposed expenditures.
F.LEGAL CONSIDERATION:
While no changes to programming have been proposed, staff felt that it was important to provide the
Board with a revised version of the Budget document for consideration to avoid confusion.
ALTERNATIVE RECOMMENDATION(S):
Do not approve a revised document. Programming will remain the same; however, it may be more
confusing to review a 2025 Revised and 2026 Proposed Budget next year.
PRINCIPAL PARTIES EXPECTED AT MEETING:
None
ATTACHMENTS:
Description Type
2025 HRA Budget Exhibit
Resolution Resolution Letter
Sources & Uses Table Exhibit
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 1488
RESOLUTION APPROVING REVISED OFFICIAL BUDGET DOCUMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (the “Authority”) approved a revised 2024 and 2025 budget and preliminary 2025 tax
levy on August 19, 2024; and
WHEREAS, the details of the revised 2024 and 2025 budgets are maintained in the
Executive Director’s official copy of the budget document (the “official copy”); and
WHEREAS, the Executive Director, in concert with the Finance Director of the City of
Richfield, have determined that the following changes should be made to the official copy:
1.The fund balance of the Affordable Housing Trust Fund and Special Legislation
Funds should be combined in the official copy to clarify available funding and
transfers;
2.A previously approved expenditure for an affordable housing project should be
included in the 2025 Budget rather than the 2024 budget; and
3.Anticipated funds from the State of Minnesota should be classified as
Intergovernmental Revenue.
WHEREAS, the proposed changes do not constitute a change to the HRA General Fund
Budget or approved preliminary 2025 tax levy; and
WHEREAS, the revised official copy clarifies that funding is available for programs and
commitments made by the Authority.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1.The Board approves the revised Executive Director’s official copy of the 2025 Budget.
Adopted by the Board of Commissioners of the Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota this 16th day of September, 2024.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
RICHFIELD HOUSING AND
REDEVELOPMENT AUTHORITY
2025 BUDGET
6700 Portland Avenue Richfield, MN
1
TABLE OF CONTENTS
Page No.
HRA Officials 2
Executive Director's Budget Message 3
Summary of 2024/2025 Budget - All Funds 8
Comparative Analysis of Expenditures By Major Objectives - All Funds 9
Comparative Analysis of Expenditures - All Funds 10
Comparative Analysis of Revenues - All Funds 11
General Fund:
Budget Summary - General Fund 14
Housing and Redevelopment Administration - Narrative 15
General Fund - Summary by Division 17
General Fund Revenue 18
HRA Administration 19
Marketing and Promotional Events 20
Rental Housing Support 21
Richfield Rediscovered HF 22
Special Revenue Funds:
Capital Improvement 25
New Home Program 28
Housing Rehabilitation Program 33
Section 8 - Housing Assistance Program 38
Section 8 - Administration 43
Affordable Housing Trust 46
Local Affordable Housing Aid 51
Bring It Home 54
Capital Projects:
Development Opportunities 61
The Lakes at Lyndale 65
Lyndale Garden Center 70
Cedar Point Commons 7
Cedar Corridor 77
Penn Corridor 81
Housing & Redevelopment Fund 85
Budget Resolutions:
Resolution Approving Proposed 2025 Housing and Redevelopment 91
Authority Budget and Certifying the 2025 Tax Levy.
Resolution Authorizing Revision of 2024 Budget of the Housing and 92
Redevelopment Authority of Richfield.
11
CITY OF RICHFIELD, MINNESOTA
ANNUAL BUDGET
HOUSING AND REDEVELOPMENT AUTHORITY
HRA COMMISSIONERS
ERIN VRIEZE DANIELS - CHAIR
COMMISSIONER - GORDON HANSON
COMMISSIONER - MARY SUPPLE
COMMISSIONER - SEAN HAYFORD OLEARY
COMMISSIONER - JOHN YOUNG
ADMINISTRATIVE STAFF
MELISSA POEHLMAN - EXECUTIVE DIRECTOR/COMMUNITY DEVELOPMENT DIRECTOR
KUMUD VERMA - FINANCE DIRECTOR
222
Community Development Department
Housing and Redevelopment Authority
6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423-2599
Phone: 612.861.9760 FAX: 612.861.8974
www.richfieldmn.gov AN EQUAL OPPORTUNITY EMPLOYER
MAYOR
MARY SUPPLE
CITY COUNCIL
SHARON CHRISTENSEN
SEAN HAYFORD OLEARY
SIMON TRAUTMANN
BEN WHALEN
CITY MANAGER
KATIE RODRIGUEZ
July 29, 2024
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
In accordance with the bylaws of the Richfield Housing and Redevelopment Authority
(HRA), the HRA budget for January 1, 2025, to December 31, 2025, is submitted. A
meeting on the proposed HRA budget will be held on August 19, 2024, at 7:00 p.m.
Pursuant to State law, the HRA must certify the 2025 budget and the revenue
required to be raised by an ad valorem property tax levy to the Hennepin County
Auditor. The deadline for the certification is December 30, 2024. A proposed 2025
tax levy must be submitted to the County Auditor on or before September 30, 2024.
Any amendments to the proposed budget, which would increase the property tax
levy, must be made prior to September 30, 2024. No increases to the tax levy are
permissible after that date, only reductions. Final certification of the HRA tax levy is
part of the City’s budget process.
The revised 2024 budget and the proposed 2025 budget for the HRA consist of 17
funds or programs.
1. General Fund
2. Capital Improvement Program
3. New Home Program
4. Housing Rehabilitation Program
5. Section 8 Rental Assistance - HAP
6. Section 8 Rental Assistance – ADMIN
7. Affordable Housing Trust Fund
8. Development Opportunities Fund
9. Lakes at Lyndale
10. Lyndale Garden Center
11. Cedar Point Commons
12. Cedar Corridor
13. Penn Corridor
14. Local Affordable Housing Aid (LAHA)
15. Bring it Home Rental Assistance
16. Housing and Redevelopment Fund
17. Temporary Spending Plan Fund
2024/2025 AREAS OF FOCUS During the upcoming fiscal year, the HRA and its staff will continue place emphasis
on work that furthers the desired outcomes identified by the City’s Strategic Plan –
33
Housing & Redevelopment Authority Commissioners
July 29, 2024
Page | 2
specifically activities that aim to create a vibrant downtown, diversify the tax base,
and maintain Richfield as an affordable place to live. Activities will include:
x Exploring redevelopment opportunities in identified priority areas: Downtown,
Penn Corridor, Cedar Corridor. x Furthering economic and redevelopment goals through the use of Temporary
Spending Plan funds. x In conjunction with EDA staff, marketing development sites owned by the HRA
along East 66th Street, the Cedar Corridor, Penn Avenue, and Interstate 494. x Serving approximately 325 Section 8 clients.
x Prioritizing maintenance of Richfield’s housing stock through the Deferred
Loan and Fix Up Fund Loan Programs.
x Facilitating homeownership opportunities for first-time buyers with a focus on
building wealth for historically marginalized populations.
x Facilitating investment and diversification of the housing stock through the
Richfield Rediscovered Program with a renewed focus on priority or
demonstration housing types.
x Researching and implementing strategies and policies for the preservation of
affordable housing.
x Focusing on housing for those hardest to house populations with incomes at
30% or less of Area Median Income.
x Programming new Local Affordable Housing Aid (LAHA) money and applying
for Bring it Home funds.
Individual budgets for the programs and projects administered by the HRA are
provided as part of the budget document. Each of these budgets provides a
narrative including the program’s mission, administrative focus, highlights of 2024,
and goals for 2025. A detailed accounting of actual revenues and expenditures for
the past year (2023), as well as adopted and revised 2024 budgets are provided to
compare with proposed 2025. Only a narrative is provided for the Temporary
Spending Plan Fund given the particulars and temporary nature of this funding
source.
OVERVIEW 2024 AND 2025
The HRA budget varies significantly from year-to-year for several reasons. To begin,
funding to assist larger projects is made as those projects arise and is made from
fund balances. Additionally, pass-through funding, such as large grants, can skew
the budget significantly. The 2024 revised budgets for the Affordable Housing Trust
Fund, Development Opportunities, and the Housing & Redevelopment Fund have
changed significantly as opportunities have newly arisen, been delayed to 2025, or
fallen away.
The revised 2024 staff and fixed costs will drop by 8.2% due to a partial-year
vacancy. These General Fund Expenditures will remain nearly flat for 2025
44
Housing & Redevelopment Authority Commissioners
July 29, 2024
Page | 3
(increasing only $2,800 over 2024 Revised). This is due to a reallocation of IT
charges that saved the HRA significant money in 2025 and allowed for the absorption
of the impacts of the Compensation and Classification Study for this particular year.
A proposed levy increase of 3% will allow the HRA to save for the ongoing impacts of
Compensation and Classification Study, the decertification of tax increment districts,
and anticipated technology needs.
The resolution to certify the 2025 budget and tax levy has been prepared based on
the proposed budget. This resolution and a resolution revising the 2024 budget are
in the last section of this document.
Respectfully submitted,
Melissa Poehlman, AICP
Executive Director
55
THIS PAGE WAS LEFT BLANK INTENTIONALLY
666
SUMMARY OF 2024/2025 BUDGET
COMPARATIVE ANALYSIS OF EXPENDITURES BY MAJOR OBJECTIVES - ALL FUNDS
COMPARATIVE ANALYSIS OF EXPENDITURES - ALL FUNDS
COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS
777
SUMMARY OF 2024/2025 BUDGET - ALL FUNDSFund BalanceFund BalanceFund BalanceFUNDSJanuary 1, 2024 Revenues Expenditures December 31, 2024 Revenues Expenditures December 31, 2025GENERAL2,688,756$ 721,950$ 598,805$ 2,811,901$ 772,390$ 545,790$ 3,038,501$ SPECIAL REVENUE:Capital Improvement920,998 21,000 -941,998 40,000 -981,998 New Home Program285,263 102,390 102,390 285,263 42,400 42,400 285,263 Housing Rehabiliation Program335,684 10,330 81,850 264,164 10,660 71,850 202,974 Section 8 Rental Assistance - HAP(39,597) 1,975,000 1,975,000 (39,597) 2,200,000 2,200,000 (39,597)Section 8 Rental Assistance - ADMIN184,904 360,670 360,670 184,904 384,210 379,210 189,904 Affordable Housing Trust985,155 - 421,000564,155 985,000 1,226,000 323,155 Local Affordable Housing Aid-233,600 100,000133,600 400,000 260,000 273,600 Bring it Home-- --474,000 178,995 295,005 TOTAL SPECIAL REVENUE2,672,407 2,702,990 3,040,910 2,334,487 4,536,270 4,358,455 2,512,302 CAPITAL PROJECTS:Development Opportunities3,368,081 4,452,500 232,500 7,588,081 32,500 32,500 7,588,081 Lakes at Lyndale28,094 23,250 8,250 43,094 21,250 26,250 38,094 Lyndale Garden Center(14,347)4,6004,600 (14,347) 4,600 4,600 (14,347)Cedar Point Commons(137,697)3,0001,000 (135,697) 3,000 1,000 (133,697)Cedar Corridor 710,088 12,700 1,000 721,788 12,700 1,000 733,488 Penn Corridor 89,265 7,32031,500 65,085 31,500 32,350 64,235 Housing & Redevelopment Fund3,056,947 1,289,425 1,064,330 3,282,042 608,030 356,000 3,534,072 Spending Plans4,551,141 - 30,0004,521,141 -985,000 3,536,141 TOTAL CAPITAL PROJECTS11,651,572 5,792,795 1,373,180 16,071,187 713,580 1,438,700 15,346,067 TOTAL - ALL FUNDS17,012,735$ 9,217,735$ 5,012,895$ 21,217,575$ 6,022,240$ 6,342,945$ 20,896,870$ 8
COMPARATIVE ANALYSIS OF EXPENDITURES
BY MAJOR OBJECTIVES - ALL FUNDS
2024 2025
2023 Budget Revised Budget
General Fund
Personal services 291,350$ 333,620$ 300,840$ 328,370$
Other services and charges 247,829 197,895 253,805 179,710
Total Current Expenditures 539,179 531,515 554,645 508,080
Transfers 8,008 54,350 44,160 37,710
Total General Fund 547,187 585,865 598,805 545,790
Special Revenue Funds
Personal services 228,320$ 243,050$ 240,970$ 292,110$
Other services and charges 2,072,694 2,296,390 2,559,940 3,826,345
Total Current Expenditures 2,301,014 2,539,440 2,800,910 4,118,455
Capital outlay 100,000 - 240,000 240,000
Transfers 40,213 - --
Total Special Revenue 2,441,227 2,539,440 3,040,910 4,358,455
Capital Projects Funds
Personal services -$ -$ -$ -$
Other services and charges 596,665 77,500 296,350 99,200
Total Current Expenditures 596,665 77,500 296,350 99,200
Capital outlay 70,355 349,500 1,076,830 354,500
Transfers - - - 985,000
Total Capital Projects 667,020 427,000 1,373,180 1,438,700
TOTAL FOR ALL FUNDS
Personal services 519,670 576,670 541,810 620,480
Other services and charges 2,917,188 2,571,785 3,110,095 4,105,255
Total Current Expenditures 3,436,858 3,148,455 3,651,905 4,725,735
Capital outlay 170,355 349,500 1,316,830 594,500
Transfers 48,221 54,350 44,160 1,022,710
Total for All Funds 3,655,434$ 3,552,305$ 5,012,895$ 6,342,945$
9
COMPARATIVE ANALYSIS OF EXPENDITURES
ALL FUNDS
2024 2025
FUNDS 2023 Budget Revised Budget
GENERAL 547,187$ 585,865$ 598,805$ 545,790$
SPECIAL REVENUE
Capital Improvement 40,213 - - -
New Home 2,197 1,870 102,390 42,400
Housing Rehabilitation 40,551 57,000 81,850 71,850
Section 8 - Housing Assistance Program 1,717,494 1,950,000 1,975,000 2,200,000
Section 8 - Administration 325,205 349,570 360,670 379,210
Affordable Housing Trust 315,567 181,000 421,000 1,226,000
Local Affordable Housing Aid - - 100,000 260,000
Bring it Home - - 178,995
Total Special Revenue 2,441,227 2,539,440 3,040,910 4,358,455
CAPITAL PROJECTS
Development Opportunities 36,231 - 232,500 32,500
Lakes at Lyndale 409 21,250 8,250 26,250
Lyndale Garden Center 39 4,600 4,600 4,600
Cedar Point Commons -1,000 1,000 1,000
Cedar Corridor -12,700 1,000 1,000
Penn Corridor 10,986 31,500 31,500 32,350
Housing & Redevelopment Fund 619,355 356,000 1,064,330 356,000
Spending Plans - - 30,000 985,000
Total Capital Projects 667,020 427,050 1,373,180 1,438,700
TOTAL - ALL FUNDS 3,655,434$ 3,552,355$ 5,012,895$ 6,342,945$
10
COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS - 2024 REVISED
Special Capital
General Revenue Projects Total
Taxes 692,620$ -$ -$ 692,620$
Intergovernmental Revenues - 2,469,600 210,000 2,679,600
Miscellaneous Revenues 29,330 196,830 4,338,000 4,564,160
Transfers - 36,560 744,795 781,355
Total 721,950$ 2,702,990$ 5,292,795$ 8,717,735$
COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS - 2025
Special Capital
General Revenue Projects Total
Taxes 720,610$ -$ -$ 720,610$
Intergovernmental Revenues - 3,384,000 30,000 3,414,000
Miscellaneous Revenues 51,780 137,160 15,000 203,940
Transfers - 515,110 1,168,580 1,683,690
Total 772,390$ 4,036,270$ 1,213,580$ 6,022,240$
COMPARATIVE ANALYSIS OF FUND BALANCE - GENERAL FUND
2024 2025
2023 Budget Revised
Fund Balance, January 1 2,213,260$ 2,498,895$ 2,688,756$ 2,760,901$
Revenues 1,022,683 1,174,180 721,950 772,390
Total Available 3,235,943 3,673,075 3,410,706 3,533,291
Expenditures 547,187 585,865 598,805 545,790
Fund Balance, December 31 2,688,756$ 3,087,210$ 2,811,901$ 2,987,501$
11
GENERAL FUND
121212
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131313
BUDGET SUMMARY - GENERAL FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 2,213,260$ 2,498,895$ 2,688,756$ 2,811,901$
Revenues:
Taxes:
Current 666,532 1,145,620 692,620 720,610
Total Taxes 666,532 1,145,620 692,620 720,610
Miscellaneous Revenues:
Other Miscellaneous Revenues 356,151 28,560 29,330 51,780
Total Miscellaneous Revenues 356,151 28,560 29,330 51,780
Total Revenues 1,022,683 1,174,180 721,950 772,390
Expenditures:
Personal Services 291,350 333,620 300,840 328,370
Other Services and Charges 247,829 197,895 253,805 179,710
Total Expenditures 539,179 531,515 554,645 508,080
Excess (Deficiency) of Revenues
Over Expenditures 483,504 642,665 167,305 264,310
Transfers From (To) Other Funds:
New Home - (2,390) (2,400)
Rehabilitation Program (46,750)
Section 8 Administration - - (34,170) (27,710)
Lakes at Lyndale (408) - - -
Lyndale Garden (4,600) (4,600) (4,600) (4,600)
Cedar Point (3,000) (3,000) (3,000) (3,000)
Net Transfers (8,008) (54,350) (44,160) (37,710)
FUND BALANCE - DECEMBER 31 2,688,756$ 3,087,210$ 2,811,901$ 3,038,501$
14
HOUSING AND REDEVELOPMENT ADMINISTRATION
MISSION STATEMENT
To assist in keeping the residential and commercial areas of the City vital, maintaining
property values, and serving the diverse housing and economic needs of homeowners,
renters, and the business community.
ADMINISTRATIVE FOCUS
To a significant degree, the growth, vitality, and competitive position of the community
rests with programs initiated and administered by the HRA. The programs invest in
both residential and commercial areas.
The Housing and Redevelopment Division of Community Development has the
following areas of focus:
x Housing Assistance
x Rental Housing Support
x Housing Improvement and New Construction Programs
x Redevelopment planning, administration, marketing, and project management.
One of the five Strategic Priorities identified by the City Council for 2023-2027 is
“Community Development.” Creating a vibrant downtown, diversifying the tax base, and
maintaining Richfield as an affordable place to live are desired outcomes of the
Strategic Plan, all relating to the work of the Richfield Housing and Redevelopment
Authority (HRA).
HIGHLIGHTS AND GOALS
Highlights and goals are primarily provided for each individual project/program in the
following pages. In addition to these, work over the past year included:
x Conducted and presented research related to additional renter protections and
institutional investors (Council Policy Request). x Continued efforts for Strengthening Richfield Apartment Communities and
connecting with residents who are renters. x Administered 13 active Tax Increment Finance Districts. Administration includes
a variety of activities, including: creation of the district, semi-annual payments,
management of “pooled” funds, annual reporting to the Office of the State
Auditor, and eventual decertification. x Managed several prospective and active redevelopment projects (e.g. 6501-6525
Penn Avenue; 101-66th Street; Aster Commons). x Evaluation of single-family housing programs for alignment with Council goals. x Onboarded and trained new Housing Specialist and continued to focus on
onboarding and training of Finance staff as it relates to the specific needs of the
HRA.
151515
In 2025, staff will continue to focus on many of these ongoing tasks and will add:
x Implementation of the results of the single-family housing program evaluation. x Program new Local Affordable Housing Assistance (LAHA) funds in alignment
with said program evaluation and other HRA/City priorities. x Work with Minnesota Housing to implement the new state-funded rental
assistance program, Bring It Home. x Continue to implement the housing marketing plan; improving outreach to under-
served segments of the populations.
DIVISION EXPENDITURE COMMENT
x The HRA Administration Division is funded almost entirely by the HRA Levy.
x The 2023 Legislature approved a 0.25% metro-area sales tax (Local Affordable
Housing Assistance or LAHA) with revenue dedicated to affordable housing
activities. A portion of the revenue will be given directly to cities to use on eligible
affordable housing activities. Richfield will receive an award of approximately
$230,000 in 2024 (significantly lower than previously estimated $400,000). The 2024
Revised Budget shows this money being allocated directly into a separate LAHA
Fund as it is not allowed to be used for administration of programming and has
prescribed reporting and tracking requirements.
x The 2024R budget increases significantly to account for the acquisition of 6525
Penn Avenue and pay closing costs and second half taxes for the donated property
at 1620-40 78th Street. Additionally, money that was not spent in 2023, has been
rolled over into the Revised budget.
x The 2025 funds most programs at a level consistent with 2024, but also includes
significant spending from the Affordable Housing Trust Fund to assist affordable
housing projects (Aster Commons and Penn Station). The 2025 budget also
includes a significant increase in personnel costs as the Compensation and
Classification Study is implemented.
161616
DEPARTMENT SUMMARY BY BUSINESS UNIT
BUSINESS UNIT BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HRA GENERAL FUNDFUND:
Community DevelopmentDEPARTMENT:
Increase/
(Decrease)
2024 Budget/
2025 Budget
108,009 - - - HRA GENERAL FUND $$$$ - 90001
416,978 527,015 484,055 486,640HRA Administration (7.66%)90100
10,002 10,650 10,650 10,900Marketing/Events 2.35%90300
- 42,500 97,500 42,500Rental Housing Support 0.00%90400
12,199 5,700 6,600 5,750Richfield Rediscovered/HF 0.88%90700
585,865 598,805 545,790547,188Community Development TOTAL $$$$(6.84%)
REVENUES
1,022,683 1,174,180 721,950 772,390HRA GENERAL FUND $$$$(34.22%)90001
ADMINISTRATIVE SERVICES
YEAR AMOUNT
2023 $538,766 2020
2024B $585,865 2021
2024R $598,805 2021R
2025 $545,790 2022
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2023 2024B 2024R 2025
E
X
P
E
N
D
I
T
U
R
E
S
YEAR
HRA GENERAL FUND
EXPENDITURES
17
HRA GENERAL FUNDFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HRA GENERAL FUND - 90001BUSINESS UNIT:
Taxes
4005 576,467 692,620 692,620 720,610Current$$$$
4010 (3,414)- - - Delinquent
4015 5 453,000 - - Other Taxes
4020 (480)- - - Penalty & Interest
4025 93,955 - - - Fiscal Disparities
1,145,620 692,620 720,610666,533TaxesTotal$$$$
Intergovernmental Revenues
4244 100,000 - - - Grants Other $$$$
- - - 100,000Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 85,954 17,000 17,000 40,000Investment Earnings $$$$
4609 4,299 - - - Change in Fair Value
4622 1,000 - 1,000 1,000Contributions & Donations
4642 4,971 1,200 - - Other Refund/Reimbursements
4643 550 - 550 - RR Program Fee
4644 159,376 10,360 10,780 10,780Other Miscellaneous Revenues
28,560 29,330 51,780256,150Miscellaneous Revenues Total $$$$
HRA GENERAL FUND TOTAL 1,174,180 721,950 772,3901,022,683$$$$
18
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HRA GENERAL FUNDFUND:
Community DevelopmentDEPARTMENT:
HRA Administration - 90100BUSINESS UNIT:
Personal Services
6051 291,165 333,620 300,840 328,370Interdepartmental Labor $$$$
333,620 300,840 328,370291,165Personal Services Total $$ $$
Other Services & Charges
6103 13,014 16,300 16,300 16,950Professional Services -General $$$$
6201 10,640 11,070 11,070 11,400Rents & Leases
6202 73,120 75,720 75,720 55,830Data Processing Rental
6301 128 360 360 360Advertising & Publication
6302 720 775 775 800Communications
6303 2,958 3,550 3,550 3,690Professional Development
6305 1,498 1,310 1,620 1,620Subscriptions & Memberships
6307 18,765 25,060 25,060 25,060Insurance & Bonds
6401 1,628 1,760 1,760 1,830Office Supplies
6402 1,100 1,040 1,040 1,080Copy Charges
6403 283 600 400 400Postage
6409 55 500 400 500Uniforms & Clothing
6414 1,720 1,000 1,000 1,040Other Supplies
139,045 139,055 120,560125,629Other Services & Charges Total $$ $$
Other Financing Uses
8511 -54,350 44,160 37,710Operating Transfers Out $$$$
54,350 44,160 37,710-Other Financing Uses Total $$ $$
527,015 484,055 486,640416,794HRA Administration TOTAL $$ $$
191919
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HRA GENERAL FUNDFUND:
Community DevelopmentDEPARTMENT:
Marketing/Events - 90300BUSINESS UNIT:
Other Services & Charges
6103 4,834 3,050 5,000 5,100Professional Services -General $$$$
6301 1,033 2,800 1,100 1,200Advertising & Publication
6401 83 50 100 50Office Supplies
6402 7 750 250 250Copy Charges
6403 2,356 2,500 2,500 2,600Postage
6414 1,689 1,500 1,700 1,700Other Supplies
10,650 10,650 10,90010,002Other Services & Charges Total $$ $$
10,650 10,650 10,90010,002Marketing/Events TOTAL $$ $$
202020
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HRA GENERAL FUNDFUND:
Community DevelopmentDEPARTMENT:
Rental Housing Support - 90400BUSINESS UNIT:
Other Services & Charges
6103 - 42,000 42,000 42,000Professional Services -General $$$$
6301 - 200 200 200Advertising & Publication
6402 - 50 50 50Copy Charges
6414 - 250 250 250Other Supplies
6511 55,000Rehab Loan Program
42,500 97,500 42,500- Other Services & Charges Total $$ $$
42,500 97,500 42,500- Rental Housing Support TOTAL $$ $$
212121
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HRA GENERAL FUNDFUND:
Community DevelopmentDEPARTMENT:
Richfield Rediscovered/HF - 90700BUSINESS UNIT:
Other Services & Charges
6103 2,685 3,500 3,500 3,500Professional Services -General $$$$
6301 96 - 100 100Advertising & Publication
6310 - 2,000 1,700 1,700Taxes & Licenses
6315 168 200 1,300 450Other Contractual Services
5,700 6,600 5,7502,949Other Services & Charges Total $$ $$
Capital Outlay
7310 9,250 - - - Site Improvements $$$$
- - - 9,250Capital Outlay Total $$ $$
5,700 6,600 5,75012,199Richfield Rediscovered/HF TOTAL $$ $$
22
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232323
SPECIAL REVENUE FUNDS
242424
BUDGET SUMMARY - CAPTIAL IMPROVEMENT FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 910,732$ 931,736$ 920,998$ 941,998$
Revenues:
Miscellaneous Revenues:
Interest 50,480 21,000 21,000 40,000
Total Revenues 50,480 21,000 21,000 40,000
Expenditures:
Other Services and Charges - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues
Over Expenditures 50,480 21,000 21,000 40,000
Transfers From (To) Other Funds:
General Fund (40,213) - - -
Special Revenue - - - -
Net Transfers (40,213) - - -
FUND BALANCE - DECEMBER 31 920,998$ 952,736$ 941,998$ 981,998$
25
HRA CAPITAL IMPROVEMENT FUND
MISSION STATEMENT
To fund HRA programs utilizing non-tax increment revenues such as land sale
proceeds, interest earnings, and miscellaneous revenues.
FUND FOCUS
The primary assets of this fund were derived from the sale of land to developers in the
early years of the Lyndale-Hub-Nicollet tax increment redevelopment project. Interest
earnings from those revenues and miscellaneous income accounts for the balance.
In an effort to maximize the use of limited funding sources, two accounts were
established: the Capital Fund Trust and Capital Fund Revolving Account. The principal
amount of the trust is invested. The annual interest earnings provide funding to support
HRA programs.
2024 AND 2025 HIGHLIGHTS
x No expenditures are planned for either 2024 or 2025.
FUND EXPENDITURE COMMENT
x Funding to programs is provided by “transfers out” when activity occurs.
262626
CAPITAL IMPROVEMENT FUNDFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
CAPITAL IMPROVEMENT FUND - 91001BUSINESS UNIT:
Miscellaneous Revenues
4607 50,480 21,000 21,000 40,000Investment Earnings $$$$
21,000 21,000 40,00050,480Miscellaneous Revenues Total $$$$
CAPITAL IMPROVEMENT FUND TOTAL 21,000 21,000 40,00050,480$$$$
272727
BUDGET SUMMARY - NEW HOME PROGRAM FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 257,164$ 303,393$ 285,263$ 285,263$
Revenues:
Intergovernmental
CDBG Grants - - 100,000 40,000
Miscellaneous
Loan Repayment 20,000 10,000 - -
Interest 10,296 - - -
Total Revenues 30,296 10,000 100,000 40,000
Expenditures:
Other Services and Charges 2,197 1,870 102,390 42,400
Capital Outlay - - - -
Total Expenditures 2,197 1,870 102,390 42,400
Excess (Deficiency) of Revenues
Over Expenditures 28,099 8,130 (2,390) (2,400)
Transfers From (To) Other Funds:
Affordable Housing Trust Fund - - - -
General Fund - - 2,390 2,400
Net Transfers - - 2,390 2,400
FUND BALANCE - DECEMBER 31 285,263$ 311,523$ 285,263$ 285,263$
28
NEW HOME PROGRAM
MISSION STATEMENT
To encourage the development of new housing opportunities for low- and moderate-
income families, elderly and disabled persons.
PROGRAM FOCUS
The New Home Program was established in 1974 to eliminate deteriorated,
substandard structures and to provide home ownership opportunities for low- to
moderate-income households. In cooperation with non-profit partners, the HRA
contributes to the rehabilitation of existing homes or the construction of new homes to
serve these households. Projects also aim to create long-term affordable housing
through a community land trust, and/or to meet special housing needs. In 2018, a down
payment assistance program was added to expand homeownership opportunities.
2024 HIGHLIGHTS
x Funds are budgeted to cover legal expenses related to the servicing of New
Home Program and First Time Homebuyer mortgages and for property
maintenance and other holding-related expenses for lots held for affordable
new construction.
x Community Development Block Grant (CDBG) funding provides down
payment assistance to four to five first-time homebuyers.
2025 PROGRAM GOALS
x Funds are budgeted to cover legal expenses related to the servicing of New
Home Program and First Time Homebuyer mortgages and for property
maintenance and other holding-related expenses for lots held for affordable
new construction.
x Community Development Block Grant (CDBG) funding provides down
payment assistance to two to three first-time homebuyers.
PROGRAM EXPENDITURE COMMENT
x Funding for New Home Program activities is provided by a variety of sources
including the Affordable Housing Trust Fund (AHTF), Community Development
Block Grant (CDBG), Housing and Redevelopment Fund, and Local Affordable
Housing Aid (LAHA).
x These funding sources do not provide for administrative costs. Administrative costs
are covered by the HRA General Fund or, occasionally, repayments of loans made
from certain sources.
x CDBG revenues and expenditures have been moved from the AHTF to the New
Home Program because the revenues must be spent within a defined time period
and can’t accumulate in a trust fund. Revenues include recaptured funds from two
292929
loans that were repaid. While the increases to the 2024 Revised and 2025 Proposed
budgets seem large, there is an equal and off-setting reduction from the AHTF
budget.
303030
NEW HOME PROGRAMFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
NEW HOME PROGRAM - 91010BUSINESS UNIT:
Intergovernmental Revenues
4214 - - 100,000 40,000CDBG Grants $$$$
- 100,000 40,000- Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 9,787 - - Investment Earnings $$$$
4609 510 - - - Change in Fair Value
4648 20,000 10,000 - - Loan Repayment Revenue
10,000 - - 30,297Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - - 2,390 2,400Operating Transfers In $$$$
- 2,390 2,400- Other Financing Sources Total $$$$
NEW HOME PROGRAM TOTAL 10,000 102,390 42,40030,297$$$$
313131
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
NEW HOME PROGRAMFUND:
Community DevelopmentDEPARTMENT:
NEW HOME PROGRAM - 91010BUSINESS UNIT:
Other Services & Charges
6103 2,012 1,500 2,000 2,000Professional Services -General $$$$
6301 186 170 190 200Advertising & Publication
6315 - 200 200 200Other Contractual Services
6511 - - 100,000 40,000Rehab Loan Program
1,870 102,390 42,4002,198Other Services & Charges Total $$ $$
1,870 102,390 42,4002,198NEW HOME PROGRAM TOTAL $$ $$
323232
BUDGET SUMMARY - HOUSING REHABILITATION PROGRAM FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 331,602$ 335,684$ 335,684$ 264,164$
Revenues:
Miscellaneous Revenues:
Loan Repayments 22,800 10,000 10,000 10,000
Interest Earnings 12,751 - - -
Other - 250 330 660
Total Revenues 35,551 10,250 10,330 10,660
Expenditures:
Other Services and Charges 40,551 57,000 81,850 71,850
Total Expenditures 40,551 57,000 81,850 71,850
Excess (Deficiency) of Revenues
Over Expenditures (5,000) (46,750) (71,520) (61,190)
Transfers From (To) Other Funds:
General Fund 9,082 46,750 - -
Net Transfers 9,082 46,750 - -
FUND BALANCE - DECEMBER 31 335,684$ 335,684$ 264,164$ 202,974$
33
HOUSING REHABILITATION PROGRAMS
MISSION STATEMENT
To assist in improving and maintaining the city’s aging housing stock by providing
financial and technical assistance to homeowners to make general home improvements
and undertake expansions to accommodate their specific needs and desires.
PROGRAM FOCUS
The Richfield rehabilitation programs include the following:
x The Home Energy Squad Enhanced Program offers home visits at a reduced cost to
educate homeowners on saving energy and making energy-saving improvements.
Visits are offered free to low-income households. Virtual consultations are also
available.
x The Architectural Consultation Program provides homeowners with a low-cost, two-
hour consultation with an architect to discuss project design.
x The Center for Energy and Environment Remodeling Advisor (CEE) provides free in-
home visits with a Remodeling Advisor to offer homeowners assistance with project
planning for home repair and remodeling projects.
x Fix-Up Fund reduced interest rate rehabilitation loans are offered to households
earning up to 115% of the Area Median Income. Demand for this program varies as
interest rates rise and fall.
2024 HIGHLIGHTS
x Continued to offer the Home Energy Squad Enhanced program to Richfield
residents at a reduced rate and providing it for free to income-qualified households.
Budget allows for up to 100 visits.
x Worked with the Center for Energy and Environment to offer remodeling advising
visits. Budget allows for up to 50 visits in 2024.
x Continued to offer architectural consultations to homeowners planning remodeling
projects. $50 co-pay is charged to the homeowner for a two-hour, in-home visit.
Budget allows for up to 50 visits in 2024.
x There was increased interest in reduced interest rate Fix-Up loans, and funds were
used up early in 2024. The Revised 2024 budget increased funds for the program,
allowing for an additional 4-5 loans. Changes were made to the program to limit the
amount of the loan that would qualify for the program in order to serve more
households.
343434
2025 PROGRAM GOALS
x To continue to promote use of the Home Energy Squad Enhanced Program,
including the free cost to low-income homeowners. (City Council Priority/Outcome
2c)
x To continue assisting eligible homeowners in making repairs and improving their
property, thus maintaining and improving the existing housing stock. (City Council
Priority/Outcome 2b and c)
x The budget for the reduced interest rate Fix-Up Fund is increased from $25,000 to
$40,000.
x To utilize housing rehabilitation and remodeling programs as a means of achieving
HRA and City Council objectives to maintain and improve the housing stock and
increase housing diversity. (City Council Priority/Outcome 2b and c)
PROGRAM EXPENDITURE COMMENT x Loan repayments are used to fund housing rehabilitation programs. In recent
years, repayments have exceeded expenses and cash reserves have
accumulated. In 2024 and 2025, cash reserves will fund these programs.
353535
REHABILITATION LOAN PROGRAMFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
REHABILITATION LOAN PROGRAM - 91300BUSINESS UNIT:
Miscellaneous Revenues
4607 12,125 - - - Investment Earnings $$$$
4609 626 - - - Change in Fair Value
4644 - 250 330 660Other Miscellaneous Revenues
4648 22,800 10,000 10,000 10,000Loan Repayment Revenue
10,250 10,330 10,66035,551Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 9,082 46,750 - - Operating Transfers In $$$$
46,750 - - 9,082Other Financing Sources Total $$$$
REHABILITATION LOAN PROGRAM TOTAL 57,000 10,330 10,66044,633$$$$
363636
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
REHABILITATION LOAN PROGRAMFUND:
Community DevelopmentDEPARTMENT:
REHABILITATION LOAN PROGRAM - 91300BUSINESS UNIT:
Other Services & Charges
6103 15,630 31,750 31,750 31,750Professional Services -General $$$$
6301 - 250 100 100Advertising & Publication
6511 24,921 25,000 50,000 40,000Rehab Loan Program
57,000 81,850 71,85040,551Other Services & Charges Total $$ $$
57,000 81,850 71,85040,551REHABILITATION LOAN PROGRAM TOTAL $$ $$
373737
BUDGET SUMMARY - SECTION 8 HOUSING ASSISTANCE PROGRAM FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 (34,652)$ (34,652)$ (39,597)$ (39,597)$
Revenues:
Intergovernmental Revenues -
Federal Housing Assistance Plan 1,711,588 1,950,000 1,975,000 2,200,000
Miscellaneous Revenues:
Other 961 - - -
Total Revenues 1,712,549 1,950,000 1,975,000 2,200,000
Expenditures:
Other Services and Charges 1,717,494 1,950,000 1,975,000 2,200,000
Total Expenditures 1,717,494 1,950,000 1,975,000 2,200,000
Excess (Deficiency) of Revenues
Over Expenditures (4,945) - - -
FUND BALANCE - DECEMBER 31 (39,597)$ (34,652)$ (39,597)$ (39,597)$
38
SECTION 8 PROGRAM
MISSION STATEMENT
To provide rent assistance to low-income households through the administration of the
federally funded Section 8 Rent Assistance Program.
PROGRAM FOCUS
The purpose of the Housing Assistance Program is to provide rent assistance to low-
income households through administration of the Federal Section 8 Rent Assistance
Program funded by the Department of Housing and Urban Development (HUD).
Staff takes applications, maintains a waiting list, and issues housing vouchers to eligible
applicants. In addition to 195 - 200 vouchers utilized by the HRA, the program also
administers services to approximately 60 - 75 “portable” clients. These are clients who
have received their subsidy in other jurisdictions and have moved to use their certificate
or voucher in Richfield.
Biennial housing quality inspections are conducted by Section 8 staff to ensure
minimum housing quality standards are maintained. Income adjustments and social
service referrals are routinely made to ensure client needs are met.
Though the program is not limited to Richfield residents, priority is given to those who
live or work in Richfield. A portion of the program administrative costs are reimbursed
by HUD, with the remainder being subsidized by the HRA, when needed.
2024 HIGHLIGHTS.
x Managed waiting list of 200 families from 2022 waiting list.
x Updated Administrative Plan to reflect regulatory changes by HUD.
x Staff trained for new HOTMA and NSPIRE-V regulatory changes that will be
effective for 2025.
x Richfield’s Section 8 staff was recognized by HUD staff for their exceptional
administration of the program.
2025 PROGRAM GOALS
x Maintain a high percentage of Section 8 vouchers under lease.
x Work to maintain HUD designation of “high performer.”
x Continue to provide excellent customer service to clients and landlords.
x Provide education and outreach to apartment owners and service providers
about the program.
393939
x Implement HOTMA and NSPIRE-V guidelines as required by HUD.
PROGRAM EXPENDITURE COMMENT
x Housing Assistance Payments and administrative fees have been increased by
HUD. Any shortfalls are covered by the HRA General Fund; however, HUD reserves
are expected to adequately cover shortfalls in 2024 and 2025. HUD encourages the
use of these reserves.
404040
RICHFIELD HAPFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
RICHFIELD HAP - 91500BUSINESS UNIT:
Intergovernmental Revenues
4216 1,711,588 1,950,000 1,975,000 2,200,000Section 8 $$$$
1,950,000 1,975,000 2,200,0001,711,588Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 915 - - - Investment Earnings $$$$
4609 45 - - - Change in Fair Value
- - - 960Miscellaneous Revenues Total $$$$
RICHFIELD HAP TOTAL 1,950,000 1,975,000 2,200,0001,712,548$$$$
414141
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
RICHFIELD HAPFUND:
Community DevelopmentDEPARTMENT:
RICHFIELD HAP - 91500BUSINESS UNIT:
Other Services & Charges
6502 2,352,619 2,700,000 2,600,000 2,900,000HAP Payments $$$$
6503 (635,125) (750,000) (625,000) (700,000)Portability HAP Credit
1,950,000 1,975,000 2,200,0001,717,494Other Services & Charges Total $$ $$
1,950,000 1,975,000 2,200,0001,717,494RICHFIELD HAP TOTAL $$ $$
424242
BUDGET SUMMARY - SECTION 8 ADMINISTRATION FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 145,470$ 136,419$ 184,904$ 184,904$
Revenues:
Intergovernmental Revenues -
Section 8 Administration Fee 274,257 240,000 240,000 270,000
Miscellaneous Revenues:
Port In Administrative Fees 81,913 85,000 85,000 80,000
Interest Earnings 7,207 - - -
Miscellaneous Revenues 1,262 - 1,500 1,500
Total Revenues 364,640 325,000 326,500 351,500
Expenditures:
Personal Services 228,320 243,050 240,970 252,110
Other Services and Charges 96,885 106,520 119,700 127,100
Total Expenditures 325,205 349,570 360,670 379,210
Excess (Deficiency) of Revenues
Over Expenditures 39,434 (24,570) (34,170) (27,710)
Transfers From (To) Other Funds:
General Fund - - 34,170 27,710
Net Transfers - - 34,170 27,710
FUND BALANCE - DECEMBER 31 184,904$ 111,849$ 184,904$ 184,904$
43
SECTION 8 ADMINFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
Section 8 Admin - 91501BUSINESS UNIT:
Intergovernmental Revenues
4217 274,257 240,000 240,000 270,000Admin Fee $$$$
240,000 240,000 270,000274,257Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 6,854 - - - Investment Earnings $$$$
4609 353 - - - Change in Fair Value
4638 81,913 85,000 85,000 80,000Portability Administration
4644 1,262 - 1,500 1,500Other Miscellaneous Revenues
85,000 86,500 81,50090,382Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 34,170 27,710Operating Transfers In $$$$
34,170 27,710Other Financing Sources Total $$$$
Section 8 Admin TOTAL 325,000 360,670 379,210364,639$$$$
444444
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
SECTION 8 ADMINFUND:
Community DevelopmentDEPARTMENT:
Section 8 Admin - 91501BUSINESS UNIT:
Personal Services
6051 228,273 243,050 240,970 252,110Interdepartmental Labor $$$$
6054 28,375 - - - Interdepartmental Labor Credit
243,050 240,970 252,110256,648Personal Services Total $$ $$
Other Services & Charges
6103 12,746 14,000 14,000 15,000Professional Services -General $$$$
6201 6,560 6,790 6,790 6,990Rents & Leases
6202 20,020 20,720 20,760 24,450Data Processing Rental
6301 - 350 350 500Advertising & Publication
6302 - 560 400 560Communications
6303 450 700 4,500 1,000Professional Development
6305 478 500 500 500Subscriptions & Memberships
6401 1,785 2,500 2,200 2,500Office Supplies
6402 1,570 1,700 1,700 1,900Copy Charges
6403 1,968 2,700 2,500 2,500Postage
6414 1,334 1,000 1,000 1,200Other Supplies
6501 49,974 55,000 65,000 70,000Portability Administrative Fee
106,520 119,700 127,10096,885Other Services & Charges Total $$ $$
349,570 360,670 379,210353,533Section 8 Admin TOTAL $$ $$
454545
BUDGET SUMMARY - AFFORDABLE HOUSING TRUST FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 1,158,196$ 185,928$ 985,155$ 564,155$
Revenues:
Intergovernmental Revenues -
CDBG Grant 100,000 - - -
Miscellaneous Revenues -
Interest & other 42,526 50 - -
Total Revenues 142,526 50 - -
Expenditures:
Other Services and Charges 215,567 181,000 181,000 986,000
Capital Outlay 100,000 - 240,000 240,000
Total Expenditures 315,567 181,000 421,000 1,226,000
Excess (Deficiency) of Revenues
Over Expenditures (173,041) (180,950) (421,000) (1,226,000)
Transfers From (To) Other Funds:
General Fund - - - -
Capital Reservel Fund - - - -
Special Revenue Fund - - 985,000
Net Transfers - - - 985,000
FUND BALANCE - DECEMBER 31 985,155$ 4,978$ 564,155$ 323,155$
46
AFFORDABLE HOUSING TRUST FUND
MISSION STATEMENT
To fund the rehabilitation and preservation of existing affordable housing, promote the
development of additional affordable housing, and assist individuals with rental and
down payment assistance.
FUND FOCUS
The City created an Affordable Housing Trust Fund in 2020 to facilitate the creation and
preservation of affordable housing in the community. The Trust Fund can provide loans
and grants to housing developers to create new affordable rental and owner-occupied
housing; for the rehabilitation and preservation of existing multi-family residential rental
housing; and can offer rental and homeownership assistance to persons of very low,
low, and moderate income.
2024 HIGHLIGHTS
x First-time homebuyers continue to utilize the HRA’s First-Time Homebuyer
Program. Typically the HRA issues 10-11 loans annually; in 2024, 11 loans were
issued by the end of June. Additional funding in the 2024 Revised Budget
provides for 4-5 more loans.
x Funding is provided for three to four down payment assistance loans for low-
income buyers of new manufactured homes in the Woodlawn Terrace
manufactured home community.
x Funding is provided for the West Hennepin Affordable Housing Land Trust
(WHAHLT) to purchase and remodel 2-3 homes and sell them to homebuyers
earning less than 80 percent of the Area Median Income. The land trust model
provides 99 years of affordability.
2025 FUND GOALS
x Provide funding for the purchase and rehabilitation of two to three homes by the
West Hennepin Affordable Housing Land Trust (WHAHLT). The homes will be
sold to income-qualified homebuyers using the land trust model. (City Council
Priority/Outcome 2c)
x Provide up to $500,000 in financial assistance to Aster Commons, a 38-unit
supportive housing development proposed for 6613-25 Portland Avenue, in the
form of a development grant. (City Council Priority/Outcome 2b and c, and 3c)
47
Provide up to $485,000 in financial assistance to Penn Station, a 40-unit
affordable housing development proposed for 6501-25 Penn Avenue, in the form
of a development grant.
FUND EXPENDITURE COMMENT
The budget for the Affordable Housing Trust Fund must also be approved by the
City Council.
At the end of 2022, $750,000 in pooled tax increment was transferred to the
Trust Fund. Because the State Auditor does not allow co-mingling of tax
increment with other funds, separate codes are established for these funds;
however all funds are shown in these worksheets for simplicity. Allowable use of
the special legislation funds are also more restrictive (e.g., no down payment or
rental assistance), as defined by special legislation approved by the State
Legislature in 2021.
In order to fund development grants, $985,000 will be transferred from the
Temporary Spending Plan funds to the Special Legislation Funds.
48
AFFORDABLE HOUSING TRUSTFUND:
DETAIL REVENUES BY FUND
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
Intergovernmental Revenues
4214 100,000 --- CDBG Grants $$$$
--- 100,000Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 40,466 --- Investment Earnings $$$$
4609 2,050 -- - Change in Fair Value
4622 10 50 - - Contributions & Donations
50 -- 42,526Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 --- 985,000Operating Transfers In $$$$
-- 985,000-Other Financing Sources Total $$$$
AFFORDABLE HOUSING TRUST TOTAL 50 - 985,000142,526$$$$
4949
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
AFFORDABLE HOUSING TRUSTFUND:
Community DevelopmentDEPARTMENT:
Affordable Housing Trust - 91530BUSINESS UNIT:
Other Services & Charges
6103 567 1,000 1,000 1,000Professional Services -General $$$$
6511 215,000 180,000 180,000 985,000Rehab Loan Program
181,000 181,000 986,000215,567Other Services & Charges Total $$ $$
Capital Outlay
7110 100,000 - 240,000 240,000Land Purchases $$$$
- 240,000 240,000100,000Capital Outlay Total $$ $$
181,000 421,000 1,226,000315,567Affordable Housing Trust TOTAL $$ $$
505050
BUDGET SUMMARY - LOCAL AFFORDABLE HOUSING AID
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 -$ -$ 133,600$
Revenues:
Intergovernmental Revenue:
Grant - 233,600 400,000
Total Revenues - - 233,600 400,000
Expenditures:
Other Services and Charges 100,000 260,000
Total Expenditures - - 100,000 260,000
Excess (Deficiency) of Revenues
Over Expenditures - - 133,600 140,000
Transfers From (To) Other Funds:
General Fund - -
Net Transfers - - - -
FUND BALANCE - DECEMBER 31 -$ -$ 133,600$ 273,600$
51
LAHA -LOCAL AFFORDABLE HOUSING AIDFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
LAHA - Local Affordable Housing Aid - 95100BUSINESS UNIT:
Intergovernmental Revenues
4234 233,600 400,000Low Income Housing Aid $$$$
233,600 400,000Intergovernmental Revenues Total $$$$
LAHA - Local Affordable Housing Aid TOTAL 233,600 400,000$$$$
525252
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
LAHA -LOCAL AFFORDABLE HOUSING AIDFUND:
Community DevelopmentDEPARTMENT:
LAHA - Local Affordable Housing Aid - 95100BUSINESS UNIT:
Other Services & Charges
6511 100,000 260,000Rehab Loan Program $ $ $$
100,000 260,000Other Services & Charges Total $$ $$
100,000 260,000LAHA - Local Affordable Housing Aid TOTAL $$ $$
535353
BUDGET SUMMARY - BRING IT HOME
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 -$ -$ -$
Revenues:
Intergovernmental Revenue:
Grant 474,000
Total Revenues - - - 474,000
Expenditures:
Personal Services - - - 40,000
Other Services and Charges 138,995
Total Expenditures - - - 178,995
Excess (Deficiency) of Revenues
Over Expenditures - - - 295,005
Transfers From (To) Other Funds:
General Fund - -
Net Transfers - - - -
FUND BALANCE - DECEMBER 31 -$ -$ -$ 295,005$
54
BRING IT HOMEFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
BRING IT HOME - 95150BUSINESS UNIT:
Intergovernmental Revenues
4244 474,000Grants Other $$$$
474,000Intergovernmental Revenues Total $$$$
BRING IT HOME TOTAL 474,000$$$$
555555
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
BRING IT HOMEFUND:
Community DevelopmentDEPARTMENT:
BRING IT HOME - 95150BUSINESS UNIT:
Personal Services
6051 40,000Interdepartmental Labor $ $ $$
40,000Personal Services Total $$ $$
Other Services & Charges
6103 2,000Professional Services -General $ $ $$
6205 5,000Maintenance & Repairs
6301 750Advertising & Publication
6302 750Communications
6401 1,000Office Supplies
6402 500Copy Charges
6403 320Postage
6414 675Other Supplies
6502 128,000HAP Payments
138,995Other Services & Charges Total $$ $$
178,995BRING IT HOME TOTAL $$ $$
565656
THIS PAGE WAS LEFT BLANK INTENTIONALLY
575757
CAPITAL PROJECTS FUNDS
58585858
TEMPORARY SPENDING PLAN
MISSION STATEMENT
In 2022, the City and HRA adopted a temporary spending plan and authorized the use
of unobligated tax increment from existing tax increment financing districts to assist new
development or substantial rehabilitation in order to create or retain jobs.
FUND FOCUS
In 2021, to counter negative impacts caused by the COVID-19 pandemic, the Minnesota
Legislature provided temporary authority to cities to use unobligated tax increment to
help stimulate private development that would not occur without assistance before
December 31, 2025. The City/HRA may provide loans, interest rate subsidies, or
assistance in any form to private development, as long as it consists of new
construction or substantial rehabilitation of buildings and if doing so will create or retain
jobs in the State, including construction jobs. The approved Spending Plan authorized
the transfer of unobligated tax increment to be used on projects meeting the intent of
the temporary legislation. Projects must begin construction before December 31, 2025.
Preference for financial assistance will be based on goals identified by the
Comprehensive Plan and the priorities identified in the City’s Strategic Plan.
2024 – 2025 FUND GOALS
x Explore opportunities to help stimulate private development. High interest rates
have compounded economic challenges; however, staff continues to meet
regularly with prospective developers and business owners. (City Council
Priority/Outcome 2a and b)
FUND EXPENDITURE COMMENT
x Three separate funds were established under the Temporary Spending
legislation and funds were designated from three tax increment districts,
including Interchange West, Urban Village, and City Bella. Any funds not used
before December 31, 2025, must be returned to their respective tax increment
districts.
x $4.4 million in pooled tax increment was transferred to Temporary Spending Plan
funds.
59
Temporary Legislation Budget:
2024 R 2025 Proposed
$30,000 Support duplex
construction at 6326 14th Ave
$985,000 Transfer out to Special Leg.
AHTF (Aster Commons/Penn
Station)
This narrative is provided to acknowledge the transfer of these funds and the
temporary added flexibility; however, it is impossible to forecast specific
expenditures as they will be in response to development opportunities and
private development interest.
6060
BUDGET SUMMARY - DEVELOPMENT OPPORTUNITIES
2023 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 3,352,266$ 2,950,496$ 3,368,081$ 7,588,081$
Revenues:
Intergovernmental
Local Grant 12,000 - 180,000 -
Contributions & Donations - - 4,220,000 -
Miscellaneous Revenues-
Investment Earnings 16,234 - - -
Other Revenues - - - -
Total Revenues 28,234 - 4,400,000 -
Expenditures:
Other Services and Charges 24,231 31,500 199,500 32,500
Capital Outlay 12,000 33,000 -
Total Expenditures 36,231 31,500 232,500 32,500
Excess (Deficiency) of Revenues
Over Expenditures (7,997) (31,500) 4,167,500 (32,500)
Transfers From (To) Other Funds:
Development Funds (Special Revenue Fund)23,811
Development Funds (Capital Fund)31,500 52,500 32,500
Net Transfers 23,811 31,500 52,500 32,500
FUND BALANCE - DECEMBER 31 3,368,081$ 2,950,496$ 7,588,081$ 7,588,081$
2024
61
DEVELOPMENT OPPORTUNITIES FUND
MISSION STATEMENT
Support emerging redevelopment efforts in areas not currently located within TIF
districts using appropriate revenue.
PROGRAM FOCUS
The purpose of this program is to identify and facilitate significant, large scale
redevelopment opportunities and/or to respond to purchase opportunities of smaller,
blighted commercial sites which are located within the Richfield Redevelopment Project
area, but outside of any established TIF district. Interchange West, Lyndale Gateway,
Lakes at Lyndale, City Bella and Cedar Point were all concepts originally programmed
through the Development Opportunities Fund before becoming independent projects.
2024 HIGHLIGHTS
x Undertook due diligence work to accept the donation of 1620 – 78th Street
and continued to explore opportunities for redevelopment of 3.7 acres near
the 77th Street underpass.
x Held regular meetings with area developers to present a map of
“Redevelopment Opportunity Sites” in Richfield and responded to
development interests in various scattered sites.
x Provided financial assistance to the Woodlawn Terrace Cooperative through
a grant from the Metropolitan Council to bring three to four new, larger units
into the manufactured home community at an affordable price.
2025 PROGRAM GOALS
x Provide support to redevelopment projects as opportunities arise. (City
Council Priority/Outcome 2b)
x Support approved projects until TIF resources are received.
PROGRAM EXPENDITURE COMMENT
x The Development Fund supports the acquisition of commercial properties. Qualified
costs for substandard properties are funded by the Housing and Redevelopment
Fund (HRF) and the Development Fund covers the costs that cannot be covered by
the HRF, including property maintenance and facilitating the development and re-
sale of the properties.
62
DEVELOPMENT OPPORTUNITIESFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
DEVELOPMENT OPPORTUNITIES - 92001BUSINESS UNIT:
Intergovernmental Revenues
4290 12,000 - 180,000 - Other Local Grants $$$$
- 180,000 - 12,000Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 15,464 - - - Investment Earnings $$$$
4609 770 - - - Change in Fair Value
4622 - 4,220,000 - Contributions & Donations
- 4,220,000 - 16,234Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 23,811 31,500 52,500 32,500Operating Transfers In $$$$
31,500 52,500 32,50023,811Other Financing Sources Total $$$$
DEVELOPMENT OPPORTUNITIES TOTAL 31,500 4,452,500 32,50052,045$$$$
63
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
DEVELOPMENT OPPORTUNITIESFUND:
Community DevelopmentDEPARTMENT:
DEVELOPMENT OPPORTUNITIES - 92001BUSINESS UNIT:
Other Services & Charges
6103 22,579 25,000 21,000 21,000Professional Services -General $$$$
6205 - 20,000 - Maintenance & Repairs
6310 808 5,000 3,000 3,000Taxes & Licenses
6315 844 1,500 8,500 8,500Other Contractual Services
6511 - 147,000 - Rehab Loan Program
31,500 199,500 32,50024,231Other Services & Charges Total $$ $$
Capital Outlay
7310 12,000 33,000 - Site Improvements $$$$
33,000 - 12,000Capital Outlay Total $$ $$
31,500 232,500 32,50036,231DEVELOPMENT OPPORTUNITIES TOTAL $$ $$
64
BUDGET SUMMARY - LAKES AT LYNDALE
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 26,315$ 26,315$ 28,094$ 43,094$
Revenues:
Miscellaneous Revenues:
Interest 1,779 - - -
Total Revenues 1,779 - - -
Expenditures:
Other Services and Charges 409 3,250 3,250 3,250
Capital Outlay - 18,000 5,000 23,000
Total Expenditures 409 21,250 8,250 26,250
Excess (Deficiency) of Revenues
Over Expenditures 1,370 (21,250) (8,250) (26,250)
Transfers From (To) Other Funds:
Special Revenue Fund - - - -
Development Funds (Capital Fund)409 21,250 23,250 21,250
Net Transfers 409 21,250 23,250 21,250
FUND BALANCE - DECEMBER 31 28,094$ 26,315$ 43,094$ 38,094$
65
THE LAKES AT LYNDALE/DOWNTOWN
MISSION STATEMENT
The Lakes at Lyndale area has long been considered the City’s downtown and has
been successfully redeveloping over the past 25 years as part of a long-range master
plan for the area. The area is centered at 66th Street and Lyndale Avenue, radiating
west to I-35W and north to Highway 62/Crosstown. The Lakes at Lyndale master plan
goal is to make this area Richfield’s thriving urban center, providing more housing
opportunities, upgrading business properties and offering connections to a fuller
enjoyment of both Wood Lake Nature Center and Richfield Lake, as well as the area’s
many amenities. As the City continues to focus on Downtown, and reconsider the
actual boundaries of that area, we will also consider how to express that in budget and
financial documents.
PROGRAM FOCUS
The long-range master plan focuses redevelopment based on seven themes:
- Nature: The lakes are a natural centerpiece to an urban downtown.
- Housing: More choices and new locations for living.
- People: Connecting pathways for walking.
- Transit: Bringing efficient transit service closer to residents.
- Identity: Distinctive look, visual appeal and connection.
- Gateways: Attractive front doors to the community.
- Business: Opportunities for investment and creating value.
2024 HIGHLIGHTS
x Inventory of existing businesses to identify segments of the market that may
be lacking.
x Application for grant funds to initiate a branding strategy for the entire
Downtown area will be submitted in the fall.
2025 PROGRAM GOALS
x Undertake branding initiative to guide future (2026) small area plan for
Downtown.
x Continued implementation of area way-finding signage program, incorporating
new branding guidelines.
x Continue to pursue additional redevelopment opportunities in the area.
666666
x Work with Engineering to continue to explore opportunities to increase
pedestrian safety at 64th Street crossing of Lyndale Avenue.
PROGRAM EXPENDITURE COMMENT
x The Lakes at Lyndale Master Plan and expenses incurred in the ongoing general
planning for redevelopment of the downtown represents one fund.
x Approximately $40,000 is budgeted for installation of way-finding signage, benches,
trash containers and other amenities in the Lakes at Lyndale area. This expenditure
has been split between 2024 and 2025.
x As development projects occur, a separate fund is established for each project.
x Reimbursements of development related expenses incurred by the HRA come from
the developer once a Contract for Redevelopment is in place.
676767
LAKES AT LYNDALEFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
LAKES AT LYNDALE - 92900BUSINESS UNIT:
Miscellaneous Revenues
4607 1,693 - - - Investment Earnings $$$$
4609 86 - - - Change in Fair Value
- - - 1,779Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 409 21,250 8,250 26,250Operating Transfers In $$$$
21,250 8,250 26,250409Other Financing Sources Total $$$$
LAKES AT LYNDALE TOTAL 21,250 8,250 26,2502,188$$$$
686868
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
LAKES AT LYNDALEFUND:
Community DevelopmentDEPARTMENT:
LAKES AT LYNDALE - 92900BUSINESS UNIT:
Other Services & Charges
6103 408 3,250 3,250 3,250Professional Services -General $$$$
3,250 3,250 3,250408Other Services & Charges Total $$ $$
Capital Outlay
7330 - 18,000 5,000 23,000Streets & Sidewalks $$$$
18,000 5,000 23,000- Capital Outlay Total $$ $$
21,250 8,250 26,250408LAKES AT LYNDALE TOTAL $$ $$
696969
BUDGET SUMMARY - LYNDALE GARDEN CENTER
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 (18,908)$ (18,908)$ (14,347)$ (14,347)$
Expenditures:
Other Services and Charges 39 4,600 4,600 4,600
Total Expenditures 39 4,600 4,600 4,600
Transfers From (To) Other Funds:
General Fund 4,600 4,600 4,600 4,600
Net Transfers 4,600 4,600 4,600 4,600
FUND BALANCE - DECEMBER 31 (14,347)$ (18,908)$ (14,347)$ (14,347)$
707070
LYNDALE GARDEN CENTERFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
LYNDALE GARDEN CENTER - 93300BUSINESS UNIT:
Other Financing Sources
8051 4,600 4,600 4,600 4,600Operating Transfers In $$$$
4,600 4,600 4,6004,600Other Financing Sources Total $$$$
LYNDALE GARDEN CENTER TOTAL 4,600 4,600 4,6004,600$$$$
717171
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
LYNDALE GARDEN CENTERFUND:
Community DevelopmentDEPARTMENT:
LYNDALE GARDEN CENTER - 93300BUSINESS UNIT:
Other Services & Charges
6103 39 4,600 4,600 4,600Professional Services -General $$$$
4,600 4,600 4,60039Other Services & Charges Total $$ $$
4,600 4,600 4,60039LYNDALE GARDEN CENTER TOTAL $$ $$
727272
BUDGET SUMMARY - CEDAR POINT COMMONS
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 (140,697)$ (138,697)$ (137,697)$ (135,697)$
Expenditures:
Other Services and Charges - 1,000 1,000 1,000
Total Expenditures - 1,000 1,000 1,000
Transfers From (To) Other Funds:
Capital Project - - - -
General Fund 3,000 3,000 3,000 3,000
Net Transfers 3,000 3,000 3,000 3,000
FUND BALANCE - DECEMBER 31 (137,697)$ (136,697)$ (135,697)$ (133,697)$
737373
CEDAR POINT COMMONS
PROGRAM FOCUS
The purpose of this program was to promote and facilitate the redevelopment of the
Cedar Point Commons area and to administer the tax abatement and other public
support needed for the redevelopment.
PROGRAM EXPENDITURE COMMENT
With the tax abatement district now closed (2022), the activity in this fund represents
only the repayment of expenses incurred during the life of the district and minor
budgeted funds for possible legal expenses.
747474
CEDAR POINT REDEVELOPMENT AREAFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
CEDAR POINT REDEVELOPMENT AREA - 93600BUSINESS UNIT:
Other Financing Sources
8051 3,000 3,000 3,000 3,000Operating Transfers In $$$$
3,000 3,000 3,0003,000Other Financing Sources Total $$$$
R POINT REDEVELOPMENT AREA TOTAL 3,000 3,000 3,0003,000$$$$
757575
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
CEDAR POINT REDEVELOPMENT AREAFUND:
Community DevelopmentDEPARTMENT:
CEDAR POINT REDEVELOPMENT AREA - 93600BUSINESS UNIT:
Other Services & Charges
6103 - 1,000 1,000 1,000Professional Services -General $$$$
1,000 1,000 1,000- Other Services & Charges Total $$ $$
1,000 1,000 1,000- AR POINT REDEVELOPMENT AREA TOTAL $$ $$
767676
BUDGET SUMMARY - CEDAR CORRIDOR
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 683,396$ 683,396$ 710,088$ 721,788$
Revenues:
Intergovernmental - - - -
Local Grant -
Miscellaneous Revenues:
Interest 26,692 - - -
Other - - -
Total Revenues 26,692 - - -
Expenditures:
Other Services and Charges - 12,700 1,000 1,000
Capital Outlay - - - -
Total Expenditures - 12,700 1,000 1,000
Excess (Deficiency) of Revenues
Over Expenditures 26,692 (12,700) (1,000) (1,000)
Transfers From (To) Other Funds:
Development TIF Funds - 12,700 12,700 12,700
General Fund - - - -
Net Transfers - 12,700 12,700 12,700
FUND BALANCE - DECEMBER 31 710,088$ 683,396$ 721,788$ 733,488$
777777
CEDAR CORRIDOR
MISSION STATEMENT
Promote and support redevelopment efforts in the Cedar Corridor, in conformance with
the Cedar Corridor Redevelopment Master Plan.
PROGRAM FOCUS
The purpose of this program is to promote the redevelopment of the affected blocks in
the 87 db area that are impacted by aircraft noise from the runway.
PROGRAM GOALS
x Administer the tax increment financing and other financial and administrative
needs associated with the redevelopment project.
x Reassess the feasibility and location of further redevelopment of the Cedar
Corridor area and Richfield Parkway routing.
x More proactively market HRA owned properties at 7200 Cedar and 1600 and
1710 E 78th Street to correspond to the construction of the 77th Street tunnel.
x Pursue grant funding as appropriate and available to facilitate redevelopment
and implement project components.
PROGRAM EXPENDITURE COMMENT
x The majority of the initial costs were funded through an interfund loan from the HRA
General Fund, which will eventually be reimbursed from Tax Increment Financing
(TIF) funds generated by the RF64 townhomes.
x 2024R and 2025 Budgets reduce programmed funding to a minimal baseline.
Reassessment of the Cedar Corridor area is not in the current workplan.
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CEDAR CORRIDOR TIFFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
CEDAR CORRIDOR - 93650BUSINESS UNIT:
Miscellaneous Revenues
4607 25,382 - - - Investment Earnings $$$$
4609 1,310 - - - Change in Fair Value
- - - 26,692Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - 12,700 1,000 1,000Operating Transfers In $$$$
12,700 1,000 1,000- Other Financing Sources Total $$$$
CEDAR CORRIDOR TOTAL 12,700 1,000 1,00026,692$$$$
797979
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
CEDAR CORRIDOR TIFFUND:
Community DevelopmentDEPARTMENT:
CEDAR CORRIDOR - 93650BUSINESS UNIT:
Other Services & Charges
6103 - 12,200 1,000 1,000Professional Services -General $$$$
6301 - 500 - - Advertising & Publication
12,700 1,000 1,000- Other Services & Charges Total $$ $$
12,700 1,000 1,000- CEDAR CORRIDOR TOTAL $$ $$
808080
BUDGET SUMMARY- PENN CORRIDOR
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 92,934$ 92,934$ 89,265$ 89,265$
Revenues:
Intergovernmental
Local Grants - - - -
Interest (2) - - -
Total Revenues (2) - - -
Expenditures:
Other Services and Charges 10,986 6,000 6,000 6,850
Capital Outlay - 25,500 25,500 25,500
Total Expenditures 10,986 31,500 31,500 32,350
Excess (Deficiency) of Revenues
Over Expenditures (10,989) (31,500) (31,500) (32,350)
Transfers From (To) Other Funds:
Development Funds (Capital)7,320 31,500 31,500 31,500
Net Transfers 7,320 31,500 31,500 31,500
FUND BALANCE - DECEMBER 31 89,265$ 92,934$ 89,265$ 88,415$
81
PENN CORRIDOR PROGRAM
MISSION STATEMENT
To guide, encourage, and facilitate the revitalization and redevelopment of Penn
Avenue between Highway 62 and 67th Street.
PROGRAM FOCUS
The purpose of this program is to foster the redevelopment of and reinvestment in the
Penn Corridor to strengthen the economic vitality of the corridor, support local
businesses, and to further the vision of the Penn Avenue Mainstreet Revitalization.
2024 HIGHLIGHTS
x Continued to pursue redevelopment opportunities with developers interested
in projects in the Penn Avenue Corridor.
x Purchased the abandoned, tax-forfeited commercial property at 6525 Penn
Avenue using the Housing and Redevelopment Fund. Ongoing property
maintenance will be covered by the Penn Corridor Program.
x Work with affordable housing developer to consider development of HRA
properties at 6501 and 6525 Penn Avenue.
2025 PROGRAM GOALS
x Continue to guide, encourage, and facilitate redevelopment and reinvestment
within the Corridor as opportunities arise and as practicable. (City Council
Priority/Outcome 2b)
x Consider strategic acquisitions along the Corridor as opportunities become
available.
x Monitor revitalization and redevelopment efforts to ensure conformance with
the Master Plan and Design Guidelines, as well as compliance with City
Codes.
x Continue to seek outside funding sources to assist with revitalization and
redevelopment of the corridor.
828282
PENN CORRIDORFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
PENN CORRIDOR - 93750BUSINESS UNIT:
Miscellaneous Revenues
4607 (2)- - - Investment Earnings $$$$
- - - (2)Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 7,320 31,500 31,500 32,350Operating Transfers In $$$$
31,500 31,500 32,3507,320Other Financing Sources Total $$$$
PENN CORRIDOR TOTAL 31,500 31,500 32,3507,318$$$$
838383
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
PENN CORRIDORFUND:
Community DevelopmentDEPARTMENT:
PENN CORRIDOR - 93750BUSINESS UNIT:
Other Services & Charges
6103 11,116 6,000 5,150 6,000Professional Services -General $$$$
6315 (3)- 850 850Other Contractual Services
6414 (127) - - - Other Supplies
6,000 6,000 6,85010,986Other Services & Charges Total $$ $$
Capital Outlay
7230 - 25,500 25,500 25,500Building Improvements $$$$
25,500 25,500 25,500- Capital Outlay Total $$ $$
31,500 31,500 32,35010,986PENN CORRIDOR TOTAL $$ $$
848484
BUDGET SUMMARY - HOUSING & REDEVELOPMENT FUND
2023 2024 2025
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 2,746,162$ 2,065,272$ 3,056,947$ 3,282,042$
Revenues:
Miscellaneous Revenues:
Interest 49,292 30,000 30,000 30,000
Sale of Property - - 88,000 -
Loan Repayment Revenue 15,330 7,500 30,000 15,000
Total Revenues 64,622 37,500 148,000 45,000
Expenditures:
Other Services and Charges 549,000 50,000 51,000 50,000
Capital Outlay 70,355 306,000 1,013,330 306,000
Total Expenditures 619,355 356,000 1,064,330 356,000
Excess (Deficiency) of Revenues
Over Expenditures (554,732) (318,500) (916,330) (311,000)
Transfers From (To) Other Funds:
Interchange West - 98070 515,836 254,350 791,725 213,330
Urban Village - 98120 149,696 153,050 149,700 149,700
City Bella - 98150 101,366 98,590 101,370 101,370
Lyndale Gardens - 98130 53,156 37,210 53,160 53,160
TIF 2014-1 - 98165 28,527 28,910 28,530 28,530
Cedar Corridor - 98160 16,937 - 16,940 16,940
- - -
- - -
Net Transfers 865,517 572,110 1,141,425 563,030
FUND BALANCE - DECEMBER 31 3,056,947$ 2,318,882$ 3,282,042$ 3,534,072$
858585
HOUSING & REDEVELOPMENT FUND
MISSION STATEMENT
To fund qualifying Housing and Redevelopment Authority (HRA) housing and
redevelopment projects and programs with tax increment revenues from various tax
increment financing districts.
FUND FOCUS
Within established districts, tax increment resources are dedicated to housing and
redevelopment projects and programs by the HRA. The amount of funding available is
limited by State Statute and can be utilized throughout the City. Presently, six
redevelopment districts contribute to the Housing & Redevelopment Fund: Urban
Village, Interchange West, City Bella, Lyndale Gardens, 2014-1 (Havenwood), and
Cedar Point (Rya).
The fund supports the removal of substandard homes and replacement with new
construction homes through the Richfield Rediscovered and New Home Programs and
the acquisition of blighted, substandard and/or underutilized properties along the City’s
commercial corridors. The HRA also uses the fund to support the removal of blight by
supporting the rehabilitation and demolition of substandard structures.
2024 HIGHLIGHTS
x Funds were made available for up to one credit and one purchase of a
substandard property through the Richfield Rediscovered program, as well as
one purchase of a substandard property through the New Home Program.
x Funds were made available to assist the Woodlawn Terrace manufactured home
community with utility upgrades, the demolition of abandoned housing units, and
rehabilitation of a permanent structure that provides affordable rental housing.
x Funds were used to purchase the abandoned and tax-forfeited commercial
property at 6525 Penn Avenue South.
x Staff continued to pursue redevelopment opportunities for the HRA lots near the
77th Street underpass. The HRA was gifted the Metro Sales properties at 1620-
40 East 78th Street and Housing and Redevelopment Fund monies were used to
pay closing costs and second-half property taxes.
2025 FUND GOALS
x Use budgeted funds to support the purchase of one substandard property for the
construction of one affordable home by a non-profit partner through the New
868686
Home Program.
x Use budgeted funds to support the purchase of one substandard property for the
construction of one market-rate home by a builder/buyer team and provide one
redevelopment credit under the Richfield Rediscovered Program.
x Strategically acquire blighted, substandard and/or underutilized properties along
the City’s commercial corridors, as opportunities arise, to facilitate redevelopment
in these areas.
x Strategically support redevelopment, economic development, and housing
preservation throughout the community.
FUND EXPENDITURE COMMENT
x The Housing & Redevelopment Fund pays for many programs and projects that
may also be shown in other program/project budgets. This worksheet is intended
to show in a holistic manner the way that “pooled” tax increment is being used
throughout the community.
x It is required that the funds generated by each district be managed in separate
accounts rather than “one fund.”
x State Statute strictly controls qualifying the use of these funds.
878787
HOUSING FUND GRAMERCYFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
Housing Fund Gramercy - 98500BUSINESS UNIT:
Miscellaneous Revenues
4607 46,709 30,000 30,000 30,000Investment Earnings $$$$
4609 2,584 - - - Change in Fair Value
4647 88,000HRA Land Sales
4648 15,331 7,500 30,000 15,000Loan Repayment Revenue
37,500 148,000 45,00064,624Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 865,518 572,110 1,141,425 563,030Operating Transfers In $$$$
572,110 1,141,425 563,030865,518Other Financing Sources Total $$$$
Housing Fund Gramercy TOTAL 609,610 1,289,425 608,030930,142$$$$
888888
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2025
REVISED
2024
BUDGET
2024
ACTUAL
2023
HOUSING FUND GRAMERCYFUND:
Community DevelopmentDEPARTMENT:
Housing Fund Gramercy - 98500BUSINESS UNIT:
Other Services & Charges
6511 549,000 50,000 51,000 50,000Rehab Loan Program $$$$
50,000 51,000 50,000549,000Other Services & Charges Total $$ $$
Capital Outlay
7110 - 306,000 608,330 306,000Land Purchases $$$$
7230 67,950 - 55,000 - Building Improvements
7310 2,405 -- - Site Improvements
7320 350,000Public Utilities
306,000 1,013,330 306,00070,355Capital Outlay Total $$ $$
356,000 1,064,330 356,000619,355Housing Fund Gramercy TOTAL $$ $$
898989
RESOLUTIONS
909090
HRA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 2025 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2025 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1. The budget for the Housing and Redevelopment Authority
General Fund of Richfield for the year 2025 in the amount of
$595,790 is hereby ratified.
Section 2. The estimated gross revenue of the Housing and Redevelopment
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2024, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2025, in the
amount of $772,390 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2024, payable in 2025 for the
following purposes:
Housing and Redevelopment Authority $720,610
Section 4. A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of August, 2024.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
919191
RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2024 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No.1460 appropriated funds for personal services and other
expenses and capital outlay for the Housing and Redevelopment Authority for the year
2024 and
WHEREAS, The Executive Director has requested a revision of the 2024 budget as
detailed in the 2025 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2024 appropriation for the Housing and Redevelopment
Authority General Fund is revised as follows:
$63,940 increase
Section 2. Estimated 2024 gross revenue of the Housing and Redevelopment
Authority General Fund from all sources, as the same is more fully
detailed in the Executive Director’s official copy of the 2025 budget
document, are hereby revised as follows:
$452,230 decrease
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 19th day of August, 2024.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
929292
THIS PAGE WAS LEFT BLANK INTENTIONALLY
939393
Funding Sources from the HRA BudgetExpenditures from the HRA BudgetHRA Sources & Uses2025 Prop.2024 Rev.2024 App.$720,610$692,620$1,145,620Taxes$3,414,000$2,679,600$2,190,000Intergov. Rev.$203,940$4,564,160$192,360Misc. Rev.$1,683,690$781,355$723,410Transfers$6,022,240$8,717,735$4,251,390Total2025 Prop.2024 Rev.2024 App.$921,020$862,430$871,060Personnel$247,660$258,760$245,570Admin.$4,189,265$3,891,705$2,435,680Programs$5,357,945$5,012,895$3,552,310Total
AGENDA SECTION:Consent Calendar
AGENDA ITEM #3.B.
STAFF REPORT NO. 18
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
9/16/2024
REPORT PREPARED BY: Lynnette Chambers, Multi-Family Housing Program Administrator
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRECTOR REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a Section 8 payment standard adjustment.
EXECUTIVE SUMMARY:
On an annual basis, the U.S. Department of Housing and Urban Development (HUD) establishes a Fair
Market Rent (FMR) for the Twin Cities Metropolitan Area, by bedroom size. Individual Housing and
Redevelopment Authorities are allowed to select a payment standard within 90% to 110% of HUD's FMR. The
payment standard sets the maximum monthly assistance payment that can be granted to families assisted with
the voucher program.
The selection of the payment standard should ensure that a sufficient supply of rental housing is available to
Section 8 Housing Choice Voucher Program (Program) participants. HUD's newly published FMRs have
increased, and the Housing and Redevelopment Authority's (HRA) current payment standards do not fit within
the established parameters. To remain in compliance with HUD regulations, the HRA must increase its
payment standards. The proposed payment standards will fall between 94% to 95% of the current FMRs.
RECOMMENDED ACTION:
By motion: Approve the proposed adjustment of the payment standard for the Section 8 Housing
Choice Voucher Program.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The HRA last adjusted the payment standards in September 2023.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Administering the Section 8 Program supports the Strategic Plan initiative to maintain Richfield as an
affordable place to live.
Section 8 is a tenant-based rent assistance program that serves families who have annual incomes at
50% of Area Median Income or less, many of whom are elderly/disabled (31%), have minor children
(28%), and/or are Black, Indigenous and People of Color (BIPOC) (69%).
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Section 8 participants will be able to choose from a larger selection of affordable housing units and may
receive some immediate rent relief on a case-by-case basis.
Without an increase in the payment standard, many Section 8 participants will be unable to find housing
and keep up with changing rents.
HUD provides sufficient federal assistance to cover these adjustments in the payment standards and
Melissa Poehlman, Executive Director8/29/2024
has approved the increase.
P otential changes in federal law impact the financial resources available to the P rogram if the HRA
does not remain current with the F M R.
D .C R IT IC AL T IMIN G IS S U E S:
The new payment standards will be effective October 1, 2024.
E .F IN AN C IAL IMPAC T:
A n increase in the payment standard will decrease the rent burden for S ection 8 participants.
HUD provides sufficient funding to cover the increase.
F.L E GAL C ON S ID E R AT ION:
The contract between the HRA and HUD provides for F MR adjustments in accordance with federal
regulations
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not change the payment standard at this time; however, this would mean that Richfield HRA is not in
compliance with the HUD regulations.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
NA
AT TAC H ME N T S:
D escription Type
2024 P ayment S tandard B ackup Material
Payment Standards
Bedroom Size 0 BDR 1 BDR 2 BDR 3BDR 4 BDR 5 BDR
Current Payment Standard $1,070 $1,210 $1,480 $1,995 $2,255 $2,635
Proposed Payment Standard $1,160 $1,315 $1,600 $2,130 $2,385 $2,740
AGENDA SECTION:PUBLIC HEARINGS
AGENDA ITEM #5.
STAFF REPORT NO. 19
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
9/16/2024
REPORT PREPARED BY: Lynnette Chambers, Multifamily Housing Coordinator
OTHER DEPARTMENT REVIEW:
EXECUTIVE DIRE CTOR RE VIEW: Melissa Poehlman, Executive Director
9/12/2024
ITEM FOR COUNCIL CONSIDERATION:
Public hearing regarding consideration of approval of the Richfield Housing and Redevelopment
Authority's Five-Year Public Housing Plan.
EXECUTIVE SUMMARY:
The Department of Housing and Urban Development (HUD) requires every housing authority to develop a
Five-Year Public Housing Plan (PHA Plan) within a required format. In order to remain compliant with HUD
rules and regulations, after development of the PHA Plan, comments and feedback are solicited from tenants.
A public hearing must be held and the PHA Plan approved by the local Housing and Redevelopment Authority
(HRA). Once the PHA Plan is approved by the HRA, it is submitted to HUD.
The PHA Plan includes the following information:
The HRA's goals objectives for serving the needs of low-income, very low-income, and extremely low-
income families;
A progress report on HRA activities supporting low-income, very low-income, and extremely low-
income families in the past five years, and;
The HRA's goals for serving the needs of victims of domestic violence in compliance with the Violence
Against Women Act (VAWA).
RECOMMENDED ACTION:
Conduct and close the public hearing and by motion: Approve the Housing and Redevelopment
Authority's Five-Year Public Housing Plan for the Section 8 Housing Assistance Program and
authorize the Chair and Executive Director to execute Program documents.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The Quality Housing and Work Responsibility Act of 1998 (QHWRA) was created by Congress. The
QHRWA requires the HRA, as a Public Housing Agency (PHA) to have a Five-Year PHA Plan. The
Five-Year PHA Plan describes the housing mission of the Agency and the Agency's long range goals
and objectives for achieving its mission over the subsequent five years.
Staff has developed a PHA Plan in the proper form and content.
The QHWRA also requires the HRA to maintain a Richfield Advisory Board (RAB) to make comments
about the PHA Plan. The RAB is comprised of Section 8 Housing Assistance Program (Program)
participants who volunteer to provide feedback. There were no Richfield residents who receive Section
8 rental assistance who volunteered to serve on the RAB, therefore, each participant was contacted via
postcard informing them of the Five Year PHA Plan, asking for their feedback. No feedback was
received.
HUD has designated Richfield as a high performer, signaling a high level in overall performance of
administration of the P rogram.
The public hearing notice of 45 days has not generated any comments or concerns.
B .E QU ITAB L E OR S T R AT E GIC C ON S ID E R AT ION S OR IMPAC T S
A dministering the S ection 8 P rogram supports the S trategic P lan initiative to maintain Richfield as an
affordable place to live.
S ection 8 is a tenant-based rent assistance program that serves families who have annual incomes at
50% of A rea Median Income or less, many of whom are elderly/disabled (31%), have minor children
(28%), and/or are B lack, Indigenous and P eople of C olor (B IP O C ) (69%).
C .P OL IC IE S (resolutions, ordinances, regulations, statutes, exc):
The Richfield HRA operates the P HA and S ection 8 P rogram to assist in providing affordable housing
for approximately 275 families in the C ity of Richfield. This affordability allows families the ability to live
in decent and safe housing that might otherwise be out of reach financially for them.
D .C R IT IC AL T IMIN G IS S U E S:
The P HA P lan must be approved by the HRA and submitted to HUD by October 18, 2024. F ailure to
approve the P HA P lan before this deadline will result in the HRA receiving a non-compliance status with
HUD . Non-compliance violates the contracts that the HRA has with HUD and results in a loss of
administrative and rent assistance funds.
The P HA P lan will be effective from January 1, 2025, until D ecember 31, 2029.
E .F IN AN C IAL IMPAC T:
The HRA has four contracts for administrative and rent assistance funds with HUD .
A nnually, the HRA receives approximately $1,858,400 for rental assistance payments and $229,920 for
administrative payments. A current P HA P lan is a requirement of these contracts.
F.L E GAL C ON S ID E R AT ION:
The Housing A ssistance P rogram (HA P ) contracts that the HRA has with HUD have been previously
reviewed and approved by legal counsel.
Notice was published in the S un C urrent on A ugust 1, 2024, regarding the availability of the P HA P lan
for review and of the public hearing to be held concerning P HA P lan approval. The publication schedule
is in compliance with HUD regulations.
Notice was mailed to all voucher recipients on A ugust 14, 2024.
The HRA must formally adopt the P HA P lan following a public hearing.
HUD requires the HRA C hair and E xecutive D irector to execute documents.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Approve the Plan with revisions.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
F ive Year P HA P lan B ackup Material
5 Year PHA Plan B.3 Progress Report Attachment
From 2020 to 2024, the Richfield Housing and Redevelopment Authority made
the following progress toward its PHA Plan goals and objectives:
•Constructed two single-family homes affordable to low-income homebuyers
through Twin Cities Habitat for Humanity.
• Purchased, rehabilitated and sold three single-family homes affordable to low
income buyers through the land trust model.
•Responded to impacts of the COVID-19 pandemic by dedicating local resources
towards emergency rental assistance, helping over 250 low-income households
disproportionately impacted by the pandemic.
•Established an Affordable Housing Trust Fund in 2020 to focus efforts and
dedicate revenue to the construction and preservation of affordable housing.
•Transferred $1.4 million in sales proceeds and pooled tax increment to the
Trust Fund.
•Approved a development agreement with a 55-unit work force housing
development that includes units affordable at 30%/50%/60% of the Area
Median Income (AMI) along with three ADA-accessible units.
•Approved a development agreement with a 38-unit supportive housing
development for neuro-diverse young adults with·units affordable at 30%/50%
of the AMI and two ADA-accessible units
•Committed $700,000 in Trust Funds to these two rental housing developments
proposing to build 93 units of affordable housing.
•Provided down payment assistance loans to 56 households through the First
Time Homebuyer Program. Since the program was established in 2018, over 80
percent of the loan recipients have been from households that are Black,
Indigenous, and People of Color (BIPOC) and six percent have been to
households that have a family member with a documented disability.
•Provided financial assistance for the construction of 22 new affordable rental
units and 31 affordable owner-occupied townhome units.
•Provided funding to preserve and rehabilitate 22 Naturally Occurring
Affordable Housing (NOAH) units using tax increment financing. Rehabilitated