081825 HRAR 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
AU G U S T 18, 2025
7:00 P M
C all to Order
Open F orum
P lease refer to the H R A agenda and minutes web page for additional ways to submit comments.
Approval of the Minutes
A pproval of the minutes of the Regular Housing and Redevelopment A uthority meeting of July 21, 2025.
AG E N D A APPR O VAL
1.A pproval of the A genda
2.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 .C onsideration of a Grant C ompliance A greement with P enn S tation A partments, L L L P regarding a Tax
B ase Revitalization A ccount Grant for 6501-6525 P enn Avenue S outh.
S taff Report No. 21
3.C onsideration of items, if any, removed from C onsent C alendar
R E S O L U T IO N S
4.C onsider resolutions approving the proposed 2026 Housing and Redevelopment A uthority B udget and Tax L evy
and 2025 Revised Housing and Redevelopment A uthority B udget.
S taff Report No. 22
O T H E R B U S IN E S S
5.C onsideration of the approval of an amended C ontract with the C enter for E nergy and E nvironment to provide
additional funding for C ommunity F ix-Up F und loan services to Richfield homeowners for 2025, and funds for loan
services, Remodeling A dvisor visits, and administration fees as approved in the 2026 B udget.
S taff Report No. 23
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.
HRA Meeting Minutes July 21, 2025
1 of 4
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 21, 2025
Chair Vrieze Daniels called the meeting to order at 7:00 PM in the Council Chambers.
HRA Present: Erin Vrieze Daniels, Chair; Mary Supple; Sean Hayford Oleary; Gordon Hanson;
John Young.
Staff Present: 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 residents participated in
the open forum opportunity.
APPROVAL OF THE MINUTES
MOTION: made by Hanson, seconded by Young to approve the minutes of the Housing and
Redevelopment Authority regular meeting Minutes of June 16, 2025, as presented.
Motion carried: 5-0
ITEM #1 APPROVAL OF THE AGENDA
MOTION: made by Supple, seconded by Hayford Oleary to approve the agenda as presented.
Motion carried: 5-0
ITEM #2 CONSENT CALENDAR
Assistant Community Development Director Urban presented the consent calendar items.
A. Consideration of a resolution authorizing submittal of an application to the
Metropolitan Council for a Livable Communities Policy and Program Development
grant. Staff Report No. 19
MOTION: made by Young, seconded by Hayford Oleary, to approve the consent calendar as presented.
Motion carried: 5-0
CALL TO ORDER
HRA Meeting Minutes July 21, 2025
2 of 4
RESOLUTION NO. 1511
RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES ACT FUNDING AND
AUTHORIZING APPLICATION FOR GRANT FUNDS
ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR
None.
ITEM #4
CONSIDERATION OF THE ADOPTION OF A RESOLUTION AUTHORIZING THE
PURCHASE OF 6804 14TH AVENUE SOUTH FOR FUTURE DEVELOPMENT AS A
SINGLE-FAMILY HOME OR DUPLEX UNDER THE RICHFIELD REDISCOVERED
PROGRAM
Assistant Community Development Director Urban presented the item 4A and noted the details of the
house being considered for acquisition, 6804 14th Avenue South, for a purchase price of $150,000.
Assistant Community Development Director Urban referenced the purchase agreement reflects an “as is”
purchase amount and noted the parameters of purchase per HRA.
MOTION: made by Supple, seconded by Young, to adopt the Resolution authorizing the purchase of 6804
14th Avenue South for future development as a single-family home or duplex under the Richfield
Rediscovered Program.
The HRA acknowledged Tax Increment Financing (TIF) and relevant redevelopment code-related issues.
The HRA expressed appreciation for the Richfield Rediscovered Program, noting it represents a good use
of resources and aligns with the original intent to upgrade substandard housing. Staff reported on
partnerships being pursued to support the construction of a duplex. Assistant Community Development
Director Urban highlighted a finding of consistency with past Planning Commission decisions, which
historically included transitions from single-family-to-single-family homes, and now also support expanding
allowable uses to include duplex housing.
RESOLUTION NO. 1512
RESOLUTION AUTHORIZING THE PURCHASE OF 6804 14TH AVENUE SOUTH FOR FUTURE
DEVELOPMENT AS A SINGLE-FAMILY HOME OR DUPLEX UNDER THE RICHFIELD
REDISCOVERED PROGRAM
Motion carries: 5-0
ITEM #5 HRA DISCUSSION ITEMS
No items were discussed.
ITEM #6 EXECUTIVE DIRECTOR REPORT
Assistant Community Development Director Urban reported the receipt of $653,000 from the Minnesota
Department of Revenue (LAHA), with the Housing Board “Bring it Home” rental assistance program
receiving an award of $1,000,000, which includes startup costs and is funded at minimum amount.
Assistant Community Development Director Urban noted there will be no Home Tours this year, as the
HRA Meeting Minutes July 21, 2025
3 of 4
event has shifted to a bi-annual schedule to correspond with community engagement. Assistant
Community Development Director added ADUs will be included in the next tour. Assistant Community
Development Director Urban noted Hempel Properties is scheduled to close between July 31 and August
4, 2025. In closing, Assistant Community Development Director Urban added while there was no
Economic Development Authority meeting, updates included a $10,000 SAC affordability award to
SHAZAM Coffee Shop, and ongoing efforts with CivicBrand for the Downtown Richfield identity initiative,
which includes a walking tour and online survey. Assistant Community Development Director Urban noted
a Business Initiative Grant also supports this work.
ITEM #7 CLAIMS
MOTION: made by Hanson, seconded by Hayford Oleary, to approve claims:
U.S. BANK 7/21/2025
HRA Checks #37258-37269 $64,069.13
Section 8 Checks #136891-136978 $223,788.24
TOTAL $287,857.37
Motion carried: 5-0
ITEM #8 ADJOURNMENT
This meeting was adjourned by unanimous consent at 7:13 p.m.
Date Approved: August 18, 2025
Erin Vrieze Daniels
HRA Chair
Michelle Friedrich Melissa Poehlman
City Clerk Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
STAFF REPORT NO. 21
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
8/18/2025
Julie Urban, Asst. Community Development DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a Grant Compliance Agreement with Penn Station Apartments, LLLP regarding a Tax
Base Revitalization Account Grant for 6501-6525 Penn Avenue South.
EXECUTIVE SUMMARY:
On June 25, 2025, the Housing and Redevelopment Authority (HRA) was awarded a Tax Base Revitalization
Account Grant (Grant) from the Metropolitan Council in the amount of $303,200 to undertake activities related
to the clean-up of polluted land and building located at 6501-6525 Penn Avenue South. Environmental
assessments of the properties have identified contaminated soils and building materials which need
to be removed before development can proceed. JO Companies (the Developer) will conduct the
remediation activities and request reimbursement for the costs from the Grant. The Grant
Compliance Agreement details the terms under which the HRA will provide reimbursement.
RECOMMENDED ACTION:
By motion: Approve a Grant Compliance Agreement with Penn Station Apartments, LLLP regarding a
Tax Base Revitalization Account Grant for 6501-6525 Penn Avenue South.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
The HRA owns both 6501 and 6525 Penn Avenue South but has entered into a Contract for Private
Redevelopment with JO Companies (dba Penn Station Apartments, LLLP) for the redevelopment of
the properties.
On July 7, 2025, the HRA was awarded a Tax Base Revitalization Account Grant for environmental
remediation activities
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
The proposed affordable housing development associated with the Grant would help meet the Strategic
Plan goal to maintain Richfield as an affordable place to live.
The development will provide affordable housing opportunities for people with low incomes and people
with disabilities.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
The HRA and the Metropolitan Council have executed a Grant Agreement that lays out
the terms of the Grant. The Grant Compliance Agreement conveys those terms to Penn
Station Apartments, LLLP, a subsidiary of JO Companies, LLC.
D.CRITICAL TIMING ISSUES:
Julie Urban, Acting Executive Director
8/13/2025
The TB RA Grant expires D ecember 31, 2027; however, the D eveloper intends to conduct the
remediation activities shortly after closing on the property later this fall.
E .F IN AN C IAL IMPAC T:
The C ity was awarded $303,200 in Grant funds from the Metropolitan C ouncil.
The C ity intends to provide the proceeds of the Grant to the D eveloper.
F.L E GAL C ON S ID E R AT ION:
The HRA A ttorney prepared the Grant C ompliance A greement.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
1. Decide to not approve the Agreement.
2. Approve the Agreement with changes.
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
Grant A greement C ontract/A greement
GRANT COMPLIANCE AGREEMENT
This GRANT COMPLIANCE AGREEMENT (the “Agreement”) is made and entered into this ___
day of August, 2025, between the City of Richfield, Minnesota, a municipal corporation under the laws of
the State of Minnesota (the “City”), and Penn Station Apartments LLLP, a Minnesota limited liability
limited partnership (the “Developer”).
RECITALS
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) and the Developer entered into a Contract for Private Redevelopment Agreement, dated
June 16, 2025 (the “Contract”); and
WHEREAS, pursuant to the Agreement, the Developer proposed to acquire certain property (the
“Redevelopment Property”) from the Authority, demolish the blighted building on the Redevelopment
Property, and construct a building with approximately 42 affordable housing units, with a portion of the
units occupied by residents whose incomes do not exceed thirty percent (30%) of the area median gross
income, a portion occupied by residents whose incomes do not exceed fifty percent (50%) of the area
median gross income, and the remainder of the units occupied by residents whose incomes do not exceed
sixty percent (60%) of the area median gross income, and the Authority agreed to provide financial
assistance for the Project in an amount of up to $1,485,000 by selling the Redevelopment Property at a
reduced cost; and
WHEREAS, to assist the Developer in obtaining additional financing for the Project, the HRA
submitted an application to the Metropolitan Council for funds available under the Tax Base Revitalization
Account Program (“TBRA”); and
WHEREAS, the City was awarded and accepted the TBRA Grant in the amount of $303,200 from
Metropolitan Council (the “TBRA Grant”); and
WHEREAS, pursuant to the TBRA Grant Agreement (the “TBRA Grant Agreement”), proceeds of
the TBRA Grant may be used for soil remediation and abatement activities as more fully described in the
TBRA Grant Agreement (the “Eligible Costs”); and
WHEREAS, a copy of the TBRA Grant Agreement has been provided to the Developer; and
WHEREAS, the City intends to provide the proceeds of the TBRA Grant Authority to the Developer
to pay for Eligible Costs;
NOW, THEREFORE, IT IS HEREBY AGREED by and between the Authority, the City and the
Developer as follows:
1. The TBRA Grant Agreement is incorporated herein by reference.
2. The Developer has read the TBRA Grant Agreement and agrees to comply with all terms,
conditions, and obligations of the City under the TBRA Grant Agreement, including but not limited to
providing evidence of expenditures for Eligible Costs, providing deliverables, establishing and maintaining
records, consenting to audits, and providing project progress reports.
3. The Developer agrees to fully indemnify the City for any liability incurred by the City with
respect to the TBRA Grant Agreement.
IN WITNESS WHEREOF, the parties have executed this Grant Compliance Agreement
effective the date and year first written above.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By
Its Chair
By
Its Executive Director
PENN STATION APARTMENTS LLLP
By: Penn Station Apartments LLC
Its General Partner
By: JO Companies, LLC
Its: Sole Member
Johnny Opara, Manager
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
STAFF REPORT NO. 22
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
8/18/2025
Melissa Poehlman, Executive DirectorREPORT PREPARED BY:
EXECUTIVE DIRE CTOR RE VIEW:
ITEM FOR COUNCIL CONSIDERATION:
Consider resolutions approving the proposed 2026 Housing and Redevelopment Authority Budget and
Tax Levy and 2025 Revised Housing and Redevelopment Authority Budget.
EXECUTIVE SUMMARY:
The bylaws of the Richfield Housing and Redevelopment Authority (HRA) require that an annual budget be
submitted to the HRA Commissioners for approval. Accordingly, the 2026 Proposed Budget and Tax Levy and
2025 Revised Budget are presented for approval.
In addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority.
The proposed tax levy must be certified to the Hennepin County Auditor by September 30, 2025. Any
amendments to the proposed budget, which would increase the property tax levy, must be made prior to
September 30, 2025. No increases in 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 recommended tax levy as proposed represents a 3.0% increase from the previous year’s levy.
RECOMMENDED ACTION:
By motion: Adopt the attached resolutions approving the 2026 Proposed Housing and Redevelopment
Authority Budget and Tax Levy and 2025 Revised Housing and Redevelopment Authority Budget
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
N/A
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
N/A
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Minnesota Statutes require adoption of a preliminary levy from each taxing authority.
The budget and accompanying proposed levy for 2026 are ready for consideration.
Even though a public hearing for the HRA tax levy is not required by State Statute, this does not
preclude the HRA from opening this item up for public discussion if the HRA desires to do so.
D.CRITICAL TIMING ISSUES:
As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable
year 2026 to the County Auditor on or before September 30, 2025.
Melissa Poehlman, Executive Director
8/8/2025
E .F IN AN C IAL IMPAC T:
The P roposed 2026 HRA levy represents a 3.0% increase from the previous year’s levy. This equates
to an $21,623 increase.
The levy is approximately $190,070 less than the maximum HRA levy established by law of the .0185%
of the C ity’s total estimated taxable market value.
F.L E GAL C ON S ID E R AT ION:
N/A
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The HRA could adopt a preliminary levy less than the one proposed herein. However, that would not
provide for programs that are recommended in the 2026 Proposed/2025 Revised Budget.
The HRA could also consider adoption of a greater levy (up to $932,295), but that would exceed the
expressed needs of staff and may result in a burdensome property tax bill for residents.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
2026 B udget and Tax L evy Resolution L etter
2025 Revised B udget Resolution Resolution L etter
P roposed 2026 B udget E xhibit
HRA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 2026 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2026 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 2026 in the amount of
$756,430 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
2025, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2026, in the
amount of $914,588 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2025, payable in 2026 for the
following purposes:
Housing and Redevelopment Authority $742,230
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 18th day of August, 2025.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2025 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No.1487 appropriated funds for personal services and other
expenses and capital outlay for the Housing and Redevelopment Authority for the year
2025 and
WHEREAS, The Executive Director has requested a revision of the 2025 budget as
detailed in the 2026 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2025 appropriation for the Housing and Redevelopment
Authority General Fund is revised as follows:
$252,790 increase
Section 2. Estimated 2025 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 2026 budget
document, are hereby revised as follows:
$40,580 increase
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 18th day of August, 2025.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
RICHFIELD HOUSING AND
REDEVELOPMENT AUTHORITY
6700 Portland Avenue Richfield, MN
2026 BUDGET
TABLE OF CONTENTS
Page No.
HRA Officials 2
Executive Director's Budget Message 3
Summary of 2025/2026 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 Revenue 17
HRA Administration 18
Marketing and Promotional Events 19
Rental Housing Support 20
Richfield Rediscovered HF 21
Special Revenue Funds:
Capital Improvement 25
New Home Program 29
Housing Rehabilitation Program 34
Section 8 - Housing Assistance Program 39
Section 8 - Administration 44
Affordable Housing Trust 47Local Affordable Housing Aid 52Bring It Home 57
Capital Projects:
Temporary Spending Plan 62
Development Opportunities 65
The Lakes at Lyndale 70
Lyndale Garden Center 75
Cedar Point Commons 78
Cedar Corridor 82
Penn Corridor 86
Housing & Redevelopment Fund 90
Budget Resolutions:
Resolution Approving Proposed 2026 Housing and Redevelopment 96
Authority Budget and Certifying the 2026 Tax Levy.
Resolution Authorizing Revision of 2025 Budget of the Housing and 97
Redevelopment Authority of Richfield.
1
CITY OF RICHFIELD, MINNESOTA
ANNUAL BUDGET
HOUSING AND REDEVELOPMENT AUTHORITY
HRA COMMISSIONERS
ERIN VRIEZE DANIELS - CHAIR
COMMISSIONER - GORDON HANSON COMMISSIONER - SEAN HAYFORD OLEARY
COMMISSIONER - MARY SUPPLE COMMISSIONER - JOHN YOUNG
ADMINISTRATIVE STAFF
MELISSA POEHLMAN - EXECUTIVE DIRECTOR/COMMUNITY DEVELOPMENT DIRECTOR
MARY BOGIE - FINANCE DIRECTOR
2
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 25, 2025
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, 2026, to December 31, 2026, is submitted. A meeting
on the proposed HRA budget will be held on August 18, 2025, at 7:00 p.m.
Pursuant to State law, the HRA must certify the 2026 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, 2025. A proposed 2026 tax levy must be submitted to the
County Auditor on or before September 30, 2025. Any amendments to the proposed
budget, which would increase the property tax levy, must be made prior to September 30,
2025. 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 2025 budget and the proposed 2026 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
3
Housing & Redevelopment Authority Commissioners
July 28, 2025
Page | 2
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
2025/2026 AREAS OF FOCUS
During the upcoming fiscal year, the HRA and its staff will continue to place emphasis on
work that furthers the desired outcomes identified by the City’s Strategic Plan – 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:
•Exploring redevelopment opportunities in identified priority areas: Downtown, Penn
Corridor, Cedar Corridor.
•Furthering economic and redevelopment goals through the use of Temporary
Spending Plan funds.
•In conjunction with EDA staff, marketing development/redevelopment sites owned
by the HRA along East 66th Street, the Cedar Corridor, Penn Avenue, and Interstate
494.
•Serving approximately 300 Section 8 clients.
•Prioritizing maintenance of Richfield’s housing stock through the Fix Up Fund Loan
Program and planning for the potential loss of the Deferred Loan Program and
exploring possible new initiatives.
•Facilitating homeownership opportunities for first-time buyers with a focus on
building wealth for historically marginalized populations.
•Facilitating investment and diversification of the housing stock through the Richfield
Rediscovered Program with a renewed focus on priority or demonstration housing
types.
•Implementing the priorities and “next steps” identified in the Housing Program
Evaluation.
•Addressing housing needs identified by the Comprehensive Plan and preparing to
participate in drafting of the next Plan update.
•Programming new Local Affordable Housing Aid (LAHA) money and Bring it Home
funds.
4
Housing & Redevelopment Authority Commissioners
July 28, 2025
P a ge | 3
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 2025, and goals for 2026. A detailed
accounting of actual revenues and expenditures for the past year (2024), as well as adopted
and revised 2025 budgets are provided to compare with proposed 2026.
OVERVIEW 2025 AND 2026
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 often made from fund
balances rather than a particular year’s levy. Additionally, pass-through funding, such as
large grants, can skew the budget significantly. The 2025 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 2026, or
fallen away.
The revised 2025 staff and fixed costs will increase by approximately 7.3% due to a
significantly larger need to support Section 8 staffing costs. These General Fund
Expenditures are expected to decrease for 2026 (decreasing $15,710 over 2025 Revised) as
more Section 8 vouchers are used within City boundaries and administrative
reimbursements from HUD rise. A proposed levy increase of 3.0% will allow the HRA to save
for the ongoing costs of continued implementation of the Compensation and Classification
study, the decertification of tax increment districts, and anticipated technology needs.
The resolution to certify the 2026 budget and tax levy has been prepared based on the
proposed budget. This resolution and a resolution revising the 2025 budget are in the last
section of this document.
Respectfully submitted,
Melissa Poehlman, AICP
Executive Director
5
THIS PAGE WAS LEFT BLANK INTENTIONALLY
6
SUMMARY OF 2025/2026 BUDGET
COMPARATIVE ANALYSIS OF EXPENDITURES BY MAJOR OBJECTIVES - ALL FUNDS
COMPARATIVE ANALYSIS OF EXPENDITURES - ALL FUNDS
COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS
7
SUMMARY OF 2025/2026 BUDGET - ALL FUNDS
Fund Balance Fund Balance Fund Balance
FUNDS January 1, 2025 Revenues Expenditures December 31, 2025 Revenues Expenditures December 31, 2026
GENERAL 3,083,882$ 812,968$ 798,580$ 3,098,270$ 914,588$ 756,430$ 3,256,428$
SPECIAL REVENUE:
Capital Improvement 946,894 40,000 - 986,894 40,000 - 1,026,894
New Home Program 296,786 160,000 161,500 295,286 20,000 21,500 293,786
Housing Rehabiliation Program 317,481 15,185 119,350 213,316 15,000 119,850 108,466
Section 8 Rental Assistance - HAP (26,563) 2,200,000 2,200,000 (26,563) 2,350,000 2,350,000 (26,563)
Section 8 Rental Assistance - ADMIN 150,191 378,960 378,960 150,191 396,260 394,760 151,691
Affordable Housing Trust 835,204 1,320,000 1,811,000 344,204 620,000 701,000 263,204
Affordable Housing-Special Legis/LAHA 150,048 643,863 200,000 593,911 400,000 400,000 593,911
Bring it Home - - - - 235,920 235,920 -
TOTAL SPECIAL REVENUE 2,670,041 4,758,008 4,870,810 2,557,239 4,077,180 4,223,030 2,411,389
CAPITAL PROJECTS:
Development Opportunities 7,192,511 1,580,600 1,580,600 7,192,511 1,896,000 1,896,000 7,192,511
Lakes at Lyndale 52,983 17,250 17,250 52,983 17,250 17,250 52,983
Lyndale Garden Center (9,903) 4,600 4,600 (9,903) 4,600 4,600 (9,903)
Cedar Point Commons (134,697) 3,000 1,000 (132,697) 3,000 1,000 (130,697)
Cedar Corridor 737,566 2,500 2,500 737,566 1,000 1,000 737,566
Penn Corridor 89,265 - 800 88,465 - 10,800 77,665
Housing & Redevelopment Fund 4,299,079 640,420 561,000 4,378,499 267,390 205,000 4,440,889
Spending Plans 4,753,345 - 1,330,000 3,423,345 - 530,000 2,893,345
TOTAL CAPITAL PROJECTS 16,980,149 2,248,370 3,497,750 15,730,769 2,189,240 2,665,650 15,254,359
TOTAL - ALL FUNDS 22,734,072$ 7,819,346$ 9,167,140$ 21,386,278$ 7,181,008$ 7,645,110$ 20,922,176$ 8
COMPARATIVE ANALYSIS OF EXPENDITURES
BY MAJOR OBJECTIVES - ALL FUNDS
2025 2026
2024 Budget Revised Budget
General Fund
Personal services 311,878$ 328,370$ 329,070$ 344,910$
Other services and charges 114,356 179,710 243,910 230,420
Total Current Expenditures 426,234 508,080 572,980 575,330
Capital outlay 155,000 173,500
Transfers 7,600 37,710 70,600 7,600
Total General Fund 433,834 545,790 798,580 756,430
Special Revenue Funds
Personal services 240,307$ 292,110$ 253,020$ 293,500$
Other services and charges 2,325,422 3,826,345 4,297,790 3,769,530
Total Current Expenditures 2,565,729 4,118,455 4,550,810 4,063,030
Capital outlay 80,000 240,000 320,000 160,000
Transfers 29,507 - - -
Total Special Revenue 2,675,236 4,358,455 4,870,810 4,223,030
Capital Projects Funds
Personal services -$ -$ -$ -$
Other services and charges 42,867 99,200 419,550 146,650
Total Current Expenditures 42,867 99,200 419,550 146,650
Capital outlay 61,341 354,500 1,711,200 2,019,000
Transfers - 985,000 1,367,000 500,000
Total Capital Projects 104,208 1,438,700 3,497,750 2,665,650
TOTAL FOR ALL FUNDS
Personal services 552,185 620,480 582,090 638,410
Other services and charges 2,482,645 4,105,255 4,961,250 4,146,600
Total Current Expenditures 3,034,830 4,725,735 5,543,340 4,785,010
Capital outlay 141,341 594,500 2,186,200 2,352,500
Transfers 37,107 1,022,710 1,437,600 507,600
Total for All Funds 3,213,278$ 6,342,945$ 9,167,140$ 7,645,110$
9
COMPARATIVE ANALYSIS OF EXPENDITURES
ALL FUNDS
2025 2026
FUNDS 2024 Budget Revised Budget
GENERAL 433,834$ 545,790$ 798,580$ 756,430$
SPECIAL REVENUE
Capital Improvement 29,507 - - -
New Home 70,129 42,400 161,500 21,500
Housing Rehabilitation 49,234 71,850 119,350 119,850
Section 8 - Housing Assistance Program 1,893,118 2,200,000 2,200,000 2,350,000
Section 8 - Administration 353,098 379,210 378,960 394,760
Affordable Housing Trust 195,150 1,226,000 1,811,000 701,000
Local Affordable Housing Aid 85,000 260,000 200,000 400,000
Bring it Home - 178,995 235,920
Total Special Revenue 2,675,236 4,358,455 4,870,810 4,223,030
CAPITAL PROJECTS
Development Opportunities 37,720 32,500 1,580,600 1,896,000
Lakes at Lyndale - 26,250 17,250 17,250
Lyndale Garden Center 156 4,600 4,600 4,600
Cedar Point Commons - 1,000 1,000 1,000
Cedar Corridor 2,791 1,000 2,500 1,000
Penn Corridor 1,200 32,350 800 10,800
Housing & Redevelopment Fund 62,341 356,000 561,000 205,000
Spending Plans - 985,000 1,330,000 530,000
Total Capital Projects 104,208 1,438,700 3,497,750 2,665,650
TOTAL - ALL FUNDS 3,213,278$ 6,342,945$ 9,167,140$ 7,645,110$
10
COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS - 2025 REVISED
Special Capital
General Revenue Projects Total
Taxes 720,610$ -$ -$ 720,610$
Intergovernmental Revenues - 3,268,323 1,468,200 4,736,523
Miscellaneous Revenues 92,358 126,685 112,000 331,043
Transfers - 1,363,000 668,170 2,031,170
Total 812,968$ 4,758,008$ 2,248,370$ 7,819,346$
COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS - 2026
Special Capital
General Revenue Projects Total
Taxes 742,230$ -$ -$ 742,230$
Intergovernmental Revenues - 3,212,760 1,850,000 5,062,760
Miscellaneous Revenues 172,358 364,420 35,000 571,778
Transfers - 500,000 304,240 804,240
Total 914,588$ 4,077,180$ 2,189,240$ 7,181,008$
COMPARATIVE ANALYSIS OF FUND BALANCE - GENERAL FUND
2025 2026
2024 Budget Revised
Fund Balance, January 1 2,688,756$ 2,811,901$ 3,083,882$ 3,098,270$
Revenues 828,960 772,390 812,968 914,588
Total Available 3,517,716 3,584,291 3,896,850 4,012,858
Expenditures 433,834 545,790 798,580 756,430
Fund Balance, December 31 3,083,882$ 3,038,501$ 3,098,270$ 3,256,428$
11
GENERAL FUND
12
THIS PAGE WAS LEFT BLANK INTENTIONALLY
13
BUDGET SUMMARY - GENERAL FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 2,688,756$ 2,811,901$ 3,083,882$ 3,098,270$
Revenues:
Taxes:
Current 688,925 720,610 720,610 742,230
Total Taxes 688,925 720,610 720,610 742,230
Miscellaneous Revenues:
Other Miscellaneous Revenues 140,035 51,780 92,358 172,358
Total Miscellaneous Revenues 140,035 51,780 92,358 172,358
Total Revenues 828,960 772,390 812,968 914,588
Expenditures:
Personal Services 311,878 328,370 329,070 344,910
Capital Outlay 155,000 173,500
Other Services and Charges 114,356 179,710 243,910 230,420
Total Expenditures 426,234 508,080 727,980 748,830
Excess (Deficiency) of Revenues
Over Expenditures 402,726 264,310 84,988 165,758
Transfers From (To) Other Funds:
New Home (2,400)
Rehabilitation Program
Section 8 Administration (27,710) (63,000)
Lakes at Lyndale
Lyndale Garden (4,600) (4,600) (4,600) (4,600)
Cedar Point (3,000) (3,000) (3,000) (3,000)
Net Transfers (7,600) (37,710) (70,600) (7,600)
FUND BALANCE - DECEMBER 31 3,083,882$ 3,038,501$ 3,098,270$ 3,256,428$
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 Housing and Redevelopment
Authority (HRA). The programs invest in both residential and commercial areas.
The Housing and Redevelopment Division of Community Development has the
following areas of focus:
• Housing Assistance
• Rental Housing Support
• Housing Improvement and New Construction Programs
• 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 HRA.
HIGHLIGHTS AND GOALS
Highlights and goals are primarily provided for each individual project/program in the
following pages. Work over the past year also included:
• Managed several prospective and active redevelopment projects (e.g. 6501-6525
Penn Avenue; 101-66th Street; Aster Commons; former American Legion site).
• Completed a comprehensive evaluation of housing programs for alignment with
Council goals.
• Began process to implement results of this program evaluation.
• Programmed new Local Affordable Housing Assistance (LAHA) funds in
alignment with said program evaluation and other HRA/City priorities, including a
small amount of funds directed towards the EDA’s Kids@Home Program to
increase the number of families served with rent assistance.
• Identified replacement funding source(s) for programming historically funded by
Federal Community Development Block Grant (CDBG) funding.
15
• Developed program and applied for State-funded rental assistance (Bring It
Home Program) funds.
• Administered 13 active Tax Increment Finance (TIF) 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.
• Continued to focus on onboarding and training of Finance staff as it relates to the
specific needs of the HRA.
In 2026, staff will continue to focus on many of these ongoing tasks and will add:
• Begin administration of Bring It Home program.
• Continue to implement the "next steps" of the Housing Program Evaluation,
exploring new partnerships and potentially developing new programs utilizing
LAHA funds, HRA levy, and fund balances.
DIVISION EXPENDITURE COMMENT • The HRA Administration Division is primarily funded by the HRA Levy.
• The HRA budget can fluctuate significantly based on opportunities. For example, the
2025R budget increases significantly to account for assistance provided to purchase
and preserve three affordable apartment communities. Expenditures reflect pass-
through grant funds and can also be significantly skewed by large awards.
• Several grants were awarded to Richfield developments by the Metropolitan Council
and are reflected in the Development Opportunities fund.
• A significant transfer to support Section 8 administration has not been needed in
many years; however, recent trends with fewer voucher-holders finding units within
the City have led to a potential deficit in 2025 and therefore a 7.3% increase in the
revised Administrative budget to cover the deficit. This trend shows signs of
reversing and the 2026 budget anticipates a smaller transfer. The proposed
Administrative budget decreases approximately 3% for 2026.
16
HRA AdministrationFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
HRA Administration - 90100BUSINESS UNIT:
Taxes
4005 598,659 720,610 720,610 742,230Current$$$$
4010 (1,699)- - - Delinquent
4025 91,965 - - - Fiscal Disparities
720,610 720,610 742,230688,925TaxesTotal$$$$
Miscellaneous Revenues
4607 117,644 40,000 80,000 80,000Investment Earnings $$$$
4609 1,896 - - - Change in Fair Value
4620 1,400 1,000 - - Contibutions/Donations
4642 623 - - - Other Refund/Reimbursements
4644 18,272 10,780 12,358 12,358Other Miscellaneous Revenues
51,780 92,358 92,358139,835Miscellaneous Revenues Total $$$$
HRA Administration TOTAL 772,390 812,968 834,588828,760$$$$
17
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
HRA AdministrationFUND:
Community DevelopmentDEPARTMENT:
HRA Administration - 90100BUSINESS UNIT:
Personal Services
6051 311,878 328,370 329,070 344,910Interdepartmental Labor $$$$
328,370 329,070 344,910311,878Personal Services Total $$$$
Other Services & Charges
6103 4,159 16,950 16,950 15,000Professional Services -General $$$$
6201 11,070 11,400 11,400 11,860Rents & Leases
6202 75,721 55,830 55,830 57,980Data Processing Rental
6301 - 360 360 300Advertising & Publication
6302 734 800 450 450Communications
6303 1,288 3,690 3,790 3,910Professional Development
6305 1,642 1,620 1,620 1,670Subscriptions & Memberships
6307 5,538 25,060 25,060 23,000Insurance & Bonds
6401 1,487 1,830 1,830 1,800Office Supplies
6402 665 1,080 1,080 800Copy Charges
6403 182 400 400 250Postage
6409 121 500 400 400Uniforms & Clothing
6414 877 1,040 1,040 1,000Other Supplies
120,560 120,210 118,420103,484Other Services & Charges Total $$$$
Other Financing Uses
8511 7,600 37,710 70,600 7,600Operating Transfers Out $$$$
37,710 70,600 7,6007,600Other Financing Uses Total $$$$
486,640 519,880 470,930422,962HRA Administration TOTAL $$$$
18
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Marketing/EventsFUND:
Community DevelopmentDEPARTMENT:
Marketing/Events - 90300BUSINESS UNIT:
Other Services & Charges
6103 1,350 5,100 5,100 5,200Professional Services -General $$$$
6301 4,328 1,200 1,200 1,300Advertising & Publication
6401 - 50 50 50Office Supplies
6402 11 250 250 250Copy Charges
6403 2,540 2,600 2,600 2,700Postage
6414 792 1,700 1,700 1,700Other Supplies
10,900 10,900 11,2009,021Other Services & Charges Total $$$$
10,900 10,900 11,2009,021Marketing/Events TOTAL $$$$
19
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Rental Housing SupportFUND:
Community DevelopmentDEPARTMENT:
Rental Housing Support - 90400BUSINESS UNIT:
Other Services & Charges
6103 - 42,000 2,000 42,000Professional Services -General $$$$
6301 - 200 200 200Advertising & Publication
6402 - 50 50 50Copy Charges
6414 - 250 250 250Other Supplies
6511 - - 55,000 - Rehab Loan Program
42,500 57,500 42,500- Other Services & Charges Total $$$$
42,500 57,500 42,500- Rental Housing Support TOTAL $$$$
20
Richfield Rediscovered/HFFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Richfield Rediscovered/HF - 90700BUSINESS UNIT:
Miscellaneous Revenues
4644 - 88,000 - 80,000Other Miscellaneous Revenues $$$$
88,000 - 80,000- Miscellaneous Revenues Total $$$$
Richfield Rediscovered/HF TOTAL 88,000 - 80,000- $$$$
21
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Richfield Rediscovered/HFFUND:
Community DevelopmentDEPARTMENT:
Richfield Rediscovered/HF - 90700BUSINESS UNIT:
Other Services & Charges
6103 261 3,500 3,500 3,500Professional Services -General $$$$
6301 - 100 100 100Advertising & Publication
6310 - 1,700 - 3,000Taxes & Licenses
6315 1,593 450 1,700 1,700Other Contractual Services
6511 - - 50,000 50,000Rehab Loan Program
5,750 55,300 58,3001,854Other Services & Charges Total $$$$
Capital Outlay
7110 - - 155,000 155,000Land Purchases $$$$
7310 - - - 18,500Site Improvements
- 155,000 173,500- Capital Outlay Total $$$$
5,750 210,300 231,8001,854Richfield Rediscovered/HF TOTAL $$$$
22
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23
SPECIAL REVENUE FUNDS
24
BUDGET SUMMARY - CAPTIAL IMPROVEMENT FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 920,998$ 941,998$ 946,894$ 986,894$
Revenues:
Miscellaneous Revenues:
Interest 55,403 40,000 40,000 40,000
Total Revenues 55,403 40,000 40,000 40,000
Expenditures:
Other Services and Charges - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues
Over Expenditures 55,403 40,000 40,000 40,000
Transfers From (To) Other Funds:
General Fund (29,507) - - -
Special Revenue - - - -
Net Transfers (29,507) - - -
FUND BALANCE - DECEMBER 31 946,894$ 981,998$ 986,894$ 1,026,894$
25
HRA CAPITAL IMPROVEMENT FUND
MISSION STATEMENT
To fund Housing and Redevelopment Authority (HRA) programs utilizing non-tax
increment revenues such as land sale proceeds, interest earnings, and miscellaneous
revenues.
FUND FOCUS
The primary assets of this fund were derived from the sale of land to developers in the
early years of the Lyndale-Hub-Nicollet tax increment redevelopment project. Interest
earnings from those revenues and miscellaneous income account for the balance.
In an effort to maximize the use of limited funding sources, two accounts were
established: the Capital Fund Trust and Capital Fund Revolving Account. The principal
amount of the trust is invested. The annual interest earnings are available to provide
funding to support HRA programs or acquisition/investment that could not be funded with
pooled-increment.
FUND EXPENDITURE COMMENT
•Funding to programs is provided by “transfers out” when activity occurs.
•No expenditures are planned for either 2025 or 2026.
26
Capital Improvement FundFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Capital Improvement Fund - 91001BUSINESS UNIT:
Miscellaneous Revenues
4607 55,403 40,000 40,000 40,000Investment Earnings $$$$
40,000 40,000 40,00055,403Miscellaneous Revenues Total $$$$
Capital Improvement Fund TOTAL 40,000 40,000 40,00055,403$$$$
27
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Capital Improvement FundFUND:
Community DevelopmentDEPARTMENT:
Capital Improvement Fund - 91001BUSINESS UNIT:
Other Financing Uses
8511 29,507 - - - Operating Transfers Out $$$$
- - - 29,507Other Financing Uses Total $$$$
- - - 29,507Capital Improvement Fund TOTAL $$$$
28
BUDGET SUMMARY - NEW HOME PROGRAM FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 285,263$ 285,263$ 296,786$ 295,286$
Revenues:
Intergovernmental
CDBG Grants 70,000 40,000 160,000 20,000
Miscellaneous
Loan Repayment - - - -
Interest 11,652 - - -
Total Revenues 81,652 40,000 160,000 20,000
Expenditures:
Other Services and Charges 70,129 42,400 81,500 21,500
Capital Outlay - - 80,000 -
Total Expenditures 70,129 42,400 161,500 21,500
Excess (Deficiency) of Revenues
Over Expenditures 11,523 (2,400) (1,500) (1,500)
Transfers From (To) Other Funds:
Affordable Housing Trust Fund - - - -
General Fund - 2,400 - -
Net Transfers - 2,400 - -
FUND BALANCE - DECEMBER 31 296,786$ 285,263$ 295,286$ 293,786$
29
NEW HOME PROGRAM
MISSION STATEMENT
To encourage the development of homeownership 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 Housing and
Redevelopment Authority (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.
2025 HIGHLIGHTS
• Funds are budgeted to cover legal expenses related to the servicing of New
Home Program and First Time Homebuyer mortgages.
• Community Development Block Grant (CDBG) funding provides down payment
assistance to four to five first-time homebuyers.
• CDBG funding provides funding for one affordable homeownership opportunity
through the community land trust.
2026 PROGRAM GOALS
• Funds are budgeted to cover legal expenses related to the servicing of New
Home Program and First Time Homebuyer mortgages.
• CDBG funding provides down payment assistance to one first-time homebuyer.
PROGRAM EXPENDITURE COMMENT
• Funding for New Home Program homeownership activities is provided by a
variety of sources including CDBG and the Housing and Redevelopment Fund.
These activities may also be funded out of other Funds, including Local
Affordable Housing Aid (LAHA) and the Affordable Housing Trust Fund.
30
• The federal CDBG program is currently an uncertain source of funding.
Acquisition/rehabilitation through the land trust model using CDBG is included in
the budget for 2025 revised; however, additional funding is also designated in the
LAHA budget for this activity in the event CDBG funds are not received.
• These funding sources do not provide for administrative costs. Previously,
administrative costs were covered by the HRA General Fund; however,
beginning in 2025, these costs will be covered by the available fund balance.
• Given current high housing values and the high cost of new construction, there is
no money budgeted under New Home in 2025R and 2026 to purchase and
demolish any substandard homes. The focus of homeownership affordability will
be on acquisition/rehabilitation and downpayment assistance.
• Beginning in federal fiscal year 2026, the City will no longer receive a direct
allocation of CDBG.
31
New Home ProgramFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
New Home Program - 91010BUSINESS UNIT:
Intergovernmental Revenues
4214 70,000 40,000 160,000 20,000CDBG Grants $$$$
40,000 160,000 20,00070,000Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 11,463 - - - Investment Earnings $$$$
4609 189 - - - Change in Fair Value
- - - 11,652Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - 2,400 - - Operating Transfers In $$$$
2,400 - - - Other Financing Sources Total $$$$
New Home Program TOTAL 42,400 160,000 20,00081,652$$$$
32
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
New Home ProgramFUND:
Community DevelopmentDEPARTMENT:
New Home Program - 91010BUSINESS UNIT:
Other Services & Charges
6103 - 2,000 1,500 1,500Professional Services -General $$$$
6301 177 200 - - Advertising & Publication
6310 (48)- - - Taxes & Licenses
6315 - 200 - - Other Contractual Services
6511 70,000 40,000 80,000 20,000Rehab Loan Program
42,400 81,500 21,50070,129Other Services & Charges Total $$$$
Capital Outlay
7110 - - 80,000 - Land Purchases $$$$
- 80,000 - - Capital Outlay Total $$$$
42,400 161,500 21,50070,129New Home Program TOTAL $$$$
33
BUDGET SUMMARY - HOUSING REHABILITATION PROGRAM FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 335,684$ 264,164$ 317,481$ 213,316$
Revenues:
Miscellaneous Revenues:
Loan Repayments 15,000 10,000 15,000 15,000
Interest Earnings 15,983 - - -
Other 48 660 185 -
Total Revenues 31,031 10,660 15,185 15,000
Expenditures:
Other Services and Charges 49,234 71,850 119,350 119,850
Total Expenditures 49,234 71,850 119,350 119,850
Excess (Deficiency) of Revenues
Over Expenditures (18,203) (61,190) (104,165) (104,850)
Transfers From (To) Other Funds:
General Fund - - - -
Net Transfers - - - -
FUND BALANCE - DECEMBER 31 317,481$ 202,974$ 213,316$ 108,466$
34
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:
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.
The Architectural Consultation Program provides homeowners with a low-cost, two-hour
consultation with an architect to discuss project design.
The Center for Energy and Environment Remodeling Advisor provides free in- home
visits with a Remodeling Advisor to offer homeowners assistance with project planning
for home repair and remodeling projects.
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.
2025 HIGHLIGHTS
• 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.
• Worked with the Center for Energy and Environment to offer remodeling advising
visits. Budget allows for up to 50 visits in 2025.
• 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 2025.
• There was continued strong demand in reduced interest rate Fix-Up loans, and
funds were used up in May 2025. The Revised 2025 budget increases funds for
the program, allowing for an additional 5-6 loans, subject to approval by
Minnesota Housing. Changes were made to the program to adjust the amount of
35
interest-rate reduction to increase or decrease with Minnesota Housing’s interest
rate.
2026 PROGRAM GOALS
• To continue to promote use of the Home Energy Squad Enhanced Program,
including the free cost to low-income homeowners. A modest increase in the
budget will assist additional low-income homeowners with no-cost visits. (City
Council Priority/Outcome 2c)
• 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)
• The budget for the reduced interest rate Fix-Up Fund is increased from $40,000
to $90,000, subject to approval from Minnesota Housing. The 2025 Housing
Program Evaluation identified this program as an important one for leveraging
significant investment in the City’s housing stock with a modest HRA contribution.
• 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
• Loan repayments can be used to fund housing rehabilitation programs. In recent
years, repayments have exceeded expenses and cash reserves have increased.
In 2025 and 2026, cash reserves will fund all of these programs.
36
Rehabilitation Loan ProgramFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Rehabilitation Loan Program - 91300BUSINESS UNIT:
Miscellaneous Revenues
4607 15,725 - - - Investment Earnings $$$$
4609 258 - - - Change in Fair Value
4644 48 660 185 - Other Miscellaneous Revenues
4648 15,000 10,000 15,000 15,000Loan Repayments
10,660 15,185 15,00031,031Miscellaneous Revenues Total $$$$
Rehabilitation Loan Program TOTAL 10,660 15,185 15,00031,031$$$$
37
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Rehabilitation Loan ProgramFUND:
Community DevelopmentDEPARTMENT:
Rehabilitation Loan Program - 91300BUSINESS UNIT:
Other Services & Charges
6103 21,436 31,750 29,250 29,750Professional Services -General $$$$
6301 - 100 100 100Advertising & Publication
6511 27,798 40,000 90,000 90,000Rehab Loan Program
71,850 119,350 119,85049,234Other Services & Charges Total $$$$
71,850 119,350 119,85049,234Rehabilitation Loan Program TOTAL $$$$
38
BUDGET SUMMARY - SECTION 8 HOUSING ASSISTANCE PROGRAM FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 (39,597)$ (39,597)$ (26,563)$ (26,563)$
Revenues:
Intergovernmental Revenues -
Federal Housing Assistance Plan 1,904,076 2,200,000 2,200,000 2,350,000
Miscellaneous Revenues:
Other 2,076 - - -
Total Revenues 1,906,152 2,200,000 2,200,000 2,350,000
Expenditures:
Other Services and Charges 1,893,118 2,200,000 2,200,000 2,350,000
Total Expenditures 1,893,118 2,200,000 2,200,000 2,350,000
Excess (Deficiency) of Revenues
Over Expenditures 13,034 - - -
FUND BALANCE - DECEMBER 31 (26,563)$ (39,597)$ (26,563)$ (26,563)$
39
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 Housing and Redevelopment Authority (HRA), the program also administers services to approximately 55 - 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.
2025 HIGHLIGHTS.
• Managed waiting list of 100 families from 2022 waiting list. • Implemented new HOTMA and NSPIRE-V regulatory changes required by HUD. • Richfield’s Section 8 staff was recognized by HUD staff for their exceptional administration of the program.
2026 PROGRAM GOALS
• Maintain a high percentage of Section 8 vouchers under lease. • Work to maintain HUD designation of “high performer.” • Continue to provide excellent customer service to clients and landlords. • Provide education and outreach to apartment owners and service providers about the program.
40
PROGRAM EXPENDITURE COMMENT
• A significant transfer to support Section 8 administration has not been needed in many years; however, recent trends with fewer voucher-holders finding units within the City have led to a potential deficit in 2025. This trend shows signs of reversing and the 2026 budget anticipates a smaller transfer.
41
Richfield HAPFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Richfield HAP - 91500BUSINESS UNIT:
Intergovernmental Revenues
4216 1,904,076 2,200,000 2,200,000 2,350,000ACC 1,2,3,5-HAP $$$$
2,200,000 2,200,000 2,350,0001,904,076Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 1,837 - - - Investment Earnings $$$$
4609 239Change in Fair Value
- - - 2,076Miscellaneous Revenues Total $$$$
Richfield HAP TOTAL 2,200,000 2,200,000 2,350,0001,906,152$$$$
42
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Richfield HAPFUND:
Community DevelopmentDEPARTMENT:
Richfield HAP - 91500BUSINESS UNIT:
Other Services & Charges
6502 2,446,861 2,900,000 2,900,000 3,200,000HAP Payments $$$$
6503 (553,743)(700,000)(700,000)(850,000)Portability HAP Credit
2,200,000 2,200,000 2,350,0001,893,118Other Services & Charges Total $$$$
2,200,000 2,200,000 2,350,0001,893,118Richfield HAP TOTAL $$$$
43
BUDGET SUMMARY - SECTION 8 ADMINISTRATION FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 184,904$ 184,904$ 150,191$ 150,191$
Revenues:
Intergovernmental Revenues -
Section 8 Administration Fee 241,320 270,000 264,460 342,760
Miscellaneous Revenues:
Port In Administrative Fees 61,337 80,000 50,000 52,000
Interest Earnings 13,955 - - -
Miscellaneous Revenues 1,773 1,500 1,500 1,500
Total Revenues 318,385 351,500 315,960 396,260
Expenditures:
Personal Services 240,307 252,110 253,020 260,580
Other Services and Charges 112,791 127,100 125,940 134,180
Total Expenditures 353,098 379,210 378,960 394,760
Excess (Deficiency) of Revenues
Over Expenditures (34,713) (27,710) (63,000) 1,500
Transfers From (To) Other Funds:
General Fund - 27,710 63,000 -
Net Transfers - 27,710 63,000 -
FUND BALANCE - DECEMBER 31 150,191$ 184,904$ 150,191$ 151,691$
44
SECTION 8 ADMINFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Section 8 Admin - 91501BUSINESS UNIT:
Intergovernmental Revenues
4217 241,320 270,000 264,460 342,760Admin Fee $$$$
270,000 264,460 342,760241,320Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 13,857 - - - Investment Earnings $$$$
4609 98 - - - Change in Fair Value
4638 61,337 80,000 50,000 52,000Portability Administration
4644 1,773 1,500 1,500 1,500Other Miscellaneous Revenues
81,500 51,500 53,50077,065Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - 27,710 63,000 - Operating Transfers In $$$$
27,710 63,000 - - Other Financing Sources Total $$$$
Section 8 Admin TOTAL 379,210 378,960 396,260318,385$$$$
45
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
SECTION 8 ADMINFUND:
Community DevelopmentDEPARTMENT:
Section 8 Admin - 91501BUSINESS UNIT:
Personal Services
6051 240,307 252,110 253,020 260,580Interdepartmental Labor $$$$
252,110 253,020 260,580240,307Personal Services Total $$$$
Other Services & Charges
6103 13,492 15,000 15,000 15,500Professional Services -General $$$$
6201 6,790 6,990 6,990 7,270Rents & Leases
6202 20,764 24,450 24,450 24,760Data Processing Rental
6301 92 500 500 500Advertising & Publication
6302 - 560 500 500Communications
6303 3,645 1,000 200 1,800Professional Development
6305 239 500 500 550Subscriptions & Memberships
6401 1,490 2,500 2,500 2,500Office Supplies
6402 1,990 1,900 1,900 2,100Copy Charges
6403 1,967 2,500 2,200 2,500Postage
6414 305 1,200 1,200 1,200Other Supplies
6501 62,017 70,000 70,000 75,000Portability Administrative Fee
127,100 125,940 134,180112,791Other Services & Charges Total $$$$
379,210 378,960 394,760353,098Section 8 Admin TOTAL $$$$
46
BUDGET SUMMARY - AFFORDABLE HOUSING TRUST FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 985,155$ 564,155$ 835,204$ 344,204$
Revenues:
Intergovernmental Revenues -
Grants Other - - - 100,000
Miscellaneous Revenues -
Interest & other 45,199 - 20,000 20,000
Total Revenues 45,199 - 20,000 120,000
Expenditures:
Other Services and Charges 115,150 986,000 1,571,000 541,000
Capital Outlay 80,000 240,000 240,000 160,000
Total Expenditures 195,150 1,226,000 1,811,000 701,000
Excess (Deficiency) of Revenues
Over Expenditures (149,951) (1,226,000) (1,791,000) (581,000)
Transfers From (To) Other Funds:
General Fund - - - -
Capital Reservel Fund - - - -
Special Revenue Fund - 985,000 1,300,000 500,000
Net Transfers - 985,000 1,300,000 500,000
FUND BALANCE - DECEMBER 31 835,204$ 323,155$ 344,204$ 263,204$
47
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.
2025 HIGHLIGHTS
• Funding is provided for the West Hennepin Affordable Housing Land Trust
(WHAHLT) to purchase and remodel up to three 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.
• A $1.57 million deferred loan will preserve and rehabilitate 236 rental units of
Naturally Occurring Affordable Housing (NOAH).
2026 FUND GOALS
• Provide funding for the purchase and rehabilitation of two to three homes by the
WHAHLT. The homes will be sold to income-qualified homebuyers using the land
trust model. (City Council Priority/Outcome 2c)
• 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)
• Provide up to two down payment assistance loans utilizing matching funds from
the State Affordable Housing Trust Fund grant.
FUND EXPENDITURE COMMENT
• The budget for the Affordable Housing Trust Fund must also be approved by the
City Council.
48
• The City was awarded a $150,000 matching grant from Minnesota Housing in
2025 to fund down payment assistance and acquisition/rehabilitation through the
community land trust. Expenditure of the three-year grant and its required local
match is expected to occur in 2026 and 2027.
• 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 one worksheet for simplicity. Allowable uses of
the special legislation funds are 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 a deferred loan awarded for preservation of NOAH rental units,
$1,300,000 will be transferred from the Temporary Spending Plan funds to the
Special Legislation Funds (the remaining $270,000 committed to the preservation
is currently available in the Trust Fund). In 2026, an additional $500,000 will be
transferred to fund a grant for the Aster Commons development.
49
AFFORDABLE HOUSING TRUSTFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Affordable Housing Trust - 91530BUSINESS UNIT:
Intergovernmental Revenues
4244 100,000Grants Other $$$$
100,000Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 44,359 - 20,000 20,000Investment Earnings $$$$
4609 820 - - - Change in Fair Value
4622 20 - - - Contributions & Donations
- 20,000 20,00045,199Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - 985,000 1,300,000 500,000Operating Transfers In $$$$
985,000 1,300,000 500,000- Other Financing Sources Total $$$$
Affordable Housing Trust TOTAL 985,000 1,320,000 620,00045,199$$$$
50
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
AFFORDABLE HOUSING TRUSTFUND:
Community DevelopmentDEPARTMENT:
Affordable Housing Trust - 91530BUSINESS UNIT:
Other Services & Charges
6103 150 1,000 1,000 1,000Professional Services -General $$$$
6511 115,000 985,000 1,570,000 540,000Rehab Loan Program
986,000 1,571,000 541,000115,150Other Services & Charges Total $$$$
Capital Outlay
7110 80,000 240,000 240,000 160,000Land Purchases $$$$
240,000 240,000 160,00080,000Capital Outlay Total $$$$
1,226,000 1,811,000 701,000195,150Affordable Housing Trust TOTAL $$$$
51
BUDGET SUMMARY - LOCAL AFFORDABLE HOUSING AID
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 -$ 133,600$ 150,048$ 593,911$
Revenues:
Intergovernmental
Grant 233,603 400,000 643,863 400,000
Interest 1,445
Total Revenues 235,048 400,000 643,863 400,000
Expenditures:
Other Services and Charges 85,000 260,000 200,000 400,000
Total Expenditures 85,000 260,000 200,000 400,000
Excess (Deficiency) of Revenues
Over Expenditures 150,048 140,000 443,863 -
Transfers From (To) Other Funds:
General Fund - -
Net Transfers - - - -
FUND BALANCE - DECEMBER 31 150,048$ 273,600$ 593,911$ 593,911$
52
LOCAL AFFORDABLE HOUSING AID
MISSION STATEMENT
Local Affordable Housing Aid (LAHA) provides funding to the City to help preserve and
create affordable housing.
FUND FOCUS
The State provides LAHA funding, collected through a dedicated metro-wide sales tax,
to communities to preserve and create affordable housing. Eligible activities include
construction and rehabilitation, rental assistance, downpayment assistance, and other
affordable housing activities authorized by the Legislature.
2025 HIGHLIGHTS
• Ten to eleven downpayment assistance loans are provided through the First-time
Homebuyer program supporting homeownership opportunities for income-
qualified buyers.
2026 FUND GOALS
• Ten to eleven down payment assistance loans will be provided through the First-
time Homebuyer program supporting homeownership opportunities for income-
qualified buyers.
• Two to three families will receive rental assistance through the Economic
Development Authority’s (EDA) Kids@Home Program, allowing for an expansion
of the Program. Funds are supplementing, not replacing existing EDA funding.
• Funding set aside for new initiatives will allow for the development of a new
program or programs designed to meet the needs and goals prioritized in the
2025 evaluation of HRA housing programs.
• In anticipation of the potential loss of federal Community Development Block
Grant (CDBG) funding, LAHA funds are budgeted to replace those funds, if
needed.
FUND EXPENDITURE COMMENT
• Local Affordable Housing Aid is paid in two equal installments in the year based
on the amount of sales tax available as of June 1 of that year. The first half is
paid on July 20 and the second half on December 26. First half payment
amounts have been released and the City will receive significantly more than
previously estimated - $644,000 vs. $400,000.
53
• The amount of available funding will vary depending on the amount of sales tax
collected and the number of cost-burdened households in the City. For 2026, we
will continue to estimate conservatively as we wait to determine trends.
• Funds must be spent within three years. Funds may not be used for
administrative expenses.
54
LAHA - Local Affordable Housing AidFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
LAHA - Local Affordable Housing Aid - 95100BUSINESS UNIT:
Miscellaneous Revenues
4234 233,603 400,000 643,863 400,000Low Income Housing Aid (LAHA)$$$$
4607 1,445 - - - Investment Earnings
400,000 643,863 400,000235,048Miscellaneous Revenues Total $$$$
LAHA - Local Affordable Housing Aid TOTAL 400,000 643,863 400,000235,048$$$$
55
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
LAHA - Local Affordable Housing AidFUND:
Community DevelopmentDEPARTMENT:
LAHA - Local Affordable Housing Aid - 95100BUSINESS UNIT:
Other Services & Charges
6504 - - - 15,000Kids@Home Payments $$$$
6511 85,000 260,000 200,000 385,000Rehab Loan Program
260,000 200,000 400,00085,000Other Services & Charges Total $$$$
260,000 200,000 400,00085,000LAHA - Local Affordable Housing Aid TOTAL $$$$
56
BUDGET SUMMARY - BRING IT HOME
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 -$ -$ -$
Revenues:
Miscellaneous Revenues:
Loan Repayments
Interest Earnings - - -
Other - 474,000 235,920
Total Revenues - 474,000 - 235,920
Expenditures:
Personal Services - 40,000 - 32,920
Other Services and Charges 138,995 203,000
Total Expenditures - 178,995 - 235,920
Excess (Deficiency) of Revenues
Over Expenditures - 295,005 - -
Transfers From (To) Other Funds:
General Fund - -
Net Transfers - - - -
FUND BALANCE - DECEMBER 31 -$ 295,005$ -$ -$
57
Bring It HomeFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Bring It Home - 95150BUSINESS UNIT:
Intergovernmental Revenues
4244 - 474,000 - 235,920Grants Other $$$$
474,000 - 235,920- Intergovernmental Revenues Total $$$$
Bring It Home TOTAL 474,000 - 235,920- $$$$
58
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Bring It HomeFUND:
Community DevelopmentDEPARTMENT:
Bring It Home - 95150BUSINESS UNIT:
Personal Services
6051 - 40,000 - 32,920Interdepartmental Labor $$$$
40,000 - 32,920- Personal Services Total $$$$
Other Services & Charges
6103 - 2,000 - 1,500Professional Services -General $$$$
6205 - 5,000 - 8,000Maintenance & Repairs
6301 - 750 - 750Advertising & Publication
6302 - 750 - 750Communications
6401 - 1,000 - 1,000Office Supplies
6402 - 500 - 500Copy Charges
6403 - 320 - 500Postage
6414 - 675 - 1,000Other Supplies
6502 - 128,000 - 189,000HAP Payments
138,995 - 203,000- Other Services & Charges Total $$$$
178,995 - 235,920- Bring It Home TOTAL $$$$
59
THIS PAGE WAS LEFT BLANK INTENTIONALLY
60
CAPITAL PROJECTS FUNDS
61
BUDGET SUMMARY - TEMPORARY SPENDING PLAN
2024 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 4,551,141$ -$ 4,753,345$ 3,423,345$
Revenues:
Miscellaneous Revenues-
Investment Earnings 202,204 - - -
Other Revenues
Total Revenues 202,204 - - -
Expenditures:
Other Services and Charges - - 30,000 30,000
Capital Outlay
Total Expenditures - - 30,000 30,000
Excess (Deficiency) of Revenues
Over Expenditures 202,204 - (30,000) (30,000)
Transfers From (To) Other Funds:
To Special Leg. Affordable Housing Trust Fund (985,000) (1,300,000) (500,000)
Net Transfers - (985,000) (1,300,000) (500,000)
FUND BALANCE - DECEMBER 31 4,753,345$ (985,000)$ 3,423,345$ 2,893,345$
2025
62
TEMPORARY SPENDING PLAN
MISSION STATEMENT
In 2022, the City and Housing and Redevelopment Authority (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. In 2025, the Legislature authorized an extension of one year to
December 31, 2026. 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, 2026.
Preference for financial assistance will be based on goals identified by the
Comprehensive Plan and the priorities identified in the City’s Strategic Plan.
2025 – 2026 FUND GOALS
• $750,000 had been committed to assist in the construction of a food hall and
taphouse on the vacant lot directly north of Lakewinds Co-op; however, this
proposal has been withdrawn.
• In 2025, the HRA authorized the transfer of $1,300,000 from the Temporary
Spending Plan Fund to the City’s Special Legislation Affordable Housing Trust
Fund to assist in the purchase of three naturally occurring affordable housing
communities by a preservation-buyer.
• In 2026, an additional $500,000 will be transferred to the Trust Fund to assist the
Aster Commons affordable housing development.
• 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)
63
FUND EXPENDITURE COMMENT
• 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, 2026, must be returned to their respective tax increment
districts.
• $4.4 million in pooled tax increment was transferred to Temporary Spending Plan
Fund.
Temporary Legislation Budget:
2025R 2026 Proposed
$30,000 Support duplex
construction at 6326 14th Ave
$30,000 Support duplex
construction at 6600 Newton
By end of year, transfer unspent
funds to Special Leg. AHTF
$1,300,000 Transfer out to Special
Leg. AHTF for NOAH preservation
$500,000 Transfer out to Special
Legis. AHTF for Aster Commons
64
BUDGET SUMMARY - DEVELOPMENT OPPORTUNITIES
2024 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 3,368,081$ 7,588,081$ 7,192,511$ 7,192,511$
Revenues:
Intergovernmental
Local Grant (401,777) - 1,468,200 1,850,000
Contributions & Donations 4,220,000 - - -
Miscellaneous Revenues-
Investment Earnings 15,620 - - -
Other Revenues - - 67,000 -
Total Revenues 3,833,843 - 1,535,200 1,850,000
Expenditures:
Other Services and Charges 37,720 32,500 327,400 46,000
Capital Outlay - 1,186,200 1,850,000
Total Expenditures 37,720 32,500 1,513,600 1,896,000
Excess (Deficiency) of Revenues
Over Expenditures 3,796,123 (32,500) 21,600 (46,000)
Transfers From (To) Other Funds:
Development TIF Funds (Sp Revenue Fund)(67,000)
Development TIF Funds (Capital Fund)28,307 32,500 45,400 46,000
Net Transfers 28,307 32,500 (21,600) 46,000
FUND BALANCE - DECEMBER 31 7,192,511$ 7,588,081$ 7,192,511$ 7,192,511$
2025
65
DEVELOPMENT OPPORTUNITIES FUND
MISSION STATEMENT
Support emerging redevelopment efforts in areas not currently located within Tax
Increment Financing (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.
2025 HIGHLIGHTS
• 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.
• Sold remnant land at 66th Street and Richfield Parkway to adjacent commercial
property owner.
• Received Tax Base Revitalization Account (TBRA) grants from the Metropolitan
Council to conduct environmental testing on the Legion site and environmental
remediation at 6501-25 Penn Avenue (Penn Station).
• Provided financial assistance to the Penn Station development through two
grants awarded to the development by the Metropolitan Council - Livable
Communities Demonstration Account (LCDA) Pre-development and LHIA.
2026 PROGRAM GOALS
• Provide support to redevelopment projects as opportunities arise. (City Council
Priority/Outcome 2b)
• Support approved projects until TIF resources are received.
• Provide financial support to the Aster Commons development with grants
awarded by the Metropolitan Council through LCDA and LHIA, if the
development receives a tax credit award in 2025.
66
PROGRAM EXPENDITURE COMMENT
• 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.
• As mentioned previously, HRA budgets can vary significantly from year-to-year
for a number of reasons. In this case, the significant increase in spending in
2025R reflects pass-through funding from a number of grants, rather than a
significant increase in spending.
67
Development OpportunitiesFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Development Opportunities - 92001BUSINESS UNIT:
Intergovernmental Revenues
4290 (401,777)- 1,468,200 1,850,000Other Local Grants $$$$
- 1,468,200 1,850,000(401,777)Intergovernmental Revenues Total $$$$
Miscellaneous Revenues
4607 14,988 - - - Investment Earnings $$$$
4609 632 - - - Change in Fair Value
4622 4,220,000 - - - Contributions & Donations
4647 - - 67,000 - Sale Proceeds
- 67,000 - 4,235,620Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 28,307 32,500 45,400 46,000Operating Transfers In $$$$
32,500 45,400 46,00028,307Other Financing Sources Total $$$$
Development Opportunities TOTAL 32,500 1,580,600 1,896,0003,862,150$$$$
68
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Development OpportunitiesFUND:
Community DevelopmentDEPARTMENT:
Development Opportunities - 92001BUSINESS UNIT:
Other Services & Charges
6103 637 21,000 156,000 23,000Professional Services -General $$$$
6205 15,041 - - 3,000Maintenance & Repairs
6310 4,339 3,000 4,400 5,000Taxes & Licenses
6315 17,703 8,500 20,000 15,000Other Contractual Services
6511 - - 147,000 - Rehab Loan Program
32,500 327,400 46,00037,720Other Services & Charges Total $$$$
Capital Outlay
7230 - - 850,000 1,850,000Building Improvements $$$$
7310 - - 336,200 - Site Improvements
- 1,186,200 1,850,000- Capital Outlay Total $$$$
Other Financing Uses
8511 - - 67,000 - Operating Transfers Out $$$$
- 67,000 - - Other Financing Uses Total $$$$
32,500 1,580,600 1,896,00037,720Development Opportunities TOTAL $$$$
69
BUDGET SUMMARY - LAKES AT LYNDALE
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 28,094$ 43,094$ 52,983$ 52,983$
Revenues:
Miscellaneous Revenues:
Interest 24,889 - - -
Total Revenues 24,889 - - -
Expenditures:
Other Services and Charges - 3,250 3,250 3,250
Capital Outlay - 23,000 14,000 14,000
Total Expenditures - 26,250 17,250 17,250
Excess (Deficiency) of Revenues
Over Expenditures 24,889 (26,250) (17,250) (17,250)
Transfers From (To) Other Funds:
Special Revenue Fund - - - -
Development TIF Funds (Capital Fund)- 26,250 17,250 17,250
Net Transfers - 26,250 17,250 17,250
FUND BALANCE - DECEMBER 31 52,983$ 43,094$ 52,983$ 52,983$
70
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.
2025 HIGHLIGHTS
• Undertake branding initiative to guide future (2026) small area plan for
Downtown.
2026 PROGRAM GOALS
• Continued implementation of area way-finding signage program, incorporating
new branding guidelines.
• Continue to pursue additional redevelopment opportunities in the area.
• Work with Engineering to continue to explore opportunities to increase
pedestrian safety at 64th Street crossing of Lyndale Avenue.
71
PROGRAM EXPENDITURE COMMENT
• The Lakes at Lyndale Master Plan and expenses incurred in the ongoing
general planning for redevelopment of the downtown represents one fund.
• Approximately $35,000 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 2025 and 2026.
• As development projects occur, a separate fund is established for each
project.
• Reimbursements of development related expenses incurred by the HRA
come from the developer once a Contract for Redevelopment is in place.
72
Lakes at LyndaleFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Lakes at Lyndale - 92900BUSINESS UNIT:
Miscellaneous Revenues
4607 22,275 - - - Investment Earnings $$$$
4609 2,614Change in Fair Value
- - - 24,889Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - 26,250 17,250 17,250Operating Transfers In $$$$
26,250 17,250 17,250- Other Financing Sources Total $$$$
Lakes at Lyndale TOTAL 26,250 17,250 17,25024,889$$$$
73
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Lakes at LyndaleFUND:
Community DevelopmentDEPARTMENT:
Lakes at Lyndale - 92900BUSINESS UNIT:
Other Services & Charges
6103 - 3,250 3,250 3,250Professional Services -General $$$$
3,250 3,250 3,250- Other Services & Charges Total $$$$
Capital Outlay
7330 - 23,000 14,000 14,000Streets & Sidewalks $$$$
23,000 14,000 14,000- Capital Outlay Total $$$$
26,250 17,250 17,250- Lakes at Lyndale TOTAL $$$$
74
BUDGET SUMMARY - LYNDALE GARDEN CENTER
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 (14,347)$ (14,347)$ (9,903)$ (9,903)$
Expenditures:
Other Services and Charges 156 4,600 4,600 4,600
Total Expenditures 156 4,600 4,600 4,600
Transfers From (To) Other Funds:
General Fund 4,600 4,600 4,600 4,600
Net Transfers 4,600 4,600 4,600 4,600
FUND BALANCE - DECEMBER 31 (9,903)$ (14,347)$ (9,903)$ (9,903)$
75
Lyndale Garden CenterFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Lyndale Garden Center - 93300BUSINESS UNIT:
Other Financing Sources
8051 4,600 4,600 4,600 4,600Operating Transfers In $$$$
4,600 4,600 4,6004,600Other Financing Sources Total $$$$
Lyndale Garden Center TOTAL 4,600 4,600 4,6004,600$$$$
76
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Lyndale Garden CenterFUND:
Community DevelopmentDEPARTMENT:
Lyndale Garden Center - 93300BUSINESS UNIT:
Other Services & Charges
6103 156 4,600 4,600 4,600Professional Services -General $$$$
4,600 4,600 4,600156Other Services & Charges Total $$$$
4,600 4,600 4,600156Lyndale Garden Center TOTAL $$$$
77
BUDGET SUMMARY - CEDAR POINT COMMONS
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 (137,697)$ (135,697)$ (134,697)$ (132,697)$
Expenditures:
Other Services and Charges - 1,000 1,000 1,000
Total Expenditures - 1,000 1,000 1,000
Transfers From (To) Other Funds:
Capital Project - - - -
General Fund 3,000 3,000 3,000 3,000
Net Transfers 3,000 3,000 3,000 3,000
FUND BALANCE - DECEMBER 31 (134,697)$ (133,697)$ (132,697)$ (130,697)$
78
CEDAR POINT COMMONS
PROGRAM FOCUS
The purpose of this program was to promote and facilitate the redevelopment of the Cedar Point Commons area and to administer the tax abatement and other public support needed for the redevelopment.
PROGRAM EXPENDITURE COMMENT
With the tax abatement district now closed (2022), the activity in this fund represents only the repayment of expenses incurred during the life of the district and minor budgeted funds for possible legal expenses.
79
Cedar Point Redevelopment AreaFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Cedar Point Redevelopment Area - 93600BUSINESS UNIT:
Other Financing Sources
8051 3,000 3,000 3,000 3,000Operating Transfers In $$$$
3,000 3,000 3,0003,000Other Financing Sources Total $$$$
Cedar Point Redevelopment Area TOTAL 3,000 3,000 3,0003,000$$$$
80
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Cedar Point Redevelopment AreaFUND:
Community DevelopmentDEPARTMENT:
Cedar Point Redevelopment Area - 93600BUSINESS UNIT:
Other Services & Charges
6103 - 1,000 1,000 1,000Professional Services -General $$$$
1,000 1,000 1,000- Other Services & Charges Total $$$$
1,000 1,000 1,000- Cedar Point Redevelopment Area TOTAL $$$$
81
BUDGET SUMMARY - CEDAR CORRIDOR
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 710,088$ 721,788$ 737,566$ 737,566$
Revenues:
Intergovernmental - - - -
Local Grant -
Miscellaneous Revenues:
Interest 30,269 - - -
Other - - -
Total Revenues 30,269 - - -
Expenditures:
Other Services and Charges 2,791 1,000 2,500 1,000
Capital Outlay - - - -
Total Expenditures 2,791 1,000 2,500 1,000
Excess (Deficiency) of Revenues
Over Expenditures 27,478 (1,000) (2,500) (1,000)
Transfers From (To) Other Funds:
Development TIF Funds - 1,000 2,500 1,000
General Fund - - - -
Net Transfers - 1,000 2,500 1,000
FUND BALANCE - DECEMBER 31 737,566$ 721,788$ 737,566$ 737,566$
82
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
• Administer Tax Increment Financing (TIF) and other financial and administrative
needs associated with the redevelopment project.
• Reassess the feasibility and location of further redevelopment of the Cedar
Corridor area and Richfield Parkway routing.
• More proactively market Housing and Redevelopment Authority (HRA) owned
properties at 7200 Cedar and 1600 and 1710 E 78th Street to correspond to the
construction of the 77th Street tunnel.
• Pursue grant funding as appropriate and available to facilitate redevelopment and
implement project components.
PROGRAM EXPENDITURE COMMENT
• The majority of the initial costs were funded through an interfund loan from the
HRA General Fund, which will eventually be reimbursed from TIF funds generated
by the RF64 townhomes.
• 2025R and 2026 Budgets continue funding at a minimal baseline. Reassessment
of the Cedar Corridor area is not in the current workplan, but could potentially
occur alongside the Comprehensive Plan budget.
83
CEDAR CORRIDOR TIFFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
CEDAR CORRIDOR - 93650BUSINESS UNIT:
Miscellaneous Revenues
4607 30,244 - - - Investment Earnings $$$$
4609 25 - - - Change in Fair Value
- - - 30,269Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 - 1,000 2,500 1,000Operating Transfers In $$$$
1,000 2,500 1,000- Other Financing Sources Total $$$$
CEDAR CORRIDOR TOTAL 1,000 2,500 1,00030,269$$$$
84
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
CEDAR CORRIDOR TIFFUND:
Community DevelopmentDEPARTMENT:
CEDAR CORRIDOR - 93650BUSINESS UNIT:
Other Services & Charges
6103 2,791 1,000 2,500 1,000Professional Services -General $$$$
1,000 2,500 1,0002,791Other Services & Charges Total $$$$
1,000 2,500 1,0002,791CEDAR CORRIDOR TOTAL $$$$
85
BUDGET SUMMARY- PENN CORRIDOR
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 89,265$ 89,265$ 89,265$ 88,465$
Revenues:
Intergovernmental
Local Grants - - - -
Interest - - - -
Total Revenues - - - -
Expenditures:
Other Services and Charges 1,200 6,850 800 10,800
Capital Outlay - 25,500 - -
Total Expenditures 1,200 32,350 800 10,800
Excess (Deficiency) of Revenues
Over Expenditures (1,200) (32,350) (800) (10,800)
Transfers From (To) Other Funds:
General Fund - - -
Development TIF Funds (Capital)1,200 32,350 - -
Net Transfers 1,200 32,350 - -
FUND BALANCE - DECEMBER 31 89,265$ 89,265$ 88,465$ 77,665$
86
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.
2025 HIGHLIGHTS
• Continued to pursue redevelopment opportunities with developers interested in
projects in the Penn Avenue Corridor.
• Completed purchase of 6525 Penn Avenue and subsequent sale of 6501-6525
Penn Avenue to JO Companies for development of housing.
2026 PROGRAM GOALS
• Continue to guide, encourage, and facilitate redevelopment and reinvestment
within the Corridor as opportunities arise and as practicable. (City Council
Priority/Outcome 2b)
• Consider strategic acquisitions along the Corridor as opportunities become
available.
• Monitor revitalization and redevelopment efforts to ensure conformance with the
Master Plan and Design Guidelines, as well as compliance with City Codes.
• Continue to seek outside funding sources to assist with revitalization and
redevelopment of the corridor.
EXPENDITURE COMMENT
• Funding related to the JO Companies development provided by the Housing and
Redevelopment Fund (TIF-eligible expenses).
87
Penn CorridorFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Penn Corridor - 93750BUSINESS UNIT:
Other Financing Sources
8051 1,200 32,350 - - Operating Transfers In $$$$
32,350 - - 1,200Other Financing Sources Total $$$$
Penn Corridor TOTAL 32,350 - - 1,200$$$$
88
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Penn CorridorFUND:
Community DevelopmentDEPARTMENT:
Penn Corridor - 93750BUSINESS UNIT:
Other Services & Charges
6103 - 6,000 - 10,000Professional Services -General $$$$
6315 1,200 850 800 800Other Contractual Services
6,850 800 10,8001,200Other Services & Charges Total $$$$
Capital Outlay
7230 - 25,500 - - Building Improvements $$$$
25,500 - - - Capital Outlay Total $$$$
32,350 800 10,8001,200Penn Corridor TOTAL $$$$
89
BUDGET SUMMARY - HOUSING & REDEVELOPMENT FUND
2024 2025 2026
AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget
FUND BALANCE - JANUARY 1 3,056,947$ 3,282,042$ 4,299,079$ 4,378,499$
Revenues:
Miscellaneous Revenues:
Interest 83,112 30,000 30,000 20,000
Sale of Property - - - -
Loan Repayment Revenue 30,000 15,000 15,000 15,000
Total Revenues 113,112 45,000 45,000 35,000
Expenditures:
Other Services and Charges 1,000 50,000 50,000 50,000
Capital Outlay 61,341 306,000 511,000 155,000
Total Expenditures 62,341 356,000 561,000 205,000
Excess (Deficiency) of Revenues
Over Expenditures 50,771 (311,000) (516,000) (170,000)
Transfers From (To) Other Funds:
Interchange West - 98070 811,675 213,330 213,330 -
Urban Village - 98120 151,207 149,700 149,700 -
City Bella - 98150 103,905 101,370 101,370 101,370
Lyndale Gardens - 98130 46,774 53,160 53,160 53,160
TIF 2014-1 - 98165 28,472 28,530 28,530 28,530
Cedar Corridor - 98160 49,328 16,940 49,330 49,330
- - -
- - -
Net Transfers 1,191,361 563,030 595,420 232,390
FUND BALANCE - DECEMBER 31 4,299,079$ 3,534,072$ 4,378,499$ 4,440,889$
90
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 (TIF) 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.
2025 HIGHLIGHTS
• Funds were made available for up to one credit and one purchase of a
substandard property through the Richfield Rediscovered program.
• Funds assisted the Woodlawn Terrace manufactured home community with utility
upgrades.
2026 FUND GOALS
• 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.
• Strategically acquire blighted, substandard and/or underutilized properties along
the City’s commercial corridors, as opportunities arise, to facilitate redevelopment
in these areas.
FUND EXPENDITURE COMMENT
• The Housing & Redevelopment Fund pays for many programs and projects that
91
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.
• Revenues will drop significantly for 2026 as the Interchange West and Urban
Village TIF Districts decertify at the end of 2025. The full tax capacity of these
projects will be captured by all taxing jurisdictions going forward.
• It is required that the funds generated by each district be managed in separate
accounts rather than “one fund.”
• State Statute strictly controls the use of these funds.
92
Housing Fund GramercyFUND:
DETAIL REVENUES BY BUSINESS UNIT
CLASSIFICATIONS
Community DevelopmentDEPARTMENT:
BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Housing Fund Gramercy - 98500BUSINESS UNIT:
Miscellaneous Revenues
4607 81,789 30,000 30,000 20,000Investment Earnings $$$$
4609 1,323 - - - Change in Fair Value
4648 30,000 15,000 15,000 15,000Loan Repayments
45,000 45,000 35,000113,112Miscellaneous Revenues Total $$$$
Other Financing Sources
8051 1,191,361 563,030 595,420 232,390Operating Transfers In $$$$
563,030 595,420 232,3901,191,361Other Financing Sources Total $$$$
Housing Fund Gramercy TOTAL 608,030 640,420 267,3901,304,473$$$$
93
DETAIL EXPENDITURES BY BUSINESS UNIT
CLASSIFICATIONS BUDGET
2026
REVISED
2025
BUDGET
2025
ACTUAL
2024
Housing Fund GramercyFUND:
Community DevelopmentDEPARTMENT:
Housing Fund Gramercy - 98500BUSINESS UNIT:
Other Services & Charges
6511 1,000 50,000 50,000 50,000Rehab Loan Program $$$$
50,000 50,000 50,0001,000Other Services & Charges Total $$$$
Capital Outlay
7110 5,391 306,000 161,000 155,000Land Purchases $$$$
7230 55,950 - - - Building Improvements
7320 - - 350,000 - Installation of Public Util
306,000 511,000 155,00061,341Capital Outlay Total $$$$
356,000 561,000 205,00062,341Housing Fund Gramercy TOTAL $$$$
94
RESOLUTIONS
95
HRA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 2026 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2026 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1.
Section 2.
Section 3.
The budget for the Housing and Redevelopment Authority
General Fund of Richfield for the year 2026 in the amount of
$756,430 is hereby ratified.
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
2025, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2026, in the
amount of $914,588 is hereby approved.
There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2025, payable in 2026 for the
following purposes:
Housing and Redevelopment Authority $742,230
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 18th day of August, 2025.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
96
97
RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2025 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No.1487 appropriated funds for personal services and other
expenses and capital outlay for the Housing and Redevelopment Authority for the year
2025 and
WHEREAS, The Executive Director has requested a revision of the 2025 budget as
detailed in the 2026 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2025 appropriation for the Housing and Redevelopment
Authority General Fund is revised as follows:
$252,790 increase
Section 2. Estimated 2025 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 2026 budget
document, are hereby revised as follows:
$40,580 increase
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 18th day of August, 2025.
Erin Vrieze Daniels, Chair
ATTEST:
Sean Hayford Oleary, Secretary
THIS PAGE WAS LEFT BLANK INTENTIONALLY
98
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #5.
STAFF REPORT NO. 23
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
8/18/2025
REPORT PREPARED BY: Hilary Lovelace & Celeste McDermott, Housing Specialists
EXECUTIVE DIRE CTOR RE VIEW: Julie Urban, Acting Executive Director
8/13/2025
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the approval of an amended Contract with the Center for Energy and Environment to
provide additional funding for Community Fix-Up Fund loan services to Richfield homeowners for 2025,
and funds for loan services, Remodeling Advisor visits, and administration fees as approved in the
2026 Budget.
EXECUTIVE SUMMARY:
The Housing and Redevelopment Authority (HRA) has contracted with the Center for Energy and
Environment's (CEE) Lending Center to provide loan and remodeling advising services to Richfield residents
since 2017. CEE administers the Community Fix-Up Fund (CFUF), which provides home rehabilitation loans
at a reduced interest rate to income-qualified homeowners. The recent evaluation of the HRA's housing
programs identified the CFUF as an opportunity to leverage investment in the City's housing stock.
Approval of an amended Contract is needed for CEE to continue providing CFUF loans to Richfield
homeowners, as the $40,000 in funds budgeted for 2025 were spent in creating seven loans the first four
months of this year. The proposed Contract amendment includes the following changes:
1.an addition of $50,000 for the CFUF through 2025 and
2.an increase in the interest rate from three percent to five percent.
The Contract also includes $90,000 in funding for 2026, along with $32,500 in administration and remodeling
advising fees, as approved in the 2025 Revised and 2026 HRA Budget.
RECOMMENDED ACTION:
By motion: Approve an amended Contract with the Center for Energy and Environment for 2025-2026
providing additional funding for lending services through the rest of calendar year 2025, increasing the
subsidized interest rate to five percent, and providing funding for 2026 services.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
CEE's Lending Center has extensive experience in providing lending and remodeling services and offers
these services to several communities in the metro area.
In 2025, $40,000 was budgeted toward CFUF loan write-downs. All funds were committed by May 2025.
In 2024, CEE originated four CFUF loans and was able to write down the interest-rate for income-
qualified homeowners with $35,700 from the HRA's budget.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Resources for funding home improvements will help residents to make repairs on their homes they might
otherwise not be able to afford, which increases housing stability.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Adding more money to the Contract with CEE would enable the City to continue offering valuable
remodeling resources to its residents and meet the Comprehensive Plan goal of supporting the
rehabilitation and upgrading of the existing housing stock.
The 2025 Housing Program Evaluation identified the CFUF interest-rate write-down program as an
effective program for leveraging investment in the City's housing stock.
D.CRITICAL TIMING ISSUES:
The CFUF has been on pause since May of this year, and interest in the loans continues to persist.
Currently there are several applicants in the queue waiting to apply.
E.FINANCIAL IMPACT:
Minnesota Housing has approved the additional funding and rate change.
HRA funds are available to write down the Fix-Up Fund interest rate to five percent; the current interest
rates available statewide with no buydown are currently set at seven and a half percent for a ten-year loan.
The 2025 Revised and 2026 Budgets include $180,000 for loans, $10,000 for administration
fees, and $22,500 for Remodeling Advisor visits for a total Contract amount of $212,500
over the two-year period.
F.LEGAL CONSIDERATION:
The HRA Attorney reviewed the original Contract.
ALTERNATIVE RECOMMENDATION(S):
Decide not to approve the Contract.
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A
ATTACHMENTS:
Description Type
Amendment CEE 081825 Cover Memo
AMENDMENT 8 to the LOAN ORIGINATION AGREEMENT
Between
HOUSING AND REDEVOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD
And
CENTER FOR ENERGY AND ENVIRONMENT
City of Richfield Home Improvement Loan Program
The Agreement made the 1st day of October, 2017 by and between the HOUSING AND
REDEVOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, with offices at
6700 Portland Ave, Richfield, MN 55423, (the “Authority”), and the CENTER FOR ENERGY
AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis,
Minnesota 55401 (“CEE”) is hereby amended.
Exhibit A7 shall be replaced by Exhibit A8 (attached)
Exhibit B7 shall be replaced by Exhibit B8 (attached)
Section 5. Term and Termination of the agreement shall read:
5.1
Unless earlier terminated as provided in the following paragraphs, this Agreement shall
become effective on January 1, 2025 and continue through December 31, 2026.
All other sections of the contract shall remain as written in the original and amended agreements.
IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below:
HOUSING AND REDEVOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
CENTER FOR ENERGY AND
ENVIRONMENT
By ___________________________ By __________________________
Erin Vrieze Daniels, Chair Stephanie Haddad, COO
Date __________________________ Date _________________________
CEE #5155
By ___________________________ TAX ID 41-1647799
Melissa Poehlman, Executive Director
Date __________________________
Exhibit A8 Page 1
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
EXHIBIT A8
PROGRAM GUIDELINES
This document includes guidelines for the
MHFA Interest Subsidy Program
Exhibit A8 Page 2
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
RICHFIELD LOAN PROGRAM GUIDELINES
The HOUSING AND REDEVELOPMENT AUTHORITY is making funds available for homeowners to assist
with home maintenance and energy improvements. The Richfield Interest Subsidy Program is designed
to supplement existing loan programs available from MHFA, CEE, private lenders, and other housing
resources. This program is not intended to be the sole source of improvement funds available to the
City. Center for Energy and Environment shall serve as the administrator for the Richfield Interest
Subsidy Program and will secure the most beneficial financing based on the borrower’s needs
independent of the funding source.
Richfield Interest Subsidy Program
Interest Rate: 5% fixed
Amortization Type: Amortizing (Monthly Payments Required)
Loan Amount: Minimum of $2,000 and Maximum of $35,000.
Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from personal savings, gifts, or other loan
funds.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum
term will be 15 years.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Richfield. Townhomes and Condominiums are eligible, subject to Association Bylaws.
Properties may be held in a Contract for Deed.
Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time
shares, properties held in the name of a trust and properties used for commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Businesses, Foreign Nationals, Non-Occupant Co-
Borrowers, and Properties held in the name of a trust.
Exhibit A8 Page 3
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
Ownership/Occupancy: Owner- occupied only.
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110% of the property value. Half of the improvement value may be added to the initial
property value.
Income Limit: The property owner’s household income shall not exceed 115% of the HUD Regional
Median Income based on household size or the MHFA income limit, whichever is less. Income for
eligibility will be determined by the projected income for the next 12 months per MHFA guidelines...
This limit adjusts annually.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a
debt-to-income ratio more than 48% will be ineligible to receive financing.
Credit Requirements: All borrowers must have a minimum credit score of 620 and: 1) All mortgage
payments must be current and reflect no 30-day late payments history in the past 12 month period
(without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding
judgements or collections (excluding medical). 4) Bankruptcy must have been discharged for at least 18
months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at
least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late
payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons:
medical, unemployment, divorce. 7) No defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed $35,000.
Eligible Use of Funds: Same as the current MHFA guidelines
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances, and funds for working capital, debt
service, homeowner labor or refinancing existing debts are NOT allowed.
Bids: Only one bid/estimate is required. All contractors must be properly licensed.
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent
tools/ equipment or compensate for labor. The property owner will provide evidence to CEE that they
have the ability to complete the work and complete a Homeowner Labor Agreement.
Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or
remodeling advice upon request of the resident. The intent is to help residents improve their homes by
providing technical assistance before and during the bidding and construction process. All homeowners
are eligible for this service regardless if applying for the Richfield Interest Subsidy Program or not. This
visit is not required.
Loan Security: Determined by MHFA requirements.
Exhibit A8 Page 4
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
Borrower Fees: Borrower will be responsible for a 1% Origination Fee (which may be financed),
mortgage filing and service fees, flood certificate fee, credit report fee, document preparation fee and
any other applicable closing fees.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE’s
underwriting guidelines. CEE’s decision shall be final.
Work Completion: All work must be completed within 9 months of the loan closing.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including the following in order to be
considered for funding.
➢ Completed and signed application form
➢ Proof of income
➢ Proof of Identity (drivers license, passport, etc.)
➢ Bids or estimates for proposed projects
➢ Other miscellaneous documents that may be required.
Program Costs: Loan origination, interest subsidy and remodeling advisor visit fees will be paid out of
the Program Budget. Loan program marketing efforts will be billed directly to the City of Richfield and is
a separate expense should the city choose to commission CEE for marketing support.
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Funds are disbursed to the borrower(s)
Exhibit B6
EXHIBIT B8
TOTAL PROGRAM BUDGET $212,500
RICHFIELD LOAN PROGRAM BUDGET
A. MHFA Interest Subsidy Program Budget Allocation (includes Annual Administration
Fee and Interest Subsidy): 2025: $95,000
2026: $95,000
Remodeling Advisor Visit Budget: 2025: $11,250
2026: $11,250
Budget Notes:
1. CEE shall submit monthly invoices for loan program and administrative fees for that
period.
2. Services performed by CEE will be funded from the Total Program Budget as stated
above and paid in accordance with the following schedule.
(1) Annual Administration Fee $5,000
(2) MHFA Interest Subsidy $varies on loan amount and term
(3) Remodeling Advisor Visit $250.00 per visit
The Annual Administration Fee shall be payable on January 1 st of each year the
contract is active.
3. Marketing
Marketing efforts will be supported by CEE and marketing costs are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be
charged only for hours directly related to the labor of all program marketing. CEE will
also be reimbursed by City of Richfield for any non-labor, out-of-pocket expenses
relating to these services on a dollar-for-dollar basis.