[0:20] Ready? [0:27] Here we go. [0:34] Well, good morning everybody. It is Thursday, August 28th, 2025, 7:30 in the morning, and this is the uh gathering [0:42] and meeting of the Atlanta Housing Redevelopment Authority. This is an example of life going on. Um, [0:50] highways are congested, people are moving about doing the things they have to do in life. But yesterday [0:57] was pretty tragic day in the Twin Cities, particularly in Minneapolis and particularly for the [1:04] parents and the kids at Enunciation Church in South Minneapolis. [1:10] And last night, my wife and I went over to Lynhurst Park, part of that gathering over there, that candlelight vigil. [1:18] heard many of our uh leaders, including the mayor of Minneapolis, uh [1:24] articul articulately express their emotions around this uh terrible tragedy where, as the principal of the grade [1:32] school said, a couple of angels uh were created yesterday. An 8-year-old and a [1:37] 10-year-old whose identities we don't not we do not yet know. [1:42] And of course, people in our town are worried, too. But uh uh we've tried to [1:47] assure them uh folks have wondered whether this is something that's anti-atholic [1:53] uh by circumstance that happened here over the last few days. So we've been coordinating with Our Lady [2:00] of Grace and other private schools uh about security and uh this is not to um [2:08] indicate that this is something new. This is something that we do on a regular basis. Uh and with our public [2:14] schools, um emails coming in about whether first floor windows in our [2:20] schools are adequately protected because we used to think that trouble [2:26] happened inside and now it can happen from the outside too. [2:31] And so um even though this phenomenon of [2:36] life going on, we know that presidents get assassinated as we did as it h happened with John Kennedy. Life just [2:43] kept moving on and life will move on here too. But for a moment this morning and um I think for a while yet we'll hit [2:51] that pause button and think about these families. uh the staff at uh Annunciation Church [2:59] uh our first responders and in that regard I want to I want to commend the uh city vina police department. Uh they [3:07] were some of the first to respond. Our chief was over there helping coordinate things for the city of Minneapolis. We [3:13] had about four or five officers there as well as we learned uh from our city manager yesterday who tried to keep us [3:19] informed of what was going on. So, uh, we sent yesterday afternoon, uh, [3:26] to the broad public a note of, uh, empathy and support, and, uh, that was, uh, earnest and [3:33] heartfelt, and we will be there and stand with the people of Minneapolis and the, uh, the congregation and people at [3:40] Enunciation Church to help them any way that we can as good neighbors. [3:48] And our thoughts and prayers are with the families involved. So, uh, [3:54] on we go here, uh, turning to the, uh, work of the day, uh, keeping in mind all [3:59] of those, uh, people that that need our special thoughts and prayers. So, thanks for that, uh, that moment. And let's [4:06] just have a moment of silence. [4:28] Thank you everybody. Thanks to the folks that are here this morning with us to talk about uh things that are housing [4:35] related. Uh as people know, we're doing these meetings on a hybrid sort of [4:40] basis. Uh folks can watch us online. Uh some folks come into the uh actual [4:46] meeting and can testify. We've got a couple opportunities usually for people to testify. So, um, uh, there's a phone number on [4:54] the screen if anybody's watching and wants to call in. We welcome you calling in with any concerns that you have to [5:00] address with the commissioners. I'll now call the meeting to order and ask our executive director and our city [5:07] manager, Scott Neil, to call the role. Commissioner Risser, here. Commissioner Jackson, [5:12] here. Commissioner Pierce, here. Commissioner Agnu, here. Chair Huffman here. Next is the pledge of [5:18] allegiance. I pledge algiance to the flag of the [5:24] United States of America and to the republic for which it stands. One nation [5:30] under God, indivisible, with liberty and justice for all. [5:39] We've got a form of meeting agenda that was published for this morning's meeting. Uh, is there any anyone on the [5:45] council or from a staff standpoint that wishes to modify the meeting agenda any form or fashion? Is there a motion to [5:51] approve the form of meeting agenda? So moved. Second. Commissioner Jackson moves. Commissioner Pierce the adoption of the meeting [5:57] agenda. The meeting agenda as published. Any further discussion? All those in favor of approval of the meeting agenda [6:04] say I. I. I. Opposed. Carried. The meeting agenda is approved. And uh [6:10] we will now turn to that meeting agenda. And the first thing we have in that meeting agenda is community comment. So [6:15] if there's anyone in the audience here that wishes to address the council on a matter of concern to them or the uh HA I [6:23] should say. Um please feel free to come forward. I don't see anybody coming [6:28] forward. I'm going to check with our communications director Jennifer Beneront to determine whether we have [6:33] anybody online that would Good morning. I don't have anyone online, but um because there is a slight [6:39] delay in the broadcast, I would recommend that we wait about a minute before moving on, making sure we're [6:44] giving people adequate time uh to dial in. My clock shows that it's 7:37. I'll [6:49] come back to you at 7:38 or when I have a caller, whichever's first. [8:07] It's been a minute and I still don't have a caller. So, I think it's safe for you to move forward with the agenda. [8:12] Okay. Thank you. Our usual practice after community comment, whether it's us [8:18] sitting as the HR or the city council, is to turn to our city manager or executive director when we're in an H [8:24] meeting to see if there are any responses to community comments made in the prior meeting. And I don't think [8:29] there were any that you needed. We had no community comment at the last H meeting. Very good. We've got about a half a [8:36] dozen items on the consent agenda. Is there anyone on the H that wishes to remove an item from the consent agenda [8:42] for individual discussion? Is there a motion to adopt the items on [8:48] the consent agenda in a single motion? So moved. Second. Mr. Jackson moves. Commissioner Pierce seconds the adoption of the items on the [8:54] consent agenda in a single motion. Any further discussion? All those in favor of adoption of those four items on the [9:00] consent agenda and a single motion say I. I. I. Opposed. Carried. Those items are [9:05] adopted and approved. Um we are next going to turn to kind of [9:11] the heart of the meeting and that is uh incidentally the um the documents that [9:16] we're going to prepare relating to 3400 Parkland 5010 Summit Avenue. Uh some [9:21] nice work there over you know it's going to be a a great restoration or [9:27] improvement of that of those two properties and I think we're all keen on [9:32] on seeing what's happening there. Right. It's very exciting. Um they it took a while as with a 100% affordable [9:39] housing developments o um happens whether their rehabilitation or new [9:45] construction multiple years of funding cycles before all the money comes together. But the money's together. [9:50] They're hoping to close soon. And so now we need to get the documents ready so they can get the work done. And just so [9:56] people know, those are longtime affordable housing units for people with disabilities and seniors that are what [10:03] close to 130 units I think total between the two buildings and and we're going to help with the rehabilitation of those [10:08] buildings. And that is correct. And and get them in good shape for a couple decades to come. [10:14] Yes. Very good. uh on the reports and recommendations portion of the agenda. This is the Stephanie Hawinson show this [10:20] morning and uh we're going to have uh uh her recommendations here on what we call [10:26] local affordable housing aid. That was something passed by the legislature. She's going to walk through all of that. [10:32] And uh we are getting a certain amount of I think sales tax proceeds uh from [10:39] law as so many acronyms in government. Uh that's our one of our newest ones, [10:46] local affordable housing aid, and she's got some recommendations on how to use those funds. So, welcome member [10:52] Stephanie Hawinson. Thank you. Thank you. Uh you took away a little bit of the wind for my sales to explain. Um [11:01] yes, this is the second year that we have received the funding. Um, this is a quarter percent sales tax that's applied [11:08] metrowide and to help preserve affordable housing within different all the jurisdictions [11:16] um in order to keep families from losing housing and to help those experienced homelessness find housing. That was the [11:22] original intent of these funds. [11:30] So they have to be spent on a qualifying project and uh in addition to helping [11:36] with homeless prevention. So emergency rental assistance is like the what [11:41] instigated the passage of this funding, but it's financial support for nonprofits. um affordable housing [11:48] providers, construction, acquisition, rehab, demolition of affordable housing, [11:54] um financing, operations and management for distress properties and operating [11:59] emergency shelter facilities. Those are some of the larger buckets um for how [12:04] these funds can be used [12:11] in 2025. This year we are receiving $875,381.99. [12:21] I am happy to throw in that extra penny if that helps make difference. This is an increase over the 2024 allocation [12:28] which was $339,000 plus change because it was a partial year last year. [12:34] Um this is the amount that each city receives is based on a distribution [12:40] factor related to housing cost burden. So they take housing cost burn across the metro and they give there's a [12:48] percentage of what portion of what we are experiencing housing um cost burden [12:53] relative to everyone else. So our distribution factor was for what it's [12:58] worth um 0.0211 [13:03] last year and this year it is 0205. So we have slightly less housing cost [13:10] burden than we had last year. So, in coming up with this list of how [13:15] the money should be spent, I did um make uh come up with uh this plan and I [13:22] shared it with the values viewfinder just to make sure that since one of our budget pillars um we look through the [13:31] values viewfinder lens, I wanted to make sure that this aligned with how the process and how this was being allocated [13:38] aligned with what they envision. And so we have met and what I am proposing is [13:45] what you see here is 200,000 to VEP for emergency rental assistance. Um close to [13:52] 582,000 for our affordable ownership preservation program and then 935 for [13:59] Mount Olivet rolling acres for rehab of their two facilities in Nidina. [14:07] So, as stated, $200,000 for VEP for their emergency rental assistance program. This is a short-term aid to [14:14] households who are experiencing an event that causes them to fall short of funds for paying rent, such as illness, gap [14:20] between jobs, etc. It is not intended to be long-term rental assistance. It's a [14:26] short-term emergency fund. This aid helps people remain in their [14:31] homes and wards off homelessness, which was fundamentally the reason for this funding. Um, today in the audience we have [14:38] Jennifer Harrison, VEP's vice president of advancement in case there are questions. [14:44] As a reminder, VEP stands for volunteers enlisted to assist people. They are a [14:49] local nonprofit organization that's been serving the community for over 50 years. [14:57] We do have a history of giving to them starting when COVID hit. Um when COVID [15:03] hit as we are well aware many people were forced to stay home from work that [15:08] would a lot of service industries gig workers a lot of folks had to stay home [15:14] yet rent was still due if um they are able to pay it. there was an [15:20] emergency moratorum that people can be evicted but people that run rental [15:25] properties needed to pay their bills and so you know helping with rental assistance helped the whole chain. [15:32] Um so we had allocated a portion of our federal ARPA money and CARES funds to support the Adina residents that [15:38] required rental assistance. Since then most of the federal funds have gone away but people are still at risk of losing [15:45] their homes. Last year with the inauguration of LAA, we granted a portion of our allocation [15:52] to VEP due to the ongoing need and because the service seems to best align with the primary purpose of this funding. [16:00] As stated too, this is emergency, not long-term rental assistance. It is not section 8. It is not something that [16:07] people can um rely on month after month. It helps households through a [16:12] life-changing event. It's typically allowed for three months, but we have [16:17] learned through experience that sometimes people when they are facing illnesses or job losses, three months [16:24] may not be enough. And so we want VEP to have the authority to assess um [16:29] situations on a case-byase basis and if someone needs that fourth month or even that fifth month to allow for it instead [16:35] of just cutting them off and having it be too much of a short-term band-aid, but really help them get over the [16:42] crisis. Um we're saying that 25% of the ward may [16:47] be used for staffing and administration. Uh one thing that VEP is um experiencing [16:52] is there's this huge need but someone needs to process those applications. [16:58] They need people to go through them to meet with folks to find out what the situation is to meet with the landlords [17:03] and so that takes financing. And our portion of the LAA that we give [17:10] to VEP will serve Edina residents. It does not go into a general pool to serve anyone that asks that is allocated for a [17:16] dino residence in this practice. Accordingly, VEP like many other organizations is [17:24] experiencing extreme hardship due to the loss of federal funding. This is not a revenue-based organization. They provide [17:31] for people who really have no place else to turn. They provide food free of charge and rental assistance as grants. [17:38] The primary source of revenue came from programs that were established as safety nets, including the federal government. [17:44] And these safety nets have gone away. VE no longer receives any money from the formerly federally funded family [17:50] homeless prevention assistance program nor emergency food and shelter programs. [17:55] And although the community development program still exists, has been gutted. And they um so they receive a small [18:04] fraction of what they used to receive. So they are highly dependent on private donations and cities now where they were [18:11] previously got a lot of their money from the feds. [18:18] Even though they um have experienced budget cuts, VEP has still served Dina [18:23] residents. They have to a lesser extent than previously in part due to all these [18:28] cuts on the federal level. Um they also [18:34] um in 2025 the numbers dropped in part due to staffing. There's some staffing issues that have been resolved. [18:41] Um and the they have had to reorganize where they only allow applications at [18:47] the be couple um days at the beginning of the month. So the staff that they do have have time to process the [18:53] applications they get. So they do shut off the stream of applications in order to process some of them just because of [19:01] the staffing. Um, and so what they're changing the process a little bit to be more focused [19:08] and they're they've been talking about maybe having one day a month and the [19:13] school community services or at our new fire station too where they can meet [19:18] people where they're at to help process some of those applications to try to really target the Adina money to the [19:25] Adina residents and getting some of these numbers back up. [19:32] So only Adina residents are served with the Adina based funding but 654 [19:37] households have in Edina have been served between April and July of April [19:42] 2020 and July. Um it's households with incomes up to 50% of AMI. [19:49] Um but mo majority have incomes under 30% of AMI. It's a lot of seniors and a [19:56] lot of families with children. Um there are individuals as well, but they're not the vast majority. [20:03] And it's households that range between one and eight people that are being served. So that is program number one. [20:08] And again, Jennifer is here. Um if you want me to go through the whole slide deck and then ask questions or if you if [20:14] you do, you know, I can move on. But I just wanted to let you know questions. Commissioner Egnu. [20:21] Thank you. Um if you could just go back a slide as well. Um I I think that this [20:27] is great, right? Helping nine additional residents than we would have otherwise is amazing, but like you had said as [20:34] well, we would like to see this number increase. Um, so can you speak to and I I know you're not going to be able to [20:40] hypothesize, you know, what the increase necessarily will be, but how can we be [20:46] assured that the increase in funding that we're providing this year because I do think it's an increase year-over-year [20:52] that that will go and result in an increase in the number of Edina residents specifically that we're [20:57] supporting. One of the issues in 2025 was there um they thought the grant had [21:05] ended and so they stopped processing Edina applications using this money. Um [21:11] there was a misunderstanding of the grant terms and so it was halted for [21:16] three months. So there is now the um the LAA money is uh three years and so they [21:22] there's now a clear understanding to not halt the program. Um and then there was [21:29] a very serious illness amongst senior staff and so it's just scrambling. They [21:34] figured out a plan. So the there's like a perfect storm that occurred this year [21:41] um that really halted applications for red residents being um processed during [21:47] a three-month time period. And then I called them and I'm like, "No, the grant." And so then we talked about that [21:53] and it's like it's not over. And I'm like, "No, you still have money." So [21:58] then it the wheels started turning again. So that issue is no longer. Um [22:06] with the re the outreach, they're really just hoping that they will be able to [22:11] get more people through the door. Um we will time will tell, you know, but there [22:17] there is need out there. They have a waiting list. They are getting calls from EDI residents. they just weren't [22:23] able to get them processed. Okay. So, what I'm hearing is that you're confident that for this next [22:31] year, the resourcing challenges are going to be covered from a human [22:36] capacity perspective. And so, the only constraint maybe moving forward will be [22:42] the number of families that we're able to support is going to be because of the $200,000 [22:47] component. That is that is correct. Okay. That is correct. um as an [22:53] organization, you know, they're they're doing a lot of having to figure out how to deal with these massive cuts on the [23:00] federal level. So, it's going to be hard. I mean, this is not this is not a fix. This is a um small [23:09] ability to keep going um with hopes that other cities will follow suit. Um, but [23:16] it is clearly not enough to really address the issues that they're facing, [23:22] but we're hoping that it will help, you know, with our residents. [23:27] Thank you, Mr. Jackson. Yes. Thank you, Mr. Chair. Thank you for [23:33] the presentation. I'm pleased to be supporting VEP. Even though things are [23:39] bad, it's be better than than nothing. And um in your presentation there were [23:44] 654 families and you talked about how it's primarily seniors and families with [23:50] children. Can you give us the individual numbers or you don't have those? I don't have those on hand. I have them in my report. I receive with a draw when [23:58] they ask for money um for reimbursement. It's a reimbursement basis. So they let me know how much money went out the door [24:04] and I fulfill a draw. They include uh stats um of family size, age, demographics. I [24:12] have that in my computer, but I don't have that with me right now. So, just do you have a rough [24:18] approximation of what that is? [24:25] No, I just I just know that I was um alarmed by the number of seniors and [24:32] that there were a lot of there um the ages were from zero to mid 80s. [24:39] So the reason I ask is we're going to be talking about um our housing policy [24:44] later on and it's really important for us to understand what the need is based on data as opposed to just sort of [24:50] feelings and anecdotes. So, I can I can get that for you. That'd be awesome. Thank you so much. [24:57] Mr. Risser, did you have a question or two? If you could go back to the slide that shows the reduction in um money from [25:05] Yeah, that one. Um I'm just curious how this allocation of funds compares to [25:12] last year's. And um specifically thinking about that 200,000 which is [25:19] probably going to go pretty fast. I don't know, but um with the affordable [25:25] ownership preservation program um that's getting the vast majority of [25:31] the funding and I'm wondering how many people will be will benefit from that [25:38] and then also if this allocation of funds is pretty similar to the breakdown [25:44] in previous years for the LAAHA money. Uh chair, commissioners, last year we um [25:51] provided VEP with $100,000. So it's twice what we gave them last year. Um [25:57] but it is on par. Um so during COVID we [26:02] gave them in 2020 uh a total of 500,000. [26:09] Um in 2022 we gave them 466. [26:14] So, uh, with the loss that [26:20] we're not making up for the deficits from these federal sources with the 200,000, [26:27] but I I don't I don't think we have the capacity to do that. Okay. And I um the the one thought that [26:33] entered my head is would it make sense to lower the amount of money going into [26:38] the affordable ownership preservation program so we could bump up the amount of money going to VEP [26:47] chair commissioners I think that is a decision that you all can make or you can see how the 200,000 goes this year [26:56] is it's twice what you gave last year and we still have some a little that due to that pause, we still have a little [27:02] bit remaining from last year's allocation. If we could get information on how many [27:07] people will likely benefit from the money going to the preservation program, that would be super helpful. Thank you. [27:17] This is more of a general overarching question. How did you go about deciding [27:23] uh how you would recommend to us we allocate the totality of the funds? [27:29] Um, that is a good question and sometimes [27:34] it's an art rather than a science. So with Mount Olivet rolling acres, [27:39] we trust your feelings with Mount Olivet rolling acres that was concrete number. They had bids. They [27:46] said this is how much or if not bids they had um professional estimates of [27:53] how much the work that is needed on those two buildings how much that cost [27:58] was a concrete number here it is with VEP it was twice what we gave last year. [28:03] Um, so I thought that was re reasonable without, you know, I I felt like going [28:09] above twice was a large leap um for us [28:14] to get our heads wrapped around uh for even though the need is there, but they still have to work through some of the [28:21] capacity, they still have to get it out the door. Um, so and since there was money remaining from this year, I felt [28:30] like 200,000 was reasonable to get out the door. Um and that left the affordable [28:37] ownership preservation program which when we went through our work sessions that was one of the priorities that was [28:43] listed by all of you is to try to preserve Noah homes and create [28:49] affordable ownership opportunities. And so since that was a priority of the HA [28:55] um that's why they and because GAP per home is about $300,000 [29:01] um that seemed like it was two homes roughly and that's how I came up with [29:07] that distribution. Commissioner [29:12] um I'm confused. Was the total allocation last year less than it was [29:18] this year? The total allocation last year chair and commissioners was 339,000. [29:25] So last year we gave a 100,000 to VEP and 239 to the ownership preservation [29:31] program. So it was about less than half of what we're getting this year. [29:36] So we're essentially keeping pace with what we gave last year because now we have twice as much. [29:42] We have a little bit more than twice as much. Correct. um with the [29:48] um allocating resources in terms of the workshops that we have. I do want to say [29:55] missing from those workshops was a breakdown on the number of people who [30:01] would benefit. It was not really part of the equation. And when we did the final [30:08] exercise for the third meeting, we didn't know that we would be doing that [30:14] going in. And so I I really I understand the logic of listening to [30:21] or taking that into account, but I also especially in this particular climate [30:27] where federal funds are being reduced, just want to put that out there. things [30:33] are changing and and we also weren't really in a situation where we could [30:39] have prepared for that. So I just I want to say that [30:46] Mr. Jackson. Yes. Thank you, Mr. Chair. So next year when we're in this position, um I think [30:52] it would be really interesting to hear from VEP. We had this many applications and we were only able to uh you know [30:59] meet this need. Um, I think that'd be really helpful for us. I know there was this was a tough year. Uh, and I I [31:06] appreciate that. But next year hopefully things will go smoothly and everybody will stay healthy and we'll we can say, [31:12] you know, we gave 200,000 but there was need for 500,000 or just some um [31:18] benchmark to to think about. Um, I think going on last year's as a as a first [31:24] time thing is a good idea because you know that's the data we have. Uh but in the future I think we would really want [31:32] to know how many people we had to turn away. So absolutely I I agree fully. [31:37] Okay. Thank you. I'm wondering if it might be helpful for us uh to hear from Miss Harrison about [31:44] just anecdotally some of the ways that we've been able to help with over a million dollars that we provided of VE [31:50] or rental assistance over the past four and a half years or so. [31:57] Well, good morning. Um, you know, one of the things that I want to share is that the city of Edina was one of the first [32:04] to step up during the pandemic um when we really needed the support and you really led led the charge um you know in [32:11] front of the other in front of all three cities that that we serve uh primarily. And so I want to thank you for that. Um [32:18] you've been a leader for us. Um it very much shows that um you put your [32:23] residents first and and we're thankful to be able to be um you know one of the [32:28] organizations that's able to get these funds out into the community especially when it comes to keeping people in their [32:35] homes. Um we really prioritize the rental assistance because keeping people [32:41] in their homes is is easy compared to the alternative. when folks become [32:47] homeless, that that becomes a whole another issue and quite frankly becomes a lot more expensive. And so, um, [32:54] allowing us the opportunity to do this has been wonderful. Um, as I said, you [32:59] know, we've been able to to, um, disperse, you know, hundreds of [33:05] thousands of dollars, millions of dollars into the community. And we've been able to do it really effectively. [33:11] when the pandemic hit, we were able to pivot and bring on staff to be able to [33:16] to process the applications and get these funds out the door. Obviously, in 2025, we've had a few issues at the, you [33:23] know, in first quarter where we had a little bit of a hiccup, but going forward, um, we are hopeful to be in the [33:29] new fire station. Our goal is to be there at least two or three days a week to meet uh, your community members where [33:35] they are at and to let folks know that we're here. Not only are we seeing more seniors, but we're also seeing new [33:42] people. The the economic environment has changed and folks that may not have needed services before are coming to us [33:50] uh or need us and don't know that we're here. Um if you're new to needing services, you might not always know [33:57] where to go. And so we want to be in the places where the people are in order to [34:02] be able to access, you know, their needs and fulfill their needs through through [34:08] these funds. And um we've done it well before with your partnership. And thank [34:14] you so much for I mean truly truly thank you. You have been an absolute leader in this process for us over the last five [34:20] years and and we are grateful. Thank you. Thank you for that. Hold on a [34:26] moment. just Oh, okay. I guess you you can sit down. Um [34:32] I just wanted to make sure that Commissioner Pierce had a chance to visit with you if that was what he intended. Thank you, um Mr. Chair. So, I really [34:40] appreciate those comments. my um [34:45] the the thing that is a I'll say challenge uh for me and particularly in [34:52] this space is when you have dollars and you have to figure out how to [34:57] allocate them and you're trying to answer the question where do we get the most value as a community versus um and [35:07] you didn't do this but I'm going to use the word arbitrarily kind of spread across multiple good programs, right? [35:13] And so we're not doing it in an arbitrary way, but back to the comment from um Commissioner Jackson, it would [35:22] be good to have the data that suggests one is more value to the community than [35:28] the other. So hearing the comment of keeping people in their homes versus [35:35] helping them come back from homeless into a home is more expensive to to deal [35:42] with folks that are homeless. um because I think that might give us some insight [35:48] into how we might want to appropriate, not just these funds, but other funds [35:54] that we may have the opportunity to um um kind of appropriate to those types of [36:00] programs. And so I think having that would be um would be awesome. And I want [36:06] to reiterate, I know we didn't arbitrarily assign dollars. [36:11] Um, but it definitely would be good to have that that data so that we know [36:17] which of these programs is providing our community the best benefit because that may shift over time, right? [36:24] I think, you know, as we get through the other two, you'll see that there's a somewhat of a continuum. VEP helps keep [36:31] people in their homes by giving them the financial assistance to pay the rent. [36:36] MOA is fixing up the homes to preserve the homes that people are in that are also as um stated as a criteria [36:43] population. And I'll get more into that in that. And then the home ownership preservation helps get people into home [36:50] ownership. So there is somewhat of a continu continuum of how these funds are being allocated to get the spectrum. But [36:58] I do hear what you're saying and I will be I have the data. I just didn't share it. [37:04] comments by Miss Harrison and the followon uh observations by Commissioner [37:10] Pierce caused me to think about several years ago at a US Conference of Mayors meeting. Sam Licardo, who was then the [37:16] mayor of San Jose, was talking about this very issue in San Jose and uh [37:23] discovered the same thing that it was it was much less and uh [37:29] draining on on available resources uh to try to keep people living where they [37:34] were living as opposed to providing them with new housing where the cost per door [37:39] for a new apartment in San Jose was $750,000. It was a lot more efficient and [37:46] effective to be using those funds to keep people that were, you know, going through a divorce, kids. I mean, there's [37:54] a multitude of different reasons. It's it's the analysis that led them to think, yeah, we got to have a program [38:01] that keeps them where they are, and it's much less draining on public resources than [38:08] providing them with new housing. So member Risser, Commissioner Risser, would it make sense to table this so we [38:15] could get that data and use that before we vote or and also hear from VE? The [38:21] one thing that I keep thinking about is a new space in the fire station. It'd be [38:28] um kind of hard to set this up and then discover that, you know, 7 months out [38:35] we're no longer able to, you know, finance things for people. [38:47] Yeah. and then explain why you were thinking that it might be better to table so we could make a more informed [38:53] decision and have that information that we're asking for right now. Well, but this um [39:00] you know we've got 800 and some thousand to deal with here. Um [39:09] you might have a comment. I interpreted the data to help with [39:15] future years since this was an anomaly year. Um I mean it's up to you clearly [39:21] it would not be able to come back until end of October or November. Um if it [39:27] were if we were to table it and I do know that um with the other two programs [39:34] and even with VEP um the need is probably prior to November. Um and then [39:41] we have to um draft the grant applications and those such items which delays it even further. That said, um I [39:49] can either report back on data to help with next year's allocation or um we [39:55] start, you know, we just incorporate that for next year's allocation or it's [40:00] however you want to proceed. Commissioner Jackson, I'd like to hear the other presentations [40:06] before we make any decisions. also thinking about uh the fact that [40:11] you've made recommendations in three different areas that are critical and that probably need immediate attention, [40:17] but let's let's finish up and then we'll have that conversation. So, number two, um is our affordable [40:24] preservation ownership program. Um this is a program that we have that's in [40:30] partnership with Twin Cities Habitat for Humanity and Homes Within Reach. Today we have in the audience is Brenda Lana [40:36] Wilkkey and I Noah is not here. Um this is you know from the work sessions [40:44] um it was the highest priority is to preserve Noah mo our modest homes in [40:49] Edina and get them into affordable ownership. The land trust program um creates ownership for 99 years. So as [40:57] number with regards to number of people served you know on turn there's a new family. So, it's not just the initial [41:03] family, it's the families that keep moving into that home for the next 99 [41:09] years. So, it's um it retains community and ownership wealth within those homes. [41:15] Uh it enhances residential stability because it allows these homeowners to live in a home that they can afford. Um [41:22] and then the long-term affordability and it serves the working folk that are in [41:28] the city. We have given and supported this program over the years. Um it is the gap per [41:37] home is not insignificant. Um again if we were to calculate it back per year [41:42] over 99 years you know it's a little more impalatable it's a couple thousand dollar but over um it's $300,000 [41:50] at the front end. Um and that is attributed to the land that is placed [41:56] into the land trust and th this value could increase. This [42:01] is what we established in 2021. Um so that could see some changes over the [42:07] next couple years is where the land we're going to have to attribute more because incomes are not keeping pace [42:13] with land values. So, we may have to, you know, be somewhat flexible in what [42:18] is available and what people can afford. Um, in exchange for being able to buy a [42:24] home below market value, you know, you take a $450,000 home and you're able to [42:31] buy it for a little over 200,000 or about 200,000. For that, being able to do that, the buyer agrees to a limited [42:39] equity when they go and sell the home. So, of the funds that we have um [42:47] contributed to this program, it's it's going, you know, it's dwindling. Um we're we're almost out of some sources. [42:54] They have completed the homes within reach has completed that 3.3 million that's out the door. Um we have some of [43:03] the la left, but they have it earmarked. There's homes right now. They're still looking for homes. Um they're some [43:09] closings are pending. They're out in the future. And so this we some of this money that's left has already been [43:15] earmarked. So how does this work? Well, we've sent postcards to all home owners of homes [43:24] valued up to $425,000. Um some of these are out ofstate [43:29] investment homeowners. Some of them are local. Um interested home sellers [43:35] contact the city. I had someone who lives in Indiana who's still dealing with her mother's home that is in Edina [43:43] wondering if she wants to sell it through this program. She's contemplating other pe there are a few people like that who are dealing with [43:48] their aunts or their parents' home. It's in the trust. They are trying to figure out and working with their siblings on [43:55] what to do with these homes. Um if they want to go on this program, I get permission from them to share their [44:02] contact information. I share it with Habitat and Homes Within Reach. They decide, you know, who has the capacity [44:08] at that time. It's what's great about having two organizations. Um, they go [44:13] and inspect the home to see if it fits within their program guidelines. Then they work with the seller on buying the [44:19] home. Uh, then they rehabilitate the house. They draw money from us, you [44:25] know, to buy it. They rehabilitate it. They go through their vetting process [44:30] for how they find an eligible buyer. Um they have two different processes. [44:36] They're working together to get their processes more aligned because they ultimately end up in the land trust with [44:41] homes within reach and then they remain and the land trust is always there. So [44:47] if someone if they come up with issues that they're facing um they the land [44:52] trust doesn't go away. They're a they're a continual party into this deal. So, [44:59] since 2021, we there have been 22 homes that have been bought through this [45:05] program. I'm pretty excited by that with three pending. Um the houses were sold to end buyers for roughly $200,000. [45:13] Uh 17 homes are owned and occupied, many by young families. Again, there's some [45:20] pending. This is a continual process. um they're researchers, educator, [45:25] utility worker, chef, family advocate, people that work in the school district. There are a lot of folks that have been [45:32] able to benefit from this program and then as I said that 99 years. [45:39] So that's that program. Um Brenda is here if you have any questions for her [45:45] or I can go on to uh Mora. Keep going. Okay. Um, so the third is [45:52] for Mount Olivet Rolling Acres. They are a [45:58] nonprofit founded in 1965. They provide residential services. This was also [46:04] stated as a priority during our work sessions to serve household people with um disabilities. This is affordable [46:11] housing for people with disabilities. They are licensed by the state of Minnesota and they operate two homes in [46:17] Adina that serve roughly eight people. one can fluctuate between having four residents or five residents. [46:25] Um the two homes, one was acquired in 2015. They have four residents who are [46:32] the originals. Um and they serve people with intellectual and developmental disabilities. The second home was [46:38] acquired in 2001. It house um eight people since opening and they are people [46:43] that are facing mental health challenges. I would like to say these homes were acquired with the assistance of the Adina Housing Foundation. One [46:49] mortgage has been completely repaid and satisfied. The other one they are they [46:56] have never missed a payment since I've been here. So when I get the monthly reports on the um Edina um foundation, [47:04] they're right there making their monthly payments. So all the residents qualify for medical [47:11] assistance with incomes below 80%. Um there is an annual income and asset [47:16] review to make sure they still income qualify to live there and their this is [47:22] this program and their assistance is being threatened because of um but federal budget cuts. Um their overall [47:29] cuts to medical assistance could impact the residents that live in these homes. [47:35] Um like I said they are acquired with financing from the Adina Housing Foundation. Um the state funding [47:42] provides minimum increases for um upkeep but not for major rehab [47:49] projects. Um and the money that pays for the rehab is from private individuals, private [47:55] donations. And since these houses are getting older, some of the needs are surpassing individual [48:02] contributions. Um then 2025, the capital cost for all their homes, not just an eina, was $1.6 [48:09] 6 million. So that far exceeded individual contributions. [48:15] So for the two homes, one needs $36,000 for repairs and the other one needs 575. [48:21] So that's how I came up with that number. Um it was a combined total of um 935. And it's to make these homes safe, [48:28] you know, to get rid of tripping hazards, to get um to refortify decks, [48:33] to address some of the issues, to make it a more livable place for their [48:38] residents and to be able to do it all at once. [48:44] That's them. And why we have representatives from Mora as well. So, thanks for being here. Thank you for [48:50] having us. [48:58] All right. Thank you. Uh questions. Commissioner Jackson. Yes. Thank you, Mr. Chair. So, we also [49:05] have a program to help repair homes um whether they're condominiums or single [49:12] family homes. Um so, that with income qualified people. Does that does the LA [49:18] do the LAA funds not qualify for that or uh Commissioner Jackson? That program is [49:25] funded through our affordable housing trust fund and there are still funds remaining and part of that program is [49:31] those funds are recycled because we are hoping that we could make it self-sufficient. Um but there are funds still remain in [49:37] that program and some have been repaid. um not to the degree that refortifies [49:44] the original, but um where there's still capacity in that program from the original funding. [49:49] Okay. So, these are the ones with the highest need. I mean, obviously more of this is the first time and and I'm very [49:55] supportive of of it's wonderful to keep these properties usable and safe and um [50:00] better to to preserve it now than to worry about it down the road. So, they're different. The home rehab [50:06] program we have now is for um home owners. This is rental, so people they [50:13] pay rent to live there. So, we don't have a rental rehab program. Um, [50:18] right. I I I'm not meaning to conflate those. It's it's a fourth bucket that [50:23] I'm thinking about. So, but these three buckets are in your estimation the [50:29] highest need because there's still money in the home repair um bucket. So, this is where we need to be putting the [50:35] money. Uh, chair commissioners, that is correct. Okay. Thank you, [50:41] Mr. Rizzer. Um, just real basic, can we get this presentation up on the website? [50:48] Um, chair, commissioner, all presentations will be uploaded to the website. Yes, it'd be great if we could have it before [50:53] the meeting. [50:59] I think one question I'd like to have answered is how does a Lutheran church [51:04] in the home repair business end up with a name that sounds like it came out of the greater Minnesota rolling acres. [51:12] I want all of it rolling acres. I cannot answer that. So we are an affiliate. [51:17] You have to come up to the microphone and identify yourself. And [51:23] so my name is Katie Ellas. I'm the senior director of advancement at Mount Olivet Rolling Acres. We were started in 1965 by a group of parents who came out [51:30] of the Mount Olivet Lutheran Church who had children that they were raising with disabilities and wanted something more than a state institution for their [51:36] child. So, and we are on Rolling Acres in Victoria, Minnesota, which is where one of our offices are located. [51:43] All right, that makes me more understandable now. Sort of. Commissioner Commissioner [51:50] Pierce. Thanks, uh, Mr. Chair. Um, so I, you [51:56] guys know I I work for an organization, uh, Minnesota Diversified Industries, [52:01] and we hire 200, we have about 500 employees, and half of them have a [52:07] disability. And so these types of housing, [52:14] um, housing is typically one of the biggest challenges because they need transportation to be able to come to [52:20] work. Um and so definitely support um organizations who are playing their part [52:27] in that that supply chain if you will um to support this uh community. Um, and so [52:35] I just wanted to circle back to the I when we look at the data, right, it [52:44] feels great like what what we're able to have what we've accomplished with the [52:50] dollars that we've had um in all three programs. [52:55] But I still don't like I don't know if we're having the best impact for the community or not. um cuz we're looking [53:03] at the numbers and 22, right, for the homes that we've um taken over and [53:11] remodeled and resold, 22 is better than five. [53:17] But if we made a different if we made a different choice in how we [53:22] appropriate funds, could 22 then be 30? Like I don't know. Um, [53:30] are there other homes? So, if we gave more uh [53:37] $75,000 more, are there other opportunities to to provide more [53:42] housing? Um, and so that's like what's running around in my head? But I don't [53:51] You're closer to it than any of us are. Um, and so we do have to trust that [53:57] you're taking that that input and ensuring that we get the best value out of these dollars. Um, I am not [54:04] suggesting that I know enough to tell us what appropriation is better than the [54:11] other. Uh but it would be good for you to be able to say to us, yeah, this is [54:16] the and I maybe I'd word it this way. This is the greatest need in Edina and [54:22] here is how we're going to appropriate funds to go after that particular need. Um, and then right we do that each [54:29] cycle. You come in and you tell us how well we've done or in some instances we [54:35] haven't been able to appropriate all the we haven't been able to use all the funds that have been appropriated [54:40] because maybe houses aren't available or whatever. Uh, but that's the thing that is is missing for me. And I say all of [54:50] that I still would not I wouldn't table [54:55] making this appropriation. Um but having that insight to know that [55:01] yeah we are having the be the best impact for our community uh moving forward would be awesome to have that [55:08] insight. May I respond to that? Um yes, [55:13] chair, commissioners, um I believe this is the best value for the money that we have. Um I I'm [55:21] apologize if I have not given you the proper insight. I um I was responding in [55:27] part due to your priorities that I have heard stated over the past years of [55:34] where what you want to focus on in the area of affordable housing. So, it was in response to that. Um, VEP was not [55:43] listed as a priority, but I think um I mean clearly your response to it, [55:48] everyone's response to it, it it seems like it's like an assumed priority um to [55:53] help people remain in their homes and not lose their homes. Um and it was also [55:59] because it was a priority of the funding sources. So yes, and I also believe that [56:05] some of this some cities do um bank this money and have it acrew over three years [56:11] and don't spend it uh annually. I believe that our needs that are [56:17] current and now can't wait for a three-year growing bucket to be a $2 [56:24] million bucket that would maybe be support a new development um and provide [56:29] gap financing for a new development because well with the affordable preservation program we're losing our [56:37] modest homes on a regular basis. um they're they're the supply of them that [56:42] is remains in the community is dwindling. Um that and so I I believe the time is now to be able to act on [56:51] being able to acrew those homes and I that was true with Mora is that the [56:57] needs were now and it seemed like it felt um fit the priorities that I had [57:04] heard. So, I do have confidence um that based on the calls I received, [57:11] no, if I had $10 million, I would have a lot of additional items on this list, [57:19] but I would have these items on the list. Um but the need out there is far [57:24] greater than this um based on the calls I get. Thank you, Commissioner Agnu. [57:32] Thank you. Um, I just want to add that I I have full confidence in the analysis [57:38] that you've put into this. I I know that you are, as James said, a lot closer to all of the ins and the outs. Um, but [57:45] also to echo what, sorry, Commissioner Pierce, um, said, uh, I just want to see [57:50] a little bit more of your work, right? Um, to help us, even if we just think about it, like answer all of these [57:57] questions for us up front so we're not having the conversation. Um, but I think it's just about understanding like [58:02] there's definitely a logic to having it spread across these three rather than, [58:08] you know, snowballing it into one particular bucket because of the components of the continuum that each [58:14] one target, right? It it targets a different need. Um, so I understand that, but yeah, just bring a little bit [58:20] more that shows um, even if you just do the the calculation of we served nine [58:27] families through VEP with $100,000 and so this was the relative cost for every [58:32] family through VEP and here's the relative cost for um, the houses that [58:37] we're supporting through more like a little bit of that I think would just [58:42] close the loop on it. Um, but I also am not recommending that we table it. I I'm [58:48] definitely supportive of this and really appreciate all the analysis and work that I know you did um to come up with this recommendation. [58:55] Thank you, Commissioner. Commissioner Jackson. Yes. Thank you, Mr. Chair. So, I want to thank you also. You've been listening [59:01] very carefully. The problem is we're sending you mixed messages. Um we it's very this is complicated and it's cloudy [59:07] and as public servants we see the want and we express things in terms of the [59:15] want and you see things in terms of the need and so um you know it's very [59:21] complicated um and I think you've done a very good job of listening to us and thank you and you've put a lot of time [59:26] and effort into that. Um, I just want to acknowledge that the the need and want are two different things. And um, the [59:34] need is so great that we just have been focusing more on the want because we can [59:40] never meet all the need and and I I just wanted to say thank you for listening and thanks for uh, your analysis. [59:47] Like to make a decision this morning. Oh yeah. Okay. Commissioner, any further [59:52] thoughts? Um, I see the logic of not tableabling this. Um, [59:59] another idea, maybe instead of the 581, we go to 381 and put 200 aside so that [1:00:08] if it appears um the impact from all those federal cuts is even greater than we thought, we [1:00:16] would have a little wiggle room. But that's the last little curveball I'll [1:00:23] throw out. [1:00:28] I don't want to speak for you, Commissioner Rister, but I I think what you're thinking is um this is my [1:00:34] interpretation is that we've got another item coming up here where we're going to be asked to approve a million dollars [1:00:40] from the South Hill TIFF fund being moved into this Edina Heroes program for down payment assistance. [1:00:47] and that because we've u got this money in the affordable housing affordable [1:00:52] ownership preservation program there might be some room to kind of navigate [1:00:58] but with two separate buckets I think it's a little bit tricky where you gota money in one bucket and you got tiff [1:01:04] money in another bucket and for me I feel like we need to think about it that [1:01:09] way unfortunately and that the recommendations that we're seeing here [1:01:15] are are compelling and I I think we need to trust our staff analysis and the things that have have been presented to [1:01:21] us this morning in terms of making this decision. Commissioner Russer, you had a follow on. [1:01:26] Just that part of this decision was really driven by the workshops that we [1:01:32] had and the exercise where we put the little red dots on different things. So [1:01:37] I um I I have said what my concerns are. [1:01:45] All right. Okay. Um the U recommended motion from Manager Hawinson is that we [1:01:52] approve the recommendation authorized staff to engage uh council to prepare agreements that [1:01:59] would reflect that staff recommendation of $200,000 going to the V emergency [1:02:04] rental assistance program. Uh $581,881.99 [1:02:11] going into the affordable ownership preservation program. and that 93,500 [1:02:16] be allocated to the Mount Olivet rolling acres home repair program. Is there a motion to that effect? [1:02:22] So moved. Second. Commissioner Jackson moves. Commissioner Pier seconds the motion as stated. [1:02:29] Further discussion. All those in favor of adoption of the motion as stated say I. [1:02:35] I. I. Opposed. Carried. Uh those allocations are approved with the Lowa [1:02:42] money. Thanks for being here this morning with us, folks. And uh we know you've got uh challenging work ahead of [1:02:48] you here. It's been an interesting time. Thank you for being here. [1:02:58] And then the next matter, we've got two more matters on the agenda this morning. One is the so-called the Dina Heroes [1:03:04] Down payment assistance program. And manager Hawinson has this matter as well. Yes. [1:03:13] This is um this idea for this program also came about from the work sessions [1:03:19] um focus on affordable housing. During the third meeting, it was stated that an area focus should be for people who work [1:03:25] in the city generally and more specifically for people who work in the city and serve eina residents. Another [1:03:32] interest was helping own homeowners buy modest housing stock in the city rather than the buyer being a developer. This [1:03:39] program is designed to help people to buy homes in the city closer to their work [1:03:44] by providing a deferred down payment second mortgage to reduce the amount needed to borrow from the first mortgage [1:03:50] lender, making the home affordable for those income ranges. For example, if a [1:03:56] worker can afford to qualify for a $400,000 mortgage, but the house is listed at $500, the $100,000 difference [1:04:02] can become from a second mortgage with a principal not due until the house is sold. This helps make buying a home in [1:04:08] Edina more affordable. [1:04:13] This really is parallel to the come home to Edina program but for quote unquote [1:04:19] heroes. Um the maximum loan size is a little larger with at $100,000 but it's no more [1:04:25] than 25% of the home value or 25% of the gross income applied to PITI [1:04:31] principal interest taxes. um co it will be co-erminous with the first mortgage. So if both are 30 years [1:04:39] um with the principal deferred until term or sale the loan would be a shared appreciation they could we could also um [1:04:46] include the interest only shared appreciation is used about 95% of the time by come home to adina borrowers the [1:04:54] income limit and this is um due to the funding source is 115% of area median [1:05:00] income so about 137,000 for a household of three or more or 100% AMI I for a one [1:05:07] and two person household. Again, I have no control over that. It's based on funding source requirements. [1:05:14] Maximum home value up to 600,000 and proof of employment within the city [1:05:20] at the time of the loan. Uh and then the first generation buyers could get an um [1:05:25] qualify for an additional $20,000 that you had granted to the Adina Housing [1:05:30] Foundation. Um, so, you know, truth be told, this income [1:05:37] level may not be sufficient to buy a $600,000 home, but we're thinking there [1:05:43] may be those that that was the um the amount that was stated at those work sessions. Um, but if someone has saved [1:05:51] for a long time, received an inheritance plus this down payment assistance, that's why we'll I still propose keeping [1:05:58] that cap at that. Um, it for those one-offs [1:06:04] eligibility, health care professionals, all active nurses, doctors, surgeons, specialists, technicians, lab techs, [1:06:10] anyone that works in the healthc care field. uh in Edina. Um teachers and [1:06:16] educators, all active teachers, daycare workers, people who work with [1:06:22] our children in some capacity, custodians, lunch room lady, school district folks, [1:06:31] and municipal employees, firefighters, um EMS, law enforcement. [1:06:38] So, um, people that serve the Adina residents, they can live closer to their [1:06:44] job so they can be there at work and it it has an environmental aspect as well. [1:06:49] Keeps fewer cars on the street. So, the funding request is a million dollars in Southdale two pill um [1:06:56] Southdale 2 pulled tiff. Um, if you recall, the H sought legislative [1:07:04] authority to use the Southdale 2 fund specifically to assist in affordable housing [1:07:09] which was granted. I think it took two years to get it through the legislation to allow these funds to be used for [1:07:16] affordable housing. Um, using the authority to grant funds to the Adina Housing Foundation purposes of this down [1:07:22] payment assistant met fit within those guidelines. I have met with um Jay [1:07:27] Lingren and Nick Anhut a lot about this program um to help structure it in a way that would fit within the program the [1:07:35] legislative authority and um tiff guidelines generally. So there are approximately $6 million in that pool [1:07:42] for affordable housing um but it's a restrictive how those funds can be used [1:07:47] is fairly restrictive different than the LAA funds. If granted, 1 million would for the heroes [1:07:53] program, 5 million would remain for um other affordable housing endeavors. Um [1:07:59] we elect I'm suggesting this source because it is restrictive and as this is a qualifying use for it. Um and because [1:08:08] the we looked at the trust fund, there's just not enough money remaining in the affordable housing trust fund to support [1:08:13] this program. the grant would go to the Adina housing foundation who would own and implement [1:08:20] this program as they do with the come home to adina program. So they or that um they would operate in the same way. [1:08:26] They do the underwriting. They'd work with the serer. The mortgage and the notes would be in their name. So they [1:08:31] would track them and then they also work with CE to do the servicing. And so on [1:08:38] the right hand side of the slide shows the um the checklist of all the things that is required to get a come home to [1:08:46] Edina. It'd be the same checklist, but we'd have proof of employment within the [1:08:51] city. So, who is the Adina Housing Foundation? For those people watching, not you all. [1:08:58] I think you're fairly familiar with them. It's created in 1985 to administer [1:09:04] um a second mortgage program and it was actually the funds that were used at that time were also tiff um for the [1:09:10] creation of Centennial Lakes and Edinburgh. Um [1:09:15] they've been the current iteration of come home to Adina has been in effect since 2007. They originated 183 loans. [1:09:22] They have vast experience in knowing how to do this. Um the amount they've lent out is 8.9 million. Um they've leveraged [1:09:30] over $40 million in home purchases and they own the notes and mortgages as [1:09:36] stated. So the fact that the heroes program would be using this funding source is again somewhat parallel to the [1:09:43] origins of the come home to edina program in general. [1:09:51] Similar to the come home to adina program, the adina housing foundation review the application, underwrite the loan, prepare a note and mortgage and [1:09:58] then those will be recorded. Um the foundation will work with CE to track the loan and satisfy the mortgages when [1:10:03] repaid. Um there are two type of mortgages I mentioned shared appreciation and um interest only and [1:10:09] this helps with the if people can't afford the full price of a home. It's because they don't have the monthly [1:10:16] income to be able to so this the both with both these the principal is deferred so they don't have to pay on [1:10:22] the principal. So that's allows them to get this higher priced home. Um but they [1:10:28] can elect which they want as shared depreciation or interest only. 95% [1:10:33] choose the share appreciation model because then there's zero monthly payments during the time they live in [1:10:39] that home. So the next steps I sorry I clicked too [1:10:45] far. Um would we would prepare a grant agreement that I would come back for approval. Um [1:10:52] and we would modify the current and existing come home to Dina notes and mortgage to reflect this program and the [1:11:00] foundation would then implement it and they'd qualify the program participants. [1:11:06] Questions for manager Hawinson? Yes. Uh Mr. interjection. [1:11:11] Mr. Chair, so we'll be giving a grant to the Adina Housing Foundation. Um, it [1:11:18] sounds like maybe this is a much more limited type of program than what they've done in the past. Will they be [1:11:24] reporting back to us the success of this program? Because I'd like to make sure we're funding something that that's [1:11:30] useful. Um, what's the reporting process for this? [1:11:35] Chair Commissioners, we could definitely have that be a requirement. There is a close relationship with the Adina Housing Foundation. So I think that [1:11:41] could be requested at any time, but we can also have it a condition of the grant agreement. [1:11:47] Yeah, I think that'd be good to get it something regular that sort of because people forget. Um, but I would I would [1:11:54] love to hear whether this is successful or not. This I think really reflects Thank you and thanks to the housing foundation for uh creating this program. [1:12:01] It reflects the need that we're hearing or the desire of the community to house people who work here and help people. [1:12:08] So, that's a good program, but I'd like to know whether we're successful or not. Most definitely. Okay. Thank you, [1:12:13] Mr. Ego. Thank you, chair. Thank you so much for presenting on this. I know this is something that we've talked about a few [1:12:19] times of how can we specifically target populations of people that are already a part of the Adina community. Um, so I [1:12:27] love seeing a program like this and I love how throughout you kind of sprinkled in at least some visuals of [1:12:34] programs like this that exist in other locations, right? So it's not like we, you know, designed a new wheel and tried [1:12:41] to figure out like how can we do something. There are other examples um of success in this area it seems like [1:12:47] across the United States that we then leaned into, learned from and are [1:12:53] attempting to implement a similar program. So, just kudos to you for all of the work that you did and then yeah, [1:12:58] not redefining the wheel and just kind of looking at what else has been successful. Um, I do have a couple like [1:13:05] specific questions. Um, you talked a little bit about the $600,000 [1:13:11] home price maximum. Can you speak to me again about like how we arrived on that? [1:13:17] Cuz I I did pull up Zillow. Um there are currently 13 houses that are for sale in [1:13:25] the boundaries of Edina that are at 600 or below. Um so I'm just kind of curious like how did we align on that number and [1:13:31] does that ensure that there's enough um market to have this be successful? [1:13:41] Chair commissioners um the number came about a couple of different ways. One was from you all. Um I think it was just [1:13:48] thrown out. I grabbed on to it. So um the median home price in Edina is over [1:13:55] 700,000. So it is below the median price. Minnesota housing and the come [1:14:01] home to Edina have a maximum um home value of 515. [1:14:06] So this is a little greater than what is allowed through the come home to Edina and state down payment assistance [1:14:13] programs. um anything greater than this because we have an income cap based on the funding [1:14:20] source would be the the numbers don't work if you if you take that income you [1:14:27] take 30% of that income roughly you factor in interest rates you factor in [1:14:33] all those things having them be able to afford I think even 600 is going to be a reach and that's why I said with 600 [1:14:42] there I'll keep that because it was a number that was stated, but they would there would have to be [1:14:48] they would have to have a gift in addition to our 100,000. An inheritance, [1:14:54] a family gift of some sort in order to increase that down payment because the mortgage that they would qualify for [1:15:01] would probably be roughly about 400,000. And you have to factor in their credit [1:15:07] score. there's so many I mean home buyers you know that there's so many things that determine how much you can [1:15:12] afford in a home. So that's how we came up with 600. Um I still think it's a [1:15:17] little bit of a reach but it was a number that um had been repeatedly stated for something to try to achieve [1:15:24] to for home ownership here. Yeah. Cuz I'm just trying to make sure that we make a program that's [1:15:30] attainable, right? Like both that they are able to afford the monthly. So, I appreciate the analysis that you did on [1:15:35] that side, but I also want to know that there's supply within our market for them to find homes that fit into this [1:15:43] that are not just tear down quality. [1:15:48] Uh, chair, commissioners, um, truthfully with the afford affordable ownership [1:15:56] preservation program, there have been alignments where there have been buyers [1:16:03] into that program that have utilized the come home to a dinina program and one [1:16:09] was actually a police officer. So, um, you're right, supply is limited. Um I am [1:16:18] not limiting this to um houses. Um where a lot of the come home to a [1:16:24] diner program has been condominiums as well and town homes. Um we but [1:16:32] historically with the come home to a diner program lately since we increased our cap of the down payment assistance [1:16:38] when it was 60,000 we saw more condominiums. When that [1:16:43] increased to 90 we saw more houses. So, by having a cap of a hundred and [1:16:49] increasing the cap on the housing value, I thought that helped offset it [1:16:54] um because then they only need to borrow 500 only 500,000 [1:17:00] and then if there's other streams. So, you're right, the supply it's it's a challenge because there's not much on [1:17:07] the market and we do that analysis. Um Mary Kay, who's on our foundation board, she's a [1:17:14] former loan officer, she looks at Zillow all the time and tries to do those [1:17:19] analysis and she says, "Yeah, it's it's it's going to be a challenge because there's just not much housing stock." Yeah. And that's why I'm just thinking, [1:17:25] I don't know. I'm supportive of approving this and moving forward and and beginning to [1:17:30] understand like is this utilized? Are there gaps? You know, I'm thinking of this first year as being really ripe for [1:17:38] learning and opportunity. Um, but just thinking that might be something that we need to tweak of is there a possibility [1:17:44] to to increase somehow? I know that there are certain caps, right? Um, but [1:17:49] just something to think about because I I do want this to be attainable for folks. Another data point chair and [1:17:57] commissioners that I could share was in 2024 we closed on 25 [1:18:02] come home to Edina mortgages and so this would be if people maximize this would [1:18:07] be 10. So I was feeling confident that we could get 10 closings um since we're [1:18:16] um diminishing the pool of applicants to be people that work in Edina. Well, there's a lot of jobs in Edina. So, um, [1:18:22] and with some marketing, I will be talking to the communications department, um, about that. I I I'm [1:18:29] confident they may not all be single family homes, truthfully. [1:18:35] And then, are we going to get a fun logo, too, or I saw the logo from the Florida [1:18:41] um, South Carolina? Yeah, there's a lot of logos out there. Um, [1:18:47] I just was assured by our communications director that we can come up with a logo. That's fun. [1:18:52] Wonderful. Thank you. That might be green. Anyone else have anything here? You [1:18:59] know, I like this program uh a great deal. It did give me pause when I was looking at the health care professionals [1:19:05] category and wondering whether doctors and surgeons ought to be in that category. [1:19:11] um seems to me like they uh they'd be at an income level even starting out where [1:19:17] they didn't need to worry about this. But affordability issue. I also liked it so [1:19:22] much that I thought well we've got six million in that um tiff pool fund. uh [1:19:28] maybe we should allocate a little bit more to it, but I think particularly Commissioner Agnu's uh inquiries this [1:19:34] morning have caused me to think about just put our toe in the water and see how this works and [1:19:40] uh I know we can use those funds for a variety of purposes, but uh let's just hold back. So, I'm pretty comfortable [1:19:47] personally with the approval at $1 million and and being able to do up to 10 units [1:19:54] with that money and see and we we'll see how it goes. So, [1:19:59] um, we've got a, uh, recommendation from, uh, manager Hawinson that the [1:20:04] motion read as follows. Approve a million dollar grant from the Southdale TIFF Pulled Fund for the Heroes Down [1:20:11] payment assistance program and authorize staff to engage the city attorney to draft a grant agreement with the city [1:20:17] with the Adana Housing Foundation and to modify loan documents to reflect the program parameters. Is there a motion to [1:20:24] that effect? So moved. Second. Commissioner Agnum moves Commissioner Pier seconds the motion as stated. Uh [1:20:31] any further discussion? All those in favor of adoption of the motion as stated say I. [1:20:36] I. I. Opposed. Carried. Off we go. Thank you. And I'm sure Director Benner will find [1:20:42] you help you find a really good logo for it. Um, all right. We got one more matter [1:20:48] here um to deal with this morning and that is a potential adoption of res [1:20:53] resolution adopting a proposed budget for the HR for taxable levy year 2026 [1:21:04] handling that matter. Yep. I don't see our finance director out there. So, [1:21:10] thank you, Mr. Chair, members of of the commission. uh we're proposing to what we're proposing to you today is the to [1:21:16] is asking you to establish the uh preliminary tax levy uh for the HRA. [1:21:22] We're HASS and cities are on slightly different uh schedules as it goes to setting the preliminary levy, but this [1:21:28] will be uh the the final opportunity you have as an HR before uh September 16th [1:21:34] to uh to approve a levy. So that's why we're asking you to do it today. Timing wise, um we we have had a custom over [1:21:42] the last uh six years, three budget cycles to uh to approach our our H uh [1:21:49] levy as an incremental with incremental growth of 3% uh each year. That's what [1:21:55] we're proposing uh this year as well. The 2025 uh levy was $259,300. [1:22:02] We're proposing a 3% increase to two $267,100. [1:22:08] That's a $7,800 increase or or 3%. We will blend this into the overall [1:22:15] total tax levy proposal that we'll make to you on on September 16th. [1:22:21] Yeah, thanks for that. It's a relatively modest increase. Uh [1:22:26] explanation I think is satisfactory. Are there questions for uh our executive director on this matter? On this [1:22:33] request, is there a motion to adopt resolution 2025-06 [1:22:38] adopting the proposed budget uh for the HA and establishing the proposed tax levy payable in 2026 for the HA? [1:22:46] So moved. Commissioner Jackson moves. I second. Commissioner seconds the adoption of the [1:22:53] resolution 20250. Uh any further discussion? All those in [1:22:58] favor of adoption of resolution 202506 uh say I. I. I. Opposed. Carried. The resolution [1:23:07] 202506 is approved and adopted. Uh and that's it for the uh work of the [1:23:14] H this morning on the August on August 28th, 2025. Anybody have anything for [1:23:20] the good of the order? Risser? Um, just more thoughts about [1:23:26] yesterday and I appreciate your comments this morning opening the [1:23:32] meeting. I've also received um emails from people asking that we do something [1:23:39] um that we take action and I did reply that on our last legislative platform we [1:23:46] did have um an item the possession of firearms and municipal facilities and [1:23:53] school that have school-like use and being able to have some control over that and I don't know where that ended [1:24:01] up if it even got launched. launched but if it didn't pursuing that but I um this [1:24:07] hit hard uh our first house was two blocks from annunciation and I was actually supposed to go over to that [1:24:14] area yesterday morning so uh but thinking about what can we do um what [1:24:22] can a municipality do so we you know all need to work in some way to reduce gun [1:24:29] violence is just become become too pervasive and children need to be safe [1:24:35] in schools. Thank you. Yeah, thanks. Uh, manager Neil, [1:24:40] just to follow up on that a little bit and it's related to the call I had to step out to take. Um, we had pretty [1:24:47] quick contact yesterday with OOLG and with leadership at OG and leadership at [1:24:53] Adina Public Schools. Uh today uh the department is going out and having contact with uh other kind of church [1:25:01] there's a number of church-based daycare centers are all over the community including uh the kind of the for-profit [1:25:07] daycare centers as well. So we are going to reach out to them have a contact make sure they know who we are and we know [1:25:14] who they are uh so that if we do have some some concern in the future we can address them quickly. [1:25:21] And um I don't know if you'd care to comment about the ongoing work we do with the public schools in terms of uh [1:25:28] uh active shooter exercises and other things that are um public safety [1:25:34] related. Some of the matters I think that that have been taken and or some of the actions that have been taken particularly by the school district in [1:25:40] terms of security they prefer to keep confidential. They but uh nonetheless I think u people [1:25:46] should be assured that we're we're on top of this. They they should. We've had a long [1:25:52] positive working relationship with the school district, Edina Public Schools. It's the only school district that has [1:25:57] facilities in Adina. Um, but they we've our police, our fire, our EMS, our [1:26:04] dispatching staff. uh we spend we spend a considerable amount of time with them during each year to make sure we've got [1:26:11] a plan not just to address what happens during an event but after when like [1:26:16] that's where a lot of kind of traffic snares and concerns happen is how do I get my kid at the end of an event like [1:26:22] this. So we do have uh connections with them. We use those connections yesterday [1:26:28] just to reaffirm where we are. Uh school districts have their own requirements in state law about what kind of training [1:26:34] they have to provide their own staff and what kind of plans they have to have. Uh but we assist them with that to to the [1:26:40] best to the best of our ability. I had dialogue with the um superintendent last night and and we did [1:26:48] do a as I mentioned earlier a press release from the city yesterday with regard to our ongoing support and [1:26:55] empathy. Uh we did talk about some you know to what [1:27:00] commissioner Mercer is raising uh releasing some kind of a a joint press release today and I think um director [1:27:07] Benerod I'll stay in touch with you on that and send you the the text that I got from the superintendent. Um that [1:27:13] might be something we want to do on a follow-up basis to the issue of of gun violence that I think Commissioner [1:27:18] Mercer was getting at. What could we as a municipality do about gun violence? [1:27:24] Um, you know, at the at the park last night, of course, our attorney general was [1:27:30] talking about automatic weapons and the reauthorization of the use of automatic weapons weapons. I guess it was actually [1:27:36] the ban lapsed several years ago and manufacturers went into active [1:27:42] manufacturer of those types of weapons. But I'm not sure, you know, what we can do other than be a voice if we if we [1:27:48] decide we want to be. Commissioner Jackson. Thank you, Mr. Chair. So with these [1:27:55] types of events, there's always a before and an after. So my before was yesterday morning waking up thinking about um the [1:28:02] economic future of the Twin Cities. Um so I'm going to go to before for a [1:28:07] little while. The um uh greater MSP met I believe two weeks ago and um and the [1:28:13] mayor was there and and I believe uh Mr. Neil was there. Were you there? I don't know. Um, and Evan Ramstead of [1:28:19] the Star Tribune wrote about it. And as the economic development board um for [1:28:25] the city of Edina, I just want to um raise the issue that growth has slowed in Minnesota and um I [1:28:34] think the when we look at the cost of housing and um how difficult it is to [1:28:41] develop wealth um with a high cost of c housing from you know coming out of [1:28:47] poverty to develop wealth. people who have expensive homes, their value has gone up dramatically. Um, but I just [1:28:56] want to sort of put that alert out there that growth has slowed in the Twin Cities. The decrease in the value of [1:29:03] commercial property in um, downtown Minneapolis is affecting the way the [1:29:09] taxes are spread out over and it's more burden on residential, single family [1:29:14] residential owners. Um, so I just wanted to alert people to that um, problem [1:29:20] that's out there and hope that we can be part of the solution. [1:29:25] Thanks for that. All right. Um, is there a motion to [1:29:30] adjurnn? So moved. I second. Got a motion by Commissioner Jackson. [1:29:36] The meeting of the housing redevelopment. Thank you. Thank you. [1:29:42] uh during the meeting of the Adana Housing and Redevelopment Authority this Thursday, August 28th, 2025 at 9:00 in [1:29:49] the morning. Uh any further discussion? All those in favor of adjournment say I. I. Opposed. Carried. We stand adjourned.