## Richfield Housing and Redevelopment Authority ## Agenda August 17, 2026 -- 7:00 PM ## Richfield Municipal Center ## Council Chambers ## 6700 Portland Avenue South 1. Call to Order ## 2. Roll Call ## 3. Open Forum a. Participants can share their comments in person, by voicemail, or email, and may also request to participate virtually. For more information on submitting comments, refer to the Housing and Redevelopment Authority Agenda and Minutes page on the City's Website. 4. Approval of the Agenda 5. Approval of Minutes a. Approval of the Minutes of the Regular Housing and Redevelopment Authority Meeting of July 20, 2026. 6. Presentations ## 7. Consent Calendar Consent Calendar contains several separate items, which are acted upon by the Housing Redevelopment Authority in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action on these items is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for discussion and action. All items listed on the Consent Calendar are recommended for approval. ## 8. Consideration of Items, if Any Removed From Consent Calendar ## 9. Public Hearings 10. Resolutions a. Consideration of a resolution transferring unspent grant funds to the Economic Development Authority for use in the Apartment Remodeling Loan Program. b. Consider resolutions approving the 2027 Proposed Housing and Redevelopment Authority Budget and Tax Levy, and 2026 Revised Housing and Redevelopment Authority Budget. c. Consideration of an update to the Inclusionary Housing Policy. ## 11. Other Business a. Consideration of updates to the City's Affordable Housing Trust Fund Priorities. ## 12. Executive Director’s Report ## 13. HRA Discussion Items 14. Approval of Claims 15. Adjournment Auxiliary aids for individuals with accessibility needs are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. Includes Materials - Materials relating to these agenda items can be found in the HRA agenda packet located by the entrance. The complete HRA agenda packet is available electronically on the City of Richfield’s website. Page 1 of 131 ## Richfield Housing and Redevelopment Authority Minutes July 20, 2026, 2026 ## Richfield Municipal Center ## Council Chambers ## 6700 Portland Avenue South 1. 2. ## Call to Order The meeting was called to order by Chair Hanson at 7:00 p.m. in the Council Chambers. ## Roll Call ## Members Present: Gordon Hanson, Chair; Sean Hayford Oleary; Mary Supple; John Young; Brett Stursa. ## Members Absent: ## Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community Development Director; Michelle Friedrich, City Clerk. ## Guest Presenters: ## 3. Open Forum a. Participants can share their comments in person, by voicemail, or email, and may also request to participate virtually. For more information on submitting comments, refer to the Housing and Redevelopment Authority Agenda and Minutes page on the City's Website. No open forum participants. 4. Approval of the Agenda MOTION: made by Commissioner Young, seconded by Commissioner Supple to approve the agenda as presented. Voting Aye: Hayford Oleary, Supple, Hanson, Young, and Stursa. Motion carried: 5:0 5. Approval of Minutes a. Approval of the Minutes of the Housing and Redevelopment Authority Meeting of May 18, 2026. MOTION: made by Commissioner Stursa, seconded by Commissioner Hayford Oleary to approve the Housing and Redevelopment Authority Regular Meeting Minutes from May 18, 2026. Voting Aye: Hayford Oleary, Supple, Hanson, Young, and Stursa. Motion carried: 5:0 6. Presentations None. ## 7. Consent Calendar None. ## 8. Consideration of Items, if Any, Removed from Consent Calendar None. ## 9. Public Hearings None. 10. Resolutions None. ## 11. Other Business Page 2 of 131 a. Consideration of a policy for use of the 4d (1) tax classification as a tool to create and preserve affordable housing. Assistant Community Director Urban presented item 11a. Staff reviewed the proposed 4d (1) tax classification policy, emphasizing Richfield’s commitment to preserving affordable housing while balancing the tax impacts on the city and taxpayers. Assistant Community Director Urban the policy establishes 4d (1) as a tool of last resort, prioritizing preservation and rehabilitation of naturally occurring affordable housing and projects that meet key housing priorities; for new construction, 4d would be considered only after other financing sources are exhausted and when financially beneficial to the city. Staff noted the City Council approved the policy on June 9, and the HRA was asked to ratify and apply it when making financial decisions that could enable 4d eligibility, with such decisions also subject to City Council consideration. The HRA expressed appreciation for staff’s work developing and explaining the 4d (1) policy and supported its limited use as a tool of last resort, with greater emphasis on preservation than new construction. The HRA noted that the policy provides a reasonable baseline and flexibility while balancing affordable housing goals with impacts on the city’s tax base and emphasized that the HRA and City Council will ultimately be responsible for applying the policy and making final decisions. MOTION: made by Supple, seconded by Hayford Oleary, to adopt a resolution ratifying a policy governing the use of 4d (1) tax classification to help create and preserve affordable housing. ## Voting Aye: Hayford Oleary, Supple, Hanson, Young, and Stursa Motion carried: 5-0 ## 12. Executive Director’s Report Executive Director Poehlman provided updates on the Bring It Home program, noting that applications and school-to-housing referrals are being reviewed, with a waiting list expected to be established soon, and the first vouchers/payments anticipated by September 1. Executive Director Poehlman noted the application period is expected to reopen in September, with an anticipated issuance of 5–10 vouchers per month. Executive Director Poehlman noted Richfield’s certified 2026 local affordable housing aid allocation is $699,000, a small increase from $653,000 in 2025, and based on cost-burdened households and 2024 American Community Survey data. ## 13. HRA Discussion Items None. 14. Approval of Claims U.S. BANK Check Dates 5/15/26-7/16/26 7/202026 HRA Check #’s 37409-37432 $430,121.37 Section 8 Check #’s 137886-138041 $444,830.74 ## TOTAL: $874,952.11 MOTION: made by Commissioner Hayford Oleary, seconded by Stursa to approve the claims as presented. Voting Aye: Hayford Oleary, Supple, Hanson, Young, and Stursa. Motion carried: 5:0 Page 3 of 131 15. Adjournment HRA meeting adjourned with unanimous consent at 7:13 p.m. ## Date Approved: August 17, 2026 ## Gordon Hanson ## HRA Chair ## Michelle Friedrich Melissa Poehlman ## City Clerk Executive Director Page 4 of 131 ## Housing and Redevelopment Authority Meeting 8/17/2026 ## Agenda Section: Resolutions Agenda Item: 10.a. ## Report Prepared By: ## Julie Urban, Assistant Community Development Director ## Department Director: ## Melissa Poehlman, Community Development Director ## Item for Consideration: Consideration of a resolution transferring unspent grant funds to the Economic Development Authority for use in the Apartment Remodeling Loan Program. ## EXECUTIVE SUMMARY In 2019, the Housing and Redevelopment Authority (HRA) received a grant from Affordable Suburban Housing (ASH), a local non-profit that supported affordable housing in suburban communities. ASH was dissolving as an organization and was disbursing its remaining assets. ASH awarded $100,000 to the HRA to support affordable housing in the community. The HRA created a program with the award to provide rehabilitation grants to Naturally Occurring Affordable Housing properties (NOAH), specifically to be used on improvements to units occupied by long-time tenants. One grant in the amount of $45,000 was awarded in 2020, but the remaining funds have gone unspent. Staff is recommending that the funds be transferred to the Economic Development Authority (EDA) to be used in its Apartment Remodeling Program (ARP). While staff can continue to try and market improvements to occupied units, combining the funds with ARP will allow greater flexibility and ability to get the funds spent. ## RECOMMENDED ACTION By Motion: Approve a resolution transferring $55,000 in unspent Affordable Suburban Housing grant funds to the Economic Development Authority for use in the Apartment Remodeling Program. ## HISTORICAL CONTEXT In 2019, the HRA received a $100,000 grant from ASH to spend on affordable housing in the community. ## EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Maintaining Richfield as an affordable place to live is a desirable outcome of the City's Strategic Plan. ## POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) ## N/A ## CRITICAL TIMING ISSUES The remaining funds have been sitting in the HRA General Fund for several years. By Page 5 of 131 transferring it to the EDA, the funds can be used as part of the Apartment Remodeling Program and hopefully spent more quickly. ## FINANCIAL IMPACT • $55,000 remains in grant funding awarded by ASH. • The transfer is reflected in the 2027 HRA and EDA budgets. ## LEGAL CONSIDERATIONS The terms of the grant award were simply that the community use it to support affordable housing. ## ALTERNATIVE RECOMMENDATION(S) Decide not to transfer the funds to the EDA. ## ATTACHMENTS 1. 081726 Resolution ASH Funds transfer to EDA Page 6 of 131 ## RESOLUTION NO. ## RESOLUTION AUTHORIZING THE TRANSFER OF AFFORDABLE HOUSING ## GRANT FUNDS TO THE ECONOMIC DEVELOPMENT AUTHORITY FOR USE IN ## THE APARTMENT REMODELING PROGRAM WHEREAS, in 2019, the Housing and Redevelopment Authority in and for the City of Richfield (the “HRA”), received a grant from Affordable Suburban Housing (“ASH”), a local non-profit that supported affordable housing in suburban communities; WHEREAS, ASH was dissolving as an organization and was disbursing its remaining assets and awarded $100,000 to the HRA to support affordable housing in the community; and WHEREAS, The HRA created a program to provide rehabilitation grants to naturally occurring affordable housing properties (NOAH); and WHEREAS, $55,000 remains of the grant funds; and WHEREAS, the HRA has determined that the funds can be best spent by the ## Richfield Economic Development Authority (the “EDA”) through its Apartment ## Remodeling Program; and ## NOW, THEREFORE, BE IT RESOLVED 1. The HRA authorizes its Executive Director to transfer the remaining $55,000 in ASH grant funds to the EDA. ## Gordon Hanson, Chair ## ATTEST: ## John Young, Secretary Page 7 of 131 ## Housing and Redevelopment Authority Meeting 8/17/2026 ## Agenda Section: Resolutions Agenda Item: 10.b. ## Report Prepared By: ## Melissa Poehlman, Community Development Director ## Department Director: ## Melissa Poehlman, Community Development Director ## Item for Consideration: Consider resolutions approving the 2027 Proposed Housing and Redevelopment Authority Budget and Tax Levy, and 2026 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 Revised 2026 HRA Budget and proposed 2027 HRA Budget are presented for consideration and approval. In addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority. This proposed levy must be certified to the Hennepin County Auditor by September 30, 2026. Any amendments to the proposed budget which would increase the property tax levy must be made prior to this deadline. No increases in the tax levy are permissible after this date, only reductions. Final certification of the HRA tax levy is part of the City's budget process. For 2027, staff is proposing no increase to the HRA levy. The proposed 2027 General Fund Budget for the HRA is $610,231. The proposed total HRA Budget is $5,555,071. The details of the 2026 Revised and 2027 Proposed HRA Budgets are provided in the attached Budget Book and will be presented by staff at the HRA meeting. ## RECOMMENDED ACTION By Motion: Adopt the attached resolutions approving the 2027 Proposed Housing and Redevelopment Authority Budget and Tax Levy, and 2026 Revised Housing and Redevelopment Authority Budget. ## HISTORICAL CONTEXT ## N/A ## EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The mission of the HRA is 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. This work directly relates to the City's Strategic Plan and equity goals. Page 8 of 131 ## POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • Minnesota Statutes require the adoption of a preliminary levy from each taxing authority. • A public hearing is not required. However, this does not preclude the HRA from opening this item up for public discussion if the Board wishes to do so. ## CRITICAL TIMING ISSUES The proposed tax levy for the payable year 2027 must be submitted to the County Auditor on or before September 30, 2026. ## FINANCIAL IMPACT • The proposed 2027 HRA levy represents a 0% increase from 2026 levy. • The proposed 2027 HRA levy is approximately $191,300 less than the maximum HRA levy permitted by law. • The HRA is primarily funded by a number of Special Revenue sources including, but not limited to, the Federal Government and Local Affordable Housing Aid. ## LEGAL CONSIDERATIONS ## N/A ## ALTERNATIVE RECOMMENDATION(S) Direct staff to revise the proposed budget and/or levy to better-reflect identified priorities. ## ATTACHMENTS 1. 2027 HRA Budget - DRAFT ## 2. 2027 HRA Budget Tax Levy Resolution 3. 081726 2026 HRA Budget 2027 Revised Resolution Page 9 of 131 ## 2027 BUDGET ## HOUSING AND REDEVELOPMENT ## AUTHORITY ## JANUARY 1, 2027 - DECEMBER 31, 2027 ·11fl l . · ,, .1! • •. ## 6700 PORTLAND AVENUE ## RICHFIELD, MN 55423 richfieldmn.gQY Page 10 of 131 ## TABLE OF CONTENTS Page No. ## HRA Officials2 ## Executive Director's Budget Message3 ## Summary of 2026/2027 Budget - All Funds9 ## Comparative Analysis of Expenditures By Major Objectives - All Funds10 ## Comparative Analysis of Expenditures - All Funds11 ## Comparative Analysis of Revenues - All Funds12 ## General Fund: ## Budget Summary - General Fund15 ## Housing and Redevelopment Administration - Narrative16 ## General Fund Revenue18 ## HRA Administration19 ## Marketing and Promotional Events 20 ## Rental Housing Support21 ## Richfield Rediscovered HF 22 ## Special Revenue Funds: ## Capital Improvement 26 ## New Home Program30 ## Housing Rehabilitation Program35 ## Section 8 - Housing Assistance Program 40 Section 8 - Administration 45 ## Affordable Housing Trust48 ## Local Affordable Housing Aid53 ## Bring It Home58 ## Capital Projects: ## Temporary Spending Plan63 ## Development Opportunities68 ## The Lakes at Lyndale73 ## Lyndale Garden Center78 ## Cedar Point Commons81 ## Cedar Corridor 85 ## Penn Corridor89 ## Housing & Redevelopment Fund93 ## Budget Resolutions: ## Resolution Approving Proposed 2027 Housing and Redevelopment99 Authority Budget and Certifying the 2027 Tax Levy. Resolution Authorizing Revision of 2026 Budget of the Housing and 100 Redevelopment Authority of Richfield. 1 Page 11 of 131 ## CITY OF RICHFIELD, MINNESOTA ## ANNUAL BUDGET ## HOUSING AND REDEVELOPMENT AUTHORITY ## HRA COMMISSIONERS ## GORDAN HANSON - CHAIR ## COMMISSIONER - BRETT STURSACOMMISSIONER - SEAN HAYFORD OLEARY ## COMMISSIONER - MARY SUPPLECOMMISSIONER - JOHN YOUNG ## ADMINISTRATIVE STAFF ## MELISSA POEHLMAN - EXECUTIVE DIRECTOR/COMMUNITY DEVELOPMENT DIRECTOR ## MARY BOGIE - FINANCE DIRECTOR 2 Page 12 of 131 ## 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 August 7, 2026 ## 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, 2027, to December 31, 2027, is submitted. A meeting to consider the proposed HRA budget will be held on August 17, 2026, at 7:00 p.m. Pursuant to State law, the HRA must certify the 2027 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 28, 2026. A proposed 2027 tax levy must be submitted to the County Auditor on or before September 30, 2026. Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to September 30, 2026. 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 2026 budget and the proposed 2027 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 Page 13 of 131 ## 2027 HRA Budget Message August 7, 2026 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 (2026) ## 2026/2027 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: • Researching and discussing several housing policies. • Exploring redevelopment opportunities in identified priority areas: Downtown, Penn Corridor, Cedar Corridor. • Evaluating the best use of unspent Temporary Spending Plan money. • 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 and 40 Bring it Home families. • Providing emergency rental assistance with Local Affordable Housing Aid (LAHA) funding. • Prioritizing maintenance of Richfield’s housing stock through the Fix Up Fund Loan Program and exploring and launching 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 focus on priority or demonstration housing types. • Continuing to implement the priorities and “next steps” identified in the Housing Program Evaluation. • Managing grant funds to further development, support affordable homeownership opportunities, and develop new rehabilitation programs. • Participating in outreach and drafting of the next Comprehensive Plan update. 4 Page 14 of 131 ## 2027 HRA Budget Message August 7, 2026 Page | 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 2026, and goals for 2027. A detailed accounting of actual revenues and expenditures for the past year (2025), as well as adopted and revised 2026 budgets are provided to compare with proposed 2027. ## OVERVIEW 2026 AND 2027 The HRA budget varies significantly from year-to-year for several reasons. First, investments in the community through HRA support are made as opportunities arise. These investments are most often made from fund balances rather than a particular year’s levy. Additionally, pass-through funding such as large grants, or transfers from one fund to another can skew the budget significantly. The 2026 revised budget for the Temporary Spending Plan reflects that at the end of the year all unspent funds must be transferred. This looks like a $3.6 million expenditure but rather reflects moving money from one fund to another (Housing & Redevelopment Fund) as our legislative authority expires. Finally, unexpected events occur. Operation Metro Surge earlier this year led to an acute need for additional funding for our partner organizations that help to ensure housing stability for residents. For these reasons, the HRA budget can seem to fluctuate significantly from approved to revised and from one year to the next. Fixed costs remain largely flat for the HRA in 2026 and 2027. A review of building and IT service charges resulted in significant savings for the HRA, which absorbed increases in staff costs. As mentioned above, HRA funding fluctuates significantly based on opportunities, but in stable and pre-planned spending our investments into the community will increase for 2027 by approximately 39% as we continue to issue more Bring it Home vouchers and utilize Local Affordable Housing Aid (LAHA) funds to increase and expand our housing programs. The HRA holds fund balances in several accounts because different funding streams come with different sets of spending rules (and reporting requirements). It’s important that the HRA have the flexibility to react to investment opportunities by having a healthy unrestricted fund balance, and this is now primarily funded by the HRA levy. That said, for the past few years the HRA has been able to take advantage of temporary additional flexibility thanks to changes by the State Legislature. In the past, a large investment in the preservation of 5 Page 15 of 131 ## 2027 HRA Budget Message August 7, 2026 Page | 4 affordable housing like was done for the three apartment communities in 2025 would’ve required the use of $1.5 million from the general fund balance. Instead, Special Legislation allowed pooled TIF to be transferred and utilized for this housing stability work. This flexibility, the creation of LAHA as a funding source, and a lack of larger development projects for the HRA to invest in has allowed the HRA to maintain healthy fund balances while increasing smaller housing programming. Recognizing this, and the current larger economic forces that are putting significant pressure on many of our residents, a 0% increase is proposed for the 2027 levy. The resolution to certify the 2027 budget and tax levy has been prepared based on the proposed budget. This resolution and a resolution revising the 2026 budget are in the last section of this document. Respectfully submitted, ## Melissa Poehlman, AICP ## Executive Director 6 Page 16 of 131 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 7 Page 17 of 131 ## SUMMARY OF 2026/2027 BUDGET ## COMPARATIVE ANALYSIS OF EXPEN ## DITURES BY MAJOR OBJECTIVES - ALL FUNDS ## COMPARATIVE ANALYSIS OF EXPENDITURES - ALL FUNDS ## COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS 8 Page 18 of 131 ## SUMMARY OF 2026/2027 BUDGET - ALL FUNDS ## Fund BalanceFund BalanceFund Balance FUNDSJanuary 1, 2026RevenuesExpendituresDecember 31, 2026RevenuesExpendituresDecember 31, 2027 ## GENERAL3,480,718$ 835,890$ 595,642$ 3, 720,966$ 835, 230$ 610,231$ 3,945,965$ ## SPECIAL REVENUE: Capital Improvement998,170 40,000 - 1, 038,170 40,000 25,250 1,052,920 New Home Program286,518 130,000 131,600 284,918 - 2,100282,818 Housing Rehabiliation Program290,991 15,000 119, 850 186,141 15,000 121,450 79, 691 Section 8 Rental Assistance - HAP(44,520) 2,450,000 2,450,000 (44,520) 2,750,000 2,750,000 (44,520) Section 8 Rental Assistance - ADMIN94,338 397,520 397,520 94,338 422, 790 422,790 94, 338 Affordable Housing Trust421,812 150,000 231,000 340,812 - 241,000 99,812 Affordable Housing-Special Legis/LAHA723,833 699,703 220, 000 1,203,536 400, 000 460,000 1, 143,536 Bring it Home-170,730 170,730 - 423,500 423,500 - TOTAL SPECIAL REVENUE2,771,142 4,052,953 3,720,700 3,103,395 4,051,290 4,446,090 2,708,595 ## CAPITAL PROJECTS: Development Opportunities7,295,798 1,345,450 1, 413,451 7,227,797 48, 000 48,000 7,227,797 Lakes at Lyndale64,608 - 31,250 33,358 25,250 25, 250 33,358 ## Lyndale Garden Center(5,303) 4,600 4, 600 (5,303) 4, 600 2,500 (3,203) Cedar Point Commons(131,697) 3,000 1,000 (129,697) 3,000 1,000 (127,697) Cedar Corridor765,676 1,000 1, 000 765,676 1,000 1,000 765, 676 Penn Corridor 87,968 8,800 5,800 90,968 5,800 5, 800 90,968 Housing & Redevelopment Fund4,033,243 4,069,220 235, 600 7,866,863 427, 750 415,200 7,879,413 Spending Plans3,616,882 13,118 3,630,000 - - - - TOTAL CAPITAL PROJECTS15,727,175 5,445,188 5,322,701 15,849,662 515, 400 498,750 15,866,312 ## TOTAL - ALL FUNDS 21,979,035$ 10,334,031$ 9,639,043$ 22,674,023$ 5,401,920$ 5,555,071$ 22,520,872$ 9 Page 19 of 131 ## COMPARATIVE ANALYSIS OF EXPENDITURES ## BY MAJOR OBJECTIVES - ALL FUNDS 20262027 2025BudgetRevisedBudget ## General Fund Personal services343,031$ 344,910$ 351,990$ 357,810$ Other services and charges106,555 230,420 159,750 161,531 Total Current Expenditures449,586 575,330 511,740 519,341 Capital outlay173,500 Transfers7,600 7,600 83,902 90,890 Total General Fund457,186 756,430 595,642 610,231 ## Special Revenue Funds Personal services258,898$ 293,500$ 306,580$ 305,580$ Other services and charges3,905,034 3,769,530 3,174,120 3,875,260 Total Current Expenditures4,163,932 4,063,030 3,480,700 4,180,840 Capital outlay170,000 160,000 240,000 240,000 ## Transfers25,250 Total Special Revenue4,333,932 4,223,030 3,720,700 4,446,090 ## Capital Projects Funds Personal services-$ -$ -$ -$ Other services and charges219,814 146,650 241,650 111,550 Total Current Expenditures219,814 146,650 241,650 111,550 Capital outlay871,414 2,019,000 1,383,050 387,200 Transfers1,300,000 500,000 3,698,001 - Total Capital Projects2,391,228 2,665,650 5,322,701 498,750 ## TOTAL FOR ALL FUNDS Personal services601,929 638,410 658,570 663,390 Other services and charges4,231,403 4,146,600 3,575,520 4,148,341 Total Current Expenditures4,833,332 4,785,010 4,234,090 4,811,731 Capital outlay1,041,414 2,352,500 1,623,050 627,200 Transfers1,307,600 507,600 3,781,903 116,140 Total for All Funds7,182,346$ 7,645,110$ 9,639,043$ 5,555,071$ 10 Page 20 of 131 ## COMPARATIVE ANALYSIS OF EXPENDITURES ## ALL FUNDS 20262027 ## FUNDS2025BudgetRevised Budget ## GENERAL457,186$ 756,430$ 595,642$ 610,231$ ## SPECIAL REVENUE Capital Improvement- - - 25,250 New Home75,129 21,500 131,600 2,100 ## Housing Rehabilitation 65,018 119,850 119,850 121,450 Section 8 - Housing Assistance Program1,989,886 2,350,000 2,450,000 2,750,000 Section 8 - Administration383,899 394,760 397,520 422,790 ## Affordable Housing Trust 1,740,000 701,000 231,000 241,000 Local Affordable Housing Aid80,000 400,000 220,000 460,000 Bring it Home- 235,920 170,730 423,500 Total Special Revenue4,333,932 4,223,030 3,720,700 4,446,090 ## CAPITAL PROJECTS Development Opportunities140,314 1,896,000 1,413,451 48,000 Lakes at Lyndale- 17,250 31,250 25,250 Lyndale Garden Center- 4,600 4,600 2,500 Cedar Point Commons- 1,000 1,000 1,000 Cedar Corridor 2,658 1,000 1,000 1,000 Penn Corridor1,297 10,800 5,800 5,800 Housing & Redevelopment Fund946,959 205,000 235,600 415,200 ## Spending Plans 1,300,000 530,000 3,630,000 - Total Capital Projects2,391,228 2,665,650 5,322,701 498,750 ## TOTAL - ALL FUNDS7,182,346$ 7,645,110$ 9,639,043$ 5,555,071$ 11 Page 21 of 131 ## COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS - 2026 REVISED ## SpecialCapital ## GeneralRevenueProjectsTotal Taxes742,230$ -$ -$ 742,230$ Intergovernmental Revenues- 3,900,433 1,299,450 5,199,883 Miscellaneous Revenues93,660 121,500 189,618 404,778 Transfers- 31,020 3,956,120 3,987,140 Total835,890$ 4,052,953$ 5,445,188$ 10,334,031$ ## COMPARATIVE ANALYSIS OF REVENUES - ALL FUNDS - 2027 ## SpecialCapital ## GeneralRevenueProjectsTotal Taxes742,230$ -$ -$ 742,230$ Intergovernmental Revenues- 3,898,500 175,000 4,073,500 Miscellaneous Revenues93,000 124,500 217,500 Transfers- 28,290 340,400 368,690 Total835,230$ 4,051,290$ 515,400$ 5,401,920$ ## COMPARATIVE ANALYSIS OF FUND BALANCE - GENERAL FUND 20262027 2025BudgetRevised Fund Balance, January 13,083,882$ 3,098,270$ 3,480,718$ 3,720,966$ Revenues854,022 914,588 835,890 835,230 Total Available3,937,904 4,012,858 4,316,608 4,556,196 Expenditures457,186 756,430 595,642 610,231 Fund Balance, December 313,480,718$ 3,256,428$ 3,720,966$ 3,945,965$ 12 Page 22 of 131 ## GE ## NERAL FUND 13 Page 23 of 131 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 14 Page 24 of 131 ## BUDGET SUMMARY - GENERAL FUND 2025 20262027 ## AVAILABLE FOR APPROPRIATION ## ActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1 3,083,882$ 3,098,270$ 3,480,718$ 3,720,966$ ## Revenues: ## Taxes: Current705,474 742,230 742,230 742,230 Total Taxes705,474 742,230 742,230 742,230 ## Miscellaneous Revenues: Other Miscellaneous Revenues148,548 172,358 93,660 93,000 Total Miscellaneous Revenues148,548 172,358 93,660 93,000 Total Revenues854,022 914,588 835,890 835,230 ## Expenditures: Personal Services343,031 344,910 351,990 357,810 Capital Outlay- 173,500 - - Other Services and Charges106,555 230,420 159,750 161,531 Total Expenditures449,586 748,830 511,740 519,341 Excess (Deficiency) of Revenues Over Expenditures404,436 165,758 324,150 315,889 ## Transfers From (To) Other Funds: ## EDA(55,000) ## Underpass Project(45,282) ## New Home ## Rehabilitation Program Section 8 Administration(31,020) (28,290) ## 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) (7,600) (83,902) (90,890) ## FUND BALANCE - DECEMBER 313,480,718$ 3,256,428$ 3,720,966$ 3,945,965$ 15 Page 25 of 131 ## ADMINISTRATION The Richfield Housing and Redevelopment Authority (HRA) works to keep the residential and commercial areas of the City vital, maintain property values, and serve the diverse housing and economic needs of homeowners, renters, and the business community. The HRA is staffed by the City’s Community Development Department and is funded through a variety of sources. The Administration budgets in the following pages represent staffing costs, operating expenses, and programs funded by the HRA levy and/or General Fund. ## HIGHLIGHTS AND GOALS In 2026, the Community Development Department restructured to reassign supervision of the Housing Inspectors from the Assistant Director to the Senior Building Official. This restructuring is intended to allow for additional housing policy work, such as the evaluation of a policy related to the 4d(1) Affordable Housing Tax Classification. In 2026, a Metropolitan Council grant allowed for expanded hours for Housing Specialists. The hours allow for the development of new housing programming based on the Housing Program Evaluation completed in 2025. In 2027, the HRA levy will support a permanent expansion of the hours for one of the two Housing Specialists, allowing for the implementation of new programming and potential expansion of existing programs. In 2026 and 2027, the Housing Team will continue to tackle housing policy questions (e.g. source of income discrimination, eviction notification requirements, and creation of a housing improvement area (HIA) policy) The levy also supports the following programming anticipated in 2026 and 2027: • Marketing for events such as the biennial Tour of Remodeled Homes and other promotion of HRA housing programs and • Rental Housing Support, which includes landlord and tenant training and resources. 16 Page 26 of 131 ## DIVISION EXPENDITURE COMMENT • The H RA Administration Division includes staffing costs for nearly all HRA programming. The revised 2026 budget includes an additional $31,000 transfer to cover a potential shortfall in HUD Administrative funding for Section 8 staff. While HUD has continued to cover these shortfalls in most years, the revised budget reflects the potential need for a transfer from the HRA General Fund. The 2027 budget similarly plans for this possibility. • The HRA General Levy pays administrative expenses related to some of the HRA’s funding sources which don’t allow funds to be used for administration (e.g., the Local ## Housing Affordable Housing Aid and Community Development Block Grant Programs). • Unspent funds from a grant awarded to the HRA in 2018 for affordable housing will be transferred from the HRA General Fund (Rental Housing Support) to the EDA for use in the EDA’s Apartment Remodeling Program in 2027. This transfer inflates the Administration Budget for 2027 by $55,000; however, the money is simply being moved to a different fund. • The 2026 Revised and 2027 Proposed Administration Budgets reflect increases of 17.4% and 17.5%; however, the above transfer and the possible, but not certain, shortfalls in Section 8 account for most of this increase. • Staffing costs will increase by 3.74%. As tax increment districts expire, administrative funds also expire. Funding to administer programming undertaken with Housing and Redevelopment Account funds must be reallocated to the HRA and City general levies. 17 Page 27 of 131 ## HRA GENERAL FUND ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 HRA Administration - 90100 ## BUSINESS UNIT: ## Taxes 4005593,477742,230742,230742,230Current$$$$ 4010(255)- - - Delinquent 4025112,252- - - Fiscal Disparities 742,230742,230742,230705,474Taxes ## Total $$$$ ## Miscellaneous Revenues 4607110,87680,00080,00080,000Investment Earnings$$$$ 4620(130)- 1,400- Contributions & Donations ## 464437,80212,35812,26013,000Other Miscellaneous Revenues 92,35893,66093,000148,548Miscellaneous Revenues ## Total $$$$ ## HRA Administration ## TOTAL 834,588835,890835,230854,022$$$$ 18 Page 28 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## HRA GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: HRA Administration - 90100 ## BUSINESS UNIT: ## Personal Services 6051343,031344,910351,990357,810Interdepartmental Labor$$$$ 344,910351,990357,810343,031Personal Services ## Total $$$$ ## Other Services & Charges 61037,19015,00015,00015,000Professional Services -General$$$$ 620111,40011,86011,86028,331Rents & Leases ## 620255,83057,98057,98030,830Data Processing Rental 6301- 300300300Advertising & Publication 6302166450- - Communications 63035,0753,9106,4904,000Professional Development 63054941,6701,6701,670Subscriptions & Memberships 630714,41423,00020,10020,100Insurance & Bonds 64019041,8001,8001,800Office Supplies 6402663800800800Copy Charges 6403212250250250Postage 640968400250400Uniforms & Clothing 64141461,0004001,000Other Supplies 65131,073- - - Other Charges 118,420116,900104,48197,635Other Services & Charges ## Total $$$$ ## Other Financing Uses ## 85117,6007,60083,90290,890Operating Transfers Out$$$$ ## 7,60083,90290,8907,600Other Financing Uses ## Total $$$$ 470,930552,792553,181448,266HRA Administration ## TOTAL $$$$ 19 Page 29 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## HRA GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Marketing/Events - 90300 ## BUSINESS UNIT: ## Other Services & Charges 61031,2505,2002,2001,900Professional Services -General$$$$ 63012,6031,3004,4001,500Advertising & Publication 6305125- 125150Subscriptions & Memberships 6401- 505050Office Supplies 6402126250250250Copy Charges 64031,1062,7002,7001,300Postage 6414621,7001,4751,000Other Supplies 11,20011,2006,1505,272Other Services & Charges ## Total $$$$ 11,20011,2006,1505,272Marketing/Events ## TOTAL $$$$ 20 Page 30 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## HRA GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: ## Rental Housing Support - 90400 ## BUSINESS UNIT: ## Other Services & Charges 6103-42,00022,00042,000Professional Services -General$$$$ 6301-200100200Advertising & Publication 6402-505050Copy Charges 6414-250100250Other Supplies 42,50022,25042,500-Other Services & Charges ## Total $$$$ ## 42,50022,25042,500-Rental Housing Support ## TOTAL $$$$ 21 Page 31 of 131 ## HRA GENERAL FUND ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 Richfield Rediscovered/HF - 90700 ## BUSINESS UNIT: ## Miscellaneous Revenues 4644- 80,000- - Other Miscellaneous Revenues$$$$ 80,000- - - Miscellaneous Revenues ## Total $$$$ ## Richfield Rediscovered/HF ## TOTAL 80,000- - - $$$$ 22 Page 32 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## HRA GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Richfield Rediscovered/HF - 90700 ## BUSINESS UNIT: ## Other Services & Charges 6103- 3,5003,6002,600Professional Services -General$$$$ 6301- 100200100Advertising & Publication 6310- 3,0002,9103,000Taxes & Licenses ## 63153,6481,7002,6902,700Other Contractual Services 6511- 50,000- - Rehab Loan Program 58,3009,4008,4003,648Other Services & Charges ## Total $$$$ ## Capital Outlay 7110- 155,000- - Land Purchases$$$$ 7310- 18,500- - Site Improvements 173,500- - - Capital Outlay ## Total $$$$ 231,8009,4008,4003,648Richfield Rediscovered/HF ## TOTAL $$$$ 23 Page 33 of 131 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 24 Page 34 of 131 ## SPECIAL REVENUE FUNDS 25 Page 35 of 131 ## BUDGET SUMMARY - CAPTIAL IMPROVEMENT FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1 946,894$ 986,894$ 998,170$ 1,038,170$ ## Revenues: ## Miscellaneous Revenues: Interest51,276 40,000 40,000 40,000 Total Revenues51,276 40,000 40,000 40,000 ## Expenditures: Other Services and Charges- - - - Total Expenditures- - - - Excess (Deficiency) of Revenues Over Expenditures51,276 40,000 40,000 40,000 ## Transfers From (To) Other Funds: Lakes at Lyndale- - - (25,250) General Fund- - - - Special Revenue- - - - Net Transfers- - - (25,250) ## FUND BALANCE - DECEMBER 31 998,170$ 1,026,894$ 1,038,170$ 1,052,920$ 26 Page 36 of 131 ## 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. • In 2027, a transfer to the “Lakes at Lyndale” fund to support downtown placemaking implementation is proposed. 27 Page 37 of 131 ## CAPITAL IMPROVEMENT FUND ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CAPITAL IMPROVEMENT FUND - 91001 ## BUSINESS UNIT: ## Miscellaneous Revenues 460751,27640,00040,00040,000Investment Earnings$$$$ 40,00040,00040,00051,276Miscellaneous Revenues ## Total $$$$ ## CAPITAL IMPROVEMENT FUND ## TOTAL 40,00040,00040,00051,276$$$$ 28 Page 38 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CAPITAL IMPROVEMENT FUND ## FUND: ## Community Development ## DEPARTMENT: ## CAPITAL IMPROVEMENT FUND - 91001 ## BUSINESS UNIT: ## Other Financing Uses 8511- - - 25,250Operating Transfers Out$$$$ - - 25,250- Other Financing Uses ## Total $$$$ ## - - 25,250- CAPITAL IMPROVEMENT FUND ## TOTAL $$$$ 29 Page 39 of 131 ## BUDGET SUMMARY - NEW HOME PROGRAM FUND 202520262027 ## AVAILABLE FOR APPROPRIATION ## ActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1 296,786$ 295,286$ 286,518$ 284,918$ ## Revenues: ## Intergovernmental CDBG Grants55,000 20,000 130,000 - ## Miscellaneous Loan Repayment- - - - Interest9,861 - - - Total Revenues64,861 20,000 130,000 - ## Expenditures: Other Services and Charges75,129 21,500 51,600 2,100 Capital Outlay- - 80,000 - Total Expenditures75,129 21,500 131,600 2,100 Excess (Deficiency) of Revenues Over Expenditures(10,268) (1,500) (1,600) (2,100) ## Transfers From (To) Other Funds: Affordable Housing Trust Fund- - - - General Fund- - - - Net Transfers- - - - ## FUND BALANCE - DECEMBER 31 286,518$ 293,786$ 284,918$ 282,818$ 30 Page 40 of 131 ## NEW HOME PROGRAM ## MISSION STATEMENT To encourage the development of homeownership opportunities for low- and moderate- income families, and 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. ## 2026 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 two to three first-time homebuyers. • CDBG funding provides funding for one affordable homeownership opportunity through the community land trust. ## 2027 PROGRAM GOALS • Funds are budgeted to cover legal expenses related to the servicing of New Home Program and First Time Homebuyer mortgages. • Housing and Redevelopment Fund money is designated for the purchase and demolition of one substandard home for redevelopment as a new affordable home. ## PROGRAM EXPENDITURE COMMENT • Funding for New Home Program homeownership activities has been provided by a variety of sources including CDBG and the Housing and Redevelopment Fund. 31 Page 41 of 131 These activities may also be funded out of other Funds, including Local Affordable Housing Aid (LAHA) and the Affordable Housing Trust Fund. • These funding sources do not provide for administrative costs. Previously, administrative costs were covered by the HRA General Fund; however, these costs are now covered by the available fund balance. • The City is no longer a direct recipient of federal CDBG funds. Funds budgeted for 2026 are the remaining funds awarded as a direct allocation. 32 Page 42 of 131 ## NEW HOME PROGRAM ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## NEW HOME PROGRAM - 91010 ## BUSINESS UNIT: ## Intergovernmental Revenues ## 421455,00020,000130,000- CDBG Grants$$$$ 20,000130,000- 55,000Intergovernmental Revenues ## Total $$$$ ## Miscellaneous Revenues 46079,861- - - Investment Earnings$$$$ - - - 9,861Miscellaneous Revenues ## Total $$$$ ## NEW HOME PROGRAM ## TOTAL 20,000130,000- 64,861$$$$ 33 Page 43 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## NEW HOME PROGRAM ## FUND: ## Community Development ## DEPARTMENT: ## NEW HOME PROGRAM - 91010 ## BUSINESS UNIT: ## Other Services & Charges 6103(48)1,5001,5001,500Professional Services -General$$$$ 6301177- 100100Advertising & Publication 6315- - - 500Other Contractual Services ## 651175,00020,00050,000- Rehab Loan Program 21,50051,6002,10075,129Other Services & Charges ## Total $$$$ ## Capital Outlay 7110- - 80,000Land Purchases$$$$ - 80,000- Capital Outlay ## Total $$$$ ## 21,500131,6002,10075,129NEW HOME PROGRAM ## TOTAL $$$$ 34 Page 44 of 131 ## BUDGET SUMMARY - HOUSING REHABILITATION PROGRAM FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1 317,481$ 213,316$ 290,991$ 186,141$ ## Revenues: ## Miscellaneous Revenues: Loan Repayments26,890 15,000 15,000 15,000 Interest Earnings11,338 - - - Other300 - - - Total Revenues38,528 15,000 15,000 15,000 ## Expenditures: Other Services and Charges65,018 119,850 119,850 121,450 Total Expenditures65,018 119,850 119,850 121,450 Excess (Deficiency) of Revenues Over Expenditures(26,490) (104,850) (104,850) (106,450) ## Transfers From (To) Other Funds: General Fund- - - - Net Transfers- - - - ## FUND BALANCE - DECEMBER 31 290,991$ 108,466$ 186,141$ 79,691$ 35 Page 45 of 131 ## 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 p rograms 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. ## 2026 HIGHLIGHTS • Continued to offer the Home Energy Squad Enhanced program to Richfield residents at a reduced rate; 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 2026. • 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 2026. • Funds budgeted for the reduced interest-rate Fix-Up Fund Program allow for 12 to 25 loans. 36 Page 46 of 131 ## 2027 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 remains at the higher level of $90,000. 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 2026 and 2027, cash reserves will fund all of these programs. 37 Page 47 of 131 ## REHABILITATION LOAN PROGRAM ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## REHABILITATION LOAN PROGRAM - 91300 ## BUSINESS UNIT: ## Miscellaneous Revenues 460711,338- - - Investment Earnings$$$$ 4644300- - - Other Miscellaneous Revenues ## 464826,89015,00015,00015,000Loan Repayment Revenue 15,00015,00015,00038,528Miscellaneous Revenues ## Total $$$$ ## REHABILITATION LOAN PROGRAM ## TOTAL 15,00015,00015,00038,528$$$$ 38 Page 48 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## REHABILITATION LOAN PROGRAM ## FUND: ## Community Development ## DEPARTMENT: ## REHABILITATION LOAN PROGRAM - 91300 ## BUSINESS UNIT: ## Other Services & Charges 610314,46429,75029,75031,350Professional Services -General$$$$ 6301- 100100100Advertising & Publication ## 651150,55490,00090,00090,000Rehab Loan Program 119,850119,850121,45065,018Other Services & Charges ## Total $$$$ ## 119,850119,850121,45065,018REHABILITATION LOAN PROGRAM ## TOTAL $$$$ 39 Page 49 of 131 ## BUDGET SUMMARY - SECTION 8 HOUSING ASSISTANCE PROGRAM FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1(26,563)$ (26,563)$ (44,520)$ (44,520)$ ## Revenues: ## Intergovernmental Revenues - Federal Housing Assistance Plan1,971,929 2,350,000 2,450,000 2,750,000 ## Miscellaneous Revenues: Other- - - - Total Revenues1,971,929 2,350,000 2,450,000 2,750,000 ## Expenditures: Other Services and Charges1,989,886 2,350,000 2,450,000 2,750,000 Total Expenditures1,989,886 2,350,000 2,450,000 2,750,000 Excess (Deficiency) of Revenues ## Over Expenditures(17,957) - - - ## FUND BALANCE - DECEMBER 31(44,520)$ (26,563)$ (44,520)$ (44,520)$ 40 Page 50 of 131 ## 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 185 - 200 vouchers utilized by the Housing and Redevelopment Authority (HRA), the program also administers services to approximately 50 - 60 “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. Program administrative costs are primarily reimbursed by HUD; however, when these reimbursements fall short the program is subsidized by the HRA. ## 2026 HIGHLIGHTS. • Managed waiting list of 100 families from 2022 waiting list. • Richfield’s Section 8 staff was recognized by HUD staff for their exceptional administration of the program. ## 2027 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. 41 Page 51 of 131 ## PROGRAM EXPENDITURE COMMENT • Recent trends with fewer voucher-holders finding units within the City have led to a potential administrative deficit in 2026 and 2027. 42 Page 52 of 131 ## RICHFIELD HAP ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## RICHFIELD HAP - 91500 ## BUSINESS UNIT: ## Intergovernmental Revenues 42161,971,9292,350,0002,450,0002,750,000Section 8$$$$ 2,350,0002,450,0002,750,0001,971,929Intergovernmental Revenues ## Total $$$$ ## RICHFIELD HAP ## TOTAL 2,350,0002,450,0002,750,0001,971,929$$$$ 43 Page 53 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## RICHFIELD HAP ## FUND: ## Community Development ## DEPARTMENT: ## RICHFIELD HAP - 91500 ## BUSINESS UNIT: ## Other Services & Charges 65022,605,4933,200,0003,200,0003,600,000HAP Payments$$$$ ## 6503(615,607)(850,000)(750,000)(850,000)Portability HAP Credit 2,350,0002,450,0002,750,0001,989,886Other Services & Charges ## Total $$$$ ## 2,350,0002,450,0002,750,0001,989,886RICHFIELD HAP ## TOTAL $$$$ 44 Page 54 of 131 ## BUDGET SUMMARY - SECTION 8 ADMINISTRATION FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1150,191$ 150,191$ 94,338$ 94,338$ ## Revenues: ## Intergovernmental Revenues - Section 8 Administration Fee251,804 342,760 300,000 325,000 ## Miscellaneous Revenues: Port In Administrative Fees61,358 52,000 65,000 68,000 Interest Earnings6,810 - - - Miscellaneous Revenues8,074 1,500 1,500 1,500 Total Revenues328,046 396,260 366,500 394,500 ## Expenditures: ## Personal Services258,898 260,580 259,690 269,180 Other Services and Charges125,001 134,180 137,830 153,610 ## Total Expenditures383,899 394,760 397,520 422,790 Excess (Deficiency) of Revenues ## Over Expenditures(55,853) 1,500 (31,020) (28,290) ## Transfers From (To) Other Funds: General Fund- - 31,020 28,290 Net Transfers- - 31,020 28,290 ## FUND BALANCE - DECEMBER 3194,338$ 151,691$ 94,338$ 94,338$ 45 Page 55 of 131 ## SECTION 8 ADMIN ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 Section 8 Admin - 91501 ## BUSINESS UNIT: ## Intergovernmental Revenues 4217251,804342,760300,000325,000Admin Fee$$$$ 342,760300,000325,000251,804Intergovernmental Revenues ## Total $$$$ ## Miscellaneous Revenues 46076,810- - - Investment Earnings$$$$ 463861,35852,00065,00068,000Portability Administration ## 46448,0741,5001,5001,500Other Miscellaneous Revenues 53,50066,50069,50076,242Miscellaneous Revenues ## Total $$$$ ## Other Financing Sources 8051- - 31,02028,290Operating Transfers In$$$$ ## - 31,02028,290- Other Financing Sources ## Total $$$$ ## Section 8 Admin ## TOTAL 396,260397,520422,790328,046$$$$ 46 Page 56 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## SECTION 8 ADMIN ## FUND: ## Community Development ## DEPARTMENT: Section 8 Admin - 91501 ## BUSINESS UNIT: ## Personal Services 6051258,898260,580259,690269,180Interdepartmental Labor$$$$ 260,580259,690269,180258,898Personal Services ## Total $$$$ ## Other Services & Charges 610312,99415,50015,50015,500Professional Services -General$$$$ 62016,9907,2707,27015,840Rents & Leases ## 620224,45024,76024,76026,420Data Processing Rental 6301- 500500500Advertising & Publication 6302- 500500500Communications 6303- 1,8008001,300Professional Development 6305239550500550Subscriptions & Memberships 64019122,5002,5002,500Office Supplies 64021,3142,1002,0002,000Copy Charges 64031,7682,5002,5002,500Postage 64143391,2001,0001,000Other Supplies ## 650175,99575,00080,00085,000Portability Administrative Fee 134,180137,830153,610125,001Other Services & Charges ## Total $$$$ 394,760397,520422,790383,899Section 8 Admin ## TOTAL $$$$ 47 Page 57 of 131 ## BUDGET SUMMARY - AFFORDABLE HOUSING TRUST FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1835,204$ 344,204$ 421,812$ 340,812$ ## Revenues: ## Intergovernmental Revenues - Grants Other- 100,000 150,000 - ## Miscellaneous Revenues - Interest & other26,608 20,000 - - Total Revenues26,608 120,000 150,000 - ## Expenditures: ## Other Services and Charges1,570,000 541,000 71,000 1,000 Capital Outlay170,000 160,000 160,000 240,000 Total Expenditures1,740,000 701,000 231,000 241,000 Excess (Deficiency) of Revenues Over Expenditures(1,713,392) (581,000) (81,000) (241,000) ## Transfers From (To) Other Funds: General Fund- - - - Capital Reserve Fund- - - - Special Revenue Fund1,300,000 500,000 - - ## Net Transfers1,300,000 500,000 - - ## FUND BALANCE - DECEMBER 31421,812$ 263,204$ 340,812$ 99,812$ 48 Page 58 of 131 ## 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. ## 2026 HIGHLIGHTS • Funding is provided for the West Hennepin Affordable Housing Land Trust (WHAHLT) to purchase and remodel two 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. • An award from the State Affordable Housing Trust Fund Matching Grant Program funds four downpayment assistance loans and one of the three land trust homes. ## 2027 FUND GOALS • Provide funding for the purchase and rehabilitation of three homes by the WHAHLT. The homes will be sold to income-qualified homebuyers using the land trust model. (City Council Priority/Outcome 2c) ## FUND EXPENDITURE COMMENT • The budget for the Affordable Housing Trust Fund must also be approved by the City Council. • 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 is expected to occur in 2026. • An additional land trust home is funded with Community Development Block Grant (CDBG) funds in 2026, which is reflected in the New Home Program 49 Page 59 of 131 budget. • 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. • State Temporary Legislation allowing the City and HRA to authorize the spending of unobligated tax increment expires at the end of 2026. This fall, the HRA will consider options to transfer a portion of those unspent funds to the Trust Fund. This transfer would be reflected in the 2027 Revised Budget. 50 Page 60 of 131 ## AFFORDABLE HOUSING TRUST ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## Affordable Housing Trust - 91530 ## BUSINESS UNIT: ## Intergovernmental Revenues 4244- 100,000150,000- Grants Other$$$$ 100,000150,000- - Intergovernmental Revenues ## Total $$$$ ## Miscellaneous Revenues 460726,60820,000- - Investment Earnings$$$$ 20,000- - 26,608Miscellaneous Revenues ## Total $$$$ ## Other Financing Sources ## 80511,300,000500,000- - Operating Transfers In$$$$ 500,000- - 1,300,000Other Financing Sources ## Total $$$$ ## Affordable Housing Trust ## TOTAL 620,000150,000- 1,326,608$$$$ 51 Page 61 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## AFFORDABLE HOUSING TRUST ## FUND: ## Community Development ## DEPARTMENT: ## Affordable Housing Trust - 91530 ## BUSINESS UNIT: ## Other Services & Charges 6103- 1,0001,0001,000Professional Services -General$$$$ ## 65111,570,000540,00070,000- Rehab Loan Program 541,00071,0001,0001,570,000Other Services & Charges ## Total $$$$ ## Capital Outlay 7110170,000160,000160,000240,000Land Purchases$$$$ 160,000160,000240,000170,000Capital Outlay ## Total $$$$ ## 701,000231,000241,0001,740,000Affordable Housing Trust ## TOTAL $$$$ 52 Page 62 of 131 ## BUDGET SUMMARY - LOCAL AFFORDABLE HOUSING AID 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1150,048$ 593,911$ 723,833$ 1,203,536$ ## Revenues: ## Intergovernmental Grant643,863 400,000 699,703 400,000 ## Interest9,922 Total Revenues653,785 400,000 699,703 400,000 ## Expenditures: Other Services and Charges80,000 400,000 220,000 460,000 Total Expenditures80,000 400,000 220,000 460,000 Excess (Deficiency) of Revenues Over Expenditures573,785 - 479,703 (60,000) ## Transfers From (To) Other Funds: General Fund- - Net Transfers- - - - ## FUND BALANCE - DECEMBER 31723,833$ 593,911$ 1,203,536$ 1,143,536$ 53 Page 63 of 131 ## 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. ## 2026 HIGHLIGHTS • One downpayment assistance loan was provided through the First-T ime Homebuyer program supporting homeownership opportunities for income- qualified buyers. Funding for this program was shifted to the Community ## Development Block Grant (CDBG) and the Affordable Housing Trust Fund Matching Grant Program in 2026. • LAHA funded emergency rental assistance for up to 36 income-qualified households. • LAHA funds were set aside for a new rehabilitation loan program(s) developed in 2026 geared towards low-income homeowners. The program(s) was developed with the assistance of a program development grant from the Metropolitan Council and was based on needs and gaps identified in the 2025 evaluation of HRA housing programs. ## 2027 FUND GOALS • Up to eight down payment assistance loans will be provided through the First- time Homebuyer program supporting homeownership opportunities for income- qualified buyers. • LAHA will continue to fund the new rehabilitation loan program(s). • LAHA funds will again provide emergency rental assistance for up to 36 income- qualified households. ## FUND EXPENDITURE COMMENT • Local Affordable Housing Aid is paid in two equal installments in the year based 54 Page 64 of 131 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. The City will receive a total of $699,703.18 in LAHA funds in 2026. • The amount of available LAHA funding will vary depending on the amount of sales tax collected and the number of cost-burdened households in the City. For 2027, we will continue to estimate revenue conservatively as we wait to determine trends. • Funds must be spent within three years. Funds may not be used for administrative expenses, thus staffing costs are covered by the HRA General Fund. 55 Page 65 of 131 ## LOCAL AFFORDABLE HOUSING AID ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LOCAL AFFORDABLE HOUSING - 95100 ## BUSINESS UNIT: ## Miscellaneous Revenues ## 4234643,863400,000699,703400,000Low Income Housing Aid$$$$ 46079,922- - - Investment Earnings 400,000699,703400,000653,785Miscellaneous Revenues ## Total $$$$ ## LOCAL AFFORDABLE HOUSING ## TOTAL 400,000699,703400,000653,785$$$$ 56 Page 66 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LOCAL AFFORDABLE HOUSING AID ## FUND: ## Community Development ## DEPARTMENT: ## LOCAL AFFORDABLE HOUSING - 95100 ## BUSINESS UNIT: ## Other Services & Charges ## 6315100,000100,000Other Contractual Services$$$$ 6504- 15,000- - Kids@Home Payments ## 651180,000385,000120,000360,000Rehab Loan Program 400,000220,000460,00080,000Other Services & Charges ## Total $$$$ ## 400,000220,000460,00080,000LOCAL AFFORDABLE HOUSING ## TOTAL $$$$ 57 Page 67 of 131 ## BUDGET SUMMARY - BRING IT HOME 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1 -$ -$ -$ ## Revenues: ## Miscellaneous Revenues: ## Loan Repayments Interest Earnings- - - Other- 235,920 170,730 423,500 Total Revenues- 235,920 170,730 423,500 ## Expenditures: Personal Services- 32,920 46,890 36,400 Other Services and Charges203,000 123,840 387,100 Total Expenditures- 235,920 170,730 423,500 Excess (Deficiency) of Revenues Over Expenditures- - - - ## Transfers From (To) Other Funds: ## General Fund - - Net Transfers- - - - ## FUND BALANCE - DECEMBER 31 -$ -$ -$ -$ 58 Page 68 of 131 ## Bring It Home ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## Bring It Home - 95150 ## BUSINESS UNIT: ## Intergovernmental Revenues 4244- 235,920170,730423,500Grants Other$$$$ ## 235,920170,730423,500- Intergovernmental Revenues ## Total $$$$ ## Bring It Home ## TOTAL 235,920170,730423,500- $$$$ 59 Page 69 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## Bring It Home ## FUND: ## Community Development ## DEPARTMENT: ## Bring It Home - 95150 ## BUSINESS UNIT: ## Personal Services 6051- 32,92046,89036,400Interdepartmental Labor$$$$ ## 32,92046,89036,400- Personal Services ## Total $$$$ ## Other Services & Charges 6103- 1,5001,5001,500Professional Services -General$$$$ 6205- 8,00016,0001,000Maintenance & Repairs 6301- 750750750Advertising & Publication 6302- 750750750Communications 6303- - 100100Professional Development 6305- - 1,0001,000Subscriptions & Memberships 6401- 1,0007401,000Office Supplies 6402- 500500500Copy Charges 6403- 5001,0001,000Postage 6414- 1,0001,0001,000Other Supplies 6502- 189,000100,000378,000HAP Payments 6513- - 500500Other Charges ## 203,000123,840387,100- Other Services & Charges ## Total $$$$ ## 235,920170,730423,500- Bring It Home ## TOTAL $$$$ 60 Page 70 of 131 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 61 Page 71 of 131 ## CAPIT ## AL PROJECTS FUNDS 62 Page 72 of 131 ## BUDGET SUMMARY - TEMPORARY SPENDING PLAN 20252027 ## AVAILABLE FOR APPROPRIATION ## ActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 14,753,345$ 3,423,345$ 3,616,882$ -$ ## Revenues: ## Miscellaneous Revenues- Investment Earnings163,537 - 13,118 - ## Other Revenues Total Revenues163,537 - 13,118 - ## Expenditures: Other Services and Charges- 30,000 - - ## Capital Outlay Total Expenditures- 30,000 - - Excess (Deficiency) of Revenues ## Over Expenditures163,537 (30,000) 13,118 - ## Transfers From (To) Other Funds: To Special Leg. Affordable Housing Trust Fund(1,300,000) (500,000) (3,630,000) - ## Net Transfers(1,300,000) (500,000) (3,630,000) - ## FUND BALANCE - DECEMBER 313,616,882$ 2,893,345$ -$ -$ 2026 63 Page 73 of 131 ## 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. ## 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. • Economic conditions have continued to be challenging and despite several attempts to assist with the redevelopment of the vacant lot north of the Lakewinds Co-op and the Aster Commons affordable housing development on Portland Avenue, both projects have fallen through. • An update to the HRA TIF Management Plan is underway. This update will explore options to transfer remaining Temporary Spending Plans back to the Housing and Redevelopment Fund or to the Affordable Housing Trust Fund. This update will be discussed with the HRA in the fall. 64 Page 74 of 131 • The current budget reflects the anticipated transfer of all remaining funds back to the Housing and Redevelopment Fund. The 2027 Revised Budget will reflect the discussions later this fall. 65 Page 75 of 131 ## Temp Spending Plan–Urban Vill ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## TEMP SPENDING - URBAN VILLAGE - 92301 ## BUSINESS UNIT: ## Miscellaneous Revenues ## 4607163,537-13,118- Investment Earnings$$$$ -13,118- 163,537Miscellaneous Revenues ## Total $$$$ ## T ## TEMP SPENDING - URBAN VILLAGE TOTAL -13,118-163,537$$$$ 66 Page 76 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## Temp Spending Plan–Urban Vill ## FUND: ## Community Development ## DEPARTMENT: ## TEMP SPENDING - URBAN VILLAGE - 92301 ## BUSINESS UNIT: ## Other Services & Charges ## 6511-30,000-- Rehab Loan Program$$$$ 30,000-- -Other Services & Charges ## Total $$$$ ## Other Financing Uses ## 85111,300,000500,0003,630,000- Operating Transfers Out$$$$ 500,0003,630,000- 1,300,000Other Financing Uses ## Total $$$$ 530,0003,630,000-1,300,000 ## TEMP SPENDING - URBAN VILLAGE ## TOTAL $$$$ 67 Page 77 of 131 ## BUDGET SUMMARY - DEVELOPMENT OPPORTUNITIES 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1 7,192,511$ 7,192,511$ 7,295,798$ 7,227,797$ ## Revenues: ## Intergovernmental Local Grant132,000 1,850,000 1,299,450 - Contributions & Donations- - - - ## Miscellaneous Revenues- Investment Earnings(1,800) - - - Other Revenues68,001 - - - Total Revenues198,201 1,850,000 1,299,450 - ## Expenditures: Other Services and Charges215,859 46,000 176,000 48,000 Capital Outlay(75,545) 1,850,000 1,169,450 - Total Expenditures140,314 1,896,000 1,345,450 48,000 Excess (Deficiency) of Revenues Over Expenditures57,887 (46,000) (46,000) (48,000) ## Transfers From (To) Other Funds: ## Development TIF Funds (Sp Revenue Fund)(68,001) Development TIF Funds (Capital Fund)45,400 46,000 46,000 48,000 Net Transfers45,400 46,000 (22,001) 48,000 ## FUND BALANCE - DECEMBER 31 7,295,798$ 7,192,511$ 7,227,797$ 7,227,797$ 2026 68 Page 78 of 131 ## 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. ## 2026 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. • Provide purchase assistance to new homeowners at Woodlawn Terrace Cooperative. • Administer Tax Base Revitalization A ccount (TBRA) grants from the Metropolitan Council to conduct environmental testing on the Legion site and environmental remediation at 6501-25 Penn Avenue (Penn Station). ## 2027 PROGRAM GOALS • Provide support to redevelopment projects as opportunities arise. (City Council Priority/Outcome 2b) • Support approved projects until TIF resources are received. ## 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. Revenues from these funds are reflected as a “Transfer In.” • The “Transfer Out” in the 2026R budget reflects the transfer of funds received in 69 Page 79 of 131 2025 for the purchase of a remnant parcel along Richfield Parkway. Proceeds of the sale must be deposited in the 77 th Street underpass fund. • The Development Opportunities budget can vary significantly from year to year because it reflects opportunities to invest in the community and/or projects that often are not foreseeable as part of a budget process. 70 Page 80 of 131 ## DEVELOPMENT OPPORTUNITIES ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## DEVELOPMENT OPPORTUNITIES - 92001 ## BUSINESS UNIT: ## Intergovernmental Revenues ## 4290132,0001,850,0001,299,450- Other Local Grants$$$$ 1,850,0001,299,450- 132,000Intergovernmental Revenues ## Total $$$$ ## Miscellaneous Revenues 4607(1,800)- - - Investment Earnings$$$$ 464768,001- - - HRA Land Sales - - - 66,201Miscellaneous Revenues ## Total $$$$ ## Other Financing Sources ## 805145,40046,00046,00048,000Operating Transfers In$$$$ ## 46,00046,00048,00045,400Other Financing Sources ## Total $$$$ ## DEVELOPMENT OPPORTUNITIES ## TOTAL 1,896,0001,345,45048,000243,601$$$$ 71 Page 81 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## DEVELOPMENT OPPORTUNITIES ## FUND: ## Community Development ## DEPARTMENT: ## DEVELOPMENT OPPORTUNITIES - 92001 ## BUSINESS UNIT: ## Other Services & Charges 6103103,68323,00058,00023,000Professional Services -General$$$$ 62052473,0003,0001,500Maintenance & Repairs 630179- - - Advertising & Publication 63107,0735,0005,0003,500Taxes & Licenses ## 631536,02715,00015,00020,000Other Contractual Services ## 651168,750- 95,000- Rehab Loan Program 46,000176,00048,000215,859Other Services & Charges ## Total $$$$ ## Capital Outlay 7110(80,545)- - - Land Purchases$$$$ 7230- 1,850,000850,000- Building Improvements 7310- - 319,450Site Improvements ## 73205,000- Public Utilities 1,850,0001,169,450- (75,545)Capital Outlay ## Total $$$$ ## Other Financing Uses 8511- - 68,001- Operating Transfers Out$$$$ - 68,001- - Other Financing Uses ## Total $$$$ ## 1,896,0001,413,45148,000140,314DEVELOPMENT OPPORTUNITIES ## TOTAL $$$$ 72 Page 82 of 131 ## BUDGET SUMMARY - LAKES AT LYNDALE 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 152,983$ 52,983$ 64,608$ 33,358$ ## Revenues: ## Miscellaneous Revenues: Interest(5,625) - - - Total Revenues(5,625) - - - ## Expenditures: Other Services and Charges- 3,250 3,250 3,250 Capital Outlay- 14,000 28,000 22,000 Total Expenditures- 17,250 31,250 25,250 Excess (Deficiency) of Revenues Over Expenditures(5,625) (17,250) (31,250) (25,250) ## Transfers From (To) Other Funds: Special Revenue Fund- - - - Development TIF Funds (Capital Fund)17,250 17,250 - 25,250 Net Transfers17,250 17,250 - 25,250 ## FUND BALANCE - DECEMBER 3164,608$ 52,983$ 33,358$ 33,358$ 73 Page 83 of 131 ## THE LAKES AT LYNDALE/DOWNTOWN ## MISSION STATEMENT The Lakes at Lyndale area is centered at 66th Street and Lyndale Avenue, radiating west to I-35W and north to Highway 62/Crosstown. In recent years, economic development efforts have broadened the area thought of as Richfield’s downtown area to extend east to the 66 th S treet and Nicollet area as well. Regardless of the official boundaries, the area is called out as a focus for continued investment. ## PROGRAM FOCUS The Lakes at Lyndale 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. The recent Branding and Placemaking Initiative for the area identified several of the same important areas and provides a “playbook” for the future. ## 2026 HIGHLIGHTS • Begin to implement placemaking and branding ideas identified by the 2025 plan. ## 2027 PROGRAM GOALS • Continued implementation of area way-finding and branding. • Continue to pursue additional redevelopment opportunities in the area. ## 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. • $28,000 has been budgeted in 2026R (up from $14,000) to begin implementing the downtown placemaking and branding study and area 74 Page 84 of 131 wayfinding. Another $22,000 has been budgeted for 2027, made possible with a transfer from the Capital Improvement Fund. These funds will be supplemented with the $25,000 awarded to the EDA through Hennepin ## County’s Business District Initiative (BDI) Program. All told, in 2026-2027, $225,000 is programmed for work in the downtown. 75 Page 85 of 131 ## LAKES AT LYNDALE ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LAKES AT LYNDALE - 92900 ## BUSINESS UNIT: ## Miscellaneous Revenues 4607(5,625)- - - Investment Earnings$$$$ - - - (5,625)Miscellaneous Revenues ## Total $$$$ ## Other Financing Sources 805117,25017,250- 25,250Operating Transfers In$$$$ 17,250- 25,25017,250Other Financing Sources ## Total $$$$ ## LAKES AT LYNDALE ## TOTAL 17,250- 25,25011,625$$$$ 76 Page 86 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LAKES AT LYNDALE ## FUND: ## Community Development ## DEPARTMENT: ## LAKES AT LYNDALE - 92900 ## BUSINESS UNIT: ## Other Services & Charges 6103- 3,2503,2503,250Professional Services -General$$$$ ## 3,2503,2503,250- Other Services & Charges ## Total $$$$ ## Capital Outlay 7330- 14,00028,00022,000Streets & Sidewalks$$$$ ## 14,00028,00022,000- Capital Outlay ## Total $$$$ ## 17,25031,25025,250- LAKES AT LYNDALE ## TOTAL $$$$ 77 Page 87 of 131 ## BUDGET SUMMARY - LYNDALE GARDEN CENTER 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1(9,903)$ (9,903)$ (5,303)$ (5,303)$ ## Expenditures: Other Services and Charges- 4,600 4,600 2,500 Total Expenditures- 4,600 4,600 2,500 ## Transfers From (To) Other Funds: General Fund4,600 4,600 4,600 4,600 Net Transfers4,600 4,600 4,600 4,600 ## FUND BALANCE - DECEMBER 31(5,303)$ (9,903)$ (5,303)$ (3,203)$ 78 Page 88 of 131 ## LYNDALE GARDEN CENTER ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LYNDALE GARDEN CENTER - 93300 ## BUSINESS UNIT: ## Other Financing Sources ## 80514,6004,6004,6004,600Operating Transfers In$$$$ ## 4,6004,6004,6004,600Other Financing Sources ## Total $$$$ ## LYNDALE GARDEN CENTER ## TOTAL 4,6004,6004,6004,600$$$$ 79 Page 89 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LYNDALE GARDEN CENTER ## FUND: ## Community Development ## DEPARTMENT: ## LYNDALE GARDEN CENTER - 93300 ## BUSINESS UNIT: ## Other Services & Charges 6103- 4,6004,6002,500Professional Services -General$$$$ ## 4,6004,6002,500- Other Services & Charges ## Total $$$$ ## 4,6004,6002,500- LYNDALE GARDEN CENTER ## TOTAL $$$$ 80 Page 90 of 131 ## BUDGET SUMMARY - CEDAR POINT COMMONS 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1(134,697)$ (132,697)$ (131,697)$ (129,697)$ ## Expenditures: Other Services and Charges- 1,000 1,000 1,000 Total Expenditures- 1,000 1,000 1,000 ## Transfers From (To) Other Funds: Capital Project- - - - General Fund3,000 3,000 3,000 3,000 Net Transfers3,000 3,000 3,000 3,000 ## FUND BALANCE - DECEMBER 31(131,697)$ (130,697)$ (129,697)$ (127,697)$ 81 Page 91 of 131 ## CEDAR POINT COMMONS ## PROGRAM FOCUS The purpose of this program was to promote and facilitate the redevelopment of the Cedar Point Commons area and to administer the tax abatement and other public support needed for the redevelopment. ## PROGRAM EXPENDITURE COMMENT With the tax abatement district now closed (2022), the activity in this fund represents only the repayment of expenses incurred during the life of the district and minor budgeted funds for possible legal expenses. 82 Page 92 of 131 ## CEDAR POINT REDEVELOPMENT AREA ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CEDAR POINT REDEVELOPMENT AREA - 93600 ## BUSINESS UNIT: ## Other Financing Sources ## 80513,0003,0003,0003,000Operating Transfers In$$$$ ## 3,0003,0003,0003,000Other Financing Sources ## Total $$$$ ## CED ## CEDAR POINT REDEVELOPMENT AREA TOTAL 3,0003,0003,0003,000$$$$ 83 Page 93 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CEDAR POINT REDEVELOPMENT AREA ## FUND: ## Community Development ## DEPARTMENT: ## CEDAR POINT REDEVELOPMENT AREA - 93600 ## BUSINESS UNIT: ## Other Services & Charges 6103-1,0001,0001,000Professional Services -General$$$$ 1,0001,0001,000-Other Services & Charges ## Total $$$$ ## 1,0001,0001,000-CECEDAR POINT REDEVELOPMENT AREA TOTAL$$$$ 84 Page 94 of 131 ## BUDGET SUMMARY - CEDAR CORRIDOR 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 1737,566$ 737,566$ 765,676$ 765,676$ ## Revenues: Intergovernmental- - - - ## Local Grant- ## Miscellaneous Revenues: Interest28,268 - - - Other- - - Total Revenues28,268 - - - ## Expenditures: Other Services and Charges2,658 1,000 1,000 1,000 Capital Outlay- - - - Total Expenditures2,658 1,000 1,000 1,000 Excess (Deficiency) of Revenues Over Expenditures25,610 (1,000) (1,000) (1,000) ## Transfers From (To) Other Funds: Development TIF Funds2,500 1,000 1,000 1,000 General Fund- - - - Net Transfers2,500 1,000 1,000 1,000 ## FUND BALANCE - DECEMBER 31765,676$ 737,566$ 765,676$ 765,676$ 85 Page 95 of 131 ## 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 projects. • 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. • 2026R and 2027 Budgets continue funding at a minimal baseline. Reassessment of the Cedar Corridor area will take place as part of the Comprehensive Plan update. 86 Page 96 of 131 ## CEDAR CORRIDOR TIF ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CEDAR CORRIDOR - 93650 ## BUSINESS UNIT: ## Miscellaneous Revenues 460728,268- - - Investment Earnings$$$$ - - - 28,268Miscellaneous Revenues ## Total $$$$ ## Other Financing Sources ## 80512,5001,0001,0001,000Operating Transfers In$$$$ ## 1,0001,0001,0002,500Other Financing Sources ## Total $$$$ ## CEDAR CORRIDOR ## TOTAL 1,0001,0001,00030,768$$$$ 87 Page 97 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CEDAR CORRIDOR TIF ## FUND: ## Community Development ## DEPARTMENT: ## CEDAR CORRIDOR - 93650 ## BUSINESS UNIT: ## Other Services & Charges 61032,5731,0001,0001,000Professional Services -General$$$$ 630185- - - Advertising & Publication 1,0001,0001,0002,658Other Services & Charges ## Total $$$$ ## 1,0001,0001,0002,658CEDAR CORRIDOR ## TOTAL $$$$ 88 Page 98 of 131 ## BUDGET SUMMARY- PENN CORRIDOR 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## FUND BALANCE - JANUARY 189,265$ 88,465$ 87,968$ 90,968$ ## Revenues: ## Intergovernmental Local Grants- - - - Interest- - - - Total Revenues- - - - ## Expenditures: Other Services and Charges1,297 10,800 5,800 5,800 Capital Outlay- - - - Total Expenditures1,297 10,800 5,800 5,800 Excess (Deficiency) of Revenues Over Expenditures(1,297) (10,800) (5,800) (5,800) ## Transfers From (To) Other Funds: General Fund- - - Development TIF Funds (Capital)- - 8,800 5,800 Net Transfers- - 8,800 5,800 ## FUND BALANCE - DECEMBER 3187,968$ 77,665$ 90,968$ 90,968$ 89 Page 99 of 131 ## 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 and support local businesses. ## 2026 HIGHLIGHTS • The Penn Station affordable housing project is expected to be completed in late 2026 / early 2027. • Staff participated in many internal work sessions and public meetings related to the reconstruction of Penn Avenue; bringing a business and development perspective to the transportation project. ## 2027 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 Comprehensive 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 • Maintaining baseline funding for 2026R and 2027. Expenditures related to the Penn Station project are primarily grants reimbursements and are seen in the Development Opportunities budget. 90 Page 100 of 131 ## PENN CORRIDOR ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## PENN CORRIDOR - 93750 ## BUSINESS UNIT: ## Other Financing Sources 8051- - 8,8005,800Operating Transfers In$$$$ ## - 8,8005,800- Other Financing Sources ## Total $$$$ ## PENN CORRIDOR ## TOTAL - 8,8005,800- $$$$ 91 Page 101 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## PENN CORRIDOR ## FUND: ## Community Development ## DEPARTMENT: ## PENN CORRIDOR - 93750 ## BUSINESS UNIT: ## Other Services & Charges 6103- 10,0005,0005,000Professional Services -General$$$$ ## 63151,297800800800Other Contractual Services 10,8005,8005,8001,297Other Services & Charges ## Total $$$$ ## 10,8005,8005,8001,297PENN CORRIDOR ## TOTAL $$$$ 92 Page 102 of 131 ## BUDGET SUMMARY - HOUSING & REDEVELOPMENT FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActual ## BudgetRevisedBudget ## FUND BALANCE - JANUARY 14,299,079$ 4,378,499$ 4,033,243$ 7,866,863$ ## Revenues: ## Miscellaneous Revenues: Interest95,472 20,000 80,000 80,000 Sale of Property- - 81,500 80,000 Loan Repayment Revenue- 15,000 15,000 15,000 Total Revenues95,472 35,000 176,500 175,000 ## Expenditures: Other Services and Charges- 50,000 50,000 50,000 ## Capital Outlay 946,959 155,000 185,600 365,200 Total Expenditures946,959 205,000 235,600 415,200 Excess (Deficiency) of Revenues Over Expenditures(851,487) (170,000) (59,100) (240,200) ## Transfers From (To) Other Funds: Interchange West - 98070178,792 - 2,248,770 - Urban Village - 98120154,107 - 861,640 - City Bella - 98150105,893 101,370 635,450 105,890 Lyndale Gardens - 9813053,838 53,160 53,840 53,840 ## TIF 2014-1 - 9816529,260 28,530 29,260 29,260 Cedar Corridor - 9816063,761 49,330 63,760 63,760 - - - - - - Net Transfers585,651 232,390 3,892,720 252,750 ## FUND BALANCE - DECEMBER 314,033,243$ 4,440,889$ 7,866,863$ 7,879,413$ 93 Page 103 of 131 ## 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, four redevelopment districts contribute to the Housing & Redevelopment Fund: 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. ## 2026 HIGHLIGHTS • Funds were made available for up to one credit and one purchase of a substandard property through the Richfield Rediscovered program. ## 2027 FUND GOALS • Use budgeted funds to support the purchase of one substandard property for the construction of one market-rate home and one redevelopment credit under the Richfield Rediscovered Program and use funds to support the purchase of one substandard property for the construction of one affordable home through the New Home 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 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 94 Page 104 of 131 throughout the community. • Revenues drop significantly for 2026 and going forward with the decertification of the Interchange West and Urban Village TIF Districts at the end of 2025. The full tax capacity of these projects will be captured by all taxing jurisdictions going forward. • This revenue drop is masked in 2026R by the transfer of pooled TIF back from the Temporary Spending Plan (expiring). • 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. 95 Page 105 of 131 ## HOUSING FUND GRAMERCY ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Community Development ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## Housing Fund Gramercy - 98500 ## BUSINESS UNIT: ## Miscellaneous Revenues 460795,47220,00080,00080,000Investment Earnings$$$$ ## 464781,50080,000HRA Land Sales 4648- 15,00015,00015,000Loan Repayment Revenue 35,000176,500175,00095,472Miscellaneous Revenues ## Total $$$$ ## Other Financing Sources ## 8051585,651232,3903,892,720252,750Operating Transfers In$$$$ ## 232,3903,892,720252,750585,651Other Financing Sources ## Total $$$$ ## Housing Fund Gramercy ## TOTAL 267,3904,069,220427,750681,123$$$$ 96 Page 106 of 131 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## HOUSING FUND GRAMERCY ## FUND: ## Community Development ## DEPARTMENT: ## Housing Fund Gramercy - 98500 ## BUSINESS UNIT: ## Other Services & Charges 6511- 50,00050,00050,000Rehab Loan Program$$$$ ## 50,00050,00050,000- Other Services & Charges ## Total $$$$ ## Capital Outlay 7110601,959155,000159,100318,200Land Purchases$$$$ 731026,50047,000Site Improvements 7320345,000- - - Public Utilities 155,000185,600365,200946,959Capital Outlay ## Total $$$$ ## 205,000235,600415,200946,959Housing Fund Gramercy ## TOTAL $$$$ 97 Page 107 of 131 ## RES ## OLUTIONS 98 Page 108 of 131 ## HRA RESOLUTION NO. ## RESOLUTION APPROVING PROPOSED 2027 HOUSING AND REDEVELOPMENT ## AUTHORITY BUDGET AND CERTIFYING THE 2027 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 2027 in the amount of $610,231 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 2026, and as the same are more fully detailed in the Executive Director’s official copy of the budget for the year 2027, in the amount of $835,230 is hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2026, payable in 2027 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 17th day of August, 2026. ## Gordon Hanson, Chair ## ATTEST: ## John Young, Secretary 99 Page 109 of 131 ## RESOLUTION NO. ## RESOLUTION AUTHORIZING REVISION OF THE 2026 BUDGET OF THE ## HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. appropriated funds for personal services and other expenses and capital outlay for the Housing and Redevelopment Authority for the year 2026 and WHEREAS, The Executive Director has requested a revision of the 2026 budget as detailed in the 2027 budget document. ## NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota as follows: Section 1. That the 2026 appropriation for the Housing and Redevelopment Authority General Fund is revised as follows: $160,788 decrease Section 2. Estimated 2026 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 2027 budget document, are hereby revised as follows: $78,698 decrease Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17 th day of August, 2026. ## Gordon Hanson, Chair ## ATTEST: ## John Young, Secretary 100 Page 110 of 131 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 101 Page 111 of 131 ## HRA RESOLUTION NO. ## RESOLUTION APPROVING PROPOSED 2027 HOUSING AND REDEVELOPMENT ## AUTHORITY BUDGET AND CERTIFYING THE 2027 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 2027 in the amount of $610,231 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 2026, and as the same are more fully detailed in the Executive Director’s official copy of the budget for the year 2027, in the amount of $835,230 is hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2026, payable in 2027 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 17th day of August, 2026. ## Gordon Hanson, Chair ## ATTEST: ## John Young, Secretary Page 112 of 131 ## RESOLUTION NO. ## RESOLUTION AUTHORIZING REVISION OF THE 2026 BUDGET OF THE ## HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No.1513 appropriated funds for personal services and other expenses and capital outlay for the Housing and Redevelopment Authority for the year 2026 and WHEREAS, The Executive Director has requested a revision of the 2026 budget as detailed in the 2027 budget document. ## NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota as follows: Section 1. That the 2026 appropriation for the Housing and Redevelopment Authority General Fund is revised as follows: $160,788 decrease Section 2. Estimated 2026 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 2027 budget document, are hereby revised as follows: $78,698 decrease Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17 th day of August, 2026. ## Gordon Hanson, Chair ## ATTEST: ## John Young, Secretary Page 113 of 131 ## Housing and Redevelopment Authority Meeting 8/17/2026 ## Agenda Section: Resolutions Agenda Item: 10.c. ## Report Prepared By: ## Julie Urban, Assistant Community Development Director ## Department Director: ## Melissa Poehlman, Community Development Director ## Item for Consideration: Consideration of an update to the Inclusionary Housing Policy. ## EXECUTIVE SUMMARY In 2019, the City, Housing and Redevelopment Authority (HRA), and Economic Development Authority (EDA) adopted an Inclusionary Housing Policy (IHP) to encourage the inclusion of affordable housing in development proposals. Under the IHP Policy, housing development projects that receive financial assistance from the City, HRA, or EDA must provide 10 - 20% affordable units, the exact number depending on the level of affordability. The IHP also requires a higher level of accessible units than required by code, a range of bedroom sizes, non-discrimination of rental subsidies, offers the option of providing a "payment-in-lieu" instead of constructing units, and provides for some optional incentives. In June, the City adopted a 4d (1) Tax Classification Policy (4d Policy), following several work sessions where affordable housing priorities were considered. In light of those discussions and the resulting 4d Policy, staff undertook a review of the City's IHP and are proposing several updates. The updates and basis for the changes are as follows: • Increase minimum project size from 5 units to 15 units. The City is attempting to encourage small, infill projects. These are financially challenging and adding affordability makes them even more challenging. Ten to 20 units are the minimums typically required by our peer cities. • Add a provision that requires multi-family, owner-occupied projects to include a means to ensure ongoing affordability for a minimum of 15 years. A financial investment should require that the property remain affordable for some length of time as is the HRA practice with its single-family affordable ownership programs. • Eliminate the "payment in lieu" option for accessible units. Given the shortage of accessible units in the community, it's important to encourage construction of these units in new developments whenever possible. • Update the language that any use of the 4d (1) tax classification be consistent with the recently adopted 4d Policy. • Update the language relating to other optional incentives to be consistent with current ordinances. ## RECOMMENDED ACTION Page 114 of 131 By Motion: Adopt a resolution approving an update to the City's Inclusionary Housing Policy. ## HISTORICAL CONTEXT • From 2000 to 2019, the HRA followed a practice of requiring some measure of affordability or payment-in-lieu from all new developments receiving HRA financial assistance. In 2019, the City/HRA/EDA formally adopted an Inclusionary Housing Policy. In 2021, the City/HRA/EDA adopted a revised policy that added requirements relating to ranges of affordability, bedroom sizes and added accessibility requirements. • The IHP has resulted in the construction of the following number of affordable units: ## Affordability ## Level Studio 1BR 2BR 3BR 4BR TOTAL ## 30% AMI 0 8 8 0 0 16 ## 50% AMI 42 20 12 4 2 80 ## 60% AMI 0 0 12 4 2 18 ## TOTAL 42 28 32 8 4 114 Note: Penn Station is the only development that has occurred since the 2021 revisions have been in effect. • In June 2026, the City Council adopted a 4d (1) Tax Classification Policy. The HRA/EDA ratified the 4d (1) Tax Classification Policy in July 2026. ## EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The IHP helps to further the Strategic Plan outcome of maintaining Richfield as an affordable place to live. Providing affordable housing options also helps to further equity inclusion by providing housing for people with low incomes and people with disabilities. ## POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Several policies govern the HRA's use of financial assistance including the Inclusionary Housing Policy, 4d (1) Tax Classification Policy, and Affordable Housing Trust Fund priorities. ## CRITICAL TIMING ISSUES • The EDA will consider the update to the IHP on August 17 and the City Council on September 8. • Updates to the Affordable Housing Trust Fund priorities is scheduled on the HRA agenda for August 17 and the Council agenda on September 8. ## FINANCIAL IMPACT • Requiring affordability in a development project comes at a cost. Under current economic conditions, it can be challenging for a development to be able to Page 115 of 131 provide affordability without financial assistance from the City and other levels of government. All-affordable developments with access to tax-exempt bonds and/or federal tax credit equity are the projects most able to provide affordability at this time. • The option to contribute pooled tax increment funds to the HRA's Housing and Redevelopment Fund (HRF) in lieu of actual construction of the units remains in the IHP. The HRA uses the HRF to fund a variety of housing and redevelopment- related activities. ## LEGAL CONSIDERATIONS The City's IHP is only applicable when financial assistance is provided, giving the City/HRA/EDA broad discretion in its policy. ## ALTERNATIVE RECOMMENDATION(S) 1.Request additional information and defer consideration to the September meeting. 2. Update the Inclusionary Housing Policy with changes. 3. Decide not to update the Inclusionary Housing Policy. ## ATTACHMENTS ## 1. 081726 Resolution IHP Revisions ## 2. DRAFT Inclusionary Hsg Policy revisions 2026 Page 116 of 131 ## RESOLUTION NO. ## RESOLUTION APPROVING THE ADOPTION OF UPDATES TO ## INCLUSIONARY HOUSING POLICY WHEREAS, in 2019 the City of Richfield (the “City”), the Housing and Redevelopment Authority in and for the City of Richfield (the “HRA”), and the Richfield ## Economic Development Authority (the “EDA”) adopted an Inclusionary Housing Policy (the “IHP”) to encourage the inclusion of affordable housing in development proposals; and WHEREAS, the Policy requires that a certain amount of affordable units be constructed whenever a Housing Development Project (“Project”) receives financial assistance from the City, HRA or EDA or a payment be made to the HRA’s Housing and ## Redevelopment Fund; and WHEREAS, in 2021, the City, HRA, and EDA adopted revisions to the policy that provided for a range of affordability, require a mix of bedroom sizes, and requires accessible units; and WHEREAS, in 2026, the HRA reviewed the IHP and determined there is a need to update the IHP Policy to bring it into consistency with current priorities, policies, and ordinances; and WHEREAS, the City Council and EDA will also review the IHP on August 17 and September 8; and ## NOW, THEREFORE, BE IT RESOLVED 1. The updates to the Inclusionary Housing Policy are hereby approved and adopted. 2. HRA staff is authorized to carry out the policy following approval by the EDA and City Council. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of August, 2026. ## Gordon Hanson, Chair ## ATTEST: ## John Young, Secretary Page 117 of 131 ## City of Richfield ## Richfield Housing and Redevelopment Authority ## Richfield Economic Development Authority ## Inclusionary Affordable Housing Policy The City of Richfield, Richfield Housing and Redevelopment Authority, and Richfield Economic Development Authority are committed to building a community that is welcoming and affordable to a diverse population of individuals and families at all stages of their lives. As such, we hereby establish the following policy for the inclusion of affordable housing in development proposals. ## Requirements 1. Housing Development Projects containing the construction of at least 5 15 new units that ## receive Financial Assistance from the HRA, EDA or City: a. Must contain a percentage of units that are affordable at one or more of the following levels over a period of fifteen years or the duration of the subsidy (whichever is longer): i. ## Affordability Level % of Units ## RENTAL 60% of Area Median Income (AMI) 20% 50% of AMI 15% 30% of AMI 10% ## OWNER-OCCUPIED 115% of AMI 20% 100% of AMI 15% 80% of AMI 10% ii. A combination of affordability levels may be considered (e.g., 10% at 60% AMI and 5% at 30% AMI). iii. A mix of bedroom sizes similar to that of the overall building must be provided. A reduction in the overall number of affordable units may be considered if a greater number of 2- and/or 3- bedroom units are provided. iv. Owner-occupied projects must include a means to ensure ongoing affordability for a minimum of 15 years. and b. Must contain a minimum of 5% rental units that are Type A, per ANSI A117.1 Section 1003 of the 2020 Minnesota Accessibility Code, with a roll-in shower or 3% of rental units that are Accessible, per ANSI A117.1 Section 1002 of the 2020 Minnesota Accessibility Code, with a roll-in shower. Grab bars must also be installed in Type A units, or the developer and any future owner must agree to pay for installation upon request. A combination of Accessible and Type A units may also be considered. Units beyond those required by the Building Code must meet the affordability and mix of bedroom sizes as required in 1a. Page 118 of 131 ## Or c. Must contribute to the Richfield Housing and Redevelopment Fund i. 15% of the “net present value” of Tax Increment generated by the project (or 15% of the net present value of other types of assistance) must be pledged to the Richfield Housing and Redevelopment Fund over a period of fifteen years or the duration of the subsidy (whichever is longer), or ii. A pro-rata combination of the above (i.e. 10% affordable units and a 7.5% contribution) may be considered, and iii. The accessibility component of 1b must still be met (the units may be market- rate) or an additional up-front cash payment of $5,000 per required unit made to the City’s Affordable Housing Trust Fund. and d. Must agree to provide 90 days’ advance notice to the public body providing funding of any sale of the property, d. and; e. Must agree to not discriminate against households utilizing Housing Choice Vouchers (Section 8) or other forms of rental assistance., and e.f. If funding is provided through a Housing Tax Increment District, must comply with all affordability requirements provided in Minnesota Statutes. 2. Development Projects that receive Financial Assistance from HRA, EDA or City and which result in the loss of affordable housing: a. Affordable housing units eliminated by the project must be replaced on-site or at another location in Richfield by the developer at similar affordability levels, or; b. 5-15% (depending on the magnitude of the loss of affordable housing) of the “net present value” of the Financial Assistance provided must be pledged to the Richfield Housing and Redevelopment Fund over a period of fifteen years or the duration of the subsidy (whichever is longer). ## Incentives 3. Housing Development Projects which include affordable units (as outlined in 1a above) are eligible to apply to the City for the following considerations regardless of whether or not they ## receive Public Financial Assistance: ## i. Building Permit Fee Reductions e.g., ; ii.i. 4d(1) Property Tax Classification Reduction (rental projects) if consistent with the City’s 4d(1) tax classification policy; iii.ii. Consideration of code flexibility (e.g., smaller setbacks, excessive impervious surface,number of units, parking, building coverage, etc.) in planned unit developments; iv.iii. A housing unit density bonus of 5-up to 1525% (e.g., a project in an area that allows 8-24 units/acre could add an additional 1-4 units/acre and remain in compliance) in planned units developments. ## Exceptions Page 119 of 131 4. With regards to “scattered-site single family housing development,” at least 20% of the units newly constructed or rehabilitated and converted to long-term affordability in any three-year period must meet the proscribed affordability requirements. Page 120 of 131 5. With regards to projects between 5 15 and 19 units, the Community Development Director may grant exceptions to the policy as circumstances warrant. The City Council or Board of Commissioners of the Housing and Redevelopment Authority or Economic Development Authority may vary the application of this policy as circumstances warrant or as a developer identifies alternative means of addressing the spirit and intent of this policy, with the adoption of findings of the reasons for doing so.6. This policy expresses the priorities and purposes of the City’s efforts to encourage the construction of affordable housing. Like any policy, it cannot anticipate all circumstances or unique situations and is thus subject to adjustment and modification. The City Council or Board of Commissioners of the Housing and Redevelopment Authority or Economic Development Authority may vary the application of this policy as circumstances warrant with the adoption of findings of the reasons for doing so. The City Council must provide final approval of any exceptions to this policy. 6. Adopted as revised: This day of , 2021 2026, by the Richfield City Council. ## Mayor City Manager This day of , 2021 2026, by the Richfield Housing and Redevelopment Authority. ## Chair Secretary This day of , 2021 2026, by the Richfield Economic Development Authority. ## President Secretary Page 121 of 131 ## Housing and Redevelopment Authority Meeting 8/17/2026 ## Agenda Section: Other Business Agenda Item: 11.a. ## Report Prepared By: ## Julie Urban, Assistant Community Development Director ## Department Director: ## Melissa Poehlman, Community Development Director ## Item for Consideration: Consideration of updates to the City's Affordable Housing Trust Fund Priorities. ## EXECUTIVE SUMMARY In 2020, the City established an Affordable Housing Trust Fund to preserve and create affordable housing opportunities for households with the lowest incomes. Funds from the Trust Fund have been allocated to various Housing and Redevelopment Authority (HRA) programs such as the First-time Homebuyer and New Home Programs through the budget process. Funds can also be made available to developers to assist in the construction, preservation, and rehabilitation of affordable housing. The City and HRA adopted Priorities and Procedures in 2022 to guide the use of the Trust Fund when reviewing requests from developers. In June, the City adopted a 4d (1) tax classification policy (4d Policy) following several work sessions where affordable housing priorities were considered. In light of those discussions and the resulting 4d Policy, staff undertook a review of the Trust Fund Priorities and Procedures and are proposing to establish two priority levels for the funds: • First level: preservation and rehabilitation of Naturally Occurring Affordable Housing (NOAH), housing with larger bedrooms, accessible housing, and housing where current rental subsidy households live. • Second level: housing affordable at 30% Area Median Income, housing with supportive services, and highly energy-efficient projects. The proposed updates also add language specific to the consideration of 4d (1) tax classification as it relates to a financial award from the Trust Fund. The current 4d Policy requires a Declaration of Restrictive Covenants be filed against any property receiving Trust Fund assistance. Any Declaration that restricts both income and rents, however, will automatically qualify the property for the 4d (1) tax classification. The proposed updates clarify that any request for funds will involve a review of the impact of any 4d (1) tax classification and that any restrictions that trigger the 4d (1) tax classification will be reviewed in light of the 4d Policy and be subject to Council approval. ## RECOMMENDED ACTION By Motion: Approve updates to the City's Affordable Housing Trust Fund Priorities and Procedures. Page 122 of 131 ## HISTORICAL CONTEXT • The Affordable Housing Trust Fund was created in 2020. • In June 2026, the City Council approved a 4d Policy. The 4d Policy was ratified by the HRA in July 2026. ## EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Trust Fund and its priorities further the Strategic Plan outcome to maintain Richfield as an affordable place to live. They also further equity and inclusion by encouraging the creation, preservation, and rehabilitation of affordable housing. ## POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • Minnesota State Statutes 462C.16 governs the establishment and use of local Affordable Housing Trust Funds. • While not a formal policy, the Trust Fund Priorities and Procedures provide staff and the HRA with guidance for responding to requests for financial assistance from the Trust Fund. ## CRITICAL TIMING ISSUES The City Council will review the Priorities and Procedures on September 8. The HRA as the administrator of the Trust Fund is considering the changes first, which will provide guidance to the Council. ## FINANCIAL IMPACT There is approximately $90,000 of uncommitted funds in the Trust Fund. Before the end of the year, the HRA will consider the potential transfer of additional funding from the Spending Plan into the Trust Fund. ## LEGAL CONSIDERATIONS • The City has broad discretion in establishing priorities and procedures governing the granting and lending of funds from the Trust Fund as long as the requirements of State Statute are met. • The Priorities and Procedures are consistent with the City's Trust Fund ordinance. ## ALTERNATIVE RECOMMENDATION(S) 1. Request additional information and defer consideration to the September meeting. 2. Update the Trust Fund Priorities and Procedures with changes. 3. Decide not to update the Priorities and Procedures. ## ATTACHMENTS ## 1. Richfield Affordable Housing Trust Fund Priorities and Procedures REVISIONS 2026 2. 05-26 Bill No. 2020-6 Page 123 of 131 Adopted: 12/13/22; Revised 9/8/26 ## Richfield Affordable Housing Trust Fund ## Priorities and Procedures The City of Richfield established an Affordable Housing Trust Fund in 2020 to preserve and create affordable housing opportunities for households with the lowest incomes. Funds are available through the City’s Trust Fund on a rolling basis to assist developers in the construction, preservation, and rehabilitation of affordable housing. ## Priorities A. Multi-family projects that address the following city priorities will be considered for funding:  Preservation and rehabilitation of naturally occurring affordable housing (NOAH)  Housing with three- and four- bedroom units  Housing with accessible units  Housing with resident rental subsidieswith current residents who hold rental subsidies administered by the Richfield HRA B. Multi-family projects that address these additional city priorities may also be considered for funding (with priority given to those in Group A):  Housing with units affordable at 30% of the Area Median Income  Housing with accessible units  Housing with supportive services  Projects that improve energy-efficiency  Housing with resident rental subsidies  Preservation and rehabilitation of naturally occurring affordable housing (NOAH) Projects that also improve energy-efficiency and/or use Trust Fund money to leverage other funding will be strongly considered.  Trust Fund awards are made only to projects that exceed the minimum requirements of the City’s Inclusionary Housing Policy and the statutory requirements for a Housing Tax Increment Financing (TIF) District, if applicable. ## Forms of Assistance and Eligible Activities Funding may be provided in the form of grants, loans, and/or loan guarantees for the development, rehabilitation or financing of housing and/or to serve as a match for other funds from federal, state, or private resources.  Funds are not available for rental assistance. ## Process Page 124 of 131 Adopted: 12/13/22; Revised 9/8/26 Projects seeking a Trust Fund award must submit an Application for Financial Assistance, or if also seeking TIF, complete the Trust Fund section on the TIF Application. A $500 application fee is required at the time of the application submittal. The Trust Fund is administered by the City’s Housing and Redevelopment Authority (HRA). HRA staff, along with the City’s financial consultants, will review the application for consistency with the City’s priorities, viability of the project, demonstrated need for funding, and reasonableness of the request. There is no minimum or maximum award amount; however, the amount may be limited by the amount of funds available. Projects will be required to cover the costs of the city’s financial and legal consultants, as well as up to $2,000 in staff costs. ## Affordability Term Projects receiving an award from the Trust Fund must agree to a minimum of 25 years of affordability. ## Compliance A Declaration of Restrictive Covenants will may be filed against the property to ensure ongoing compliance. Applicants will may be required to demonstrate that they have the capacity to conduct income compliance and collect and maintain appropriate documentation and/or to provide a rent roll indicating compliance with any rent limits. Funding recipients may be required to submit Aa certificate of compliance must be submitted on an annual basis. Property managers who are unfamiliar with income compliance will be required to take appropriate training. 4d (1) Tax Classification Local government restrictions that allow a project to qualify for the 4d (1) tax classification under Minnesota Statutes, section 273.13, subd. 25 will not be automatically approved with a Trust Fund award. The impact of the reduced tax rate will be analyzed by the HRA’s financial consultant and reviewed by HRA staff for consistency with the City’s 4d (1) Tax Classification Policy. Section 8 During the period of affordability, Trust Fund award recipients shall not adopt any policies specifically prohibiting or excluding the renting of units to tenants holding rental vouchers or similar forms of rental assistance. This policy is intended to set forth the general priorities and guidelines regarding the use of the Affordable Housing Trust Fund. The City Council and HRA may modify the terms at any time. Page 125 of 131 Adopted: 12/13/22; Revised 9/8/26 ## Questions: Contact Julie Urban, Assistant Community Development Director, at 612-861-9777 or jurban@richfieldmn.gov. Page 126 of 131 ## BILLNO. 2020-6 ## TRANSITORYORDINANCENO. 19.14 ## ANORDINANCEESTABLISHINGANAFFORDABLEHOUSINGTRUSTFUND ## THECITYOFRICHFIELDDOESORDAIN: Section1. Preamble. 1.01. InordertoprovidetheCityofRichfield (the "City") withadditionaltoolstosupport therehabilitationandpreservationofexistingaffordablehousingwithintheCity, promotethedevelopmentofadditionalaffordablehousingwithintheCity, andassist individualswithrentalanddownpaymentassistance, theCityhasdeterminedtocreate anAffordableHousingTrustFund. Section2. Definitions. 2.01. ## Personsofverylowincomemeansfamiliesandindividualswhoseincomesdonot exceed50percentofareamedianincome, asmedianincomewasmostrecently determinedbytheUnitedStatesDepartmentofHousingandUrbandevelopmentforthe ## Minneapolis -St. Paul- Bloomington, MinnesotaMetropolitanStatisticalArea, asadjusted forsmallerandlargerfamilies. 2.02. ## Personsoflowincomemeansfamiliesandindividualswhoseincomesdonot exceed80percentoftheareamedianincome, asmedianincomewasmostrecently determinedbytheUnitedStatesDepartmentofHousingandUrbandevelopmentforthe ## Minneapolis -St. Paul- Bloomington, MinnesotaMetropolitanStatisticalArea, asadjusted forsmallerandlargerfamilies. 2.03. ## Personsofmoderateincomemeansfamiliesandindividualswhoseincomes exceed80percent, butdonotexceed120percent, ofareamedianincome, asmedian incomewasmostrecentlydeterminedbytheUnitedStatesDepartmentofHousingand UrbandevelopmentfortheMinneapolis -St. ## Paul -Bloomington, MinnesotaMetropolitan StatisticalArea, asadjustedforsmallerandlargerfamilies. Section3. EstablishingAffordableHousingTrustFund. 3.01. ## PursuanttotheauthoritygrantedtotheCityunderMinnesotaStatutesSection ## 462C.16, anaffordablehousingtrustfundisestablishedforthefollowingpurposes: provideloansandgrantstofor -profitandnon-profithousingdevelopersfortheacquisition andcapitalandsoftcostsnecessaryforthecreationofnewaffordablerentalandowner - occupiedhousing, fortherehabilitationandpreservationofexistingmulti -familyresidential rentalhousingincludingnaturallyoccurringaffordablehousingandrentalassistanceand homeownershipassistancetopersonsofverylow, low, andmoderateincome. BillNo. 2020-6 Page 127 of 131 Section4. FundingSources. 4.01. ## TheAffordableHousingTrustFundshallbefundedbyanannualbudgeted allocationoffundsfromtheHousingandRedevelopmentAuthorityinandfortheCityof Richfield (HRA) levyandfundsfromtheRichfieldEconomicDevelopmentAuthority (EDA) levy, asapprovedbytheCityCouncil. Othersourcesoffundingmayinclude, butarenot limitedto: a) ## Privatecashdonationsfromindividualsand corporations designatedfortheAffordableHousingTrustFund. b) ## Paymentsinlieuofparticipationincurrentorfutureaffordablehousing programs. c) Matchingfundsfroma federalorstateaffordablehousingtrustfund; or a stateprogramdesignatedtofundanaffordablehousingtrustfund. d) PrincipalandinterestfromAffordable ## Housing ## TrustFundloan repaymentsandallotherincomefromAffordableHousingTrustFund activities. e) Thesaleofrealandpersonalproperty. f) Localgovernmentappropriations, developmentfeesandother fundsasdesignatedfromtimetotimebytheCityCouncil. g) TaxIncrementFinance (TIF) pooledfunds. Section5. PurposeofAffordableHousingTrustFund. 5.01. ## TheCitymayusemoneyfromtheAffordableHousingTrustFundtoassist proposedprojectsorprogramstodeveloporpreserveaffordablehousingforpersonsof verylow, low, andmoderateincometoinclude: a) ## Makingloansatinterestratesbeloworatmarketratesinorderto strengthenthefinancialfeasibilityofproposedprojects; b) ## Guaranteeingofloans; c) ## Providinggapfinancingforaffordablehousingdevelopments; d) Financingtheacquisition, demolition, anddispositionofpropertyfor affordablehousingprojects; e) ## Financingconstructionofpublicimprovementsandutilitiestoaid proposedaffordableresidentialdevelopments; 2 BillNo. 2020-6 Page 128 of 131 f) Financingtherehabilitation, remodeling, ornewconstructionof affordablehousing; g) Tenantandprojectbasedrentalassistance; h) ## Fundingforacquisitionandrehabilitationinconjunctionwithorrelatedto affordablehousingprojects; i) ## Funding tofacilitateaffordable homeownership opportunities includingdownpaymentassistance, secondmortgages, closing costs, etc.; j) Administrativecostsassociatedwithaffordablehousingprogramsthatdo notexceedtenpercentofthebalancefund; k) ## Interimfinancingofpubliccostsforaffordablehousingprojectsin anticipationofa permanentfinancingsource (i. e. constructionfinancing, bondsale, etc.); and 1) OtherusesaspermittedbylawandapprovedbytheCityCouncil. Section6. AdministrationofAffordableHousingTrustFund. 6.01. ## TheHousingandRedevelopmentAuthorityinandfortheCityofRichfield, Minnesota ( the " Authority") shalladministertheAffordableHousingTrustFundon behalfoftheCity. 6.02 ## TheAuthorityshalldeterminethetermsandconditionsofrepaymentofloansand grantsfromtheAffordableHousingTrustFundincludingtheappropriatesecurityand interest, if any, shouldrepaymentberequired. Interestonloansandgrantsshallbeas establishedbytheAuthorityfromtimetotimeoratthetimeofapprovalofaspecific projectorprogram. 6.03. ## TheAuthorityshallreportannuallytotheCityontheuseofthefundsinthe AffordableHousingTrustFund, includingthenumberofloansandgrantsmade, the numberandtypesofresidentialunitsassisted, andthenumberofhouseholdsforwhich rentalassistanceordownpaymentassistancewereprovided. TheCityshallpostthe annualreportonitsWebsite. 6.04. ## TheexpendituresoffundsfromtheAffordableHousingTrustFundtoprovide assistanceforpersonsofmoderateincomemustbeapprovedbya supermajorityofthe CityCouncil. Section7. CouncilAction. 3 BillNo. 2020-6 Page 129 of 131 7.01. ## TheCityCounciloftheCityofRichfieldherebyordainstheimplementationofthe AffordableHousingTrustFund. 7.02. ThisOrdinanceshallbeeffectiveonthe30t" dayfollowingthepublicationofa summaryofthisordinanceapprovedbytheCityCounciloftheCityofRichfieldinthe officialnewspaperoftheCityofRichfield. 7.03. ## ThesummaryofthisOrdinancewasreviewedandapprovedbytheCityCouncil oftheCityofRichfieldandtheCityCouncilfindsthatthesummaryofthisOrdinance clearlyinformsthepublicoftheintentandeffectofthisOrdinance. ## Section8. ThisOrdinancewillbeeffectiveinaccordancewithSection3.09of theCityCharter. ## AdoptedbytheCityCouncilof theCityof Richfield, Minnesotaonthis26t" dayof May, 2020. ## K" c ## RPM j_ ## AV ## MariaReganGonzalez, Mayor ## ATTEST: ## ElizabethVanHoose, CityClerk 4 BillNo. 2020-6 Page 130 of 131 ## AFFIDAVIT ## OFPUBLICATION ## STATE ## OF ## MINNESOTA ## COUNTY ## OFHENNEPIN ## CITYOF ## RICHFIELD ## SUMMARYPUBLICATION ## BILLNO.2020-6 ## TRANSITORY ## ORDINANCENO. 19.14 ## ANORDINANCE ## ESTABLISHING ## AN ## AFFORDABLE ## HOUSING ## TRUST ## FUND ## Thissummary oftheordinance is published pursuant to ## Section 3.12of the ## Richfield CityCharter. ## This ordinance establishes an affordable housing trustfundin orderto provide additional tools tosupporttherehabilitation and preservation ofaffordable housing, promote the development of addi- tional affordablehousing andassist individuals with rentaland down payment assistance. ## Copies of the ordinance are available for public inspection in the ## City ## Clerk's office during nor- malbusinesshours or uponre- quest by calling the ## Department of ## CommunityDevelopment at ( 612) 861 -9760. ## Adopted by the ## City ## Councilof the ## CityofRichfield, Minnesota this 26thdayofMay, 2020. ## Published in the ## Sun ## Cunent ## June4,2020 1 049828 ## SS ## DianeErickson being duly sworn onanoath, states oralfirms thathe/sheisthePublisher's ## Designated ## Agent ofthenewspaper(s) known as: ## SCBloomington ## Richheld with theknown ofliceof issue beinglocated in thecounty oi ## HENNEPIN with additionalcirculation in thecountiesof: ## HENNEPIN and hasfull knowledge of thefactsstated below: ## A) ## The newspaperhascompliedwith allof the requirements constituting qualifica- tionas a qualified newspaper as provided byMinn. Stat. $ 331,{.02. ## B) ## ThisPublic ## Notice was printed and pub- lished in said newspaper(s) once each week, forI successive week(s); thehrst insertion beingon 0610412020 andthelast insertion beingon 0610412020. ## MORTGAGE ## FORECLOSURE ## NOTICES ## Pursuant to ## Minnesota Stat. $ 580.033 relatiug to the publication of mortgage foreclosure notices: The newspapercomplies with the conditions described iD 9580.033, subd. l, clause ( l) or ( 2). ## If the newspaper's known ollice of issue islocated in acounty adjoining thecounty where themortgaged premises or some part of the mortgaged premises describedin thenoticearelocated, asubstantial portion ofthe newspaperrs circulation is in the latter county. ## Desipated ## Agent ## Subscribed and sworu toorallirmed before me oa 0610412020 by DianeErickson. ## NotaryPublic ## RateInformation: 1) ## Lowestclassifiedrate paid bycommercialusers forcomparable space: 34.45 per column inch ## By: l{olaryPublic ll innesota ## CmEmE4rcsJamtary 31, 2024 ## DARLENE ## MARIE ## AdrD1049828 Page 131 of 131