#03 - Local Affordable Housing Aid Agreement

Home Browse Search

1 GROW FUND OVERVIEW The Washington County Community Development Agency (the "Agency") is committed to the development of affordable housing. The Agency established the GROW Fund (Growing Affordable Rental and Owner-Occupied Housing in Washington County) in 2005 to assist in the construction, rehabilitation, and preservation of affordable rental and owner-occupied housing. The GROW Fund is a Local Housing Trust Fund as defined in MN Statute §462C.16. The GROW Fund is available to fill financing gaps for projects implemented by eligible public or private entities with the capacity to develop and preserve affordable housing. Fund Purpose The GROW Fund is available to: • Fill financing gaps resulting from restricted rents/sales prices on qualifying affordable housing developments including: o New affordable multifamily rental developments o New homeownership developments subject to purchase price and resale restrictions o Preservation of properties with an existing affordability restriction or rental assistance contract • Demonstrate local commitment to affordable housing to state and federal funding partners; and/or • Leverage public and private sector funds. Delegation of Authority The Agency's Board of Commissioners has established this policy to guide the use of the GROW Fund. Agency staff are responsible for ensuring that funds are provided only to eligible applicants and expended only for allowable costs. GROW Fund recommendations will be presented by Agency staff to the Board of Commissioners for final approval at a regularly scheduled meeting. The Agency’s Executive Director is authorized to approve administrative revisions to this GROW Policy from time to time. Capitalization of the GROW Fund The GROW Fund consists of, but is not limited to, funding from the following sources: • State and Local Affordable Housing Aid: Funds allocated by the State of Minnesota to Washington County via the Local Affordable Housing Aid and Statewide Local Housing Aid Acts, MN Statutes §477A.35 and §477A.36, respectively. • CDA Levy: The Agency established the GROW Fund by appropriating funds through the Agency's special benefit levy. The Agency evaluates its commitment to the GROW Fund on an annual basis through the adoption of its annual budget. • Fund Income: The Fund will utilize a “Revolving Loan Fund” concept. Loan repayments and prepayments will be considered Fund Income and will be deposited back into the Fund to make additional loans. • Match Funding: From time to time, the Fund may receive additional funds from outside sources. Moneys received from other sources will be deposited into the Fund and used to make loans.