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2 <br />Eligible Projects <br /> <br />The funds can be spent on a list of eligible projects. These projects include emergency rental <br />assistance and projects the support non-profit affordable housing providers. Other eligible <br />projects are ones designed for the purpose of construction, acquisition, rehabilitation, <br />demolition or removal of structures, construction financing, permanent financing, interest rate <br />reduction, refinancing, and gap financing of housing to provide affordable housing to <br />households that have incomes that do not exceed a specified threshold. There are several <br />stipulations for all of the eligible projects. <br /> <br />Administration of the Aid Distribution <br /> <br />The City does not have a housing policy to subsidize affordable housing projects. This would <br />have to include priority projects and criteria for approval and include a possible housing study. <br />The City also does not have a housing agency that administers housing programs to subsidize <br />affordable housing. There are some communities that do have a housing agency that are <br />already supporting affordable housing. The City historically has partnered with Washington <br />County Community Development Agency (CDA) to support affordable housing. <br /> <br />The City staff has been in discussions with Washington County CDA to administer the LAHA to <br />support the qualifying projects on behalf of the City. They have stated they are allowed and <br />able to administer the program for the City. This includes an agreement with the CDA, and it <br />would be at no cost to the City. They already administer programs that would qualify and are <br />also looking to have additional programs. LAHA would be transferred to the CDA and would be <br />spent in Hugo. The CDA would also prepare reporting to State and tax forms. <br /> <br />Below are the existing programs that Washington County CDA has to support affordable <br />housing: <br /> <br />• GROW Policy <br />• Assist in the construction, rehabilitation, and preservation of affordable rental and <br />owner-occupied housing. <br />• NOAH-GROW Policy <br />• Specifically dedicated to assist in the preservation of naturally occurring affordable <br />housing (NOAH) and expiring affordable housing units. <br />• HOME Improvement Loans <br />• Administers several loan programs that can help finance critical improvements to <br />homes. These funds can be used for just about anything that makes homes safer or <br />more energy efficient. <br />• First-Generation Homebuyer Grant Policy <br />• Provide additional resources to first generation homeowners within Washington <br />County to support their entry into sustainable homeownership. <br />• The CDA has stated we can also have a City-developed program or use aid for specific <br />project that meets the LAHA qualifications <br /> <br />At it’s January 27, 2025 goal setting workshop the City Council discussed the Washington <br />County CDA’s ability to administer the funds. The City Council asked staff to work directly with <br />Washington County CDA on a draft agreement. The draft agreement is attached.