This page describes the creation of an Affordable Housing/Commercial Corridor Reserve Fund for Phase II as approved by the NRP Policy Board on 7/24/00.
- Focus on citywide improvements.
- Retain a neighborhood-based system of review and approval for funding.
- Encourage distribution of funds across as many neighborhoods as possible.
- Establish a viable level of funding per project.
- Leverage other funding sources.
- Maintain consistency with existing policies of jurisdictions.
- Use existing management/monitoring structures.
- Accessing Reserve Funds
a) All affordable housing and commercial corridor projects requesting NRP funding must be reviewed and sponsored by the neighborhood in which the project will occur. The project must be included in the Action Plan for the neighborhood in which the project will be located. Joint neighborhood projects as well as partnerships between developers and neighborhoods will be encouraged. However, direct independent access to NRP Reserve Funds will not be afforded to developers or organizations.
b) Reserve funds can be accessed by neighborhoods prior to the development of neighborhood action plans. NRP "early access" policy guidelines will be used for early access to reserve funds.
c) NRP and MCDA will establish technical review teams to review housing and commercial corridor project proposals. Technical teams forward recommendations to the Management Review Team (MRT) for review. If approved by the MRT, proposals will be forwarded to the NRP Policy Board for final approval.
d) The rejection of an affordable housing or commercial corridor proposal can be appealed to the NRP Policy Board utilizing the existing NRP Policy Board grievance process.
e) NRP funds from the reserve must be leveraged on at least a 1 to 1 basis with non-NRP funds.
- Reserve Fund Allocations
Affordable Housing: No more than $1 million of the annual funds allotted ($4 million) available to any one neighborhood in a given year. No more than $2.5 million of the total funds allocated over the four years ($16 million) available to any one neighborhood. Projects from partnerships of several neighborhoods are encouraged but the amount provided from the reserve for such partnerships will be limited to no more than $2,5 million per approved reserve fund project, regardless of the number of neighborhoods in the collaboration.
The NRP Reserve Fund assistance will be limited to affordable housing units. Per unit assistance should not exceed the per unit cap established for affordable units by the Federal HOME Investment Partnership Program. The subsidy limits vary according to number of bedrooms; current limits range from $71,508 per unit for efficiency or SRO units to $141,541 per unit for a four bedroom unit. These caps are adjusted periodically by HUD.
Commercial Corridors: No more than $400,000 of the total funds allocated over the four years ($4 million) available to any one neighborhood. No project limit.
- Distribution of Reserve Funds
a) Decisions and policies developed should encourage distribution of funds across as many neighborhoods as possible, including both "impacted" and "non-impacted" areas as defined by the Hollman consent decree. A map of these areas is attached.
b) Joint neighborhood projects will be encouraged.
c) Time between the date of approval of a NRP Reserve Fund commitment and the date of project closing should not exceed eighteen months. Extensions approved by the NRP Policy Board.
d) MCDA will use existing development contract mechanisms to ensure that projects receiving Reserve Funds will in fact produce the planned amount and types of affordable housing.
- Definitions of Affordable Housing/Commercial Corridors
a) Use definition of affordable housing approved by the NRP Policy Board on 2/28/00 as follows: "Income target is affordability at 30-50% of Metro Median Income (housing costs equal $500-800 per month for a family of four; $350-600 for a family of one). Priority will be given to projects that are targeted at 30% of the MMI. Allowable uses in no order of priority are:
- New construction
- Renovation of vacant rental or ownership housing
- Preservation of existing, occupied rental or ownership housing
- Payment to owners to reduce costs to the target level of affordability
- Programs/projects which have the effect of freeing existing ownership housing for occupants
who meet the target income (e.g., a program which pairs new housing opportunities for seniors with selling their vacated homes to low-income families)"
b) Use broad definition of commercial corridors established in the City of Minneapolis comprehensive plan. This definition states:
Structure for Management/Distribution of Reserve Funds
- Commercial Corridors are streets that are available for development including more intensive commercial and high traffic activities. The buildings and structures on these streets are generally similar to traditional commercial storefronts and the siting and massing of new structures should respect this typology. These corridors must balance both pedestrian and automobile orientation in their design and development. The corridors support all types of commercial uses, with some light industrial and high density residential uses as well. While the character of these streets is commercial, residential areas are nearby and impacts from commercial uses must be mitigated as appropriate."
a) Limit creation of new structures. Use existing City, MCDA and NRP processes, personnel and structures.
Fund Interaction Policies
a) Reserve funds used by neighborhoods for affordable housing will not reduce individual neighborhood housing requirements, if individual neighborhood housing allocations are established.
b) Reserve funds utilized by a neighborhood will not count against their overall neighborhood
allocation. Reserve funds should supplement individual neighborhood allocations.
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