History: Beyond the repercussions to the health and safety of county residents, the unprecedented economic environment created by the Coronavirus (COVID-19) pandemic has resulted in massive business closings, income loss, and unemployment. For low-income Hennepin County residents, any break in income can have serious financial consequences, making it even harder to pay for already unaffordable housing costs. Ensuring stable housing is important for our individual and community health.

The federal government and State of Minnesota have enacted protections and provided additional assistance to respond to this economic crisis, including a federal foreclosure moratorium and mortgage forbearance for federally backed mortgages, a state eviction moratorium, greatly expanded unemployment insurance, small business support, and other assistance. Similarly, several local cities have allocated funds for emergency housing response.

Even with these actions, and with anticipated county allocations of federal funds from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), there will still be unmet needs in our community. These unmet needs will be greatest with lowest income households, and households not eligible for federal and state programs. Thus, staff recommends targeting prior year AHIF program repayments and rescinded allocations towards unmet emergency housing assistance needs resulting from income loss due to the COVID-19 pandemic in two ways. First, for renters, an emergency rent and assistance program:

• Administered through existing community-based providers
• Targeting renters with low incomes at or below 50 percent of area median income (AMI) and at the highest risk for COVID-19 related economic loss,
• Averaging $1,500 per household, plus staffing costs, with a goal of assisting 144 households.

AHIF funding will be paired with an anticipated special allocation of Community Development Block Grant (CDBG) funds authorized by the CARES Act, to respond to the growing effects of this historic public health crisis. These funds must be used to prevent, prepare for, and respond to the COVID-19 pandemic. Community-based providers will be selected based on an emergency request for proposals (RFP) process initiated by Hennepin County; provider responses are due April 22, 2020.

Second, for homeowners, an innovative strategy to preserve homeownership as well as long-term affordability of homes:

• Administered by City of Lakes Community Land Trust (CLCLT)
• Targeted to homeowners with incomes below 80 percent AMI at risk of tax forfeiture and home loss
• Financial assistance to prevent tax forfeiture and rehabilitate homes, in exchange for ownership of the land and a Ground Lease ensuring the home remains affordable long-term
• Goal: 10 homes

CLCLT’s Project: Sustained Legacy proposal was selected from the 2020 AHIF RFP and accelerated for approval considering current emergency conditions.

Current Request: This request is for authorization to negotiate agreements with up to three existing community-based vendors to administer the newly created Hennepin County Emergency Housing Assistance project (CP 1008081) between April 27, 2020 and April 30, 2021, with a not to exceed amount of $240,000 (including $24,000 for program administration); negotiate Agreement PR00002194 with CLCLT for Project: Sustained Legacy during the period April 22, 2020 through April 21, 2065, with the NTE of $500,000; and a supplemental appropriation to the 2020 HCHRA Fund 37 budget in the amount of $740,000.

Impact/Outcomes: Approval of these agreements will assist approximately 154 low-income Hennepin County residents maintain stable housing during the COVID-19 pandemic.