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November 16, 2016
Housing Summit
DEED Programs Assisting with Housing
• Workforce Housing Development Program
(WHDP)
• Small Cities Development Program (SC...
Workforce Housing Development Program
• $4 million over 2 years
• Likely ongoing funding
• 2 Projects funded in FY16
• 8 A...
Workforce Housing Development Program
• Providing financial assistance to communities to
address the need for workforce ho...
Eligible Project Area/Applicant
• A home rule charter or statutory city with a population
exceeding 500 or
• A community t...
Eligible Expenditures
• acquisition of property
– (owned by applicant, developer)
• construction of improvements
• provisi...
Program Requirements
• The average vacancy rate for rental housing located in the
eligible project area, and in any other ...
Program Requirements-continued
• Business provides a written statement that the eligible project
area has a lack of availa...
Market Rate Defined
• New Properties that are rented at Market Value
– Rental development
– Modular homes
– Manufactured h...
Market rate property excludes
• Properties constructed with financial assistance requiring the
property to be occupied by ...
Grant Amounts
• The amount of an individual grant may not exceed 25 percent
of the rental housing development total projec...
Match Requirement
• The awarded grant shall be matched by a local unit of
government, business, or nonprofit organization ...
Application Ranking
This is a competitive ranking (not all inclusive)
– Need- stronger the better, vacancy rate
– Impact- ...
2016 Time Frames
• March 18, 2016 Application Packet available online
• July 25-29, 2016 Application Training Sessions
• N...
Funding Award Process (continued)
• Future funding rounds are dependent on 2017
legislative session
Awarded $1 million
• 72 Apartments
• $13.1 million TDC
• $13,889 per unit
• 8% of TDC
• 3.1% vacancy Rate
• Application le...
Awarded $620,000
• 24 Apartments
• $2.6 million TDC
• $25,833 per unit
• 24% of TDC
• < 1% Vacancy
• Barrel of Fun, KLN Br...
Parkland Place – Roseau (Pilot)
Awarded $819,000
• 30 Apartments
• $3.3 million TDC
• $819,041 grant
• $27,301 per unit
• ...
West River Estates Thief River Falls (Pilot)
Awarded $819,000
• 52 Apartments
• $5.6 million TDC
• $27,301 per unit
• 7% o...
Small Cities Development Program (SCDP)
• Owner Occupied Housing Rehabilitation
• Rental Housing Rehabilitation
• Public F...
SCDP Eligible Applicants
• Cities with population under 50,000
• Counties and townships with unincorporated
population of ...
SCDP Types of Applications
• Single Purpose Application: $600,000
maximum (includes administration); Housing,
Public Facil...
SCDP Federal Objectives
• Owner Rehab – 80% or less of county median
income (low to moderate income)
• Rental Rehab – 51% ...
SCDP Funding Availability
Approximately $14 million available annually
• 2 Stage Application Process
– Preliminary Proposa...
SCDP Contacts
Hillary Jasicki – 3, 7E, 11
Patrick Armon - 2, 5, 6E, 7W, 9, 10
Natasha Kukowski – 1, 4, 6W, 8
firstname.las...
Redevelopment Grant Program
• Redevelopment grants are available to local units of
government for up to 50% of eligible co...
Contact Information
Jeremy LaCroix 651.259.7457  Jeremy.lacroix@state.mn.us
Minnesota Department of Employment and Econo...
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Deed workforce housing programs

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IMPACT 20/20 Housing Summit Presentation
November 16, 2016

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Deed workforce housing programs

  1. 1. November 16, 2016 Housing Summit
  2. 2. DEED Programs Assisting with Housing • Workforce Housing Development Program (WHDP) • Small Cities Development Program (SCDP) • Redevelopment/Clean Up Programs
  3. 3. Workforce Housing Development Program • $4 million over 2 years • Likely ongoing funding • 2 Projects funded in FY16 • 8 Applications received for FY17 ($6 million) • Expect to make awards by 12/31/16
  4. 4. Workforce Housing Development Program • Providing financial assistance to communities to address the need for workforce housing to improve economic development • Minnesota Statue 116J.549 Section 2, Subdivision 1 • Grants to eligible project areas to be used for qualified expenditures.
  5. 5. Eligible Project Area/Applicant • A home rule charter or statutory city with a population exceeding 500 or • A community that has a combined population of 1,500 residents located within 15 miles of a home rule charter or statutory city
  6. 6. Eligible Expenditures • acquisition of property – (owned by applicant, developer) • construction of improvements • provisions of loans • interest rate subsidies • public infrastructure • related financing costs
  7. 7. Program Requirements • The average vacancy rate for rental housing located in the eligible project area, and in any other community located within 15 miles or less of the boundaries of the area, has been five percent or less for at least the prior two-year period. – Market Study – Census Data/American Community Survey – Local Survey • One or more businesses located in the eligible project area, or within 25 miles of the eligible project area, that employs a minimum of 20 full-time equivalent employees in aggregate.
  8. 8. Program Requirements-continued • Business provides a written statement that the eligible project area has a lack of available rental housing which has impeded their ability to recruit and hire employees. • The eligible project grantee must certify that the grants will be used for qualified expenditures for the development of rental housing to serve employees of businesses located in the eligible project area or surrounding area.
  9. 9. Market Rate Defined • New Properties that are rented at Market Value – Rental development – Modular homes – Manufactured homes • Can be on leased land or in a manufactured home park
  10. 10. Market rate property excludes • Properties constructed with financial assistance requiring the property to be occupied by residents that meet income limits under federal or state law of initial occupancy. • Properties constructed with federal, state, or local flood recovery assistance, regardless of whether that assistance imposed income limits as a condition of receiving assistance.
  11. 11. Grant Amounts • The amount of an individual grant may not exceed 25 percent of the rental housing development total project cost. Due to the competitive ranking, awards will likely be less than 25% of total project costs. • State prevailing wage may apply to the project.
  12. 12. Match Requirement • The awarded grant shall be matched by a local unit of government, business, or nonprofit organization with $1 for every $2 provided in grant funds.
  13. 13. Application Ranking This is a competitive ranking (not all inclusive) – Need- stronger the better, vacancy rate – Impact- location to business and site impact – Cost effectiveness- per unit costs, solid financing plan – Readiness- projects ready to start within 12 months – Capacity- of applicant, project manager, developer, funders Note: Preference is given to eligible project areas with less than 18,000 people.
  14. 14. 2016 Time Frames • March 18, 2016 Application Packet available online • July 25-29, 2016 Application Training Sessions • November 10, 2016 Deadline for Application • December 2016 Funding Recommendations to DEED Commissioner • December 2016 Funding status provided to applicants
  15. 15. Funding Award Process (continued) • Future funding rounds are dependent on 2017 legislative session
  16. 16. Awarded $1 million • 72 Apartments • $13.1 million TDC • $13,889 per unit • 8% of TDC • 3.1% vacancy Rate • Application letters from Cirrus, United Healthcare, Maurice’s, Essentia Health, St. Lukes, and Mills Fleet Farm. Existing shortage, plus adding 1,030 employees in 2016 • City support in place, site in place, financing in place • Start construction in 2016 Site The District at Miller Hill, Duluth
  17. 17. Awarded $620,000 • 24 Apartments • $2.6 million TDC • $25,833 per unit • 24% of TDC • < 1% Vacancy • Barrel of Fun, KLN Brands, Arvig Enterprises, and Industrial Finishing have 1,400 employees earning an average of $31,325 per year. • Grow Perham is an investment group of local business leaders organized to solve housing issues. The group has constructed and manages 138 units of housing in Perham. • Construction starts summer 2016 Grow Perham Workforce Housing
  18. 18. Parkland Place – Roseau (Pilot) Awarded $819,000 • 30 Apartments • $3.3 million TDC • $819,041 grant • $27,301 per unit • 25% of TDC • 2.4% Vacancy • Assisted Polaris and Marvin Windows
  19. 19. West River Estates Thief River Falls (Pilot) Awarded $819,000 • 52 Apartments • $5.6 million TDC • $27,301 per unit • 7% of TDC • Grant used for public infrastructure • Assisted Digi-Key and Artic Cat • 1.3% Vacancy
  20. 20. Small Cities Development Program (SCDP) • Owner Occupied Housing Rehabilitation • Rental Housing Rehabilitation • Public Facilities • Others • Federal Funds (CDBG)
  21. 21. SCDP Eligible Applicants • Cities with population under 50,000 • Counties and townships with unincorporated population of fewer than 200,000
  22. 22. SCDP Types of Applications • Single Purpose Application: $600,000 maximum (includes administration); Housing, Public Facilities • Comprehensive Application – Aggregate $1.4 million - $600,000 maximum per each activity (includes administration); Housing Commercial, Public Facilities.
  23. 23. SCDP Federal Objectives • Owner Rehab – 80% or less of county median income (low to moderate income) • Rental Rehab – 51% of units at LMI with HUD Fair Market Rents • Public Facilities – 51% or greater of population at LMI (census) • Slum and Blight Designation - Commercial
  24. 24. SCDP Funding Availability Approximately $14 million available annually • 2 Stage Application Process – Preliminary Proposals due November 10 – Full Applications – If invited due in February
  25. 25. SCDP Contacts Hillary Jasicki – 3, 7E, 11 Patrick Armon - 2, 5, 6E, 7W, 9, 10 Natasha Kukowski – 1, 4, 6W, 8 firstname.lastname@state.mn.us
  26. 26. Redevelopment Grant Program • Redevelopment grants are available to local units of government for up to 50% of eligible costs – Preferred activities are demolition and abatement, but infrastructure costs and geotechnical soil correction may be eligible as well – Site must have been previously developed, and end use must create jobs, taxes, or other public benefits • Contact Kristin Lukes 651.259.7451 kristin.lukes@state.mn.us
  27. 27. Contact Information Jeremy LaCroix 651.259.7457  Jeremy.lacroix@state.mn.us Minnesota Department of Employment and Economic Development BCD Division/Community Finance Attention: Jeremy LaCroix First National Bank Building 332 Minnesota Street, Suite E200 St. Paul, MN 55101

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