IV.6. Approval of Metropolitan Livable Communities Act Agreement Permitting Redeployment of Repayment Proceeds for Grant Funds as Loan Proceeds; Needham
CITY OF HOPKINS
City Council Report 2025-063
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Revée Needham, Community Development Manager
Date: April 15, 2025
Subject: Amendment to Livable Community Act Grants
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve Agreement Permitting Redeployment of Repayment Proceeds for
Grant Funds as Loan Proceeds.
OVERVIEW
In August 2024, the Metropolitan Council Community Development Committee updated
its guidance (BI: 2024-210) regarding grants deployed as loans. Metropolitan Council
staff reached out to the City to request amendments to previous grant agreements to
align with the updated guidance.
The key updates include:
• Use of Loan Repayments: Grantees who receive future repayments from loans
made with Livable Communities Act (LCA) grants are authorized to either
reinvest these funds to extend the affordability commitment of the original project
or use them to advance their affordable and life-cycle housing goals in alignment
with regional housing policy.
• Reporting Requirement: Grantees must provide an annual informational report to
the Council detailing the receipt and redeployment of repaid loan principal and
interest. This report should outline how the funds will be used to support regional
affordable and life-cycle housing goals and must be submitted annually as part
of the Housing Policy and Production Survey conducted by the Council.
• Non-Reinvestment of Funds: If repaid grant funds are not reinvested for one of
the approved purposes, they must be returned to the Metropolitan Council for
redeployment through new LCA grant awards, in accordance with the original
grant agreement. If a grantee determines that funds will not be reinvested, they
should notify the Grants Administration Team promptly.
This impacts three LCA grants that the City of Hopkins has received: 325 Blake, and
two grants with Oxford Village.
SUPPORTING INFORMATION
• Metropolitan Council Agreement Amendment
Planning & Economic
Development Department
METROPOLITAN LIVABLE COMMUNITIES ACT
AGREEMENT PERMITTING REDEPLOYMENT OF REPAYMENT PROCEEDS FOR
GRANT FUNDS AS LOAN PROCEEDS
Page 1 of 4
Loan Proceeds revised 12/4/24
GRANTEE: CITY OF HOPKINS
THIS AGREEMENT PERMITTING REDEPLOYMENT OF REPAYMENT PROCEEDS
FOR GRANT FUNDS AS LOAN PROCEEDS (“Redeployment Proceeds Agreement”) is made and
entered into by the Metropolitan Council (“Council”) and the Municipality, County, or Development
Authority identified above as “Grantee.”
WHEREAS, the Grantee has previously received grant program funds for the Livable Communities
Demonstration Account, Tax Base Revitalization Account, and/or the Local Housing Incentives
Account grant programs (“Grant Funds”) and has used the Grant Funds made available under the
agreements identified on Exhibit A to help fund the projects identified in the agreements (the “Prior
Grant Agreements”), which are subject to any terms, conditions, and clarifications stated in the Prior
Grant Agreements’ Council business items; and
WHEREAS, the Council, pursuant to Business Item 2024-210 had recently clarified its policy that
all Metropolitan Livable Communities Fund grants, including the Prior Grant Agreements, deployed
as loans to permit recipients such as Grantee to use the loan proceeds to either:
(1) repay any loan principal or interest proceeds to the Council;
(2) reinvest loan proceeds to extend the affordability commitment in the Project; or
(3) use the loan proceeds to advance its affordable and life-cycle housing goals
regardless of whether the Prior Grant Agreements expressly permitted such repayment, reinvestment,
or use.
NOW THEREFORE, in reliance on the above statements and in consideration of the mutual
promises and covenants contained in this Agreement, the Grantee and the Council agree as follows:
1. Notwithstanding any language in the Prior Grant Agreements to the contrary or absence of
any language with respect to the same, the Parties expressly agree and acknowledge that as an
alternative to repaying any loan principal or interest proceeds (“Repaid Grant Funds”) to the
Council, the Grantee may either reinvest the loan proceeds to extend the affordability of the
Project or use loan proceeds to advance its other affordable and life-cycle housing goals
(“Redeployment of Repaid Grant Funds”).
2. The Parties expressly agree that, if the Grantee pursues Redeployment of Repaid Grant Funds,
the Grantee shall report the Redeployment of Repaid Grant Funds to the Council in in its next
annual Housing Policy and Production Survey.
3. Upon the Council’s review of any Redeployment of Repaid Grant Funds identified in the
Grantee’s Housing Policy or Production Survey or otherwise, the Council reserves the right
to request return of such funds if, after review, the Council determines such Redeployment of
METROPOLITAN LIVABLE COMMUNITIES ACT
AGREEMENT PERMITTING REDEPLOYMENT OF REPAYMENT PROCEEDS FOR
GRANT FUNDS AS LOAN PROCEEDS
Page 2 of 4
Loan Proceeds revised 12/4/24
Repaid Grants Funds does not comply with the Livable Communities Act program
requirements, or affordable and life-cycle housing goals. Upon the Council’s request, the
Grantee shall promptly return the Repaid Grant Funds.
4. The Parties agree that the provisions of Paragraphs 1 through 3 shall be deemed to be included
as if fully stated and set forth in the Prior Grant Agreements and have the full force and effect
as if set forth therein.
5. This Agreement may be executed in multiple counterparts, all of which when taken together
shall comprise one (1) document. Delivery of an executed counterpart of a signature page of
this Agreement by DocuSign (or similar electronic signature application), facsimile
transmission or electronic transmission (e.g., “pdf” or “tif”) shall be effective as delivery of
a manually executed counterpart of this Agreement.
IN WITNESS WHEREOF, the Grantee and the Council have caused this Agreement to be executed
by their duly authorized representatives. This Agreement is effective on the date of final execution
by the Council.
This space intentionally left blank. Signature page follows.
METROPOLITAN LIVABLE COMMUNITIES ACT
AGREEMENT PERMITTING REDEPLOYMENT OF REPAYMENT PROCEEDS FOR
GRANT FUNDS AS LOAN PROCEEDS
Page 3 of 4
Loan Proceeds revised 12/4/24
CITY OF HOPKINS METROPOLITAN COUNCIL
By: _____________________________________ By: ___________________________________
LisaBeth Barajas, Executive Director
Title: ___________________________________ Community Development Division
Date: ___________________________________ Date: __________________________________
By: _____________________________________
Title: ___________________________________
Date: ___________________________________
By: _____________________________________
Title: ___________________________________
Date: ___________________________________
By: _____________________________________
Title: ___________________________________
Date: ___________________________________
Approved as to form:
By: _____________________________________
City Attorney’s Office
Date: ___________________________________
METROPOLITAN LIVABLE COMMUNITIES ACT
AGREEMENT PERMITTING REDEPLOYMENT OF REPAYMENT PROCEEDS FOR
GRANT FUNDS AS LOAN PROCEEDS
Page 4 of 4
Loan Proceeds revised 12/4/24
Exhibit A
Prior Grant Agreements
Grant
Number Project Name Program Area Funding Year
SG-2013-132 Oxford Green
TOD
Development 2013
SG-03142 Oxford Village Apartments TBRA Cleanup 2015
SG-16748 325 Blake
TOD
Development 2021