IV.8. Approval of Minnesota Housing Finance Agency Grant Contract Agreement for Local Housing Trust Fund Grants Program; Needham
CITY OF HOPKINS
City Council Report 2025-181
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Revée Needham, Community Development Manager
Date: December 16, 2025
Subject: Approve Grant Agreement with Minnesota Housing for Local Housing
Trust Fund Grant
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve Grant Agreement with Minnesota Housing for Local Housing
Trust Fund Grant.
OVERVIEW
Local Housing Trust Fund Grant Program
The Local Housing Trust Funds Grant Program was established to encourage local
governments to create or fund Local Housing Trust Funds. The program uses state
funding to match a portion of new housing trust fund dollars to encourage local
investment in affordable housing across Minnesota. These funds may come from any
source other than the state or federal government. The grant funds must be used for
households at or below 115% of state median income and can be used for:
• Development, rehabilitation or financing of housing
• Downpayment assistance
• Rental assistance
• Homebuyer counseling services
• Administrative expenses, up to 10% of grant
City of Hopkins Application
The City of Hopkins established an affordable housing trust fund on February 4, 2025
and transferred $150,000 to establish the housing trust fund in advance of the grant
application. The City applied for a $150,000 local housing trust fund grant. The City of
Hopkins was one of 36 selected for approval from a competitive review process of 54
applications requesting a total of over $9.6 million. The funds will be used for the new
construction of affordable housing, as informed by an upcoming housing needs
assessment and spending priorities plan to be completed in 2026. The grant agreement
is attached and will be signed electronically.
SUPPORTING INFORMATION
• Grant Agreement Draft
Planning & Economic
Development
Local Housing Trust Fund Grant Contract Agreement 1
MINNESOTA HOUSING FINANCE AGENCY
GRANT CONTRACT AGREEMENT
LOCAL HOUSING TRUST FUND GRANTS PROGRAM
This Grant Contract Agreement is between the Minnesota Housing Finance Agency ("MHFA") and [FULL
NAME OF THE GRANTEE INCLUDING ITS ADDRESS] ("GRANTEE").
Recitals
1. Under Minnesota 2023 Session Law, Chapter 37, Article 1, Section 2, Subd. 21, MHFA is empowered to
enter into this Grant Contract Agreement.
2. MHFA is in need of local governments to create or fund local housing trust funds as defined under
Minnesota Statute 462C.16 for the purposes of:
• Making grants, loans, and loan guarantees for the development, rehabilitation, or financing of
housing;
• Matching other funds from federal, state, or private resources for housing projects;
• Providing down payment assistance, rental assistance, and homebuyer counseling services; and
• Administrative expenses, up to 10% of the Local Housing Trust Fund grant amount.
3. The Grantee represents that it is duly qualified and agrees to perform all services described in this Grant
Contract Agreement to the satisfaction of MHFA. Pursuant to Minn. Stat. 16B.98, Subd.1, the Grantee
agrees to minimize administrative costs as a condition of this Grant Contract Agreement.
Grant Contract Agreement
1. Term of Grant Contract Agreement
1.1 Effective date:
September XX, 2025, or the date all required signatures are obtained, whichever is later. Per Minn.
Stat. 16B.98, Subd. 5, the Grantee must not begin work until this Grant Contract Agreement is fully
executed and MHFA's Authorized Representative has notified the Grantee that work may
commence. Per Minn. Stat. 16B.98 Subd. 7, no payments will be made to the Grantee until this
Grant Contract Agreement is fully executed.
1.2 Grant period:
The Grant Contract Agreement period for the Program begins with the Effective Date of this Grant
Contract Agreement and continues through September XX, 2028, (the “Grant Period”). All funds
provided through this Grant Contract Agreement must be fully expended in compliance with this
Grant Contract Agreement by the end of the Grant Period.
1.3 Expiration date:
December XX, 2028, or until all obligations have been satisfactorily fulfilled, whichever occurs first.
1.4 Survival of Terms.
The following clauses survive the expiration or cancellation of this Grant Contract Agreement: 8.
Liability; 9. State Audits; 10. Government Data Practices and Intellectual Property; 12. Publicity and
Endorsement; 13. Governing Law, Jurisdiction, and Venue; and 15 Data Disclosure.
2. Grantee’s Duties
The Grantee, who is not a state employee, will:
Local Housing Trust Fund Grant Contract Agreement 2
Comply with required grants management policies and procedures set forth through Minn. Stat. 16B.97,
Subd. 4 (a) (1), and review the State of Minnesota Office of Grants Management policy 08-01 (Conflict
of Interest for State Grant-Making). The Grantee is required to have a documented Conflict of Interest
policy and must utilize this policy when performing the Grantee duties under the Grant Contract
Agreement. If the Grantee has knowledge or becomes aware of any actual, potential, perceived, or
organizational conflicts of interest with respect to the Grant Contract Agreement, the Grantee shall
immediately disclose the conflict of interest directly to MHFA.
2.1 Work Plan
The Grantee shall perform the duties specified in Exhibit A (the “Work Plan”), which is attached
and incorporated into this Grant Contract Agreement.
2.2 Program Guide
The Grantee will comply with the Local Housing Trust Fund Grants Program Guide (the “Program
Guide”), located on MHFA’s website, which is incorporated into this Grant Contract Agreement,
and may be amended as needed. MHFA will provide notice of any such amendments to the
Grantee’s Authorized Representative (defined herein) by email. Unless otherwise indicated in the
Program Guide, any such amendments are binding to the Grantee as of the date indicated in the
notice, which shall not be earlier than the date that MHFA sends the notice.
2.3 Authorized Expenditures
The Grantee acknowledges that grant funds disbursed by MHFA are provided for the purposes of
incentivizing local funding for affordable housing for the authorized expenditures listed in Minn.
Stat. 462C.16, Subd. 3. All grant funds must be used by the Grantee to fund the activities described
in the Work Plan in accordance with the terms of this Grant Contract Agreement.
2.4 Matching New Public Revenue
Before the execution of this Grant Contract Agreement, the Grantee must provide to MHFA,
documentation of their matching New Public Revenue in the amount of $XXX,XXX.00, including
the source of revenue.
2.5 Reporting
The Grantee must submit annual reports to MHFA beginning no later than one calendar year after
the effective date of this Grant Contract Agreement and continuing until all grant funds have been
expended or the expiration date of the Grant Contract Agreement, whichever occurs first. Required
annual report information may include: program or project progress reporting, grant and matching
New Public Revenue expenditures, communities benefitting from grant funds, and any other
information MHFA requests regarding the use of grant funds.
Reporting forms, instructions, and submission dates will be available on the Local Government
Housing Programs webpage.
3. Time
The Grantee must comply with all the time requirements described in this Grant Contract Agreement. In the
performance of this Grant Contract Agreement, time is of the essence.
4. Consideration and Payment
4.1 Consideration.
MHFA will pay for all services performed by the Grantee under this Grant Contract Agreement as
follows:
Local Housing Trust Fund Grant Contract Agreement 3
(a) Compensation
The Grantee will be paid up to a maximum of $XXX,XXX.00, according to the breakdown of
program or project activities for “Grant Funds Budgeted” in Exhibit B (the “Budget”), which is
attached and incorporated into this Grant Contract Agreement.
(b) Matching Funds
The total grant amount is based on the amount of secured matching New Public Revenue funds
committed to the Grantee’s Local Housing Trust Fund, as detailed in the breakdown of costs
contained in Exhibit B. For the purposes of the Local Housing Trust Fund Grants Program,
“New Public Revenue” is defined as local income that is committed to the Local Housing Trust
Fund on or after June 29, 2021, from any source other than the state or federal government.
(c) Travel Expenses
Reimbursement for travel and subsistence expenses actually and necessarily incurred by the
Grantee as a result of this Grant Contract Agreement will not exceed $0.00; provided that the
Grantee will be reimbursed for travel and subsistence expenses in the same manner and in no
greater amount than provided in the current "Commissioner’s Plan” promulgated by the
Commissioner of Minnesota Management and Budget (MMB). The Grantee will not be
reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received
MHFA’s prior written approval for out of state travel. Minnesota will be considered the home
state for determining whether travel is out of state.
(d) Total Obligation.
The total obligation of MHFA for all compensation and reimbursements to the Grantee under
this Grant Contract Agreement will not exceed $XXX,XXX.00 (the “Grant Proceeds”).
4.2 Payment
(a) Invoices
MHFA will promptly pay the Grantee after the Grantee presents an itemized invoice for the
services actually performed and MHFA's Authorized Representative accepts the invoiced
services. Invoices must be submitted timely and according to the following schedule:
Grant funds will be disbursed in a total of up to two payments.
The first disbursement of at least 50% of the total grant award, will be disbursed to the Grantee
after submitting documentation to MHFA demonstrating that the Grantee has expended at least
50% of the total matching New Public Revenue funds on authorized expenditures.
A second disbursement of the remaining grant amount will be disbursed to the Grantee after
documentation is submitted to MHFA demonstrating that the Grantee has expended the matching
New Public Revenue funds on authorized expenditures in the amount of the remaining balance of
grant.
(b) Unexpended Funds
The Grantee must promptly return to MHFA any unexpended funds that have not been accounted
for annually in a financial report to MHFA due at grant closeout.
4.3 Contracting and Bidding Requirements
(a) Any services and/or materials that are expected to cost $100,000 or more must undergo a formal
notice and bidding process.
Local Housing Trust Fund Grant Contract Agreement 4
(b) Services and/or materials that are expected to cost between $25,000 and $99,999 must be
competitively awarded based on a minimum of three (3) verbal quotes or bids.
(c) Services and/or materials that are expected to cost between $10,000 and $24,999 must be
competitively awarded based on a minimum of two (2) verbal quotes or bids or awarded to a
targeted vendor.
(d) The Grantee must take all necessary affirmative steps to assure that targeted vendors from
businesses with active certifications through these entities are used when possible:
• State Department of Administration's Certified Targeted Group, Economically
Disadvantaged and Veteran-Owned Vendor List
• Metropolitan Council Underutilized Business Program: MCUB: Metropolitan Council
Underutilized Business Program
• Small Business Certification Program through Hennepin County, Ramsey County, and City
of St. Paul: Central Certification Directory
(e) The Grantee must maintain written standards of conduct covering conflicts of interest and
governing the actions of its employees engaged in the selection, award, and administration of
contracts.
(f) The Grantee must maintain support documentation of the purchasing or bidding process used to
contract services in their financial records, including support documentation justifying a
single/sole source bid, if applicable.
(g) Notwithstanding (a) - (d) above, MHFA may waive bidding process requirements when:
• Vendors included in response to competitive grant request for proposal process were
approved and incorporated as an approved work plan for the grant.
• It is determined there is only one legitimate or practical source for such materials or services
and that the Grantee has established a fair and reasonable price.
(h) For projects that include construction work of $25,000 or more, prevailing wage rules apply per
Minn. Stat. 177.41 through 177.44. These rules require that the wages of laborers and workers
should be comparable to wages paid for similar work in the community as a whole.
(i) The Grantee must not contract with vendors who are suspended or debarred in MN:
https://mn.gov/admin/osp/government/suspended-debarred.
5. Conditions of Payment
All services provided by the Grantee under this Grant Contract Agreement must be performed to MHFA’s
satisfaction, as determined at the sole discretion of the MHFA’s Authorized Representative and in
accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee
will not receive payment for work found by MHFA to be unsatisfactory or performed in violation of federal,
state, or local law.
6. Authorized Representative
MHFA's Authorized Representative is Jennifer Bergman, Director of Local Government Housing Programs,
400 Wabasha Street N. Suite 400, St. Paul, MN 55102, 651-297-5232, jennifer.bergman@state.mn.us, or
her successor, and has the responsibility to monitor the Grantee’s performance and the authority to accept
the services provided under this Grant Contract Agreement. If the services are satisfactory, the MHFA's
Authorized Representative will certify acceptance on each invoice submitted for payment. The Authorized
Local Housing Trust Fund Grant Contract Agreement 5
Representative may delegate certain responsibilities to the Program Manager, Colleen Meier, 651-296-9811,
colleen.meier@state.mn.us, or her successor.
All Local Government Housing Programs staff may be reached by email at
localhousingtrustfund.mhfa@state.mn.us.
The Grantee’s Authorized Representative is [NAME, TITLE, ADDRESS, TELEPHONE NUMBER,
EMAIL]. If the Grantee’s Authorized Representative changes at any time during this Grant Contract
Agreement, the Grantee must immediately notify MHFA.
7. Assignment Amendments, Waiver, and Grant Contract Agreement Complete
7.1 Assignment
The Grantee shall neither assign nor transfer any rights or obligations under this Grant Contract
Agreement without the prior written consent of MHFA, approved by the same parties who executed
and approved this Grant Contract Agreement, or their successors in office.
7.2 Amendments
Any amendments to this Grant Contract Agreement must be in writing and will not be effective until
it has been executed and approved by the same parties who executed and approved the original Grant
Contract Agreement, or their successors in office.
7.3 Waiver
If MHFA fails to enforce any provision of this Grant Contract Agreement, that failure does not
waive the provision or MHFA’s right to enforce it.
7.4 Grant Contract Agreement Complete
This Grant Contract Agreement contains all negotiations and agreements between MHFA and the
Grantee. No other understanding regarding this Grant Contract Agreement, whether written or oral,
may be used to bind either party.
8. Liability
The Grantee must indemnify, save, and hold MHFA, its agents, and employees harmless from any claims or
causes of action, including attorney’s fees incurred by MHFA, arising from the performance of this Grant
Contract Agreement by the Grantee or the Grantee’s agents or employees. This clause will not be construed
to bar any legal remedies the Grantee may have for the MHFA's failure to fulfill its obligations under this
Grant Contract Agreement.
9. State Audits
Under Minn. Stat. § 16B.98, Subd.8, the Grantee’s books, records, documents, and accounting procedures
and practices of the Grantee or other party relevant to this Grant Contract Agreement or transaction are
subject to examination by the Commissioner of Administration, MHFA and/or the State Auditor or
Legislative Auditor, as appropriate, for a minimum of six years from the end of this Grant Contract
Agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and
program retention requirements, whichever is later.
10. Government Data Practices and Intellectual Property Rights
10.1 Government Data Practices
The Grantee and MHFA must comply with the Minnesota Government Data Practices Act, Minn.
Stat. Ch. 13, as it applies to all data provided by MHFA under this Grant Contract Agreement, and as
it applies to all data created, collected, received, stored, used, maintained, or disseminated by the
Grantee under this Grant Contract Agreement. The civil remedies of Minn. Stat. 13.08 apply to the
Local Housing Trust Fund Grant Contract Agreement 6
release of the data referred to in this clause by either the Grantee or MHFA. If the Grantee receives a
request to release the data referred to in this Clause, the Grantee must immediately notify MHFA.
MHFA will give the Grantee instructions concerning the release of the data to the requesting party
before the data is released. The Grantee’s response to the request shall comply with applicable law.
10.2 Intellectual Property Rights
(a) MHFA owns all rights, title, and interest in all of the intellectual property rights, including
copyrights, patents, trade secrets, trademarks, and service marks in the works and documents
created and paid for under this Grant Contract Agreement. The “works” means all inventions,
improvements, discoveries (whether or not patentable), databases, computer programs, reports,
notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and
disks conceived, reduced to practice, created or originated by the Grantee, its employees, agents,
and subcontractors, either individually or jointly with others in the performance of this Grant
Contract Agreement. “Works” includes documents. The “documents” are the originals of any
databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings,
specifications, materials, tapes, disks, or other materials, whether in tangible or electronic forms,
prepared by the Grantee, its employees, agents, or subcontractors, in the performance of this
Grant Contract Agreement. The documents will be the exclusive property of MHFA and all such
documents must be immediately returned to MHFA by the Grantee upon completion or
cancellation of this Grant Contract Agreement. To the extent possible, those works eligible for
copyright protection under the United States Copyright Act will be deemed to be “works made
for hire.” The Grantee assigns all right, title, and interest it may have in the works and the
documents to MHFA. The Grantee must, at the request of MHFA, execute all papers and
perform all other acts necessary to transfer or record MHFA’s ownership interest in the works
and documents.
(b) Obligations
(1) Notification. Whenever any invention, improvement, or discovery (whether or not
patentable) is made or conceived for the first time or actually or constructively reduced to
practice by the Grantee, including its employees and subcontractors, in the performance of
this Grant Contract Agreement, the Grantee will immediately give MHFA’s Authorized
Representative written notice thereof, and must promptly furnish MHFA’s Authorized
Representative with complete information and/or disclosure thereon.
(2) Representation. The Grantee must perform all acts and take all steps necessary to ensure that
all intellectual property rights in the works and documents are the sole property of MHFA,
and that neither the Grantee nor its employees, agents, or subcontractors retain any interest in
and to the works and documents. The Grantee represents and warrants that the works and
documents do not and will not infringe upon any intellectual property rights of other persons
or entities. The Grantee will indemnify; defend, to the extent permitted by the Attorney
General; and hold harmless MHFA, at Grantee’s expense, from any action or claim brought
against MHFA to the extent that it is based on a claim that all or part of the works or
documents infringe upon the intellectual property rights of others. The Grantee will be
responsible for payment of any and all such claims, demands, obligations, liabilities, costs,
and damages, including but not limited to, attorney fees. If such a claim or action arises, or in
the Grantee’s or MHFA’s opinion is likely to arise, the Grantee must, at the MHFA’s
discretion, either procure for MHFA the right or license to use the intellectual property rights
at issue or replace or modify the allegedly infringing works or documents as necessary and
appropriate to obviate the infringement claim. This remedy of MHFA will be in addition to
and not exclusive of other remedies provided by law.
Local Housing Trust Fund Grant Contract Agreement 7
11. Workers Compensation
The Grantee certifies that it is in compliance with Minn. Stat. 176.181, Subd. 2, pertaining to workers’
compensation insurance coverage. The Grantee’s employees and agents will not be considered MHFA
employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these
employees and any claims made by any third party as a consequence of any act or omission on the part of
these employees are in no way MHFA’s obligation or responsibility.
12. Publicity and Endorsement
12.1 Publicity
Any publicity regarding the subject matter of this Grant Contract Agreement must identify MHFA as
the sponsoring agency and must not be released without prior written approval from MHFA’s
Authorized Representative. For purposes of this provision, publicity includes notices, informational
pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the
Grantee individually or jointly with others, or any subcontractors, with respect to the program,
publications, or services provided resulting from this Grant Contract Agreement. All projects
primarily funded by state grant appropriations must publicly credit MHFA, including on the
Grantee’s website when practicable.
12.2 Endorsement
The Grantee must not claim that MHFA endorses its products or services.
13. Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice-of-law provisions, governs this Grant Contract Agreement.
Venue for all legal proceedings out of this Grant Contract Agreement, or its breach, must be in the
appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota.
14. Termination
14.1 Termination by MHFA
(a) Without Cause
MHFA may terminate this Grant Contract Agreement without cause, upon 30 days’ written
notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a
pro rata basis, for services satisfactorily performed.
(b) With Cause
MHFA may immediately terminate this Grant Contract Agreement if MHFA finds that there has
been a failure to comply with the provisions of this Grant Contract Agreement, that reasonable
progress has not been made or that the purposes for which the funds were granted have not been
or will not be fulfilled. MHFA may take action to protect the interests of MHFA, including the
refusal to disburse additional funds and requiring the return of all or part of the funds already
disbursed.
14.2 Termination by The Commissioner of Administration
The Commissioner of Administration may immediately and unilaterally cancel this Grant Contract
Agreement if further performance under the Agreement would not serve agency purposes or is not in
the best interest of State.
14.3 Termination for Insufficient Funding
MHFA may immediately terminate this Grant Contract Agreement if:
(a) It does not obtain funding from the Minnesota Legislature;
Local Housing Trust Fund Grant Contract Agreement 8
(b) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services
covered here. Termination must be by written notice to the Grantee. MHFA is not obligated to
pay for any services that are provided after notice and effective date of termination. However,
the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily
performed to the extent that funds are available. MHFA will not be assessed any penalty if this
Grant Contract Agreement is terminated because of the decision of the Minnesota Legislature, or
other funding source, not to appropriate funds. MHFA must provide the Grantee notice of the
lack of funding within a reasonable time of MHFA’s receiving that notice.
15. Data Disclosure
Under Minn. Stat. 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its
social security number, federal employer tax identification number, and/or Minnesota tax identification
number, already provided to MHFA, to federal and state tax agencies and state personnel involved in the
payment of state obligations. These identification numbers may be used in the enforcement of federal and
state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent
state tax liabilities, if any.
16. Fraud Disclosure
Fraud is any intentionally deceptive action made for personal gain or to damage another. Any person or
entity (including its employees and affiliates) that enters into an agreement with MHFA and witnesses,
discovers evidence of, receives a report from another source, or has other reasonable basis to suspect that
fraud or embezzlement has occurred must immediately make a report to:
• MHFA’s Chief Risk Officer at 651.296.7608 or 800.657.3769 or by email at
MHFA.ReportWrongdoing@state.mn.us;
• Any member of MHFA’s Servant Leadership Team as denoted on MHFA’s current organizational
chart (Go to mnhousing.gov, scroll to the bottom of the screen and select About Us, select Servant
Leadership Team); or
• Report Wrongdoing or Concerns (mnhousing.gov) (Go to mnhousing.gov, scroll to the bottom of the
screen and select Report Wrongdoing).
17. Suspension
By entering into any agreement with MHFA, a contracting party represents that the contracting party
(including its employees or affiliates that will have direct control over the subject of the agreement) has not
been suspended from doing business with MHFA. Please refer to MHFA’s website for a list of suspended
individuals and organizations.
18. Conflicts
In the event of a conflict between the terms of this Grant Contract Agreement, its exhibits, and the Program
Guide, or between exhibits, the order of precedence is first the Grant Contract Agreement, and then in the
following order:
• Program Guide
• Exhibit A – Work Plan
• Exhibit B – Budget
Local Housing Trust Fund Grant Contract Agreement 9
1. GRANTEE
The Grantee certifies that the appropriate person(s) have executed the Grant
Contract Agreement on behalf of the Grantee as required by applicable
articles, bylaws, resolutions, or ordinances.
By:
Title:
Date:
By:
Title:
Date:
2. MINNESOTA HOUSING FINANCE AGENCY
By:
(with delegated authority)
Title:
Date:
Distribution:
Agency
Grantee
MHFA’s Authorized Representative
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 1 of 8 August 2025
2025 Local Housing Trust Fund Grants Program Work Plan
Please use this Work Plan to describe your organization’s primary program outcomes, the assigned
staff, how outcomes will be monitored and assessed, and the proposed timeline for each activity. Be
as specific as possible and add additional outcomes as needed to reflect your entity’s goals. The Local
Housing Trust Fund Grants Program Work Plan must be submitted and approved by Minnesota
Housing prior to the execution of the Grant Contract Agreement.
Grantees must follow the statutory requirements as outlined in Minn. Stat. 462C.16 and Minnesota
2023 Session Law, Chapter 37, Article 1, Section 2, Subd. 21.
Per statute, authorized expenditures include:
Making grants, loans, and loan guarantees for the development, rehabilitation, or financing of
housing;
Matching other funds from federal, state, or private resources for housing projects;
Providing downpayment assistance, rental assistance, and homebuyer counseling services; and
Administrative expenses, up to 10% of the Local Housing Trust Fund program grant.
Program or Project Outcome #1: Grant Funds
Program Requirement Grantee Response
Activity:
Describe the primary program or
project activity for which grant
funds will be utilized.
This Activity is for (check one):
☒ Grants, loans, or loan
guarantees
☐ Matching other funds
☐ Down payment assistance,
rental assistance, or homebuyer
counseling services
The grant will be used to make a forgivable loan(s) to
developers to fund the development of 1-2 projects of the new
construction of affordable rental housing.
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 2 of 8 August 2025
Households Served:
How will you demonstrate that this
program or project is serving
households at or below 115% State
Median Income?
Please note the governing statute
refers to State Median Income, not
Area Median Income.
New construction projects in the City that are greater than 20 units and
receive either financial assistance or discretional land use approval
trigger the City’s new Inclusionary Housing Policy (IHP). The City’s IHP
requires projects to build 10% of units affordable at 60% of AMI or 5%
of units affordable at 50% AMI. While these requirements are not the
same as the grant threshold of 115% of SMI, the IHP targets lower-
income rental households. The City requires new developments under
the IHP to sign a development agreement and other documents, such
as restrictive covenants, to ensure the affordability requirements of the
IHP are met and would also ensure the grant requirement of 115% of
SMI is met. The agreement would include: the location, number, type,
and size of affordable housing units to be constructed; sales and/or
rental terms of the units; occupancy requirements of the units; a
timetable for completion of the units; any restrictions to be placed on
the units to ensure their affordability; and any additional terms the City
may require, including any third party monitoring and reporting
requirements. This grant would benefit households below 115% SMI by
funding the construction of new rental units within market rate
buildings. Per the IHP, the exterior and interior materials and design of
affordable dwelling units must be the same in style and quality as
comparable market-rate units in the same development. Many of these
new developments have amenities that other affordable developments
in Hopkins do not have, expanding choice and opportunity for low-
income renters. The grant would fund restricted affordable rental units
for a period of at least 25 years, per the IHP.
Responsible Personnel:
Who are the primary staff
responsible for completing this
activity and working on this
project? Please describe their
role(s) and responsibilities.
Revee Needham is the Community Development Manager for the
City of Hopkins. She will be the main point of contact and program
administrator.
Additional support will be provided from the Finance Department
and the Planning and Economic Development Director, as well as the
City Attorney and City financial consultant through Ehlers.
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 3 of 8 August 2025
Program Deliverables:
How will the program or project
activities be measured to
determine if program outcomes
are being met?
Required annual reporting
information may include program
or project progress reporting,
grant and matching New Public
Revenue expenditures, and
communities benefitting from
grant funds, and any other
information Minnesota Housing
requests regarding use of grant
funds.
Reporting documents and
submittal instructions will be
available on Minnesota Housing’s
website.
City staff will submit the required annual reporting information to
Minnesota Housing.
Each project that receives funding will be required to into a
development agreement or similar agreement outlining the
affordability requirements and responsibilities, including monitoring for
the 25 year term of affordability. Once Minnesota Housing releases the
annual reporting information, this will also be incorporated into the
agreement with the developer. The recorded development agreement
will submitted as a deliverable to Minnesota Housing.
Project success will be measured by the number of affordable units
created and the income levels served (targeting households at or below
115% of SMI). The City also tracks this information annually for the
Metropolitan Council’s Housing Policy and Production Survey, as a
larger measure of the City’s progress on affordable housing goals.
Timeline:
What is the timeline for
completing the activity/activities
outlined above?
Project activities must be
completed within the 3-year grant
contract period.
In 2026, the City of Hopkins is conducting a housing assessment
and spending priorities plan to identify affordable housing
needs in the community. This work is being funded with a
Policy and Program Development grant from the Metropolitan
Council. This work will inform the use of the LHTF matching
grant funds and if this should be targeted towards a specific
type of housing need and project.
Later in 2026, the results would be used to create an
application for the funds, and promotional and communication
materials. In meeting with interested developers and housing
projects, the grant funds would be promoted. Applications
would be accepted or solicited on a rolling basis until expended
prior to the end of the grant term.
Currently, there are a few potential housing developments and
sites identified by staff, that may be eligible to utilize the grant
funds.
We expect to use the grant funds by the end of 2028 or by the
end of the 3-year grant term.
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 4 of 8 August 2025
Program or Project Outcome #2: Grant Funds (Additional program or projects)
Program Requirement Grantee Response
Activity:
Describe the primary program or
project activity for which grant
funds will be utilized.
This Activity is for (check one):
☐ Grants, loans, or loan
guarantees
☐ Matching other funds
☐ Down payment assistance,
rental assistance, or homebuyer
counseling services
Second Program or Project Activity for Grant Funds
Households Served:
How will you demonstrate that this
program or project is serving
households at or below 115% State
Median Income?
Please note the governing statute
refers to State Median Income, not
Area Median Income.
Households Served
Responsible Personnel:
Who are the primary staff
responsible for completing this
activity and working on this
project? Please describe their
role(s) and responsibilities.
Responsible Personnel
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 5 of 8 August 2025
Program Deliverables:
How will the program or project
activities be measured to
determine if program outcomes
are being met?
Required annual reporting
information may include program
or project progress reporting,
grant and matching New Public
Revenue expenditures, and
communities benefitting from
grant funds, and any other
information Minnesota Housing
requests regarding use of grant
funds.
Reporting documents and
submittal instructions will be
available on Minnesota Housing’s
website.
Program Deliverables
Timeline:
What is the timeline for
completing the activity/activities
outlined above?
Project activities must be
completed within the 3-year grant
contract period.
Timeline
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 6 of 8 August 2025
Program or Project Outcome #3: Matching New Public Revenue Funds:
Program Requirement Grantee Response
Activity:
Describe the primary activity for
which matching New Public
Revenue funds will be utilized or
have been utilized.
For the purposes of this program,
New Public Revenue is defined as
local income that is committed to
the Local Housing Trust Fund on or
after June 29, 2021, from any
source other than the state or
federal government.
This Activity is for (check one):
☒ Grants, loans, or loan
guarantees
☐ Matching other funds
☐ Down payment assistance,
rental assistance, or homebuyer
counseling services
The matching new public revenue funds will be used to make a forgivable
loan(s) to developers to fund the development of 1-2 projects of the new
construction of affordable rental housing.
Responsible Staff:
Who are the primary staff
responsible for completing this
activity and working on this
project? Please describe their
role(s) and responsibilities.
Revee Needham is the Community Development Manager for the City
of Hopkins. She will be the main point of contact and program
administrator.
Additional support will be provided from the Finance Department and
the Planning and Economic Development Director, as well as the City
Attorney and City financial consultant through Ehlers.
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 7 of 8 August 2025
Deliverables:
How will the program or project
activities be measured to
determine if program outcomes
are being met?
Required annual reporting
information may include program
or project progress reporting,
grant and matching New Public
Revenue expenditures, and
communities benefitting from
grant funds, and any other
information Minnesota Housing
requests regarding use of grant
funds.
Reporting documents and
submittal instructions will be
available on Minnesota Housing’s
website.
City staff will submit the required annual reporting information to
Minnesota Housing.
Each project that receives funding will be required to into a development
agreement or similar agreement outlining the affordability requirements
and responsibilities, including monitoring for the 25 year term of
affordability. Once Minnesota Housing releases the annual reporting
information, this will also be incorporated into the agreement with the
developer. The recorded development agreement will be submitted as a
deliverable to Minnesota Housing.
Project success will be measured by the number of affordable units
created and the income levels served (targeting households at or below
115% of SMI). The City also tracks this information annually for the
Metropolitan Council’s Housing Policy and Production Survey, as a larger
measure of the City’s progress on affordable housing goals.
EXHIBIT A: Work Plan
Exhibit A: Local Housing Trust Fund Program Work Plan 8 of 8 August 2025
Timeline:
What is the timeline for
completing the activity/activities
outlined above?
Project activities must be
completed within the 3-year grant
contract period.
In 2026, the City of Hopkins is conducting a housing assessment
and spending priorities plan to identify affordable housing needs
in the community. This work is being funded with a Policy and
Program Development grant from the Metropolitan Council. This
work will inform the use of the LHTF matching grant funds and if
this should be targeted towards a specific type of housing need
and project.
Later in 2026, the results would be used to create an application
for the funds, and promotional and communication materials. In
meeting with interested developers and housing projects, the
grant funds would be promoted. Applications would be accepted
or solicited on a rolling basis until expended prior to the end of
the grant term.
Currently, there are a few potential housing developments and sites
identified by staff, that may be eligible to utilize the grant funds.
We expect to utilize the matching public revenue funds by the end of
2028 or by the end of the 3-year grant term.
Grantee: City of Hopkins
Program or Project Activity Grant Funds
Budgeted Notes
Matching New
Public Revenue
Funds Budgeted
Funding Source and Notes
Making loans for the development of new housing $ 137,500.00 forgivable loan(s) to developers to fund the development of 1-2
projects of the new construction of affordable rental housing $ 150,000.00 forgivable loan(s) to developers to fund the development of 1-2 projects
of the new construction of affordable rental housing
Subtotal Program or Project Activities $ 137,500.00 $ 150,000.00
Administrative Expenses* Grant Funds
Budgeted Notes
Matching New
Public Revenue
Funds Budgeted
Funding Source and Notes
Legal fees, administrative expenses $ 12,500.00 To cover costs associated with administering grants/loans for the
development of new housing $ -
Subtotal Administrative Expenses $ 12,500.00 $ -
Grant Funds Total Percent of Total Grant Funds
Matching New
Public Revenue
Funds Total
Percent of Total Matching Funds
Program or Project Activities $ 137,500.00 92% $ 150,000.00 100%
Administrative Expenses $ 12,500.00 8% $ - 0%
TOTAL $ 150,000.00 $ 150,000.00
Budget Summary
EXHIBIT B: 2025 Local Housing Trust Fund Grants Program Budget
Budget
*Cannot exceed 10% of the total budget. Administrative Expenses include, but are not limited to, staffing expenses, office expenses, travel expenses, insurance and legal fees.
Instructions: Please provide Program or Project Activity information for which grant funds and matching New Public Revenue funds will be used and on which line items grant funds are being spent. New Public Revenue is defined as local income that is
committed to the Local Housing Trust Fund on or after June 29, 2021, from any source other than the state or federal government. Per Minn.Stat.§462C.16, Subd. 3, authorized expenditures for this grant program include:
• Making grants, loans and loan guarantees for the development, rehabilitation or financing of housing;
• Matching other funds from federal, state or private resources for housing projects;
• Providing downpayment assistance, rental assistance and homebuyer counseling services; and
• Allowing administrative expenses, up to 10% of the Local Housing Trust Fund Program grant.
If part of a larger project, such as a housing development, you do not need to include the entire project budget. Provide one funding source per line item. You may have a Program or Project Activity listed more than once. If matching funds have already
been expended, please provide that information in Column E.
Administrating Entity: Hopkins Housing and Redevelopment Authority