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HomeMy WebLinkAbout2025-06 ORD LOCAL HOUSING TRUST FUNDBR291-16-985382.v3 CITY OF BROOKLYN CENTER ORDINANCE NO. 2025-06 AN ORDINANCE ADDING A SECTION TO CHAPTER 33 OF THE BROOKLYN CENTER CITY CODE ORDINANCES REGARDING THE ESTABLISHMENT OF A LOCAL HOUSING TRUST FUND THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Article 1. The Brooklyn Center City Code, Chapter 33, is amended to add Section 33-200, Local Housing Trust Fund to read in its entirety as follows: Section 33-200. LOCAL HOUSING TRUST FUND Section 33-201. ESTABLISHMENT. Pursuant to the authority granted to the city under Minnesota Statutes, Section 462C.16, a Local Housing Trust Fund is established to support the development, rehabilitation, or financing of housing, support housing projects, provide down payment assistance, rental assistance, and home buyer counseling services, and for any other purposes authorized by law. Section 33-202 FUNDING SOURCES. Pursuant to Minnesota Statutes, Section 462C.16, subd. 4, and as determined by the city council, the Local Housing Trust Fund may be funded from multiple sources, which may include, but are not limited to the following: 1. Budgeted allocation of funds from the city’s Economic Development Authority (EDA) or housing and Redevelopment Authority (HRA) levy as approved by the Economic Development Authority and the City Council. 2.Private cash donations from individuals, organizations, and businesses designated for the Local Housing Trust Fund. 3.Grants and loans from a federal, state, or local government or other private sources. 4. Bond proceeds. 5. Payments in lieu of participation in current or future affordable housing programs. 6.Matching funds from a federal or state Local Housing Trust Fund; or a state program designated to fund a Local Housing Trust Fund. 7.Principal and interest from Local Housing Trust Fund loan repayments and all other income from Local Housing Trust Fund activities, including but not limited to investment earnings. 8. The sale of real and personal property as approved and as designated by the city council. 9.Local government appropriations, development fees and other funds as designated from time to time by the city council. 10. Tax Increment Finance (TIF) pooled funds. 11. Other sources of funding approved by the city council. Section 33-204. USE OF FUNDS. Pursuant to Minnesota Statutes, Section 462C.16, subd. 3, funds in the Local Housing Trust Fund may only be used for the following: 1.Making grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing. 2. Matching other funds from federal, state, or private resources for housing projects. 3.Providing down payment assistance, rental assistance, and home buyer counseling services to persons of very low, low, and moderate-income. 4.Payment of administrative expenses of the Local Housing Trust Fund in the maximum amount of ten percent of the balance of the Local Housing Trust Fund. 5.Financing the acquisition, demolition, and disposition of property for housing projects. 6. Financing construction of public improvements and utilities to aid proposed residential developments. 7. Financing the rehabilitation, remodeling, or new construction of housing. 8.Interim financing of public costs for housing projects in anticipation of a permanent financing source (i.e., construction financing, bond sale, etc.) 9. Other uses as permitted by law and approved by the City Council. Section 33-205 ADMINISTRATION OF LOCAL HOUSING TRUST FUND. 1.The Economic Development Authority in and for the City of Brooklyn Center (the “EDA”) shall administer the Local Housing Trust Fund on behalf of the city. 2.Terms and Conditions of Repayment. The EDA shall determine the terms and conditions of repayment of loans and grants from the Local Housing Trust Fund, including but not limited to, the appropriate security and interest, if any, repayment should be required. Interest on loans and grants shall be established by the EDA from time to time or at the time of approval of a specific project or program. 3.Annual Report. The EDA shall report annually to the city on the use of the Local Housing Trust Fund, including the number of loans and grants made, the number and types of residential units assisted, and the number of households provided rental assistance and down payment assistance. Article II. Severability. Should any section or part of this ordinance be declared by a court of competent jurisdiction to be invalid, such decision will not affect the validity of the ordinance as a whole or any part other than the part declared invalid. Article III. Effective Date. This ordinance shall become effective after adoption and upon thirty days following its legal publication. ______May 12, 2025_____________ _____________________________ Date Mayor ATTEST:____________________________ Interim City Clerk (Strikeout indicates matter to be deleted, double underline indicates new matter.)