TIF Scattered Site Housing Rehabilitation Program Request for Qualifications Information Meeting February 23 rd, 2017 Erika Byrd Economic Development Specialist City of Brooklyn Park
Tax Increment Financing (TIF) Scattered Site Housing Rehabilitation Program This is a new Brooklyn Park EDA program 2017 budget includes $500,000 in local TIF dollars for program Goal is 9-10 homes EDA seeking development partners for program 2
Brooklyn Park Housing Rehabilitation History Since 2009, through its Foreclosure Recovery Program, the EDA has partnered with developers to buy, rehab and resell foreclosed homes 193 vacant homes rehabbed and returned to home ownership $9.5M in federal, state and local funding 2017- Foreclosure Recovery Program ends and new TIF Scattered Site Housing Rehabilitating program starts 3
Active Foreclosures Active Vacancies 4
Program Overview Developer finds property, negotiates Developer purchases home (City provides financing) Developer project manages construction Developer (or their partners) resells home EDA provides development gap funding (difference between the total development costs and fair market value resale price). Targeting gaps of $30,000 - $50,000. Project budget/development gap includes a developer fee of 8% of the greater of Acquisition and Rehabilitation Costs or Sale Price and a marketing fee of up to 5% of the greater of Acquisition and Rehabilitation Costs or Sale Price 5
Key Elements of Program Eligible Properties Located anywhere in Brooklyn Park Single family detached or twin homes. Vacant Distressed - must meet at least one of the following criteria: Structurally substandard Unhealthy, unsanitary, unsafe Presenting a risk of development or spread of blight or deteriorating areas Detrimental to the safety, health, morals, or welfare of the community. Staff will prioritize the most distressed houses in Brooklyn Park and have discretion over whether or not a property is approved. 6
Acquisition Key Elements of Program developers pursue properties in the open market Foreclosed properties in First Look program gives City-funded developers priority to purchase of vacant and foreclosed homes before they are publicly listed A loan from the EDA will be used to fund acquisition. The loan will be secured with a first mortgage and promissory note. 8
Key Elements of Program Rehabilitation Must meet City s rehabilitation standards Rehabilitation must start within 60 days of the acquisition closing. Rehabilitation complete within 160 days after commencement. Exceptions to this timing may be authorized on a case-by-case basis. 9
Key Elements of Program Resale must be re-sold to eligible owner-occupants. A declaration of restrictive covenants recorded against all homes to prohibit the rental of the homes for 30 years. The home must be initially purchased and occupied by individuals whose family income does not exceed 100% AMI for households of 1-2 persons or 115% AMI for households of 3 or more persons Homebuyers must spend approximately 30 percent or less of their income on housing Homebuyers must also complete at least 8 hours of homebuyer counseling and meet with City staff No buyers assistance with this program Development partner does initial eligibility and income verification. City staff certifies homebuyer 10
RFQ Timeline February 15 February 24 March 2 March 7 March 9 March 14 March 20 31 April 17 RFQ distributed Informational meeting Informational meeting Deadline for questions Final posting of answers Deadline for application to be received Potential candidates interviewed Economic Development Authority action 11
Selection Criteria Relevant housing experience 35 Familiarity/experience with publicly funded housing programs 15 Organizational capacity 15 Financial resources 10 Brooklyn Park business owner or resident 10 Business that is Veteran-owned, Woman-owned, Person of Colorowned or Section 3 10 References from former clients or partners 5 TOTAL 100 12
Resources http://www.brooklynpark.org/rfp/ Application and instructions posted Questions and answers will be posted on March 9. Deadline for questions is March 7 13
Thank you! Erika Byrd Economic Development Specialist Erika.byrd@brooklynpark.org 763-493-8087 City of Brooklyn Park 5200 85 th Ave. N. Brooklyn Park, MN 55443 763-424-8000 www.brooklynpark.org Facebook: /brooklynparkmn Twitter: @brooklynpark YouTube: /user/brooklynparkmncity