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DRAFT/ Framework for Use of Statewide Affordable Housing Aid in Elk River through 2029 4/2/25 <br />Proposed Spending Plan Based on Expense <br />Habitat: $25,000 to Habitat for Humanity to acquire a lot for a new home, with home being built in <br />partnership with the school district. Habitat typically provides housing to a family in the 30-80% AMI <br />range. As much as a two-year lead time is needed between securing a lot and placing the home. Also <br />consider a multi-year arrangement to fund additional lots and homes. <br />County Partnership: $58,126 agreement with Sherburne County for to be modeled on Big Lake’s <br />agreement with Sherburne County. These funds would supplement existing Health and Human Services <br />department programs. <br />HRA Programming: $75,000 to be reserved for HRA-led programming. Specific program parameters will <br />need to be further developed by the board. The funding could be marked for expensing over multiple <br />years so there is a relatively equal distribution of funds per year, potentially up to $20,000 per year <br />through 2028. Some ideas the board has focused on are expanding the Rehab Loan program, providing <br />support to first-time homebuyers, offsetting costs of emergency repairs, safety improvements, rental <br />housing improvements, development grants. <br />Unallocated: A portion of the total funds, $72,592, would be unallocated to allow for flexibility and/or to <br />supplement existing spending areas. As the spending deadline approaches for each allocation of funding <br />(ie Dec. 31, 2027 for 2023 allocations), the city and HRA may return unspent funds to the state or turn <br />them over to a housing trust fund, in which case those funds will be considered spent per statute. <br />Proposed Source Year Funds Based on Funding Year Deadline <br />Funds deadline of December 31, 2027 - $94,063 (2023 allocation) <br />$25,000 to Habitat for Humanity for 2025/2026 property acquisition <br />$29,063 to Sherburne County Social Services Housing <br />$40,000 to HRA-related initiatives/programming <br />Funds deadline of December 31, 2028 - $94,063 (2024 allocation) <br />$29,063 to Sherburne County Social Services Housing <br />$35,000 to HRA-related initiatives/programming <br />$30,000 deferred/unallocated for flexibility through 2028 <br />Funds deadline of December 31, 2029 - $42,592 (2025 allocation) <br />$42,592 deferred/unallocated for flexibility through 2029 <br /> <br />Page 14 of 15