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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />4.4 <br /> <br />Meeting Date <br />November 3, 2025 <br />Prepared By <br />Joshua Mollan, Economic Development Specialist <br /> <br />Item Description <br />Professional Services Agreement 25-31: Statewide <br />Affordable Housing Aid Disbursement to Main <br />Street Family Services <br />Reviewed by <br />Brent O'Neil <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />Approve, by motion, execution of the professional services agreement 25-31 with Main Street Family Services <br />to distribute SAHA funds. <br /> <br /> <br />Background/Discussion <br />The city has received annual Statewide Affordable Housing Aid (SAHA) allocations from the State of <br />Minnesota for qualifying affordable housing uses since December 2023. <br /> <br />The city's current balance is roughly $210,000. Following a recommendation from Sherburne County Health <br />and Human Services, the HRA met with representatives from Main Street Family Services (MSFS) and <br />ultimately approved a recommendation to the Council to approve the agreement to distribute $50,000 to <br />MSFS through December 31, 2026. <br /> <br />Main Street Family Services is a local social services non-profit. With these funds, MSFS will support eligible <br />residents of Elk River by means of emergency rental/mortgage assistance, utility payments to avoid shut-offs, <br />and other housing-related assistance. The key terms of the agreement are as follows: <br />• Follow the eligibility criteria set by the Minnesota Department of Revenue and Department of <br />Housing. <br />• $50,000 from the agreement date to December 31, 2026 with $10,000 on execution, and $10,000 <br />every 90 days following. <br />• Limited to serving only Elk River residents. <br />• No payments will be directly given to recipients; instead, given to landlords, banks, utilities, etc. <br />• Payments not to exceed $3,000 annually per household. <br />• 10% cap on administration expenditures. <br />• MSFS is to report to the city quarterly. <br /> <br /> <br />Financial Impact <br />$50,000 to be drawn from the Development Fund. <br />Page 56 of 322