Richfield approves cooperative agreement allowing Metro HRA to add up to five family homes

The Richfield City Council voted unanimously on June 24 to approve Cooperative Agreement No. 2 with the Metropolitan Council’s Housing and Redevelopment Authority (Metro HRA), allowing Metro HRA to add up to five additional scattered-site family housing units in Richfield through the Family Affordable Housing Program.

Assistant Community Development Director Julie Urb introduced Metro HRA Director Terry Smith, who told council the authority currently owns 10 units in Richfield, the properties are managed by a private management company, and the portfolio has shown low turnover and few issues. Metro HRA said it had sold five homes elsewhere and was purchasing replacement homes, two of which are in Richfield; the new agreement brings those units under the local cooperative agreement.

Under terms discussed during the item, properties in the Family Affordable Housing Program are exempt from property taxes and instead pay a fee in lieu of taxes equal to 10% of the rent charged for each unit. The second cooperative agreement also provides Metro HRA an option to purchase up to three additional homes in Richfield at a later date.

Council members spoke in favor of the expansion, noting the challenge of locating family-size affordable housing and praising the scattering of homes across the community. After brief discussion the council voted in favor and approved Cooperative Agreement No. 2.

The agreement keeps the Metro HRA-owned units in the city’s affordable-housing portfolio and continues the arrangement for private management of the scattered-site homes.