Crow Wing County board approves intent to apply for state housing trust fund matching grant

Crow Wing County commissioners on Feb. 11 authorized an intent-to-apply (ITA) for Minnesota’s local housing trust fund matching program, clearing the way for the Housing and Redevelopment Authority (HRA) to apply for up to $225,000 in one-time matching dollars.

Eric Charpentier, representing the Crow Wing County HRA, told the board the state first set aside $1 million for local trust fund matches in 2021 and later added $4.8 million in one-time funds, bringing the pool to $5.8 million. Charpentier said the program allows a 1-to-1 match up to $150,000 and then a 1-to-2 match for the next $150,000, producing a maximum award of $225,000 under the state formula. He said Minnesota Housing will retroactively count qualifying local contributions made between June 29 and July 29, 2021.

"This is a program that is going to supplement funds and increase our reach for our constituents in Crow Wing County to hopefully create those local housing solutions," Charpentier said.

The HRA provided the board a summary of current trust fund balances. County materials noted roughly $2.9 million in total revenue to the trust fund, about $1.3 million already loaned out and a presently available balance of about $260,000. Charpentier said the grant dollars would be added to the revolving loan pool used for down-payment assistance, rehabilitation loans and development or redevelopment projects.

Commissioners asked procedural and fiscal questions before the vote. Administrator Erickson and HRA staff confirmed that (1) the ITA was due the day of the meeting at 5 p.m., (2) the subsequent RFP window was expected to open the next day for roughly 30 days, and (3) the county would not be required to replenish any awarded state match from the general levy as a condition of the grant, though the HRA may request levy support under its separate authority during budget cycles.

Commissioner Coring said he would vote no, arguing broadly against additional public spending and citing concerns about using property tax resources for loans that could be perceived as giveaways. "I will be voting no on this today," Coring said. Commissioner Lopke moved to approve the ITA application; Commissioner Franzen seconded. The roll call was Commissioner Lee: No; Commissioner Koehring: No; Commissioner Franzen: Aye; Commissioner Lubcke: Aye; Commissioner Burrows: Aye. The motion passed 3-2.

The ITA authorizes staff to submit the required notice of intent so the county (via the HRA) can respond to the forthcoming RFP. The board did not adopt any additional restrictions or earmarks for how the state match would be used beyond the HRA’s existing program purposes for the trust fund.

Board action

- Motion: Approve intent to apply (ITA) for Minnesota local housing trust fund matching grant and authorize HRA to submit application materials. - Mover: Commissioner Lopke. Second: Commissioner Franzen. - Vote: Lee: No; Koehring: No; Franzen: Aye; Lubcke: Aye; Burrows: Aye. Outcome: approved (3-2).

Why it matters

The one-time state pool is intended to expand local revolving funds that finance home repairs, down-payment assistance and housing development. If awarded, the matching dollars would increase the HRA’s lending capacity without adding a separate new program; funds would flow into the existing trust fund and be lent as revolving loans.

What’s next

The ITA was submitted; the RFP window was expected to open the next day. If Crow Wing HRA submits a full application, award decisions will follow Minnesota Housing’s RFP timeline and criteria.