Council questions capacity, approves new Barnes Fund awards and contract extensions

The Metropolitan Council approved new and reauthorized grants from the Barnes Fund for affordable and workforce housing, while members pressed staff on project capacity and timelines.

Council approved RS2025-1523, authorizing grants not exceeding $9,750,000 from the Barnes Fund for the construction and rehabilitation of affordable and workforce housing, and RS2025-1524, authorizing grants not exceeding $6,328,415.10 to fund previously expired grants. The two items were discussed separately after being removed from the consent agenda; both passed on voice votes.

Councilman Spain asked whether the new grants accounted for amounts that would be reauthorized under RS2025-1524 and whether the recipient organizations could expend the funds within the contract terms. Angie Hubbard, Housing Director, Metro Planning, said these were ‘‘new awards for new grants’’ and are distinct from the older projects being reauthorized. "In February, the staff and the Housing Trust Fund Commission opened a new funding round, putting out a little over $35,000,000," Hubbard said, noting the new awards were selected from roughly $70,000,000 in requests.

Councilwoman Suarez pressed why so many projects required extensions. Hubbard said staff and the Housing Trust Fund Commission are tightening award criteria to speed projects to market and that some projects now seeking reauthorization were awarded under earlier, less stringent criteria. "Pulling back the money and not extending contracts means that we have a project that's under construction ... that can't get built if we don't extend," Hubbard said, adding the department is implementing measures such as a special affordable housing permit to fast-track reviews.

A related amendment item (RS2025-1526) that extends a grant contract and adds five additional houses drew a question from Councilwoman Swara. Director Howard explained there was no change to the Barnes Fund award amount and that the five additional houses are not income-restricted units funded by Barnes Fund; the project redesign allowed those extra units without additional Barnes funding. "There is no change to the grant amount. The 5 new homes are actually not Barnes Fund," Director Howard said.

Council members did not record any ‘no’ votes on these items; motions carried by voice vote.