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HRA seeks HUD sign‑off and city clears title to speed housing project; council OKs local steps
Summary
The Hibbing Housing Redevelopment Authority advanced a Section 18 application and related approvals: council authorized the city to support DEED cleanup and HUD Section 18 documents, committed to seek a local match, and approved a quitclaim deed to establish New Haven Drive right‑of‑way to clear title for financing.
The Hibbing City Council on April 15 approved steps to advance a Housing Redevelopment Authority housing project, including resolutions authorizing a Minnesota DEED cleanup grant application, approving parts of a HUD Section 18 submission and authorizing a quitclaim deed for New Haven Drive to clear title for project financing.
HRA executive director Jackie Prescott told the council the HRA had completed the Part 58 environmental review and that the review produced a Finding of No Significant Impact (FONSI) and a release of federal funds; she said the notice had been published and that no public comments were received during the review period. Prescott said the funds being requested from HUD are capital funds intended to assist with resident relocation as part of the Section 18 conversion and estimated those capital costs at about $645,000 (estimate provided by HRA in the meeting).
Community economic developer Miss Olivanti asked the council to pass a resolution allowing the city and the HRA to apply for Minnesota Department of Employment and Economic Development (DEED) Cleanup Grant funds for the Cobb Cook Place project; she said the consultant advised that the HRA is an eligible applicant but the city must pass a resolution saying the project can proceed in the community. Olivanti also outlined the likely local match requirement: the total cleanup project is roughly $170,000 and the DEED program’s historic local match expectation is 25%, with roughly half of that (about 12.5%) required from undesignated funds — Olivanti said that 12.5% could be in the $17,000–$20,000 range and that staff would identify the exact source.
Separately, council considered a late resolution authorizing execution of a quitclaim deed and road dedication for New Haven Drive so the HRA could demonstrate clear title and access for lender review. Mr. Borland explained the quitclaim deed is intended to transfer the road parcel into the city’s road system to clear title for financing; the legal description will be attached to the recorded deed when finalized. Council approved both the deed authorization and acceptance for recording.
City engineering and HRA representatives also discussed sequencing: site utility work and road construction must precede building access, the city awarded a bid for New Haven Drive roadwork and is coordinating utility tie‑ins. Prescott said HUD review of the Section 18 materials typically takes a short federal review (she said HUD would hold the documents for 15 days) and that, pending HUD approvals, she was targeting a June groundbreaking. She added that contractors are not formally being notified until close to a confirmed closing date to ensure they can meet the tight construction window.
What happens next: the mayor will sign the HUD/Section 18 documents already approved by council and staff will finalize the quitclaim deed legal description and record it to provide the HRA the clear title documentation required for financing. Any outstanding funding source for the local DEED match will be reported back to council.
