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Benton County adopts loan-based Housing Trust Fund guidelines amid $297,370 starting balance
Summary
The County Board voted to adopt program guidelines for the newly established Benton County Housing Trust Fund: a loan-based gap-finance model with loans up to $200,000, affordability limits tied to AMI, and use of State Affordable Housing Aid funds already allocated to the trust.
Amanda presented new program guidelines to the board for the Benton County Housing Trust Fund, established by Benton County ordinance 498 to provide a renewable local funding source for housing activities.
Under the adopted guidelines the fund will operate primarily as a loan program intended to address financing gaps in affordable housing development. Key features the board reviewed include loans of up to $200,000 per project, interest rates up to 1% above prime, terms generally up to 18 months (24 months for demolition-plus-rehab projects), and a per-entity limit of two open loans. Rental units financed through the program must serve households at or below 80% of area median income (AMI); in the St. Cloud metro area AMI is $103,200, making 80% AMI roughly $82,560. Ownership units must be affordable at or below 100% AMI.
Amanda told the board that the fund’s current balance is approximately $297,370, comprised of State Affordable Housing Aid (SAHA) funds the county allocated and that Benton Economic Partnership manages on the county’s behalf. She explained eligible uses are limited to hard construction costs, utility infrastructure and site-related improvements; soft costs, acquisition, and operating expenses were excluded.
Commissioners noted administrative work associated with managing loans and directed staff to consider administrative allocations during the budget process. A motion to adopt the program guidelines was moved, seconded and carried.
What happens next: Applications will be routed through Benton Economic Partnership for eligibility screening, the Finance Committee will review loans, and the County Board will consider full applications for funding.
