EDA Agenda - 06/11/2025 (Workshop)AGENDA
WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, June 11, 2025 – 5:00 p.m.
Academy Room, Monticello Community Center
Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig,
Rick Barger, Clinton Berglof, Councilmember Tracy Hinz, Mayor Lloyd Hilgart
Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Tyler
Bevier, Anne Mueller, Sarah Rathlisberger
1. Call to order
2. Roll Call
3. Direct Housing Aide and Housing Trust Fund Ordinance Review-Discussion
4. Historic Plaque Signs Review-Discussion
5. Adjournment
HOUSING TRUST FUND
•Established in 2023 Statute 477A.36 – Statewide Local Housing Aid (section of Local Government Aid
Statute), which directs and identifies an annual amount of housing funding directed to cities.
•Intended as seed funding for qualifying affordable housing projects
•$60,870 in 2023 and in 2024; $30,435 in 2025; Total aid received = $152,175
•Funds may be used for activities including down payment assistance, rental assistance, and homebuyer
counseling, as well as matching other funding sources for housing projects.
•Aid is intended to be a permanent and renewable source of funding to meet housing needs for moderate,
low, and very low-income households.
•Trust Fund is a statutorily authorized means for cities to retain and manage the housing aid dollars if a
project is not committed to a qualifying project by December 31 in the third year following the year after the
aid was received.
•$60,870 received 12-31-2023; must be committed to a qualifying project by 12-31-2026
HOUSING TRUST FUND FRAMEWORK
•Establishes the fund
•Defines “affordable housing” for purposes of the fund
•Specifies sources of revenue for fund
•EDA can elect to make annual contributions to the trust fund
•Specifies allowable uses of the fund; consistent with statute
HOUSING TRUST FUND DECISION POINTS
•Administering Entity:
•City
•City with delegation of program development review and recommend by EDA as HRA
•HRA: Recommended given purpose and authority
•Affordable housing definition
•Income level identification
•Standard classifications used to define qualifying income levels
•HUD standard for matching funding opportunity
•Specify a number of units which must be affordable for multi-unit projects
•Later decision: Programs for use of the funds
HRA PURPOSE
(1) to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to protect
the health, safety, morals, and welfare of the citizens of this state;
(2) to clear and redevelop blighted areas;
(3) to perform those duties according to comprehensive plans;
(4) to remedy the shortage of housing for low and moderate income residents, and to
redevelop blighted areas, in situations in which private enterprise would not act without
government participation or subsidies; and
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ORDINANCE NO. 8XX
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
AN ORDINANCE AMENDING THE MONTICELLO CITY CODE TITLE III, ADMINISTRATION,
ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND FOR THE CITY OF MONTICELLO
THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS:
SECTION 1. Title III: ADMINISTRATION is hereby amended to add the underlined language as a
new Chapter 38 as follows:
CHAPTER 38: AFFORDABLE HOUSING TRUST FUND
§ 38.01 DEFINITIONS.
For the purpose of this chapter, the following definitions shall apply:
AFFORDABLE HOUSING. Housing where a unit or units have a monthly housing payment of not
more than 30% of the gross household income of persons of very low, low, or moderate
income, including rent, utilities, loan principal and interest, property taxes and insurance, and
homeowner association or common interest community (condo association) dues. For
developments of 2 units or more, at least ___% of units must meet this same requirement.
PERSONS OF VERY LOW INCOME. Families and individuals whose incomes do not exceed 50%
of area median income, as median income was most recently determined by the United States
Department of Housing and Urban Development for the Minneapolis-St. Paul-Bloomington,
Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families.
PERSONS OF LOW INCOME. Families and individuals whose incomes do not exceed 80 percent
of the area median income, as median income was most recently determined by the United
States Department of Housing and Urban Development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
PERSONS OF MODERATE INCOME. Families and individuals whose incomes exceed 80 percent,
but do not exceed 115% of area median income, as median income was most recently
determined by the United States Department of Housing and Urban Development for the
Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as
adjusted for smaller and larger families.
§ 38.02 ESTABLISHMENT OF AFFORDABLE HOUSING TRUST FUND.
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Pursuant to the authority granted to the city under Minnesota Statutes, Section 462C.16, an
affordable housing trust fund is established to support the development, rehabilitation, and
financing of affordable housing and provide down payment assistance, rental assistance and
home buyer counseling services to persons of very low, low and moderate income.
§ 38.03 ADMINISTRATION OF THE AFFORDABLE HOUSING TRUST FUND.
The City Council shall administer the affordable housing trust fund based upon the
recommendations of the Monticello Economic Development Authority (EDA) acting as the
Monticello Housing and Redevelopment Authority consistent with the requirements of this
chapter. Applications for funding for proposed projects or programs must submitted to the
Executive Director of the EDA who will then transmit application to EDA for review and
recommendation to Council or responsible EDA official to whom applications should be
submitted.
§ 38.04 FUNDING FOR AFFORDABLE HOUSING TRUST FUND.
The Affordable Housing Trust Fund shall be funded by funding directed to the City from the
Statewide Local Housing Aid fund as approved by the City Council. Other sources of funding
may include, but are not limited to:
(A) Private donations designated for the Affordable Housing Trust Fund;
(B) Bond proceeds;
(C) Grants and loans from a federal or state sources designated to fund an affordable
housing trust fund;
(D) Local government appropriations, including development fees and other funds as
designated by the City Council;
(E) Eligible Pooled Tax Increment;
(F) Investment earnings from the Affordable Housing Trust Fund; and
(G) Monticello Housing and Redevelopment Authority levies.
§ 38.05 FUNDING USES.
The City may use money from the Affordable Housing Trust Fund to assist proposed applicants
through housing programs designated by the EDA with funding the development of
rehabilitation of housing affordable for persons of very low, low and moderate income,
including but not limited to:
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(A) Making loans at interest rates below or at market rates in order to strengthen the
financial feasibility of proposed projects;
(B) Interest rate buy-down for private loan financing;
(C) Providing gap financing for affordable housing developments;
(D) Financing the acquisition, demolition, and disposition of property for affordable
housing projects;
(E) Financing construction of public improvements and utilities to aid proposed
affordable residential developments;
(F) Financing the rehabilitation, remodeling, or new construction of affordable housing;
(G) Tenant and project based rental assistance;
(H) Funding to facilitate affordable homeownership opportunities including down
payment assistance and home buyer counseling services;
(I) Administrative costs associated with affordable housing programs, not to exceed
10% of the balance of the Affordable Housing Trust Fund;
(J) Interim financing of public costs for affordable housing projects in anticipation of a
permanent financing source (i.e. construction financing, bond sale, etc.); and
(K) Other uses as permitted by law and approved by the City Council.
§ 38.06 TERMS AND CONDITIONS OF FUNDING.
The Monticello Housing and Redevelopment Authority shall propose to the City Council
appropriate terms and conditions for each loan or grant from the Affordable Housing Trust
Fund, including the appropriate security and interest, if any, should repayment be required. The
city council shall make a final determination on the terms and conditions for each loan or grant.
§ 38.07 ANNUAL REPORTING.
The Monticello Housing and Redevelopment Authority shall report annually to the city on the
use of the city’s Affordable Housing Trust Fund account, including the number of loans and
grants made, any associated matching funds from federal or state sources, the number and
types of residential units assisted through the account, and the number of households for
whom rental assistance payments and homebuyer counseling services were provided. The city
shall post the report on its website.
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SECTION 2. This ordinance shall be effective immediately upon its passage and
publication.
ADOPTED by the City Council of the City of Monticello, Minnesota this ___ day of _____, 2025.
______________________________
Lloyd Hilgart, Mayor
ATTEST:
_____________________________
Jennifer Schreiber, City Clerk
AYES:
NAYS: