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Politics & Government

Richfield to Receive $181K From HUD

The City of Richfield plans to use the funds to purchase substandard housing and redevelop the land.

Richfield would receive $181,000 to help low-income residents with housing issues, a 15 percent drop from last year, under a plan approved by the Hennepin County Board of Commissioners Tuesday.

The money comes from the U.S. Department of Housing and Urban Development (HUD) in a program meant to combat blight and other urgent community issues. Because Congress was late in approving HUD's budget this year, Hennepin County is still waiting to see how much it will receive of the $2.6 million it requested for the program. 

Richfield's sum would be the second highest of the 10 suburbs the county applied on behalf of. HUD uses a formula that weighs poverty, population, how old houses are and how quickly the population is growing to determine what it gives out. Its funding was cut at the local level, and all Twin Cities suburbs took a cut this year.

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This year, the city will use its money to purchase and demolish a substandard house in order to build new affordable housing on the site in the future, said Karon Barton, the city's community development manager. In addition, unspent money from the program in past years is available to help low-income residents pay for necessary improvements to their homes. 

"Because of the number of foreclosed substandard properties out there right now that we can acquire at a very reasonable cost, and demolish to make way for new affordable housing, it just made sense this year to target our funds towards that," Barton said. "In years past, the cost for those things was too exorbitant." 

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City officials haven't decided which property they will buy, but Barton said they will use the money within a year and a half. Last year, the city sold a lot at a discount to Habitat for Humanity so the organization could build new housing. 

Residents who need work on their homes—like fixing a leaky roof or buying a new furnace—can apply for a "deferred mainenence" loan, which is a zero-interest loan that would be forgiven if the homeowner stays where they are for a certain number of years. More information on how to apply for the program is available on the city's website.

Fifteen percent of the money will go to social service agencies, like a renter's assistance program and a project to help senior citizens in the community. 

In addition, part of the money goes to the Community Action Partnership of Suburban Hennepin (CAPSH), which gives advice to citizens on housing repairs and foreclosure prevention. Last year, Richfield gave $5,000 to the program.

"These dollars are critical as the housing stock is aging," said Marcy Harris, director of planning and development at CAPSH. "People don't have the ability to live in their house or keep their houses safe without this type of assistance. It's especially critical with the number of people facing economic uncertainty or who are just plain poor."

Hennepin County Commissioners unanimously approved the request on Tuesday. HUD has said it will decide the amounts all counties will receive by the end of the month.

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