Richfield Housing Authority Debates Loan Forgiveness Amidst Homeowner’s Medical Crisis

The Richfield Housing & Redevelopment Authority meeting on May 19, 2025, centered on a sensitive debate about loan forgiveness for a homeowner facing medical challenges, alongside discussions on property sales and community development initiatives. Key topics included a partial loan forgiveness decision for a homeowner, a property sale at the intersection of Richfield Parkway and 66th Street, and a new program aimed at enhancing local business aesthetics.

The most compelling issue discussed was the loan forgiveness request from Kathleen Broen, who had received a transformation loan of $8,445 in 1996 for home renovations. Following the death of her spouse, Mark Lowour, in 2014, Broen planned to stay in her home until the loan’s forgiveness date in July 2026. However, due to a recent medical diagnosis requiring her to move to accessible housing, she sought complete forgiveness of the loan to use house sale proceeds for medical expenses.

Staff outlined three options: full forgiveness, a prorated forgiveness of $281.50, or denial of forgiveness. One member favored the prorated option, noting its fairness. The deliberation highlighted the emotional weight of the situation, with one participant acknowledging the individual impact on the homeowner, while another stressed the importance of maintaining financial discipline.

Ultimately, the authority decided on partial forgiveness, with one member articulating the challenge of balancing compassion with financial integrity. The resolution emphasized the necessity for loans to be repaid while recognizing the homeowner’s circumstances.

Another agenda item was the proposed sale of a Housing Authority-owned property at the southeast corner of Richfield Parkway and 66th Street. Economic Development Manager Jan Youngquist described the 14,000-square-foot irregularly shaped property as unsuitable for standalone development. Dr. John Wool of Professional Dental Properties expressed interest in purchasing it for $67,000, contingent on terminating existing agreements and granting necessary easements. The property was part of a 2008 roundabout project, with a temporary easement agreement for parking that had expired in 2007.

The public hearing on this matter opened and closed quickly due to no public comments. Following a brief discussion on roadway easements, a motion to approve the property sale resolution passed without opposition, consolidating three related items.

In the realm of community development, the meeting introduced the “Richfield Economic Vibrancy Investment in Visual Enhancements,” or “revive” program. This initiative aims to improve the visual appeal of businesses in buildings constructed before 1995 by offering forgivable loans between $2,000 and $10,000 for exterior improvements visible from public spaces. Members expressed enthusiasm for the potential community benefits, highlighting how aesthetic enhancements could boost overall perception and vibrancy. The proposal received unanimous approval.

Additionally, the Executive Director announced upcoming meetings and community events, including a June 10th work session to discuss the redevelopment of the American Legion site on Portland Avenue. Members were encouraged to attend, given the relatively few sessions scheduled for the authority.

In concluding actions, the meeting swiftly approved claims and moved to adjournment, transitioning into an Economic Development Authority meeting. Similar procedural approvals ensued, with the introduction of a consent calendar item focused on preserving affordable rental communities. This session also approved the “revive” program, maintaining momentum for community development initiatives.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
Mayor:
Mary Supple
Housing Authority Officials:

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