Title
RESOLUTION OF INTENT TO SUPPORT THE REQUEST BY ONE ROOF COMMUNITY HOUSING TO THE STATE OF MINNESOTA FOR THE AWARD OF LOW-INCOME HOUSING TAX CREDITS FOR THE 42-UNIT DECKER DWELLINGS HOUSING DEVELOPMENT.
Body
CITY PROPOSAL:
RESOLVED, that the Duluth city council hereby expresses its support for One Roof Community Housing’s request for funding to the Minnesota housing finance agency for low-income housing tax credits to assist in financing and development of the Decker Dwellings housing development.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution expresses the city council’s support of an application to be submitted to the Minnesota Housing Finance Agency (MHFA) by One Roof Community Housing for low-income housing tax credits that may be awarded by MHFA for development of the 42-unit Decker Dwellings apartment development. The deadline for submission of One Roof’s application to MHFA is June 3, 2019.
The Decker Dwellings development is a 42-unit apartment building located off of Decker Road in Duluth, adjacent to the Scheiderman’s Furniture store near the Miller Hill Mall. The proposed development will include 10 one-bedroom, 21-two-bedroom, and 11 three-bedroom apartments units. Four units will be reserved as permanent supportive housing units for homeless individuals with services provided by the Human Development Center and rental assistance in the form of Section 8 vouchers. In addition, One Roof is preparing to include four units to serve households with disabilities as services and rental assistance permit. This location is near employment areas (Matterhorn Mall, Miller Hill Mall, other retail operations and offices) and grocery stores. There is a bus stop within a quarter mile of the site.
Decker Dwellings will be using the new Section 42 “Income Averaging” formula, which will make the units in the building available and affordable to people with incomes from below 30% of Area Median Income (AMI) to 80% AMI. The overall rents will average 60% AMI. 10 one-bedroom units will have rents $595 to $710; 21 two-bedroom units will have rents $731 to $965, and 11 three-bedroom units will have rents $835 to $1,114.
|
Household Size |
30% AMI |
60% AMI |
80% AMI |
|
1 |
$15,000 |
$30,000 |
$40,000 |
|
2 |
$17,160 |
$34,320 |
$45,760 |
|
3 |
$19,290 |
$38,580 |
$51,440 |
|
4 |
$21,420 |
$42,840 |
$57,120 |
MHFA requires tax credit applicants for housing developments in Duluth to receive the support of the city council. The support is required to assure that a given proposal is a priority for the City of Duluth, and that it meets a locally identified housing need. The 2014 Maxfield housing study for the City of Duluth identified the need for more rental units for households earning $50,000/year or less. The demand for this type of housing has been further considered through other staff analysis, including evaluation of the Mall Area Core Investment Area, through the analysis conducted as part of the Imagine Duluth 2035 comprehensive plan update, and has been confirmed during development of the annual Housing Indicator Report.