Title
RESOLUTION AUTHORIZING THE GRANT OF $341,422.54 IN LOCAL AFFORDABLE HOUSING AID FUNDS TO CENTER CITY HOUSING CORPORATION FOR THE WADENA WEST PROJECT
Body
CITY PROPOSAL:
WHEREAS, the city received $519,641 in Local Affordable Housing Aid in late December of 2023 with specific requirements requiring funds under this aid program be used on a qualifying project;
WHEREAS, Center City Housing Corporation had unexpected additional construction costs for the Wadena West affordable housing project following soil testing;
WHEREAS, the city finds that the Wadena West housing project meets the specific Minnesota Local Affordable Housing Aid qualifying project requirements; and
WHEREAS, the city desires to grant funds to Center City Housing Corporation for the additional costs associated with the soil conditions.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to grant $341,422.54 in Local Affordable Housing Aid funds to Center City Housing Corporation for the Wadena West project which will be administered through city Fund 210-030-3213-5458.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the grant of $341,422.54 in Local Affordable Housing Aid funds to Center City Housing Corporation for the Wadena West affordable housing project. Center City Housing was awarded HUD HOME funds in 2023 to develop a 60-unit permanent supportive housing project on the corner of Wadena Street and 52nd Ave West. As a result of soil evaluations and environmental review, it was determined the soil was not sufficient to hold a three-story 48,000-square-foot building. There was significant testing and discussion on the condition of the soil. The experts determined the solution to the problem was to balance the soil and leave that in place for a nine-month settlement period and add aggregate piers to the foundation. This resulted in an additional $341,422.54 in project costs.
In December 2023, the city received $519,641 of Local Affordable Housing Aid to assist with affordable housing projects. The city finds that the Wadena West project is a qualifying project eligible for use of this aid as it meets the specific criteria, as follows:
• Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing;
• Projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have incomes which do not exceed, for rental housing projects, 80% of the greater of state or area median income as determined by the United States Department of Housing and Urban Development; and
• Projects are prioritized that provide affordable housing to households that have incomes that, for rental housing projects, do not exceed 50 percent of the greater of state or area median income as determined by the United States Department of Housing and Urban Development.