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Resolution AUTHORIZING A GRANT AGREEMENT WITH THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY (DEDA) FOR THE HOUSING TRUST FUND AND APPROVING DEDA RESOLUTION 26D-03 authorizing deda EXPEND AN AMOUNT OF UP TO $1,250,000 TO SUPPORT THE HOUSING TRUST FUND
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to execute a grant agreement, substantially in the form of the attached Document 1, with the Duluth Economic Development Authority (“DEDA”) to accept a grant in the amount of up to $1,250,000 to support the housing trust fund, said funds to be deposited into Fund No 266 (Housing Trust Fund).
FURTHER RESOLVED, pursuant to Resolution 25-0279, the city council hereby approves DEDA Resolution No. 26D-03 authorizing the proper DEDA officials to enter into a grant agreement, substantially in the form of Document A, with the city of Duluth, to support the housing trust fund in an amount not to exceed $1,250,000.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the City’s acceptance of a grant from the Duluth Economic Development Authority (“DEDA”) in the amount of $1,250,000 to support the Housing Trust Fund. Moreover, the purpose of this resolution is to obtain City Council’s approval of DEDA Resolution No. 26D-03 authorizing the proper DEDA officials to enter that same grant agreement with the City of Duluth.
The Housing Trust Fund was established by ordinance in 2021 and began making construction loans to support housing projects in 2022. Since the program launched, the Housing Trust Fund has issued 17 loans totaling more than $5,500,000 and supported the creation of 135 housing units, 106 of which are considered affordable. In 2025, City Council approved updates to the Housing Trust Fund Program Guidelines that established a dedicated fund to support affordable housing projects and clarified that Housing Trust Fund loans may be used for site preparation. Approximately $775,000 of DEDA’s grant will support the Affordable Housing Fund and the balance will support the Housing Trust Fund's existing General Fund.
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The Housing Trust Fund was initially seeded with $4,000,000 from the City’s general fund. The Housing Trust Fund earns a small amount of interest on its loans, has received past levy contributions, and was awarded a state grant in 2025, but has no regular source of income. This Grant Agreement will ensure that the Housing Trust Fund continues to serve as a meaningful resource for housing developers in Duluth.