Title
RESOLUTION UPDATING PROGRAM GUIDELINES FOR THE CITY OF DULUTH HOUSING TRUST FUND.
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CITY PROPOSAL:
WHEREAS, the Duluth Housing Trust Fund (“HTF”) was established on October 25, 2021 by City Ordinance 21-049-O (the “Ordinance”) to assist in filling existing gaps in the housing financing market to increase the housing stock in Duluth and invest in increasing availability of affordable housing units in all of the city’s neighborhoods; and
WHEREAS, consistent with the requirements in Sec. 2-170 a) of said Ordinance, HTF Programs that will be used to implement the HTF must be created by resolution of the City Council.
THEREFORE, BE IT RESOLVED, that, pursuant to Section 2-170 (a) of the city Code, 1959, as amended, the Housing Trust Fund Program hereby adopts updated program guidelines as set forth in Exhibit A attached.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to obtain City Council’s approval for programs that deploy the funds and implement the goals of City’s Housing Trust Fund (Exhibit A) for new construction and housing rehabilitation in Duluth. This resolution approves updates to the HTF program that establish a new fund exclusively dedicated to affordable housing and clarify guidelines for other eligible projects. Establishing a dedicated affordable housing fund is a requirement for accepting $225,000 in Local Housing Trust Fund Grant funds awarded to the City by the Minnesota Housing Finance Agency.
The City established the HTF in 2021 for the purpose of (1) increasing housing stock in Duluth, particularly affordable units; (2) investing in Duluth neighborhoods, making affordable units available citywide; (3) removing blight, improving safety, and encouraging pride in our neighborhoods; (4) leveraging existing municipal infrastructure; and (5) promoting density wherever possible.
The City operates the HTF in partnership with the Duluth Housing and Redevelopment Authority. Over the past four years the HTF has issued 17 loans totaling $5,524,228 and supporting 135 housing units. Of those 17 loans, 12 have supported 106 units of affordable housing.