Title
RESOLUTION OF SUPPORT FOR ONE ROOF COMMUNITY HOUSING’S REQUEST TO THE STATE OF MINNESOTA FOR QUALIFYING MULTIFAMILY FUNDING AND THE CONDITIONAL PRE-COMMITMENT OF UP TO $500,000 OF CITY BROWNFIELD REVOLVING LOAN FUNDING FOR THE REHABILITATION OF THE 121 UNIT FAITH HAVEN APARTMENTS PROJECT.
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CITY PROPOSAL:
RESOLVED, that the City of Duluth hereby expresses its support for One Roof Community Housing’s request to Minnesota Housing Finance Agency (MHFA) for the allocation of low-income housing tax credits and/or other funding provided by MHFA, to rehabilitate a 121-unit affordable multifamily apartment building for seniors in the Spirit Valley neighborhood (the “Project”).
BE IT FURTHER RESOLVED, that the City Council of the City of Duluth does hereby conditionally pre-commit up to $500,000 from the City’s Brownfield Revolving Loan Fund to support qualifying asbestos removal costs associated with the Project, subject to the Developer, One Roof Community Housing, successfully securing the necessary funding from MHFA and other funding sources to ensure project completion by 2026 and to the approval of a development agreement between the City and the Developer.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution expresses the City Council’s support of an application to be submitted to MHFA by One Roof Community Housing (One Roof), for low-income housing tax credit and other Multifamily Consolidated RFP funding that may be awarded by MHFA for the rehabilitation of the Faith Haven Apartments project. The deadline for submission of the application to MHFA is July 13, 2023. MHFA intends to finalize funding decisions at their December 14, 2023 board meeting. Additionally, this resolution expresses support of a pre-commitment of up to $500,000 from the City’s Brownfield Revolving Loan Fund (BRLF). The City and Developer will negotiate a formal development agreement and solicit Council approval for use of BRLF funds, subject to the Developer successfully securing the necessary funding from MHFA and other sources to ensure construction completion by 2026.
The project is located in the Spirit Valley neighborhood of Duluth at 4901 Grand Avenue. Rehabilitation of this 121-unit multifamily apartment will provide significant updates to building systems and apartment units that were originally constructed in 1970. This work will include asbestos abatement, reconfiguration of bathrooms to meet ADA compliance standards, installing energy efficient windows, installing a VRF system to enhance ventilation and provide air conditioning, updates to fire sprinklers, and updates to each living unit including kitchens and exterior updates including a drive-under entry canopy. The project will ensure quality living conditions for seniors 62+.Thirteen units are income restricted for individuals earning 80% or less of Area Median Income, 47 units are income restricted for individuals earning 60% or less of AMI, 36 units are income restricted for individuals earning 50% or less of AMI, and 25 units are income restricted for individuals earning 30% of AMI or less.
MHFA requires applicants to submit a City Council resolution of support to demonstrate local support and that the project meets locally identified housing needs. A 2019 Maxfield Research Inc. housing analysis reported that Duluth could absorb roughly 3,500 additional units of affordable housing by 2024. The demand for this type of housing has been further substantiated through staff research and analysis during both the Imagine Duluth 2035 comprehensive plan update and annual Housing Indicator Reports. Preservation of existing affordable housing in our community ensures current tenants do not face displacement.