Title
RESOLUTION OF SUPPORT FOR CENTER CITY HOUSING CORPORATION’S REQUEST TO THE STATE OF MINNESOTA FOR QUALIFYING MULTIFAMILY FUNDING AND A CONDITIONAL PRE-COMMITMENT OF $200,000 FISCAL YEAR 2024 FUNDING ALLOCATION TO THE CITY OF DULUTH FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR THE REDEVELOPMENT OF THE 70 UNIT NEW SAN MARCO APARTMENTS PROJECT.
Body
CITY PROPOSAL:
RESOLVED, that the City of Duluth hereby expresses its support for Center City Housing Corporation’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 70-unit multifamily apartment building currently serving chronically homeless and chemically dependent individuals in the Downtown neighborhood (the “Project”).
BE IT FURTHER RESOLVED, that the proper City officials hereby approve a pre-commitment of Fiscal Year (FY) 2024 funds to be received by the City of Duluth as allocated by the Department of Housing and Urban Development (HUD) for rehabilitation of the Project. The award of $200,000 subject to the receipt thereof from HUD, and the Developer, Center City Housing Corporation, securing the necessary funding from MHFA and other funding sources and to the approval of a development agreement between the City and Developer thereof.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution expresses the City Council’s support of an application to be submitted to MHFA by Center City Housing Corporation (CCHC), for low-income housing tax credit and other Multifamily Consolidated RFP funding that may be awarded by MHFA for the rehabilitation of the New San Marco Apartments. 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 provides for a pre-commitment of a portion of the City’s FY 2024 HUD allocation for rehabilitation of the New San Marco Apartments. The Community Development Committee considered the request by CCHC for pre-commitment funds at their March 21, 2023. The Committee voted to recommend City Council approval of the proposed resolution.
The building is located in the Downtown neighborhood of Duluth at 230 West 3rd Street. The building has reached its 15-year tax credit timeline and needs signification renovation to ensure it remains in good condition to serve the current tenant population for the next 20 years. The 70-unit building serves chronically homeless and chemically dependent individuals experiencing homelessness with integrated housing and supportive services.
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.