Title
RESOLUTION OF SUPPORT FOR THE REQUEST BY ONE ROOF COMMUNITY HOUSING TO THE STATE OF MINNESOTA FOR QUALIFYING MULTIFAMILY FUNDING AND A CONDITIONAL PRE-COMMITMENT OF $400,000 FISCAL YEAR 2027 FUNDING ALLOCATION TO THE CITY OF DULUTH FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE CONSTRUCTION OF THE DECKER 2 PROJECT.
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CITY PROPOSAL:
RESOLVED, that the city council hereby expresses its support for One Roof Community Housing’s (“One Roof”) request to Minnesota Housing Finance Agency (“MHFA”) for the allocation of low-income housing tax credits and/or other funding provided by MHFA to construct Decker 2, a 45-unit affordable multifamily apartment building (the “Project”).
FURTHER RESOLVED, that the proper city officials hereby approve a pre-commitment of fiscal year 2027 funds to be received by the city as allocated by the U.S. Department of Housing and Urban Development (“HUD”) for construction of the Project; the award of $400,000 is subject to the receipt thereof from HUD, the developer One Roof 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 One Roof, for low-income housing tax credits and other Multifamily Consolidated Request for Proposal funding that may be awarded by MHFA for the construction of the Decker 2 project. The deadline for submission of the application to MHFA is July 9, 2026. MHFA intends to finalize funding decisions in December 2026. Additionally, this resolution provides for a pre-commitment of a portion of the City’s Fiscal Year 2027 HUD allocation for the construction of the Decker 2 project. The Community Development Committee considered the request by One Roof Community Housing for pre-commitment funds at their April 21, 2026 meeting. The Committee voted to recommend City Council approval of the proposed resolution.
The proposed Decker 2 project is located on Decker Road, adjacent to Decker Dwellings near Miller Hill Mall. The project consists of the construction of a 45-unit affordable apartment building. Decker 2 will primarily target families and larger households by offering one-, two-, and three-bedroom units, with most units being two-bedroom. All units will have rent and income restrictions below 50% AMI, with many units further restricted to households earning below 30% AMI. Together with services support from Families Rise Together, the project will designate seven (7) units as permanent supporting housing units for individuals experiencing homelessness and five (5) units for households with a member with a disability. In addition, 20 Bring It Home vouchers through the Duluth Housing and Redevelopment Authority will serve many of the two- and three-bedroom units.
The MHFA Multifamily Consolidated Request for Proposals is highly competitive. Including a City Council resolution of support and commitment of future city-allocated HUD funds in the application demonstrates local backing and alignment with Duluth’s housing needs, strengthening the application and improving the project’s likelihood of selection for MHFA funding.
The Duluth Comprehensive Housing Needs Analysis, a study completed by Maxfield Research & Consulting in 2025, reported that Duluth has a demand for 2,094 additional affordable housing units by 2030. The development of the Decker 2 project would help meet this need.