Title
RESOLUTION AUTHORIZING THE CONDITIONAL PRE-COMMITMENT OF $228,000 IN STATEWIDE AFFORDABLE HOUSING AID FISCAL YEAR 2027 FUNDS TO ONE ROOF COMMUNITY HOUSING FOR THE FAITH HAVEN APARTMENTS REHABILITATION PROJECT.
Body
CITY PROPOSAL:
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 Minnesota Housing Finance Agency (“MHFA”) for rehabilitation of the Faith Haven Apartments, a senior living facility in the Spirit Valley neighborhood (the Project”); the award of $228,000 subject to the receipt thereof from MHFA, the developer securing the necessary funding from MHFA and other funding sources to complete the Project and to the approval of a development agreement between the city and developer thereof.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution provides for a pre-commitment of the City’s Fiscal Year 2027 MHFA Statewide Affordable Housing Aid allocation for the Faith Haven Apartments rehabilitation project.
Faith Haven Apartments is located at 4901 Grand Avenue, Duluth, MN, 55807, and is a 62+ senior building made up of 121 1-bedroom units and 1 2-bedroom unit. The building was originally built in 1970 using a HUD-guaranteed loan which satisfied its 40-year commitment in 2012. Faith Haven Apartments is owned and run by a mission-driven single-purpose non-profit whose board made the decision to remain a provider of affordable housing even after their HUD commitment ended.
The building primarily serves extremely low-income people. Fifty-four percent of the units are currently occupied by people with incomes at or below 30% of Area Median Income and an additional thirty-five percent of the units are occupied by people with incomes at or below 50% of Area Median Income. The remaining units are occupied by people who have incomes at or below 80% of Area Median Income. The building is also nearly 60 years old and in need of significant rehab work, including asbestos abatement, to keep the units in livable condition. Faith Haven Apartments fills a critical affordable housing need in Duluth and can only be preserved with financial assistance from the City of Duluth and Minnesota Housing.