Title
RESOLUTION AUTHORIZING THE CONDITIONAL PRE-COMMITMENT OF $228,000 IN STATEWIDE AFFORDABLE HOUSING AID FISCAL YEAR 2026 FUNDS TO THE HOUSING AND REDEVELOPMENT AUTHORITY OF DULUTH FOR THE CONSTRUCTION OF THE MISSION HEIGHTS HOUSING PROJECT.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials hereby approve a pre-commitment of fiscal year 2026 funds to be received by the city as allocated by the Minnesota Housing Finance Agency ("MHFA") to the Housing and Redevelopment Authority of Duluth for construction of the Missions Heights housing 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 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 2026 MHFA Statewide Affordable Housing Aid allocation for the construction of the Mission Heights Housing project.
The proposed Mission Heights Housing project is located at 313 W 2nd Street, on the corner of West 2nd Street and North 3rd Ave West. Mission Heights Housing will be constructed on the second and third floors of the future Union Gospel Mission ("UGM") Engagement Center building, where the first floor will house a dining hall, a warming center, and other services for people experiencing homelessness. Mission Heights Housing will consist of 40 efficiency apartments offering permanent supportive housing to homeless single adults with high barriers to long term housing stability. All tenants will be at or below 50% of Area Median Income. UGM will take applicants from multiple referral sources including the coordinated entry system and homeless shelters/programs.
MHFA requires applicants to submit a City Council resolution of support to demonstrate local support and show that the project meets locally identified housing needs. A 2019 Maxfield Research...
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