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RESOLUTION AUTHORIZING THE ACCEPTANCE OF A $225,000 LOCAL HOUSING TRUST FUND GRANT FROM THE MINNESOTA HOUSING FINANCE AGENCY FOR THE DULUTH HOUSING TRUST FUND.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to accept a Local Housing Trust Fund Grant from the Minnesota Housing Finance Agency, in the amount of $225,000, substantially in the form of that attached as Document A, to support the Duluth Housing Trust Fund, funds to be deposited into Fund 266-020-4270 (Housing Trust Fund - Planning - Other Grants).
FURTHER RESOLVED, that the city of Duluth and the Duluth Housing Trust Fund will meet the required local match of $300,000, through funds previously invested in the Duluth Housing Trust Fund by City Council Resolution No. 21-0819.
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STATEMENT OF PURPOSE: This resolution authorizes the proper city officials to accept a Local Housing Trust Fund Grant from the Minnesota Housing Finance Agency (“MHFA”), awarded to the Duluth Housing Trust Fund in the amount of $225,000. The Local Housing Trust Fund Grant functions as a reimbursement grant, where the awardee must spend matching new public revenue on eligible uses to receive the grant funds. In this case, the original $4,000,0000 investment by the City of Duluth to establish the Duluth Housing Trust Fund in 2021 will serve as the matching new public revenue and the Duluth Housing Trust Fund will be reimbursed for eligible loans that were previously issued by the program. The new grant funds will be used to fund low- and no- interest construction loans for eligible affordable housing projects through the Duluth Housing Trust Fund’s Affordable Housing sub-program. The grant funds will support the development and rehabilitation of affordable housing units in Duluth.