Title
RESOLUTION OF INTENT TO SUPPORT THE REQUEST BY GRANT CARLSON TO THE STATE OF MINNESOTA FOR THE AWARD OF FOUR PERCENT LOW-INCOME HOUSING TAX CREDITS FOR THE REDEVELOPMENT OF THE HISTORIC SAINT LOUIS COUNTY JAIL INTO 31 HOUSING UNITS KNOWN AS THE BURNHAM.
Body
CITY PROPOSAL:
RESOLVED, that the Duluth city council hereby expresses its support for Grant Carlson's request for funding to the Minnesota Housing Finance Agency (MHFA) for 4% low-income housing tax credits to assist in financing and redevelopment of the historic Saint Louis County Jail into a 31-unit housing development known as The Burnham.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution expresses the city council's support of an application to be submitted to the MHFA by Grant Carlson for low-income housing tax credits that may be awarded by MHFA for the redevelopment of the historic Saint Louis County Jail into 31-housing units. The new development will be called The Burnham. The request is for an estimated $3,845,074 in housing tax credit financing to support the $9,664,513 housing development. The developers claim 45 points[AF1] on the "Self-Scoring Worksheet 2019 Housing Tax Credit Program", which MHFA uses to select projects statewide to be awarded credits. Typically, 4% credit applications are used for building rehabilitation projects and have a lower subsidy amount; therefore, the state has some flexibility in the award process.
The Burham will be comprised of: 10 studio apartments, 20 one-bedroom units and 1 two-bedroom unit. The rents for all 31 units will be targeted to households making 60% AMI, the rents would range from $676 per month for studios, to $716 for one-bedroom, to $857 for the two-bedroom unit. In Duluth, the 60% AMI for a 1-person household is $30,000, and for 2-people it is $34,320.
MHFA requires tax credit applicants for housing developments in Duluth to receive the support of the city council. The support is required to assure that a given pr...
Click here for full text