Title
RESOLUTION OF INTENT TO SUPPORT THE REQUEST BY BLUE LIMIT LLC 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 Blue Limit LLC's request for funding to the Minnesota housing finance agency for 4% low-income housing tax credits to assist in financing and redevelopment of the historic St. 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 Minnesota Housing Finance Agency (MHFA) by Blue Limit LLC 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. 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 would include 10 studio apartments, 20 one-bedroom units and 1 two-bedroom unit. The rents for all 31 units would be targeted to households making 60% AMI; the rents would range from $676 to $857 per month. In Duluth, the 60% AMI for one-person household is $30,000; for two people it is $34,320; and for three people it is $38,580.
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 proposal is a priority for the city of Duluth, and that it meets a locally identified housing need. The 2014 Maxfield housing study for the city of Duluth identified the need for more rental units for households earning $50,000/year or less. The demand for this type of housing has been further considered t...
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