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RESOLUTION APPROVING A PRE-COMMITMENT OF $275,000 FISCAL YEAR 2020 FUNDING ALLOCATION TO THE CITY OF DULUTH FROM THE HOUSING AND URBAN DEVELOPMENT (HUD) DEPARTMENT TO ONE ROOF COMMUNITY HOUSING FOR THE CONSTRUCTION OF THE DECKER DWELLINGS APARTMENTS AND SUPPORTING ITS CONSTRUCTION.
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CITY PROPOSAL:
RESOLVED, that the city council hereby approves a pre-commitment of Fiscal Year (FY) 2020 funds to be received by the city of Duluth as allocated by the federal Housing and Urban Development Department for the construction of the Decker Dwellings apartment. The award of $275,000 will be contingent upon the developer, One Roof Community Housing, successfully securing major funding support from the Minnesota Housing Finance Agency (MHFA) and other funding sources to enable construction to begin next year. The $275,000 will be a grant issued from the City of Duluth's 2020 HOME Allocation to One Roof Community Housing for the construction of the Decker Dwellings Project. The $275,000 in HOME Funds will be a grant that will not need to be paid back to the City, unless the City of Duluth finds that the Decker Dwellings Project does not fully meet HUD income and rental requirements. One Roof Community Housing may lend the granted HOME Funds to the ownership entity of the proposed Decker Dwellings to be coterminous with the first mortgage and at an interest rate that does not exceed the Applicable Federal Rate. The City of Duluth, at a minimum, will monitor the Decker Dwellings project for 20 years to insure all applicable requirements are met. The $275,000 will be available for Decker Dwellings when the 2020 HUD Funds have been allocated to the City of Duluth. The development of the Decker Dwellings Apartments will contribute to achieving housing goals in the 2015-2019 City of Duluth Consolidated Plan and the Continuum of Care's 10 Year Plan to End Homelessness.
FURTHER RESOLVED, that the city council finds that the proposed Decker Dwellings apartments...
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