00-0270R

RESOLUTION APPROVING 2001 LOW-INCOME HOUSING TAX CREDIT QUALIFIED ALLOCATION PLAN.

BY PRESIDENT GILBERT:

WHEREAS, pursuant to Minnesota Statutes, Chapter 462.A221, et seq., the city of Duluth, Minnesota, is a suballocator of low-income housing tax credits (LIHTCs); and

WHEREAS, the city of Duluth as a suballocator is authorized to administer 2001 LIHTCs in an amount to be announced by the Minnesota housing finance agency in early 2001; and

WHEREAS, in accordance with Section 42 of the Internal Revenue Code of 1986, as amended, a qualified allocation plan for 2001 (the plan) setting forth criteria governing the award of the city's LIHTCs has been prepared; and

WHEREAS, the plan was made available for review and written comments by the general public and a public hearing was held on April 6, 2000; and

WHEREAS, the Duluth housing commission met on April 13, 2000, and recommended approval of the plan to the city council;

NOW, THEREFORE, BE IT RESOLVED, that the 2001 city of Duluth low-income housing tax credit qualified allocation plan, on file in the office of the city clerk as Public Document No.______________, is hereby approved.



STATEMENT OF PURPOSE: The purpose of this resolution is to approve the city of Duluth 2001 low-income housing tax credit qualified allocation plan. Section 42 of the United States Internal Revenue Code requires that agencies authorized to allocate such credits develop a qualified allocation plan which sets forth selection criteria to be used in determining housing priorities which are appropriate to local conditions in order to allocate credits to various housing projects. The city of Duluth is authorized to administer 2001 tax credits in an amount to be announced by the Minnesota Housing Finance Agency (MHFA) in early 2001. (Duluth's 2000 authority was for $163,617.)

The city has entered into a joint powers agreement with the MHFA for a demonstration program for the administration of the LIHTC program. Projects applying for 2001 tax credits will be scored by MHFA according to local priorities stated in the qualified allocation plan. The Duluth housing commission has recommended changes to priorities from the 2000 plan.