BY PRESIDENT GILBERT:00-0703R
RESOLUTION OF INTENT REGARDING THE ALLOCATION OF 2001 LOW-INCOME HOUSING TAX CREDITS.
WHEREAS, pursuant to Minnesota Statutes, Sections 462A.221 through 462A.225 (the "act"), the city of Duluth, Minnesota (the "city") is a suballocator of low income housing tax credits (LIHTCs); and
WHEREAS, it is anticipated that the city's 2001 allocation of LIHTC will be $165,351; and
WHEREAS, in accordance with Section 42 of the Internal Revenue Code of 1986, as amended (the "code"), the city has adopted a qualified allocation plan (the "plan") for 2001 setting forth criteria governing the award of the city's LIHTCs; and
WHEREAS, the city has received one complete application for the LIHTCs from Center City Windwood Partners for its Windwood Townhomes project requesting an allocation of 2001 LIHTCs in the amount of $165,351 (the "project"); and
WHEREAS, the application for the project has been scored in accordance with the plan; and
WHEREAS, the Duluth housing commission has recommended allocating 2001 LIHTCs to Center City Windwood Partners in the amount of $165,351 for the project; and
WHEREAS, the city has entered into a joint powers agreement (the "agreement") with the Minnesota housing finance agency ("MHFA"), pursuant to which MHFA has agreed to allocate its LIHTCs to the city's highest ranking project, if the project requires an allocation of LIHTCs in excess of the amount reserved for the city; and
WHEREAS, the amount of allocation of LIHTCs requested for the project is in excess of the amount reserved for the city.
NOW, THEREFORE, BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:
(a) The city hereby finds and determines that the application for the project is complete in all material respects and meets the selection criteria set forth in the plan;
(b) The request for the 2001 LIHTC allocation in the amount of $165,351 for the project does not exceed the amount which is necessary for the project's financial feasibility and viability as a qualified low-income housing project throughout the ten year credit period;
(c) In making the determination set forth above, the city considered the following with respect to the application submitted:(1) The sources and uses of funds and the total financing planned for the project;(d) The city council of the city of Duluth hereby expresses its intent to allocate $165,351 of the city's 2001 LIHTC allocation to Center City Windwood Partners for the project, subject to Minnesota housing finance agency (MHFA) approval of the financing of the entire project;
(2) Any proceeds or receipts expected to be generated by reason of tax benefits;
(3) The percentage of the housing credit dollar amount used for costs of the project other than the cost of intermediaries;
(4) The reasonableness of the developmental and operational costs of the project;
(e) Staff is authorized and directed to work with MHFA and Center City Windwood Partners to secure an allocation in the anticipated amount of $181,729 of MHFA's 2001 LIHTCs for the project.
The Duluth housing commission, at its special meeting on September 28, 2000, met with Center City Housing and reviewed the project. The commission voted unanimously to recommend to the city council that the Windwood Townhomes project receive the city's 2001 LIHTCs.