01-0230R

RESOLUTION APPROVING 2002 LOW-INCOME HOUSING TAX CREDIT QUALIFIED ALLOCATION PLAN.

BY COUNCILOR 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 2002 LIHTCs in an amount to be announced by the Minnesota Housing Finance Agency in early 2002; and

        WHEREAS, in accordance with Section 42 of the Internal Revenue Code of 1986, as amended, a qualified allocation plan for 2002 (the plan) setting forth criteria governing the award of the city's LIHTCs has been prepared; and

        WHEREAS, the plan is available for review and written comments by the general public, and a public hearing will be held on March 26, 2001.

        WHEREAS, the Duluth Housing Commission met on March 8, 2001, and recommended approval of the plan to the city council; and

        NOW, THEREFORE, BE IT RESOLVED, that the 2002 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 2002 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 2002 tax credits in an amount to be announced by the Minnesota Housing Finance Agency (MHFA) in early 2002. This amount is estimated to be $238,471.

The city has entered into a joint powers agreement with the MHFA for the administration of the LIHTC program. Projects applying for 2002 tax credits will be scored by MHFA according to local priorities stated in the qualified allocation plan. The Duluth Housing Commission has recommended changes from the 2001 plan, as indicated in the attached. Several of these changes are required by legislation enacted by Congress at the end of 2000.