BY COUNCILOR GILBERT:01-0731R
RESOLUTION APPROVING THE SELECTION OF THE COMMUNITIES GROUP TO RECEIVE 2002 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, the city's 2002 allocation of LIHTCs is estimated at $233,000; 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 2002 setting forth criteria governing the award of the city's LIHTCs; and
WHEREAS, the city received one application for the LIHTCs, an application of The Communities Group for its Renaissance at East Hillside project requesting an allocation of 2002 LIHTCs in the amount of $177,790 (the project); and
WHEREAS, the application for the project has been scored in accordance with the plan; and
WHEREAS, the Duluth housing commission, at its August 16, 2001, meeting, recommended allocating LIHTCs to the project in the amount of $177,790; and
WHEREAS, the LIHTC requested for the project does not exceed the city's estimated 2002 allocation of LIHTCs; 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 administer the allocation of the city's 2002 LIHTC in accordance with the city's plan.
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 2002 LIHTC allocation in the amount of $177,790 for the project does not exceed the amount which is necessary for the project's financial feasibility and viability as qualified low-income housing projects 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;
(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; and
(4) The reasonableness of the developmental and operational costs of the project.
(d) The selection of The Communities Group to receive $177,790 of the city's 2002 LIHTC allocation for the project;
(e) The return to MHFA of the city's 2002 allocation of LIHTCs in excess of $177,790 to be allocated to The Communities Group is hereby approved;
(f) Staff is authorized and directed to work with MHFA and The Communities Group to implement the terms of the agreement;
(g) Staff is additionally authorized to prepare, execute and deliver all documentation necessary or convenient to provide for the commitment, carryover and allocation and return of such credits, based on findings made in accordance with the requirements of the code at each of such steps, and subject to such conditions as the staff in their reasonable discretion deem appropriate and necessary to comply with the intent and policies set forth in the plan.