04-0605R

AS AMENDED

RESOLUTION APPROVING THE PRIORITIZATION OF PROJECTS TO RECEIVE 2005 LOW INCOME HOUSING TAX CREDITS.


BY COUNCILOR GILBERT:

     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 2005 allocation of LIHTCs is estimated at $236,953; 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 2005 setting forth criteria governing the award of the city’s LIHTCs; and

     WHEREAS, the city received four applications for projects requesting allocation of 2005 LIHTCs (the projects); and

     WHEREAS, the applications for the projects have been scored in accordance with the plan.

     NOW, THEREFORE, BE IT RESOLVED, by the city council of the city of Duluth, that the city hereby approves prioritization of projects to receive 2005 low income housing tax credits as set forth below:

           First Priority         New San Marco Apartments

           Second Priority        Harbor View Phase II Village Place

           Third Priority         Village Place Harbor View Phase II

           Fourth Priority        The Village at Matterhorn


STATEMENT OF PURPOSE:  The purpose of this resolution is to approve the city’s allocation priority for the 2005 LIHTCs. New San Marco Apartments, the first priority, is a new construction project of 70 single-room occupancy units, 30 of which will be permanent housing for homeless individuals with drug addiction issues. The second priority is Harbor View Phase II, part of the ongoing HOPE VI redevelopment project, which will build 56 units of new housing on the Harbor View site. Village Place, third priority, is a 55-unit apartment building on 5th Street and between 6th and 7th Avenues East. Fourth priority, The Village at Matterhorn, is a 96-unit mixed income apartment building and townhome project, also part of the HOPE VI effort. This prioritization will be transmitted to the Minnesota Housing Finance Agency (MHFA) to be considered in the awarding of State 2005 LIHTCs under the joint administrative agreement between the city of Duluth and MHFA.