05-0269R

REPLACEMENT

RESOLUTION TRANSFERRING FUNDS FROM COMMUNITY INVESTMENT TRUST FUND TO HOUSING INVESTMENT FUND AND RESTRICTIONS THEREON.

BY PRESIDENT NESS:

     BE IT RESOLVED, that, beginning in year 2006, there shall be established a fund known as the housing investment fund (designated by number determined by the director of finance), which fund shall be administered by the administration in compliance with applicable regulations and accounting standards in order to carry out a program of housing improvement in the city, which program shall be managed by the city’s community development division, or its successor.

     BE IT FURTHER RESOLVED, that, beginning in year 2006, there shall be transferred from the community investment trust fund, established in Section 54(E) of the Charter, to the housing investment fund, at a time determined by the finance director of the city, the amount of $600,000 each calendar year for five consecutive years.

     BE IT YET FURTHER RESOLVED, that the establishment of the housing investment fund, and the transfer into it of money, as provided for in this resolution, is conditional upon the council, before January 1, 2006, and through the procedures set out in the Charter, including veto and referendum, finally enacting and establishing a program of city-wide housing improvement, which may include provision for grants and loans, which program will be financed in whole or part by the housing investment fund. This program shall be for a public purpose and exist in compliance with all applicable laws and regulations, and be managed by the city’s community development division, or its successor.


STATEMENT OF PURPOSE:  This resolution requires seven votes to pass. This resolution establishes funding for a housing improvement program by obtaining money from the community investment trust fund, which money was generated by casino gambling. The amount appropriated is $600,000 each year for five years. The transfer only occurs if the council enacts a suitable housing program before January 1, 2006.

 

The affordable housing coalition and the Duluth housing commission met with the city council for the past four years regarding the development of strategies for affordable housing. In which the city council endorsed 11 key strategies in 2000, and later in 2003 the Housing 1000 campaign. One of those strategies was to develop additional financial resources for affordable housing development. This resolution helps to develop those resources.

 

The community development division and the Duluth housing commission will finalize criteria and recommend the requirements for allocating the funding to the city council for approval. Individual applications shall be reviewed and recommended to the council by the Duluth housing commission.

 

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