BE IT RESOLVED, that the proper city officials are authorized to enter into HIF loan agreements substantially in the form of those on file in the office of the city clerk as Public Document No. __________, with the agencies set forth below in the corresponding funding levels set forth below, payable from Fund 266:




$ 50,000

gap funding for new houses

Northern Communities Land Trust (NCLT)


Alicia’s Place

Women’s Community Development Organization, Inc. (WCDO)

$ 50,000

new San Marco

Center City Housing Corporation (CCHC)


exterior preservation

Neighborhood Housing Services (NHS) loan program

     BE IT FURTHER RESOLVED, that the city of Duluth hereby commits to fund the following agency set forth below in the corresponding funding level set forth below in the 2006 funding round:





Village at Matterhorn

The Communities Group

STATEMENT OF PURPOSE:  This resolution is to approve loan agreements from the housing investment fund to housing developers. This first round of funding totals $300,000, for the second half of 2005. At their meeting on September 8, 2005, the Duluth housing commission questioned the applicants and determined the following funding recommendation for the council’s approval:

Project name: Northern Communities Land Trust - gap funding for new houses

Project summary: New construction of 11 affordable, owner-occupied Land Trust homes. There will be infill-neighborhood revitalization with the construction of five units on vacant property on West Second Street; blight removal and infill with the deconstruction/reconstruction of two units, one on goat hill and one east of ore docks near West Third Street; and new affordable housing in a neighborhood with virtually no affordable homes for purchase with the construction of four units in Hawk Ridge Estates. The first seven units are in a CDBG targeted neighborhood with a high percentage of rental units.

Goal: 11 new homes

Funding amount: $50,000

Project name: Women’s Community Development Organization - Alicia’s Place

Project summary: Located at 315 North Second Avenue West, Alicia’s Place is a major rehabilitation of the former Bishop’s House into 11 units of permanent supportive housing for homeless women with disabilities. Alicia’s Place will provide services as well as housing.

Goal: 11 units of rental housing with supportive services

Funding amount: $100,000

Project name: Center City Housing Corporation - new San Marco Apartments

Project summary: Located at 224 West Third Street, the new San Marco Apartments is the construction of 70 single-room occupancy units. Of the 70 units, 30 will be permanent supportive housing for homeless individuals with drug addictions, and the other 40 units are relocated from the Gardner Hotel.

Goal: 70 single room occupancy units

Funding amount: $50,000



Project name: Neighborhood Housing Services - exterior preservation loan fund (EPLF)

Project summary: NHS is proposing to use housing investment funds to capitalize a new revolving loan fund to help low-income homeowners and landlords address historical residential assets in Duluth. The EPLF is designed to attract capital to a $1,500,000 loan pool that would spur home ownership and property improvements to revitalize designated neighborhoods in Duluth.

Goal: 60 loans

Funding amount: $100,000


In addition to the projects and program funded with 2005 housing investment fund dollars, the housing commission also recommends that the council fund one of the applications using 2006 housing investment fund dollars. That project is:

Project name: The Communities Group - Village at Matterhorn

Project summary: Located at the end of Burning Tree Road just beyond Matterhorn Drive, the Village at Matterhorn project is new construction of 96 units of mixed income housing, in two apartment buildings and 15 townhomes. Of the 96 total, 68 will be tax credit units (30 of which are HOPE VI units) and 28 market rate units. Units will range from 1-3 bedrooms located in two apartment buildings and 15 townhomes. This is an “off-site” housing development under the HOPE VI plan.

Goal: 96 units of mixed income rental housing

Funding amount: $150,000