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 2007 allocation of LIHTCs is estimated at $254,899; 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 2007 setting forth criteria governing the award of the city;s LIHTCs; and
WHEREAS, the city received two applications for projects requesting allocation of 2007 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 the projects to receive 2007 low income housing tax credits as set forth below:
First priority - Harbor View Phase III
Section priority - Gimaajii-Mino-Bimaadiziyaan
STATEMENT OF PURPOSE: The purpose of this resolution is to approve the city’s allocation priority for the 2007 LIHTCs. Harbor View Phase III, the first priority, is part of the ongoing HOPE VI redevelopment project, and will build 41 units of mixed-income housing and a community center on the Harbor View site. The second priority is Gimaajii-Mino-Bimaadiziyaan, a project to acquire and renovate the current YWCA building in Downtown Duluth into 26 units of permanent supportive housing for families and an American Indian Community Center.
Under the joint agreement with the Minnesota housing finance agency (MHFA), should the city's first priority project qualify for more than Duluth's tax credit allocation, the state will provide the needed additional tax credits. By designating a first priority project, the council is obligating MHFA's support of that project.