BY COUNCILOR STEWART:
RESOLVED, that the proper city officials are authorized to enter into a HIF loan agreement substantially in the form of that on file in the office of the city clerk as Public Document No. ______________, with the agency set forth below in the corresponding funding level set forth below, payable from Fund 266:
STATEMENT OF PURPOSE: This resolution is to approve a loan agreement with the American Indian Community Housing Organization in the amount of $600,000. In accordance with Ordinance 9736, which governs the housing investment fund, Sec. 2-171(b)(2), “The maximum award shall be of $150,000 per housing project, unless the housing project includes an on-site American Indian Center supported by the Duluth American Indian commission, in which case the maximum amount of funds for the American Indian housing project/program shall not exceed 20 percent of total housing investment fund revenues.” As this project meets the above-stated criteria, and can demonstrate a need for financial support, an award of $600,000, or 20 percent of total HIF revenues, is being recommended. The underwriting analysis determined that a “zero” percent, 30-year, deferred payment loan was the only viable funding mechanism for this permanent supportive housing development.
The Duluth housing commission approved this recommendation at their meeting on September 13, 2007, and the Duluth American Indian commission approved their support of providing HIF funding for the project at their meeting on August 20, 2007. The project is described below.