DISCLAIMER

 

PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE


08-0325R


RESOLUTION AUTHORIZING TRANSFER OF $18,000 IN 2008 HOME FUNDS AND AMENDMENTS TO THE 2008 HOME PROGRAM NORTHERN COMMUNITIES LAND TRUST (NCLT) CHDO DEVELOPMENT AND OPERATING GRANT AGREEMENT; INCREASING THE FUNDING OF THE AGREEMENT.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to HOME Agreement ____ with NCLT, substantially in the form of that on file in the office of the city clerk as Public Document No. ___________, increasing the amount payable thereunder from $19,370 to $37,370.

Project

Project Name

Budget

New
Amount

Amount of
Change

2008 HOME CH08-2270

NCLT predevelopment/CHDO operating

$19,370

$37,370

$18,000

2007 HOME CH07-2805

Predevelopment

$18,000

0

($18,000)


COMMUNITY DEVELOPMENT DIV


STATEMENT OF PURPOSE:  The purpose of this resolution is to increase the project funding by $18,000, to a total of $37,370.


NCLT has requested additional pre-development assistance for costs related to the MACV Duluth supportive housing project. The NCLT is partnering with MACV Duluth (Minnesota Assistance Council for Veterans) as the developer of nine units of permanent supportive housing for homeless veterans, four units of transitional housing, and offices for MACV services to veterans.


NCLT, as a certified community housing development organization (CHDO) under the HOME program, and can serve as the sponsor/developer of projects for other non-profit agencies. Community development staff requested that as a CHDO, the NCLT serve as the project developer. Once the acquisition and rehabilitation are completed, the property will be turned over to MACV. MACV will own and manage the buildings, and provide supportive services from their on-site office.


NCLT’s original award of $19,370 will be used for the review and update their housing development plan, submission of a 2009 HOME funding application for City Homes VIII, submission of an application to the state of Minnesota housing finance agency for funding of City Homes VIII, and the securing of a “pool” of acquisition and interim construction financing funds at below market-rate interest to reduce future housing development costs.


The increased funding of $18,000 will be used for costs related to the closing on the purchase of properties for the MACV project, securing needed zoning or other land use approvals from the city, development of a detailed rehabilitation plan, and the relocation of current tenants as required by the Federal Uniform Relocation Act.


The additional HOME funds were originally awarded to another nonprofit agency in support of a rental project that is not going forward. That project has been deleted from the community development 2007 action plan. Appropriate notice was published in the Duluth News Tribune on April 5, 2008. No comments were received during the ensuing 30 day public comment period. The community development committee held a public hearing at their meeting on April 29, 2008, where no comments were received. The committee voted to approve the change in the action plan.