1.A Arden Village Workforce Housing Concept

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Development Description Arden Village will be 55 units which will be developed as a work -force housing project and be financed with Minnesota Housing Finance Agency (MHFA). It will be marketed to working families of Arden Hills. The development will provide seven one bedroom units, thirty-six two bedroom units and sixteen three bedroom units. The proposed contract rents include one underground parking space, water/sewer, refuse removal and heat. All units will have income limits set at 60% or less of area median income (AMI) and initial rents affordable to residents making 50% of AMI. Below is table summarizing unit mix, rents and income limits: Unit Mix, Rents & Income Limits Contract Annual Hourly # of Units # of BR's S . Ft. Rents Income Income 6 1 875 $ 755 $ 40,260 or less $ 19.35 or less 34 2 1,020 $ 904 $ 50,340 or less $ 24.20 or less 15 3 1,370 $ 1,043 $ 54,360 or less $ 26.13 or less Table Notes: 1. Unit Square Footages are approximates 2. All incomes are household incomes. Hourly income is based on 2,080 hours annually 3. Annual & hourly income restrictions for a one bedroom unit is based on a household of two 4. Annual & hourly income restrictions for a two bedroom unit is based on a household of four 5. Annual & hourly income restrictions for a three bedroom unit is based on a household of five Local Participation — A Key to Being Selected The main funding source for Arden Village is proposed to be federal housing tax credits which are allocated annually by MHFA. The tax credit program is a national program that started in 1987. It is one of the most successful housing programs in the United States as it promotes private development of affordable housing versus public ownership and management. The application for the next funding round is due to MHFA in October 2009 for an allocation of 2010 credits. Because of the program's great success, getting awarded a tax credit project is extremely competitive. The MHFA application weighs heavily on local participation as this allows more State and Federal dollars to fund more projects. Without local participation, an application by a for -profit developer has an extremely low chance of being funded. As an experienced owner and developer of tax credit projects, Sand Companies, Inc. has had very good success by being awarded sixteen housing tax credit developments in the cities of Lakeville (' 95), Albany (' 96), Hutchinson (' 97), Mahtomedi (' 98), Chaska ('99), Shakopee ('00), Blaine ('01), Bloomington ('01), Shakopee ('02), St. Joseph ('04), Chanhassen (' 05), St. Cloud (' 05), Jordan (' 06), Maple Grove (' 07), St. Paul (' 07) and White Bear Lake ('08). We are confident that with local participation, the Arden Village application will be very competitive. ahage Arden Village Proposed Development