8A, Renewal of Letter of Support for Arden Village Tax Credit Application

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ARDEN HILLS CITY COLINCIL — February 14, 2011 6 7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application • (continued) round of taY credit funding. SCI intends to apply for $300,000 in Ramsey County HOME or CDGB funds. Applications are accepted annually and are due on February 25, 2011. The application requires a resotution of support from the City. With the City's March 8, 2010, land use approvals and the June 14, 2010, good faith commitment for up ta $225,000 in TIF assistance, SCI closed on the purchase of Iand in December 2010, and is currently pursuing funding to fill its funding gaps. If SCI is awarded HOME or CDGB funds, and having already received land use approvals and acquired the land, they should be quite competitive for the next round of MHFA tax credit funding. An updated letter of support including a restatement of the City's good faith commitment for TIF assistance will be needed for SCPs June 2011, MHFA t� credit funding application, which will be requested at a later date. Mayor Grant clarified the deadline for this application is different from the deadline for the Housing Tax Credit grant application. Community Development Director Hutmacher clarified the grant that is being applied for at this time is the Ramsey County HOME/CDBG and the deadline for this is February 25, 2011. The MHFA tax credit funding has two funding cycles with the majority of their funds being allocated in the June cycle. SCI did receive a small amount of $35,000 from Ramsey County in November. Mayor Grant asked if th�s project was classified as work force housing or affordable housing. � Community Development Director Hutmacher stated the project is classified as work force housing but the ierm affordable housing in general includes work force housing. Work force housing is exclusively for those individuals that are working or have some form of income. Mr. Jamie Thelen, CEO for Sand Companies, Inc. stated the project is for individuaIs that have some form of income and this can include seniors. In other facilities they have built, the one bedroom design has been popular for seniors and the two and three bedrooms are designed more for families. He clarified seniors do not have to be working but they must have a form of income. Councilmember Werner stated there was $1.6 million available with the HOME/CDBG funds. He asked what the chances were that SCI would be able to secure the $300,000 they would be requesting. Mr. Thelen stated he did not know what requests there would be this year. He stated it has been several years since Arden Hills has received any funds so this may increase the chances that they are able to receive funds. He stated this application with Ramsey County is the second time SCI has applied and in June it will be third application for MFHA with last year's application being the first application in the Iarge allocation round. Councilmember Holden clarified the only time a person needs to prove income for this � development is at the time of application for an apartment.