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EN HILLS <br /> MEMORANDUM <br /> DATE: June 8,2010 Item 3.B <br /> TO: Financial Planning and Analysis Committee <br /> FROM: James Lehnhoff, Community Development Director <br /> SUBJECT: Arden Village Workforce Housing Revised Letter of Support <br /> Recommendation to City Council <br /> Action Request <br /> Review the revised request from Sand Companies, Inc for a letter of support for public assistance <br /> for a housing tax credit application with the Minnesota Housing Finance Agency. <br /> Recommend a course of action to the City Council. <br /> Background <br /> • At the September 14, 2009, City Council meeting,the Council approved a letter of support for <br /> Sand Companies, Inc.'s (SCI) housing tax credit application to the Minnesota Housing Finance <br /> Agency for the 55 unit Arden Village workforce housing project at 1296 County Road F. That <br /> letter of support offered up to$400,000 in public assistance, which could be in the form of Tax <br /> Increment Financing(TIF), waived fees,or a combination of sources. The letter did not <br /> guarantee$400,000 in support since financial reviews had not yet been conducted. The <br /> $400,000 request was used based on SCI's experience with similar projects. More importantly, <br /> applications with community financial support score higher and have a better chance of <br /> obtaining the housing tax credits, which are a key part of making the building affordable. <br /> The Minnesota Housing Finance Agency (MHFA)announced their awards at the end of January <br /> 2010; however,the Arden Village proposal was not selected for tax credits at that time. MHFA <br /> encouraged SCI to resubmit their application for the next funding awards in fall 2010. <br /> The Arden Village proposal received all necessary land use approvals at the March 8, 2010, City <br /> Council meeting. SCI subsequently informed the City that they would submit a new housing tax <br /> credit application to MHFA. The housing tax credit applications are due by June 15, 2010. The <br /> applicants do not consider the project to be viable without the housing tax credits <br /> City ofArden Hills <br /> FPAC Meeting for June 8. 2010 <br /> lAhdocsllah'✓1Hdata,Planning1Connnunih Dereloptnent,Housing4ffordable HonsingArden Village-Sand Companies!060810-FPAC Memo- <br /> Arden Village-Sand Companies.doc <br /> Page 1 of 4 <br />