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(CITY OF ARDEN HILLS LETTERHEAD) • June 14,2010 Minnesota Housing Finance Agency 400 Sibley Street,Suite 300 St.Paul,Minnesota 55101 Attention: Multifamily Underwriting RE: Housing Tax Credit Program& Super RFP. ARDEN VILLAGE—ARDEN HILLS. Dear Multifamily Development: The City of Arden Hills is a community made up of residents,businesses and institutions sharing a common history. One of the primary purposes of a community is to serve as a place of residence for its citizens. Assuming this charge, offering a mix of life cycle housing opportunities becomes a challenge for local governments especially in suburban markets. The City has a strong desire to support affordable and work-force housing and is an active participant in the Livable Communities Program. The City's 2030 Comprehensive Plan sets goals that emphasize the development of a variety of housing types that are suitable for a mix of incomes including work-force housing. Developers and the City must be partners to cooperatively develop housing plans to provide life cycle housing in Arden Hills. To promote and participate in rental housing opportunities, the City has provided incentives for affordable housing developments. As a cost reduction measure to endorse Arden Village, the 4111 City has approved the project with a density bonus, flexibility in zoning and fast track permitting and approval. The City will also not be collecting the approximate $71,560 park dedication fee and also waiving$2,000 in City SAC/WAC fees. PARAGRAPH OPTION 1 (No Tower): The City of Arden Hills also proposes significant local financial contributions for this project as part of its participation and endorsement. If the project is selected for funding, the City Council supports the use tax increment financing (TIF) for the project or other funding means to achieve up to$225,000 in assistance. As part of the TIF,the project will need to meet all state guidelines for TIF, including the"but for test". The project also must be reviewed under the City's business subsidy policy. PARAGRAPH OPTION 2(With Tower): The City of Arden Hills also proposes significant local financial contributions for this project as part of its participation and endorsement. If the project is selected for funding, the City Council supports the use tax increment financing (TIF) for the project or other funding means to achieve up to$575,000 in assistance. As part of the TIF,the project will need to meet all state guidelines for TIF, including the"but for test". The project also must be reviewed under the City's business subsidy policy. The proposed development is an excellent opportunity for the City of Arden Hills to meet a large portion of its housing goals. This endorsement is based upon the findings that the project will meet locally identified housing needs and that the proposed housing is in short supply in the local housing market. This need is evidenced by the gap between the local supply and demand for the proposed type of housing. •