7C, Sand Companies Request for a Letter of Support for Housing Tax Credits

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_ _ _ _ __ _ _ _ _ ___ _. _ _ _ _ _ _ __ _. __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ %�. EN HILLS MEMORANDUM DATE: May 10, 2010 TO: Mayor & City Council FRUM: Sue Iverson, Finance Director/Treasurer James Lehnhoff, Community Development Director SUBJECT: Arden Village Workforce Housing Concept Proposal — Revised Letter of Support for Housing Tax Credit Application Action Req uest Consider a motion to approve the request from Sand Companies, Inc for a letter of support for up to $575,000 in public assistance for their housing tax credit application with the Minnesota Housing Finance Agency as proposed in the May 10, 2010, memorandum. � Background At the September 14, 2009, meeting, City Council approved a letter of support for Sand Companies, Inc. (SCI) housing tax credit application to the Minnesota Housing Finance Agency for the 5 5 unit Arden Village workforce housing proj ect at 1296 County Road F. That letter of support offered up to $400,000 in public assistance, which could be in the form of Tax Increment Financing (TIF), waived fees, or a combination of sources. Applications with community financial support score higher and have a better chance of obtaining the housing tax credits, which are a key part of making the building affordable. The Minnesota Housing Finance Agency (MHFA) announced their awards at the end of January 2010; however, the Arden Village proposal was not selected at that time. MHFA encouraged SCI to resubmit their application for the next funding round. The housing tax credit applications are due by June 15, 2010. City of A�den Hills City Council Meeting for May 10, 2010 IlMetro-inetlardenhillslAdminlCouncillAgendas 8� Packet Information1201015-10-10 RegularlPacket Information1051010 - CCMemo - Arden Village - Sand Companies.doc Page 1 of 3