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�;.� EN HILL5 <br />MEMORANDUM <br />DATE: June 14, 2010 <br />TO: Mayor & City Council <br />FROM: James Lehnhoff, Community Development Director <br />SUBJECT: Arden Village Workforce Housing Proposal — <br />Updated Letter of Support for the Housing Tax Credit Application <br />Action Req uest <br />Consider a motion to approve a letter of support for Sand Companies, Inc's housing tax credit <br />application to the Minnesota Housing Finance Agency for the Arden Village proj ect at 1296 <br />County Road F for an amount not to exceed $225,000 or $575,000 as proposed in the June 14, <br />2010, memorandum. <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 �nancial reviews had not yet been conducted. Applications <br />with community financial support score higher and have a better chance of obtaining housing tax <br />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 1 S, 2010. The <br />applicants do not consider the proj ect to be viable without the housing tax credits <br />City of Arden Hills <br />City Council Meeting fo� June 14, 2010 <br />IlMetro-inet.uslardenhillslPlanninglCommunity DevelopmentlHousinglAffordable HousinglArden Village - Sand Companies1061410 - CC Memo <br />- Arden Village - Sand Companies.doc <br />Page 1 of 4 <br />