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HRA Budget & Levy Request - Page 1 of 1 <br />Request for HRA Action <br /> <br />Date: 11-21-06 <br />Item No: 8.d. <br />Director Approval: Agenda Section: <br /> CB Action <br /> <br />Item Description: Consider Modifica tion of 2007 HRA Levy Request (HF_51) <br /> <br />1.0 Background: <br /> <br />1.1 On August 15, 2006, the HRA adopted the 2007 Preliminary Program Budget and <br />approved Resolution No. 22 requesting a levy for 2007 in the amount of $255,750 to <br />support programs and administration of the HRA. The approval of the requested levy <br />was contingent upon the Council’s preliminary support to provide $100,000 grant <br />for the renovation of Har Mar apartments by Central Community Housing Trust <br />(CCHT) in 2007. The HRA noted that if the Council was not supportive of <br />providing funds to this project, the HRA will modify their request for 2007 for an <br />amount of $155,750. <br /> <br />1.2 HRA staff has been informed by representatives of CCHT that they were not successful <br />in securing the needed tax credits from the state in this year’s round of funding. <br />(attached email from CCHT) Therefore, based upon this information, they will be forced <br />to delay the plans for full renovation until 2008 with the hopes that they will secure tax <br />credits in the 2007 funding round. <br /> <br />1.3 CCHT still requests the need for both HRA funding in the amount of $350,000 and tax <br />increment assistance for the project to proceed. However, the earliest that they will need <br />those funds is 2008. <br /> <br />2.0 Suggested HRA Action: <br /> <br />2.1 Based upon this information, it is suggested that the HRA inform the City Council that <br />the additional $100,000 in levy funds requested for 2007 would not be needed until 2008. <br /> <br />2.2 The result of this information may be that the City Council certifies the final levy for an <br />amount $100,000 less than requested or $155,750. However, the City Council may <br />choose to retain the same levy amount with the understanding that the additional <br />$100,000 be held in a separate fund for the renovation of Har Mar Apartments in 2008. <br />The advantage of retaining the funds is to show strong City’s support for the Har Mar <br />renovation project which strengthens any future application for tax credits. <br /> <br />Attachments: Email from CCHT <br />Prepared by: Cathy Bennett (651-792-7015)