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City of <br />• -- <br />1ver <br />June 1, 2020 <br />Jennifer Ho, Commissioner <br />Minnesota Housing Finance Agency <br />400 Wabasha St N UNIT 400 <br />St Paul, MN 55102 <br />Re: Housing Tax Credit Threshold Letter — Hillside Heights Apartments <br />Dear Commissioner Ho: <br />The City of Elk River City Council, at its meeting on May 18, 2020, reviewed and preliminarily endorsed <br />Hillside Heights Apartments housing development proposal that proposes the new construction of <br />approximately 55 affordable rental units in the City of Elk River near its Northstar Commuter Rail Station. <br />This endorsement is based upon the findings that the project will meet locally identified housing needs and <br />that the proposed housing is in short supply in the local housing market. This need is evidenced by the <br />following sources: <br />A comprehensive housing market study update completed by Maxfield Research & Consulting for the <br />City of Elk River in February of 2018. The study projects housing demand from 2017 through 2025 <br />and provides recommendations on the amount and type of housing that could be built in Elk River. <br />Below is how this study aligns with the development of Hillside Heights Apartments: <br />a. Hillside Heights Apartments is an alternative development concept containing 55 total units <br />anticipated to serve 12 subsidized households, 27 affordable families and 16 affordable senior <br />active adults. <br />b. The plan shows strong demand for rental housing (55 units) <br />c. The following table summarizes how the development meets the identified needs: <br />Hillside Heights <br />Remaining <br />Demand <br />Apartments <br />Demand <br />Study Reference <br />Page 44 and Table <br />Subsidized <br />34 <br />12 <br />22 <br />CR-2 <br />Page 44 and Table <br />Affordable <br />35* <br />27 <br />8 <br />CR-2 <br />Affordable Senior Active <br />Page 46 and Table <br />Adult <br />40 <br />16 <br />24 <br />CR-2 <br />*Note: 60-unit Elk Midge Lodge netted out <br />d. The 0% vacancy rates for affordable rental housing and senior housing at all levels indicate a <br />pent-up demand for this type of housing. <br />13065 Orono Parkway <br />Elk River, MN 55330 <br />Phone: 763.635.1000 <br />www.ElkRiverMN.gov <br />