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At their May 26, 2020, meeting,the Joint Finance Committee made a recommendation to the Housing and <br /> Redevelopment Authority to consider a letter of support for the project through tax increment financing, <br /> subject to the applicant receiving an allocation of tax credits and there being a continued demonstrated need <br /> for the additional 55 new affordable housing units in the amount of$780,000 plus interest over a period of up <br /> to 15 years. <br /> The applicant has also indicated that they intend to apply for $11,958,804 in Low Income Housing Tax Credits <br /> (LIHTC) from the MN Housing Finance Authority which requires a resolution of support from the HRA and <br /> City Council. The applicant requested the HRA to approve a resolution of support for their project,Low <br /> Income Housing Tax Credit application and the TIF application. <br /> The resolution does not approve the project or the TIF application and the city will not be required to approve <br /> future land use applications for the site should the HRA adopt the resolution. However,high density uses are a <br /> permitted use on this site and a future site plan application, consistent with all standards in the ordinance, <br /> would not require Council review or a public hearing. <br /> The letter of support will allow CHDC to apply to MN Housing Finance Authority for Low Income Housing <br /> Tax Credits to assist with financing their project. Provided CHDC's application is approved by MN Housing <br /> Finance, the letter provides support from the city for CHDC to move forward with their Housing TIF request <br /> provided there is still a need for the additional 55 new affordable housing units. <br /> Financial Impact <br /> Per city policy, the total estimated gross increment available over 15 years for housing projects is $1,818,810. <br /> The developer could receive 90% of the gross increment over 15 years of$1,636,935 or a present value of <br /> $1,125,475. However, based on the developer's application and request for assistance,it may only take up to 10 <br /> years to meet the full requested amount. <br /> Subject to project eligibility,it is at the city's discretion to capture the remaining 11-16 years of estimated <br /> surplus increment from this project to assist in future housing projects. <br /> Attachments <br /> ■ JFC Meeting Packet <br /> ■ Draft Resolution of Support <br /> ■ Draft Letter of Support <br />