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DUFFY DEVELOPMENT COMPANY <br />REAL ESTATE DEVELOPMENT <br />AND CONSTRUCTION MANAGEMENT <br />April 25, 2023 <br />Mr Brent O'Neil <br />Economic Development Director <br />City of Elk River <br />13065 Orono Parkway <br />Elk River, MN 55330 <br />Re: Seniors Housing Proposal <br />Dear M Neil, -eVA- <br />Duffy Development Company is a developer specializing in affordable and workforce <br />housing. The City has been a strong partner in our past developments, The Depot and <br />Coachman Ridge, near the Northstar Rail parking lot. Duffy Development has secured <br />another parcel in the same area and would like to add additional housing for a very <br />underserved population: Lower -income, independent senior, members of the community. <br />Until recently, creating new construction affordable housing for senior citizens has been <br />nearly impossible in Minnesota. The focus of the state housing finance agency has been <br />on housing for working families, much like what we have done with The Depot and <br />Coachman Ridge. In the past couple of years, Minnesota has provided small amounts of <br />funding for senior housing. The funding could only support 2-3 developments in the entire <br />state. However, it is expected that the state legislature will approve a substantially larger <br />funding source for the next biennium, most of which will be from a source that is one-time <br />money available only due to the large current state budget surplus. I give you this <br />background because we are in a uniquely strong position to create a new asset here in <br />Elk River. <br />Duffy Development is proposing a 45-55 unit independent senior housing development <br />for ages 55+. All units will be affordable to incomes at or below 60% of the area median <br />income with rents that will be at 30% and 50% of area median income. To put this in <br />perspective, rents on a one -bedroom home will range from $600 - $1,045 and two - <br />bedroom homes will be $725-$1,250. <br />The primary source of financing for developments such as these, comes from Minnesota <br />Housing, the state's housing finance agency. To access the financing, Minnesota Housing <br />uses an RFP application one time per year. The applications are substantial, and to <br />secure the funding, it is a very competitive process. It is typical that for every development <br />funded through Minnesota Housing, four or five other developments are rejected. <br />12708 Wayzata Blvd. • Suite 400 • Minneapolis, MN 55305 <br />PH. (952) 544-6769 • FAX (952) 544-6091 <br />