5.1. SR 02-05-2007 - Laserfiche WebLink

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PROGRAM FOR FINANCING A MULTIFAMILY RENTAL HOUSING DEVELOPMENT Proposal Authority, Pursuant to Minnesota Statutes, Chapter 462C (the "Act") the City of Elk River (the "City") is authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for Minnesota family housing developments may be financed by revenue bonds issued by the City. This housing finance program (this "Program") is undertaken by the City to finance a Project (as hereafter described) to be developed and owned by Elk River Leased Housing Associates II, LP, a Minnesota limited partnership (the "Company"). The City expects to issue multifamily housing development revenue bonds (the "Bonds") pursuant to Minnesota Statutes, Chapter 462C, to assist in financing the Project. General Description of the Program and Location. The City anticipates loaning the proceeds of the Bonds to the Company to finance the acquisition and renovation of an approximately 51 unit multifamily rental housing facility located in the City at 1227 School Street NW (the "Project"). When the renovation is completed there will be the following units at the following estimated rents: 12 three-bedroom, 1,066 square foot units ($850); 36 two- bedroom, 871-1,113 square foot units ($715-750); and 3 one-bedroom, 683 square foot units ($625). Operation of Proiect. The Project will be operated in accordance with applicable development restrictions, and all rehabilitation will be subject to applicable state and local building codes. The affordability standards and set-aside requirements of Section 462C.05, Subdivision 2 of the Act, and the requirements of Minnesota Statutes 474A and Section 142(d) of the Internal Revenue Code of 1986, as amended (the "Code"), will be met. The Company will be required to operate the Project in accordance with state and local anti-discrimination laws and ordinances. Revenue Bonds. The Company has indicated that the amount of Bonds required to finance the Project is approximately $2,500,000 which will mature in approximately 35 years. The proceeds will finance the acquisition and renovation of the Project and pay certain costs of issuing the Bonds, and may be used to establish a reserve. Tax credit equity is also expected to provide financing for the Project. 1 990325v 1