HomeMy WebLinkAboutResolution No. 111-24 - Resolution - Allocation of 2024 Statewide Affordable Housing Aid Funding for Eastside Apartments
RESOLUTION
Approving the Allocation of 2024 Statewide Affordable Housing Aid Funding to
Support a Tax Credit Application for a 36-unit Workforce and Supportive Housing
Project to be known as Eastside Apartments.
WHEREAS, Three Rivers Community Action has proposed to build a 36-unit workforce and
supportive housing project in the City of Rochester; and
WHEREAS, City teammates recommend Council makes a contribution of $ 545,926
toward this project utilizing the City’s entire 2024 Statewide Affordable Housing Aid
allocation; and
WHEREAS, In 2023, Statewide Affordable Housing Aid was paid to qualifying cities for
counties, Tribal nations, and greater Minnesota local governments to develop and
preserve affordable housing within their jurisdictions. In 2024, $545,926 is allocated to
the City of Rochester; and
WHEREAS, development of the property will be subject to the City’s Zoning Ordinance and
Unified Development Code; and,
WHEREAS, 100% of the units in the housing project will be affordable to households with
incomes at or below 60% of the area median income with nine units reserved for Permanent
Supportive Housing; and
WHEREAS, The City often supports affordable housing projects seeking Tax Credits
through contributions using Tax Increment Financing (TIF). With the recent changes to the
4d property tax classification, it is estimated that the development would have only
generated approximately $44,000 in increment principal over the next 25 years. With such
little increment generated it is felt that it is not worth the time and investment to establish a
TIF district; and
WHEREAS, the City wishes to support the application that Three Rivers Community Action
is submitting to Minnesota Housing Finance Agency (MHFA) for Housing Tax Credits; and
WHEREAS, the success of the application is predicated on local support of the proposal.
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Rochester,
MN hereby approves the allocation of 2024 Statewide Affordable Housing Aid Funding of
$545,926 to support a Tax Credit Application for a 36-unit Workforce and Supportive
Housing Project to be known as Eastside Apartments.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2024.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2024.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)