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Approving issuance of a $241,157.97 ERA2 loan and execution of the loan agreements and related documents for the Joseph’s Pointe at Upper Landing Project, 200 Wilkin Street (District 9, Ward 2).
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WHEREAS, on March 21, 2021, the United States Congress passed the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (the “Second Act”) in response to the ongoing effects of the COVID-19 public health emergency; and
WHEREAS, under the Second Act, the U.S. Department of Treasury (“Treasury”) allocated $11,588,419.60 to the City (the “ERA2 Funds”); and
WHEREAS, RES PH-21-319 authorized the City to accept the ERA2 funds; amend the 2021 budget to incorporate and appropriate the funds; and execute necessary agreements; and
WHEREAS, in accordance with the Second Act, after October 1, 2022, if at least 75 percent of total ERA2 funds have been obligated to eligible uses related to housing and housing stability services, remaining funds can be used for other affordable housing purposes as defined by the Secretary of the Department of Housing and Urban Development (“HUD”) to assist very low-income families; and
WHEREAS, to date, the City has obligated and/or expended 98% of ERA2 for eligible uses related to housing and housing stability services; and,
WHEREAS, on March 24, 2024, Treasury published FAQ 46 updating guidance for affordable housing developments using ERA2 funds; and
WHEREAS, the City found that the proposed uses of the Project are eligible to be funded by ERA2 as identified in FAQ 46, which identifies the following eligible expenses: “the acquisition of real property for the purpose of constructing, rehabilitating, or preserving affordable rental housing projects serving very low-income families; and predevelopment activities that enable the construction, rehabilitation, or preservation of affordable rental housing projects serving very low-income families, including architectural and engineering design, planning, permitting, surveys, appraisals, and environmental review associated with an eligible project”; and
WHEREAS, to use ERA2 funds for an affordable rental housing project, the purpose must be aligned with at least one other program and meet the requirements of such program as outlined in FAQ 46; and
WHEREAS, the Project will utilize the Low-Income Housing Tax Credit (“LIHTC”) program as part of project financing; and
WHEREAS, according to the ERA2 guidance, the funds must be obligated by September 30, 2025 and spent within 120 days thereafter; and,
WHEREAS, through the standard application for affordable housing funding process, the City identified that the Project is eligible for the remaining $241,157.97 of ERA2 funds; and,
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saint Paul does hereby:
1. Authorize the City to loan $241,157.97 in ERA2 funds to Developer and/or affiliated entities for the Joseph’s Pointe rehabilitation project at 200 Wilkin Street.
2. Authorize the appropriate City officials to execute agreements and such other documents necessary to carry out this Resolution.
3. Authorize City staff to take all other actions necessary to carry out this Resolution.
4. This Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until said documents are executed by the appropriate official(s) of the City.