Title
Resolution recommending approval of a Community Development Block Grant (“CDBG”) loan of $166,800 to repair an affordable housing project at 833 University Avenue, District 7, Ward 1
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act and when needs cannot be met through reliance solely upon private initiative, which can also be undertaken in targeted neighborhoods, and is authorized to create redevelopment projects as defined in the Act, and said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community; and
WHEREAS, the multi-family affordable housing project at 833 University Avenue (the “Project”) is comprised of six units that are home to low-income families that is owned by Model Cities Families First No. 1, LLC, a Minnesota limited liability company, an entity affiliated with Model Cities of Saint Paul Inc., a Minnesota non-profit corporation (collectively, along with affiliated entities that operate the Project, the “Developer”); and
WHEREAS, the Developer plans to make capital repairs to the Project building to remedy water damage due to leaks in the exterior cladding; and
WHEREAS, the Developer has requested financial assistance in the amount of $166,800 of CDBG funds from the City to make necessary repairs to the Project; and
WHEREAS, to facilitate the rehabilitation and preservation of housing serving low-income families, the HRA staff has recommended that the HRA provide the Developer with a CDBG loan of $166,800; and
WHEREAS, the CDBG loan will be deferred for 30 years with interest accruing at 1% per year; and
WHEREAS, by this Resolution, the HRA finds a proper public purpose in recommending the issuance of rehabilitation financing because the Developer’s proposal will address safety, and maintenance of a valuable affordable housing building; and
WHEREAS, the repairs and renovations to the Project by Developer will meet a HUD national objective, as identified by the accompanying Board Report, making it eligible to use CDBG funds, and the Developer has agreed to enter into a loan agreement governing the use of such funds.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “Board”) as follows:
1. The Board hereby recommends approval to the City Council for authorization of the proposed rehabilitation loan of $166,800, using CDBG funds, to Developer (or any affiliate of Developer that owns or controls the Project) for repairs and improvements to the Project under the terms of a loan agreement that contains all appropriate CDBG compliance obligations.
2. that, upon approval by the City Council, the HRA hereby approves and authorizes staff to take all actions necessary to carry out the activities authorized by this Resolution, including negotiating and finalizing all documents or agreements necessary to effectuate the activities to be undertaken by this Resolution, subject to approval by the City Attorney’s Office.
3. that this Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until approved by the City Council and all said documents are executed by the appropriate official(s) of the City of Saint Paul.