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Resolution recommending approval of funding a loan of $3,350,000 from American Rescue Plan Act (SLFRF) funds and the extension of terms for one existing HOME Loan both for the Kimball Court project at 545 Snelling Avenue N, District 11, Ward 4
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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 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, Kimball Court (“Project”) is owned by 545 Snelling LLC (“Developer”), of which Beacon Interfaith Housing Collaborative is the sole member to this entity; and
WHEREAS, in May 2009, the HRA committed a HOME loan (“Existing Loan”) in the amount of $501,130.00 to the Amherst H. Wilder Foundation, owner of the Project, to provide supportive rental housing for very low-income persons; and,
WHEREAS, in May 2010 the Amherst H. Wilder Foundation sold the Project to the Developer, at which time, the Developer assumed the HOME Loan Repayment Agreement, which has a maturity date of May 13, 2040 and is secured by a real estate mortgage; and
WHEREAS, the Developer requires an extension and revision of terms of the Existing Loan; and,
WHEREAS, staff proposes the HRA extend and revise the terms of the Existing Loan to be consistent with the new SLFRF loan described below; and,
WHEREAS, the City of Saint Paul issued a 30% AMI Deeply Affordable Housing Program - Fall 2022 Request for Proposals; and
WHEREAS, the Developer submitted a proposal to renovate and expand an existing 76-unit single-room occupancy (SRO) rental housing development and functionally related facilities (the “Proposal”) at 545 Snelling Avenue North, Saint Paul, Minnesota; and
WHEREAS, the Developer will expand the project by constructing approximately 26 additional units, for a total of 98 units and add onsite supportive housing services and programming as a critical resource for its residents; and
WHEREAS, the Developer has requested financing of $3,350,000 in American Rescue Plan Act funding from the Coronavirus State and Local Fiscal Recovery Fund (“SLFRF”) to complete improvements to the Project and staff has identified the sources and terms for this financing in the accompanying staff report (collectively, the “Improvement Financing”); and
WHEREAS, approximately 24 of the 98 units will be affordable to residents at 30% of Area Median Income (AMI); and,
WHEREAS, under Resolution No. 24-1455 the City Council for the City of Saint Paul is expected to authorize the transfer of $3,350,000 from the ARPA 30% AMI Deeply Affordable Housing holding account to a project-specific account to finance a portion of the Project to be constructed by the Developer; and
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. Based upon HRA findings set forth above, which the Board hereby ratifies and adopts, the Board recommends approval and authorization of the extension and revision of terms for the Existing Loan to be coterminous with the proposed SLFRF financing from the City of Saint Paul to develop the Project, and recommends the preparation and execution of all necessary agreements for such financing.
2. The Board recommends approval and authorization of the issuance of a loan to Developer (or its affiliated entity) of $3,350,000 in American Rescue Plan Act SLFRF funds to develop the Project, and recommends the preparation and execution of all necessary agreements for such financing under the terms of a loan agreement (and other documents) that contain all appropriate SLFRF and other compliance obligations.
3. The review and acceptance of the Proposal and the making of the Improvement Financing is hereby ratified, confirmed, and approved.
4. The Board hereby approves the HRA budget amendment as set forth in the attached Financial Analysis.
5. The HRA Executive Director, staff, and legal counsel for the HRA are further directed and authorized to take all actions necessary to implement this Resolution, including finalizing all documents and agreements necessary to effectuate the activities to be undertaken by this Resolution, subject to approval by the City Attorney’s Office
6. the proper HRA official(s) are hereby approved and authorized to execute any and all documents in connection with this Resolution, subject to approval by the City Attorney’s Office. Further, subject to the City Attorney’s Office, the Board empowers and authorizes the Executive Director of the HRA to execute all said documents and instruments, which shall be sufficient to bind the HRA to any legal obligations therein.
7. 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 HRA.