Title
Authorization to Release the 4(d) Affordable Housing Incentive Program Covenant on 556 Gotzian St., Saint Paul, District 4, Ward 7
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the “Act”); and
WHEREAS, the Saint Paul City Council, through Resolution 17-2064, directed staff from the Planning and Economic Development department (“PED”) of the City of Saint Paul to research and work with housing partners on strategies to further fair housing goals, such as a tax policy to provide property tax reductions for eligible rental property owners; and
WHEREAS, Minnesota Statute Section 273.128 provides that low-income rental properties may qualify for a class-rate reduction in property taxes through terms of financial assistance provided by a local unit of government; and
WHEREAS, the HRA Board of Commissioners, through Resolutions 19-273, 19-2132, 20-1490, 21-1623, 22-1595, and 23-1472 approved the annual Guidelines of the 4d Affordable Housing Incentive Program for program years 2019-2024; and
WHEREAS, staff has developed the 4d Affordable Housing Incentive Program Guidelines to establish baseline considerations and guidance for implementation of the 4d Program, including recording a Declaration of Restrictive Covenants on enrolled properties; and,
WHEREAS, KALLY US LLC, a Minnesota limited liability company (“Owner”), owns 556 Gotzian St., located in Saint Paul and enrolled in 4d Program in 2023 (“Property”) be entering into a Participation Agreement with the Housing and Redevelopment Authority (“Participation Agreement”); and
WHEREAS, Owner executed and recorded a Declaration of Restrictive Covenants (“Declaration”) on title to the Property pursuant to the Participation Agreement;
WHEREAS, Owner seeks to sell the Property to an income-qualifying prospective owner-occupier; and
WHEREAS, Owner cannot sell the Property to the prospective owner-occupier unless the Declaration is released; now, therefore, be it
RESOLVED by the HRA Board of Commissioners that:
1. The HRA Board of Commissioners hereby approve the termination of the Participation Agreement between KALLY US LLC, a Minnesota limited liability company and the HRA;
2. The HRA Board of Commissioners hereby approve the release of the 4d Affordable Housing Incentive Program’s Declaration of Restrictive Covenants recorded on title to 556 Gotzian St.; and
3. 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. The proper officials of the HRA are authorized to execute any documents and instruments in connection with this Resolution, subject to approval by the City Attorney’s Office.