Title
Approving and authorizing an agreement between the Metropolitan Council and the City to clarify redeployment of Livable Communities Act program funds, citywide.
Body
WHEREAS, in 1995, the Metropolitan Livable Communities Act (“LCA”) was created to fund development projects that create affordable housing, increase economic opportunity, improve connections, and realize more equitable development outcomes; and
WHEREAS, the Metropolitan Council administers the LCA program by granting funds to cities and townships partnering with developers on specific projects; and
WHEREAS, since 2008, the Metropolitan Council has awarded approximately 70 grants to the City of Saint Paul under the Metropolitan Livable Communities Act program for approximately 36 different projects; and
WHEREAS, a subset of LCA grants awarded to the city are redeployed to developers as loans, particularly for projects utilizing low-income housing tax credits (“LIHTC”) to increase the eligible basis and generate more equity for the project; and
WHEREAS, grants deployed as loans have the potential to be repaid to the city; and
WHEREAS, historically, the Metropolitan Council has required the city to request permission to reuse repaid loan proceeds or to repay the funds to the Metropolitan Council; and
WHEREAS, on August 14, 2024, the Metropolitan Council approved business item 2024-210 to clarify the policy for reusing Metropolitan Livable Communities Fund grants deployed as loans that are repaid to the grantee (city) and provide more options; and
WHEREAS, this clarification allows the city to use repaid loan funds for affordable housing purposes without requiring explicit approval from the Metropolitan Council; and
WHEREAS, the city will report any redeployment of repaid funds as part of the annual Metropolitan Council Housing Production & Policy Survey already completed by Housing Division staff;
WHEREAS, the Metropolitan Council is seeking to amend prior grant agreements bet...
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