Title
Approval of loan in the amount of $315,000 to New Verticals Development LLC to be used for acquisition costs at time of closing on 1749 Thomas Avenue, District 11, Ward 4
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 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 HRA previously allocated $3,000,000 of Housing Trust Fund dollars to the NOAH Preservation Fund; and
WHEREAS, staff have determined the $315,000 loan request from New Verticals Development LLC is reasonable and aligns with the per-unit amounts in the NOAH Preservation Fund program guidelines, and will be subject to underwriting and due diligence, and represents a positive public use and purpose to preserve 7 affordable housing units in an area of ongoing displacement identified in the Anti-Displacement Study; and
WHEREAS, after the senior lender mortgage and borrower equity, the HRA NOAH Preservation Fund source will provide sufficient gap financing for acquisition of the project at 1749 Thomas Avenue, now, therefore, be it:
RESOLVED by the Board of Com...
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