Housing and Redevelopment Authority Board Action Request
Establish a public hearing on Tuesday, May 14 at 1:30 p.m. for public comment on the issuance of one or more tax-exempt multifamily housing revenue bonds for an affordable housing project at 854, 902 and 904 14th Ave NE, Mpls
WHEREAS, the Hennepin County Housing and Redevelopment Authority (the “Issuer” or “HCHRA”) is a housing and redevelopment authority and a public body corporate and politic duly organized and existing under the Constitution and laws of the State of Minnesota; and
WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Housing Act”), the Issuer is authorized to carry out the public purposes described in the Housing Act by issuing revenue bonds or other obligations to finance or refinance multifamily housing developments, and as a condition to the issuance of such revenue bonds, adopt a housing program providing the information required by Section 462C.03, subdivision 1a of the Housing Act; and
WHEREAS, on March 19, 2019, the Board of Commissioners of the HCHRA (the “Board”) adopted Resolution 19-HCHRA-0012 approving the issuance of one or more series of multifamily housing revenue bonds or other obligations (the “Bonds”), in an aggregate principal amount not to exceed $28,000,000, under the provisions of the Housing Act, to assist in the financing of the acquisition, construction, and equipping of an approximately 175-unit multifamily rental housing development and facilities functionally related and subordinate thereto, located at 854, 902, and 904 – 14th Avenue N.E., Minneapolis, within Hennepin County (the “County”), for occupancy by persons and families of low and moderate income (the “Project”), to be owned and operated by 14th and Central, LLLP, a Minnesota limited liability limited partnership (the “Borrower”) or its affiliate or assigns; and
WHEREAS, on March 19, 2019, the Board further approved the Executive Director and other officers, employees, and agents of the Issuer to participate in the preparation and review of necessary documents relating to the Project and the Bonds issued in connection therewith, including application to the State of Minnesota Department of Management and Budget (“MMB”) for allocation of bonding authority, and preparation and submission to the Metropolitan Council for its review and comments on a housing program with respect to the Project (the “Housing Program”) in accordance with the requirements of Section 462C.04, subdivision 2 of the Housing Act; and
WHEREAS, under Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), prior to the issuance of the Bonds a public hearing duly noticed must be held by the Board of Commissioners of the HCHRA (the “Board”). Under Section 462C.04, subdivision 2 of the Housing Act, a public hearing must be held on the Housing Program after publication of notice in a newspaper circulating generally in the County, at least 15 days before the hearing.
BE IT RESOLVED, that the Board of the HCHRA approve the following:
A public hearing on the Housing Program relating to the Project and the issuance of the Bonds shall be held before the Board of the HCHRA on May 14, 2019, commencing on or after 1:30 p.m. in the Hennepin County Commissioner Board Room A-2400 at the Hennepin County Government Center, 300 South Sixth Street, in the City of Minneapolis. The Clerk of the Board shall publish notice of the public hearing, in substantially the form attached hereto as EXHIBIT A in Finance and Commerce, the official newspaper of Hennepin County. Bond Counsel is hereby directed to publish notice of the public hearing in the Star Tribune, a newspaper of general circulation in Hennepin County. The notice shall be published at least once, in each newspaper, at least 15 days prior to the date of the public hearing, but not more than 30 days prior to the date of the public hearing, and a copy of the Housing Program shall be submitted to the Metropolitan Council for review and comment on or before the date of publication of the notice.
History: Schafer Richardson submitted an application for housing revenue bond financing to assist in the construction of 175 affordable rental housing units in the Logan Park neighborhood in Minneapolis.
Once completed, the project will contain a mix of apartment sizes ranging from studios to four- bedroom apartments. One hundred fifty of the units will be affordable to households at or below 60 percent of area median income (AMI), as determined by the U.S. Department of Housing and Urban Development (HUD). The remaining 25 units in the project will have project-based Section 8 vouchers through the Minneapolis Public Housing Authority; those units will be affordable to households at or below 30 percent of AMI.
The current 60 percent annual income limits, established by HUD for Hennepin County, range from $39,660 for a one-person household to $56,580 for a four-person household. The 30 percent income limits range from $19,830 for a one-person household to $28,290 for a four-person household. The project would remain affordable for a minimum period of 30 years.
Resolution 19-HCHRA-0012 granted preliminary authorization to issue tax-exempt multifamily housing revenue bonds for the project. At a future meeting, the HCHRA Board will consider final authorization to issue bonds. In a similar timeframe, the Hennepin County Board of Commissioners will consider a companion resolution approving the HCHRA’s action.
Current Request: This request is to establish a public hearing on Tuesday, May 14, 2019 at 1:30 p.m., or as soon thereafter as practicable, for the purpose of public comment on the issuance of tax-exempt multifamily housing revenue bonds for a project to be located at 854, 902 and 904 14th Ave NE, Minneapolis.
Impact/Outcomes: Issuance of multifamily housing revenue bonds will create 175 housing units, with 150 units serving households at or below 60 percent of AMI and 25 units serving households at or below 30 percent of AMI.
|Recommendation from County Administrator: Recommend Approval|