CALLING FOR A PUBLIC HEARING AND AUTHORIZING PUBLICATION OF A NOTICE OF PUBLIC HEARING ON A HOUSING PROGRAM WITH RESPECT TO THE FORT SNELLING UPPER POST PROJECT AND THE ISSUANCE OF REVENUE BONDS OR OTHER OBLIGATIONS TO FINANCE SUCH PROJECT

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 August 14, 2018 and June 11, 2019, the Board of Commissioners of the HCHRA (the “Board”) adopted Resolution No. 18-HCHRA-0023 and Resolution No. 19-HCHRA-0026, respectively (together, the “Preliminary Resolution”), preliminarily 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 $88,000,000, under the provisions of the Housing Act, to assist in the financing of the acquisition, rehabilitation, and equipping of an approximately 210-unit multifamily rental housing development and facilities functionally related and subordinate thereto located at 6247 Bloomington Road, within unincorporated Hennepin County, for occupancy by persons and families of low and moderate income (the “Project”), to be owned and operated by Fort Snelling Leased Housing Associates I, LLLP, a Minnesota limited liability limited partnership (the “Borrower”); and

WHEREAS, pursuant to the Preliminary Resolution, the Board authorized and directed 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 for an allocation of bonding authority, and the preparation and submission to the Metropolitan Council for its review and comments 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, prior to the issuance of the Bonds a public hearing duly noticed must be held by 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 fifteen (15) days before the hearing.

History: Housing revenue bonds are a financing mechanism available to the Hennepin County Housing and Redevelopment Authority (HCHRA) to fund eligible projects that are determined to be in the public interest, including the development and/or rehabilitation of affordable housing. The bonds are a special limited obligation of HCHRA, are repayable solely from revenue and assets pledged in their support and are not a debt or property tax obligation of Hennepin County or the HCHRA.

Dominium, through affiliated entity Fort Snelling Leased Housing Associates I, LLLP (the “Developer”), submitted an application for housing revenue bond financing to assist in the rehabilitation of 26 historic buildings into a multifamily residential rental project at 6247 Bloomington Road (the “Project”) in the Fort Snelling Upper Post, unincorporated Hennepin County. The Developer is based in Plymouth, Minnesota.

The Fort Snelling Upper Post site was part of the larger Fort Snelling military base established in 1819. Construction of the Upper Post buildings began in 1879 and continued into the early 1900s. Over time, the Upper Post served as a defense facility, administration base, and rehabilitation center for wounded veterans. After the site was decommissioned in 1946, the property was transferred to the Minnesota Department of Natural Resources. Fort Snelling was placed on the National Register of Historic Places in 1966. The buildings have remained predominately vacant since that time and have fallen into disrepair. Once completed, the Project will include 210 rental housing units comprised of seven studio, 69 one-bedroom, 79 two-bedroom, 35 three-bedroom, and 19 four-bedroom, and one five-bedroom units. All units will be affordable to households at or below 60 percent of area median income, as defined by the U.S. Department of Housing and Urban Development (HUD). Units will remain affordable for at least 25 years and veterans will receive a rental preference. The current 60 percent annual income limits established by HUD for Hennepin County range from $42,000 for a one-person household to $60,000 for a four-person household.

Resolutions 18-HCHRA-0023 (adopted on August 14, 2018) and 19-HCHRA-0026 (adopted June 11, 2019) granted preliminary authorization to issue tax-exempt multifamily housing revenue bonds up to $88,000,000 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.

Since 2000, the HCHRA has issued approximately $158.6 million in conduit financing for seven projects supporting 1,066 affordable housing units. Another five projects - including the Fort Snelling Apartments, totaling approximately $170.8 million in revenue bonds and 752 affordable housing units, currently have obtained HCHRA’s preliminary and/or final approval for future issuance.

Current Request: This request is to establish a public hearing on September 17, 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 6247 Bloomington Road, Fort Snelling Upper Post.

Impact/Outcomes: Issuance of multifamily housing revenue bonds will create 210 housing units serving households at or below 60 percent of area median income and preserve 26 historic buildings at the For Snelling Upper Post.