05-13-09 Council Agenda - Laserfiche WebLink

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Ramsey County Funding Request Application 2009 Ramsey unry Proiect Narrative: (Describe existing situation and outcomes related to Ramsey County priorities listed in Attachment A. Briefly summarize; then add additional pages as necessary. Please include the information requested below:) Multi Family Housing Projects should submit the MHFA Common Application with the Ramsev County Aoolication. Beneficiary Information: How will this project benefit low and moderate income residents of Ramsey County? Please include how many persons/households are expected to benefit, income levels, and means of verifying income. Public Service Projects CDBG funds may only be used for new or expanded social services. CDBG funds, by statute, may not be used to replace other funds. Awarded funds will be on a reimbursement basis based on a per client cost for each eligible client served. Please include: Estimated number of clients served • Estimated cost per client served • Program budget The City of Little Canada has a number of residential condominiums that were constructed in the 1970's. These complexes are now facing some significant costs to upgrade/maintain their structures due to their age as well as new state mandates (elevators & swimming pool drains). In some cases, association dues have not been adequate to address the magnitude of expenses that now need to be incurred. This project will assist two condominium complexes in Little Canada. One is Fleur Royale Condominums (117 units). The other is Canabury Condominiums (101 units). Both units have ownership/occupancy of over 50% low to moderate income. The City of Little Canada has offered to assistance these complexes by creating a Housing Improvement Area (HIA) for each property pursuant to Minnesota Statutes Chapter 428A. Fees have been assessed and the veto period will expire on May 14`h. As indicated in the project budget, each complex has had significant prepayments of fees assessed. Those that have not prepaid will have their fees spread over a 15 year period for Canabury Condominum and 10 years for Fleur Royale. The City will issue taxable debt to finance the unpaid fee amounts. Ramsey County monies will be used to offset the higher interest rates associated with the City's financing thereby blending the rate to make repayments more affordable. City debt is anticipated to carry an interest rate in excess of 6%. By blending the County's money (loaned at two percent) will result in a net interest rate of about four percent for Fleur Royale and under 2.25% for Canabury Condos. (The difference in the net rates is attributable to the amounts of prepayments received for each project and the remaining amount to be financed.) The County's money will be repaid by the City with fee assessment payments collected over 30 years for Fleur Royale and 15 years for Canabury Condominiums. The outcome achieved will be the rehabilition of two housing complexes in our city with repayments being more affordable than what would have occurred without County assistance. This means Priority Use of "Rehabilitation loans for eligible Condominium and Townhome developments." 2