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130312925v2 Taft Stettinius & Hollister LLP / Taftlaw.com / The Modern Law Firm Catherine J. Courtney 612.977.8765 CCourtney@taftlaw.com 2200 IDS Center, 80 South 8th Street Minneapolis, MN 55402-2210 Tel: 612.977.8400 | Fax: 612.977.8650 taftlaw.com Affirmative Action, Equal Opportunity Employer December 15, 2023 BY E-MAIL Chris Heineman City Administrator City of Little Canada 515 Little Canada Road E Little Canada, MN 55117-1633 Re: Issuance of Conduit Revenue Bonds by the City of Little Canada for Multifamily Affordable Housing Project known as Thompson Flats Located in West St. Paul Dear Mr. Heineman: This letter is provided to follow-up on discussions regarding the City of Little Canada (the “City” or “Issuer”) acting as the issuer of multifamily housing development bonds (the “Bonds”) to finance the acquisition and construction of a multifamily housing development for households of low and moderate income, and functionally related facilities, including an underground parking garage, expected to be known as Thompson Flats, located at 212 Thompson Avenue East, West St. Paul, Minnesota (the "Project"), at the request of Thompson Housing Limited Partnership, a Minnesota limited partnership (the “Borrower”), with Thompson Housing GP, LLC, a Minnesota limited liability company, as the general partner, which is associated with Reuter Walton. Taft Stettinius & Hollister LLP will act as bond counsel on the issuance of such Bonds. State and federal laws allow local government units to enter into arrangements to issue bonds and loan the proceeds to private developers to finance or refinance affordable housing projects. This assistance reduces borrowing costs for such borrowers and enables them to provide affordable housing for the residents of the City more cost effectively. It is a fairly common means of obtaining necessary financing for such projects. Oftentimes such projects will also take advantage of low-income housing tax credits, as is the case with this project. State and federal laws also permit local governmental units to issue such bonds for projects located outside of such government's jurisdiction, provided certain requirements are met. The Dakota County Community Development Agency (the "CDA") is a sub-allocator for projects located within Dakota County. This means that, for projects located within Dakota County, applications for allocation of bonding authority are typically made to the CDA instead of Minnesota Management and Budget ("MMB"). In addition, local governmental units within Dakota County cannot issue bonds for these projects if the CDA has allocation available. The CDA is currently not in a position to determine its allocation availability for 2024, and, therefore, the City of West St. Paul also cannot commit to act as issuer for this Project. Due to the competitive nature and the timing of the allocation awards from MMB, the Borrower is requesting the City to act as Issuer and make application to MMB for allocation of bonding authority. The CDA is