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MINUTES <br />CITY COUNCIL <br />SEPTEMBER 23, 1992 <br />Ippel reported that Bloomington has no choice in the <br />matter. Ippel reported that by Little Canada issuing <br />the bonds on both projects, the developer has less <br />issuance expenses since there is only one bond issue. <br />Collova asked what happens to rents once the 5 year <br />period lapses. <br />Ippel reported that a condition of the Community <br />Development Block Grant is that 51% of units be rented <br />to low and moderate income. TIF requirements are for a <br />15 year period. After 15 years there are no legal <br />requirements that units must be rented to low and <br />moderate income, however, bond documents require that <br />units are rented to the elderly for a 20 year period. <br />Ippel also reported that Presbyterian Homes will be <br />requesting Title II eligibility for real estate tax <br />purposes. The percentage of Title II eligibility <br />approval that is received will dictate the percentage <br />of low and moderate income rentals. Ippel reported <br />that low and moderate income for a family of four is <br />$50,000 and for a family of two is $30,000. <br />Dan Lindh reported that Presbyterian Homes' commitment <br />is to hold rent levels at a certain point and it is not <br />their purpose to leave out people because of economic <br />means. <br />Scalze asked about the Little Canada people who are on <br />the waiting list for the Presbyterian Homes project. <br />Dan Wilson reported that low to moderate income for one <br />person is $17,850 to $27,000. <br />LaValle asked about average social security benefits. <br />Wilson estimated the average at $500 to $600 per month. <br />LaValle expressed concern about the affordability of <br />the units for a low income individual receiving $500 to <br />$600 in social security benefits, if units are being <br />rented at $460 per month. <br />The City Administrator pointed out that individuals <br />might use asset values or other retirement plans or <br />income sources to approach low or moderate income <br />levels. The Administrator pointed out that CDBG and <br />TIF funds are being used in the project to get rents <br />down as low as possible. 51% of the units must be <br />rented to low or moderate income, and this percentage <br />might be increased depending on the Title II <br />percentage. <br />Page 7 <br />