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IV. STATUTORY AUTHORITY AND DISTRICT ELIGIBILITY AS A HOUSING <br />DISTRICT <br />A. Housing District <br />The District is a "Housing District" pursuant to <br />Minnesota Statutes, Chapter 469.174, Subdivision 11. <br />"Housing district" means a type of tax increment <br />financing district which consists of a project, or a <br />portion of a project, intended for occupancy, in part, by <br />persons or families of low and moderate income, as <br />defined in Chapter 462A, Title II of the National housing <br />Act of 1934, the National Housing Act of 1959, the United <br />States Housing Act of 1937, as amended, Title V of the <br />Housing Act of 1949, as amended, any other similar <br />present or future federal, state, or municipal <br />legislation, or the regulations promulgated under any of <br />these acts. A project does not qualify under this <br />subdivision if the fair market value of the improvements <br />which are constructed for commercial uses or for uses <br />other than low and moderate income housing consists of <br />more than 20 percent of the total fair market value of <br />the planned improvements in the development plan or <br />agreement. The fair market value of the improvements may <br />b,e determined using the cost of construction, capitalized <br />income, or other appropriate method of estimating market <br />Value. <br />The proposed 92 unit project is a 100% residential <br />project, with no portion intended for commercial uses. <br />B. Housing District Income Requirements <br />In compliance with Minnesota Statutes 469.176 1 the <br />proposed project will comply with the following income <br />requirements: <br />The property must satisfy the income requirements for a <br />qualified residential rental project as defined in <br />Section 142 (d) of the Internal Revenue Code. A property <br />also satisfies the requirements of Section 142 (d) if 50 <br />percent of the residential units in the project are <br />occupied by individuals whose income is 80 percent or <br />less of area median gross income. The requirements apply <br />for the duration of the tax increment financing district. <br />Failure to comply with the requirements results in <br />application of the duration limits for economic <br />development districts to the district. If at the time of <br />the noncompliance the district has exceeded the duration <br />limits for an economic development district, the district <br />9 <br />Page 35 <br />