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<br />WS – Item 11 <br /> <br />WORK SESSION STAFF REPORT <br />Work Session Item No. 11 <br /> <br />Date: January 7, 2012 <br /> <br />To: City Council <br /> <br />From: Mary Alice Divine <br /> <br />Re: Letter of Support for HOME and CDBG grant s <br /> <br /> <br />Background <br />Dominium has proposed the development of an affordable tow nhome project of <br />approximately 40 -50 units in the Legacy development. Staff has worked with the <br />development team over the past several months to determine the financial feasibility of <br />the project. Several sources of income are needed by Dominium for this p roject to move <br />forward. Staff has negotiated with the developers from the point of view that it is <br />imperative that the City receive of all or a substantial portion of outstanding special <br />assessments on the parcel(s) that Dominium would acquire. <br /> <br />One issue that was unresolved for the developer has since improved with the passage of <br />the “Fiscal Cliff” legislation, extending a fixed 9% tax credit for affordable housing and <br />improving the developer’s pro forma. While negotiations with Anoka County and the <br />City a re still in early stages, Dominium would like to begin putting funding sources in <br />place by applying for an Anoka County HOME grant and a CDGB grant, both which <br />provide funding to affordable housing projects throughout the County. The deadline for <br />these app lication s is January 14. Dominium has requested a letter of support from the <br />City to include with the application s . This letter of support does not imply any future <br />financial commitments on the part of the City, Anoka County or Dominium. <br /> <br />Requested Council Direction <br />Staff is seeking consensus of the Council to provide a letter of support for Dominium’s <br />HOME grant and CDGB grant application. <br /> <br />Attachments <br /> <br />Letter of Sup port to be signed by the Mayor.