06/07/2010 Council Packet - Laserfiche WebLink

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• • • Dynamic project characteristics requires us to discuss and appreciate a set of facts It is unfortunate our request to acquire and refinance Willow Ponds has resulted in a perception the proposal is not consistent with the City's policy to retain the project for Lino Lakes senior citizens. I can clearly state as the proposed buyer of Willow Ponds, it is my intent to keep the project consistent with the last 13 years of operation, a high quality affordable senior rental housing project. My position is that the proposed ownership team and subsequent refinancing, in fact, advances the City's policy to retain Willow Ponds long term as an affordable senior housing project to serve the needs of elderly citizens. Willow Ponds is a complicated real estate development with a dynamic set of economics and restrictions worthy of a full and deliberate discussion between the proposed buyer and the City of Lino Lakes to fully appreciate how the proposal is consistent with City policy. Below are the facts I wish to present for discussion: 7 1. There is a set of multiple restrictive covenants on the property of which only one is the City's senior occupancy covenant. More demanding to the project's operation are the series of restrictive covenants placed on the property by the State of Minnesota as part of the original section 42 tax credit allocation process. Specifically, the MHFA restrictions limit all occupancy to persons /families earning less than 60% of the Anoka County median income. Second, the rents must be no higher than 30% of the 60% income restriction normalized for number of persons in a household The third restriction is to rent 50% of all the units to persons with disabilities. Please note: ■ rents are priced $100 below market ■ 30% of the tenants earn less than 50% Of Anoka County average. • For the last thirteen years, the project has fully complied with all the above listed restrictions as certified by the owner and accepted by MHFA. Attachment E is a copy of Willow Ponds MHFA LURA outlining the state's restrictive covenants.