07-24-1997 - Laserfiche WebLink

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• HOME FUNDS We have applied for, and Ramsey County has set aside, $200,000 in HOME funds. This would be structured as a long term loan at or below market rate of interest. We have met with Ramsey County and have a high degree of confidence in Ramsey County's support of this request . FEDERAL HOME LOAN BANK GRANT We have applied for a $224,000 grant from the Federal Home Loan Bank to help keep rents affordable. The Federal Home Loan Bank has invested in three of our previous projects, and thus we have a strong confidence that they will look favorably at this investment. SUBSIDIZED FUNDING We have applied for $978,000 in proceeds from the Holman Decree. This substantial funding level is critical to maintaining the quality level we have proposed. In exchange for the Holman investment, we would be required to set aside seven units for rent to families on the Minneapolis Public Housing waiting list, and another three units would be set aside for Mounds View residents. It is critical to keep in mind that we are not required to accept any potential residents for these (or any of our) units unless they meet our rigorous screening standards. All residents must pass a criminal background check, have good credit history, have strong references from . past landlords, and be able to afford the rents we charge. In order to receive the Holman equity investment, the City must approve the "Holman Units" and must approve a 5-10% payment-in- lieu of taxes on these ten units. We estimate the taxes on these ten units would be approximately $300/unit/year x 10 units = $3,000/year. Obviously the taxes on the remaining 46 units would be at a higher rate. EDA LAND/CITY LOAN We are requesting that the EDA sell its .6-acre parcel of land to MSP at a market price (estimated at $35,000), and make a TIF contribution of $230,000 to help fund costs of land assemblage and extensive land improvements. Thus the net TIF request from the City would be $230,000 - $35,000 = $195,000. This funding will offset the costs of land assembly and reconfiguring the project entrance and parking areas to help portray a quality image to the community and residents. This $195,000 investment spurs over $4,900,000 of total investment. LEASEHOLD COOPERATIVE/REAL ESTATE TAXES Although the entire property will be owned by a partnership, controlled by MSP Real Estate and Affordable Suburban Housing as the general partners, the developer will form a Cooperative Board comprised of property residents to provide input into the upkeep and operations of this property. This board helps provide a sense of ownership to the residents, and most importantly, residents receive the benefit of homestead tax rates. Based on preliminary discussions with the • Ramsey County Assessor we are estimating the following real estate tax levels: