 |
AGENDA RECOMMENDATION |
Consent Calendar 6.I.
City Council Regular Meeting
- Meeting Date:
- 07/08/2024
Agenda Item:
Resolution of Support for the Partnership Community Land Trust Phase IV in Mankato.
Recommendation/Action(s):
Adoption of the attached Resolution.
Summary:
The Southwest MN Housing Partnership (SWMHP) established their Partnership Community Land Trust (PCLT) in 2008 and continues to own and lease land for affordable homeownership and rental in southwest Minnesota. SWMHP expanded the PCLT into Mankato in 2022 to respond to the significant affordable homeownership needs in Mankato, which has limited the ability by existing and prospective low-and-moderate income families to purchase and own a place to call home. Currently, under Phase I – II, the PCLT has funding to support three acquisition/rehabilitation homes and three new homes in the City of Mankato. Phase III went under contract with the City on May 28, 2024, and expands the PCLT with an additional 5 acquisition/ rehabilitation homes and two new homes through 2026. The SWMHP is seeking partnership with the City of Mankato and Blue Earth County to support a Phase IV application to MN Housing.
The SWMHP is preparing an application to the MN Housing’s Impact Fund Program to support single-family development through Phase IV of the PCLT. This application cycle is a priority for the PCLT with the MN State Legislature committing more funding to expand and preserve affordable housing so that homeownership is a reality for more Minnesotans. The application deadline for Phase IV is July 11, 2024.
The project will further the city’s objectives to preserve and create affordable homeownership opportunities by increasing development of new housing. The PCLT will address the housing disparities and support inclusive communities by working with the lowest income families to purchase homes. Families will have the opportunity to select homes that best meet their needs.
The SWMHP is prioritizing the creation of 10 new construction homes in this Phase IV. Due to the competitive nature of this funding round, the request prioritizes buyers that do not exceed 80% AMI at the statewide average as listed here:
To achieve success in Phase IV, the SWMHP is seeking partnership with the City of Mankato and Blue Earth County to support this application. The SWMHP is proposing $500,000 from the City and County ($250,000 from each) using Statewide Affordable Housing Aid allocated to a local Housing Trust Fund. These funds would be included with $750,000 in other sourced funding as leveraged funding in a request to Minnesota Housing for $1.25 million.
The requested action is adoption of the resolution in support of Phase IV of the Partnership Community Land Trust in the amount of $25,000 per home, for ten (10) new construction homes, totaling $250,000 and subject to approval of the MN Housing Impact Funding. The grant fund commitment will be a pipeline of funding available on a pay as you go, ongoing basis upon sale of each home through December 31, 2027.
The SWMHP is preparing an application to the MN Housing’s Impact Fund Program to support single-family development through Phase IV of the PCLT. This application cycle is a priority for the PCLT with the MN State Legislature committing more funding to expand and preserve affordable housing so that homeownership is a reality for more Minnesotans. The application deadline for Phase IV is July 11, 2024.
The project will further the city’s objectives to preserve and create affordable homeownership opportunities by increasing development of new housing. The PCLT will address the housing disparities and support inclusive communities by working with the lowest income families to purchase homes. Families will have the opportunity to select homes that best meet their needs.
The SWMHP is prioritizing the creation of 10 new construction homes in this Phase IV. Due to the competitive nature of this funding round, the request prioritizes buyers that do not exceed 80% AMI at the statewide average as listed here:
| Low-Income Limit (LIL) 80% of Median Statewide |
|||||||
| 1 Person | 2 Person | 3 Person | 4 Person | 5 Person | 6 Person | 7 Person | 8 Person |
| $62,650 | $71,600 | $80,550 | $89,450 | $96,650 | $103,800 | $110,950 | $118,100 |
To achieve success in Phase IV, the SWMHP is seeking partnership with the City of Mankato and Blue Earth County to support this application. The SWMHP is proposing $500,000 from the City and County ($250,000 from each) using Statewide Affordable Housing Aid allocated to a local Housing Trust Fund. These funds would be included with $750,000 in other sourced funding as leveraged funding in a request to Minnesota Housing for $1.25 million.
The requested action is adoption of the resolution in support of Phase IV of the Partnership Community Land Trust in the amount of $25,000 per home, for ten (10) new construction homes, totaling $250,000 and subject to approval of the MN Housing Impact Funding. The grant fund commitment will be a pipeline of funding available on a pay as you go, ongoing basis upon sale of each home through December 31, 2027.