City Council Meeting Date: May 6, 2025
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Jake Reilly, Community Development Director
Melissa Hanson, Housing Coordinator
Title
Consider Resolution for the City of Northfield Granting Preliminary Approval of the Issuance of Conduit Debt for Standard Communities (Jefferson Square Townhomes Project).
Body
Action Requested:
Consider Resolution Granting Preliminary Approval to the Issuance of Conduit Revenue Bonds to Finance the Costs of a Multifamily Rental Housing Facility Under Minnesota Statues, Chapter 462C, as Amended; Calling for a Public Hearing; Establishing Compliance with Certain Reimbursement Regulations under the Internal Revenue Code of 1986, as Amended; and Taking Certain Other Actions with Respect Thereto (Jefferson Square Townhomes Project).
Summary Report:
Standard Communities, or an affiliate thereof (the "Borrower"), has requested that the City of Northfield, Minnesota (the "City") issue conduit multifamily housing revenue bonds in an amount not to exceed $10,000,000 (the "Bonds") to finance the acquisition, construction, rehabilitation and equipping of an approximately 50-unit multifamily housing development for households of low and moderate income and functionally related facilities, including garages and surface parking, located at 1356 Jefferson Road in the City (the "Project").
This is a common approach around the state and the country and is considered an affordable housing "preservation" project in that it extends the affordability term an additional thirty years and enables the property owner to completely rehabilitate the property. Many HUD-funded projects convert to market rate units after their affordability term has sunset. This process ensures that Northfield residents are not displaced while also allowing the property to be completely rehabilitated with no risk to the residents of a rent increase, as the property continues to be incom...
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