City Council Meeting Date: October 7, 2025
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Melissa Hanson, Housing Coordinator
Title
Consider Resolution Approving the Issuance of Conduit Debt for Standard Communities (Jefferson Square Townhomes Project).
Body
Action Requested:
The Northfield City Council approves the attached resolution authorizing the Issuance, Sale, and Delivery of its Conduit Multifamily Housing Revenue Note for 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 income restricted in the same way. Residents at this townhome property pay no more than 30 percent of their gross income for the rent amount, less approved HUD deductions such as medical and childcare expenses, and other allowances, including a utility allowance.
Attached is the resolution to be considered by the City Council. There is no ri...
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