HRA Meeting Date: February 6, 2025
To: Members of the Housing and Redevelopment Authority
From: Jake Reilly, Community Development Director
Melissa Hanson, Housing Coordinator
Title
Update and Discussion Regarding Redevelopment of 307 Sumner Street.
Body
Action Requested:
HRA to consider a resolution supporting the sale of 307 Sumner Street to Oberto Properties, LLC and Rice County Habitat for Humanity.
Summary Report:
The Development Team has provided the following documents (Attachment 2) as requested in Resolution 2024-005:
* Construction Financing commitment letter from 1st United Bank
* Rice County Habitat for Humanity (RCHFH) cash flow
* RCHFH Profit and Loss Statement
* RCHFH Balance Sheet
* Letter from Minnesota Housing identifying $60K of State Housing Tax Credits (SHTC) to the Sumner Street property. Note: in our Homeowner Financing Example, we have 20K per unit from the SHTC listed. We are hopeful that we will get at least 20K more when the program opens again in the spring of 2025.
* Projected Cost PER UNIT (nothing changed since original submittal in December 2024)
* Homeowner Financing examples (where the partner family financing will come from) (nothing changed since original submittal December 2024)
* Detailed plans for the two duplexes (same design as presented at the December 2024, HRA mtg but with further detail)
RCHFH and Oberto Properties' representatives have had preliminary conversations with the Building and Planning divisions of Community Development. The team has not yet made formal application to either department. They are prepared to do so with assurance of the land commitment by the HRA. Staff will require a pre-application meeting and a community information meeting for this project.
The applicant will provide an update to the HRA.
Staff recommend that the HRA Board approve resolution 2024-00X so that the staff and developer team can move forward with due diligence related to subdividing the property and to solve f...
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