Agenda - Council - 01/26/1999 - Laserfiche WebLink

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:1 I I I I I I I I I I I I I I I I i I ANOKA COUNTY COMMUNITY ACTION PROGRAM (ACCAP) HOUSING PROPOSAL By: Cindy Sherman, Community Development Director Background: CASE # In May of 1996 the City of Ramsey adopted an action plan for the development and/or preservation of affordable and life cycle housing. This plan was a requirement for communities who participate in the Livable Communities Program. The City recently reaffn'med its participation in this program for the fourth year. As part of the plan, housing affordability is specifically addressed with a list of policies and activities to assist in reaching the goal of providing a mix of affordable housing. It was envisioned that the EDA would explore avenues for financing affordable housing to help' the City reach it's goals and to work with other agencies when feasible. Observations: One such agency that works with development and management of a variety of housing types is the Anoka County Community Action Program (ACCAP). They have found a parcel in Ramsey located at the Southwest comer of Highway 47 and 153~ Ave. N.W. that they wish to pursue for construction of a 38 unit twin-home development for income eligible renters. ACCAP will develop, own, and manage the project like other properties they have in Anoka County (see attached list). The proposal is contingent upon participation by the City in the financing of the development. The City would need to commit to creating a tax increment district for the project and committing the increments to the project. ACCAP will apply for iow income housing tax credits and City support of the project is necessary to qualify. Recommendation: The Economic Development Authority reviewed this request at their January 12 meeting. The EDA generally supports the idea of assisting with financing affordable housing. However, they were not sure that the location proposed was the best site for this development. The information that ACCAP used in the site selection process has been provided to the City and is attached for Council review. The EDA recommends that the City Council commit to the creation of a Tax Increment Financing district with the intent of financing a housing development with Anoka County Community Action Program of up to 40 housing units on a site to be approved by the City. The recommendation is subject to the successful completion of the city review process and securing Iow-income housing tax credits form the Minnesota Housing Finance agency with a Tax increment Financing District life of up to 20 years.