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Consideration of reallocation of $113,427 of CDBG funds to MSP Real Estate Inc., including a Level Three fund transfer
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Submitted by:
Jennifer Ferguson
Department:
Development Department
A. Issue
Approval of the reallocation of $113,427 of Community Development Block Grant (CDBG) funds to MSP Real Estate, Inc. for eligible site acquisition and development soft costs related to the development of affordable housing.
B. Background/Options
Staff is requesting $113,427 of existing Community Development Block Grant (CDBG) funds be reallocated for the purpose of providing money to MSP Real Estate for eligible site acquisition and soft costs related to their affordable housing development located at the Mayfair Collection, 11500 West Burleigh Street.
The development will total 80 apartment units in two separate four-story buildings. One building will be a 39-unit age-restricted (55+) building and the second building will be a 41-unit non-age-restricted building. Fifty-six of the units will be offered at affordable rents across various median income ranges and unit sizes.
Funds for the reallocation are comprised of unspent balances from Tosa Food Pantry ($6,000) and general program administration in years 2021 and 2022 ($107,427). Reallocating these CDBG funds allows the city to meet HUD spending requirements in a timely manner as unexpended balances weigh down the city’s spending ratio.
In addition to the reallocated funds, the Community Development Authority’s approved 2023 CDBG award ($186,573) will round out the balance of the $300,000 in CDBG funding needed for MSP’s project, noted in the term sheet recently approved by Common Council.
C. Strategic Plan (Area of Focus)
n/a
D. Fiscal Impact
There is no direct impact on the City budget as a result of CDBG funding.
E. Recommendation
Recommend the Council approve of the reallocation of $113,427 of CDBG funds to MSP Real Estate Inc. including a Level Three fund transfer.