Sherburne County is helping to keep low-income housing in the City of Big Lake.
Last week, after a brief public hearing, the county board and Housing & Redevelopment Authority (HRA) approved a proposal to issue $1.6 million in conduit bonds to finance a low-income multi-family housing project.
Leighton’s Landing Townhomes of Big Lake Limited Partnership currently owns a three-building, 32-unit affordable housing project in Big Lake just off Hwy. 10 west of the lake. The units are two-story with attached garages.
The investor is seeking to sell its interest in the units and Central Minnesota Housing Partnership (CMHP) was requesting the county issue $1.6 million in bonds so the organization could purchase the units and keep it as affordable housing.
CMHP is a non-profit organization that currently owns 678 affordable housing units in a 16-county region.
“We manage 418 of those in-house,” said Deanna Hemmesch, executive director of CMHP.
Leighton’s Landing has fiscal restrictions on who can reside in the units.
“We can not rent to anyone with over 60% of the median income for the area,” said Hemmesch. “The current investor wants to exit the partnership and is requiring that we sell the property. So we would like to preserve the financing and the affordability on that property by purchasing it and finding a new investor.”
The units are fully occupied. They were financed through the low income tax credit program 18 years ago.
The bonding money will also allow CMHP to do improvements on some of the units, like putting in new boilers and water heaters, said Hemmesch.
Rhonda Scoby of Dorsey & Whitney, the county’s bond counsel, said the county is not responsible to cover any costs associated with the bonds.
“These are conduit issues. There is no liability for the county or for the HRA,” she said. “Any expenses associated with this transaction, whether arising now or in the future, the borrower in the documents indemnifies the county and the HRA fully.”
Assistant Administrator Dan Weber said the county’s only cost was staff time to arrange the transaction.
Abatements
The board set a public hearing for Aug. 4 at 9:05 a.m. to consider a tax abatement of $89,930 for Morrell Companies to construct a 13,824 sq. ft. building in the Nature’s Edge Business Center in Elk River.
The board set a public hearing for Aug. 4 at 9:45 a.m. to consider a tax abatement of $811,845 for Sportech, Inc. to construct a 105,000 sq. ft. facility, also in the Nature’s Edge Business Center.
