Orono Woods Financial Package-Resolutions

Home Browse Search

CITY OF ORONO PROGRAM FOR THE FINANCING OF A MULTIFAMILY RENTAL HOUSING DEVELOPMENT FOR SENIORS Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Orono (the "City") has been authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has determined that it is in the best interests of the residents of the City to create a program of financing to encourage and facilitate the development of multifamily rental housing for seniors in the City (the "Program"). The City has received a proposal from representatives of Wedum Foundation, a Minnesota nonprofit corporation, and Orono Senior Housing, LLC (the "Owner"), requesting that, pursuant to the Act,the City approve a program providing for the acquisition of the Land and construction of 62 units of multifamily housing for seniors (the "Project")to be located at the intersection of Brown Road and Wayzata Boulevard in the City and intended, by location and design,to provide safe and affordable housing for, and to be occupied by, persons age 62 and older. The acquisition and construction of the Project is to be funded through the issuance of up to $9,000,000 in revenue bonds issued by the City (the "Bonds") pursuant to the Act. At least twenty percent (20%) of the units financed will be specifically reserved for tenants whose incomes are not greater than fifty percent(50%) of the area median income. It is estimated that rents for the Project will be approximately, depending on unit size and amenities: 1 Bedroom $875 1 Bedroom+Den $1,050 2 Bedroom $1,100 - 1,250 2 Bedroom+Den $1,435 - 1,500 50% of Median Income 1 Bedroom $616 1 Bedroom+Den $738 The City, in establishing this Program, has considered, among other things (i)the availability and affordability of other government housing programs; (ii) the availability and affordability of private marketing financing for the construction of multifamily housing units; (iii) an analysis of population, employment trends and projections of future population trends and future employment needs; (iv)the recent housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. The City, in adopting the Program, has further considered(i)the amount, timing and sale of Bonds to finance the estimated costs of the housing units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's housing plan and its objectives; (iii) the method of administering, servicing and supervising the Program; (iv) the costs of the City, including future administrative expenses; (v)the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations.