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REQUEST FOR COUNCIL ACTION <br />CnilMril <br />fEB 2 3 2004 <br />CITV OF ORONO <br />DATE: February 19,2004 <br />ITEM NO: <br />Department Approval: <br />Name Ron Moorse <br />THIc City Administrator <br />Administrator Reviewed:Agenda Section: <br />City Administratoi's Report <br />Item Description: Western Hennepin‘’'Affordable Housing Land Trust (WHAHLT) CDBG <br />Application <br />Tbe WHAHLT is applying for funding through the CDBG grant process to assist the organization <br />in purchasing either single-family lots or existing homes to enable affordable housing. The Land <br />Trust facilitates affordability by eliminating the land costs from the housing cost equation. When <br />the Land Trust purchases a vacant parcel, it builds a house on it. When it sells the house, it does <br />not sell the land. Rather, it retains ownership of the land, and provides a long term land lease to the <br />home buyer. In this way, the new owner does not have to pay the land costs. This makes the house <br />affordable. Also, over time, as the house is resold, the cost remains affordable because the <br />appreciated value of the land is not included in the price of the house. <br />If the grant application is successful, it would enable the Land Trust to purchase one or two <br />properties. The Land Trust would like to work with the Cities of Orono, Shorewood and Tonka Bay <br />to find properties that would be a good fit for the Land Trust. The City ’s support for the grant <br />application would assist in making the grant application successful. <br />COUNCIL ACTION REQUESTED: <br />Motion regarding support for the WHAHLT CDBG grant application. <br />r <br />li