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File #: DC-1410    Version: 1
Type: Consent Action Status: Passed
File created: 9/1/2022 In control: Board of Commissioners
On agenda: 10/4/2022 Final action: 10/4/2022
Enactment date: 10/4/2022 Resolution #: 22-425
Title: Approval Of Amendments To Dakota County Community Development Block Grant Program - Horizon Heights Townhomes Acquisition
Sponsors: Physical Development Administration
Attachments: 1. Affidavit of Publication and Public Notice.pdf
DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action

TITLE
title
Approval Of Amendments To Dakota County Community Development Block Grant Program - Horizon Heights Townhomes Acquisition
end

PURPOSE/ACTION REQUESTED
Approve substantial amendments to the 2020 and 2021 Community Development Block Grant (CDBG) Programs for acquisition of Horizon Heights Townhomes in Burnsville.

SUMMARY
Three types of substantial amendments to the CDBG Program are permissible by the U.S. Department of Housing and Urban Development (HUD): creation of a new activity or cancellation of an activity, increase or decrease of an activity budget by $100,000 or more at one time, and change to the location and/or national objective of an activity. The Dakota County Community Development Agency (CDA) administers the CDBG program on behalf of Dakota County.

Horizon Heights Townhomes is an existing 25-unit affordable rental townhome development located at 1 Horizon Heights Road in Burnsville. Horizon Heights was constructed in 1980 and has significant deferred maintenance needs. The development currently has a project-based Housing Assistance Payment contract for 100 percent of the units, allowing residents to pay a percentage of their income towards rent payments, with HUD paying the remaining portion. Christopher Michael Cooper & Associates (CMC), a for-profit developer, is purchasing the property and has committed to maintaining the affordability of the development. Additionally, CMC has committed to completing substantial improvements and maintenance to the development. The total costs for the acquisition and necessary rehabilitation were anticipated to be $9.1 million. CMC has obtained funding for the project from the Minnesota Housing Finance Agency and the CDA. The CDA is providing a $500,000 HOPE loan for acquisition and rehabilitation expenses. The rehabilitation costs were anticipated to be $3.1 million in 2021. CMC has since found additional deferred maintena...

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