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Development Agreement by and Between City of Luverne and Southwest Minnesota Housing Partnership
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The City is collaborating with the Southwest Minnesota Housing Partnership on a potential housing project in the Reisch Addition. The proposed project would include new construction of owner-occupied, single-family duplexes on the three lots (creating 6 units). These units would be 2-3 bedrooms, 2 baths, with an attached garage and provide affordable housing to the local workforce. Eligible buyers would need to meet household income limits not to exceed 115 percent AMI ($128,000 annually). The Housing Partnership will prepare an application to the MN Housing Finance Agency Impact Fund program, which is due July 11th. The Impact Fund may be used to address the affordability gap for home buyers or the value gap for developers and may come in the form of a deferred loan or grant. A community open house will take place in June to present the proposed concepts and receive feedback prior to submitting the funding application. If awarded, the City shall provide the property and utilities in-kind and the SWMHP shall manage the development, construction, and sale of the homes. Construction would begin in 2025.
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City Administrator Recommendation: City Council Approve Development Agreement by and Between City of Luverne and Southwest Minnesota Housing Partnership.