§ 11-6. Income limits for housing development in Tax Increment District No. 8.

(a)

Purpose.

(1)

In order to address and alleviate the shortage of decent, safe, and sanitary housing of persons of low or moderate income in Chanhassen, and to provide for other redevelopment opportunities, the Downtown Chanhassen Redevelopment Project Area and Tax Increment Financing District No. 8, both located in downtown Chanhassen have been created.

(2)

The Chanhassen Economic Development Authority will be considering assistance to housing facilities located within the TIF district.

(3)

Tax Increment Financing District No. 8 is a "housing district" under section M.S. § 469.174, subd. 11 of the TIF Act. Accordingly, in compliance with the requirements of M.S. § 469.1761, subdivision of the TIF Act, the development must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code.

(4)

This section is intended to establish and declare the income requirements for the development.

(b)

Income limitation requirements.

(1)

No more than 20 percent of the fair market value of the minimum improvements may be used for any purpose other than low and moderate income housing.

(2)

At least 20 percent of the units must be reserved for persons whose income is no more than 50 percent of the median for the Twin Cities metropolitan area.

(3)

An additional 50 percent of the units must be reserved for persons whose income is no more than 110 percent of the median for the Twin Cities metropolitan area.

(4)

At least ten percent of the units are reserved for persons whose income is no more than 150 percent of the median for the Twin Cities metropolitan area.

(5)

Up to 20 percent of the units may be occupied or available for occupancy by any persons without regard to income limitations.

(c)

Additional requirements.

(1)

The limits described in subsections (b)(2), (b)(3) and (b)(4) above, must be satisfied commencing with the date on which at least ten percent of the units are occupied.

(2)

Income for calculation of the limit described in subsection (b)(2) above, shall be adjusted for family size in accordance with section 142(d) of the Internal Revenue Code and related regulations.

(3)

Income for occupants of units described in subsection (b)(3) above, need not be adjusted for family size, and shall be based on the state-wide gross income for a family of four.

(Ord. No. 344, § 1, 6-14-03)