HomeMy WebLinkAboutA2. Larkspur Commons1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Wendy Thomas, Community Development Director
SUBJECT: Homeword and GMD Development LLC’s request for a public hearing to
provide the opportunity for public comment on whether the low income housing
tax credit development known as Larkspur Commons meets a community need. The property is located the north of Manzanita Drive between 12th and 14th Avenues more specifically 1236 & 1240 N. 14th Ave, 1241 & 1245 N 12th Ave,
1233, 1271, 1323 & 1375 Manzanita Drive.
MEETING DATE: March 7, 2016 AGENDA ITEM TYPE: Public Hearing, No Action Required
RECOMMENDATION: Conduct a public hearing in order to provide an opportunity for the public
to comment on whether the low-income housing tax credit development known as Larkspur Commons meets a community housing need.
BACKGROUND: Homeword and GMD were allocated tax credits by the Montana Board of
Housing for Larkspur Commons. The development will contain 136 units of housing for households
making 60% or less of area median income.
In May 2015, during a presentation to the City Commission, GMD stated that they would be seeking
property tax relief for the project pursuant to Montana Code Annotated 2015, 15-6-221, Exemption for
rental housing providing affordable housing to lower-income tenants. The referenced MCA is
attached to this memo for your reference. The state code allows developments that provide affordable rentals, meeting specified criteria, to seek property tax exemption. Larkspur Commons meets the
threshold for percentage of units where at least 40% of the units are rent-restricted to persons whose
household incomes do not exceed 60% of AMI adjusted for family size. A requirement for requesting
the tax exemption from the state is to conduct an advertised public hearing through the local
government. The public hearing was advertised in the Bozeman Daily Chronicle on February 12th and 27th in the legal section. No vote on this request is required from the City Commission.
UNRESOLVED ISSUES: None at this time.
ALTERNATIVES: 1) Do not conduct the public hearing.
2) As determined by the Commission.
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FISCAL EFFECTS: The application, if approved by the State of Montana will result in a property tax exemption for as long as the property is used for affordable housing. Local assessments will be
paid.
Attachments: MCA 15-6-221
Property Tax Exemption Application
Report compiled on: February 22, 2016
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