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Little Canada approves agreements and up to $200,000 in LAHA for 106-unit senior affordable housing
Summary
The Little Canada City Council authorized development and funding agreements to support a 106‑unit, 100% affordable senior apartment project at 99 County Road B East, approving up to $200,000 from the city’s Local Affordable Housing Aid fund and a $922,500 LCDA subrecipient agreement.
The Little Canada City Council on June 10 authorized development agreements and local funding to advance a 106‑unit affordable senior apartment project at 99 County Road B East.
The council approved a development agreement and authorized up to $200,000 from the city’s Local Affordable Housing Aid (LAHA) fund to help make the project viable. The council also approved a Livable Communities Demonstration Account (LCDA) subrecipient package rolling prior LCDA allocations into a single $922,500 program loan to be administered through the city.
Community Development Director Ben Harrington told the council these actions complete the city’s final set of approvals for the project and that staff recommended the LAHA contribution rather than tax increment financing because LAHA is an efficient, statute‑permitted tool for this use. Harrington also explained that the LCDA program is reimbursement‑based and the developer will submit requests to the Metropolitan Council for reimbursement; the city will serve as the grantee/subrecipient for administration and regional compliance. He said the developer aims to close on the property this month and begin construction in July.
Council Member Miller moved to approve the development agreement and LAHA expenditure; Kwapick seconded. The motion passed unanimously, recorded as Resolution 2026‑6‑83. Schwalbach moved to approve the LCDA subrecipient agreement and related documents; Miller seconded. That motion passed unanimously as Resolution 2026‑6‑84.
The agreements include a development agreement between the City of Little Canada and LC Apartments, LP and a companion memorandum of understanding among the city, LC Apartments, LP, and FFAH V LC Senior Apartments MN, LLC, authorizing up to $200,000 in LAHA funds. The LCDA package consolidates the 2024 ($490,000) and 2025 ($432,500) allocations into a single $922,500 loan and includes a promissory note, mortgage/security documents, and a subordination agreement in favor of the fiscal agent and senior lender as described in the council packet.
The council’s approvals do not change the cited project size (106 units) or the developer’s stated schedule; Harrington said the developer expects to close this month and begin construction in July. The council discussion confirmed that LAHA funds are limited to statutorily permitted housing purposes and staff will continue to administer the LCDA documents and reporting requirements.
The city provided no additional details in the meeting about the project’s operating partner, tenant selection criteria, or long‑term affordability controls beyond items in the development agreement. The city authorized the mayor and city administrator to execute the agreements on the city’s behalf.
