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90-1010 �R�'S'�a� ' Council File # Q(S '/d/O PED-Community Develonment Green Sheet ,� 4772 RESOLUTION CITY OF SAINT PAUL, MINNESOTA � � Presented By �� eferred To Committee: Date � -/�/ ��C) RESOLVED, that upon the recommendation of the Mayor and the Council Committee on Finance, Management and Personnel, and with the advice of the Capital Improvement Budget Committee, the Council of the City of Saint Paul does hereby approve the following amendments to the Community Development Block Grant Year XIII and XV Program: Current Increase Revised CD Year XIII Budget Decrease Budget ------------ ---------- ------------ ----------- Unspecified Contingency $708,003.86 $(500,000.00) $208,003.86 P6-100-39312-0537-61999 Transfer to CD Year XV 500,000.00 CD Year XV Single Family Rehab Loan Program 355,000.00 765,000.00 1,120,000.00 P6-100-39512-0537-61273 Homestead Assistance Program 280,000.00 (265,000.00) 15,000.00 P6-100-39512-0537-61283 Transfer from CD Year XIII 500,000.00 (500,000.00) -0- ---------- ------------ ------------ Totals $1,135,000.00 -0- $1,135,000.00 *****��*�*��*� ****�****** *****�**�� APPROVAL RECOriMENDED: Budget irector _`�eas Nays Absent Requested by Department of: mon Planning and Economic Development osw on � acca ee � e ma �— ane -� i son �— By: �. ��"�n Adopted by Council: Date �u�' i Form Approved by City Attorney Adopti Certified by Council Secretary �� By: By' ';��`� Appr ed by Mayor for Submission to Approved b Mayor: Date JUL i �. 1990 Coun il �,.,�'�� By: ��. 1��..�.�� sy: 90 p11BU3NED . . . �-9o.-�oi.o � � � '� , DEPARTMENT/OFFICE/COUNqL DATE INITIATED Pm - xous�g n��s�on 5/s�QO_ GREEN SHEET No. 4 7 7 2 CONTACT PERSON 6 PHONE PARTMENT OIRE (/� � �� CITY COUNqL INITIAUDATE Mary Tingerthal x3357, Curt Miller Nu� RYA77ORNEY �CITYCLERK MUBT BE ON COUNqL AQENDA BY(DA1'� ROUTING BUD(iET DIRECTOR 9 �FIN.8 MOT.SERVICES DIR. ��R MAYOR(OR A3813TANT) � P�gob TOTAL#�OF 81QiNATURE PAGE8 (CLIP ALL LOCATIONS FOR SI<iNATURE7 ACT'ION RE�UEBTED: Approval of the attached Council Reso],ution will provide the Cit 's Single Family Rehabilitation Loan Program with an additional �76�,000.00 The funds will be transferred from the CD Year XIII Contingency and the CD Year XV Homestead Assistance Program. . REOOMMENDATIONS:Approve(A)or Reject(R) COUNqL COMMITTEE/RESEARCH REPORT OPTIONAL PLANNINO COMMISSION _GVIL SERVICE COMMISSION �YST PHONE NO. �CI8 COMMITTEE _ _BTAFF _ COMMENT8: _DIBTRICT COURT — SUPPORTS WHICH WUNGL OBJECTIVE9 INITIATINO PROBIEM,ISSUE,OPPORTUNITY(WhO,Whet,When,Whero,Why): As part of the 1990 budgeting process, the Single Family Rehabilitation Loan Program request was reduced due to prior years program balances. The demand on the program has increased significantly since that time due to increased participation w�th State programs and URAP activity. The result is that the program requires additional financing in order to remain viable for the balance of 1990. ADVANTAQEB IF APPFiOVED: The Housing Division will be able to meet the needs of the neighborhoods by being able to continue to provide rehabilitation assistance to low and moderate income single family homeowners. ' . �uI I.oag-k��:�7�C�pit�,t f��?a��,� DISADVANTAOES If APPROVED: �31��g@t Committe@ r�saQi��+ � , None. (�ate) !"../b •�O ,,._.._s�i;a;;u::C,t��ts�� _.�, . CF1VFn Signed: � RE • � �O ��N1�-� DISADVANTAOES IF MOT APPROVED: ��V C � The Housing Divison will have to se�erelv curtail or susp.end many of its Single Family activities for the remainder of the year. �ouncil Research C:e��tl'�� JUN 481� TOTAL AMOUNT OF TRANSACTION s 76S�OOO.00 CpgT/REVENUE BUDOETED(CIRGLE ON� YES NO FUNDING SOURCE Community Development Block Grant p��VITY NUMBER P6-100-39XXX-0537-61273,61283,61999 FlNANCIAI INFORMATION:(EXPWI� ,{-- d�v i � :,,��„ : . CI'TY OF SAINT PAUL � � D11I lI .11� OFFICE OF THE CITY COUNCIL CITY HALL-7th FLOOI2-SAINT PAUL, MINNESOTA 55102 612-298-5506 TOM DIMOND COUNCILMEMBER Members: Tan Dimond, Chair Paula Maccabee Dave Thune Date: June 27, 1990 COMMITTEE REPORT HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE _1.J � Resolution 90-409 -- Resolution adopting the �Economic Development Strategy as part of the Saint Paul Comprehensive Plan (Laid Over in Committee 6/13/90) . COMMITTEE RECOMMENDED APPROVAL, AS THE PLAN WAS AMENDED, 3-0 2. Sibley Apartments (Galtier Plaza) -- Redevelopment Company contract Terms (Property Tax Abatement) (Referred from HRA 5/22/90; Laid Over in Committee 6/13/90) . THIS ITEM WAS LAID OVER TO THE JULY 11, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MEETING 3. Request for the Termination of Sublease between TGA, Inc. , and the City of Saint Paul on the City Walk Parking Ramp (Referred from HRA 5/22/90; Laid Over in Committee 6/13/90) . THIS ITEM WAS LAID OVER TO THE JULY 11, 1990, HOUSING AND ECONOMI DEVELOPMENT COMMITTEE MEETING AND WILL BE SCHEDULED FOR THE JULY 12, 1990, CITY COUNCIL MEETING 4. Authorization to Expend Rehab Initiative -- Code Enforcement Fund (Referred from HRA on 5/22/90; Laid Over in Committee 6/13/90) . ��OMMIJI - - ECOMMENDED APPROVAL AS AMENDED, 3-0 AND WILL BE SCHEDULED FOR THE ��'�ULY 12, 1990, ITY COUNCIL MEETING 5. Review of Comprehensive Home Assistance Program. THIS ITEM WAS LAID OVER TO THE JULY 11, 1990, HOUSING AND ECONOMIC�: `��---� DEVELOPMENT COMMITTEE MEETING AND WILL BE SCHEDULED FOR THE JULY �12, 1 9• CITY COUNCIL MEETING i Chair, Housing and Redevelopment Authority, Committees: Public Works; Housing and Economic Development; Finance. a6�S 100%Recycleable . . ��-�� ,� ��- HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE COMMITTEE REPORT - JUNE 27, 1990 PAGE TWO 6. Third and Maria Redevelopment Plan Recommendations. THIS ITEM WAS LAID OVER TO THE JULY 11, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MEETING 7. Lower Dayton's Bluff 40 Acre Study/Small Area Plan. THIS ITEM WAS LAID OVER TO THE JULY 11, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MEETING 8. Hi ghwood Pl an. �,.�� a� ��`"�'�'"`�' COMMITTEE RECOMMENDED APPROVAL OF THE PLAN AS AMENDED, 3-0 9. Budget Goals and Policies. THIS ITEM WAS LAID OVER TO THE JULY 11, 1990, HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MEETING . Resolution 90-1010 -- Additional C.D. Funding for Single Family Rehab Program. COMMITTEE RECOMMENDED APPROVAL, 3-0 chr �-y� _,o�o Analyst: AICHINGER Date: June 5,1990 BUDGET OFFICE ANALYSIS OF BUDGET AMENDMENTS Department: PED Green Sheet Number: 4772 Amount of Request: $765,000 Positions Requested: 0 Amount Recommended:$765,000 Positions Recommended 0 Funding Source: Community Development Block Grant Contingency Subject of Request: Provide additional financing for single family rehab loan fund BaCkgrOUnd: Program balances as of June 30, 1989 appeared sufficient to cover loan activity for 1990. Loan activity has increased significantly and letters of commitment now exceed budgeted resources. MajOr ISSUes: Commitment to loans without sufficient financing is clearly problematic. However,as the attached memo indicates,a variety of factors appear to have led to the shortage(see attached memo dated June 4, 1990). Mary Tingerthal indicates that procedures have been established to assure closer monitoring of loan commitments in light of available budget. Fiscal Impact: (Current Year and Foliowing Year) The reduction in CDBG contingency will limit flexibility in 1991. Recommendation: Approve. Follow—up Recommended, If Any: Require closer monitoring of loan activity. ewan eon/Iot9004-90.all/an alysis/b�-90 - • '.. � • � ... � �p- /p/ � _ , . , . . :O` CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANOUM RECEIVED DATE: June 4, 1990 �UN 4 1990 T0: Tammy Aichinger BUDGFI- OF��E FROM: Mary Tingerth 1 ` SUBJECT: SINGLE FAMILY REHAB BUDGET RESOLUTION The following responds to your questions about our request for fund transfers for the Single Family Rehab programs. Back�ound Facts - Balance in single family rehab fund as of June 30, 1989 � $2,400,000 - PED request fo.r 1990 CDBG allocation = $575,000 - CIB Committee recommended 1990 funding level = $230,000 - CDBG-funded loans closed between July 1, 1989 and December 31, 1989 = $1,100,000 - CDBG-funded loans closed/approved between January l, 1990 and April 30, 1990 = $1,300,000 (tttis compares to $260,000 in loans closed during the first four months of 1990) What Hanpened? - I attribute the dramatic increase in loan volume during the past ten months to several factors: - NHS Contracts: In mid-1989, we entered into contracts with the Neighborhood Housing Services (NHS) to directly originate CDBG-funded loans. They had previously referred clients to the PED rehab office. These contracts allowed for $550,000 in loans to be originated without PED staff effectively expanding our capacity to process loans. - Section 312 Program: Congress failed to fund this program in 1989. This program had been used previously to fund loans for our Urban Homestead program. By the time the decision was made not to fund the program, PED had already purchased the Urban Homestead homes and had no choice but to go forward. This resulted in approximately $400,000 in unanticipated CDBG expenditures. , - -. . . � @r �o -i��a Page Two - - URAP Activitv: The URAP pro�ects, first funded in 1988, were well underway by the summer of 1989 and began to generate significant numbers of applications for CDBG-funded loans. ($400,000 in loans funded since July 1, 1989) - MHFA Discount Purchase Pro�ram: We use CDBG funds to write-down the interest rate on home improvement loans which we sell to MHFA. At the end of 1989, we reached an agreement with NI�iFA which allowed us to dramatically streamline the processing of these loans. In all of 1989, we processed seven MHFA loans. � In 1990, we have closed 20 MHFA loans and have 26 more in process. - Resolution of Personnel Issues: During much of 1988 and the first half of 1989, two rehab advisors were unavailable for work due to a serious personnel issue. This effectively reduced our processing capability by one-third. These issues were resolved in the summer of 1989. Current Status In mid-April 1990, realizing the dramatic increase in loan volume, we assessed the status of our loans in process in all programs. Loans for which commitment letters had been issued totaled $963,129. In addition, a $34,675 contract balance remained with the NHSs. Thus, we faced $997,804 in commitments for CDBG dollars. These commitments were matched by only $214,952 in available CDBG funds (CD Year XVI funds of $230,000 less $15,048 over commitment of CD Year XV funds) . We immediately devised a funding strategy to allow funding of the commitments and continuation of the I�iFA discount purchase program and the Urban Homestead program for the balance of 1990. We also ceased action on 39 loan applications for CDBG programs that had been taken, and ceased taking new applications for these programs. The funding strategy is as follows: Balance of CDBG (Year XVI) $ 214,952 GO Bond Proceeds* 158,834 Proceeds for Loan Sale** 215.000 $ 588,786 Requested Transfer from CDBG Contingency 500,000 Requested Transfer from Homestead Assistance ' Fund*** (Year XVI) 265.000 $1,353,786 Apply for Section 312 Funds**** 350.000 $1,703,786 *This is the amount currently budgeted for loans from a fund which houses proceeds of a G.O. Bond issue for rehabilitation issued in the late 1970s. This fund is within the HRA budget. . . ; .' ' , � � �� D Page Three - **These funds came back into the G.O. Bond fund in March, 1990, after a sale of some existing rehab loans to Neighborhood Housing Services of America. ***This fund has CD Year XIV and XV balances of $483,000, which should be sufficient to carry the program through to June of 1991, when CD Year XVII funds are available. ****Congress did fund the Section 312 program for 1990, and we expect to receive $350,000 within the next two weeks. These funds will be used as follows: Current Commitments $ 997,804 Continue MHFA Discount Purchase Program (80 Loans) 154,320 Continue Urban Homestead Prog�am (10 Loans) 550.000 $1,702,124 I hope this helps to clarify our request. I realize that this all gets a bit confusing, so please give me a call if you would like to discuss it further. We should also plan to discuss the rental rehab program some time in the near future. We have also ceased taking applications for this program because we have applications for use of the remaining fund balance. MT/bkd cc: Tom Meyer Bob Hammer Curt Miller - . . . . C'�. ya � �a�° � �-^ . . ' r ''.,, ,�� l CiTY Of SI�11NT PAUL INTERDEPARTMENTAL MEMORANOUM May 1, 1990 � To: C.I.B. Committee From: Mary Tingerthal Deputy Director for Housing Re: Additional C.D. Funds for Single Family Rehabilitation The Department .of Planning and Economic Development requests an additional $765, 000 to fund the Single Family Rehabilitation Program. These funds would come from a transfer of $500, 000 from unspecified contingencies and $265,000 from the Homestead Assis- tance Program. Last year, during the Capital Budgeting Process, our request was drastically reduced to $230,000. The reduction was the result of a fund balance of more than $2 million. The Committee indicated that if our projections were correct and we needed additional funds, the 'Committee would entertain a new re- quest. - More than $2 million would be required to complete our 1990 Work Plan. Realizing this amount could not be found, staff adopted the following priorities: 1. Fund Cases in Workload $ 963, 129 2 . Honor Contract Obligations to NHS 34,675 3 . Fund MHFA Purchase Discount 154,320 4 . Fund Urban Homestead 200,000 $1, 352, 124 _. _ It is our plan to fund the above priorities in the following man- �- :''"� ner: 1. C.D. and G.O. Bond Balances $ 373,786 (includes C.D. Yr XVI $230,000) 2 . Homestead Assistance Program 265,000 3 . Proceeds from Loan Sale 215,000 �. Request C.I.B. Committee to move 500,000 from Contingency $1,353,786 . : . . , . . �-y� ,,o!a . . - C.I.B. Committee May 1, 1990 page 2 Additionally, staff will be utilizing the Federal Section 312 Rehabilitation Program and other Minnesota Housing Finance Agency Programs. The Rental Rehabilitation Loan Program is not a viable resource to fund Single Family as we are fully committed on all its funds. Staff is only able to accept applications for the H.U.D. Rental Program and M.H.F.A. Multi-Family Program. 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