The URL can be used to link to this page

89-184 WHITE - CiTV CLERK �,�'°"� COUIICII PINK - FINANCE ' ` GITY OF SAINT PAUL CANARV - DEPARTMENT � � BLUE - MAVOR �� '�� / File NO. � � � � Council Res i Presented By �" -� - - � � Referred To Committee: Da e Out o e By Dat WHEREAS , the i' terest reduction program was created to enhance the developmen of housing units which are intended primarily for low or mod rate income families ; and WHEREAS , the City of Saint Paul has used the interest reduction prog am effectively over the last few years ; and WHEREAS , feder 1 tax reform has eliminated nearly all the incentives for development of these types of housing units ; THEREFORE, BE T RESOLVED, that the City of Saint Paul supports legis ation which would enhance the interest reduction prog am in the following ways : - permit the HRA, at its discretion, to enter into recapture agreements. - permit int rest reduction programs to be used for industrial and commercial developments . - extend the 12-year limit on the use of tax increments for the intere t reduction program. - permit tax increments to be used for the interest reduction rogram. - permit the use of interest reduction programs for single-fam' ly developments . COUNCIL MEMBERS Requested by Department of: Yeas Nays �- Dimond � � In Favor coswitt Rettman (� B scheibe� ,� _ A ga i n s t Y -�—&eww� Wilson �� _ � �n0� `� Form Approved by City Attorney Adopted by Council: Dat Certified Pas•e b ouncil Se ry By t�� -'�' ��z�-�� gl, Approved y avor: Date � �� — � 19�� Appro d by Mayor for Submi 'on o Counqil By BY PuBU� r=�: z l ��a� �' . '' � I32ITPING _l?�1PEP;-.-_THE 1tiTEREST_F�EI)tiC7'IOti 1?]�.OGRA^i , --+------- - - — — - - - � �1� �' � � 13ACI�GROUND VI The Housin_ and Pehabilitation AcL, Tiinnesota Statutes 469 . 012 , S�bd . 7 , allo��s housing and redevelopment at�tliorities Lo develop and administer an interest reduction program, to. assisL tilie financin� of coristri.iction, rehabilitatiori and purchase of }iousin;� unii;s . I'Iiesc housing uriits must be intended �> •imaril� for occupanc�� bv indi_viduals of low or rnoder.atc: i. come and relai.ed and supported faciliti.es . STATUS The curren statui;e limits the use of ta:� increment to finance the cost o an interest reduction program in the following ways : tax' increments ma,y not be collected for more than 12 years afte� the date the first payment was made; tax incre►nent-s rnay not be used if the proceeds of the bonds have or will be used to assist the project ; and finallv, ta�: increments may not be used to finance an interest reduction program fo owner-occupied, single-family dwellings. ' SAINT FAUL POSITION , The City o Saint Paul supports legislation that would accomplish the following: - Permit the HR�, at its discretion, to enter into recapture agreem�nts when the property is sold or transferred. - Permit interest reduction programs to be used for indust�ial and commercial developments. - Extend the 12-year limit on the use of ta�: increments for intere t reduction programs. - Permit tax increments to be used for interest rate reduct on programs, as well as public improvements . - Permit the use of the interest rate program for single family developments. • , , - , � WHEREAS , t e interest reduction program was created to enhance the develo ment of housing units which are intended primarily for low or', moderate income families; and I WHEREAS, t e Citv of Saint Paul has used the interest reduction rogram effectively over the last few years ; and _ WHEREAS, f deral tax reform has eliminated nearlv all the incentives for development of these types of housing units; THEREFORE, BE IT RESOLVED, that the City of Saint Paul supports 1 gislation which would enhance the interest reduction rogram in the following ways: - permit the HRA, at its discretion, to enter into recapture agreem nts. - permit interest reduction programs to be used for indust ial and commercial developments. - extend the 12-year limit on the use of tax increments for the in erest reduction program. - permit� tax increments to be used for the interest reduct' on program. - permit the use of interest reduction programs for single family developments. ; � . � g�'/ COMMITTEE REPORT - City Council Legislation Committee Page Two January 23, 1989 Recommen ations of the Governor's Commission on Affordable Housing COMMITTE RECOMMENDED APPROVAL Interest Red�ction Program COl�lITT� $,��GOMMENDED APPROV�L Mortgage Regis ry an ax COMMITTE RECOMMENDED APPROVAL Fiscal D sparities COMMITTE RECOMMENDED APPROVAL Category: nvironment and Qualit of Life Regional Park Operation and Maintenance Funding COMMITTE RECOMMENDED APPROVAL Regional Park Capital Improvement Funding COMMITTE RECOMMENDED APPROVAL CSO Fund'ng COMMITTE RECOrIlKENDED APPROVAL Solid Wa te COMMITTE RECOMMENDED APPROVAL Water Ra es COMMITTE RECOMMENDED APPROVAL Category: T ans ortation Airport and-Banking COMMITTE RECOMMENDED APPROVAL, AS AMENDED Transpor ation, Transit and Light Rail Transit Funding COMMITTE RECOMMENDED APPROVAL, AS AMENDED (4-1 vote) Category: M scellaneous Saint Pa 1 School Board COMMITTE RECOMMENDED APPROVAL Comparab e Worth COMMITTE RECOMMENDED APPROVAL Fingerpr'nting of Firefighters COMMITTE RECOMMENDED APPROVAL THE FOLLOWING MAI�TERS LISTED FOR CONSIDERATION AT THE MEETING WERE LAID OVER AND WILL BE DISCI�SSED AT THE FEBRUARY 6, 1989, MEETING OF THE COMMITTEE: