89-596 WHITE - CITV CLERK f
PINK - FINANCE COIIIICII `�/h/�
CANARY - DEPARTMENT GITY OF� AINT PAUL ` %�J
BLUE - MAVOR File NO• �v ' �
Co nci esolution i����
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Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, in 1974 the City o M nneapolis was granted authority
to sell city general obliga io bonds to support a
rehabilitation loan program• a d
WHEREAS, the program was de ig ed to not exceed authority of
$10 million; and
WHEREAS, the general obliga io bond backup assists homeowners '
who do not have sufficient re it which is required by bond
purchasers of tax-exempt mo tg �e programs to purchase homes;
and '
WHEREAS, neighborhoods with'n he City of Saint Paul that are
. deteriorating due to absent e andlords and vacant buildin�s
require innovative approach ''s n order to stabilize the
nei�hborhood; and
WHEREAS, S . F. 1079 includes th City of Saint Paul in the
substantial rehabilitation ro ram; and
WHEREAS , S. F. 1079 provides fl xible underwriting,
rehabilitation and new cons ru tion financing;
THEREFORE, BE IT RESOLVED, ha the City of Saint Paul
supports S.F. 1079 which wi 1 ssist low-income homebuyers in
purchasing and maintaining ro erty that will contribute to
the overall stability of th c mmunity.
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
�� In Favor
Goswitz
Rettman
�he1�� � _ Against BY
Sonnen
Wilson
/�p —�j �� Form ppro ed b City Attorney
Adopted by Council: Date ~r � ,
. �
Certified Yass b ouncil S tar BY �
By -
Approve by avor: Date PR - � �98 Approved by May r fo u ission to Council
By
��
Pt1�LtS1iED AP R �, 5 19 9
' � � BRIEFING PAPER: S B TANTIAL REHABILITATION ���-,���
Bacl��round
In 1974 , legislation passed h ch granted Minneapolis the
abilitv to sell. city general o ligation bonds in order to
support a rehabilitation pr gr m. The program was designed to
not e�ceed $10 million, for th sole purpuse of rehabilitating
homes throughout Minneapoli . The general obligation bond
backup is important in case w ere homeowners do not have
stifficient credit that is r qu red bv bond purchasers of
tax-ehempt mortgage program . OLher credit enhancements , lil�e
Letters of Credit or FH�, in ur nce , would complicate the .
underwriting process and wo ld eliminate many of the
homebuvers from qualifving or these low-interest mortgages in
order to rehabilitate and f ' na ce their homes .
S. F. 1089 , broadens the bas ' c se of the funds beyond
rehabilitation to include m de ni�zin� and putting on home
additions . One of the big ro lems in Minneapolis and
Saint Paul is that manv peo le cannot find affordable
financin� to not only rehab li ate their homes , but also to do
a home addition.
The program also allocas for ne * construction of homes on land
owned by the citv or the Ho si g and Redevelopment Authoritv.
The basic purpose of this �� ov' sion is to utilize vacant land
and help improve neighborho d tabilitv through the
construction of of ne� ocane -o •cupied single-family homes .
The overall pro�ram 7_evel i cr ased from �10 million to S25
million. The Uasic purpose is to enable a larger program to
be completed .
This financin� pro�'ram �.°ill r sult in increasin' the
percenta�e of oti-ner-occupie esidences within a specific
neighborhood. Manv people r r•easonablv good risks toward
purchasing a home , but- canti t compl�r with many of the
requirements provideci b` ot e mort�age programs . The abiliti
to provide flexible utiderwr' t � n�, rehabilitation and new
consl:.ruction financin� will h ve a ma.lor impact un the
viabilii:y of riinneapolis an aint Paul neighborhoods.
T'he Saint Paul Position
Saint Patil suPport supports S . F. 10 �9 , which will provide
flexible underwrii;in� , reYia i itation and new construction
financin, for homes i.n S��.i►� aul nei�'hborhoods .
� ��`1 '���
:
WHEREAS , in 1979 the City o M nneapolis caas �ranted authoritv
to sell cit� general obliga io bonds to support a
rehabilitation loan pro�ram; a d
WHEREAS , the program was de ig ed to not e�ceed authority of
S10 million; and
WHEREAS , the �eneral obliga io bond backup assists homeowners
who do not have sufficient r it which is required by bond
purchasers of ta:�-exempt mo t age programs to purchase homes ;
and
WHEREAS , neighborhoods with' n the Citti of Saint Paul that are
deteriorating due to absent e landlords and �-acant buildin�s
require innovative approac s in order to stabilize the
neighbortiood; and
tv'HEREAS , S. F'. 1079 inciude t e Citv of Saint Paul in the
substantial rehabilitation pr gram; and
WHER�AS , S . F. 10r9 provide f e�ible tinderwritiii� ,
rehabilitation and ne�.� con tr ction financina ;
THEREFOF,E, BF' IT RESOLVED, t t the City of Saint Paul
� supports S. F. i019 which w 1 assist 1oc.--income homebu�-ers in
purchasin� and maintaining p opertv that will contribute to
the overall stabilitv of t e communitv.
. ��-��
� Members:
�
James Scheibei, Chair
-�� "' '� _ CITY OF ~ INT �AUL Committee-of-the-whole
, . , :
,I._-si;*":i�j!sj.,
- OFFICE OF '1 H CITY COIINCIL
Dat2: arch 27, 1989
JAMES SCHEIBEL
Council President RECEIVED
Co ittee Report
� �IAR 2 81989
CITY CLERK
To: St. Paul City Council
From: City Council Legisla io Committee ` �
�
1. Approval of Minutes - March 13 1 89
MINUTES WERE APPROVED
2`: SubstantiaZ�Rehabiiita�fon
CO?�i'IT'Y`�E' R�►CO'i�S�TtDED l��ROVAL
3. Legislative Update
NO COMMITTEE ACTION REQUIRED
4. (additional item not on typed 'age da previously distributed)
Truth-in-Taxation
COMMITTEE RECOMMENDED APPROV
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CITY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-5679
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