89-734 WHITE — C�TV CLERK COUflCII
PINK — FINANCE GITY OF S INT PALTL
CfcNARV — DEPARTMENT File NO. ��_ ��
BLUE —�'MAVOR —
Co nci esolution 35
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Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS , homeownership is r c gnized to be a factor in
maintaining community stabi i y and property values,
particularly in very low in o e neighborhoods , and
WHEREAS, very low income f i ies are most in need of
assistance in order to own h ir own homes ; and
WHEREAS , Representative Daw i s has introduced H. F. 140 which
contains the following elem n s:
* creates a demonstra i n program through which cities
and non-profit orga i ations can apply for state funds
to operate a progra o provide homeownership
opportunities for v r low income households
* allows the City or h non-profit to purchase houses ,
rehabilitate them a d sell them to low income
households on contr e s for deed, making it possible
to maintain very lo onthly payments
* provides for a very d tailed process for neighborhood
participation in wo k' ng with these households to
assist them in bein uccessful homeowners
WHEREAS , this bill has been a proved by the Housing Division
of the House Committee on F' n ncial Institutions and Housing;
and
COUNCIL MEMBERS Requested by Department oE:
Yeas Nays
Dimond
Lo�g In Favor
Gosw;tz
Rettman B
sc6e;be� __ Against Y
Sonnen
Wilson
Form Approved by City Attorney
Adopted by Council: Date ,/�,� �
Certified Passed by Council Secretary By�u'�`�'" �' ~��'��:�'�K.-eC-. �—�7�1
By�
Approved by iVlavor: Date Approve y May f ission to Council
�-�,g,,��.--�
By
WMITE - CITY CLERK
PINK - FINANCE COUflCll G�
QANARV - DEPARTMENT C I TY O A I NT PAIT L __-__- /� 7 J���`
BLUE � MAVOR File NO.
..jL�L
Counci esolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS , H. F. 140 places a 50 000 limit on the total for
acquisition and rehabilitat on which staff believes will
severely restrict the numbe o properties which will fit the
program;
BE IT RESOLVED that the Cit o Saint Paul supports H. F. 140 ,
which encourages homeowners ip for low income households .
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
Long [n Favor
Goswitz
Rettman ,(�
�be;�� Against BY
Sonnen
Wilson .D p y�
A1"R 2 7 It�9 Form Approved by City Attorney
Adopted by Council: Date
Certified Pas- b ouncil ret BY `��°� �' ����` �T � -��
g�.
APR 2 Approved b Mayor Sub sion to Council
�pproved Mav a ` n \
gy �-- BY
v�-�t�-
PUBIISN�A M AY � U � $
DEPARiIiAENT/OFFlCFJCOUNqL DATE INITIA ��`���
Ma or� s Of f ice 4 14 s GREEN SHEET No. 1�3 6 �
OONTACT PER80N&PHONE DEPARTMENT'DIRECTOR �qTY OOUNqL
S eve Proe ch 1 2 8-4 32 3 ��F ciTM ATro�N�' �anr c�RK
MU8T BE ON COUNqI AOENDA BY(D/1TE) ROUTNiG BUDQET DIRECTOR �FIN.3 MOT.SEHVICES DIR.
a s ap °� MAYOR(Oli ASSISTMIT) �
TOTAL#�OF SIGNATURE PAGIE8 2 (CLIP ALL OC IONS FOR 81(�IATUR�
ACTION REGUEBTED:
Sign council resolution.
City support of H.F. 140 , which en o rages homeownership for low-income
households.
RECOMMENDATIONB:/Ipprove(l�a Rejeat(F'� COUNCIL REPORT OPTIONAL
_PLANNINQ COMMISSION _CIVIL SERVICE COMMISSION ANALYBT PHOPIE NO.
_pe coMMirree � Counc i 1 Lea.
—sTn� _ Com. COMMEM'8:
-°'�"���RT - APR 1 � �°89 APR 17 1989
SUPPORTS WHICH OOUNqL OBJECTIVE9
INITIATIN(i PROBLEM,ISSUE.OPPORTUNITY(Who�Whet�Whsn�Whero�Why): r �1�i � �,/ t, � : �V
:'1 A
Housing for low-income persons.
ADVANTA(iE8 IF APPROVED:
Creates a demonstration program th ou h which cities and non-profit
organizations can apply for state un s to provide home ownership.
Allows the City or the non-profit o urchase houses, rehabilitate them
and sell them to low-income househ ld .
Provides for a very detailed proce s or neighborhood participation.
DI8ADVANTA(iE3 IF APPROVED:
DISADVANTAOES IF NOT APPROVED:
�C�;�s^r,1 �f�tC�,-,f?'.;l�il li�nl,P.r
r°��� � V 1:i�iJ
� � 1�,6"i��
TOTAL AMOUNT OF TRANSACTION s C�T/REVENUE BUDQETED(CIRCLE ON� YES NO
FUNOING SOURCE ACTIVITIf NUMBER
Flnuwa�u�Nr-oAtiu►now:�exPwrq
. . ��-7.��
BRIEFING P�PER: . IN ESOTA RURAL AND URBAN
HOMEST D NG PROGRAM
BACkGROUND
H . F. 140 creates a demonstra i n program through which cities
and non-profit organizations c n applv for state funds to
operate a pro�ram to provide h meownership opportunities for
verv low income households . T e program would allow the citv
or the non-profit to purchas ouses , rehabilitate them and
sell them to low income hous h lds on contracts for deed. Bv
using a contract for deed, i ill be possible to keep the
monthlv payments for the hou e old at a verv low level . The
bill also provides for a ver etailed process for
neighborhood participation i orking with these households to
assist them in being success u homeowners .
STATUS
The bill has been introduced b Representative Dawkins as
H. F. 140 and has been approv d v the Housing Subcommittee of
the Financial Institutions a d ousing Committee . There is
currentlY no companion bill n he Senate .
SAINT PAUL ' S POSITION
The City of Saint Paul suppo ts H. F. 1�0 , and amendments to
increase the $50 , 000 limits or acquisition and
rehabilitation.
. C�_�`��
Members:
James Scheibel, Chair
��������q CITY OF AIN'1` PAUL Committee-af-ihe-whole
���� ��
OFFICF. OF CITY COIINCIL
JAMES SCHEIBEL D3t : April 10, 1989 RfCEIVED
Council President
Co ittee Report APR 121989
ClTY CLERE�
To: St. Paul City Council
,
From: City Council Legisl ti n Committee
_
1. Approval of Minutes March 27 1 89
COMMITTEE RECOMME�TDED APPROVAL
2. Legislative Update
NO COMMITTEE ACTION REQUIRED
3. H.F. 140 - Authorizing non-pro it neighborhood corporations to buy,
rehab, and sell housing to mem er of the community.
(Rental to Homeownership Conve si n Program)
COMMITTEE RECOMME:�]DED APPROV , ITH AMENDMENT
to allow additional non-state so rces of money above
$50,000 where needed to meet he eeds of the program.
(Minnesota Rural and Urban Hom st ding Program)
COMMITTEE RECOI�R�E:tDED APPROV
C1TY HALL SEVBNTH FLOOR SA T PAUL, MINNESOTA 55102 612/298-5679
� 48
� ~ BRIEFING PAPER: MI NE OTA RURAL AND URBAN J '- � �
, C�� � �` �
HOMESTEA I PROGRAM !
BACkGROUND
H. F. 140 creates a demonstrat on program through which cities
and non-profit organizations an apply for state funds to
operate a program to provide om ownership opportunities for
very low income households . he program would allow the city �
or the non-profit to purchase ho ses , rehabilitate them and �
sell them to low income hotise ol s on contracts for deed. By �
using a contract for deed, it wi 1 be possible to keep the �
monthlv pavments for the hous ho d at a ver,y low level . The
bill also provides for a very de ailed process for �
neighborhood participation in wo king with these households to '
assist them in being successf 1 omeowners .
STATliS
The bill has been introduced y epresentative Dawkins as
H. F. 140 and has been approve b the Housing Subcommittee of
the Financial Institutions an H using Committee. There is
curre:�tly no companion bill i t e Senate .
SAINT PAUL'S POSITION
The City of Saint Paul supports . F. 140 , and amendments to
increase the $50 , 000 limits for cquisition and
rehabilitation.
\
��-7��
WHEREAS , homeownership is re og ized to be a factor in
maintaining community stabil ' t,y and property values ; and
WHEREAS, the House of Represe t tives. has introduced an
amendment to the omnibus housin bill that would:
* allow cities to apply t the MHFA for grant funds
which can be used to s ablish a homeownership
conversion
* provides broad flexib 1 ' ty to use funds for
acquisition and rehab 1 ' tation, as well as for
training programs for h meownership and emer�ency
assistance
t * allows the City to co t ct with non-profit
organizations to perf r some or all of the
administration of the pr gram
* allows the expenditur o up to $60 , 000 in siate grant
funds on any one unit o which a minimum of $45 , 000
must be recaptured up n ale of the propertv
WHEREAS , this amendment was s cc ssfully attached to the
omnibus housing bill (H.F. 53 ) n the House Committee on
Financial Institutions and Ho si g recently; and
WHEREAS , this language does n t et appear on the Senate
version of the omnibus housin b 11 ( S . F. 522 ) ;
BE IT RESOLVED that the Cit� f aint Paul supports the rental
to homeownership conversion p g am.
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