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99-330Council Fi1e # l� � 3 � ORIGINAL Presented By Referred To Committee: Date 1 APPROVIlVG A SINGLE FAMII,Y HOUSING PROGRAM TO BE FINANCED 2 BY Tf� ISSUANCE OF SINGLE FANIII,Y MORTGAGE REVENLTE BONDS 3 AND MORTGAGE CREDTT CERTIF'ICATES 4 5 6 WHEREAS, pursuazrt to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 7 462C (the °Housing Act"), the City of Saint Paul, Minnesota (the "City") is authorized to adopt a 8 housing plan and cazry out programs for the financing of single family housing for persons of low and 9 moderate income; and 10 11 WHEREAS, the NTivneapolis/Saint Paul Housing Finance Board (the "Board"), a joint powers 12 boazd organized under a Joint Powers 9greement (the "Joint Powers Agreement") by and between the 13 Mivneapolis Community Development Agency (the "Agency"), the Housing and Redevelopment 14 Authoriry ofthe City of Saint Paul, Mivnesota (the "Authority") and the City ofMinneapolis, Minuesota 15 ("Mxmeapolis") and accepted by the City, and under the laws of the State of Mimiesota, proposes to 16 undertake a single fasnily housing program relating to the NTitmeapolis and the Saint Paui entitiement 17 allocations available in 1999 and certain recycling refunding bonds (the "Program"), to be financed by 18 the issuance of one or more series of mortgage revenue obligations, mortgage revenue refixnding 19 obligations and/or mortgage credit certificates ("MCCs") pursuant to Minnesota Statutes, Sections 20 469 001 to 464.047, Chapters 462A, 462C and 474A and Section 471.59 {collectively, the "Act"}; and 21 22 WHEREAS, pursuant to the Act, the Board is authorized to issue bonds from time to time and 23 to use the proceeds of its bonds to make or purchase mortgage loans or to purchase participations in 24 mortgage loans from lending institutions and to issue MCCs in order to finance the construction and 25 rehabilitation, and to facilitate the purchase and sale, of single family housing for eligible persons or 2 6 fasnilies under the Act and to issue bonds to refund previously issued bonds; and 27 2 8 WHEREAS, the Program wiil provide below market interest rate mortgage loan financing or 2 9 income tas credits piimarily to persons of low or moderate income purchasing single family homes to 3 0 be used as their principal piaces of residence and which are located witt�in the geograpluc limits of the 31 City or Mirmeapolis; and 32 33 WHEREAS, the Act requires adoption of the Program after a public hearing held thereon 3 4 following publication of notice in a newspaper of general circulation in the City and Minneapolis at least 3 5 fifteen days in advance of the hearing; and RESOLUTION CITY OF SAINT PAUL, MINNESOTA Resolution Green Sheet # 2��68 # 36 $eN[ Paui Yro�vn RcsoluGm 1684914.01 1 a9-33d 2 WFIEREAS, the City Councfl has on the date hereof conducted a public hearin� on the Program, 3 after publication of notice as required by the Act; and 4 5 WHEREAS, the Program was submitted to the Metropolitau Council at or before the time of 6 publication of notice ofthe public hearing on such Program, and the Metropolitau Council was afforded 7 an oppomwity to present comments at the public hearing, all as required by the Act; and 8 9 WHEREAS, the Progra.m provides for the issuance of single family mortgage revenue bonds or 10 revenue refunding bonds in one or more series pursuant to the Act (the "Bonds") to make or purchase or 11 cause to be made or purc]�ased mortgage loans, or to purchase securities the proceeds ofwhich would be 12 used to purchase mortgage loans, and the issuance of MCCs to finance the acquisition, piimarily by low 13 and moderate income persons and families, of single family housing located within the geograplric 14 boundaries of the City or Minneapolis; and 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 WI�,REAS, it is proposed that the Program be approved and the Board be authorized to issue Bonds and MCCs pursuant to the Program and the Joint Powers Agreement; and WFIEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the Boazd or the Authority are in the best interests of the City. NOW, TI�REFORE, BE IT RESOLVED BY TF� CITY COUNCIL OF 'Tf� CITY OF SAIlVT PAUL AS FOLLOWS: The Program is hereby approved in its entirety in substantially the form on file with the City. The officers of the City and the Boazd aze authorized to take all actions as may be necessary or appropriate to carry out the Program in accordance with the Act and any other applicable laws and regulations. 2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby approved subject to agreement by the Board or the Authority and the purchasers of the Bonds, if any, and by the Board or the Authority as issuer of the MCCs, as to the e�ct terms of the Program and the financing therefore and the MCCs. 3. The Bonds may be issued in one or more series at the time or times and pursuant to terms detemuned by the Boazd, and be structuzed so as to take advantage of whaxever means are available and aze permitted by law to enhance the security for, or mazketability of, the Bonds, provided 168491401 q9-33o 1 that any such financing struchxre must be approved by the Boazd. The MCCs may be issued at the time 2 or times and pursuant to terms deternvned by the Boazd All such detennivations by the Board must 3 comply with the applicable provisions of the Act and the Internai Revenue Code of 1986, as amended, 4 and regulations promulgated thereunder. 5 4. The Boazd is authorized to take all actions wirich may be necessary or desirable in 6 connection with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no further 7 approval or consent of the City shall be required prior to the issuance of the Bonds or the MCCs by the 8 Board, or prior to the taking of any action by the Board to undertake and implement the Program. 9 5. Nothing in this Resolution or the documents prepazed pursuant hereto shall authorize the 10 e�cpenditure of any municipal fixnds on the Pro�am other tt�an as specified and authorized by separate 11 12 13 14 15 16 17 18 19 20 21 22 23 actions of the City and other than the revenues derived from the Program or otherwise granted to the City for tlris purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any properiy or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bonds sha11 never have the right to compel any �ercise of the ta�ng power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enfarce payment against any property of the City. The Bonds shall recite in substance that the principal and interest thereon, are payable solely from the revenues and proceeds pledged to the paymem thereof. The Bonds shall not constitute a debt of the City withiu the meaning of any constitutional or statutory limitation of indebtedness. 6. Any one or more series ofthe Bonds or the MCCs xnay be issued by the Authority in lieu of issuance by the Board, at the discretion of the Authority. 1684914 O1 oR�G�NA� q9 _ 330 Requested by Department o£: Plannina & Economic Develotment Adoption Certified by Council Secretary BY: a � (� Foxm Approved by City Attorney By: �_l I =� ,p�..� � c P �� Approved by Mayor: Date •� Z� ( rl� gy: - BY �� /��// Approved by Mayor for Submission to Council Hy Adopted by Council: Date �1�� CEICOUNGIL TACTPERSONB ONE /� tN✓ 54�t- Gr —(2 �t/(v MUST BE ON CAUNCIL AGENDA BY (DATE) f� �;//� fy� �/r ' TOTAL # OF SIGNATURE PAGES � s, ��v�� r �� y �;6 c /rt��v:h.t�; . _ PIANNING COMMISSION _ i _ CIB COMMITTEE _ . _ STAFF _ . _DISTRICTCWRT _. SUPPORTS WHICH COUNpL O&IECTIVE? N°_ 52068 y qq - �30 3/zQI Ry I GREEN SH � DEPARTMENT DIRECTOR � cinanoaNent(� FOH ❑BUDGETDIRECTOR _ � MAVOR (OR AS$ISTANTJr (CLIP ALL LOCATIONS FOR SIGNATURE) 1 v ri-o-,. T� 4��Uv r�� /YrT /6j�jt; e /� �id 9Yksvt. . �'� /� e�.S^ 7i3 ,�c a. .� /�t+e G�:- i� I:c�� c.�- ,T�'« , DIR. PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: 1. Has this person/firm ever worketl under a contract for this department> VES NO 2. Has this personttirm ever been a city emD�oyee� YES NO 3. Does this personlfirm possess a skill not normally possessetl by any current ciry employee� YES NO Esplain ail yea answers on seperate sheet and attach to grean sheet INITIATING PROBLEM, ISSUE. OPPO UNITY (WM1O. W al. W�en. Where. Whi): � � /,A �� /� C _ ti/ �' �/ �i � O� at�saa.� �u.O /'PC� e�i ,�.�-� a� � �;�r�h r d✓�eG� i�-+� .d 05��. 4 �/'Dr.,.t T7�/ ��G �l iSSu �"''t'�C.�� 'a� /��av.s P1� � cY4�i; ��°�s s� ,, a.s � / �� - k C��s s� ) Y_Y / � . l e ti fiavt �' �""J '� .. J�.�N �°`^O�f � /�� "' 9 �d� F+r�er� �! � i � / ✓bF /�o �s�° % �ro � � �a .d -e- a c�� v �o�-Ls ��.. �� l� � � � f� �� w� ��VANTAG iFAPPROVED: � � �/� /� l ju, f�_ d �°�^'�I,f1 C�ct O�- !!� �6 �/d r/(a�<2 ,/�`" � t �t�+�.� � .�t,,� � d"��'��r �rc+rt � �+�'►-� st-�v" `� �..e�' rL �'F-a..�._� .� ��..r_.amt� .�`' � 7� � � . 7� �ovy r �ry ��'r3a r �°`� � l�-v-e� i �lc�-c- �j��r a�o�S ��/" � �!a?.vu� � �� `� / .�?,$' � r ��/'v�da+G O Pi`�C //�' � � �",sq ADVA IFAPPqOVED: ,� � �"`�, � ,o��°� .�'ea's�'' �� 6 �-' ��5 �� '� �� M �'�� f �` � .�✓ < ., p s� �" > �� : 4 � ; � ' q j�. ES�°2. ) ° � q °�- 1l ' _�... :��°�r�` 1 ��c.. s � � ��, � u & ,{ � TOTALAMOUNTOFTRANSACTION $ FUNDIWG SOURCE FINANCIALINFOPAnATION (EXPLAIN) m �� a�� c s V�3:i,.�] ��"..'��Pi"s2 L'A�� } � � �_ : �"�� COST/REVENUE BUDGETEO (CIRCLE ONE) { YES NO ACTIVITY NUMBER qq•33o Interdepartmental Memorandum CITY OF SAINT PAUL To: Council President Bostrom Council member Benanav Council member Blakey Council member Coleman Council member Aanis Council member Lantry Council member Reiter From: Brian Sweeney�� Allen Carlson� Date: March 29, 1999 Re: Approval of 1994 Minneapolis/Saint Paul Single Family Housing Program To Be Financed by the Issuance of Single Family Mortgage Revenue Bonds and Mortgage Credit Certificates Purpose The purpose of this report is to describe the nature and purpose of Saint Paul's 1999 5ingle Family Housing Program and to recommend its adoption. Background In 1984, the Cities of Minneapolis and Saint Paul and their respective development agencies created the Minneapolis/Saint Paul Housing Finance Board (Joint Board) for the purpose of providing decent, safe, sanitary, and affordable housing to residents of both ciues. Membership of the Joint Boazd is comprised of three council members from each city. Saint Paul's current members are Council members Blakey, Bostrom and Lanhy. Through the Joint Board, the two cities sponsar their single family mortgage programs by issuing both tax exempt mortgage revenue bonds and mortgage credit certificates. Current prograzns financed through the Joint Board include Take Credit! which provides a federal tax credit to persons purchasing their first homes in either Saint Paul or Minneapolis and Phases XI and XII of the bond-fmanced Home Buyer Programs. o�q -330 Program Description The 1999 Single Family Housing Program is included as E�ibit A to the attached Council Resolutlon. Saint Paul will have a total bonding authority of $23,325,000 for the 1999 Program ($7,277,000 of 1998 carryforward authority and $16,048,000 of 1999 bonding authority). The 1999 Prograxn includes a description of the program eligibility requirements dictated by federal and state legisiation and serves as the basis for future use of Saint Paul's and Minneapolis, enritlement allocations of mortgage bond authoriTy. Ongoing Program parameters include a maximum purchase price of 90% of average azea purchase price (which current translates to $112,563 for an eacisting single family home) and a masimum household income of 100% of area median income (currently $63,600). Upon adoption by the Joint Board, the 1999 Program will be filed with the State Department of Revenue as required by Minnesota Statutes, Chapter 462C. The attached resolution does not obligate the City or HRA to expend any funds. In addition, the resolufion specifies that neither the City or HRA will be subject to any liability for bonds or mortgage credit certificates issued to finance the Program. Approval of the Program does not preclude the City or HRA from issuing multifamily revenue bonds. Public Purpose Through its single family mortgage programs, the Joint Board helps Saint Paul families become homeowners. In addition, by providing financing wluch accommodates both the purchase and the rehabilitation of single family homes, the Joint Board helps the City to meet its goal of improving its housing stock. Recommendation Staff recommends approval of the attached resolution giving approval to the issuance by the Minneapolis/Saint Paul Housing Finance Board of single family mortgage revenue bonds and mortgage credit certificates to fmance the City's 1999 Single Family Housing Program. Allen Carlson 266-6616 Sponsor: Chair Bostrom K \SHARED\CARI.SOAP�I.INDBLAD\99hsgplari.wpd 9°1-� Exhibit A NIINNEAPOLISISAINT PAUL 1999 SINGLE FAMII,Y JOINT BOARD PROGRAM The City of NTivneapolis, Mmnesota ("Mnneapolis"), the Mnneapolis Commnn;ty Development Agency (the "Agency"), the City of Saint Paul, Nfinnesota ( Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Nfinnesota (the "Authority"), acting individually or jointly through the Minneapolis/Saint Paui Housing Finance Boazd (the "Joint Boazd") (all together, the ° Issuers") propose to issue mortgage credit certificates ("MCCs") under Section 25 of the Internal Revenue Code of 1986, as amended (together with regulations promulgated thereunder, the "Code"), or new money mortgage revenue bonds and certain mortgage revenue refilnding bonds under Section 143 of the Code in one or more series, in either case to finance the single family housing program described herein (the "Program") pursuant to authority confened by Miunesota Statutes, Chapters 462C, 462A,, 469 and 474A, all as amended, (and any other general or special law authority for the issuance of obligations to fivance a single family housing program or development) (all together, the "Act"). Any action specified herein to be xnade by the "Issuers" may be made by one or more of them acting in concert orindividually. In creating this Program, the Issuers find and detem�ine: § that the preservation of the quality of life in Minneapolis and Saint Paul (the "Cities") is dependent upon maintaining an adequate, decent, safe and sanitary housing stock; § that mainta}ning such housing stock is a public purpose and will benefit the residents of the Cities; § that a need exists wiflvn the Cities to provide additional affordable owner-occupied housing for low and moderate income persons and families; and § that a need exists for mortgage credit to be made a�ailable for both e�sting and new owner- occupied housing, for rehabilitation of existing single family housing and for home improvements. To meet such needs, the Issuers intend to issue one or more series of single family mortgage revenue bonds and single family mortgage revenue refunding bonds ("Bonds") to cause the originarion of mortgage loans to finance the acquisition, construction, rehabilitation or improvement of single family housing in the Cities (or either of them). In addition to or in lieu of issuing Bonds, the Issuers (or any one or more of them) may issue MCCs to mortgagors who obtain mortgage loans to finance the purchase, construction, rehabilitation or improvement of singte family housing in the Cities (or either of them}. The Issuers will issue Bonds, or will elect not to issue bonds in favor of MCCs, in an aggregate principal amount of (a) $37,468,000 for Mivueapolis and $23,325,000 for Saint Paul, representing certain carried forwazd allocation and 1999 entitiement bond allocation of Minneapolis and Saint Paui; (b) an amount up to $18,708,000 to refund the Phase IV Bonds issued in 1987; (c) approximately 168490501 q`1.330 $42,530,000 to recycle refund prepayments and repayments of certain otstanding bonds; (d) up to $13,750,000 to refund certain outstanding Phase II Bonds, and (e) such principat amount of taxable bonds as may be necessary or convenient to fiuther the purposes of this Program. Mortgage loans financed through the issuance of the Bonds and those in connection with wluch the MCCs will be issued, will be subject to the following terms (or, for Bonds as to which these requirements do not apply as a matter of law, to such other terms approved by the Boatd): purchase price - the max;m� p�chase price for financed homes shall not exceed the lesser of (a) 90% (110% in "tazgeted areas" or azeas treated as tazgeted azeas) of the applicable "average azea purchase price" determined by the United States Department of the Treasury or by the Issuers on the basis ofmore complete informauon, or (b) 3 times the applicable income limit for the Program imposed by Minuesota law (except that in certain azeas the purchase price sha11 not �ceed 4 times the applicable income limit to the extent consistent with applicable federal law); income limits - the maximum income of the mortgagors shall be the lower of (a) the income restrictions imposed by federal tax law or (b) the income restrictions imposed by Miunesota Statutes, Section 462C.03, Subd. 2, including the restriction of Subd. 7 that for the first sis months of the Program, 50% of the money available to make mortgage loans or the "non-issued bond amount" of MCCs must be reseroed for persons and families with adjusted incomes not greater than 90% of the general Program income limits. In connection with this Program: (i) (a) in connection with any mortgage loans financed with the proceeds of mortgage revenue bonds, any financial institurions described in Section 462C.03, Subd. 4, and other mortgage lenders with offices located in the Ciries and which aze FHA/VA approved sellers of mortgage loans as well as other financial institutions and mortgage lenders which aze FI�A/VA, or F'NNIAlFHLMC approved sellers of mortgage loans and are reasonably acceptable to any master servicer acting on behalf of the Issuers, will be eligible for consideration for origination of such loans; the Cities will not limit participation in the Program to a single lender unless other lenders aze not willing to participate for the consideration offered; the Agency and the Authority shall be eligible for consideration for origination of loans; (b) in connection with issuance of MCCs, MCCs will not be limited to loans o aQinated by particulaz lenders but will be available with respect to the originarion of qualifying mortgage loans by any participating lender; (n) loans will not be made auailable or set aside for the exclusive use of developers or buiiders except, in the case of mortgage loans financed with the proceeds of mortgage revenue bonds, for new housing described in Section 462C.071, Subd. 2; 1684905 Ol 2 c�q .330 (iri) the Issuers expect to act as, or to contract with, a program administrator and a servicer to provide seivices to ensure tl�at the Program will be consistent with this Program, the Act and applicable federal law; (ro) as indicated above, up to $23,325,000 of carried forwazd allocation and $37,468,000 of the 1999 entitlement allocations of the Cities may be used in the Pro�am, provided, however, that no provision of ttus Program sball in any way prevent either of Minneapolis or Saint Paul from using all or a portion of its respective entitlement allocation(s} for muitifamily housing or any other authorized putpose. In addition, any election made by the Cities to issue MCCs in lieu of Bonds may be revoked in whole or in part, at any time duriva the calendar year in which the election was made as pemutted by Section 25 ofthe Intemal Revenue Code and Section 125-4T(c)(3) of the Treasury Regulations. The resulting unused entitlement allocation may be used to issue bonds for single family housing or other authorized purposes; (v) the Program will meet the needs of low and moderate income families by providing below-mazket rate financing for the acquisition or rehabilitation of single family homes or by providing a taz� credit for mortgage interest paid, thereby enabling such persons to qualify for mortgages which would be unaeailable at market rates; (vi) the Issuers hereby request a waiver by the Minuesota Housing Finance Agency of the provisions of Section 462C.03, Subd. 5; (vu) no homes which are located in previously unincorporated real properiy annexed by the Cities within one yeaz prior to the date of adoption of this Program will be financed under this Program; (viri) prohibitions or limitations on assumprion will be imposed to the extent required by federal law relating to the t� exempt status of Bonds or to the continued validity of MCCs issued pursuant to the Program; provided that the Issuers may impose more stringent limitations at their discretion; (ix) the estimated amount ofmortgage loans to be made or purchased pursuant to this Program is approximately equal to the aggregate principal amount of Bonds issued and the amount which either of the Issuers may elect not to issue in fa�or of MCCs; (x) the estimated aggregate pzincipal amount of the Bonds, or estimated "non- issued bond amount" (as such term is used in Section 25(d)(2)(B) of the Code) of MCCs issued in lieu of the Bonds, is set forth above; (xi) the Bonds, if issued, may be issued in one or more series timed far sale consistent with the needs of the Cities in 1999, or, if any bond allocation is carried forwazd, in the first half of 2000; 1684905 Ol 9�-�� (�i) refinancing of e�sting indebtedness will be pemutted only where the mortgage loan aLso finances substantial "rehabilitation" as that term is defined under Munesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143 of the Code; (xiii) to the �tent required by the Act, during the first ten (10) months of the origination period, loans financed by the Bonds (but not mortgage loans asslsted by MCCs) will be made for existing housing; (xiv) the following additional provisions shall apply only to issuance of MCCs pursuant to this Program: (1) the "certificate credit rate" (as used in Section 25 ofthe Code) will be 20%; (2) a copy of the form which will be used to elect the nonissued bond amount is attached hereto as E�ibit A; and (3) the Issuers will ensure compliance with the requirements of Section 25 of the Code by use of an MCC procedural manual for the Program and by use of the program adinivistrator referenced in item (iri) above. 165490501 °i `I - 73a EXHIBTI' A TO JOIIVT BOARD PROGRAM MORTGAGE CREDIT CERTIFTCATE ELECTION (Pursuant to Temp. Reg. § 125-4'1� (i) Issuer name: [Name] [Address] TIlV: [Number] (ri) Issuer's Applicable limit, per § 146 of the Intemal Revenue Code of 1986: [ALLOCATION FOR 1999: $ � [CARRYFORWARD ALLOCATION FROM 1998: $ 1 (iu) The aggregate amount of qualified mortgage bonds issued during the calendaz year:: [Amount] (iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers dLiring the calendaz year: [Amount] (v) The date and amount of any previous elections under 1.25-4T(c) for 1999: [Date and amount] (vi) The amount of qualified mortgage bonds that the issuer elects not to issue: [Amount] State Certification attached. Dated: , 1998 CITY OF [CITY] By Mayor 1684905 Ol A-1 Council Fi1e # l� � 3 � ORIGINAL Presented By Referred To Committee: Date 1 APPROVIlVG A SINGLE FAMII,Y HOUSING PROGRAM TO BE FINANCED 2 BY Tf� ISSUANCE OF SINGLE FANIII,Y MORTGAGE REVENLTE BONDS 3 AND MORTGAGE CREDTT CERTIF'ICATES 4 5 6 WHEREAS, pursuazrt to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 7 462C (the °Housing Act"), the City of Saint Paul, Minnesota (the "City") is authorized to adopt a 8 housing plan and cazry out programs for the financing of single family housing for persons of low and 9 moderate income; and 10 11 WHEREAS, the NTivneapolis/Saint Paul Housing Finance Board (the "Board"), a joint powers 12 boazd organized under a Joint Powers 9greement (the "Joint Powers Agreement") by and between the 13 Mivneapolis Community Development Agency (the "Agency"), the Housing and Redevelopment 14 Authoriry ofthe City of Saint Paul, Mivnesota (the "Authority") and the City ofMinneapolis, Minuesota 15 ("Mxmeapolis") and accepted by the City, and under the laws of the State of Mimiesota, proposes to 16 undertake a single fasnily housing program relating to the NTitmeapolis and the Saint Paui entitiement 17 allocations available in 1999 and certain recycling refunding bonds (the "Program"), to be financed by 18 the issuance of one or more series of mortgage revenue obligations, mortgage revenue refixnding 19 obligations and/or mortgage credit certificates ("MCCs") pursuant to Minnesota Statutes, Sections 20 469 001 to 464.047, Chapters 462A, 462C and 474A and Section 471.59 {collectively, the "Act"}; and 21 22 WHEREAS, pursuant to the Act, the Board is authorized to issue bonds from time to time and 23 to use the proceeds of its bonds to make or purchase mortgage loans or to purchase participations in 24 mortgage loans from lending institutions and to issue MCCs in order to finance the construction and 25 rehabilitation, and to facilitate the purchase and sale, of single family housing for eligible persons or 2 6 fasnilies under the Act and to issue bonds to refund previously issued bonds; and 27 2 8 WHEREAS, the Program wiil provide below market interest rate mortgage loan financing or 2 9 income tas credits piimarily to persons of low or moderate income purchasing single family homes to 3 0 be used as their principal piaces of residence and which are located witt�in the geograpluc limits of the 31 City or Mirmeapolis; and 32 33 WHEREAS, the Act requires adoption of the Program after a public hearing held thereon 3 4 following publication of notice in a newspaper of general circulation in the City and Minneapolis at least 3 5 fifteen days in advance of the hearing; and RESOLUTION CITY OF SAINT PAUL, MINNESOTA Resolution Green Sheet # 2��68 # 36 $eN[ Paui Yro�vn RcsoluGm 1684914.01 1 a9-33d 2 WFIEREAS, the City Councfl has on the date hereof conducted a public hearin� on the Program, 3 after publication of notice as required by the Act; and 4 5 WHEREAS, the Program was submitted to the Metropolitau Council at or before the time of 6 publication of notice ofthe public hearing on such Program, and the Metropolitau Council was afforded 7 an oppomwity to present comments at the public hearing, all as required by the Act; and 8 9 WHEREAS, the Progra.m provides for the issuance of single family mortgage revenue bonds or 10 revenue refunding bonds in one or more series pursuant to the Act (the "Bonds") to make or purchase or 11 cause to be made or purc]�ased mortgage loans, or to purchase securities the proceeds ofwhich would be 12 used to purchase mortgage loans, and the issuance of MCCs to finance the acquisition, piimarily by low 13 and moderate income persons and families, of single family housing located within the geograplric 14 boundaries of the City or Minneapolis; and 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 WI�,REAS, it is proposed that the Program be approved and the Board be authorized to issue Bonds and MCCs pursuant to the Program and the Joint Powers Agreement; and WFIEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the Boazd or the Authority are in the best interests of the City. NOW, TI�REFORE, BE IT RESOLVED BY TF� CITY COUNCIL OF 'Tf� CITY OF SAIlVT PAUL AS FOLLOWS: The Program is hereby approved in its entirety in substantially the form on file with the City. The officers of the City and the Boazd aze authorized to take all actions as may be necessary or appropriate to carry out the Program in accordance with the Act and any other applicable laws and regulations. 2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby approved subject to agreement by the Board or the Authority and the purchasers of the Bonds, if any, and by the Board or the Authority as issuer of the MCCs, as to the e�ct terms of the Program and the financing therefore and the MCCs. 3. The Bonds may be issued in one or more series at the time or times and pursuant to terms detemuned by the Boazd, and be structuzed so as to take advantage of whaxever means are available and aze permitted by law to enhance the security for, or mazketability of, the Bonds, provided 168491401 q9-33o 1 that any such financing struchxre must be approved by the Boazd. The MCCs may be issued at the time 2 or times and pursuant to terms deternvned by the Boazd All such detennivations by the Board must 3 comply with the applicable provisions of the Act and the Internai Revenue Code of 1986, as amended, 4 and regulations promulgated thereunder. 5 4. The Boazd is authorized to take all actions wirich may be necessary or desirable in 6 connection with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no further 7 approval or consent of the City shall be required prior to the issuance of the Bonds or the MCCs by the 8 Board, or prior to the taking of any action by the Board to undertake and implement the Program. 9 5. Nothing in this Resolution or the documents prepazed pursuant hereto shall authorize the 10 e�cpenditure of any municipal fixnds on the Pro�am other tt�an as specified and authorized by separate 11 12 13 14 15 16 17 18 19 20 21 22 23 actions of the City and other than the revenues derived from the Program or otherwise granted to the City for tlris purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any properiy or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bonds sha11 never have the right to compel any �ercise of the ta�ng power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enfarce payment against any property of the City. The Bonds shall recite in substance that the principal and interest thereon, are payable solely from the revenues and proceeds pledged to the paymem thereof. The Bonds shall not constitute a debt of the City withiu the meaning of any constitutional or statutory limitation of indebtedness. 6. Any one or more series ofthe Bonds or the MCCs xnay be issued by the Authority in lieu of issuance by the Board, at the discretion of the Authority. 1684914 O1 oR�G�NA� q9 _ 330 Requested by Department o£: Plannina & Economic Develotment Adoption Certified by Council Secretary BY: a � (� Foxm Approved by City Attorney By: �_l I =� ,p�..� � c P �� Approved by Mayor: Date •� Z� ( rl� gy: - BY �� /��// Approved by Mayor for Submission to Council Hy Adopted by Council: Date �1�� CEICOUNGIL TACTPERSONB ONE /� tN✓ 54�t- Gr —(2 �t/(v MUST BE ON CAUNCIL AGENDA BY (DATE) f� �;//� fy� �/r ' TOTAL # OF SIGNATURE PAGES � s, ��v�� r �� y �;6 c /rt��v:h.t�; . _ PIANNING COMMISSION _ i _ CIB COMMITTEE _ . _ STAFF _ . _DISTRICTCWRT _. SUPPORTS WHICH COUNpL O&IECTIVE? N°_ 52068 y qq - �30 3/zQI Ry I GREEN SH � DEPARTMENT DIRECTOR � cinanoaNent(� FOH ❑BUDGETDIRECTOR _ � MAVOR (OR AS$ISTANTJr (CLIP ALL LOCATIONS FOR SIGNATURE) 1 v ri-o-,. T� 4��Uv r�� /YrT /6j�jt; e /� �id 9Yksvt. . �'� /� e�.S^ 7i3 ,�c a. .� /�t+e G�:- i� I:c�� c.�- ,T�'« , DIR. PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: 1. Has this person/firm ever worketl under a contract for this department> VES NO 2. Has this personttirm ever been a city emD�oyee� YES NO 3. Does this personlfirm possess a skill not normally possessetl by any current ciry employee� YES NO Esplain ail yea answers on seperate sheet and attach to grean sheet INITIATING PROBLEM, ISSUE. OPPO UNITY (WM1O. W al. W�en. Where. Whi): � � /,A �� /� C _ ti/ �' �/ �i � O� at�saa.� �u.O /'PC� e�i ,�.�-� a� � �;�r�h r d✓�eG� i�-+� .d 05��. 4 �/'Dr.,.t T7�/ ��G �l iSSu �"''t'�C.�� 'a� /��av.s P1� � cY4�i; ��°�s s� ,, a.s � / �� - k C��s s� ) Y_Y / � . l e ti fiavt �' �""J '� .. J�.�N �°`^O�f � /�� "' 9 �d� F+r�er� �! � i � / ✓bF /�o �s�° % �ro � � �a .d -e- a c�� v �o�-Ls ��.. �� l� � � � f� �� w� ��VANTAG iFAPPROVED: � � �/� /� l ju, f�_ d �°�^'�I,f1 C�ct O�- !!� �6 �/d r/(a�<2 ,/�`" � t �t�+�.� � .�t,,� � d"��'��r �rc+rt � �+�'►-� st-�v" `� �..e�' rL �'F-a..�._� .� ��..r_.amt� .�`' � 7� � � . 7� �ovy r �ry ��'r3a r �°`� � l�-v-e� i �lc�-c- �j��r a�o�S ��/" � �!a?.vu� � �� `� / .�?,$' � r ��/'v�da+G O Pi`�C //�' � � �",sq ADVA IFAPPqOVED: ,� � �"`�, � ,o��°� .�'ea's�'' �� 6 �-' ��5 �� '� �� M �'�� f �` � .�✓ < ., p s� �" > �� : 4 � ; � ' q j�. ES�°2. ) ° � q °�- 1l ' _�... :��°�r�` 1 ��c.. s � � ��, � u & ,{ � TOTALAMOUNTOFTRANSACTION $ FUNDIWG SOURCE FINANCIALINFOPAnATION (EXPLAIN) m �� a�� c s V�3:i,.�] ��"..'��Pi"s2 L'A�� } � � �_ : �"�� COST/REVENUE BUDGETEO (CIRCLE ONE) { YES NO ACTIVITY NUMBER qq•33o Interdepartmental Memorandum CITY OF SAINT PAUL To: Council President Bostrom Council member Benanav Council member Blakey Council member Coleman Council member Aanis Council member Lantry Council member Reiter From: Brian Sweeney�� Allen Carlson� Date: March 29, 1999 Re: Approval of 1994 Minneapolis/Saint Paul Single Family Housing Program To Be Financed by the Issuance of Single Family Mortgage Revenue Bonds and Mortgage Credit Certificates Purpose The purpose of this report is to describe the nature and purpose of Saint Paul's 1999 5ingle Family Housing Program and to recommend its adoption. Background In 1984, the Cities of Minneapolis and Saint Paul and their respective development agencies created the Minneapolis/Saint Paul Housing Finance Board (Joint Board) for the purpose of providing decent, safe, sanitary, and affordable housing to residents of both ciues. Membership of the Joint Boazd is comprised of three council members from each city. Saint Paul's current members are Council members Blakey, Bostrom and Lanhy. Through the Joint Board, the two cities sponsar their single family mortgage programs by issuing both tax exempt mortgage revenue bonds and mortgage credit certificates. Current prograzns financed through the Joint Board include Take Credit! which provides a federal tax credit to persons purchasing their first homes in either Saint Paul or Minneapolis and Phases XI and XII of the bond-fmanced Home Buyer Programs. o�q -330 Program Description The 1999 Single Family Housing Program is included as E�ibit A to the attached Council Resolutlon. Saint Paul will have a total bonding authority of $23,325,000 for the 1999 Program ($7,277,000 of 1998 carryforward authority and $16,048,000 of 1999 bonding authority). The 1999 Prograxn includes a description of the program eligibility requirements dictated by federal and state legisiation and serves as the basis for future use of Saint Paul's and Minneapolis, enritlement allocations of mortgage bond authoriTy. Ongoing Program parameters include a maximum purchase price of 90% of average azea purchase price (which current translates to $112,563 for an eacisting single family home) and a masimum household income of 100% of area median income (currently $63,600). Upon adoption by the Joint Board, the 1999 Program will be filed with the State Department of Revenue as required by Minnesota Statutes, Chapter 462C. The attached resolution does not obligate the City or HRA to expend any funds. In addition, the resolufion specifies that neither the City or HRA will be subject to any liability for bonds or mortgage credit certificates issued to finance the Program. Approval of the Program does not preclude the City or HRA from issuing multifamily revenue bonds. Public Purpose Through its single family mortgage programs, the Joint Board helps Saint Paul families become homeowners. In addition, by providing financing wluch accommodates both the purchase and the rehabilitation of single family homes, the Joint Board helps the City to meet its goal of improving its housing stock. Recommendation Staff recommends approval of the attached resolution giving approval to the issuance by the Minneapolis/Saint Paul Housing Finance Board of single family mortgage revenue bonds and mortgage credit certificates to fmance the City's 1999 Single Family Housing Program. Allen Carlson 266-6616 Sponsor: Chair Bostrom K \SHARED\CARI.SOAP�I.INDBLAD\99hsgplari.wpd 9°1-� Exhibit A NIINNEAPOLISISAINT PAUL 1999 SINGLE FAMII,Y JOINT BOARD PROGRAM The City of NTivneapolis, Mmnesota ("Mnneapolis"), the Mnneapolis Commnn;ty Development Agency (the "Agency"), the City of Saint Paul, Nfinnesota ( Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Nfinnesota (the "Authority"), acting individually or jointly through the Minneapolis/Saint Paui Housing Finance Boazd (the "Joint Boazd") (all together, the ° Issuers") propose to issue mortgage credit certificates ("MCCs") under Section 25 of the Internal Revenue Code of 1986, as amended (together with regulations promulgated thereunder, the "Code"), or new money mortgage revenue bonds and certain mortgage revenue refilnding bonds under Section 143 of the Code in one or more series, in either case to finance the single family housing program described herein (the "Program") pursuant to authority confened by Miunesota Statutes, Chapters 462C, 462A,, 469 and 474A, all as amended, (and any other general or special law authority for the issuance of obligations to fivance a single family housing program or development) (all together, the "Act"). Any action specified herein to be xnade by the "Issuers" may be made by one or more of them acting in concert orindividually. In creating this Program, the Issuers find and detem�ine: § that the preservation of the quality of life in Minneapolis and Saint Paul (the "Cities") is dependent upon maintaining an adequate, decent, safe and sanitary housing stock; § that mainta}ning such housing stock is a public purpose and will benefit the residents of the Cities; § that a need exists wiflvn the Cities to provide additional affordable owner-occupied housing for low and moderate income persons and families; and § that a need exists for mortgage credit to be made a�ailable for both e�sting and new owner- occupied housing, for rehabilitation of existing single family housing and for home improvements. To meet such needs, the Issuers intend to issue one or more series of single family mortgage revenue bonds and single family mortgage revenue refunding bonds ("Bonds") to cause the originarion of mortgage loans to finance the acquisition, construction, rehabilitation or improvement of single family housing in the Cities (or either of them). In addition to or in lieu of issuing Bonds, the Issuers (or any one or more of them) may issue MCCs to mortgagors who obtain mortgage loans to finance the purchase, construction, rehabilitation or improvement of singte family housing in the Cities (or either of them}. The Issuers will issue Bonds, or will elect not to issue bonds in favor of MCCs, in an aggregate principal amount of (a) $37,468,000 for Mivueapolis and $23,325,000 for Saint Paul, representing certain carried forwazd allocation and 1999 entitiement bond allocation of Minneapolis and Saint Paui; (b) an amount up to $18,708,000 to refund the Phase IV Bonds issued in 1987; (c) approximately 168490501 q`1.330 $42,530,000 to recycle refund prepayments and repayments of certain otstanding bonds; (d) up to $13,750,000 to refund certain outstanding Phase II Bonds, and (e) such principat amount of taxable bonds as may be necessary or convenient to fiuther the purposes of this Program. Mortgage loans financed through the issuance of the Bonds and those in connection with wluch the MCCs will be issued, will be subject to the following terms (or, for Bonds as to which these requirements do not apply as a matter of law, to such other terms approved by the Boatd): purchase price - the max;m� p�chase price for financed homes shall not exceed the lesser of (a) 90% (110% in "tazgeted areas" or azeas treated as tazgeted azeas) of the applicable "average azea purchase price" determined by the United States Department of the Treasury or by the Issuers on the basis ofmore complete informauon, or (b) 3 times the applicable income limit for the Program imposed by Minuesota law (except that in certain azeas the purchase price sha11 not �ceed 4 times the applicable income limit to the extent consistent with applicable federal law); income limits - the maximum income of the mortgagors shall be the lower of (a) the income restrictions imposed by federal tax law or (b) the income restrictions imposed by Miunesota Statutes, Section 462C.03, Subd. 2, including the restriction of Subd. 7 that for the first sis months of the Program, 50% of the money available to make mortgage loans or the "non-issued bond amount" of MCCs must be reseroed for persons and families with adjusted incomes not greater than 90% of the general Program income limits. In connection with this Program: (i) (a) in connection with any mortgage loans financed with the proceeds of mortgage revenue bonds, any financial institurions described in Section 462C.03, Subd. 4, and other mortgage lenders with offices located in the Ciries and which aze FHA/VA approved sellers of mortgage loans as well as other financial institutions and mortgage lenders which aze FI�A/VA, or F'NNIAlFHLMC approved sellers of mortgage loans and are reasonably acceptable to any master servicer acting on behalf of the Issuers, will be eligible for consideration for origination of such loans; the Cities will not limit participation in the Program to a single lender unless other lenders aze not willing to participate for the consideration offered; the Agency and the Authority shall be eligible for consideration for origination of loans; (b) in connection with issuance of MCCs, MCCs will not be limited to loans o aQinated by particulaz lenders but will be available with respect to the originarion of qualifying mortgage loans by any participating lender; (n) loans will not be made auailable or set aside for the exclusive use of developers or buiiders except, in the case of mortgage loans financed with the proceeds of mortgage revenue bonds, for new housing described in Section 462C.071, Subd. 2; 1684905 Ol 2 c�q .330 (iri) the Issuers expect to act as, or to contract with, a program administrator and a servicer to provide seivices to ensure tl�at the Program will be consistent with this Program, the Act and applicable federal law; (ro) as indicated above, up to $23,325,000 of carried forwazd allocation and $37,468,000 of the 1999 entitlement allocations of the Cities may be used in the Pro�am, provided, however, that no provision of ttus Program sball in any way prevent either of Minneapolis or Saint Paul from using all or a portion of its respective entitlement allocation(s} for muitifamily housing or any other authorized putpose. In addition, any election made by the Cities to issue MCCs in lieu of Bonds may be revoked in whole or in part, at any time duriva the calendar year in which the election was made as pemutted by Section 25 ofthe Intemal Revenue Code and Section 125-4T(c)(3) of the Treasury Regulations. The resulting unused entitlement allocation may be used to issue bonds for single family housing or other authorized purposes; (v) the Program will meet the needs of low and moderate income families by providing below-mazket rate financing for the acquisition or rehabilitation of single family homes or by providing a taz� credit for mortgage interest paid, thereby enabling such persons to qualify for mortgages which would be unaeailable at market rates; (vi) the Issuers hereby request a waiver by the Minuesota Housing Finance Agency of the provisions of Section 462C.03, Subd. 5; (vu) no homes which are located in previously unincorporated real properiy annexed by the Cities within one yeaz prior to the date of adoption of this Program will be financed under this Program; (viri) prohibitions or limitations on assumprion will be imposed to the extent required by federal law relating to the t� exempt status of Bonds or to the continued validity of MCCs issued pursuant to the Program; provided that the Issuers may impose more stringent limitations at their discretion; (ix) the estimated amount ofmortgage loans to be made or purchased pursuant to this Program is approximately equal to the aggregate principal amount of Bonds issued and the amount which either of the Issuers may elect not to issue in fa�or of MCCs; (x) the estimated aggregate pzincipal amount of the Bonds, or estimated "non- issued bond amount" (as such term is used in Section 25(d)(2)(B) of the Code) of MCCs issued in lieu of the Bonds, is set forth above; (xi) the Bonds, if issued, may be issued in one or more series timed far sale consistent with the needs of the Cities in 1999, or, if any bond allocation is carried forwazd, in the first half of 2000; 1684905 Ol 9�-�� (�i) refinancing of e�sting indebtedness will be pemutted only where the mortgage loan aLso finances substantial "rehabilitation" as that term is defined under Munesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143 of the Code; (xiii) to the �tent required by the Act, during the first ten (10) months of the origination period, loans financed by the Bonds (but not mortgage loans asslsted by MCCs) will be made for existing housing; (xiv) the following additional provisions shall apply only to issuance of MCCs pursuant to this Program: (1) the "certificate credit rate" (as used in Section 25 ofthe Code) will be 20%; (2) a copy of the form which will be used to elect the nonissued bond amount is attached hereto as E�ibit A; and (3) the Issuers will ensure compliance with the requirements of Section 25 of the Code by use of an MCC procedural manual for the Program and by use of the program adinivistrator referenced in item (iri) above. 165490501 °i `I - 73a EXHIBTI' A TO JOIIVT BOARD PROGRAM MORTGAGE CREDIT CERTIFTCATE ELECTION (Pursuant to Temp. Reg. § 125-4'1� (i) Issuer name: [Name] [Address] TIlV: [Number] (ri) Issuer's Applicable limit, per § 146 of the Intemal Revenue Code of 1986: [ALLOCATION FOR 1999: $ � [CARRYFORWARD ALLOCATION FROM 1998: $ 1 (iu) The aggregate amount of qualified mortgage bonds issued during the calendaz year:: [Amount] (iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers dLiring the calendaz year: [Amount] (v) The date and amount of any previous elections under 1.25-4T(c) for 1999: [Date and amount] (vi) The amount of qualified mortgage bonds that the issuer elects not to issue: [Amount] State Certification attached. Dated: , 1998 CITY OF [CITY] By Mayor 1684905 Ol A-1 Council Fi1e # l� � 3 � ORIGINAL Presented By Referred To Committee: Date 1 APPROVIlVG A SINGLE FAMII,Y HOUSING PROGRAM TO BE FINANCED 2 BY Tf� ISSUANCE OF SINGLE FANIII,Y MORTGAGE REVENLTE BONDS 3 AND MORTGAGE CREDTT CERTIF'ICATES 4 5 6 WHEREAS, pursuazrt to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 7 462C (the °Housing Act"), the City of Saint Paul, Minnesota (the "City") is authorized to adopt a 8 housing plan and cazry out programs for the financing of single family housing for persons of low and 9 moderate income; and 10 11 WHEREAS, the NTivneapolis/Saint Paul Housing Finance Board (the "Board"), a joint powers 12 boazd organized under a Joint Powers 9greement (the "Joint Powers Agreement") by and between the 13 Mivneapolis Community Development Agency (the "Agency"), the Housing and Redevelopment 14 Authoriry ofthe City of Saint Paul, Mivnesota (the "Authority") and the City ofMinneapolis, Minuesota 15 ("Mxmeapolis") and accepted by the City, and under the laws of the State of Mimiesota, proposes to 16 undertake a single fasnily housing program relating to the NTitmeapolis and the Saint Paui entitiement 17 allocations available in 1999 and certain recycling refunding bonds (the "Program"), to be financed by 18 the issuance of one or more series of mortgage revenue obligations, mortgage revenue refixnding 19 obligations and/or mortgage credit certificates ("MCCs") pursuant to Minnesota Statutes, Sections 20 469 001 to 464.047, Chapters 462A, 462C and 474A and Section 471.59 {collectively, the "Act"}; and 21 22 WHEREAS, pursuant to the Act, the Board is authorized to issue bonds from time to time and 23 to use the proceeds of its bonds to make or purchase mortgage loans or to purchase participations in 24 mortgage loans from lending institutions and to issue MCCs in order to finance the construction and 25 rehabilitation, and to facilitate the purchase and sale, of single family housing for eligible persons or 2 6 fasnilies under the Act and to issue bonds to refund previously issued bonds; and 27 2 8 WHEREAS, the Program wiil provide below market interest rate mortgage loan financing or 2 9 income tas credits piimarily to persons of low or moderate income purchasing single family homes to 3 0 be used as their principal piaces of residence and which are located witt�in the geograpluc limits of the 31 City or Mirmeapolis; and 32 33 WHEREAS, the Act requires adoption of the Program after a public hearing held thereon 3 4 following publication of notice in a newspaper of general circulation in the City and Minneapolis at least 3 5 fifteen days in advance of the hearing; and RESOLUTION CITY OF SAINT PAUL, MINNESOTA Resolution Green Sheet # 2��68 # 36 $eN[ Paui Yro�vn RcsoluGm 1684914.01 1 a9-33d 2 WFIEREAS, the City Councfl has on the date hereof conducted a public hearin� on the Program, 3 after publication of notice as required by the Act; and 4 5 WHEREAS, the Program was submitted to the Metropolitau Council at or before the time of 6 publication of notice ofthe public hearing on such Program, and the Metropolitau Council was afforded 7 an oppomwity to present comments at the public hearing, all as required by the Act; and 8 9 WHEREAS, the Progra.m provides for the issuance of single family mortgage revenue bonds or 10 revenue refunding bonds in one or more series pursuant to the Act (the "Bonds") to make or purchase or 11 cause to be made or purc]�ased mortgage loans, or to purchase securities the proceeds ofwhich would be 12 used to purchase mortgage loans, and the issuance of MCCs to finance the acquisition, piimarily by low 13 and moderate income persons and families, of single family housing located within the geograplric 14 boundaries of the City or Minneapolis; and 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 WI�,REAS, it is proposed that the Program be approved and the Board be authorized to issue Bonds and MCCs pursuant to the Program and the Joint Powers Agreement; and WFIEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the Boazd or the Authority are in the best interests of the City. NOW, TI�REFORE, BE IT RESOLVED BY TF� CITY COUNCIL OF 'Tf� CITY OF SAIlVT PAUL AS FOLLOWS: The Program is hereby approved in its entirety in substantially the form on file with the City. The officers of the City and the Boazd aze authorized to take all actions as may be necessary or appropriate to carry out the Program in accordance with the Act and any other applicable laws and regulations. 2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby approved subject to agreement by the Board or the Authority and the purchasers of the Bonds, if any, and by the Board or the Authority as issuer of the MCCs, as to the e�ct terms of the Program and the financing therefore and the MCCs. 3. The Bonds may be issued in one or more series at the time or times and pursuant to terms detemuned by the Boazd, and be structuzed so as to take advantage of whaxever means are available and aze permitted by law to enhance the security for, or mazketability of, the Bonds, provided 168491401 q9-33o 1 that any such financing struchxre must be approved by the Boazd. The MCCs may be issued at the time 2 or times and pursuant to terms deternvned by the Boazd All such detennivations by the Board must 3 comply with the applicable provisions of the Act and the Internai Revenue Code of 1986, as amended, 4 and regulations promulgated thereunder. 5 4. The Boazd is authorized to take all actions wirich may be necessary or desirable in 6 connection with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no further 7 approval or consent of the City shall be required prior to the issuance of the Bonds or the MCCs by the 8 Board, or prior to the taking of any action by the Board to undertake and implement the Program. 9 5. Nothing in this Resolution or the documents prepazed pursuant hereto shall authorize the 10 e�cpenditure of any municipal fixnds on the Pro�am other tt�an as specified and authorized by separate 11 12 13 14 15 16 17 18 19 20 21 22 23 actions of the City and other than the revenues derived from the Program or otherwise granted to the City for tlris purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any properiy or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bonds sha11 never have the right to compel any �ercise of the ta�ng power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enfarce payment against any property of the City. The Bonds shall recite in substance that the principal and interest thereon, are payable solely from the revenues and proceeds pledged to the paymem thereof. The Bonds shall not constitute a debt of the City withiu the meaning of any constitutional or statutory limitation of indebtedness. 6. Any one or more series ofthe Bonds or the MCCs xnay be issued by the Authority in lieu of issuance by the Board, at the discretion of the Authority. 1684914 O1 oR�G�NA� q9 _ 330 Requested by Department o£: Plannina & Economic Develotment Adoption Certified by Council Secretary BY: a � (� Foxm Approved by City Attorney By: �_l I =� ,p�..� � c P �� Approved by Mayor: Date •� Z� ( rl� gy: - BY �� /��// Approved by Mayor for Submission to Council Hy Adopted by Council: Date �1�� CEICOUNGIL TACTPERSONB ONE /� tN✓ 54�t- Gr —(2 �t/(v MUST BE ON CAUNCIL AGENDA BY (DATE) f� �;//� fy� �/r ' TOTAL # OF SIGNATURE PAGES � s, ��v�� r �� y �;6 c /rt��v:h.t�; . _ PIANNING COMMISSION _ i _ CIB COMMITTEE _ . _ STAFF _ . _DISTRICTCWRT _. SUPPORTS WHICH COUNpL O&IECTIVE? N°_ 52068 y qq - �30 3/zQI Ry I GREEN SH � DEPARTMENT DIRECTOR � cinanoaNent(� FOH ❑BUDGETDIRECTOR _ � MAVOR (OR AS$ISTANTJr (CLIP ALL LOCATIONS FOR SIGNATURE) 1 v ri-o-,. T� 4��Uv r�� /YrT /6j�jt; e /� �id 9Yksvt. . �'� /� e�.S^ 7i3 ,�c a. .� /�t+e G�:- i� I:c�� c.�- ,T�'« , DIR. PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: 1. Has this person/firm ever worketl under a contract for this department> VES NO 2. Has this personttirm ever been a city emD�oyee� YES NO 3. Does this personlfirm possess a skill not normally possessetl by any current ciry employee� YES NO Esplain ail yea answers on seperate sheet and attach to grean sheet INITIATING PROBLEM, ISSUE. OPPO UNITY (WM1O. W al. W�en. Where. Whi): � � /,A �� /� C _ ti/ �' �/ �i � O� at�saa.� �u.O /'PC� e�i ,�.�-� a� � �;�r�h r d✓�eG� i�-+� .d 05��. 4 �/'Dr.,.t T7�/ ��G �l iSSu �"''t'�C.�� 'a� /��av.s P1� � cY4�i; ��°�s s� ,, a.s � / �� - k C��s s� ) Y_Y / � . l e ti fiavt �' �""J '� .. J�.�N �°`^O�f � /�� "' 9 �d� F+r�er� �! � i � / ✓bF /�o �s�° % �ro � � �a .d -e- a c�� v �o�-Ls ��.. �� l� � � � f� �� w� ��VANTAG iFAPPROVED: � � �/� /� l ju, f�_ d �°�^'�I,f1 C�ct O�- !!� �6 �/d r/(a�<2 ,/�`" � t �t�+�.� � .�t,,� � d"��'��r �rc+rt � �+�'►-� st-�v" `� �..e�' rL �'F-a..�._� .� ��..r_.amt� .�`' � 7� � � . 7� �ovy r �ry ��'r3a r �°`� � l�-v-e� i �lc�-c- �j��r a�o�S ��/" � �!a?.vu� � �� `� / .�?,$' � r ��/'v�da+G O Pi`�C //�' � � �",sq ADVA IFAPPqOVED: ,� � �"`�, � ,o��°� .�'ea's�'' �� 6 �-' ��5 �� '� �� M �'�� f �` � .�✓ < ., p s� �" > �� : 4 � ; � ' q j�. ES�°2. ) ° � q °�- 1l ' _�... :��°�r�` 1 ��c.. s � � ��, � u & ,{ � TOTALAMOUNTOFTRANSACTION $ FUNDIWG SOURCE FINANCIALINFOPAnATION (EXPLAIN) m �� a�� c s V�3:i,.�] ��"..'��Pi"s2 L'A�� } � � �_ : �"�� COST/REVENUE BUDGETEO (CIRCLE ONE) { YES NO ACTIVITY NUMBER qq•33o Interdepartmental Memorandum CITY OF SAINT PAUL To: Council President Bostrom Council member Benanav Council member Blakey Council member Coleman Council member Aanis Council member Lantry Council member Reiter From: Brian Sweeney�� Allen Carlson� Date: March 29, 1999 Re: Approval of 1994 Minneapolis/Saint Paul Single Family Housing Program To Be Financed by the Issuance of Single Family Mortgage Revenue Bonds and Mortgage Credit Certificates Purpose The purpose of this report is to describe the nature and purpose of Saint Paul's 1999 5ingle Family Housing Program and to recommend its adoption. Background In 1984, the Cities of Minneapolis and Saint Paul and their respective development agencies created the Minneapolis/Saint Paul Housing Finance Board (Joint Board) for the purpose of providing decent, safe, sanitary, and affordable housing to residents of both ciues. Membership of the Joint Boazd is comprised of three council members from each city. Saint Paul's current members are Council members Blakey, Bostrom and Lanhy. Through the Joint Board, the two cities sponsar their single family mortgage programs by issuing both tax exempt mortgage revenue bonds and mortgage credit certificates. Current prograzns financed through the Joint Board include Take Credit! which provides a federal tax credit to persons purchasing their first homes in either Saint Paul or Minneapolis and Phases XI and XII of the bond-fmanced Home Buyer Programs. o�q -330 Program Description The 1999 Single Family Housing Program is included as E�ibit A to the attached Council Resolutlon. Saint Paul will have a total bonding authority of $23,325,000 for the 1999 Program ($7,277,000 of 1998 carryforward authority and $16,048,000 of 1999 bonding authority). The 1999 Prograxn includes a description of the program eligibility requirements dictated by federal and state legisiation and serves as the basis for future use of Saint Paul's and Minneapolis, enritlement allocations of mortgage bond authoriTy. Ongoing Program parameters include a maximum purchase price of 90% of average azea purchase price (which current translates to $112,563 for an eacisting single family home) and a masimum household income of 100% of area median income (currently $63,600). Upon adoption by the Joint Board, the 1999 Program will be filed with the State Department of Revenue as required by Minnesota Statutes, Chapter 462C. The attached resolution does not obligate the City or HRA to expend any funds. In addition, the resolufion specifies that neither the City or HRA will be subject to any liability for bonds or mortgage credit certificates issued to finance the Program. Approval of the Program does not preclude the City or HRA from issuing multifamily revenue bonds. Public Purpose Through its single family mortgage programs, the Joint Board helps Saint Paul families become homeowners. In addition, by providing financing wluch accommodates both the purchase and the rehabilitation of single family homes, the Joint Board helps the City to meet its goal of improving its housing stock. Recommendation Staff recommends approval of the attached resolution giving approval to the issuance by the Minneapolis/Saint Paul Housing Finance Board of single family mortgage revenue bonds and mortgage credit certificates to fmance the City's 1999 Single Family Housing Program. Allen Carlson 266-6616 Sponsor: Chair Bostrom K \SHARED\CARI.SOAP�I.INDBLAD\99hsgplari.wpd 9°1-� Exhibit A NIINNEAPOLISISAINT PAUL 1999 SINGLE FAMII,Y JOINT BOARD PROGRAM The City of NTivneapolis, Mmnesota ("Mnneapolis"), the Mnneapolis Commnn;ty Development Agency (the "Agency"), the City of Saint Paul, Nfinnesota ( Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Nfinnesota (the "Authority"), acting individually or jointly through the Minneapolis/Saint Paui Housing Finance Boazd (the "Joint Boazd") (all together, the ° Issuers") propose to issue mortgage credit certificates ("MCCs") under Section 25 of the Internal Revenue Code of 1986, as amended (together with regulations promulgated thereunder, the "Code"), or new money mortgage revenue bonds and certain mortgage revenue refilnding bonds under Section 143 of the Code in one or more series, in either case to finance the single family housing program described herein (the "Program") pursuant to authority confened by Miunesota Statutes, Chapters 462C, 462A,, 469 and 474A, all as amended, (and any other general or special law authority for the issuance of obligations to fivance a single family housing program or development) (all together, the "Act"). Any action specified herein to be xnade by the "Issuers" may be made by one or more of them acting in concert orindividually. In creating this Program, the Issuers find and detem�ine: § that the preservation of the quality of life in Minneapolis and Saint Paul (the "Cities") is dependent upon maintaining an adequate, decent, safe and sanitary housing stock; § that mainta}ning such housing stock is a public purpose and will benefit the residents of the Cities; § that a need exists wiflvn the Cities to provide additional affordable owner-occupied housing for low and moderate income persons and families; and § that a need exists for mortgage credit to be made a�ailable for both e�sting and new owner- occupied housing, for rehabilitation of existing single family housing and for home improvements. To meet such needs, the Issuers intend to issue one or more series of single family mortgage revenue bonds and single family mortgage revenue refunding bonds ("Bonds") to cause the originarion of mortgage loans to finance the acquisition, construction, rehabilitation or improvement of single family housing in the Cities (or either of them). In addition to or in lieu of issuing Bonds, the Issuers (or any one or more of them) may issue MCCs to mortgagors who obtain mortgage loans to finance the purchase, construction, rehabilitation or improvement of singte family housing in the Cities (or either of them}. The Issuers will issue Bonds, or will elect not to issue bonds in favor of MCCs, in an aggregate principal amount of (a) $37,468,000 for Mivueapolis and $23,325,000 for Saint Paul, representing certain carried forwazd allocation and 1999 entitiement bond allocation of Minneapolis and Saint Paui; (b) an amount up to $18,708,000 to refund the Phase IV Bonds issued in 1987; (c) approximately 168490501 q`1.330 $42,530,000 to recycle refund prepayments and repayments of certain otstanding bonds; (d) up to $13,750,000 to refund certain outstanding Phase II Bonds, and (e) such principat amount of taxable bonds as may be necessary or convenient to fiuther the purposes of this Program. Mortgage loans financed through the issuance of the Bonds and those in connection with wluch the MCCs will be issued, will be subject to the following terms (or, for Bonds as to which these requirements do not apply as a matter of law, to such other terms approved by the Boatd): purchase price - the max;m� p�chase price for financed homes shall not exceed the lesser of (a) 90% (110% in "tazgeted areas" or azeas treated as tazgeted azeas) of the applicable "average azea purchase price" determined by the United States Department of the Treasury or by the Issuers on the basis ofmore complete informauon, or (b) 3 times the applicable income limit for the Program imposed by Minuesota law (except that in certain azeas the purchase price sha11 not �ceed 4 times the applicable income limit to the extent consistent with applicable federal law); income limits - the maximum income of the mortgagors shall be the lower of (a) the income restrictions imposed by federal tax law or (b) the income restrictions imposed by Miunesota Statutes, Section 462C.03, Subd. 2, including the restriction of Subd. 7 that for the first sis months of the Program, 50% of the money available to make mortgage loans or the "non-issued bond amount" of MCCs must be reseroed for persons and families with adjusted incomes not greater than 90% of the general Program income limits. In connection with this Program: (i) (a) in connection with any mortgage loans financed with the proceeds of mortgage revenue bonds, any financial institurions described in Section 462C.03, Subd. 4, and other mortgage lenders with offices located in the Ciries and which aze FHA/VA approved sellers of mortgage loans as well as other financial institutions and mortgage lenders which aze FI�A/VA, or F'NNIAlFHLMC approved sellers of mortgage loans and are reasonably acceptable to any master servicer acting on behalf of the Issuers, will be eligible for consideration for origination of such loans; the Cities will not limit participation in the Program to a single lender unless other lenders aze not willing to participate for the consideration offered; the Agency and the Authority shall be eligible for consideration for origination of loans; (b) in connection with issuance of MCCs, MCCs will not be limited to loans o aQinated by particulaz lenders but will be available with respect to the originarion of qualifying mortgage loans by any participating lender; (n) loans will not be made auailable or set aside for the exclusive use of developers or buiiders except, in the case of mortgage loans financed with the proceeds of mortgage revenue bonds, for new housing described in Section 462C.071, Subd. 2; 1684905 Ol 2 c�q .330 (iri) the Issuers expect to act as, or to contract with, a program administrator and a servicer to provide seivices to ensure tl�at the Program will be consistent with this Program, the Act and applicable federal law; (ro) as indicated above, up to $23,325,000 of carried forwazd allocation and $37,468,000 of the 1999 entitlement allocations of the Cities may be used in the Pro�am, provided, however, that no provision of ttus Program sball in any way prevent either of Minneapolis or Saint Paul from using all or a portion of its respective entitlement allocation(s} for muitifamily housing or any other authorized putpose. In addition, any election made by the Cities to issue MCCs in lieu of Bonds may be revoked in whole or in part, at any time duriva the calendar year in which the election was made as pemutted by Section 25 ofthe Intemal Revenue Code and Section 125-4T(c)(3) of the Treasury Regulations. The resulting unused entitlement allocation may be used to issue bonds for single family housing or other authorized purposes; (v) the Program will meet the needs of low and moderate income families by providing below-mazket rate financing for the acquisition or rehabilitation of single family homes or by providing a taz� credit for mortgage interest paid, thereby enabling such persons to qualify for mortgages which would be unaeailable at market rates; (vi) the Issuers hereby request a waiver by the Minuesota Housing Finance Agency of the provisions of Section 462C.03, Subd. 5; (vu) no homes which are located in previously unincorporated real properiy annexed by the Cities within one yeaz prior to the date of adoption of this Program will be financed under this Program; (viri) prohibitions or limitations on assumprion will be imposed to the extent required by federal law relating to the t� exempt status of Bonds or to the continued validity of MCCs issued pursuant to the Program; provided that the Issuers may impose more stringent limitations at their discretion; (ix) the estimated amount ofmortgage loans to be made or purchased pursuant to this Program is approximately equal to the aggregate principal amount of Bonds issued and the amount which either of the Issuers may elect not to issue in fa�or of MCCs; (x) the estimated aggregate pzincipal amount of the Bonds, or estimated "non- issued bond amount" (as such term is used in Section 25(d)(2)(B) of the Code) of MCCs issued in lieu of the Bonds, is set forth above; (xi) the Bonds, if issued, may be issued in one or more series timed far sale consistent with the needs of the Cities in 1999, or, if any bond allocation is carried forwazd, in the first half of 2000; 1684905 Ol 9�-�� (�i) refinancing of e�sting indebtedness will be pemutted only where the mortgage loan aLso finances substantial "rehabilitation" as that term is defined under Munesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143 of the Code; (xiii) to the �tent required by the Act, during the first ten (10) months of the origination period, loans financed by the Bonds (but not mortgage loans asslsted by MCCs) will be made for existing housing; (xiv) the following additional provisions shall apply only to issuance of MCCs pursuant to this Program: (1) the "certificate credit rate" (as used in Section 25 ofthe Code) will be 20%; (2) a copy of the form which will be used to elect the nonissued bond amount is attached hereto as E�ibit A; and (3) the Issuers will ensure compliance with the requirements of Section 25 of the Code by use of an MCC procedural manual for the Program and by use of the program adinivistrator referenced in item (iri) above. 165490501 °i `I - 73a EXHIBTI' A TO JOIIVT BOARD PROGRAM MORTGAGE CREDIT CERTIFTCATE ELECTION (Pursuant to Temp. Reg. § 125-4'1� (i) Issuer name: [Name] [Address] TIlV: [Number] (ri) Issuer's Applicable limit, per § 146 of the Intemal Revenue Code of 1986: [ALLOCATION FOR 1999: $ � [CARRYFORWARD ALLOCATION FROM 1998: $ 1 (iu) The aggregate amount of qualified mortgage bonds issued during the calendaz year:: [Amount] (iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers dLiring the calendaz year: [Amount] (v) The date and amount of any previous elections under 1.25-4T(c) for 1999: [Date and amount] (vi) The amount of qualified mortgage bonds that the issuer elects not to issue: [Amount] State Certification attached. Dated: , 1998 CITY OF [CITY] By Mayor 1684905 Ol A-1