87-1570 WHITE - G�TV CLERK
s PINK - FINANCE GITY OF SAINT PAUL Council
C�(NARV -�9EPARTMENT �
� StUE r MAVpR File NO. �� ' �
Co ci Resolution ; ,
Presented By
Referred To Committee: Date
Out of Committee By Date
GIVING FINAL APPROVAL TO THE ISSUANCE BY
THE MINNEAPOLIS/SAINT PAUL HOUSING FINANCE BOARD OF
SINGLE FAMILY MORTGAGE REVENUE BONDS TO FINANCE
SINGLE FAMILY HOUSING PROGAMS OF THE
CITY OF SAINT PAUL, AND AUTHORIZING
THE USE OF BONDING AUTHORITY
WHEREAS, pursuant to the Minnesota Municipal Housing Act,
Minnesota Statutes, Chapter 462C (the "Act" ) , the City of Saint
Paul, Minnesota (the "City" ) , is authorized to adopt a housing
plan and carry out programs for the financing of single family
housing for persons of low and moderate income, and to designate
its housing and redevelopment authority to act on its behalf ;
and
�aHEREAS, the City Council (the "City Council" ) of the City
has prepared the Housing Plan for the City of Saint Pau1, Minnesota,
dated March 1, 1983 (the "Plan" ) , which Plan was adopted pursuant
to the Act on March 29, 1983 ; and
COUNC[LMEN Requested b par�g�ent of:
Yeas p�eW Nays �
N"°S�e [n Favor
Rettman
Scheibei
Sonnen __ Ageillst BY
Tedesco ' �
Wilson �
Form Approved by City Attorney
Adopted by Council: Date �� /
Certified Passed by Council Secretary BY ���'�i�� ��/��---
gl,
Approved by Ylavor: Date _ Approve by Mayor for Submis ' t Council
By _ _ _ By� � �—�
. . � ��-i�r�
WHEREAS, after the notice and public hearing required by
the Act, the Minneapolis/Saint Paul Housing Finance Board (the
"Board" ) has approved the Minneapolis/Saint Paul 1987-88
Single Family Housing Program pursuant to the Act to provide
for the financing of single family owner-occupied housing in
the City and in the City of Minneapolis, Minnesota
( "Minneapolis" ) (collectively, the "Cities" ) , from obligations
issued utilizing bonding authority for calendar years 1986,
1987, and 1988 (the "Program" ) ; and
WHEREAS, The Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota (the "HRA" ) , has been designated
by ordinance to exercise on behalf of the City the powers
conferred by Minnesota Statutes, Sections 462C. 01 to 462C. 08,
pursuant to the Saint Paul Administrative Code, Chapter 72,
upon the direction and authorization of the City Council; and
WHEREAS, the Program has been submitted by the Board to
the Minnesota Housing Finance Agency and the Metropolitan
Council in accordance with Section 462C. 04 of the Act; and
WHEREAS, the Program provides for the issuance of revenue
bonds or obligations or mortgage credit certificates pursuant
to the Act to make or purchase or cause to be purchased
mortgage loans, or to purchase securities the proceeds of
which would be used to purchase mortgage loans, to finance the
acquisition, primarily by low and moderate income persons and
families, of single family housing located within the
geographic boundaries of the Cities; and
WHEREAS, the Board has issued its Single Family
Residential Mortgage Revenue Refunding Bonds (GNMA Mortgage-
Backed Securities Program} , Series 1986-A, in the aggregate
principal amount of $23 ,500, 000, and its Single Family
Residential Mortgage Revenue Refunding Bonds (GNMA Mortgage-
Backed Securities Program) , Series 1986-B, in the aggregate
principal amount of $13 ,874 , 000 (collectively, the "Prior
Bonds" ) ; and
WHEREAS, it is proposed that the Board be authorized to
issue bonds, specifically its Single Family Mortgage Revenue
Bonds (Mir�n�apolisj Saint Paul r arnily I1UUSiIlc� Pi�yram,
Phase V) , Series 1987A, Series 1987B and Series 1987C (the
"Bonds" ) , to refund the Prior Bonds and to finance part of the
Program pursuant to the Joint Powers Agreement creating the
Board dated December 1, 1984 , as amended as of November 1,
1986 (the "Joint Powers Agreement" } ; and
2
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WHEREAS, the Joint Powers Agreement requires the HRA to
designate the Board to issue the Bonds on its behalf, and to
approve the Program; and
WHEREAS, the Joint Powers Agreement requires the City
both to approve the Program under its ordinance and to
authorize the HRA, Minneapolis and the Minneapolis Community
Development Agency (the "MCDA" ) under the Joint Powers
Agreement to undertake the Program and refund the Prior Bonds
by the issuance of the Bonds by the Board; and
WHEREAS, the Section 462C. 12, Subd. 2 (c) , of the Act
requires the Cities to authorize the Board to issue bonds
utilizing bonding authority ( i .e. , authority to issue bonds
which are subject to the federal limit on the amount of tax-
exempt private activity bonds) allocated to the Cities; and
WHEREAS, the Cities have available a 1986 carryforward
allocation of bonding authority (allocated to the Board prior
to its carryforward) and the 1987 entitlement allocation of
bonding authority which may be used for the issuance of single
family mortgage revenue bonds; and
WHEREAS, it appears that the Program and the issuance of
obligations by the Board are in the best interests of the
City:
NOW THEREFORE, BE IT RESOLVED by the City Council of the
City of Saint Paul, Minnesota, as follows:
1. The Program is hereby approved, subject to final
agreement by the Board and the purchasers of the obligations
to be issued to finance the Program as to the ultimate details
of the Program and the financing therefor. The HRA through
the Board is hereby directed and authorized to carry out the
Program and the program pursuant to which the Prior Bonds were
issued.
2. The HRA, Minneapolis and MCDA are hereby authorized
under the Joint Powers Agreement to undertake the Program and
refund the Prior Bonds by the issuance of the Bonds by the
Bo�rd. The �ity herehy �pproves t�� �ecig►:ation of rhP R�ard
by the HRA to issue the Bonds on behalf of the HRA.
3 . The issuance by the Board of revenue bonds in an
aggregate principal amount not to exceed the amounts specified
in Exhibit A hereto (the "Bonds" ) to refund the Prior Bonds
and to finance the Program is hereby finally approved.
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4 . The Bonds may be issued in one or more series at the
time or times and pursuant to the terms determined by the
Board, and be structured so as to take advantage of whatever
means are available and are permitted by law to enhance the
security for , or marketability of, the Bonds, provided that
any such financing structure must be approved by the Board.
5 . The Board is authorized to take all actions which may
be necessary or desirable in connection with the refunding of
the Prior Bonds and the issuance of the Bonds, acting on
behalf of the HRA, and no further approval by, or consent of,
the City shall be required prior to the issuance of the Bonds
by the Board, or prior to the taking of any action by the
Board to undertake and implement the Program or the program
pursuant to which the Prior Bonds were issued.
6 . Nothing in this Resolution or the documents prepared
pursuant hereto shall authorize the expenditure of any
municipal funds on the Program (or the program pursuant to
which the Prior Bonds were issued) other than as specified and
authorized by separate actions of the City or HRA and other
than the revenues derived from the Program or otherwise
granted to the City or HRA for this purpose. The Bonds shall
not constitute a charge, lien or encumbrance, legal or
equitable, upon any property or funds of the City or HRA
except the revenue and proceeds pledged to the payment
thereof, nor shall the City or HRA be subject to any liability
thereon. The Holder of the Bonds shall never have the right
to compel any exercise of the taxing power of the City or HRA
to pay the outstanding principal on the Bonds or the interest
thereon, or to enforce payment thereof against any property of
the City or HRA. The Bonds shall recite in substance that the
Bonds, including the interest thereon, are payable solely from
the revenues and proceeds pledged to the payment thereof. The
Bonds shall not constitute a debt of the City or HRA within
the meaning of any constitutional or statutory limitation.
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WHITE - CITV CLERK
PILJK - FINANCE G I TY O F SA I NT PA U L Council �►� ����
CANAR• -�DEPARTMENT i
BLUE - MAVOR File NO.
ou c ' solution
Presented By
Referred To Committee: Date
Out of Committee By Date
7. Pursuant to authorization in 1986, the Board carried
forward $14, 500, 000 of bonding authority of the City and Minneapolis.
Such bonding authority carried forward may be utilized by the
Board in the issuance of the Bonds . Of the $ 18,623,000 of
the City' s 1987 entitlement allocation of bonding authority
remaining available on the date hereof, $ 18,623,000 shall
be allocated to, and may be used by, the Board for the issuance
of the Bonds . Any part of such authorized use of the City' s
1987 entitlement allocation of bonding authority not used on
the issuance of the Bonds shall be carried forward by the Board
for use in a later year for qualified mortgage bonds . The Board
shall notify the City promptly upon the issuance of the Bonds
of the amount of such bonding authority, if any, utilized on
the issuance of the Bonds.
Adopted this day of October, 1987 .
COUNCILMEN Requested by Department of•
Yeas p�eW Nays .q�
Nicosia ��/
Rettman Itl F8V0[
Scheibel QJ
Sonnen __ AgelllSt BY
�.�..aGG6(A9-
Wilson �l/� � n �Q7
y �� Form Approved by City Attomey
Adopted by Council: Date
Certified Vas e c'1 S e r BY ����'��" '
B}�
Appro e by Mavor: Da _ ^"� ~31981 Approved by Mayor Eor Submission t Council
-_�
_ _ B
p���D r�O v 7 - 1987_
-�' ,� Q�
P E.D. DEPARTMENT C,�L�"`" ���� �� _ O62
' Davi d S ran ers ,�_CONTACT 5 c�
� PHONE
October 21 , 1987 DATE ��� e Q
ASSIGN NUMBER F � ROUTIN 0 Cli All Lacations for Si nature : ������►
2 De artment D recto 3 Director of Mana ement Ma �r�"' �
P 9 / Y a�
� Finance, and anagemen Services Director � 5. City Clerk
Budget pirec or / �' Councilperson Sch�ibel/Wilson
� Ci ty Attorne ��/c�a.-z..�L-
G�.�<-
WHAT WILL BE ACH EYED BY TAKIN�TI�ON THE ATTACHED MATERIALS? (Purpose/ _ .
Rationale) :
The resolu ion approves the Phase V of the Single Family Housing Program and will
enable the HRA to utilize a portion of the 1987 City of Saint Paul Tax Execmpt -
bonding allocation to help finance the program. -
RECEIVED �
COST BENEFIT BU GETARY AND PERSONNEL IMPACTS ANTICIPATED: `
OCT ;,;� 1987
Below mark t rate home mortgages for first time home buyers in the f��Y��,s
, City of Sa nt Paul . OFFI�E .
FINANCING SOURCE AND BUDGET ACTIVITY NUh�ER CHARGED OR CREDITED: (Mayor's signa-
90,000,000 ture not re-
Total Amount f"Transaction: quired if under
• � �10,000) `
Funding Sourc : Tax Exempt mortgage Revenue Bonds �
Activity Num r: N/A .
ATTACHMENTS Lis and Number All Attacibnents :
1) Bo rd Report
1) Co ncil Resolution �
' 1) Si gle Family Housing Program
DEPARTMENT REVIE CITY ATTORNEY REVIEW
x Yes No Co ncil Resolution Required? ' Resolution Required? Yes No
Yes x No In urance Required? Insurance Sufficient? Yes No
Yes x No In urance Attached: �
(SEE •REVERSE SIDE FOR INSTRUCTIONSj . �
Revised 12/84
�'a ' �
/S7 O
L1ATE: OCIbffi2 20, 1987
APPl�OVAL OF A SINGLE FANIILY HOiJSING PFtOGRANi AND APPRpVAL F�OR Tf� I�OUSIl� AND
RIDEVEL(JPN�'I' A[fl330RI2'Y 'I�0 FINANCE THE HCRJSIlJG PF�JC�I AND AP�lt�VAI.� AND
AU'I�iORIZATI�T TO EXECUTID 'Ii� VARIOUS DOQA�N'!5 IN �Il�CI'IO�T �FI.
(PHASE V OF 'IHE N�IJEAPOLIS / SAINT PAUL HC�TSIl�G Pf�AM, N� r�r�sorr
DOLLARS)
The Minneapolis Ccermnunity DEVela�nent AcJencY and the Hausing arad Redevelop�nent
Authority of the City of Saint Paul have jointly issued aryd tamporarily placed
portions of the Cities' 1985 and 1986 tax exe�npt bondir�g allocation. 'Ine
bonds have tem�rarily plaaed in on�er to avoid c�petition with the Single
Family Hausiryg Progz'ams Phases II aryd III. Phases II arra III as well as PZiase
IV have been ccempleted or c�conanitted. Therefore it is naw necessary and in the
public ir�terest to reftuxl the entire outstar�ding principal am�unt of both the
1985 and 1986 allocations and utilize a portion of the City of Saint Paul's
1987 tax exempt bonding allocation to issue qualified rnort�gage bonds. Doing
this creates P�ase V of the Minneapolis / Saint Paul Ho�asing Program.
The proceeds of the Phase V bond issuat�ce wi11 be usecl to �xa�chase m�rGgage
back�ed securities of the Gwerrnment National N�rtgage Association (C�Il�
Certificates) in on�ex to finance the City's Single Family Hausing Program.
The G� ce.rtificat.es will act as the credit enhar�ex and give the bonds a
AAA rating.
The F�h,ase V program will be s�milar to the cuYrent I�h�ase IV Single Family
Housing Program arid will also be car�sistent with Federal ar�d State laws as
applicable. The pzrogram will be limited to individuals ar�d families who are
fi.rst time hoat�e ]�zyers or peaple doing substantial rehabilitation. In
additfon there will be maxim�nn iriocene and purchase price requir�ments. The
maxim�nn inccame limit will be approximately $42,460.00. �e maxiimam p�zrchase
price will be approximately $115,200.00 for new c�onstruction ar�d
approximately $93,510.00 for existing residents.
Ken Johnson
David Sprangers
. �����
. ,S
r
SIIBMLSSION TO
MINNESOTA HOIISING FINANCE AGENCY
BY
MINNEAPOLLS/SAINT PAIIL HOIISING FINANCE B�OARD
CITY OF MINNEAPOLIS
AND
THB HOIISING AND REDEYBLOPMENT AIITHORITY
OP THE CITY OF SAINT PAIIL, MINNESOTA
.
198?-88
SINGLE FAMILY AOIISING PftOGRAM
September , 1987
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TABLE OF CONTENTS �
1. City of Saint Paul
Amended 462C Housing Plan
(A copy is on file with the ?VIHFA)
2. City of Minneapolis
Amended 462C Housing Plan .
(A copy is on file with the MHFA)
3. Comments of Metropolitan Council
(No comments received)
4. General Certification (�hibit B)
Attachments
1. Maturity Schedule
2. Preliminary Opinion of Bond Counsel
5. Single Family Certification (Exhibit C)
Attachments
1. Resolutions of the Saint Paul City Couneil and HRA Adopting
Program
2. ftesolutions of the Minneapolis City Council Adopting Program
6. Program Certification (E�chibit A)
7. Program .
8. Affidavits of Publication — Housi�g Plan
9. Affidavits of Publication — Housing Program
. G��7��
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10. Preliminary and Final Resolutions Relating to Housing Pcogram
(See Section4, Attachments)
11. Resolution Authorizing Officials to Execute Certifications and �bmit
Application
(See Section 4, Attachments)
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' _ e�rzrzc�rior
� *iinneaoolis/Saint Paul Housing Finance Board
City of Minneapolis
� Housing and Redevelopment Authority of the City of
1. �ar e! y}liasnt:
Sa nt au
2. i! 1}}liwnt is otL�e tbaa a :tstutoc�r oe hor cvl� et�set�e eitr.
pee�yd� a eo�� ot t� :tstut• oe ocdinine• vRieh suthoris�s Ap}li-
� eas� �.e �,ssw ew�esu� boe�ds ta tinsne� lsousit� pco���s. ar�d •tst• �
tb� dat� wsA at�wt� oe ordinane• vsa sde*t�d.
� (Please see attached pa�e 11-A)
� 3. 11o�aiai llsa:
(a) Oat� aa` loestioa o[ publie haaeiaf;
� MCDA: July 9, 1984; City Hall, '�inneapolis
STPHRA: March 29, 1983; Council Chambers, St. Paul City �;all
(b) at� and plae� o! publiestion oC noti�• o! publia h�aeitu;
MCDA: June 8, 1984, Finance and Commerce
� STPHRA: Feb. 26, 1983: St. Paul Pioneer ?ress/Disoatch and St. Paul Legal
� (e) Oat� ot adoptioet of Hausie►f Plsts by Aptl3esttt•s =OV�e�ili� /Ledger
bod�;
� MCDA: July 13, 1984 (copy in file with `R?FA)
STPHRA: March 29, 1983 (copy of adoptir_ resolution is on file with the `�1
(d) Dat• ot subaission o! Kousin= �lsn co spplieabl• tKioe�al
Dnr�lopMat Comai=sioa or M�tropoli:sa Cou�eil; �Attaea s
�� GO*� 0� tAOS� C0�lLtf. �
MCDA: July 23, 1984 (copy on file with `1Y.FA)
� STPHRA: March 1, 1983 (copy of conunents is on file with �4iFA)
(�) il th� eo�nts o! ch� R��ioeul O�v�lop+s�nt Coa�aissioa oe
!l�ttopelitsn Couneil wc� untavo�abl• o� eontsia�d su==�s-
. tions foe arnditu tA� pian. a.seri0�: N�A
� (i) a�ndrnts to th� lsa sdaptsd by App li�ant ia es-
• p
�}ve��.
� .
N � coe) .
(ii) e�aaeeis vhy �+aA a�as�nts wt� d�rrd unadvisa0l�.
�
� a, st,�tiwrid� Kousit� loliei�s:
(a) td�atit� Msieh :tatwrid• hauis� peliaiu se� �a��nd�0 to b�
� , fuetlNS�t b� this peotras•
'� I�4IFA Procedural Guide, Part 1.A. (3) policies (a) , (b) , (c), (d) ,
(h) . (�), (k), (1), and (m)
� !/2i/�! -11• 0107t
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�. ii-� �o �it B
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St. Paul - Mirusesota Statutes, Chapter 462C (the "Aet") provides that
the City of 3� Paul (the "City"), and any public body which is a
� housing and redevelopment authority, it authorized by an
ocdinanee adopted by the City, may issue and sell revenue
bonds to finanee housing programs. Chapter 72 of the
� . Administrative Code of the City of St. Paul provides that, with
approval of the City Couneil, the mayor of the City may
employ the services oi the HRA for purpo�es ot aiding the
� implementation of the City's housing finance pcograms. A
copy of Chepter 72 of the Administrative Code for the City of
St. Paul is on file with the Minnesota Housing Finance Agency.
' . Minnesota 3tatutes, Chapter 462C provides that the City of
Minneapolis may i�aue and sell revenue bonds to fina�e
housing pcograms. The City of Minneapolis by Minneapolis
� Code of Ordinances Title 16, Chapter 4Z2 has eeserved to
itseli the powers granted by :Viinnesota Statutes, Chapter 462C. �
� Joint Boerd - Minnesota Statutes, Section 462 C.12 ratif ies the establishment
of the Minneapolis/Saint Paul Housing Finance Hoard and
authorizes the issuance of Bonds pursuant to Chapter 482C.
f
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�ti) Ls t� stat� b�ildi� eod� s*}tieabl• co housin= eoastruet�d
riRtLt y�LiasAt's j�=isdietiowt ctt �oc. sce.seh eo*r oi sii
�� �,,hiqs �r� s�liesbl• to hvusi� to b� eo�-
` �e t�habll3tat�t ue�d�e this pee�ras. ) Yss=
� (a) O�seriD� leoe�duca pou iatasd to ia�l�rat to snsur� thst
�,p� �� to D� eoast=vet�d oe rslLbilitst�d ue��e this
' l�i�%
�i) ae�lia vith tA� star.� Ouildi� eo4� s�.sndar'ds;
� Comvliance assured by St. Paul Division of eiousinq and BuildinR Codes; reauired perr.iits
and inspections; and by *�inneapolis reauired oernits and inspections.
(ii) �rill b� avsilabls to sll sli=ibl� p�rsons vitt�out ia-
� pe�isaitil• diseriainatioa;
City of St. Paul ordinance prohibits iiapermissible discrimination: St. paul Human
Rights Dept. monitors; and in !°tinneapolis, imperrsissible discrimination is vrohibited b�
(iii) vill b� eatutrvet�d oe �slss�iliest�d o�l� ti! eoa�-
' traetoes vhe peovid� Kual oppotwaitr �o� �lop�re►t
vitho�t is��tsissibi� disaeiaiaation:
� Same as (ii) above
(iv) �+ill not rssult in eh� dis9lae�nt o! LoM-�asar ��s-
�a�ts vielyoue pco�isioa for sdKuae• rsioeat�os sa-
� s�stanes:
There is no disnlacement of occur.�nts.
� (v) v111 b� �A lutt2�e�e� ot tho�� •eicMrid� tsowitu �ol-
ieiu sp�eil��d ia �ts) .
Projects will be reviewed by the a�oropriate City prior to loan annroval� ?tCDA, �'
' STPHRA, and the Cities will monitor for comoliance.
S. tond tssuaaes:
, Z'!s� �ollowiai intot�atioes should b� peov�d�d Lo th� =tsaCast a�-
�rN at seevrsa� posaibl� at tt� tiia� o� sub�issioa o! �his Aplli-
eatioa. ls3�oe vseiatioas b�t�r�n peo f�et� Ei=ue�s snd tKos�
, sattiallr obtsia�! at Chl� Lir ot issuaae• vill aot b� d�rrd �-
t�s'ial.
, . (a) S�t�al vslw o� boesd issuaae�: .
583,210,220
, (b) Oir�et eosts ot �ssuane• (iross �e�M) : Provid� i,ntoe�tiea
b�lor ia S(e) snd S(b) vRials �s sf}liesb 1� to rour lte�ea�•
T� wst aawr� ot eM tra �e�t eests ot bo�d isswns� v�ll
� dpa�d upoa ct� a•wr� o! eh� seranf�rncs rou � to tiae.
ss�t s�t�Ka� rour boaas.
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� ��Z��� �N� � O�O�
. � ���- .��
- (1) F�ss to b� ineludad ia 1.A(�) . (S�� ps�• �) �
(i) Manat�mant f��: S40o,o00
(ii) Tak� doan (Ssl�s Coeamission) ;
$1,20�,000
(iii) �T�t to undac++t"it��s;
. Sso,000
(iv) Sp�cial tsx couns�l fa�;
-o-
(v) Undat�+ritsr's couns�l f��;
S40,�00
(vi) Blu� sicp eounsal fe�;
55,000
(vii) Priatin: eosts (oE officiil stat�msnts and
undsc�+ritin; docum�nts) ;
S22,o00 '
(viii) Computer sevicss;
-o-
(ix) Advartisiaa;
_ -o-
(x) Clascanea fea;
$8,000
(xi) Trav�l snd othar •xp�ns�s of unde�+riters:
(xii) Clssr=ss tor F�dstal Ras�rvs Bsnk funds;
-0-
(xiii) Ssti� s=sncr f��s;
525,000
(xiv) Sianaturs compsny fe�:
-0-
(2) Othsr f ass.
(i) Applicst►t's financisl advisoc fea;
$20,0�0
9/26/8S -13- 01078
(�f-�,��
. (ii) Cost of p�intin= bonds;
_ S$,000 .
� �iii) Hond Couns�l f�a;
$60,000
(iv) �th�r eharfss (pl�sss sp�aify) ;
?�iFA Aonlication Fee 51,000
Issuers Fee 530,000
Total:
(e) Cost of aiaintaininf boeds:
� (i) 8ond trust��s' fss; �
$fi4,000 ver year during origination �eriod
564,000 per year thereafter
(ii) Audits;
57,500
(iii) Sslac�r to axistin; city p�csonr�el attributabls to
boad msintansncs work (includin� sup�rvision of out-
sid� contraetors) ;
' -0-
(iv) Sslary of sdditionil city psrsoc�al add�d to insintaia
bonds; �
-0-
. � (v) Oth�r costs;
Totsl: $135,000
6. Indicata if th� pcopos�d bond issus is:
(s) Public off�rins x
(b) Privsis plaa�nt
7. Admiaistrstiv� Costs of Pro�ram:
Provid� th� infocmation balov wbich is applicsbla to your ProEram.
?h� nstur� of th� f�as and costs of administrstion will dspsnd upoa
th� natur� of ths dalivsry syst�m dsrivsd for your Prosr�.
9/26/SS -14- 0107�
� (�''�- k�7 ��
(a) Stsrt-up Casts: ,
(i) Losn ori=irtation Ls�: 1 1/2 '; (estimated maximum)
(ii) Loan r�viw f��: -�-
(ii3) Cot�mitm�nt fa�; 51,6�0,00� (estimated) from ori�inators
(with resnect to financing existing
housing) and from develo�ers (with respect to financing new housinR) .
(iv) Salsr�r oi p�rsonn�l oE Applicsnt (�xcludins PtoEr�s .
Administrstoc) sttcibutsbl� to placin= th� loans;
-o-
(v) x�imbucs�msat to issu�c foc sdministcativ� costs oE
loaa placam�nt; _p_
(vi) Cost oE housic� plan pr�paration (if chara:d to bond
proc��ds) ; -o-
.
(vii) Othsr tplasss spacify) ;
-o- �
Totil:
. tt _ _
(b) Onaoi� sdministrativs costs:
(i) StNiCit1= ft�; Not in excess of 0.44% annually, based on unnaid
loan balances.
(ii) 'Trust�� and psyin� isent Ea�;
$80,000 per year for first two vears
$64,000 ner year thereafter
(lli) Insura�ct pt'�alumi; Estimated .06% for �*1*�A �uaranty Fee; or
estimated .3�% for nool and special hazard insurance nolicies,
payable annually on outstandinf� mort�age balances.
(iv) Salac�r of Applicaat•s psrsonnal (othar thsn Pro;ram
Administrstor) sttcibutsbl• to onaoina adiainiaLrativa
costs:
-0-
(v) Oth�r (pluss sp�cify) ;
AIOAe _
TOtil:
9/26/SS -15- 010�8
` (c) Salarp of Proaram Ad:cinistratoc (Z: caor� thaa or►s Prosram is
, sdminist�c�d. amount attcibutabl� to this P:rotram. ) :� /,r�l��
�- l v
-0- (included in Servicing Fee)
.' g, y�t a,ewunt_ot bond pcoc��ds vhich will b� availsbl• Eor moct=a6e
loans. aottistcvetion, or r�habilitation (�xeludia= all faas) .
Anproximately $80,000,000
9. Provid� infocrostion suEEiai�nt to sstsblish ttsst th� int�cs:t oe
tb� bonds vill b� sx�mpt fcos E�dsral incomt t�t. oc in tha alter-
nstiv�. stts�h a prsliainary opinior of bond counssl to t2ut sf-
f�et.
Preliminary Bond Opinion attached.
9/Z6/SS -16- OlO�it
\
. V ���/�
E
. th� undacsian�d. h�c�br
ststas that- h�/sR� is Lh� of th� Appli-
csnt. is authotis�d to ax�cuts this docum�nt oa bshslf of tAa Appli-
cs�t (s capy o� whieb suthorizstion is sttsch�d hsrsto) . and i.hat th•
in�or�stion s�t Eoc�th ia this G�n�csl Csctif ieatio� is tcus. correet.
snd co�l�t�.
Subscrib�d sud saoc'a to b�foc� ms.
� this _. day ot , 19S
gotsr� Publie County� Minn�sots
M� Coe�ission sxpiras
.
9/26/SS -17- 01078
. �� ,�
HoL.v�s & GRAVE1v
CHARTERED
— 4'A Pillsbury Cmmr. Minneapolis. Minnesota S�s02
September _, 1987
Mr. James J. Solem
Executive Director
�Viinnesota Housing Finance Agency
400 Sibley Street, �ite 300
St. Paul, Minnesota 55101
Re: Minneapolis/Seint Paul 1987-88 Single Family Housing Bonds
'1l�is opinion is given as the opinion required by F�chibit B, Item 9, of the submission
made to you by the above issuers with respect to the above-referenced proposed
financing. We have examined the Housino Plans of the City of Minneapolis and the
City of Saint Paul and the program for this financing including the exhibit attached
thereto. Based on that review and assumina that the bond documents contain the
restrictions imposed by Federal and State of ?4linnesota laws, we are of the opinion
that th� Bonds, if and when issued, will bear interest not includable in gross income
for the purposes of federal income taxation, other than viinnesota corporate and
bank excise taxes measured by income. Interest on the Bonds will be ineludable in
the determination of federal alternative tax for certain corporations and
individuals and for purposes of a federal foreign branch profits tax and
environmental tax.
Yours very truly,
HOLMES ac GRAVEN, CHARTERED
Christine M. Chale .
CMC:mj
. �. �aci_ ����
SItiCLE FAKSLY_ CL�TIlZCII'TZOr
City of Minneanolis and City of Saint Paul
1. ITa�M ot Appliesnt: rlinneanolis/Saint Paul Housing Finance Board
2. Dat� snd plse• oE public t��arin= on tlu prosr�.
3. Dat� and plae� oE publieation of ,notiaa of public h�arins.
�. Dats o� sdoption o� th� pro�ras by LLpplicsnt's aovarains body.
� S. Dssarib� how �pplicant �+ill snsur� that no sia=1• ltadar will r�-
caiv� mor� tbst� 7SZ of th� pcoc��ds of s bond issus. snd if s sin-
als l�nd�r rill r�caiv� mon than 7S� of such pcocesds� ststa th�
justifiCStioti foC this d�Cision. Issuer will approve all committments.
No single lender will receive more than 75% of committeed funds.
6. Zncom� limits. if snr� Eor pcoEram psrticipsnts.
See Attachment 6A.
7. Zf tt►� iacoms li.mit statsd in � is 5reatsr thsn ths l4t�'A incom�a `
limit, stats th� msdisn family incoms ia your co�mtr or Stsndsrd
�istropolitaa Statisticsl Arss (as astimst�d br HUD) .
$38,600 �
S. If th� pro;r�e pcovidas� Eoc 20� of ths loans to b� allocst�d vith-
� out rsasrd �ta ineom� liaaits, chsck th� sppropriate sxcsption:
(Sp�c if y
which ona)
(a) Tarast�d acss: X
(b) Econamic intsfrstion:
9. I!` axcsptioa 6<b) is checksd, stat• tha dat�, plac�, and amount
committad to ths most r�esat housir� Pcosram Eoc low and modarat•
incoms p�rsons d�v�lop�d ind adsinist�rad br Applieu�t. N/A
9/Z6/3S -18- 01078
. `����. ,�--
Attachment 6A
Tlie adjusted gross income of a mortgaoor at the time of application for a
mortgage loan may not exceed the greater of:
(1) 110 percent of the median family income as estimated by the United
States Department of Housing and Urban Development for the
Minneaoolis-St. Paul Standard 'Vletropolitan Statistical Area; or
(ii) 100 pereent of the income limit established by the Minnesota housing
Fiannce Agency for the city.
. (iii) Provided that, beginning six (6) months after the Commencement
Date, up to twenty percent (20°�6) of the amount of bond proceeds
deposited in the Acquisition �nd may be used to purchase ':Viortgage
Loans made to 'Vlortgagors with Adjusted Gross income in excess of
the amount set forth above who are purchasing Housing Units located
within a Target Area.
Currently the highest of the two figures is 11096 of the median family
ineome established by the United States Department of Housign and Urban
Development. The current median income figure used by HUD for the Minneapolis-
Saint Paul SMSA is $35,100; 11096 of such figure is $38,610 (the current MHFA
limit is $35,000 new construction and $32,000 for existing homes). HUD and the
Minnesota Housing Finance Agency periodically change these figures, and
consequently the income limit of the program may be revised accordingly.
For the first six (6) months after the commencment �ate, 1009�6 of the funds
provided for the purchase of Mortroage Loans may be made or committed only to
il�ortgagors with Adjusted Gross Ineomes at the time of a�nlication of less than
eightly percent (80:+6) of 1109�6 of the eurrent HUD median family income, or
$30,888.
. • (��'/ ��
, /.57
� 10. s. Msxiaum p�tmitted purchss� prie� of homas. *
b. Maximum p�nuitt�d r�habilitation lotti. same
Not h3gher than the lower of (1) three times the program income limit
(four times the program limit in tar�et areas) ; or (2) the federal safe
i harbor limits for acquisition cost (currently $128,000 for new .
construction and $103,900 for existing homes) .
11. Daserib� how Applicsat vill snsurt that no sinals d�v�lopae or
buildar (or custoascs Lh�r�oE) will r�c�ivs �aor• than '7SL oE th�
losns svsilabl� und�r lh� Pro�rss.
See Attach�Qnt 11A.
12. Otserib� hov Appliesnt will �nsura thst no loan avsilabls und��
this pco�ra� vill Einanc• th� acquisition of housir►= loest�d ia
aa� pr�viously unincoc4orst�d r�al pcop�rty arinax�d by a city
vithia �on� yssr prioc to th� rssolution suthorizina th� sal• oE
th� obli=stioets ussd to finaaa• this pcotram.
There was no unincorporated land annexed by the Citv in the year nrior �
to adoption of the resplution authorizing the sale of the obligations
to be used to finance this prog,ram.
13. Bstimst�d �ntar�st csts to ba chara�d on moet�iss loans Einsnc�+d
by this Ptofram.
8.50%
1�. Lstimstad losn o�iainatioa f��s.
Existir� (t) 1.5% �
Nw consttvetioa (x) 1.5%
15. OLhsr f�ss and char=�s to b� psid by bocrowecs of losns financad
by this Proftam. (Diseouat points. pc�paid interast. borrowar
psrticipation fs�s)
The mortgagor will be required to obtain and pay for FHA insurance,
private mortgage insurance or VA guaranty.
9�zsias -i9- oio�s
, � � ��7�
��
ATTACHMENT 11A
The moctgage loan origination agreements will provide that no more than
759�6 of the moneys available for mortgage loans may be used to acquire mortgage
loans on newly eonstructed residences built by any one builder. Prior to making a
mortgage loan, an originator must submit to the Program Administrator all eredit
information and most other information necessary to determine whether the loan
meets the requirements of the Program. Tt�e Program Administrator will review
such information and documents and inform the trustee whether it may purchase
the loan. Included in the review will be a determination that the loan will not
cause any one builder to receive more than the above speeified limit.
` ' c o ��7 `��
vE�
_ � th� und�rii=n�d� hac�by esr-
tif iss that h�/sh� is ths . oE Applicant.
is sutbocis�d to �x�cuti• this docum�et on b�hslf of Applicant (a copy
o� which suthocization is sttseb�d h�r�to) . and thst th� infonoatio�
s�t foet� in tbis Siaal• l�smilr Cartificstio� is trus. corr�ct. znd
cotplst�. '
� Sbbserib�d ae�d s+iora to bitor� ms.
� this _ dap o! . 198_.
HotsrT Publie . Count�. Minn�sots
�!� Cammissio� axpiras
.
9/26/aS -20- 01078
� � � � ����
. os��
' ���
. Ig��ene�rtn�c �oe CO!lPLEZZ�TG E�{IDI? t
Pl�ss� co�pl�t� sn txhibit 8 foc �ach pco�rm th�t �hs applicsrt ia-
t�ds to finsnes with sa alloastion of quslifi�d mort�sa• boads•
9/26/aS -25- 0107�
� o
- � . �'l-�'��
�� .
� _ �re�rTtTri�Tnr re� A� ALLOCA?IOY O1� •
ntr�t_t�T�rg R'tGACE 801tDS
City of ?�iinneapolis and City of Saint Paul/
lTams oE AppliCitit: riinneaoolis/Saint Paul Housin� Finance Board
ptO�rif tliot o� �dsAtif iCitiOA: 1987-88 Single Familv Housing Progran
Applieant hss d�t�rmia�d tbaL th� ptopos�d pro�raa is fusibl� snd
� csrtif i�s tt�at:
1. Th� bond issu� inelud�d in th� pro;cao is f�ssibl�•
2. Th� total principal amount oE bonds to b� issu�d und�r tha
P�i=� is t 83,310,220
3. ?h� totsl amount ot bonds to b� issu�d suid�r all pcotrams
submitt�d br sppticsnt pursusttit to Mina. Stat.S �62C.09
subd. Zs for approvsl in 19a_ is t ��A (entitlement) -
►
�, rhs peroportion o! th� proes�ds of th� bor►ds to b� issuad
und�� th� pro6raa rrhieh vill b� cessrvad for us• by p�rsons
aad Eamiliss rith adjust�d aross incamss b�lo�+ 80'� o! th� ,
limits on zdjustsd aross incomss providad in Minn. Stit.
S 462C.03 subd. 2 Eoc s pariod oE not lsss than six (6)
motfths if N/A (entitlement)
S. Ths pcoportion oE th� pcocs�ds oE th� boads to b� issusd
und�r th� pcosram which will b• c�s�rv�d to Einanc� hoa�as
thst ar� sscvicad by municipal Wstac and s�w�r utilities
is N/A (entitlement)
6. Applicint is (ch�cic oa� or mora oE applicsbl• boxes) :
/-�% A city of th� first alass.
/.,_/ A eit� thst did not rse�iv� an allocation of bond-
ir►f suthoritr undar liinn. Stst � 462C.09 subd. 2
durin= tha pr�csdin= tvo ysars.
/_ A aroup oE citi�s tl�st plan to jointly issus bonds
for ths pto=ra�a• �
/ Non� of ths sbovt.
9/26/SS -26- 01075
` � � �-�> i5��
- �s�zc�►rsor � �
• � , ths und�rsiansd.
oti Lh�
day ot . 198,__� do�s hac�by
stat• k�at h�/sh� is th� of
th� �pplieattt. is suthociz�d to �x�eut• this documsnt on b�hslf ot tha
�ppliesat (i copr of ahich suthorizstion is attscb�d h�r�to) . and that
tb� iatonestion s�t foc�h �n this G�n�cil Cartificstion is tru�. coc-
t�et sad aoepl�t�.
Subsar�b�d snd sv�orn to bslo�a �os,
this _._ dsy of , 198 .
Nottr� Public
9/26/SS -2�- OlO�i
� � �� ���
• /S7d
� HOLMES & G1iavEN
CHARTERED
Attornrys u L�w _ 47U Pilisbury Center,Minneapolis,Minnesota 55402
(612)337-9300 )OHN C. UTLEY
AALIN B. WAELTI
1EFFItEY R. BRAUCHLE �i��6��337-9310 (,ARRY M. WETCfFIE1M
ROBERT C.CARLSON
RoBErtT L. D�viDSOn� T��a��612�337-9311
ROBERT 1. DEIKE ROBERT A• A1.50P
STEFn!�IE N.GALEY MARY 7• BRENDE�
DAVID L. GRAVE� CHRISTINE M. CHALE
REti'tiAUD L. H�RP �y��•S DIRECI'DIAL M�RY G. DOBBI�S
JAMES 5. HOLMFS ]OHN R.GREEti
JOH�R. LARSUN STEVEN T. HETLAtiD
)OHN M. LEFEVRE.1R DUANE G.)ONNSOld
ROBERT 1. LIND�4LL LAURA K. MOLLET
MARK A. UNDGRE!� �sl?) 337-9210 BONME L.WILK[NS
DANIEL R.NEISON
B�RBAR�L.PORiWO��
PROGRAM CEftTIFICATION
September , 1987
Minnesota Housing Finance Agency
�ite 300
400 Sibley Street •
Saint Paul, Minnesota 55101
Re: Minneapolis/Saint Paul 1987-88 Single Family Housing Program
Dear Sir/'Viadam:
The undersigned does hereby certify to the Minnesota Housina; Finance Agency as
follows:
1, 'Ihat she is bond counsel for the above-referenced program.
Z. 'Illat she is familiar with the entire eontents of the above-referenced
progcam.
3. 'I�at the above-referenced program contains and sets forth the
information required by Minn. Stat. �462C.03, subd. 1a•
4, 'li�at, if implemented a.s deseribed in the above�eferenced program,
such program will not subject the interest on future bonds of the
'_Viinnesota Housing Finance Agency to federal income tax under any
limitations imposed at the time by federal law.
. 5. 'Itiat the above-referenced prograrn complies with all of the
requirements contained in Minn. Stat. �462C.01 through 462C.08.
Very truly yours, -
Christine M. Chale .
` . G��� ��
.. /S��
MINNEAPOLiS/SAII�iT PAIIL
1987-88 SIIdGLE FAMILY JOINT BOND PROGRAM
The City of Minneapolis, R'Iinnesota ("�Viinneapolis") and the ti'Iinneapolis
Community Development Agency (the "MCDA"), and the City of Saint Paul,
Minnesota ("Saint Paul") and the Housing and Redevelopment Authorit,y of the City
of Saint Paul, Minnesota (the "HRATM), acting individually or jointly through the
Minneapolisl�int Paul Housing Finance Board (the "Joint Board"), propose to issue
revenue bonds or mortgage credit certificates to finance the single family housing
program described herein (the "Program") pursuant to authority conferred by
Minnesota Statutes, Chapter 462C, as amended (the "Act").
� In creatine this housing finance program, Minneapoiis and Saint Paul have
found and determined that the preservation of the quality of life in the Cities of
Minneapolis and Saint Paul (the "Cities") is dependent upon the maintenance and
provision of adequate, decent, safe and sanitary housing stock; that accomplishing
the provision of such housing stock is a Qublic purpose and will benefit-the residents
of the Cities; that a need exists within the Cities to provide in a timely fashion .
additional affordable housing to be sold to persons of low and moderate income
residing and expected to reside in the Cities; and that a need exists for mortgage
credit to be made available for both existing single family housing and for the
construction of additional single family housing and for rehabilitation of existing
single family housing and for home improvements.
Pursuant to the Act, the Cities intend to issue or to authorize the Joint
Board or the HRA or M�DA to issue single family mortga�e revenue �nmake or
aggregate principal amount not exceeding $ _
purchase mortgage loans (or securities representing pooLs of such loans) to finance
the acquisition of single family housing subject to the following terms:
�c,�hase�rice� - the maximum purchase price for finaneed homes
shall not exceed the lesser of 90% of the ge P Ttment of thee'It�easury cors3
price" determined by the United States D pa
times the applicable income limit for the program imposed by state law
(except that in targeted areas purchase price shall not exceed the malcimum
4 times the applicable income limit);
income limits - the maximum income limits shall be the lesser of the
income restrictions imposed by federal tax law, if applicable, and the
income restrictions imposed by Minnesota Statutes, Section 462C.03, �bd.
3, including the restriction that fo� the first six months of the program 5096
of the money available to make mortgage loans must be reserved for persons
and families with adjusted incomes not greater than 90�6 of the general
income limits; .
No more than 2096 of the loans may be made to other persons and
families.
In connection with this single family mortgage revenue bond program:
(f) any financial institutions described in Section 462C.03, Subd.
4, and other mortgage lenders with offices located in the Cities and which
are FHA/VA approved sellers of mortgage loans as well as other financisl
1
��l
C����Sy�
,
institutions and mortgage lenders which are FHA/VA, or FN!VIA/FHLMC
approved sellers o�f mortgage loans, will be eligible for consideration for
origination of sueh loans; the Cities will not limit participation in the
program to a single lender unless other lenders are not willing to partieipate
for the consideration offered;
(ii) loans will not be made to one developer or builder or
restricted to housing provided by one developer or builder;
(iii) the Cities expects to act as or to contract with a prog►ram
� administrator to insure that the program will be consistent with the Cities'
Housing Plans, this program and the applicable state and federal law;
(iv) the following portions of the State volume cap may be used in
the program:
— $13,687,000 of the 198? entittement allocation for
MinneaQolis; •
— $10,123,220 of the 1987 entitlement allocation for Saint Paul;
— �20,000,000 of the 1988 entltement allocation to '_Viinneapolis; �
— a15,000,000 of the 1988 entitlement allocation to Saint Paul
available carryover authority;
(v) the program will meet the needs of low and moderate income
families by providing below-market rate financing for the acquisition or
� rehabilitation of single family homes, thereby enablin, such persons to
qualify for mortgages which would be unavailable at market rates;
(vi) the Authority hereby cequests a waiver by the Minnesota
Housinp Finance Agency of the provisions of Section 462C.03, �bd. 5;
(vii) no homes which are located in previously unincorporated real
property annexed by any city in the County within one year prior to the date
of adoption of this program will be finaneed under this program;
(viii) prohibitions or limitations on Cities assumption will be
imposed to the extent required by federal law relating to the tax exempt
status of bonds issued to finance the program.
:�
fteceived at the 'Vietropolitan Council on this day of , .
1987.
'I�tle:
2