85-330 WHITE - CITV CLERK
PINK + FINANCE GITY OF SAINT PAUL Council
CMNARV - DEPARTMENT
BLUE. '- MAVOR File NO. �-� ���
` � - Cou c l Resolution
Presented By
Refer To Committee: Date
Out of Committee By Date
RESOLUTION APPftOVING
HOUSING POLICY REPORT
UNDEft SECTION 103A
WHEREAS:
(A) Section 103A(��(5) of the Internal Revenue Code of 1954, as amended,
requires that a governmental unit which intends to issue qualified mortgage bonds,
or undertake a mortgage credit certificate program, publishes a report by the last
day of the year preceding the year in which such qualified mortgage bonds (or mortgage
credit certificates) are issued and further requires that such report be submitted
to the Secretary of the United States Department of the Treasury on or before such
last day;
(B) The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota (the "AftA") intends to undertake either to issue qualified mortgage bonds
under Section 103A of the Internal Revenue Code, or mortgage credit certificates
in lieu thereof, during calendar year 1985;
(C) On December 27, 1984, the City Council of the City of Saint Paul, Minnesota,
approved the 1984 Policy Statement for Housing following a public hearing;
(D) On December 12, 1984, the United States Department of the Treasury
issued temporary regulations relating to mortgage subsidy bonds under Section 103A
of the Internal ftevenue Code of 1954, as amended, including the requirements related
to the Policy Report Under Section 103A;
(E) - The Policy Report Under Section 103A has been revised pursuant to the
Treasury regulations;
�F) A public hearing has been scheduled before the City Council of the City
of Saint Paul, Minnesota, on the 5th day of March, 1985, following reasonable public
notice thereof published in a newspaper of general circulation within the City of
Saint Paul; and
COUNCILMEIV Requeste by De partment of:
Yeas �� Nays � f�
Drew In Favor �J
Masanz ��� .
Nicosia .C%�%C�C�rq,,1.
schelbel __ Against BY
Tedesco
Wilson
Sonnen Form Appr City Attorn
Adopted by Counci!: Date r ,
`,<�/
Certified Passed by Council Secretary BY �
By c
A►pproved by Nlavor: Date _ App ov y Mayor for Sub ' on to Council
By
WHITE - C�TV CLERK
PINK s- FINANCE GITY OF SAINT PAUL Council
'CANARV - DEPARTMENT ,��[J
BLU� �- MAVOR File NO. y( ���
�
� Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
(G) At the time and place fixed for the public hearing, the Council has given
all persons who appeared at the hearing an opportunity to express their views with
respect to the Policy Report Under Section 103A;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul,
Minnesota, as follows:
1. The Policy Report Under Section 103A of the City of Saint Paul, Minnesota
is hereby approved.
2. The Director of the Department of Planning and Economic Development
is hereby authorized and directed to submit a copy of the Policy Report Under Section
103A, as well as a summary of testimony presented at the public hearing, to the Secretary
of the United States Department of the Treasury on or before March il, 1985,
3. The Direetor of the Department of Planning and Economic Development
is hereby further authorized and directed to make copies of the Policy Report Under
Section 103A freely available to the public upon request.
Yeas COUfVCILME Na s Requested by Department of:
'r..r '' ��
Drew [n Favor
Masanz
Nicosia ��
scheibei � __ Against BY '�� ' �
Tedesco
�Ad1s�a.,
Sonnen MAR 5 — �g85 Form Approved by City Attor y
Adopted by Co cil: Date
Certified Pass ouncil Sec ry BY
By
� �R ^ �JAppr y Mayor Eor Submission Co cil �
t#pproved b iNavor. '� I —
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By B
Pu$usH�� r,1AR 16 1985
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G � DATE 1 ��� '
(Routi ng and Expl anatil Sheet) R�EY
_ Ass i,gr�Number for Routi ng Order (Cl i p Al l Locati ons for Ma�yyoral Si Qnature):
Department Di rector . .
Ci ty Attorney
� Di rector of Management/Ma�yor
Fi nance and Management Servi ces Di rector
� City Clerk
B Di rector .
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i�ha� Will be Achieved b Takin Action on the Attached Materials? Pu se Rationale :
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Financial , Budgetary and Personnel In�acts Anticipated: ���, �r�"'�►�
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Funding Source and Fund Activity Number �harged ar Credited:
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Attachments (List and N�nber all Attact�ents): FEB2 8 �985
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DEPART NT REVIEW CITY ATTORNEY REYIEW
Yes No Council Resolution Required? Resolution Required? x Yes No
Yes r/No Insurance Required? Insurance Sufficient? � Yes No
Yes No Tnsurance Attached?
Revision of October, 1982
f SPa RPVPI"CP Sici� for �Instructions)
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�' : . CIT�' O�+' SAINT JP..A.UL -
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�` � '� '�� OI`F'ZCE OF THF CITY COUNCIL
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COfY1f�1fT i � E R � POP. T
TO = Sain3 PQUt Ci�`�+ Cac��cit
�� � � ' Cfl�7t�'rlii�'�� Q�-I City Development & Transportation
C�-fl�1R William Wilson
Item No. 2. Energy Park Zoning .
Committee recommended approval .
Item No. 4. Housing Policy Statement. �
Committee r.ecommended approval
Item No. 5. Resolution directing the License Divisior� to use an Interde- �
partmental Checklist to track communications between departments
concerning license applications and settirrg out the proposed form
_ _ of the checklist and procedures for implementation.
-� Committee recommended approval with amendments according to
the enclosure.
CITY HALL SEVENTH FLOOR S:�I�T PAUL, ti4t�NESOTA SStO'_
�
, . . C`,F-��--���
Y
S
POLICY REPORT UNDER SECTION 103A
THE CITY OF S�INT P AUL, 'VIINNESOTA
AVD
THE HOUSING AND REDEVELOPti4ENT �LTHORITY
OF THE CITY OF. SAINT P AUL, MINNESOTA
(TIN: 41-6005521)
� SLBA'IITTED VI ARCH 1985
REPORT DATE: SEPTEVIBER 30, 1984
• ~ • . ��,��_ s/ "`
%J
�
POLICY REPORT UNDEft
� SECTION 103A
CONTENTS
, Pa�e
I. INTRODUCTION 1
II. STATE'.VIENT OF POLICIES 3
A. Low Income Housing Assistance Policies and Goals
B. Housing Policies and Goals
C. Development Policies and Goals
III. ASSESS?�ZENT OF COn�PLIANCE WITH AGENCY POLICIES AND
CONGRESSIONAL INTENT 12
A. OVERALL COMPLIANCE 12
1. Limits on Gross L�come
2. Limits on ;Viaximum Purchase Prices
3. Set-Aside of Program Funds
4. Exceptions to Income Limits
5. Limits on Loan :4ssumptions
B. PROGRAM CO'�ZPLIANCE 14
1. Lowertown Housing Program (Market House)
2. Housing Development Program (Enerby Park)
3. Joint Housing Program
� 4. Equity Participation Loan Program (Family
Housing Program — Phase I)
5. Home Owners!�ip 17ortgage Revenue Program
(Family Housing Program — Phase II)
6. Family Assistance Progra:n
C. SU',171�1ARY OBSERV:�TIONS • 30
� POLICY REPORT UNDER SECTION 103A
, . . �,���3.��'
� � THE CITY OF SAINT PAUL, MINNESOTA
AND
THE HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF SAINT PAUL, MINNESOTA
I. INTRODUCTION
Pursuant to the requirements of Section 103 A (j) (5) of the Internal Revenue
Code, the purpose of the 1984 Policy Report Under Section 103A is to identify
the policies which govern the housing, development, and low-income housing
� assistance decisions of the Housing and Redevelopment Authority of the City
of Saint Paul, iVlinnesota (the "Agency") in issuing qualified mortgage bonds
and mortgage credit certificates. The Agency has not issued mortgage credit
certificates in 1984.
The City of Saint Paul has had certain powers conferred upon it and its designated
housing and redevelopment authority by Minnesota Statutes, Chapter 462C (the
. "Act"), in particular, the power to undertake proarams to implement individual
components of the housing plan developed by and for the City pursuant to the
Act and the power to issue revenue bonds to finance such programs.
The City has, by ordinance, designated the Agency, as its housing and redevelopment
authority, to exercise its powers under the Act. Therefore, the Agency acts as
the issuer of mortgage revenue bonds on behalf of the City.
The focus of this report is to relate policies and goals of the Agency with respect
to ownership housing programs. However, the Agency has chosen to inelude
in this report its policies and goals with respect to rental housing, as well.
The Agency's goal to provide housing affordable to the lowest income households
has become increasin�ly difficult to achieve. Development costs for producin�
. new rental units far outrun the ability of low income households to pay. At
the same time, the federal government's reducing its traditional role of providing
. long-term financing assistance for lower income housing has severely limited
the Agency's ability to address low income housing needs in any great numbers.
The Agency must systematically develop new techniques and identify new partners
in the creation and maintenance of decent rental housing affordable to low income
households.
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� ���=.�3 6
This report is composed of the following sections:
Part II. Statement of Policies
Part III. Assessment of Compliance
The date of this report, for purposes of this year and for subsequent reports
in years hereafter, shall be September 30.
Definitions
Given the 1984 S1�ZSA median income of $32,800, the following definitions apply:
Low income. Adjusted annual income of 50'?'0 or less of SMSA median income.
(At or below $16,400).
':Vloderate income. Adjusted annual income of 50.1^0-80% of S:�/ISA median income.
(Between $16,401 and $26,240).
Median income. Adjusted annual income of 100�0 of S'17SA median income. ($32,800). �
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, � . ���,y��
II. STATBMF,I�JT_OF_POI.IGIES
��
The City of Saint Paul and the Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota have established policies and goals which: (a)
set the overall framework to pursue an "all-incomes'' housing strategy; while
(b) specifying the City's and the Agency's intention to individualize its efforts--on
a project-by-project basis-- dependin� on a particular program's or development's
ability to meet various public purpose goals, particularly the goal to provide
housing affordable to low and moderate income households.
Because housing affects every City resident, the Agency's efforts to affect
the production and preservation of the City's housing supply receive considerable
public attention.
The most difficult task for the Agency is to attempt to distribute limited staff,
money and program resources among many (and sometimes competing) housing
needs.
�'Vith respect to City housing needs, the purpose of the Agency is to increase
� housing opportunities for households who are low and moderate inco�ne (less
than 8096 of the metropolitan area median income) �vhile maintaining an adequate
portion of the housing supply that�is attractive, available, and affordable for
middle income households (those households earning between 809� and 12096
of the metro area median income).
The overall policy to provide housing covers many areas: new construction;
rehabilitation; rental; ownership; detached and common-wall units. Implementation
of the Agency's policy demands a sensitivity to the housing marketplace, tempered
by the need to determine the exact nature and extent of public involvement
necessary to make a project viable.
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�
, • � ��'�"-�C'1
Agency decisions on housin� finanee and housing development are often difficult.
Many observers and participants in public sector housing decisions in the City
may occasionally be disappointed. For example:
-- Low and moderate income housin' advocates believe that the City
should be doing more to add new housing units to the market in order
to provide both ownership and rental housin� to households earning
less than 8096 of the metro area median inco*:�e. They perceive
that the Agency has chosen to pursue another route--one which
� emphasizes the production and preservatioa of units for households
who earn more than 80�0 of the metro area median.
-- '�7iddle income housina advocates, on the other hand, find it difficult
to accept the Agency's concentration on providing housing units
affordable to low and moderate income households (those households
earning no more than 80'�6 of the metro a^ea median income). They
perceive that the Agency has forgotten the contribution which higher-
income households make in stabilizing the business environment,
� increasin� the tax base and enhancing the long-run economic via5ility
of individual neighborhoods and of the City as a whole.
14aintaining a balanced effort to produce and maintain housina for an "all-incomes"
market, in an atmosphere of eve�=changing resources and sometimes-conflicting �
needs, requires a constant recognition of the public purpose policies established
for the Ageney.
� A. LOW-INCOn2E HOUSING ASSISTANCE POLICIES AND GOALS
Policies
V1'ith the federal government's reducing its traditional role of providing
long-term financial assistance for lower income housing, the Agency has
been thrust into a position of having to dramatically increase its efforts
to offset, as much as possible, the loss of federal aid. At the same time,
the Agency must systematically develop new techniques and identify new
partners in the creation and maintenance of decent housin� affordable
. to lower income households.
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.
(.��'.��.��
� � • The goal to provide assistance to the lowest income households has become
increasingly difficult to achieve. Development costs for producing new
housing units far outrun the ability of low income households to pay. At
a time when market-rate units are considered a risky venture by private
developers, units which must rent or sell at rates below the market are
simply not attractive investments for developers or lenders. Without public
intervention, the private housin� market would not be able to produce
many new units affordable to low income households.
� Fro*n an investment perspective, housin; investment must compete with
other investment markets for scarce debt capital. If housing cannot yield
� competitive rates of return in comparison to other investment maricets,
the industry will be unable to attract needed ca�ital.
While development costs are rising, funds from traditional resources of
housing aid have been falling. This inverse relationship (rising costs/falling
' aid) creates a gap in housina finance which has crippled the Aaency's ability
to serve low income households in any great numbers. The costs of new
housina production inerease the rents or sales prices which new units must
achieve in order to be economically competitive investments. In turn,
these high costs narrow the �narket of households who can afford newly-
built units. Because federal housing subsidies have been the means of
. bridoing the gap between a lov�� income household's ability to pay and the
competitive market rate of return in capital �tiThich is necessary to attract
private investment dollars,=the federal govern;nent's dramatic reductions
in the provision of housing subsidies reduces the investor's and the developer's
incentive to create new, affordable units and limits the number of households
who are able to receive housing assistance.
Goals
The Agency will continue to expand its efforts to produce housin� affordable
to low and moderate income households through the following efforts:
(a) Increase the existin; number of rental units now on the market.
(b) Improve the quality of substandard rental and ownership units, through
rehabilitation efforts.
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' (c) Emphasize rental housing as a means of addin� units affordable to
' ' low income households. �6-�5--��
c�'"
(d) Expand the low and moderate income ownership housing supply
by creating opportunities to develop cooperative housing.
(e) Emphasize larger units (3 and 4 BRs) in housing production and
preservation for low income families.
(f) Continue ownership programs which impose income restrictions for
eligiblity and which set-asidP funds for low and moderate income
families with children.
(g) Continue the use and the creation of local subordinate financing
tools which, by providing low interest subordinate financing, enhance
the ability of low and moderate income households to afford ownership
housing.
(h) Investioate the administrative and the financial feasibility of using
� mortgage credit certificates as a tool for expanding the ability of
low and moderate income households to afford homeawnership.
(i) Stimulate the development of additional Y�ousing units for minimum-
wage workers.
(j) Expand the technical eaQabilities and the financial capacities of �
non-profit neighborhood housing development companies.
(k) Investigate and act upon opportunities to cooperate with other local,
regional, and national housing finance agencies and credit enhancement
providers to expand the AgencS•'s abilit}� to provide affordable housina
financing.
(1) Support legislation which mandates a return to the federal government's
traditional role of providing assistance for low income housing.
(m) Implement specialized marketing programs to target a portion of
mortgage revenue bond proceeds to low and moderate income households,
especially households headed by single parents or minorities.
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.
. ��-���i�
The policies and goals on low-income housina assistance are related to
housing policies and goals in that the Agency emphasizes low-income housing
production and preservation within an all-incomes housing policy. The
low-income housing assistance policies and goals relate to development
policies and goels in that the maintenance or production of affordable
housing is a key element in development reviews and prioritization.
B. HOUSING POLICIES AND GOALS
Policies
The Agency's housing policies and goals are structured to provide the flexibility
to respond to changing market conditions in order to continually determine
the need or absence of need to target resources to new housina, existing
housing, or any particular housing su5market (i.e., empty nesters, first-
� time buyers, etc.)
While the thrust of the Agency's efforts is to provide housing affordable
to low and moderate income households, the ability of the City to attract
and hold middle income households impacts equally-important goals, such
as expanding the tax base for the City as a �vhole, continuing investrnent
. in the upgrading of the existing detached housin� stock, and increasing
� the consumer base for neighborhood businesses. 3ecause middle income
housina strengthens individual neighborhoods, it also sta5ilizes the long-
term outlook for the City as a ���hole. Therefore, the maintenance of some
portion of the housing supply at middle-income priees is a necessary and
appropriate policy for the Agency.
Overall housino policies must aGdress the needs .°or housi;�� available to
middle income households, as ��ell as promote sound construction and
rehabilitation standards. Therefore, the Agency will follow the policies
of expanding the housina supply and ensurina more efficient use of vacant
land by providing financin� for the acquisition of residences and for qualified
rehabilitation loans.
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Goals
The Agency will pursue the all-incomes housina policies, including the
provision of low income housing and the maintenance of moderate and
middle income housing opportunities through the following efforts:
(a) Retain middle income families already livina in the City of
Saint PauL
(b) Attract moderate and middle income, first-time homebuyers and
� first-time renters to choose Saint Paul for their housing investment.
(c) Facilitate empty nesters"'house recycling" for the benefit of both
older homeowners and young family buyers, as well as for the renewal
of the City's housin� stock.
(d) Nionitor the marketing progress of empty nester and senior housing
projects and programs now underway in order to project future demand
for additional, similar projects or programs.
(e) iJionitor individual neighborhood housina markets in order to watch
for changing market conditions which may require an adjustment
in Agency methods.
(f) Continue to apply adopted City relocation policies on all public
financing efforts.
(o) Continue the prohibition on conversions to ownership for all rental
rehab financing probrams.
(h) Seek alternatives to sin�le family detached housing.
(i) Promote efficient use of vacant land and underutilized
nonresidential buildings for housing development.
(j) Encourage energy conservation in new housing construction and
emphasize energy irnprovements in housino rehabilitation.
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, � . �����
� � The housing policies and goals are related to low-income housin; assistance
policies and goals in that, as an alternative to targeting pre-determined
portion$ of mortgage revenue bond proceeds to specific classes or types
of housing, the Agency seeks to promote energy-efficient, cost-effective
construction and qualified rehabilitation, which in turn, enhances affordability.
The housing policies and goals relate to development policies and gosls
in that the need for targeting proceeds can occur on a project-by-project,
or program-by-program basis, as determined by development reviews.
C. DEVELOPMENT POLICIES AND GOALS
Policies
The limited amount of developable land and local government resources
has created a new atmosphere of public-private partnership in housing
development. Priva�e develo�ers remain the primary risk-takers. Yet,
public assistance f in the form of land write-downs, prirnary financing,
or subordinate financing) has come to play a more significant role in housing
finance.
The end has al�vays been the same -- to increase the supply of afforda5le
housing while maintaining a balanced housing -narket which can attract
� households at all income levels. The means have changed due to a more
active local housing finance agency, local innovations in creative financing,
and more sophisticated project underwriting by the public sector.
The Agency's operating principle in tailoring Agency involvernent to a
specific project's needs is to provide "just enough--but not too much"
stimulus to: (a) ensure that public purpose goals are *net, and (b) keep
. the developer's rate of return comparable to, but no higher t�an, similar,
solely-private housing ventures.
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.� . � ���.�=��
In a typ,ical proposal review by the Agency, staff utilizes a spectrum of
tools to determine project feasibility:
- To determine market feasibility, staff reviews privately-done, project-
specific market studies in lioht of housing :narket demographics
and knowledge of competing or complementary projects.
- To determine design feasibility, staff reviews preliminary site plans,
elevations and schematics in light of existing codes, special desi;n
distcict standards, and existinb neighborhood conditions.
- To determine development feasibility, staff reviews preliminary
plans, density, and type of proposed units in light of zoning, land
use conditions, as cvell as neighborhood and city plans.
. - To determine financial feasibility, staff reviews preliminary develapment
cost estimates, projected rents or sales priees, as well as operating
expenses in light of project underwriting and financing resources.
- To determine developer's overall return, staff reviews project pro-
� forma analyses and the developer's anticipated internal rate of return,
in light of private market housina investments and investments in
other markets. �
In each review, the Agency sets out to determine the reasonableness of
the developer's proposal in light of publie purpose policies and goals.
The high level of Aoency involvement in feasi!�ility reviews should not,
however, be interpreted as a substitution for a private developer's role
in making development decisions. Real estate development is high risk
venture -- as evidenced by both t�e higher than usual rate of business
failures among developers and the higher rates of return commanded and
received by real estate developers and investors, relative to other types
of investments. A developer's "freedom to fail" must be present in real
estate projects in which the Agency takes part, since the return to developers
and investors in real estate has traditionally been and must remain a funetion
� of their risk-taking.
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. � . � (,���� �
In reviewing development proposals, the Agency may target a portion
of qualified mortgage revenue bond proceeds to specific areas. Such areas
may be selected based on Citywide and neighborhood plans, and may include,
but need not be limited to, qualified census tracts and areas of chronic
economic distress. Proceeds which are targeted may, depending on program
restrictions, be used to finance redevelopment of existing housing or new
construction.
Goals
The Agency will continue to review proposals for financing and prioritize
them according to the followina criteria:
(,a) development priority as determined by adopted plans and
neighborhood reviews;
� (b) affordable cost of the housing to be produced;
�c) appropriate level and nature of private developer risks;
(d) market feasibility as demonstrated by private market analysis;
(e) fir�ancial feasibility as determined by staff underwriting and lender
underwriting analysis;
(f) rate of developer return which is comparable to, but no better than,
rates of return on similar, solely private housing development ventures;
(g) public purpose objective(s) to be achieved by the project.
The development policies and goals are related to low-income housing
assistance policies and goals in that the development decisions of the Agency
affect the feasibility of projects related to low income housing production
and preservation. The development policies and goals relate to housing
policies and goals in that development reviews provide a case-by-case
� basis fro,n which to assess the commitment of Agency resources to
implement housing goals.
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, � �����
III. ASSESS?�'IENT OF COMPLIANCE WITH AGENCY POLICIES
AND CONGRESSIONAL INTENT
A. OVERALL COMPLIANCE
The stated Congressional intent underlying Section 103A of the Code is
that issuers use their authority to issue qualified mortgage bonds and mortgaae
credit certificates to the greatest extent feasible (taking into account
the prevailing interest rates and conditions in the housing market) to assist
lower income families to afford home ownership before assisting higher
� income families. Minnesota Statutes, Chapter 462C, provides local housing
finance agencies in the State specific program standards in structurin;
mortgage revenue bond issues. '"he follo�vi�g references outline criteria
to measure issuer compliance with local policies, state law, and applicable
standards on Congressional intent:
1. Limits on Gross L�come
. M.S. 462C.03, Subdivision 2, provides that each mortgage revenue
. bond program establish limits on pross income for persons and families
served by the program. Generally, the rnaximum gross income
cannot exceed the greater of:
(a) 1109'0 of the metropolitan area median income as established .
5y the Department of Housing and Urban Development; or
(b) 1009b of the r�7innesota Housing Finance Agency income limits
� established for state programs in the area.
2. Limits on ?Viaximum °urchase Price
M.S. 462C.03, Subdivision 3, sets the maxi�um purchase price or
appraised value for units under mortgage revenue bond programs at:
(a) three times the income limit establis!�ed for the program;
except that
(b) �vithin a state-defined targeted area, four times the income
limit established for the prog^am.
_ » _
. � . . ���.,���
, � 3. Set-Asis�e_of Program Funds
_______�._.�_____r�_
M..S. 462C.03, Subdivision 7, requires that fifty percent (5096) of
the money available for loans for each program subject to income
limits must be made available for persons or families with adjusted
gross incomes of less than ninety percent (90g6) of the program's
income limit for six months from the date prograrn money becomes
available.
4. Exceptions_ta Income_Limits
______ _____
A�.S. 462C.03, Subdivision 8, sets a ceiling on the percent of loans
(20%) which can be provided without regard to income or net worth.
Further, to invoke this 20� exception, one of the following two provisions
must apply:
(a) the program is used to finance housing in a state-defined
taroeted area; or
(b) the locality has previously developed and administered a housina
program for low and moderate income persons and families, and
the program will be used to further economic integration policies,
� stability, and revitalization of residential areas.
5. Li�nits.on_LQan Asswmpti�ns
M.S. 462C.03, Subdivision 9, allows the locality to restrict or prohibit
assumptions.
. By strveturing mort;age revenue bond programs which meet or exceed
the standards established by state law, the Agency has been able
. to provide housing finance opportunities to persons and families
of low and moderate incomes before assisting higher income families.
In addition, the Agency is able to encourage housing and neighborhood
reinvestment from persons and families earning middle incomes
by providing e better market for their existing homes.
_ iz _
- � . � .1�,�-����
� � B. PRQGRAM C_OI�'i.PLL�iI�I�E
___r.r____.__.___�
This Statement will review prior Saint Paul mortgage revenue bond programs
in order to demonstrate compliance with both Congressional intent and
Agency policies and goals. The bond issues to be analyzed are:
Principal Amount Date of
Program __of_B�nds----- .Lssu�__
______._. �.� _______
Lowertown Housing Program $ 4,355,J00 12/1/81
(A'larketHouse)
� Housin; Development Program $ 16 ,500,000 12/1/82
(Energy Park)
Joint Housino Program $ 24,500,000 12/1/83
Equity Participation Loan Program $120,000,000 6/1/81
(Family Housing Program-Phase 1)
Home Ownership Mortgage Revenue Program $125,000,000 6/1/84
(Family Housing Program-Phase II)
Family Assistanee Program $ 24,500,000 12/20/84
� Two of these bond issues, Phase I and Phase II of the Family Housina Program,
were issued by the Agency, acting jointly with the iViinneapolis Community
Development Agency, and were, by Section 1104(n) of the Mortgage Subsidy
Bond Tax Act, given special exemption from the requirements of Section 103A.
They are voluntarily included, however, in order to establish a more com-
prehensive record of the Agency's work. Two other bond issues, the Joint
Housing Program and the Family Assistance Program, were also is5ued
jointly with the Minneapolis Community Development Agency.
All mortgage revenue bond projrams have provided set-aside of progra-n
f�nds for loans to be made, for six months from the date program monies
became available, to households with adjusted gross incomes of less than
ninety percent of the program's ir�come limit, and limits on luan assu�nptions
with respect to lendable proceeds. The remainder of this report presents
an issue-by-issue analysis of the program standards and program performance
in meeting Congressional intent and Agency policies and goals.
. � . . C�,��'�-��
LOYdERTOSS'N HO.USING_PROGRAA4 (n4ARKET_HOUSE)
. �w�� ����r� r��.�W.���
Date of Issue: December 1, 1981
Principal Amount of Bonds: $4,355,000
Description of �2ortgage Loans: 13.259� iaterest rate; maximum
95% loan-to-value; subordinate
financin; provided as equity
� participa:ion loans.
� I. Data .on Pro�ra;l Loans (As of Septe-nber 30, 1984)
��_�_�W______
Lenda5le Proceeds: a4,224,350
Total Amount Pre-Committed Loans: $ 277 ,200
Percentage of Program Pre-Committed: 6.�690
:�9easure Pro�r.a-� Standar� Pro�ram.Perforrnz:�ce
�:��ss .�co,;�� Lirnit: ��,�ou - .s-�,rb . c�ustea gross
------------------ income fo*
� of 6 funded
loans (83 90) was
� �26,636; 1 of
6 loans had
adjusted gross
� income of $33,843.
��l��tiable 9diustments
to�rossY�come�'�—� �"�O�for each adult
-`--"'-""" (up to 2 adults?;
�500 for each dependent
*:�t Prooram S�art-lip, inco:ne limit �,:as o^eater of 110% o: HLD med�an.As HUD
adjusts its income standard, program income is adjusted. At the inception of the
Prooram, the income limit was $25,960, and this limit has been increased to �34,760
� over the course of the Program.
_ ;� _ .
1�aximum_Purchase � ����,
Prl���'Limi : — For units involving a 5 of 6 ded
""'`�'"-"" Program Loan only, the loans have average
� � lesser of: sales price of $62,874;
(a) 4 times 11096 of remaining 1 loan has
Metro Area median average sales price
� ' income; or of $55,200.
, � (b) 1109�6 of "average area
i i purchase price" f or
� '_1'Ietro Area; or �
� (c) For units involving an
( i Equity Participation Loan +
� in addition to a Program i I
� Loan, �79,000. �
i +
Num�er of ' I i
F`irs�=T m� �
�
i �me'"C�`uyers: � Note: First-'I�me Homebuyer� All 6 funded �
�. ; standard did not apply � loans were
because loans were to first-time �
directed into an � homebuyers. �
' Area of Chronic
� ' Economic Distress , ;
� Excepti.�ns_to ; ; �
� fnc_o1n-e�L"un s: I No more than 20% of No loans have been �
i �""""�'— the amount in the loan ; been made to I
originated as loans to , borrowers with
; households whose incomes � incomes exceeding �
exceed Program income ; Program inco�e limits.
! limits; this 209�6 may be
I exceeded to the
I . extent 20% of
I aggregate dollar amount
of all bond proceeds
of City and Port Authority
allows within calendar year.
II. Ai��ussiQn of_C�m�liance_with.Cs�ngrsssional�ntenY�n.d_Agen�y_Polisies anzL�nn81s �
______________..._.r �_� ___.r_�__.______
The Lowertown Housing Program was issued for the purpose of providing mortgage
loan funds to purchasers of condominiums in a project in the Lowertown area
� of Downtown Saint Paul. In addition, a non-profit organization, the Lowertown
Reinvestment Corporation, will make subordinate financin� available to low
and moderate income households (incomes less than 11090 median) in the form
of Equity Participation Loans (EPLs). The project, known as Market House,
� � is located in the City's old warehouse district. Agency development policies
and goals include the effort to concentrate downtown residential development
in the Lowertown area. The area was designated by the Treasury and HUD on
January 15, 1982, as an Area of Chronic Economic Distress.
The Program data demonstrates that loans funded through September 30, 1984
have been successful in reaching lower income households, while instigating
ownership investment in the Downtown area.
- 16 -
_ � . � ����-��
HOUSLI�G.DE�ELOP'�'lENT.PRi�GRA�i(ENEftGY P_ARK?
�i�/M�Y�� Y�YYYW��WYY���Y����Y��
Date of Issue: December 1, 1982
Principal Amount of Bonds: $16,500,000
Descri�tion of Mortgage Loans: 12.20�6 interest rate; m�ximum 95� loan-to-value;
� subordinate finencin� may be provided by developer
or othe*s.
� I. O�ta on Progra�n. Loans (As of Septe:��ber 30, 1984)
Lendable Proceeds: �14,916,700
Total �mount Pre-Committed Loans: $ 3,270,950
Percenta�e of Program Pre-Committed: 20.896
� °,Taasure Pro_ram Stan�a*d Pro�ca-r.�Perf
� __ _._____`.
Gros� IacomQ.Limit: 532,000* Adjusted gross income average
"—"'r'"" v,�ith adjustments for 32 of 44 pre-c�mmitted
• allowable loans (739b) was 523,417; 12 of
4-� ioans (27� had adjusted gross
income averzge of 545,326.)
�1lowable Ad�ustments 5750 for each
to w�ss ncome`-- adult (up to 2
""-"""-"""" adults) 5500 �or
each dependent
*At Pro�ra-n Sta;t-Up, income l�mit v��as greater of 110�o HUD median ($28,600) or 1009b
�7HF:� income limit (532;000). As HUD or A'IHFA adjusts its respective income standard,
program income is adjusted.
- 17 -
. . (v� �.��o
��a�:imum_Purchase, 512�,000 32 of 44 pre-committed loans have
Pric�mi��� (Four times gross average sales price of �77,068; remaining
""""" income limit) 12 pre-cornmitted loans have
average sales arice of $100,841.
�tumber. of
F'u^$�=�LfDe
; gome6uyers: Note: First-T`ime 29 of 441oans (66�) were first-time
; Homebuyer standard buS�ers; remaining 15 (3496) were not
? did not apply because first-time buyers.
loans were direc`ed
� into an Area of Chronic �
Economic Distress
' E�ce�tions to �
inco:ne�LimLtS: Up to 2090 of a�ount o of 3 r funded loans (169b)
� —'-' -' in loan fund may be eaceeded Program income limits; ;
� originated as loans to �549,350 of 52,472,650 in loans �
t households whose funded (2290) have been for
� incomes exceed target income households. :
� Program income Iimits;
� this 209b may be � �
i exceeded to the ehtent �
209b of ag�egate dollar
amount of all bond
proceeds of City and
Port Autho*itv allows
within calendar vear.
- 18 -
. � � � ���-��
II. Dis.c.ussion 9f_Compliance_with Cflngrsssionalsnient ansi Agsncy_P�lisies�nd G��ls
The Housing Development Program was issued for the exclusive purpose of making
mortgage loan funds available to purchasers of condominiums and townhouses in Energy
Park, a major new construction residential/commercial/recreational/light industrial
development undertaken by the Agency and the Saint Paul Port Authority in 1980.
The 218-acre site was once a deteriorated, underutilized area encompassing railroad
land, a vacated coke processing plant, a municipal stadium facility, and undeveloped
land. The area �vas designated by the Treasury and HL'D on �ecember 14, 1982 as
an Area of Chronic Economic Distress. The Agency's objective in focusing this mortgage
revenue bon� issue on the Energy Park developme;�t has been to revitalize a large
area by attracting owner households of low, moderate and rniddle incomes.
The program data demonstrate that this program has been successful in drawina middle
income households (referred to in the data report as ''targeted income" because of
� the objective to target and capture higher income households to this "new town in
town"). At the same time, more than seven out of ten program loans have been pre-
committed to households whose incomes fall within the moderate income range. In
addition, two out of three mortgagors in the progra-n are first-time homebuyers, even
� thouoh the program is located in a iedera?ly-designated �rea of Chronic Economic
Distress !and, therefore, is able to waive the first-time hornebuyer standard).
- 19 -
,� . � �����
. �IOINT_H.QUSIN�'i PROL'iRE�M
Date of Issue: � December 1, 1983
Principal Amount of Bonds: $24,500,000
Description of iViortgege Loans: 10.875% interest rate; maximum 959�6
loan-to-value; subordinate financing may
be provided by developer or others
I. �ata_on Prflgrafn Lfl�ns (as of September 30, 1984)
(Saint Paul portion of the program)
� Lendable ?roceeds: $6,118,000
Total Amount Pre�ommitted Loans 0
Precentage of Program Pre-Committed: 09b
Msasure Progr_am_Standarsl Program_PerLormanes
�..� �.r _�____r_�__��
� Gross IncomQ_Limit: $34,760*
All�v�akle_Ad�ustmenis $750 for each adult
� o flss c9me"°"'�� (up to 2 adults)
�'—�� $500 for each dependent
�14aximum_Ptuchase In state-designated target
Pc�Q_ i'�m�`� areas, 5139,040 (four times
'-"""'� gross income limit);
In all other areas, $104,280
(three times gross income
. limit)
Number�f All mortgagors must be
'��= iT'�ie first-time bvyers, except
, o-ne5uyers: for mortgagors in
"""""'— federally-designated
target areas
V V
� . � �-��-��
Exceptinns_tQ , Twenty percent of
�flJne ilni s: amount deposited
°-�� in the Program
loan fund mav be
originated asYloans
to mortgagors
whose adjusted
family income exceeds
the Program's gross
income limit.
*At Program start-up, ineome limit was greater of 110%
� HUD median ($31,600) or 10096 MHFA income limit. As
HUD or 1ZHFA adjusts its respective inco:ne standard,
program income is adjusted.
II. Di�cussion�f_C4mpliancs.�vith�9ngrsssis�nallntent and_A�n�.y.P9licies.anct�als
� _____________________Y_____�____.._ -
, The Joint Housing Program is an example of the Agency's issuing mortgage revenue
bonds jointly with the '.Viinneapolis Community Development Agency in order
to achieve a more cost effective program and more afiordable financing. This
program is targeted to identified condominium projects which are important
to the redevelopment efforts of the two cities. These projects are still under
construction, and, therefore, as of September 30, 1984, the prograrn has not
pre-committed to fund any mortgage loans. The evidence of compliance with
Congressional intent and Agency policies and goals is housed within the program
standards, which have been crafted in order to satisfy all of the relevant requirements
of the state law affecting mortgage loan and programs.
_ �, _
� • C�����
EQUITY PARTICIPATION. LOAN PROGRAM
'(FA?��'[L'4`AZSt1Sf�`.v�P�S � �Jr=="P'F�A�E�T
Date of Issue: June 1, 1981 .
Principal Amount of Bonds: �120,000,000
Description of Mortgage Loans: 11.87596 interest rate; 8096 loan-to-
value, unless insured; equity participation
loans, equitp contribution loans, and graduated
parment loans available to low/moderate
income mortgagors
I. D2ta on Projram Loans (as of Progra-n close-out, which was April , .
�ain't�auT'p`o'r�'on of�he Program)
Lendable Proceeds: $51,000,000
Total Amount of Loans Funded: 547,405,295
Percentage of Program: 93`�
!
,
. i 1Qeasure Program Standard PrograT Performance
� ,�.r -----�---- — ------------�--r--
� � Gross Incoms.Limit: $25,960-534,760* For the total of 882 loans, average
� - - -' oross income was �26,853.
! Program loans only had average I
� gross income of S29,055;
� � Program loans with Family Housing
� Fund Equity Contribution Loans (ECLs
I
; - had average gross income of �
525,314; Program loans with ECLs
and Equity Participation Loans (EPLs)
E had average gross income of
� . 524,131; program loans combining
ECLs, EPLs, and Graduated Payment
� Loans (GPLs) had average gross
;
+ income of 520,288.
I
AlloH�able Adjustments
�o r�ssTncome:"" �750 for each
`-""-`� adult (up to 2 adults)
$SOOfor each dependent
*The maaimum income allowed for the Pro�ram was the g�eater of 1109u of HUD
median or 10090 of '�ZHFA income limit, adjustable as those standards increased or
decreased. At tr�e inception of the Prograrn, the income limit was $25,960, and this
limit was increased to $34,760 over the course of the Program.
- °2 -
V
� . � c���.��
�Vlaximum Purchase
Price Limit: , Four standards: For all 882 loans,
(1) In Redevelopment average sales price
Project, �103,840; was $64,333;
(four tirnes gross -
income limit);
(2) In case of existin� Average sales price
home receiving ECL, EPL, by type of loan was:
or GPL, $60,000;*
(3) In case of new
home receiving ECL, EPL, Program Loan only:
of GPL, 565,000;* $63,112
(4) In all other Progra;n Loan and
cases, S'7,880 _ ECL: $64,793
(three times gross Program Loan, ECL,
income limit) EPL bc GPL: $66,895
Number of
. First-Time
Homebuyers: Because this progra►n Percentage of borrowers
was specifically exempt formerly rertters: �
from the provisions
of Section 103A, the Progran Loans Only: 8796
first-time homebuyer Program Loans bc ECL: 92�'0
standard was not Program Loans,
imposed in program ECL �C EPL: 8196
criteria Program Loans,
ECL, EPL, GPL: 8796 �
Exceptions to
Income Limits: No more than 20� of For all 882 loans, average
of program funds can adjusted gross income was
be used for loans to 525,245;
mortgagors whose for Program loans only,
incomes exceed the average adjusted gross
program's gross income was $27,573
income limit
�* Family Housina Fund had discretion in settin; increased limit; Agencies in 12inneapolis
or Saint Paul had discretion to increase new home limit in cases where energy
conservation standards applied.
- 23 -
. . �� _��'// �
II. Dis.cussiQn �f_Compliance_with�ngressi�nal Inient and Agsnc�Pol.i�ies�nd�als
_____.._ ___________..YY.�_____�_____.�
The Equity Participation Loan Program combined a mortgage revenue obligation
issued jointly�by the Agency and the '.Viinneapolis Community Develpment
Agency with subordinate financing supplied by the Federal Government (under
a UDAG grant) and a non-profit organization (the '.1�inneapolis/Saint Paul
Family Housing Fund) to provide mortgage financing for both new and existing
housing in the two cities.
Although specifically exempt from the requirements of Section 103A, the Equity
Participation Loan Program demonstrates innovative methods used by the
• Agency, in cooperation with Viinneapolis and the Fa�ily Housing Fund, to offer
mortgaoe financing to moderate income and low income households by combining
subordinate financing packages like equity contribution loans, equity participation
loans, and graduated payment loans. Eligibility for the subordinate financing
packages was calculated based on household income in order to ensure that lower
income households had access to the homeownership market.
� The data on the program demonstrates that mortgages were made, for the program
as a whole, to households whose adjusted ;ross incomes were well below the
. program income limit. In addition, the three forms of subordinate financing
(ECLs, EPLs, and GPLs) assisted in reaching families whose incomes were ?-309i6
below the program income limit.
The data aLso show that the prog�am was successful in reaching for.mer renters. .
Depending on the type of financing package, between S1� and 9296 of the borrowers
in the program were former renters.
� In addition to the program data reported here, the Program Administrator reports
that 3396 of all program borrowers t�Tere new residents to the City of Saint Paul.
.Also, a full program report on funds available in both Saint Paul and 'i2inneapolis
revealed that 2096 of all borrowers receiving subordinate financing through the
� Family Housing Fund were female-headed households with children.
- '4 -
�
• � ���� ��
HOMEOWNERSHIP NI08TGAGE REVENUE PROGRAAR
tFAR2ILY HOUSING PROGRAM -- PHASE II)
Date of Issue: June 1, 1984
Principal Amount of Bonds: $125,000,000
Description of Mortgage Loans: 9.7596 interest rate; maxirnum 959�6
� loan-to-value; private mortgage insurance
�.t.i��il���,..�.,._....�. .�._...--_ -
� I. Data on Program Loans (As of September 30, 198.4) (Saint Paul portion of the
p�og�am"=='&'�"'aTroc�ionT.—���__�.+ ____ _..
______________f�
Lendable Proceeds: $32,613,000
Total Amount Pre-Committed Loans: $13,571,775
Percentage of Program Pre-Co;nmitted: 41.696
�ieasure Program Sta.*�dard Progtam_Performance
G*oss IncomQ.Limit: � $34,760* w For the total of 234 loans pre-
"-'--"' committed, average gross
' income was: $28�828
i Program Loans Only: $29,736
Program Loans and Equity
� Participation Loans (EPLs): 523,995
Program Loans, EPLs and
� Graduated Payment Loans
- (GPLs): �21,686
Allowable Adjustments
to'�rossY�come: -"� $750 for each
"�""'-"'-'-'" by adult (up to 2)
$500 f or each child
�`At Program start-up, income limit was greater of 1109u HUD median ($31,600) or 1009e MHFA
income limit. As HUD or MHFA adjust their respective income standards, program income
� is adjusted.
_ o; _ .
� • ��� ��
��aximum Purchase
P-r'ice imi : "'�'— ' Price by structure size was:
"""""' One Unit: $ 77,500 Average sales price by type
Two-Unit: $120,000 of loan package were:
Three-Unit: �180,000 Program i,oans Only: $64,122
Four-Unit: $240.000 Program Loans �C EPLs: $67�2g7
Program Loans, EPLs � GPLs: $68,7.76
_______ __-.
Sales price of
homes receiving Overall Program: �64,636
EPL or GPL is
limited to $77,500
or less.
� Number of
Firs`t=Time
�omeSuyTers: Because this program Percent�ges of borrowers
""""""' was speci;ically exempt fo*merly renters, by type
from the provisions of loan package, were:
of Section 103A, the Program Loans Only: 86%
first-time homebuyer Program Loans � EPLs: $8`�
standard xas not imposed Prog*aT.Loans, EPLs � GPLs: 7396
______�__��
1 in program criteria. ��era11 Program
l
i � Exce:.tions to
fncome�is: 509d of the From program start-up this
""""'�""'— program loan funds su:nmer through October 2, 1984,
must be set-aside the average gross income
� for six months to for program Ioans on2y
make loans to households (i.e., no subordina*_e
earning 531,284 financin�) was $29,736
or less (90% (8090 of the program
of the program's g*oss income limit,
gross income limit); and below the
` 9090 set-aside threshold).
No more than 209� of
program funds can be
used for loans to mortgagors
� whose incomes are higher '�
than 534,760 (the program's
gross income limit).
- ?6 - ; '
.
, ���-��
. II. �Di���,ssiQn o�'_C�mpliance_v�ith_��ngrQSSi�nallnrent an�Ag�ncy_Pfllic.ies
YYY��Yi�YY��Yr�����Y��Y�YY�rW�YY��YY�Y�Y�
&nd �i08LS
The Homeownership iViortgage Revenue Program is the second phase of the
joint Minneapolis/Saint Paul Family Housing Program. Like Phase I, this Program
provides subordinate financing assistance in the form of equity participation
loans and graduated payment loans. The sources of this subordinate financing
are a federal governmenx UDAG grant and a non-profit organization, the
Minneapolis/Saint Paul Family Housino Fund.
To be eligible for either the equity participation loan or the graduated payment
loan, a borrower must be a family (with children) and have an income of no
more than $25,960 (75% of the Progra-n's gross income limits).
The data de monstrates that the subordinate financing leveraged by the Agency
allowed the program to reach income levels u�hich averaged 62-69% of the
� program income limit. In addition, the data evidences a areater number of
large bedroom units being financed:
One-Bedroom Homes: 3 ( 196)
Two-Bedroom Homes: ?5 (32%)
Three-Bedroom Homes: 122 (52%)
Four-plus Bedroom Homes: 34 (15�)
The average size of families participating in the prograrn and using one or both
subordinate financing loans ranged from 3.2 persons per family to 3.5 persons
per family (compared to the citywide average family size of 2.4 persons per
family).
An additional objective of the Agency in this program was to provide an incentive
for mature families (one or more persons, one of �vhom is 50 years of age or
older) to sell their existing homes to young family buyers. The program, therefore,
. requires that on every sale of existing housing, the seller must be a mature family.
This requirement assists in providing "house recycling" within the City--a smaller-
sized mature family is able to sell their large existing house to a young family.
The young family, in turn, often finds the existing housing stock better supplied
with larger-sized, less expensive housing choices than new construction housing.
Of the 234 pre-committed loans, 220 of them (94%i are loans for the purchase
of existing housing.
_ �, _
�
. � ���.J o7�Y'
.
FAMILY ASSISTANCE PROGRAM �
�
Date of Issue: December 20, 1984
Principal Amount of Aonds: $24,500,000
Description of :Viortgage Loans: 10.75% interest rate; maximum 95�Ei
loan-to-value; subordinate financing
available to lower income family buyers.
I. Data on Pro�ram Loan (As of September 30, 1984)
(Saint Paul portion of the program)
� Lendable Proceeds: Expected to be $8,500,000
Total Amount of Pre-Committed Loans: 0
Percentage of Program Pre-Committed: 0%
!17easure Pro�ram Standard Pro�ram Performance
Gross Income Limit: $34,760*
Allowable Ad'ustments $?50 for each adult
to Gross ncome: (up to 2 adults)
$SOOforeach dependent
Vlaximum °urchase $77,500**
Price Limit:
Number of All mortgagors must be
First-Time first-time buyers, except .
Homebuyers: for mortgagors in
federally-designated
target areas
*� At Program start-up, income limit was established at $34,760. The Issuer, at
its discretion, may increase such income limit up to the greater of 110°,� HUD
median ($32,800) or 100?0 1ZHFA income lirnit.
** At Program start-up, the maximum purchase price limit was set at $77,500.
The Issuer, at its discretion, may raise the limit to the lesser of three times the
. Program income limitation (four times in state-designated target areas), or 110%
of the average area pu�chase price, �romulgated by IRS (12096 in state-desipnated
target areas).
- 28 -
_ � _ �IS
." • ' ��J� �
II. Discussion of Compliance with Congressional Intent and Agency Policies and Goals
The Family Assistance Program is the most recent example of the Agency's
acting jointly with the Minneapolis Community Development Agency to issue
mortgage revenue bonds. This bond program was issued on December 20, 1984.
Therefore, the evidence of compliance with Congressional intent and Agency
� policies and goals is housed within the orogram stan�ards.
� In addition to basic progra� loans, the Family Assistance Progra�n will provide
subordinate financing assistance to lower income family borrowers in the form
of buydown assistance.
- 29 - -
S.
: �._ -��
, �
� y
C. SU11'IMARY OBSERVATIONS
Review of the program analysis reveals that several ke.y observations can
be made regarding the Agency's use of mortgage revenue bond financing.
The Agency has established basic program standards which ensure that
program funds go first to lower income borrowers. In programs where
Agency objectives include attractirig middle income borrowers, project
financings provide middle income households opportunities to invest in
specific developments (i.e., Energy Park) within the context of controlled
program requirements.
In several mortgage revenue bond programs, the Agency has provided
supplemental assistance in the form of subordinate financing in order
to reach further down the income strata to families with incomes in
the teens and twenties.
Program standards are often expanded beyond financing criteria in order to
� set local criteria to encourage such goals as "house recycling", commonwall
development, and energy efficiency.
The tool of mortgage revenue bond programs has provided, in the six programs
analyzed in this report, valuable opportunities to implement a variety of �
local housing policies and goals, including providing ownership opportunities
to lower income households, offering additional incentives to family buyers,
attracting middle income buyers to invest in Saint Paul, and implementing
� City/neighborhood development objectives.
� - 30 -
WN�TE — C�7v c�Er+K ' COU[IC1I �v
PINK - FINANCE � � ' G I TY OF SA I lr'T PAU L
CAN4RY - DEP4RTMENT File NO.�
B'_l'E - M4VOR
1
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLUTION APPROVING
HOUSING POLICY ftEPORT
UNDER SECTION 103A
WHEREAS:
(A) Section 103A(��(5) of the Internal Revenue Code of 1954, as amended,
requires that a governmental unit which intends to issue qualified mortgage bonds,
or undertake a mortgage credit certificate program, publishes a report by the last
day of the year preceding the year in which such qualified mortgage bonds (or mortgage
credit certificates) are issued and further requires that such report be submitted
to the Secretary of the United States Department of the Treasury on or before such
. last day; _
(B) The Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota (the "HRA") intends to undertake either to issue qualified mortgage bonds
under Section 103A of the Internal Revenue Code, or mortgage credit certificates
in lieu thereof, during calendar year 1985;
(C) On December 27, 1984, the City Council of the City of Saint Paul, Minnesota,
approved the 1984 Policy Statement for Housing following a public hearing;
(D) On December 12, 1984, the United States Department of the Treasury "
issued temporary regulations relating to mortgage subsidy bonds under Section 103A
of the Internal Revenue Code of 1954, as amended, including the requirements related
to the Policy Report Under Section 103A;
(E) The Policy R.eport Under Section 103A has been revised pursuant to the
Treasury regulations;
F) A public hearing has been scheduled before the City Couneil of the City
of Saint Paul, b'Iinnesota, on the 5th day of March, 1985, following reasonable public
notice thereof published in a newspaper of general circulation within the City of �
Saint Paul; and
COU[VCILMEN Requested by Department of:
Yeas �� Nays
Drew [n Favor
Masanz
Nicosfa
scne�bet Against BY
Tedesco
Wilson
SOriri@A Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
gy.
Approved by �lavor: Date Approved by Mayor for Submission to Council
By BY
WN�TE — CiTV CLERK v
PINK — FINONCE ' � G I TY OF SA I NT PAZT L Council /
C4N4RV = pEPARTMENT File NO. ` �
�'�lJ�E — �nAYpR �
�
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
(G) At the time and place fixed for the public hearing, the Council has given
all persons who appeared at the hearing an opportunity to express their views �vith
respect to the Policy Report Under Section 103A;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul,
Minnesota, as follows:
1. The Policy Report Under Section 103A of the City of Saint Paul, Minnesota
is hereby approved.
2. The Director of the Department of Planning and Economic Development
is hereby authorized and directed to submit a copy of the Policy Report Under Section
� 103A, as well as a summary of testimony-presented at the public hearing, to the Secretary
of the United States Department of the Treasury on or before March 11, 1985,
3. The Director of the Department of Planning and Economic Development
is hereby further authorized and directed to make copies of the Policy Report Under
Section 103A freely available to the public upon request.
COUNCILI�EN Requested by Department oE:
Yeas Nays
�1�r
Drew In Favor
Masanz
Nicasia
scheibe� _ Against BY
Tedesco
Wilson
Sonnell Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
By
Approved by Viavor: Date _ Appcoved by Mayor Eor Submission to Council
By _ sy
- ���� ��
::��
�
CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORA►�nUM FICED
F�a �� �' .:1 �'•` �E5
t.:;
DATE: FEBR1iARY 13, 1985 r��� ' r�� � .����IC�
_ _ :i.
T0: AL OLSON, CITY CLERK
FROM: SHERI PEMBERTON, DEPT. OF PED �0
SUBJECT: CITY COUNCIL PUBLIC HEARING FOR MARCH 5, 1985
Attached is a copy of the Pubiic Hearing Notice, which was published in
the St. Paul Legal Ledger and the St. Paul Pioneer Press and Dispatch
on Thursday, February 14, 1985.
Please place this Public Hearing on the City Council Agenda for Tuesday,
March S, 1985.. A City Council Resolution will be forwarded to you by
the City Attomey's Office, prior to the City Council Meeting.
Thank you.
SAP:rmf
Attachment
cc: Becky Hartman, Nancy West
. .� �J,� p
C� 0 ✓���
NOTiCE OF PUBLIC HEAi3ING
ON THE POLICY REPORT ��r1DER
SECTION 103A FOR 'I`fiE
CITY OF SAINT PAUL, MINN�:`:'JTA
TO WHOM IT MAY CONCER.N:
Notice is hereby given that the City Council of the City of Saint Paul, Minnesota
will meet in the City Council Chambers of the City Hall in the City of Saint Paul,
_ Minnesota at 10:00 a.m. on �March 5, 1985, to consider the Policy Report Under
Section 103A for the City of Saint Paul, Minnesota and the Housing and ftedevelopment
Authority of the City of Saint Paul, Minnesota. The Policy Report Under Section
103A is a document which is required to be prepared pursuant to Section 103A (j)(5)
of the Internal ftevenue Code of 1954, as amended, and must be submitted to
the United States Department of the Treasury on or before March 11, 1985 if the
City of Saint Paul or the Saint Paul HRA will undertake a single family mortgage
revenue bond program, or a mortgage credit certificate program, under Section
103A of the Internal Revenue Code, in 1985.
The Policy Report under Seetion 103A contains, among other things, two sections:
one Section states the housing, development and low-income housing assistance policies
and methods by which the City and HRA have implemented mortgage revenue bond
programs which comply with Congressional intent with respect to programs financed
through tax-exempt bonds; the second Section reviews prior mortgage review bond
programs in order to assess complianee with both Congressional intent and the stated
policies and goals.
Draft copies of the Policy fteport Under Section 103A will be available for inspection
prior to the public hearing at the Department of Planning and Economic Development
- City Hall Annex -12th Floor, 25 West Fourth Street, St. Paul, Minnesota 55102
(telephone (612) 292-1577). Copies of the report submitted to �he Department of
the Treasury will be available to the publie, subsequent to the submission, at this
same address.
At the time and place fixed for the public hearing, the City Council of the City of
Sa.int Paul, Minnesota will give all persons who appear at the hearing an opportunity
to express their views with respect to the Policy Report under Section 103A.
Dated this _]��h_ day of February, 1985.
���
(BY ORDER OF THE CITY COUNCIL OF THE CITY OF SAINT PAUL, MINNESOTA)
By _ _s�_ALBERT. OLSON__ __ .
ert son"
...,...,......�
City Clerk