Loading...
86-1220 M�MITE - CITV �LERK PINK - FINANCE G I TY OF SA I NT PA U L Council �/ _ �a� CAN�R:� -�EPARTMENT Bt�t - MAVOR (p File N 0. � Co il Resolution Presented By Refe o Committee: Date Out of Commi ee By Date RESOLUTION RECITING A PROPOSAL FOR A JOINT FINANCING 'PROGRAM TO FINANCE THE ACQUISITION AND REHABILITATION OF SINGLE FAMILY HOUSING; GIVING APPROVAL TO THE PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C; UTHORIZING THE ISSUANCE OF REVENUE BONDS AND MORTGAGE CREDIT CERTIFICATES BY THE MINNEAPOLIS/SAINT PAUL H USING FINANCE BOARD; AND AUTHORIZING THE PREPARATION OF ! NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROGRAM. WHEREAS, I� (A) Minnesota Statutes, Chapter 462C (the "Act" ) confers upon cities, or housing and redevelopment authorities or port auth rities authorized by ordinance to exercise on behalf of a city the powers conferred by the Act, the power to issue reve ue bonds and mortgage credit certificates to finance a prog am for the purposes of planning, administering, making or purc asing, or causing to be made or purchased, loans to fina ce the acquisition, acquisition and rehabilitation, or reha ilitation alone, of single family housing and rental hous ng within the boundaries of the city; (B) Pursuant to Ordinance 86-OR-035 adopted by the City of M nneapolis on February 28, 1986, the City of Minneapolis, Minn sota exercises the powers conferred by the Act within the City of Minneapolis; COUNC[LMEN Requeste Department of: Yeas p�eW Nay � Nicosia ln Favor Rettman Scheibel Sonnen __ AgBitlst BY Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date Certified Passed by Coun il Secretary BY � By� Approved by Mavor: Dat _ Approved by Mayor for Submission to Council sy _ _ _ sy , (C) The City of Saint Paul, Minnesota has designated the Hous ng and Redevelopment Authority of the City of Saint Paul, Minn sota (the "HRA") , by ordinance, to exercise, on behalf of Sain Paul, the powers conferred by the Act; (D) Pursuant to Minnesota Statutes, Section 471.59, the MCDA by Resolution No. 84-932 and the HRA by Resolution No. 84-9 12-4 have approved and authorized execution of a Joint Powe s Agreement dated December 1, 1984, creating the Minn apolis/Saint Paul Housing Finance Board (the "Joint Boar " ) , and both agencies have executed the agreement; (E) The City of Minneapolis by Resolution No. 84R-481 and the ity of Saint Paul by Resolution No. 84-1333 have approved the oint Powers Agreement, and both cities have executed an ackn wledgement and acceptance of said agreement; (F) The powers of the Joint Board have been ratified and onfirmed by 1985 Minnesota Laws, First Special Session, Chap er 14, Article 8, Section 30 (Minnesota Statutes, Section 462C 12) , and the Joint Board is authorized to exercise the powe s conferred on the Cities of Minneapolis and St. Paul by the ct; (G) The Joint Powers Agreement provides that the Joint Boar may exercise the powers of the MCDA and the HRA, and of the ities of Minneapolis and Saint Paul under Minnesota Stat tes, Chapter 462C if the appropriate agency and city have appr ved the financing program and authorized and designated the oint Board to undertake the financing program on their beha f; (H) It is now proposed that either the City of Minneaplis and he HRA, acting jointly, or the Joint Board, should unde take a program for the issuance of revenue bonds or obli ations or mortgage credit certificates pursuant to the Act to m e or purchase or cause to be purchased mortgage loans, or to p rchase securities the proceeds of which would be used to purc ase mortgage loans, to finanee the acquisition and reha ilitation, or rehabilitation alone, primarily by low and mode te income persons and families, of single family housing loca d within the geographic boundaries of the two Cities (the "Sin le Family Program" ) ; � , � ���aa6 w ' I (I) A public hearing on the Program and the financing the efor was held by the City Council on August 28, 1986 after not ce was published all as required by Minnesota Statutes, Sec ion 462C.04, subd. 2, at which public hearing all those app aring who desired to speak were heard. I NOW, THEREFORE, BE IT RESOLVED by the City Council of the Cit of Saint Paul, Minnesota, as follows: unde�I 1. The City hereby approves the proposal that the City take the Program described above pursuant to Minnesota Stat tes, Chapter 462C, acting by and through the Joint Board. The rogram shall consist of (a) the issuance of one or more seri s of qualified mortgage bonds under Section 103A of the Int nal Revenue Code in an aggregate principal amount not exce ding $24,500,000, and the use of the proceeds of such bond to acquire mortgage loans, or to acquire securities the procl eds of which will be used to acquire mortgage loans or caus mortgage loans to be purchased, and the use of the proc eds of such loans to finance the acquisition, acquisition and ehabilitation, or rehabilitation alone, primarily by pers ns and families of low and moderate income, of single fami y housing units within the geographic boundaries of the Citi s, or (b) the issuance of mortgage credit certificates purs ant to Section 25 of the Internal Revenue Code of 1954, as amen ed, which certificates would be issued in lieu of a port on of the qualified mortgage bonds; all as more fully desc ibed in the "Minneapolis-St. Paul 1986 Single Family Hous ng Program" on file with the Cities. Taxable bonds or obli ations may also be issued in an amount to be determined. 2. At the option of the Joint Board (or the HRA and City of M nneapolis, if issuing on their own behalf) , the financing may e structured so as to take advantage of whatever means are avai able and are permitted by law to enhance the security for, or m rketability of, the Bonds. 3. The Program and the issuance of revenue bonds or mort age credit certificates to finance the Program are hereby appr ved by the City subject to: (i) filing of the Program with the Minnesota Housing Finance Agency ( "MHFA" ) ; (ii) final appr val by the Joint Board or the HRA and the City of Minn apolis, and by the purchasers of the Bonds and others as to u timate details of the Program and the financing therefor. � , • , �'�- �a�� . - 4. Pursuant to Chapter 72, St. Paul, Minnesota, Adm'nistrative Code, the HRA is hereby designated, acting joi tly with the City of Minneapolis, to implement the Programs and to issue bonds or other obligations or mortgage credit cer ificates to finance the Programs; provided that the bonds and ertificates shall be issued, and the Program implemented, by e Minneapolis/Saint Paul Housing Finance Board. - II 5. The submission of the Program to MHFA in accordance witt� subdivision 2 of Section 462C.04, Minnesota Statutes, is here y approved, ratified and confirmed and the submission to MHFA of other information required by it is hereby approved, rati ied and confirmed. I6. Holmes & Graven, Chartered, and Briggs and Morgan, Prof ssional Association, acting as co-bond counsel, and Dain Bosw rth Incorporated, Piper, Jaffray & Hopwood Incorporated and iller & Schroeder Financial, Inc. acting as investment bank rs, are authorized to assist in the preparation and review of n cessary documents relating to the Program, to consult with purc asers of the bonds and others as to the maturities, inte est rates and other terms and provisions of the bonds and the erms and provisions of the mortgage credit certificates, if a y, and as to the covenants and other provisions of the nece sary documents and to submit such documents to the Joint Boar for final approval. 7. Nothing in this Resolution or the documents prepared purs ant hereto shall authorize the expenditure of any muni ipal funds on the Programs, other than the revenues or asse s derived from the Programs or funds otherwise granted to the oint Board, City of Minneapolis, the City of Saint Paul, the inneapolis Community Development Agency ( "MCDA" ) or the HRA or this purpose, except as otherwise set forth in reso utions adopted by the City of Minneapolis and HRA, prior to t e issuance of the bonds or mortgage credit certificates. Neit er the bonds nor any mortgage credit eertificates shall cons itute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City or HRA except the reve es, assets and proceeds pledged to the payment thereof, nor all the City or, except as stated therein, HRA be subject to a liability thereon. The holders of the bonds or mortgage cred' certificates shall never have the right to compel any exer ' se of the taxing power of the City or HRA nor shall the hold s of the bonds be entitled to compel the City or HRA to pay e outstanding principal on the bonds or the interest ther n, or to enforce payment thereof against any property of M�NITE - G7V CLERK PINK - FINANCE G I TY O F SA I NT PA U L Council (�/ CANqRY -�EPARTMENT File NO. v �J /��� Bl��!G� - MAVOR �. � _ Co 'l Resolution Pcesented By � � � � �__ Referred To � Committee: Date Out of Commi ee By Date the C ty or HRA except the revenues and properties pledged there o. The bonds shall recite in aubstance that the bonds, inclu ing the interest thereon, are payable solely from the reven es, assets and proceeds pledged to the payment thereof. Neith r the bonds nor any mortgage credit certificates shall const tute a debt of the City or HRA within the meaning of any const tutional or statutory limitation. Notwithstanding anything herein to the contrary, a porti n of the mortgage revenue bonds for the Programs may be issue by the HRA acting alone, or by the HRA and City of Minne polis, acting jointly, if it should appear necessary or advis ble that such portion not be issued by the Joint Board. COUNCILMEN Requested by Department of: Yeas �w� Nay Nicosia [n Favor Rettman Scheibel Sonnen __ Agei[lsl BY Tedesco Wilson AUG � R 1986 Form Approved by City Attorney Adopted by Council: Date S25�W��A1/ '° �.�.l.li Certified P•'s-� Coun '1 r BY �� �. gy, � Appr ve b Mavor. _ Al(r i L� ��6 Approved by Mayor for Submission to Council B _ sy PUBIISHED S E P 6 1986 PEO - ',Hou ng DEPARTMENT . ��-��° �1T� . 05"745 , _ - � Glori ' Bo rom � . CONTACT - , R PHONE DATE- ��� . Q.Q ASSIGN MUhBER FOWZ R ING ORDER C1 i Al l Locations for Si nature : partaient d�irec or Director of Management/Mayor Finance and �lana ement Services Director - 4 City Clerk Budget ai�recftor 3 Counci lman Wi lson ` ,�� � City Attorney �/ WHAT WILL BE ACHiIEY BY TAKING ACTION ON THE ATTACMED MATERII4LS? (Purpose/ AU� Z 6 �8 Rational e) : . �fTY �TTOI�N�� Preliminar approval of 1986 Joint Single Family Mort,gage Revenue Bond .. _ . _ Progra�n, a d authorization to the Joint Housing Finance Board to approve the issuan�e o bonds. COST BENfFIT BUpGET RY AND PERSONNEL IMPACTS ANTICIPATED: None - FINANCING SOURCE� AMD BUDGET ACTIVITY NUN�ER CHARGED OR CREDITED: (Mayor's signa- � ; ture not re- Totai Amou�t pf"T ansaction; N/A quired if und�r � �10,000) , Fun�ing Sources I��A Activity Numb�r: ry/A ATTACHMENTS Lis an Number All Attachments : ; . 1 . Counci Resolution - QEPARTMENT REVIEW CITY ATTORNEY REVIEW Yes No Counci Resolution Required? � Resolution Required? - Yes No Yes No Insura ce Required? Insurance Sr�fficient? Yes No Yes No Insura ce Attached: ; . . ' (SEE •REVERSE SIDE FOR INSTRUCTIONS) � � Revised 12/84 - ' , � � I � �- i��� , � � � � � � � � ��� , . RHM 52'lT RE OLUTION RECITING A PROPOSAL FOR A JOINT FINANCING PR GRAM TO FINANCE THE ACQUISITION AND REHABILITATION F SINGLE FAMZLY HOUSING; GIVING APPROVAL TO THE PR GRAM PURSUANT TO MINNESOTA STATUTES , CHAPTER 462C; AUT ORIZING THE ISSUANCE OF REVENUE BONDS AND MORTGAGE REDIT CERTIFICATES BY THE MINNEAPOLIS/SAINT PAUL HOUS NG FINANCE BOARD; AND AUTHORIZING THE PREPARATION OE • NE ESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROGRAM. WH I2EAS, (A Minnesota Statutes , Chapter 462C ( the "Act" ) confers upon ci ies, or housing and redevelopment authorities or port authori ies authorized by ordinance to exercise on behalf of a city tt► powers conferred by the Act, the power to issue revenue bonds and mortgage credit certificates to finance a programlfor the purposes of planning, administering , making or purchas ng, or causing to be made or purchased, loar.s to finance the acquisition, acquisition ar.d rehabilitation, or rehabil tation alone, of single family housing and rental housing within the boundaries of the city; � (B The Minneapolis Community Development Agency (the ' "MCDA" ) has been designated, by ordir.ance, to exercise on behalf f the City of Minneapolis, Minnesota the powers conferr d by the Act; ' (C� The City of Saint Paul , Mir.nesota has desig:�ated the Housing and Redevelopment Authority of the City of Saint Paul, Mir.neso a ( the "HRA" ) , by ordinance, to exercise, on behalf of Saint P ul, the powers conferred by the Act; (D� Pursuant to Minnesota Statutes, Section 471 .59 , the MCDA by Resolution No. 84-932 and the HR.A by Resolution No. 84-9/12 4 have approved and authorized execution of a Joint Powers greement dated December 1 , 1984 , creating the Minneap lis/Saint Paul Housing Fi::ance Board ( the "Joint Board" ) and both agencies have executed the ayreemer.t; � (E The City of Mir.neapolis by Resolutioa No. 8�R-481 and the Cit of Saint Paul by Resolution No. 84-1333 have approved the Joi t Powers Agreement, and both cities have executed an � acknowl dgement and acceptance of said agreement; �,,, � � -_, � ���- . __ - ., .� '� — � r r '_ ,,� .�' R1 ' t,..� � ' -�. �� .�^..n , -r� �;d �n O"? [�i �g-� _ � . . (F' The powers of the Joint Board have been ratified and confi d by 1985 Minnesota Laws, First Special Session, Chapter 14 , Article 8 , Section 30; (G The Joint Powers Agreement provides that the Joint Board m y exercise the powers of the MCDA and the HRA, and of the Cit es of Minneapolis and Saint Paul under Minnesota Statute , Chapter 462C if the appropriate agency and city have approve the financing program and authorized and designated the Joi t Board to undertake the financing program on their behalf; (H' It is now proposed that the MCDA and HRA, acting jointly or the Joint Board should undertake a program for the issuanc of revenue bonds or obligations or mortgage credit certifi ates pursuant to the Act to make or purchase or cause to be p rchased mortgage loans, or to purchase securities the proceed of which would be used to purchase mortgage loans, to finance the acquisition and/or rehabilitation, primarily by low and mod rate income persons and families, of single family housing l.ocated within the geographic boundaries of the two Cities the "Single Family Program" ) ; (I A public hearing on the Program and the,,�inancing therefo was held by the City Council on August a�S, 1986 after notice as published all as required by Minr.esota Statutes, Section 462C.04, subd. 2, at which public hearing all those appeari g who desired to speak were heard. - NO , THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, as follows: 1 . The City hereby approves the proposal that the City underta e the Program described above pursuant to Minnesota Statute , Chapter 462C, acting by and through the Joint Board. The Sin le Family Program shall consist of (a) the issuance of one or ore series of qualified mortgage bonds under Section 103A of' the �nternal Revenue Code in an aggregate principal amount ot� exceeding $24,500,000, and the use of the proceeds of such bonds to acquire mortgage loans, or to acquire securit� es the proceeds of which will be used to acquire mortgag loans or cause mortgage loans to be purchased, and the use of he proceeds of such loans to finance the acquisition, acquisi ion and rehabilitation, or rehabilitation alone, primari y by persons and families of low and moderate income, of sing e family housing units within the geographic boundaries of the ' ities, or (b) the issuance of mortgage credit I � , . . , �'� - /�� � , , �g .� certif cates pursuant to Section 25 of the nternal Revenue Code o 1954,, as amended, which certificate would/be issued in lieu o a portion of the qualified mortgage bonds; all as more fully escribed in the "Minneapolis-St. Paul �:��5ingle Family Housin Program" on file with the Cities. Taxabl�e bonds or obliga ions may also be issued in an amount to be determined. 2 At the option of the Joir.t Board (or the HRA and MCDA, if iss ing on their own behalf) , the financing may be , struct red so as to take advantage of whatever means are availa le and are permitted by law to enhance the security for, or mar etability of, the Bonds. 3 The Program and the issuance of revenue bonds or mortga e. credit certificates to finance the Program are hereby approv d by the City subject to: ( i) filing of the Program with t e Minnesota Housing Finance Agency ( "MHFA" ) ; ( ii) final approv. ?. by the Joint Board or the HRA and the MCDA, and by the purcha ers of the Bonds and others as to ultimate details of the Pr gram and the financing therefor. 4 Pursuant to Chapter 72 , St. Paul, Minnesota, Admini trative Code, the HRA is hereby designated, acting jointl with the MCDA, to implement the Programs and to issue bonds r other obligations or mortgage credit certificates to financ the Programs; provided that the bonds and certificates shall e issued, and the Program implsmented, by the Minnea olis/Saint Paul Housing Finance Board. - 5 The submission of the Program to MHFA in accordance with s bdivision 2 -of Section 462C.04, Minnesota Statutes, is hereby approved, ratified and confirmed and the submission to . MHFA o other information required by it is hereby approved, ratifi d and confirmed. 6 . Holmes & Graven, Chartered, and Brigys and Morgan, Profes ional Association, acting as co-bond counsel, and Dain Boswor Incorporated, Piper, Jaffray & Ho�wood Incorporated and Mi ler & Schroeder Financial, Inc. acting as investment banker , are authorized to assist in the preparation and review of nec ssary documents relating to the Program, to consult with purcha rs of the bonds and others as to the maturities, . intere t rates and other terms and provisions of the bonds and the te s and provisions of the mortgage credit certificates, • if any, and as to the covenants and other provisions of the necess y documents and to submit such documents to the Joint Board r final approval. , 7 Nothing in this Resolution or the documents prepared pursua t hereto shall authorize the expenditure of any munici al funds on the Programs, other than the revenues or assets derived from the Programs or funds otherwise granted to the Jo nt Board, City of Minneapolis, the City of Saint Paul, the MC A or the HRA for this purpose, except as otherwise set forth n resolutions adopted by the MCDA and HRA, prior to the issuan e of the bonds or mortgage credit certificates. Neither the bo ds nor any mortgage credit certificates shall constitute a char' e, lien or encumbrance, legal or equitable, upon any proper y or funds of the City or HRA except the revenues, assets and proceeds pledged to the payment thereof, nor shall the Ci y or, except as stated therein, HRA be subject to any liabil ' ty thereon. The holders of the bonds or mortgage credit certiflcates shall never have the right to compel any exercise of the taxing power of the City or HRA nor shall the holders of the bo ds be entitled to compel the City or HRA to pay the outsta ding principal on the bonds or the interest thereon, or to enf rce payment thereof against any property of the City or HRA ex ept the revenues and properties pledged thereto. The bonds hall recite in substance that the bonds, including the intere' t thereon, are payable solely from the revenues, assets and pr ceeds pledged to the payment thereof. Neither the bonds nor an mortgage credit certificates shall constitute a debt of the Ci y or HRA within the meaning of any constitutional or statut ry limitation. 8' Notwithstanding anything herein to the contrary, -a- > portio of the mortgage revenue bonds for the Programs may be issued' by the HRA acting alone, or by the HRA and MCDA, acting jointl , if it should appear necessary or advisable that such portio not be issued by the Joint Board. A opted by the City Council of the City of Saint Paul this d y of August, 1986. :O� CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM DATE: August 8, 1986 T0: Alaert Olson FROM; Sheri Pemberton � PED SUBJECT: CITY COUNCIL PUBLIC HEARING FOR AUGUST 28, 1986 Attached 's a copy of the public hearing, which is being published in the St. Paul egal Ledger and the St. Paul Pioneer Press and Dispatch on Tuesday, ugust 12 , 1986 and Monday, August 11, 1986, respectively. Please pl ce this Public Hearing on the City Council Agenda for Thursday, August 2 , 1986. A City Council Resolution will be forwarded to you by the Ci y Attorney's Office, prior to the City Council Meeting. Thank you. SAP:1 k Attachmen cc ; Sue abbath Glor a Bostrom � '� � � � ,.�-< . —?,;-> C�J _..J f-- _� �� � m �^rr� � 0 _�_;� �'�a :-.�� _.._� C� C"�> fT"r u7 � • . i �M 522T NOTICE OF PUBLIC HEARING ON PROPOSAL FOR HOUSING PROGRAM UNDER MINN. STAT. CH. 462C TO WHO IT MAY CONCERN: N TICE IS HEREBY GIVEN that the City Council of the City of St. Paul will meet in the City Council Chambers at the City Hal l i the City of St . Paul , Minnesota at 7.p o' clock a.m . on , 1986, to consider a proposal that the City undert ke the proyram described below pursuant to the City' s housin plan under Minnesota Statutes, Chapter 462C. The progra described below will be financed by the issuance of revenu bonds , or mortgage credit certificates, as appropriate . I is further proposed that the program described below should be undertaken, jointly, by the Minneapolis Community Develo ment Agency and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (jointly, the "Autho ities" ) who will delegate their powers to undertake the progra , and to issue revenue bonds or mortgage credit certif cates in connection therewith to the Minneapolis/Saint Paul H using Finance Board (the "Board" ) . T e specific program proposed to be undertaken is as follow : Single Family Mortgage Loan Program T e program will consist of the making of below-marke t intere t rate mortgage loans with respect to owner-occupied housin . The housing to be financed thereby will consist of a mixtur of new construction projects, existing housing , townho ses and limited equity cooperatives. Acquisition and rehabi itation, or rehabilitation only, of existing housing will a so be included. It is anticipated that the mortgag e loans ill be made beginning in 1987 . The bonds to be issued for th s program will be a "qualified mortgage issue" under Sectio 103A of the Internal Revenue Code and will utilize the annual statutory allocation of qualified mortgage bond author ty of the City of Saint Paul . It is anticipated that the pr ram will be financed throuyh bonds or other obligations issued by the Board , the interest on which may be either �, � . , , , � 6- i�a� , A the time and place fixed for the public hearing, the City C ' uncil of the City of St. Paul, Minnesota will give all person who appear at the hearing an opportunity to express their iews with respect to the program described above. Writte' comments may be submitted and will be considered if submit ed on or prior to the date of the hearing. D ted this sTx day of August, 1986. BY ORDER OF THE: CITY COUNCIL OF THE CITY OF ST. PAUL B y �/ n 11,P,-r n i��,�, Its Clerk 3 � . ` , . ' , . . , � taxabl or tax-exempt. Mortgage credit certificates may be issued in lieu of bonds which would otherwise by tax-exempt under ection 103A of the Internal Revenue Code. T e estimated principal amount of tax-exempt bonds or other bligations to be issued to finance the program described above ill not exceed $24,500,000; provided that, to the extent permit ed by law, a portion of this amount may be converted to mortga e credit certificates under Section 25 of the Internal Revenu Code. In addition, taxable bonds or other obligations may be issued to finance some or all of the portions of the progra described above. The amount of such taxable bonds or other bligations has yet to be determined. The bonds or other obliga ions, or mortgage credit certificates, will be issued by the Bo rd, pursuant to authority delegated to it by the Cities of Min eapolis and Saint Paul, and by the Authorities. S id bonds or other obligations, as and when issued, will not co stitute a charge, lien or encumbrance upon any property of the Cities of Minneapolis or Saint Paul, or the Authorities, or the Board, except the assets of the program described above and th revenues to be derived therefrom. Such bonds or obliga ions will not be a charge against either City' s or either Authority' s general credit or taxing powers, and are payabl solely from sums to be paid by the persons or entities to who loans are made pursuant to revenue agreements or promis ory notes. F rther information concerning the program described above may be obtained from either: M nneapolis Community Development Agency 6 0 Midland Square 3 1 Second Avenue South M nneapolis, Minnesota 55401 T lephone: (612) 348-7101 or H using and Redevelopment Authority of the City of Saint Paul, Minnesota 2 West Fourth Street C ty Hall Annex - 12th Floor S . Paul, Minnesota 55102 T lephone: (612) 292-1577 2