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85-1009 WHITE - CI7V CLERK PINK - FINANCE G I TY OF SA I NT PA U L Council �,�.,_ �� '' CAINARV�-:�EPARTMENT BLUE - MAVOR File .NO. � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 8. Notwithstanding anything herein to the contrary, a portion of the mortgage revenue bonds for the Programs may be issued by the HRA acting alone, or by the HRA and MCDA, acting jointly, if it should appear necessary or advisable that such portion not be issued by the Joint Board. COUNCILMEIV Requested by Department of: Yeas p�etcher Nays � Drew In Favor Masanz Nicosia � Scheibel __ Against BY -�eda�ss�- _ �1lilserr- AUG � t98� Form Approved by City Attorney Adopted by Council: Date Certified a • ou cil cr BY �•l��-�'�1"%��R.�J`f.-�-� B � A�pp by lNavor: Date AUG 5 �p� Approved by Mayor for Submission to Council By BY PUBLISHED AU G l 0 198'S 1�,�---- ��-.��a� � � .. ;� � ,- .�-�: - . � . ������ 'NOTYCE OF PUBLIC HEARING ON PROPOSALS FOR - .; , .T-AOUSING PROGftA1rI.UNDER MIN1V, STAT.CA.462C _ :.. .. ;.,,., , _-- _ ,_... TO 9VFiOM IT 14SAY CONCERN: ' NOTICE IS HEREBy GIVEN that the City Council of the Gity of Saint Paul. Minnesota will meet in the Citq Council Chambers at the City Hall in the City of Saint Paul, Minnesota at 10:00 o'clock a.m. on August 1, 1985, to consider a proposa�that the City undertake the progrdrn described below pursuant to the City's housing plan under Minnesota Statutes, .Chapter 462C. The program described below will be financed by the issuance of revenue bonds.or mortgage credit certificates,as ap,propriate. � It is further proposed that the program described below should be undertaken,jointly, by the Minneapolis Community DeveIopment Agency and the Housing and Redevelopment Authority of the City of Saint Paul,Minnesota (jointly, the "Authorities") who will delegate their powers to undertake the program,and to issue revenue bonds or mortgage credit certificates in connection therewith to the Minneapolis/Saint Paul Housing Finance goard(the"Board"). The specific program proposed to be underaken are the following: Single Family Mortgage Loan Portion of Prograai, This portion of the program will consist of the making of below-market . interest rate mortgage loans with respect to owner-occupied housing.The housing to be financed thereby would consist of a auxture of new construction projects, existing housing, townhauses and limited equity cooperatives. It is anticipated that the mortgage loans will be made beginning in 1986.A portion of the bonds to be issued for this part of the program will be a"qualified mortgage issue"uncter Section 103A of the Internal Revenue Code and will utilize the annual statutory ' allocation of qualified mortgage bond authority of the City of Saint Paul. A portion of the bonds to be issued for this part o�the program would be issued under the City of Minneapolis' special authority p�uant to Section 1104(n)of the Mortgage Subsidy Bond Tax Act. It is.anticipated that this part of the program will be financed through bonds or other obligations issued by the Board, the interest on which may be either taxable or tax-exempt. Mortgage credit certificates may be issued in lieu of bonds which would otherwise be tax-exempt under Section 103A of the Internal Reyenue Code. Energy Bank portion of Program, � This� portion of the program a►ill consist of •.the improvement loana_ ior;oyvner:occupied housing locatedmia�th��Citi�eaergy�:� M��aPolis and Saint Paul.Ttie luans wili _ _,_ _ . to uP�rade the eneray eifici ��hoa�e iaiprove't�ents�designeci or improyement of those resid�enc ssThe�o�a�ld�bY�Le rehabilitation in 1985 and extending through 1986.This portion of t�he�to be made beginrung financed, in part, by bonds or other obligations issued pu�rsuant tophe City of Saint Paul's statutory allocation of bonding authori Intemal Revenue Code, and, in tY under Section 103A of the authority under Section 11 part, by utilization of the City of Minneapolis' anticipated that this portian og�the prog m g��l be fiaa ced�thro� Act. It is other obligations issued by the Board, the interest on which may be either taxable or tax-exem t.Mort �bonds or which would othe�vise be age credit certificates may be issued in lieu of bonds Revenue Code. ��empt under Se�tion 103A of the Iaternal Energy Loans for Itental Properties_ _ � This portion of the program a,lll�nsist of the malsing of loans to the.owners of residential rental properties for the purpose of financin improvements, The loans are ex g energy extending i,nto 1987. The loans will finanCe ��iehabilita ton�and g � 1985 and designed to upgrade the energy efficiency of the rental housia �p��Qm�ts anticipated that this portion of the pmgrar��ay utilize loan insu�rance pro�d d by the Minnesota Housing Finance Agen�y, subsidp provided throu Ba�k Program administered by the Minnesota Housing_Finance � S°lar credit agreemeats with local financial institutions. It is anticipat� that' t�his _. portioa of the program will be financed through bonds or other obligations issued by the Board,the i,qterest on which may be eittter tax_exempt or taxable_ C�'',,� ��=/� �'� I�ehabilitation Portion oi Program for Si�gle Family Housing. This portion of the program will consist of the continuation of the"Project Renovate"program of the Minneapolis Community Development Agency. This portion of the program will provide subordinated loan financing to the owner- occupants of single family housing to finance rehabilitation and improvement of one-to-four family residences. It is anticipated that this portion of the program wili be financed. in part, by bonds or other abligations issued pursuant to the - Citq of Minneapolis' authority under Section 1104(n) of the Mortgage Subsidy Bond Tax Act,in part;by bonds or other obli�ations issued pursuant to the City of Minneapolis'annual statutory. allocation of bonding authority under Section 103A of the Interaal Aevenue Code,and in part by the issuance of taxable bonds by the Board.•In lieu of issuing bonds pursuant to Section 103A of._the Internai Revenue Code, this program may be financed, in part, by the issuance by the Board of mortgage credit certificates. - . The estimated principai amount of tax-exemptbonds or other obligations to be issued to finance the programs described-above would be approximately $40,000,000; provided that, to the extent permitted by law, a portion of this amount may be converted to mortgage credit certificates under Sectioa 25 of the Internai Re�enue Code. In addition, taxable bonds or other obligations may be issued to finance some or all of the portions of the program described above.The ' amount of such taxable bonds or other obligations has yet to be determined.The bonds or other obligations, or mortgage credit certificates,wili be issued by the Board, pursuant to authoritq delegated to it bp the Cities of Minneapolis and Saint Paul,and by the Authorities. _,.. _ �__:; Saisi bonds or other obligations, as and when issued, will not constitute 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 the revenues to be derived therefrom. Such bonds or obligations will not be a charge against either City's or either Authority's general credit or taxing powers, and are payable solely from sums to be paid by the persons or entities to whom loans are made pursuant to revenue agreements-or•�: promissory notes. , , Further information concerning the program described above may be obtained from either: - Minneapolis Community Development Agency 600 Midland Square 331 Second Avenue South � " Minneapolis,Minnesota 55401 Telephone:(612)348-7101 ` . or ; 1_ ., _ . Housing and Redevelopme�t Authority of the City of Saint Paul,Minnesota ' 25 West Fourth Street - , _ City Hall Annex— 12th Floor - ; St.Paul,Minnesota 55102 ' . Telephone:(612)292-157? � _ , , At the time and place fixed for the public hearing,the City Councii of the City of Saint Paul, Minnesota will give all persons who appear at the hearing an opportunitq to express their views with respect to the program described above. Written comments may be submitted and will be considered if.submitted on or prior to the date of the hearing. Dated this 12th day of July� 1985. - . :, ,. . ' , �._ : BY ORDEA OF: - .. � �:. , City Council of the City of ` �� __. Saint Paul,Minnesota - , By ALBERT OLSON,Its City Clerk � __---------- i�ix�.ir_l�._l9$_�_ -� . �: ; _.___ .---- ,-- M�HITE - CITV CLERK PINK - FINANCE GITY OF SAINT PAUL Council p�.., _l�� 9 ♦ CAyIARV - CfEPARTMENT File NO. Q BLUE • - MAVOR � Coun i Resolution Presented By c ` Referred o Committee: Date Out of Committee By Date RESOLUTION RECITING A PROPOSAL FOR TWO JOINT FINANCING PROGRAMS TO FINANCE THE ACQUISITION AND REHABILITATION OF SINGLE FAMILY HOUSING AND RENTAL HOUSING GIVING APPROVAL TO THE PROGRAMS PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, AUTHORIZING THE ISSUANCE OF REVEN[JE BONDS AND MORTGAGE CREDIT CERTIFICATES BY THE MINNEAPOLIS/ SAINT PAUL HOUSING FINANCE BOARD, OR BY THE HOUSING AND REDEVELOPMENT AUTHORITY AND THE MINNEAPOLIS COMMUNITY DEVELOPMENT AGENCY, AND AUTHORIZING THE SUBMISSION OF THE FINANCING PROGRAM FOR APPROVAL TO THE MINNESOTA HOUSING FINANCE AGENCY AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROGRAM. WHEREAS, (A) Minnesota Statutes, Chapter 462C (the "Act") confers upon cities, or housing and redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a city the powers conferred by the Act, the power to issue revenue bonds and mortgage credit certificates to finance a program for the purposes of planning, administering, making or purchasing, or causing to be made or purchased, loans to finance the acquisition, acquisition and rehabilitation, or rehabilitation alone, of single family housing and rental housing within the boundaries of the city; COUfVCILMEN Requested by Department of: Yeas Fletcher Nays Drew [n Favor Masanz Nicosia sche�ber __ Against BY Tedesco Wilson Adopted by Council: Date Form Approv y City At orney Certified Yassed by Council Secretary BY By� t�pproved by �Navor: Date Approved by Mayor for Submission to Council By _ By . S�s i�� � . . (B) The Minneapolis Community Development Agency (the "MCDA") has been designated, by ordinance, to exercise on behalf of the City of Minneapolis, Minnesota the powers conferred by the Act; (C) The City of Saint Paul, Minnesota has designated the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") , by ordinance, to exercise, on behalf of Saint 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 Powers Agreement dated December 1, 1984, creating the Minneapolis/Saint Paul Housing Finance Board (the "Joint Board") , and both agencies have executed the agreement; (E) The City of Minneapolis by Resolution No. 84R-481 and the City of Saint Paul by Resolution No. 84-1333 have approved the Joint Powers Agreement, and both cities have executed an acknowledgement and acceptance of the agreement; (F) The powers of the Joint Board have been ratified and confirmed by 1985 Minnesota Laws, First Special Session, Chapter 14, Article 8, Section 30; (G) The Joint Powers Agreement provides that the Joint Board may exercise the powers of the MCDA and the HRA, and of the Cities of Minneapolis and Saint Paul under Minnesota Statutes, Chapter 462C if the appropriate agency and city have approved the financing program and authorized and designated the Joint 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 two programs, one 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 two Cities (the "Single Family Program" ) , and the second program for the issuance of revenue bonds or obligations to make or purchase or cause to be . , �'� � J D � � purchased loans, or to purchase securities the proceeds of which would be used to purchase loans, to finance the acquisition and rehabilitation, or rehabilitation alone, of multi-family rental housing to be occupied, in part, by low or moderate income persons and families, and located within the geographic boundaries of the two Cities (the "Rental Program" ) ; (I) A public hearing on the Programs and the financing therefor was held by the City Council on August 1, 1985 after notice was published all as required by Minnesota Statutes, Section 462C.04, subd. 2, at which public hearing all those appearing who desired to speak were heard. NOW, 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 undertake the Programs described above pursuant to Minnesota Statutes, Chapter 462C, either acting by and through the HRA (which will act jointly with the MCDA) or through the Joint Board. The Single Family Program shall consist of (a) the issuance of one or more series of qualified mortgage bonds in an aggregate principal amount not exceeding $40,994,000, and the use of the proceeds of such bonds to acquire mortgage loans, or to acquire securities the proceeds of which will be used to acquire mortgage loans or cause mortgage loans to be purchased, and the use of the proceeds of such loans to finance the acquisition, acquisition and rehabilitation, or rehabilitation alone, primarily by persons and families of low and moderate income, of single family housing units within the geographic boundaries of the Cities, or (b) the issuance of mortgage credit certificates pursuant to Section 25 of the Internal Revenue Code of 1954, as amended, not exceeding $3,200,000 in aggregate amount, which certificates would be issued in lieu of a portion of the qualified mortgage bonds; all as more fully described in the "Minneapolis-St. Paul 1985 Single Family Housing Program" on file with the Cities. The Rental Program shall consist of the issuance of one or more series of rental housing revenue bonds in the aggregate principal amount of approximately $3,000,000, and the use of the proceeds of such bonds to acquire loans, or to acquire securities the proceeds of which will be used to acquire loans or cause loans to be purchased, and the use of the proceeds of , �-_ ��0 9 such loans to finance the acquisition, acquisition and construction or rehabilitation, or rehabilitation alone, of rental housing within the geographic limits of the Cities, and such rental housing will be occupied, in part, by low-income persons and families. 2. At the option of the Joint Board (or the HRA and MCDA, if issuing on their own behalf) , the financing may 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. 3. The Program and the issuance of revenue bonds or mortgage credit certificates to finance the Program are hereby approved by the City subject to: (i) the approval of each of the Programs by the Minnesota Housing Finance Agency ( "MHFA" ) ; (ii) final approval by the Joint Board or the HRA and the MCDA, and by the purchasers of the Bonds and others as to ultimate details of the Program and the financing therefor. 4. Pursuant to Chapter 72, St. Paul, Minnesota, Aclministrative Code, the HRA is hereby authorized and directed, acting jointly with the MCDA, to implement the Programs and to issue bonds or other obligations or mortgage credit certificates to finance the Programs. The bonds and certificates may be issued, and the Program implemented, by the Minneapolis/Saint Paul Housing Finance Board if the MCDA and HRA so determine. 5. The submission of each of the Programs to MHFA for its approval in accordance with subdivision 2 of Section 462C.04, Minnesota Statutes, is hereby approved, ratified and confirmed and the submission to MHFA of other information required by it is hereby approved, ratified and confirmed. 6. Holmes & Graven, Chartered, and Briggs and Morgan, Professional Association, acting as co-bond counsel, and Dain Bosworth Incorporated, Piper, Jaffray & Hopwood Incorporated and Miller & Schroeder Municipals, Inc. acting as investment bankers, are authorized to assist in the preparation and review of necessary documents relating to the Programs, to consult with the City Attorney, purchasers of the bonds and others as to the maturities, interest rates and other terms and provisions of the bonds and the terms and provisions of the , , , , � ��� /�� 9 mortgage credit certificates, if any, and as to the covenants and other provisions of the necessary documents and to submit such documents to the Joint Board or the MCDA and HRA for final approval. 7. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Programs, other than the revenues or assets derived from the Programs or funds otherwise granted to the Joint Board, City of Minneapolis, the City of Saint Paul, the MCDA or the HRA for this purpose, except as otherwise set forth in resolutions adopted by the MCDA and HRA, prior to the issuance of the bonds or mortgage credit certificates. Neither the bonds nor any mortgage credit certificates shall constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City or HRA except the revenues, assets and proceeds pledged to the payment thereof, nor shall the City or, except as stated therein, HRA be subject to any liability thereon. The holders of the bonds or mortgage credit certificates shall never have the right to compel any exercise of the taxing power of the City or HRA nor shall the holders of the bonds be entitled to compel 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 except the revenues and properties pledged thereto. The bonds shall recite in substance that the bonds, including the interest thereon, are payable solely from the revenues, assets and proceeds pledged to the payment thereof. Neither the bonds nor any mortgage credit certificates shall constitute a debt of the City or HRA within the meaning of any constitutional or statutory limitation. P.E.D. DEPARTMENT �"��d� 9 NO 1945 Gloria Bostrom CONTACT 7494 Ext. 25R � PHONE � � 7/26/85 DATE e ,r e e AS GN NUMBER FOR R�UTING ORDER Cli All Locations for Si nature : Department Director Director of Management/Mayor Finance and Management Services Director 4 City Clerk Budget Director 3 Councilman Wilson � City Attorney WHAT WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Rationale) : Public Hearing, Preliminary Approval and authorization to submit financing program to MHFA for financing programs for Single-family Housing and Rental Housinq together with City of Minneapolis. Final approval will be given by HRA Board and Mpls./St. Paul Housing Finance Board. COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: None FINANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- ture not re- Total Amount of Transaction: N/A quired if under $10,00Q) Funding Source: N/A Activity Number: 33520 ATTACHMENTS (List and Number All Attachments) : City Council Resolution DEP RTMENT REVIEW CITY ATTORNEY REVIEW Yes �o Council Resolution Required? Resolution Required? Yes No Yes No Insurance Required? Insurance Sufficient? Yes No Yes No Insurance Attached: (SEE REVERSE SIDE FOR INSTRUCTIONS) Revised 12/84 HOW TO USE TH� GREEN SHEET The GREEN SHEET has several PURPOSES: . , 1. to assist in routing documents a,nd in securing required signatures 2. to brief the reviewers of documents on the impacts of approval 3. to help ensure that necessary supporting materials are prepared, and, if required, attached. Providing complete information under the listed headings enables reviewers to make decisions on the documents and eliminates follow-up contacts that may delay execution. The COST/BENEFIT, BIIDGETARY AND PERSONNEL IMPACTS heading provides space to explain the cost/benefit aspects of the decision. Costs and benefits related both to City budget (General Fund and/or Special Funds) and to broader financial impacts (cost to users, homeowners or other groups affected by the action) . The personnel impact is a description of change or shift of Full-Time Equivalent (FTE) positions. If a CONTRACT amount is less than $10,000, the Mayor's signature is not required, if the department director signs. A contract must always be first signed by the outside agency before routing through City offices. Below is the preferred ROUTING for the five most frequent types of c�ocuments: CONTRACTS (assumes authorized budget exists) 1. Outside Agency 4. Mayor 2. Initiatinq Department 5. Finance Director 3. City Attorney 6. Finance Accounting ADMINISTRATIVE ORDER (Budget Revision) ADMINI5TRATIVE ORDERS (all others) 1. Activity Manager 1. Initiating Department 2. Department Accountant 2. City Attorney 3. Department Director 3. Director of Management/Mayor 4. Budget Director 4. City Clerk 5. City Clerk 6. Chief Accountant, F&M5 COUNCIL RESOLUTION (Amend. Bdgts./Accept. Grants) COUNCIL RESOLUTION (all others) 1. Department Director 1. Initiating Department 2. Budget Director 2. City Attorney 3. City Attorney 3. Director of Management/Mayor 4. Director of Management/Mayor 4. City Clerk 5. Chair, Finance, Mngmt. & Personnel Com. 5. City Council 6. City Clerk 7. City Council ' 8. Chief Accountant, F&MS SUPPORTING MATERIALS. In the ATTACHMENTS section, identify all attachments. If the Green Sheet is well done, no letter of transmittal need be included (unless signing such a letter is one of the requested actions) . Note: If an agreement requires evidence of insurance/co-insurance, a Certificate of Insurance should be one of the attachments at time of routing. Note: Actions which require City Council Resolutions include: l. Contractual relationship with another governmental unit. 2. Collective bargaining contracts. 3. Purchase, sale or lease of land. 4. Issuance of bonds by City. 5. Eminent domain. 6. Assumption of liability by City, or granting by City of indemnification. 7. Agreements with State or Federal Government under which they are providing funding. 8. Budget amendments. • . . � � �..s-�ao y' � � ;�.; CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM FtLEO DATE: Jul y 12, 1985 ���� �� i± td� �;;� ��j� T0: Albert Olson, City Clerk ��' � � ' + ":'^� ^�;-���� .: � ; FROM: Sheri Pemberton, Dept. of PED � RE: City Council Pu61ic Hearing for August 1 , 1985 Attached is a copy of the Pu61ic Hearing Notice, which was published in tfie St. Paul Legal Ledger and the St. Pau1 Pioneer Press and �ispatch on Tuesday, July 16, 1985, and N!onday, July 15, 1985, respectively. Please place this Pu61ic Hearing on the City Council Agenda for Thursday, August l , 1985. A Ci:ty Council Resalu�ion wi'11 be forwarded to you by the City Attorney"s Offi�ce, pri�or to the City Council Nleeting. Thank you. SAP;msh Attachment cc: gecky Hartman, Glori'a �ostrom . . ��--i�� 9 � NC�TICE OF PUBLIC HEARING ON PROPOSALS FOR HOUSING PROGRAM UNDER MINN. STAT. CH. 462C TO WHOM IT MAY OONCERN: � NOTICE IS HEREBY GIVEN that the City Council Of the City of Saint Paul , Minnesota will meet �n the Cit� Council Chambers at tYie City Hall in the City of Saint Paul , Minnesota at 10:00 0' clock a.m. on AuQust 1 , 1985, to consider a proposal that the City undertake the program described below pursuant to the City' s housing plan under Minnesota Statutes, Chapter 462C. The program described below will be financed by the issuance of revenue bonds, or mortgage credit certificates, as appropriate. It is further proposed that the program described below should be undertaken, jointly, by the Minneapolis Community Development Agency and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota ( jointly, the "Authorities" ) who will delegate their powers to undertake the program, and to issue revenue bonds or mortgage credit certificates in connection therewith to the Minneapolis/Saint Paul Housing Finance Board (the "Board" ) . The specific program proposed to be undertaken are the following: Single Family Mortgage Loan Portion of Program. This portion of the program will consist of the making of below-market interest rate mortgage loans with respect to owner-occupied housing. The housing to be financed thereby would consist of a mixture of new construction projects, existing housing, townhouses and li.mited equity cooperatives . It is anticipated that the mortgage loans will be made beginning in 1986. A portion of the bonds to be issued for this part of the program will be a "qualified mortgage issue" under Section 103A of the Internal Revenue Code and will utilize the annual statutory allocation of qualified mortgage bond authority of the City of Saint Paul. A portion of the bonds to be issued for this part of the program would be issued under the City of Minneapolis' special authority pursuant to Section 1104(n) of the Mortgage Subsidy Bond Tax Act. It is anticipated that this part of the program will be financed . . � �'�'- ��`-�' 9 through bonds or other obligations issued by the Board, the interest on which may.be either taxable or taxexempt. Mortgage credit certificates may be issued in lieu of bonds which w�ould otherwise by tax-exempt under Section 103A of the Internal Revenue Code. Energy Bank Portion of Program. This portion of the program will consist of the making of energy improvement loans for owner-occupied housing located in the Cities of Minneapolis and Saint Paul. The loans will finance home improvements designed to upgrade the energy efficiency of single family residences by the rehabilitation or improvement of those residences. The loans are expected to be made beginning in 1985 and extending through 1986. This portion of the program is expected to be financed, in part, by bonds or other obligations issued pursuant to the City of Saint Paul ' s statutory allocation of bonding authority under Section 103A of the Internal Revenue Code, and, in part, by utilization of the City� of Minneapolis' authority under Section 1104(n) of the Mortgage Subsidy Bond Tax Act. It is anticipated that this portion of the program will be financed through bonds or other obligations issued by the Board, the interest on which may b e either taxable or tax-exempt. Mortgage credit certificates may be issued in lieu of bonds which would otherwise by tax-exempt under Section 103A of the Internal Revenue Code . Energy Loans for Rental Properties. This portion of the program will consist of the making of loans to the owners of residential rental properties for the purpose of financing energy improvements. The loans are expected to .be made beginning in 1985 and extending into 1987 . The loans will finance rehabilitation and improvements designed to upgrade the energy efficiency of the rental housing projects. It is anticipated that this portion of the program may utilize loan insurance provided by the Minnesota Housing Finance Agency, subsidy provided through Solar Bank Program administered by the Minnesota Housing Finance Agency, and credit agreements with local financial institutions. It is anticipated that this portion of the program will be financed through bonds or other obligations issued by the Board, the interest on which may be either tax-exempt or taxable. 2 , . �'.�''_/o 0 9 Rehabilitation Portion of Program for Single Family Housing. This portion fo the program will consist of the continuation of the "Project Renovate" program of the Minneapolis Community Development Agency. This portion of the program will provide subordinated loan financing to the owner-occupants of single family housing to finance rehabilitation and improvement of one-to-four family residences. It is anticipated that this portion fo the program will be financed, in part, by bonds or other obligations issued pursuant to the City of Minneapolis' authority under Section 1104(n) of the Mortgage Subsidy Bond Tax Act, in part, by bonds or other obligations issued pursuant to the City of Minneapolis' annual statutory allocation of bonding authority under Section 103A of the Internal Revenue Code, and in part .by the issuance of taxable bonds by the Board. In lieu of issuing bonds pursuant to Section 103A of the Internal Revenue Code, this program may be financed, in part, by the issuance by the Board of mortgage credit certificates. The estimated principal amount of tax-exempt bonds or other obligations to be issued to finance the programs described above would be approximately $40, 000,000; provided that, to the extent permitted by law, a portion of this amount may be converted to mortgage credit certificates under Section 25 of the Internal Revenue Code. In addition, taxable bonds or other obligations may be issued to finance some or all of the portions of the program described above. The amount of such taxable bonds or other obligations has yet to be determined. The bonds or other obligations, or mortgage credit certificates, will be issued by the Board, pursuant to authority delegated to it by the Cities of Minneapolis and Saint Paul, and by the Authorities . Said bonds or other obligations, as and when issued, will not constitute a charge, lien or enciunbrance upon any property �the Cities of Minneapolis or Saint Paul, or the Authorities , or the Board, ex°cept the assets of the program described above and the revenues to be derived therefrom. Such bonds or obligations will not be a charge against either City' s or either Authority' s general credit or taxing powers, and are payable solely from sums to be paid by the persons or entities to whan loans are made pursuant to revenue agreements or promissory notes . Further information concerning the program described above may be obtained fram either: Minneapolis Community Development Agency 600 Midland Square 331 Second Avenue South Minneapolis, Minnesota 55401 Telephone: (612) 348-7101 3 _ , . . �`� - �ao9 or Housing and � Redevelopment Authority of the City of Saint Paul, Minnesota 25 West Fourth Street City Hall Annex - 12th Floor St. Paul, Minnesota 55102 Telephone: (612 ) 292-1577 At the time and place fixed for the public hearing, the City Council of the City of Saint Paul , Minnesota wi.11 give all persons who appear at the hearing an opportunity to express their views with respect to the program described above. Written comments may be submitted and will be considered if submitted on or. prior to the date of the hearing. Dated this 12th day of ,T„i� , 1985 . BY ORDER OF: City Council of the ('itt� nf Caint P���1TMi., �,ta Bl �S � Q�}IPYt n�C�YIn _ _ _ Its r.;r3� �1 Pr�: � 4