281063 M�FII7E 'C�TV CLERK COl1RC11 �./�!"■ ��L�
�INK FINANCE
CANARV - DEPARTMENT GITY OF SAINT PALTL .i'� eaR��
BLUE - MAYOR File NO. ''�J.� ��
�
' Council Resolution
�:
Presented By
, Referred To Committee: Date
Out of Committee By Date
Resolution amending Resolution No. 280726 adopted
August 11, 1983, relating and giving preliminary approval to a �
financing program for owner-occupied multifamily housing
development pursuant to Minnesota Statutes, Chapter 462C, and
authorizing the HRA to exercise the powers conferred on the
City by Chapter 462C; providing for the joint and cooperative
exercise of the powers of the City under said program and those
of the City of Minneapolis under a similar program heretofore
adopted by that City, including the joint issuance of Housing
Development Revenue Bonds and the joint use-of the proeeeds
thereof for the implementation of both programs.
WHEREAS, pursuant to Minnesota Statutes, Chapter 462C
(the "Act") and after public hearing as required thereby, the
City on August 11, 1983, adopted a resolution entitled "Resolu-
tion Reciting a Proposal for a Financing Program for Owner-
Occupied Multifamily Housing Development, Giving Preliminary
Approval to the Program Pursuant to Minnesota Statutes, Chapter
462C, and Authorizing the HRA to Exercise the Powers Conferred
by the City by Minnesota Statutes, Chapter 462C, " subject to
approval of the program referred to in said resolution by the
Minnesota Housing Finance Agency (MHFA) , which approval was
granted by Ng3FA on August 25, 1983; and
WHEREP,S, it is proposed that pursuant to Minnesota
Statutes, Section 471.59 (the Joint Powers Act) the HRA should
exercise its powers under said program and this Resolution
jointly and cooperatively with the Minneapolis Community
Development Agency (the "Agency") (which has been authorized,
on behalf of the City of Minneapolis, to exercise the powers
conferred an-t�e �ity of Minneapolis by the Act) in the
exercise of its powers under a similar program also approved by
Nff3FA on September l, 1983, through the offering and sale and
�
COUIVCILMEN Requested artment of:
Yeas Nays
Fletcher
�e��� In Favor
Masanz —
Nicosfa
scne�bei _ A gai n s t BY
Tedesco
W ilson
Form Approved by City Attorney
Adopted by Council: Date � � �
Certified Passed by Council Secretary gy ��'��%�W''�-�r/�r��
By
tlpproved by Mavor: Date _ Approved by Mayor for Submission to Council
By BY
► • �V��?!
joint use of the proceeds of a single issue of Homeownership
Revenue Bonds, and it is determined that such action will
substantially improve the economic viability and security and
lower the cost of the financing, by reducing sale expenses and
by permitting the use of proceeds of the Bonds at the times and
in the amounts needed for loans to persons acquiring housing
units in projects as they become ready for occupancy, thus
expediting the receipt of loan repayments providing revenues
for the payment of debt service; and
WHEREAS, a form of Joint Powers Agreement (the "Joint
Powers Agreement") to be entered into by and between the Agency
and the HRA, and to be acknowledged and accepted by the Cities
of St. Paul and Minneapolis, has been submitted to this Council
for approval; and
WHEREAS, under Laws 1981, Chapter 222, Section 6 (the
Allocation Act) , and pursuant to Section 103A (g) (6) (A) of the
Internal Revenue Code of 1954, as amended (the Code) , the
legislature has allocated to Minneapolis $16,000,000 and to St.
Paul $8,500,000 of the "state ceiling" established by the Code
on the aggregate amount of "qualified mortgage bonds" issued by
the State and its political subdivisions in each calendar year,
and the Homeownership Revenue Bonds to be issued pursuant to
the financing programs approved by NgiFA for the cities will be
qualified mortgage bonds within the meaning of the Code and are
within these allocations, respectively, for the year 1983, but
the joint conduct of the programs contemplated herein could
result in the disbursement of Bond proceeds for loans for
projects within either City in an amount larger or smaller than
the annual amount assigned to that City in the Allocation Act,
and
WHEREAS, under Section 462C.09, Subdivision 4, of the
Act, the approval by MHFA of financing programs, whether before
or after dates provided in that section, is effective in
allocating a portion of the state ceiling, and programs
approved by MHFA may be amended with the approval of NII-iFA,
provided that the dollar amount of Bonds for the program may
not be increased, and it is proposed that the amount of Bonds
to be issued for the joint financing pro ram in 1983 shall in
no event exceed the aggregate amount of �24,500,000 heretofore
approved for the programs to be combined;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUI�TCIL OF
THE CITY OF ST. PAUL:
1. Pursuan� to the direction and authorization to
the HRA to issue the Homeownership Revenue Bonds, the Joint
Powers Agreement is hereby approved in substantially the form
2 � �
� , /�����
submitted to this Council, and the Mayor and Clerk are hereby
authorized and directed to execute and deliver the same upon
execution thereof by the City of Minneapolis, the Agency and
the HRA.
2. Subject to adoption of a concurrent resolution by
the City Council of the City of Minneapolis, and subject to
approval by NIIIFA, it is determined that:
(a) Pursuant to the Joint Powers Act the financing
program referred to in the preamble hereof shall be
undertaken, and the City' s powers thereunder shall be
exercised, jointly and cooperatively with the Agency and
the City of Minneapolis in the exercise of their similar
powers under the 1983 financing program heretofore
approved by the Minneapolis City Council and by NII3FA.
(b) To implement the joint financing program the
Cities of Minneapolis and St. Paul, acting by and through
the Agency and the HRA, respectively, shall sell and
deliver in 1983 a single issue of Homeownership Revenue
Bonds constituting qualified mortgage bonds within the
meaning of the Code and regulations thereunder, in a
principal amount not to exceed $24,500,000, and shall
disburse the proceeds thereof in the making or purchase of
mortgage loans to finance the acquisition of owner-
occupied single family housing units in projects which
have been or may be included in the programs of the Cities
in accordance with law, and in the establishment of
reserves for the security of such Bonds and the funding of
a discount and other expenses of the financing.
(c) Upon disbursement of lendable proceeds of such
Bonds, net of reserves and expenses, for loans for the ac-
quisition of housing units in projects within either (i)
Minneapolis in an aggregate amount proportionate to the
amount of Bonds heretofore authorized by Minneapolis, viz.
upon disbursement of 65.31$ of such lendable proceeds in
Minneapolis or (ii) St. Paul, in an aggregate amount pro-
portionate to the amount of Bonds heretofore authorized by
St. Paul, viz. upon disbursement of 34.69$ of such
lendable proceeds in St. Paul, the remainder of aggregate
lendable proceeds of the Bonds shall be reserved for loans
for the acquisition of housing units in projects
constructed or under construction in the other City, up to
an amount not exceeding the aggregate amount of loans
estimated by that City to be needed with respect to such
projects; but any amount of lendable proceeds in excess of
such estimated need shall be available for loans when
3 � ¢
WHITE .- CITV CLERK �J��..�'�
�AINK � FINANCE GITY OF SAINT PAUL Council
CANARV - DEPARTMENT
BLUE - MAVOR File NO.
�
' Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
needed for the acquisition of housing units in projects
constructed or under construction in the city whose
initial proportion of the lendable proceeds was disbursed.
(d) For the purpose of allocation of lendable
proceeds as provided in paragraph (c) , $8,500,000 of the
aggregate amount of $24,500,000 of the state ceiling
heretofore allocated to the Cities shall be deemed
allocated to the two Cities jointly under the provisions
of Section 462C.09, Subdivision 4 of the Act, but no part
of said amount shall be issued by either City in 1983
under authority� of the Allocation Act.
3. Section 4 of said resolution adopted August �.1,
is amended to read:
"4. The Program to finance mortgage loans for the
Projects shall be undertaken 'ointl with the Cit of
Minneapolis or, if desi nated b the Cit of Minnea olis, with
the Minneapolis Community Development Agency by the ssuance
of revenue bonds in a principal amount not to exceed
$24,500,000, in one or more series, any one of which may be a
single debt instrument; and said Projects and '�oint financing
program are hereby given preliminary approval by the City
subject to the approval of the financing program by the
Minnesota Housing Finance Agency ( "MHFA") and subject to final
approval by the HRA, the responsible officers of the City of
Minneapolis or the Minneap s Community Development Agency,
the developers and the purchasers of the bonds as to ultimate
details of the financing. "
� ��
COUNCILMEIV Requested by Department of:
Yeas Nays �1
Fletcher �
�a��� [n Favor
Masanz
Nicosia
scnetbe� __ A gai n s t BY
Tedesco
Wilson
OCT 2 01983 Form Ap ed by City Attorney
Adopted by Council: Date
Certified P ss d ouncil S t y BY ��G����'�v • Jtl
' !
tlppr d 1Vlavor: OC 1 �i � ��� App e by Mayor for to Council
By I �Y
PUBLtSHED 0 C T 2 9 1983
����?.9
RHM: 9/1/83 527S
JOINT POWERS AGREEMENT
FOR THE JOINT HOUSING
DEVELOPMENT PROGRAM
THIS AGREEMENT is entered into as of the lst day of
October, 1983, by and between The Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota, .and the
Minneapolis Community Development Agency (collectively� the
"Authorities") , each a body corporate and politic organized
under the laws of the State of Minnesota� pursuant to Minnesota
Statutes, Section 471.59 and Chapter 4b2C.
1. Statement of Purpose and Powers to be Exercised.
There is a need in both the City of Saint Paul, Minnesota and
the City of Minneapolis, Mi�nesota (collectively, the "Cities"}
to preserve the quality of life through the maintenance,
provision and preservation of adequate housing stock, to
encourage new housing construction, and to provide in a timely
fashion affordable housing to persons of low and moderate
income who are unable to afford housing at current market
interest rates or to obtain housing financing because of the
severely restricted mortgage credit market. In order to
promote the public health, welfare and Prosperity, the
Authorities will undertake a joint program of providing below
�����
market interest rate mortgage loans pri.marily to persons of low
and moderate income to finance the purchase of dwelling units
located in various residential condominium and townhouse
projects located within the geographic limits of the Cities
upon terms and conditions not otherwise generally affordable to
such persons in the private mortgage market (the "Program") .
The powers to be exercised jointly under this Agreement
are those identical powers conferred upon each City and their �
designated housing and redevelopment authorities in Minnesota
Statutes, Chapter 462C (the "Act") , and in particular the
powers to undertake programs to implement individual components
of the housing plan d�veloped by and for each City pursuant to
the Act, and to issue revenue bonds to finance such programs.
In addition, each City; acting by and through its designated
housing and redevelopment authority, shall exercise its powers
under Minnesota Laws 1981, Chap�er 222, to issue bonds subject
to Section 103A of the Internal Revenue Code in the amount set
out in said Chapter 222.
2. Method by Achieving Purpose; Manner of Exercising
Power. Each City has previously adopted resolutions evidencing
its intent to underta;ce the Program and each City has. by
ordinance designated its housing and redevelopment authority,
or the agency which exercises the powers of a housing and
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redevelopment authority, to exercise its powers under the Act.
Pursuant to the approval and consent of the Cities provided by
their respective resolutions and evidenced by their
acknowledgment and acceptance of this Agreement below, the
Authorities shall exercise such powers jointly by adopting,
approving and executing such common or concurrent resolutions,
documents, and agreements as shall be necessary or convenient
to issue and sell a series of revenue bonds with respect to -
which each Authority shall be jointly obligated, and such other
resolutions, documents and agreements as shall be necessary or
convenient to properly manage, administer and operate the
Program utilizing the proceeds of such joint issue and such
other funds as may be made available for use in conjunction
with the Program.
The Program shall be managed, administered and operated in
the manner provided herein and in the Program Documents
(defined below) . Each Authority may act singularly, without
any consent by or action of the other, with respect ta the
administration of the Program in its City, to the� extent
provided in the Program Documents.
3. Definitions. In this Agreement, unless a different
meaning clearly appears from the context, the following terms
shall have the following respective meanings:
Act: Minnesota Statutes, Chapters 462, 462A and 462C
and Minnesota Laws 1981, Chapter 222;
3
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Authorities: the Minneapolis Community Development
Agency and The Housing and Redevelopment Authority of the City
of Saint Paul, Minnesota and their successors an3 assigns;
Board: The Joint Housing Development Program Board
created herein;
Bonds: The $24,500,000 Homeownership Revenue Bonds
(Joint Housing Development Program) issued jointly, in one
series, by The Housing and Redevelopment Authority of the City _
of Saint Paul, Minnesota, and the Minneapolis Community
Development Agency;
� Cities: The City of Minneapolis, Minnesota, and the
City of Saint Paul, Minnesota,
Program: The housing finance program pursuant to the
Act, approved by the respective governing bodies of the
Authorities on , 1983 and , 1983
and pursuant to which the proceeds of the Bonds shall be used
to finance the acquisition of single family condominium units
or townhouses located in multi-family housing developments in
either City, and the management, operation and administration
of the resulting portfolio of mortgage loans;
Program Documents: the Indenture of Trust, the
Origination, Servicing and Administration Agreement, the
Collateral Pledge Agreement, the Developer Agreements and other
agreements entered into in connection with the Program and the
Bonds.
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Any terms capitalized but not otherwise defined herein
shall have the meanings assigned such terms in the Indenture of
Trust pursuant to which the Bonds are issued.
4. Creation of Joint Housing Development Program Board;
Powers and Duties. There is hereby created a Joint Housing
Development Program Board representative of the Authorities,
consisting of four members and having the power and duty to
consult with, advise, make recommendations to, and coordinate "
the common or concurrent actions af the Authorities with
respect to the development, i.mplementation and administration
of the Program.
5. Members. The Board shall consist of four members.
Two members shall be nominated by the Chairman of The Housing
and Redevelopment Authority of the City of Saint Paul,
Minnesota and approved by its governing body, and shall reside
in the City of Saint Paul . Two members shall be nominated by
the Chairman of the Minneapolis Community Development Agency
and approved by its governing body, and shall reside in the
City of tdinneapolis. Members of the Board may be either
Commissioners of the Authorities or individuals employed by
either of them on a full-time basis. Members shall hold office
for a term of four years or until their successors are
appointed and qualified. Vacancies shall be filled in the
manner provided above for appointment. A member may be removed
S
{�����
at any time with or without cause by the Chair;nan who nominated
him or her. Members shall receive no compensation, but may be
rei.mbursed for actual costs of attending any meeting.
6. Meetings. Meetings of the Board sha1.1 be held at such
times, but at least once annually, and at such places and with
such notice as shall be provided in such by-laws as the Board
may adopt. A quorum shall consist of three members. A
majority shall consist of three members. Matters concerning
the agenda of a meeting, minutes of a meeting, and rules of
order or procedure shall be as set forth in any by-laws or
resolutions adopted by the Board.
7. Officers. The members of the Board shall elect from
among their number a Chairman and a Vice-Chairman.
8. Souree and Contribution of Funds. The source of funds
for the Program shall be the proceeds of the Bonds and such
ather properties and revenues identified in the Program
Documents as shall be loaned or contributed to or derive3 from
the Program.
9. Budget and Disbursements. The Program shall not
require an annual budget. Moneys and funds shall be held,
applied, disbursed, and accounted for as set forth in the
Program Documents or in such manner as the Board may determine.
Prior to the termination of this Agreement, to the extent that
any surplus funds are returned or distributed to the
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IG����V
Authorities, they shall be returned to each in the proportion
of 34.7� for The Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota, and 65.3� for the Minneapolis
Community Development Agency.
I0. Liability for Debts and Obligations. The Board shall
not do any act or thing the effect of which is to create a
charge on or lien against the property or revenues of the
Authorities or the Cities, other than the revenues of the _
Program, and then only to the extent required by or not
inconsistent with the Indenture of Trust entered into by the
Authorities in connection with the issuance of the Bonds.
The Bonds shall be special, limited obligations of the
Authorities payable solely from proceeds, revenues and other
amounts pledged thereto and more fully described in the
Indenture of Trust relating thereto. The Bonds and the
interest� thereon shall neither constitute nor give rise to an
indebtedness, pecuniary liability, general or moral obligation
or a pledge of the faith or loan of credit of the Authorities,
the Cities, the State of Minnesota or any political subdivision
of the above, within the meaning of any Constitutional or
statutory provisions.
11. Term of Agreement; Termination. Unless otherwise
provided by concurrent action of the Autharities, this
Agreement shall terminate upon the retirement or defeasance of
the last outstanding Bonds, and this Agreement may not be
7
�V���
terminated in advance of such retirement or defeasance. If the
Bonds are not issued, this Agreement shall terminate on
December 31, 1983.
12. Distribution of Assets upon Termination. Upon termination
of this Agreement, any property acquired as the result of this
Agreement and any surplus moneys shall be returned to the
Authorities in the proportion of 34.7� for The Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota, -
and 65.3$ for the Minneapolis Community Development Agency.
13. Amendments. This Agree�nent may be amended by the
Authorities at any time by a written instrument executed by
both of them. No amendment may impair the rights of the
holders of the Bonds, unless they have consented to such
amendment in the manner provided for amendment of the
Indenture.
IN WITNESS WHEREOF, The Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota, has caused this
Agreement to be executed on its behalf by its C'hairman�
Executive Director and Director, Department of Finance and
Management Services and the seal of said Authority to be
hereunto affixed and duly attested by its Secretary; and the
Minneapolis Community Development Agency, has eaused this
Agreement to be executed on its behalf by its Chairman and
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Executive Director and the seal of said Authority to be
hereunto affixed and duly attested by its Secretary; all as of
the day and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF
SAIL�TT PAUL, MINNESOTA
(gFAT•�
By � _
Its ai an
Attest:
By �
Its Secretary
By
s xecu ive irec or
By
Its Director o Finance and
Management Services
Approved as to Form;
Assistant City Attorney
9
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MINNEAPOLIS COMMUNITY DEVELOPMENT
AGEIVCY
By
s airman
(sE�)
By
Executive Director
Attest: �
By
Its Secretary
Approved by:
ssis a�n i y orney
10
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ACKNOWLEDGMENT AND ACCF,PTANCE
The foregoing has been consented to and approved by
the City of Minneapolis, Minnesota, and the City of Saint Paul, -
Minnesota. Said Cities agree to be bound by the terms and
conditions of the foregoing Agreement and to take no action in
derogation thereof.
IN WITN�SS WHEREOF, each of said Cities has caused
this Acknowledgment and Acceptance to be executed on its behalf
by its tdayor and attested by its City Cle�k, and its seal to be
hereunto duly affixed and attested.
CITY OF SAINT PAUL, MINNESOTA
(SEAI+) �
By
� I a
Attest:
By
Director, Department of Planning
and Economic Development
City Clerk
By
Approved as to form: Director, Department o Finance
and Management Services
Assistant Ci y At orney
11
�J���
(SEAL) CITY OF MINNEAPOLIS, MINNESOTA
Attest:
By
Its Mayor
By
Its City C er
Approved:
Assistant City Attorney
12
PED - Housing �EPARTFIENT �L7�vV�
Nanc_y West CONTACT
-7494 X278 PHpNE � �
r 27 1983 DA�E ��� �
(Routing and Explanatlon Sheet)
Assi Number for Routin Order Cli A11 Locations for ral Si ature :
De r�tnient Di rector
�City Attornex
/Mau►or � U� i" ;� — i983 ���El'�/�"D
Finance and Management er s Director ��� � �
� City Clerk n«d G(G,�.�L-���� iti o� -�t-�o� ���. (���3
Budget Director . C�rY �Q�'ro����r
_L �g�uty Director - Housina`d�
i�hat Will be Achieved by Taking Action on the Attached Ma�terfats? (Purpose/Rationale):
By reviewing and signing attached Council Resolution, a proper resolution will be
ready for submission to the City Council .
The resolution itself amends a previously adopted resolution relating to approval of
a financing program for owner-occupied multi-family housing development in order to
execute the program jointly and cooperatively with the City of Minneapolis.
Financial , Budgetary and Personnel Impacts Mticipated:
- .�.,
Cost of bond issuance will be lowered; fiscal impact on the HRA/City will not change.
Joint program will pravide both Cities the flexibility to use bon�d proceeds in either
City according to Developer demand.
Funding Source and Fund Activity Number Charged or Credited:
� �
Attachments (List and Nianber �11 Attactunents):
1. City Council Resolution �
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
x Yes No Council Resolution Required? Resolution Required? Yes Mo
Yes � No Insurance Required? Insurance Sufficient? Yes No
Yes No Insurance Attached?
Revision of October, 1982
fSP� RPVPI"[P SidP for �Instructions)