278704 WHITE - CITY CLERK ��[����
PINK - FINANCE l�
CANARY - DEPARTMENT COUIICII �,,
BLUE - MAYOR G I T Y O F S A I N T PA U L File N O. �
� � � C ncil Resolution
Presented By ,
Referred To Committee: Date
Out of Committee By Date
RESOLUTION CONCERNING THE RESIDENCY REQUIREMENT
IN THE BMIR PROGRAM AND BMHR PROGRAM
WHEREAS:
(a) The City has undertaken its Below Market Interest
Rate ("BMIR") Program of making mortgage loans primarily to
persons of low and moderate income who intend to occupy the
residence financed thereby as their principal place of residence;
(b) The City, through The Housing and Redevelopment Authority
of the City of Saint Paul, Minnesota (the "HRA") has undertaken
its Below Market Home Rehabilitation ("BMHR") Program of making
mortgage loans to persons purchasing rehabilitated residences,
or who undertake rehabilitation of residences, which persons
intend to occupy such residences as their principal place of
residence.
(c) Banco Mortgage Company, acting as the "Program Administra-
tor" under both the BMIR and BMHR Programs, has discovered
various instances in which persons who have received mortgage
loans pursuant to those Programs have not, in fact, occupied
the residences financed thereby as their principal place of residence;
(d) It is a requirement of both the BMIR and BMHR Programs,
and an important policy of the City and the HRA, that the mortgage
loans provided through the BMIR and BMHR Programs not be used
for purposes of speculation, or primarily for the purpose of
investment;
(e) The Program Administrator has enforced the residency
COUfVCILMEIV Requestgd b Department of:
Yeas Nays
Hunt
Levine In Favor
Maddox
McMahon B
snoweiter - __ Against Y
Tedesco
Wilso�
Form Approved by City Attorney
Adopted by Council: Date —
Certified Passed by Council Secretary BY
sy --
Approved by ;Navoc Date _ . Appro ed by Ma or r Sub ss o ouncii
�
BY - - — BY
WHITE - CITY CLERK �Q• /��
PINK - FINANCE n �> �
CANARY - DEPARTMENT G I TY O F SA I NT 1 A U L COURCII �� •
BLUE - MAYOR �
File N .
` � �� � Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
3. This resolution shall be construed as reaffirming
the original intent of this Council that all residences
financed by mortgage loans made pursuant to the BMIR or
BMHR Programs be used as the Mortgagor' s principal place of
residence, and not primarily as rental property, for the
purpose of investment, or for the pur-pose of speculation.
Nothing in this resolution shall be construed to prevent a
Mortgagor from renting dwelling units in a two, three or
four family residence, provided that one dwelling unit in
any such residence is used by the Mortgagor as their principal
place of residence.
4. This resolution shall be effective immediately.
COUNCILMEN Requestgd by Department of:
Yeas Nays
Hunt '
•t�e, In Favor
Maddox �
McMahon
snowaiter - __ Against BY
Tedesco
Wilson
MAY 18 1961 Form Approve by City Atto ney
Adopted by C ouncil: Date —
Certified P• :s d y Coun .il S eta BY �
B �
Ap r e by 1layor: D 11tlY` `1, n �QR� Approve a r for Submi ouncil
�
By _ — BY
PUBLISHED M AY 2 9 1982
� , . � � 2'78`7Q�
_ , ,
.
AGREEMENT.
This Agreement is made and entered into this day of
, 19 , by and between Banco Mortgage Cornpany,
acting as "Program Administrator" under the City of Saint Paul
[acting by and through The Housing^and Redevelopment Authority
of the City of Saint Paul, Minnesota] Below Market Interest -
Rate ("BMIR" ) Program [Below Market Home Rehabilitation : � -
( "BMHR") Program] .and (the
"Mortgagor" ) . _
WHEREAS:
(a) Mortgagor owns that certain residential real
property located in the Caunty of Ramsey and City of Saint �
Paul legally described as follows, to wit:
with its street address at
Saint Paul, Piinnesota
(the "Home") ;
(b) Mortgagor has received a mortgage loan (the
"Loan" ) under and pursuant to the BMIR (BMHR) Program
- which mortgage loan (the "Loan") is secured by that
certain mortgage dated , 19 which mortgage has
been filed and placed of record in the office of the
County Recorder or Registrar of Titles, as appropriate, in
and for Ramsey County, Minnesota on , 19^ as
Document No. ;
(c) It is a condition and requirement of the BMIR
[BMHR] Program, and of the Loan, that the Mortgagor
occupy the Home as Mortgagor' s principal place of
residence, and that riortga�or not own the Hor�1e primarily
� as rental property, for investment or for the purposs of
speculation;
(d) The Progra�n Administrator has commenced, or
threatened to comr�ience, against riortgagor a proceeding to _
rescind the Loan, acce�lerate the debt evidenced thereby
and foreclose the mortgage securing the Loan based upon
Mortgagor' s failure to comply with the residency
requireraent of the BMIR [BMHR] Program;
. ° � ',
' (e) Mortgagor acknowledges that he or she has not
occupied the Horne as his or her principal place of
residence in corapliance with the residency requirernent of
the BMIR [BMHR] Program;
(f) Mortgagor and Program Administrator now wish to
resolve their differences, and settle the legal action or
claim set forth above; -
NOW THEREFORE, in consideration of the rnutual promises and �
agreements made herein, Mortgagor and Program Administrator
agree as follows:
1 . Mortgagor agrees to occupy the Home as his or her
principai place of residence for a period of not less than 24
months from the date of this Agreement. Except as set forth in �
paragraph 2, Mortgagor shall not sell, transfer, lease (except
as set forth in paragraph 5 . ) , convey or assign all or any part
of Mortgagor' s interest in the Holne except upon the occurrence
of exce�tional circumstances, including:
a. loss of employment;
b. relocation of Mortgagor' s place of employment to
a location more than 50 miles from the Home;
c. death or permanent disability of the Mortgagor;
d. dissolution of Mortgagor's marriage;
e. induction of Mortgagor into full-time service in
the arned services of the United States; or
f. any other circulnstances presenting an unusual and
unforeseen hardship and approved in writing by the Program
Administrator.
In the event of any of the circumstances set forth above, the
Mortgagor shall be entitled to sell, transfer, lease, convey or
assign the Home without restriction, and the Loan will be
assurable on the same basis as other Loans rnade pursuant to the
BMIR (BMHR) Program.
2 . In the event Mortgagor sells, leases, transfers,
assigns or conveys his or her interest in the Horne prior to the _
end of the 24 months from the date of this Agreement, except _
under the circumstances specified in paragraph 1 . , Mortgagor
hereby agrees that any such sale, transfer or conveyance, if
coupled with an assumption of t'he Loan, shall be on the
following terms and conditions:
` a. The gross price to the Mortgagor shall not exceed
the lesser of purchase price or appraised value of the
Home at the time the Loan was made.
b. The Loan shall be fully assumed by the person(s)
to whom the Mortgagor conveys his or her interest, and the
Mortgagor shall be released from all further liability on
account of the Loan; -
provided, however, that the Program Administrator shall not '
be required to consent to any such assumption unless the
assumer of the Loan is fully creditworthy under the Program �
Administrator's usual mortgage loan underwriting standards.
3 . For and in consideration of the agreements of the
Mortgagor contained herein, and as consideration for such
agreements, the Program Administrator agrees to discontinue or
dismiss, as appropriate, any and all legal proceedings
commenced or threatened to be commenced against Mortgagor and
arisinq from Mortgagor' s failure to comply with the resideney
requirement of the BMIR LBMHR] Program.
4. Mortgagor hereby agrees and covenants to comply with
the terms of this Agreement, and agrees that if Mortgagor shall
fail to comply with the terms hereof, the debt evidenced by
the Loan may be accelerated, and the mortgage securing such
debt may be foreclosed. Program Administrator agrees that if
it should fail to comply with the terms hereof, Mortgagor shall
be relieved of his or her obligations hereunder.
5 . Nothing in this Agreement shall be construed to limit
the right of the Mortgagor to rent dwelling units in a two,
three or four family Home, provided that one dwelling unit
therein is occupied as Mortgagor' s principal place of residence
in compliance with this Agreement.
� Dated the day and year first above written.
BANCO MORTGAGE COMPANY
as Program Administrator
By
Its
,
By
Its
i '
. a . .
STATE OF MINNESOTA )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this _
day of , 19^, by the : _
an the of
Banco Mortgage Compan�, on behalf of said Corporation.
Notary Public
�
, , 2�����/
- • � �aR�NT:
ROUTING Aya EXPLAMATIQN SNEET C��: � �
(GREEN SHEET) ��'
�
�'
For Administrative Orders, Resolutions, Ordinwcea and A�reementa �
� ROUTIN6 ORDER - ROUTE BY AS3IfNE� NLM�ERt
DIRECTOR OF MANAGEMENT RECEIVED
3 �►YOR . MAY 1 31982
��� DEPARTMENT DIRECTOR DIRECTOR� FINANCE � MGT. SERVICES
' MAYORS OFFICE
�� CITY ATTORNEY ,�,_ CITY CLERK
BUDGET DIRECTOR
CTION REaL�STE� �[LIP ALL LACATtONQ FOR MAYORAL SiC•NATLRE);
Execute for placement on City Council agenda
wNAT wILL �E {�CNIF�VE� BY TAKING ACTION �N TNE ATTAGHEi_1 MATERIAL3 �P�RPOSE ANif ATIONI F)�;
This requested action will formally adopt as policy to administrative
procedures PED has been using to insure compliance with the residency
requirements of the BMIR/BMHR programs
F14L�NCiAL. BLIDGETARY AND PERCpNNEL IMPACTS ANTICIPATED,
� ^lone
ATTACHMENTS �LIST ALL ATTACHh�NTS):
1, Council Resolution R E C EIV E D
2 Agreement MAY 1 1 1982
3.
� CITY ATTORNEY
e nev.cew ►�ecea on. er.t o e o sc�w
� . . . Ci.t�l Auoa►cey:
i. Counc.i.L Rebotu.t.i.on ReqwiJCed? �YES NO 1. R¢ao.eu.t.ioitY yES NO
2. tnsw�a�.ce ��r yES X No 2. inewcance Su66.i�i.�.tY_vFS n►o
3. Ineunanc.e A.LtachedY YES �NO
IiaviBi,o�i OM:4/29/82