276467 WHITE - CITY CLERK �.• ►�y
PINK - FiNANCE � �" • �
CANARY - DEPARTMENT C I T Y O F S A I N T PA II L COUflC1I � L1� I
BLUE - MAYOR ��
File N 0.
- , � C cil Resolution
Presented By -Gl�J?
Referred To Committee: Date
Out of Committee By Date
WHEREAS, the City Council of the City of Saint Paul recog-
nizes the public purpose and benefits in initiating programs to
conserve the use of residential energy consumption; and
WNEREAS, the City Council recognizes that the public
benefit is such that loans may be made on a graduated scale
and priority with regard to income; and
FURTHER WHEREAS, the City Council recognizes the particular
hardship the rising cost of energy has on low- and moderate-income
households;
NOW, THEREFORE BE IT RESOLVED, that the City Council ap-
proves for submission to the State Legislature the enclosed
bill authorizing the adoption of a local ordinance or ordinances
to develop and administer a program or programs for the making
or purchasing of energy improvement or energy rehabilitation
loans; and
FURTHER BE IT RESOLVED, that the City Council will , in ap-
proving its final ordinance, place limitations and priorities
ensuring that the maximum program benefit will be provided to
low- and moderate-income households.
COUNCILMEN Requestgd by Department of:
Yeas Nays
Hunt
Lev�ne In Favor
Maddox
McMahon
showa�ter � __ Against BY —
�edexo
Wilson
Adopte y Coun 1: Date
��rt 5 198� Form Approved by City Attorney
ertifie assed by Council Secreta BY
sy �'1� _
Appro . avor: Date Appro d by Mayor for mi ion to Council
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BY - ���st�� MAP 1 4 19 81
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Energy� Bill
. Holmes & Graven
. • 02/24/8]
A bill f or an ac t
relating to the cities of DZinneapolis and Satnt Paul;
authorizing the implementation of energy conservation
� programs; authorizing the financing of residential -
energy conservation programs; authorizing the issuance �
of qualified mortgage bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF �1II�NESOTA:
Section 1. [Mirineapolis, City of; Saint Paul�City of; Residential Energy
Conservation Program; Purpose.] The legislature of the state of 17innesote finds �
and declares that the state faces�potential serious shortages in energy resaurces
and that energy conservation requires expanded..authority and technical capability �
in order to encourage minimization of the use of traditional energy sources in the
housing sector; th�t accomplishing this is a public purpose; that it is in the public
interest to authorize the city of AZinneapolis and the city of Saint Paul to provide
existing single family, existing muttifamily and existing rental housing Ivans for
energy improvements. �
��� �yl�) Sec. 2. [Residential Energy Conservation Program.} rotKithstanding the
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`'`?. provisions of any law or charter to the contrary the city of A�linneapolis and the
city of Saint Paul, individually or jointly are authorized to devel�p and administer a
program or programs for the making or purchasing of energy improvement or
energy rehabilitation loans with respect to housing located�anywhere within their
respective bounderies;�n such terms and conditions as set forth in this act and an
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ordinance�which s}iall be adopted by the governing body* or bodies af 41�e
municipality or municipalities establishing such program. At least _?5°,Ei of the
proceeds of each energy improvement or energy rehabilitation loan shall be used
for housing repairs and improvements (1) which the city determines are (a).used ar
useful to conserve energy or (b) to convert or retrofit an existing structure for the
purpose of using an energy source which does not depend on nuclear or nanrenew-
able petroleu m based resources, and (2) .which, when installed or completed�will
with respect to each housing unit directly result in s cost effective reduction of
energy utilization from nuclear or nonrenewable petroleum based resources. The
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ordinancef establishing �the program shall establish the manner of determining
whether the housing repairs and improvements will directly resuZt in the required
cost effective reduction of energy utilization:� Such louns may �e made without
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_ " � regard to income level of the loan recipient, shall bear interest at sUCh rate or
rates as are established by the city or cities, shall be for a term of not to exceed
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20 years and. may.be�secured by a mortgage ar other security interest. The pow�ers
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granted to each city by sections 1 to S of this Act are supplemental and in addition
to those granted. by AZinnesota Statutes, Chapter 462C and any other law or
charter. - , `
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Sec. 3. [Limitati� A program may be established pursu t to this Act
only after the city esteblishing the program determines that:
(1) There is a continued need to reduce consumption of energy from
' nonrewable petroleum besed resources. . -
(2) There are housing units within the jurisdiction of the city which are �
in need�of energy improvements and energy rehabilitation. �
•(3) Private sources of financing are not reasonably available to provide
the needed loans for energy improvements and energy rehabilitation.
(4) The tyPes of energy improvements and energy rehabilitation tYill
reduce the consumption of energy from non-renewable petroleum based resources
or from nuclear sources. � . � .
Findings mede by the city.pursuant to this section shall be conclusive and final.
. See. 4. [Revenue Bonds.� Subdivision 1. To finance the program or
programs authorized by this act, the city council of the city of Alinneapolis and the
eity council. of the city of Saint Paul individually or jointly may, by resolution,
authorize, issue, and sell revenue.bonds or obligations, which are payable from the
revenues of the programs authorized by this act. ��� �:��' (� ��%�S l�� .
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�� Subd. 2. rotwithstanding the provisions of any other Iaw, general or special
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N`to the contrary, and in addition to the authority eontained in any other Iaw, the
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eity of A7iru�eapolis and the city of Saint Paul individually or jointly may eaercise
'� any and all of the same powers in relation to the making or purchasing of loans vr
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�-t�PI"u"" ' other securities snd in the issuing of revenue bonds or obligations in furtherance of
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the programs suthorized by this act as the R�innesota housing finanee agency is
authorized to exercise under the provi.sions of Minnesota Statutes, chapter 4S2A, .
without regard to any of the limitations.set forth in &4innesota Statutes, chapter
475.. The revenue bonds or obligations shall be payable from all �r a portion of
program revenues and other. sources .of city revenue, except that the city shall not
levy or pledge to levy any ad valorem tax upon real property for the purpose of
paying principal of or interest on such revenne bonds or obligations.
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• � Sec. 5. [Exercise of Powers.) Eithec or both cities may by ordinance
�uthorize the housing and redevelopment authority or the port� authority for tl�eir
respective city to exercise�any or all of the powers granted to each city by the Act�
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in �+�hich event the sources of city revenue that may be pledged to the payment of
revenue bonds or obligations shali include any revenues of such housing and
redevelopment authority or part authority.
Sec. 6. [Qualified RZortgage Bonds.7 Subdivision 1. In accordance tivith
Section 103A(gx6)(A) of the Internai Reuenue Code of 1954 as amended, the city of
;1'iinneapolis is authorized to issue qualified mortgage bonds as that term is defined . � .
in and as such bonds are go�erned by Section 103A of the Internal Revenue Code of
. 1954, as amended, during any calendar year in an amount equal to the greater of (1)
$16,000,000 or (2) four and one-half percent (4-1/2%) times the average a.nnual
aggregate principal amount of all first mortgages, second mortgages, contracts for
deed and such other "owner financing" as is �included .in Section 103A(1)(i) of the
Internal R.evenue Code of 1954, as amended, for owner-occupied residences Iocated
within the city of Minneapol�s during the preceding three years� Such bonds shall
be issued pursuant to authority contained in a special or general law.
- Subd. 2. In s�ccordance with Section 103A(g)(6)(A) of the Internal Revenue
Code of 1954 as amended, the city of Saint Paul is auYhorized to issue qualified
mortgage bonds as that term is defined and as such bbnds are governed by in
Section 103A of the Internal Revenue Code of 1954, as amended, during an,y
calendar year in an amount equal to the greater of (1) 58,500,000 or (2) four and
one-half percent (�-1/29n) times the average annual aggrega�e �principal amount of
all first mortgages,- second mortgages, contracts for deed and such other "owner
fin2..ncing" as is included in Section 103A(1)(i) of the Internal Revenue Code of 1�954,
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as amendeci, for owner-occupied residences lqc�ted within the city of Saint Paul
during the preceding three years. Such bonds shsll be issued pursuant to authority
contained in a special or general law. �
� See. 7. (Effective Date.] Sections 1 to 5 of Yhis Act are effective with
respect to each city upon the day of compliance with h4innesota Statutes, section
64�.021, subdivision 3. Section 6 of this Act is effective the day �'ollowing final
enactment. � •
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