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276907 WMIYE - CITV CLERK PINK - FINANCE GITY OF� SAINT PAiTL Council / �'�] B�/ERV�1NAVORTMENT File NO.���n / �/ I � 0 rdin�nce Ordinance N 0. ���Q v Presented By Referre To Committee: Date Out of Committee By Date An Administrative Ordinance adopted pursuant to Minnesota Statutes, Chapter 462C, Chapter 260, Laws of Minnesota for 1975, and Chapter 222, Laws of Minnesota for 1981, amending the Saint Paul Administrative Code, Chapter 72 - Housing, Rehabilitation and Energy Improvement or Energy Rehabilitation Finance Programs. The council of the City of Saint Paul does ordain: SECTION l. Section 72.01 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.01 General. The Minnesota State Legislature has authorized the City of Saint Paul (the "City") to develop, administer and finance a housing plan and program within he corporate limits of the City and has declared such ousing plan and programs as constituting a public p rpose. The legislature of the state of Minnesota has determined, and the council of the City of Saint Paul does hereby find and determine, (a) that there are many housing units in the city that do not meet the applicable housing codes, some of which need to be destroyed and some of which can be rehabilitated; (b) that a need exists to replace housing which is destroyed or- demolished; (c) that a need exists for mortgage credit to be made available for new construction; (d) that refinancing existing mortgages will allow owners of housing units which need COUIVCILMEN Requested by Department of: Yeas Nays Butler Hozza In Favor — Hunt Levine Against BY Maddox Showalter Tedesco Form Approv by ttor Adopted by Council: Date � Certified Passed by Council Secretary �—` , By Approved by Mayor: Date Approved by Mayar for Submission to Council By BY � � � ������ rehabilitation to take advantage of existing rehabilitation programs; (e) that the City faces potential serious shortages in energy resources and that implementing energy conservation measures requires expanded authority and technical capability in order to minimize the use of traditional ener sources in the housin sector; f that accom lishin ener conservation is a public purpose; g that it is in the public interest for the City to provide existing single family, existing multifamil and existin rental housin loans for ener improvements; and h that many owners, would-be purchasers or providers of housing units are either unable to afford mortgage or loan credit at the market rate of interest or obtain mortgage or loan credit because the mortgage or loan credit market is severely restricted. SECTION 2. Section 72.02 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.02 Mayor to develop program. To achieve the purposes, objectives and goals set forth above in Section 1, the mayor shall develop and administer a housing plan and a program or programs to finance housing construction, rehabilitation and energy improvements or energy rehabilitation in conformance with the requirements set forth in Chapter 260, Laws of Minnesota for 1975, Minnesota Statutes, Chapter 462C, Chapter 222, Laws of Minnesota for 1981, and the regulations promulgated by this council. The mayor shall develop the City' s housing finance programs in such a manner that they will complement the existing City Housing Rehabilitation Loan and Grant Programs adopted by Resolution C.F. 264630 and Ordinance No. 15751, and amendments to such Resolution and Ordinance (Chapter 71, Saint Paul Administrative Code) . The City' s housing finance programs may include funds from all available federal, state, regional and local sources, both private and public. In developing and administering the plan and these programs, the mayor shall coordinate such programs administered by the federal, state, regional and local agencies to the end that the City may achieve the optimum of benefit from all such programs and the provision of adequate, safe, energy efficient and heal�thful housing for the inhabitants of the City. SECTION 3. Section 72.03 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: �����,���;__� 72 .03 Administration of programs. In the administration of the City' s housing finance programs, the mayor shall endeavor to make use of existing lending institutions and staff, both from the private as well as the government sector. The mayor may employ all such necessary staff and obtain materials, supplies, equipment and office space as is in the judgment of the mayor necessary for the administration of the programs and within the funding appropriations approved by the city council. The mayor may further participate or cooperate in the creation of such other boards, corporations or other entities as may be desirabie in connection with such programs. SECTION 4. Section 72.04 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.04 Use of other agencies; bonds. Subject to the approval of the city council, the mayor may employ the services of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA." ) , the Port Authority of the City of Saint Paul (the "Port Authority" ) and/or the Minnesota Housing Finance Agency for the purpose of aiding in the implementation of the City' s housing finance programs to the extent permitted by law. The HRA and the Port Authority are hereby designated to exercise on behalf of the City, the powers conferred or granted by Minnesota Statutes, Sections 462C.01 through 462C.08 and by Chapter 222, Laws of Minnesota for 1981; provided however, that the HRA and the Port Authority shall not carry out any specific programs unless directed and authorized to do so by a resolution adopted by the city council. If the HRA or the Port Authority is so employed, then the HRA or the Port Authority may be authorized by the mayor to exercise any and all of the powers which the Minnesota Housing Agency is authorized to exercise under the provisions of Minnesota Statutes 462A in the making or purchase of loans and securities in furtherance of the programs. Revenue bonds or other obligations issued by the City shall first be authorized by the city council and shall be issued in accordance with the terms and provisions of applicable law, including: Minnesota Statutes, Chapter 462C; Chapter 881, Laws of Minnesota for 1963, as amended; Chapter 351, Laws of Minnesota for 1974, as amended; Chapter 260, Laws of Minnesota for 1975, and Chapter 222, Laws of Minnesota for 1981. WHITE - CITV CLERK PINK - FINANCE GITY OF SAINT PALTL Council �/�.J//�)% CANARV.-DEPARTMENT File NO.-��1���,/,T�� BL,)JE� -1.AAVOR • � rdin�nce Ordinance N�. l�8"6 a Presented By ./ _� Referre To Committee: Date Out of Committee By Date SECTION 12. Section 72.11 of Chaper 72 of the Administrative Code is hereby amended by renumbering that section as Section 72.12. SECTION 13. This ordinance shall be deemed a part of the Saint Paul Administrative Code and shall be incorporated therein and given the chapter number and/or section number designated herein. SECTION 14. This ordinance shall take effect and be in force thirty (30) days from and after its passage, approval and publication. COUNCILMEI�1 Requested by Department of: Yeas Nays Butler Hunt �� ozza Levine In Favor nt Me�aK in McMahon � Against BY S�i�ewefter• edesc � Tedesco ��N 11 �gg� 1 Wfls Form Approve y Cit orney Adopted by Council; °�bate , .� � �-/ Cer ti fie d P se b Counci l cre tar B Y ' �S B �" � Y � Appro y ayor: D Approved by Mayor for Submission to Council By BY PUBLISHEO J UN 131981 -r�.z .�x. x,r. :ss�� , � �,,l--° ,`�*. };,.. �OUtiCll., � ,, .. � v I T Y O P' �.�A I N T; �.�`A U� �'ile N 0� ������ �:-� . O�� � ; ; �n�,.�P.., . in�ance N0. ., tiy s"'-,.�';r _�",: �'-� ���` . ; . �. _ - ....- Referre To' - _ Coutmittee: ` Date <; �,..->� Out of Cort�cnittee By Date l�n ��iistrative 4rd_i�anc.� adoptad pii�rsuant to Minaeoota Sta�atds, Gh�ptar 46�C,,:-�haptaac : , 2£►0, La�rs c�f fi�innescta l�ar 197��. a�`�+Qt �r � � 1�►wa �#-Mi�nee+c�ta fi�r i9�1 a�c�m� n� . Sa rit Pau atrat w Cod+�. Cl�agter �� — . � , �Iaueing a�nd R�habilitati� F��nce Pzogrems, ' . �nc of �he C t caf 8aint @t�ul do�s� ord�n: �' Th� �o i2 i p , . �.._ . , s�c�r�ata z. ? I ' Se+ctis�n T2.fll ot Ghapttr �Z t,�! ths �i=tf��,�;� � t�ereby a�ended by del�ti� th�t +�ection in its e�� � ; : �ubstituting in lfeu t�►er�f the loliawix�g: � 72.Q1 t�en�ral. �"hs Mi�esot.a .S�ate ��g�si�tn�a haa ' - at�t�horisod t � C ty of �ai�►t Pa�i � dev��,� adse3�ister �d tistaac� a 'ho6tsi�9 Plan and �rrc�g�amm ttifihis t#�e . , �ets 1im�.ts o€ th� Cit►� � l�+ts �ta�3.stad .�ct� he�t�.ag glari and p=ograa�as aa c�orastituting a pnblica gqr�sa. � : � x�gislatu�e of t'�i+� state cif Mi�ae�ta �eo �stermi�d� at�l l; `- �he council �f tlte C ty o 8a t Pe�n2 dc�s h�r�by f#�d .�aid f �; de�ermi.�e, �(a} that t]aere are �►y ���g unito ' is the ,; �tty tliat � r�ot �eet t�e appli�l� 3�o�esin+g. c�dea, sa�ae �, � Qf whict� need to be deatro�reed aa� tm�e � whie� canr� .be ' j reh�bilitatedt (bj t�at a nNd �eista t� ��ptac�e �s�.nq i �hic2i is dastra�ed c� demcltshs8� {c) that a ne+�d e�ciats 1 fc�r mortqaga c�scliL �o be madm a�vailable -loar �a�r constructicmt �d� ttzat r�atiaanc�inq :e�c.iatir�g a�ortgages tir,i21 . allc�+ a�ers of housing nnits �i�► nsed �'ehabilitati� to , ; � �� V GOUNCILMFN : + Yeas Nays Reques#ed by Dep�lrtment of: }i Butler . ; Hozza In Favor 1 � Hunt f` Levine Against BY � ;.,, � Maddox # Showalter � Tedesco Form Approved by City Attorney Adopted by Council: Date � r Certified Passed by Council Secretary BY i , By � � ,� Apprqved by Mayor: Date Approved by Mayor for Submission to Counail " By BY . � �, ._ �. . . � - . .,� � � - . ... WHITE - CITV CIERK � . .. � . ° � PINK -EINANCE ' � � COUI1C11 i+� � CA�IARV-'dEPAR�TWtENT �GITY OF �AINT �� PAU�L ,�s9��! �. � 9CUE -MAYOit � Fll� NO. O��Zn�nCP, Ordinance NO. f f Presented By � � <:�. ' Referred To Committee: Date Out of Committee By Date An A�einfstrative 4rdinanca adopted pnrauant to Min=tesot.a Statt�t�a, Chapter �6ZC. Chapter 264� Laws of Minneaota #ar 197g1 and Cha er 222 Laws �g Mirmeeota for 19�1 aiaend�ng the Sa nt Paul �&ninistrat ve Code, Chapter 72 - Hotxsing and Rehabilitaticm Fin,anc� Progrems. The council of the Gity of Saint Peu2 cloes orda3n: :4ECTInZ�t 1. Section ?2.01 of Ch�pter 72 of tha Aci�ninist=ative Cod� is her�by a�aended by deleting tY�rt �ectian in ito antfrety at�d subatit�ting in �ieu thereof the follvwing: 72.U1 General. �'he Mirtneaota State Legislature has authori�ced the City at` Saint Paul to developt administer and �inanee a housing plan anc3 program within the earparate�lisaiLs of the City and has decla=� euch hou�ing p2an and progra�e as constitutir�q a pnblic �tspose. The Iegislature of t�ie �t�te of Kinn�aota has det�r�ined, and � eoua�il of the City of Sa nt Pau2 doea t�ereby �ind and detax�ine, (a) that there are many 2suuaing unita 3n Lhe city tha� do nat meet the applicable housi�g �ode�, so� of r+hich need to be c�estroyed and aome of which c�n be � rahabilitated� (U) tl�at a ne�ci eziata to replsee hausinq which �.s aQStrayea or ci�molished= �c) that s need eaists for �artgsge cr�dit to be �de evailable for aew ccrostruction� (d) that refinancing ezistinq �rtgagea �,rill allc�r a�+ners of housi� unfta wT�ich need rehabilitatfcra ta COUNCILMEN Requested by Department of: Yeas Nays Butler Hozza In Favor Hunt ` Levine A gai n s t BY Maddox Showalter Tedesco Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By By • • �'6��"7 �2a.. take advantage of existing re2iabilitation programs; (e) that the City faces potential serious shortages in energy resources and that implementing energy conservation measures requires expanded authority and technical ca abilit in order to minimize the use of traditional energy sources in the housing sector; f that accomplishing energy conservation is a public purpose; (g) t2zat it is in the public interest for the City of St. Paul to provide existing single family, existing multifamily and existin rental housin loans for ener im rovements; and h that many owners, would-be purchasers or providers of housing units are either unable to afford mortgage or loan credit at the market rate of interest or obtain mortgage or loan credit because the mortgage or loan credit market is severely restricted. Section 72.02 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.02 Mayor to develop program. To achieve the purposes, objectives and goals set forth above in Section l, the mayor shall develop and administer a housing plan and a program or programs to finance housing construction, rehabilitation and energy improvements or energy rehabilitation in conformance with the requirements set forth in Chapter 260, Laws of Minnesota for 1975, Minnesota Statutes, Chapter 462C, Chapter 222, Laws of Nlinnesota for 1981, and the regulations promulgated by this council. The mayor shall develop the city' s housing finance prdgrams in such a manner that they will complement the existing City Housing Rehabilitation Loan and Grant Programs adopted by Resolution C.F. 264630 and Ordinance No. 15751, and amendments to such Resolution and Ordinance. The city' s housing finance programs may include funds from all available federal, state, regional _ and local sources, both private and public. In developing and administering the plan and these programs, the mayor shall coordinate such programs administered by the federal, state, regional and local agencies to the end that the city may achieve the optimum of benefit from all such programs and the provision of adequate, safe, energy efficient and healthful housing for the inhabitants of the City of Saint Paul. Section 72.U3 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: . � �3> �69�°� 72.03 Administration of programs. In the , administration of the city' s housing finance programs, the mayor shall endeavor to make use of existing lending institutions and staff, both from the private as well as the government sector. The mayor may employ all such necessary staff and obtain materials, supplies, equipment and office space as is in the judgment of the mayor necessary for the administration of the programs and � within the funding appropriations approved by the city council. The mayor may further participate or cooperate in the creation of such other boards, corporations or other entities as may be desirable in connection with such programs. Section 72.04 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.04 Use of other agencies; bonds. Subject to the approval of the city council, the mayor may employ the services of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA" ) , the Port Authority of the City of Saint Paul (the "Port Authority" ) and/or the Minnesota Housing Finance Agency for the purpose of aiding in the implementation of the city' s housing finance programs to the extent permitted by law. The HRA and the Port Authorit�� are hereby designated to exercise on behalf of the City, the powers conferred or granted by Minnesota Statutes, Sections 462C.01 through . 462C.08 and by Chapter 222, Laws of Minnesota for 1981; provided however, that the HRA and the Port Authority shall not carry out any specific programs unless directed and authorized to do so by a resolution adopted by the city council. If the HRA or the Port Authority is so employed, then the HRA or the Port Authority may be authorized by the mayor to exercise any and all of the powers which the Minnesota Housing Agency is authorized to exercise under the provisions of Minnesota Statutes 462A in the making or purchase of loans and securities in furtherance of the programs. Revenue bonds or other obligations issued by the city of Saint Paul shall first be authorized by the city council and shall be issued in accordance with the terms and provisions of applicable law, including: Minnesota Statutes, Chapter 462C; C'hapter 881, Laws for 1963, as amended; Chapter 351, Laws for , 1974; as amended; Chapter 260, Laws for 1975; and Chapter 222; � L�ws- for� 1981. • • (4) ��al4J� Section 72.05 of Chapter 72 of the Administrative Code is " hereby amended by deleting that section in its entirety and substituting in lieu tl�ereof the following: 72.05 Definitions. For the purposes of this ordinance and housing plans or programs adopted pursuant hereto, and unless otherwise herein provided, all terms and phrases used shall possess the definitions and meanings ascribed to them in the City' s Housing Rehabilitation Loan and Grant Programs established by Resolution C.F. 264630, and Ordinance No. 15751 (Chapter 71, Administrative Code) or in applicable Minnesota Statutes. Section 72.06 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.06 Loans, conditions All loans made by or on behalf of the city shall comply with the terms of applicable law, housing plans and programs, and the specific program agreements pursuant to which the loan is made. To the extent required by law, all loans made by or on behalf of the city shall be made only when it is first determined that financing is not otherwise available from private lenders upon terms ,and conditions which are affordable by the applicant. Following receipt of loan applications, the city shall make a determination (1) , with respect to providers of housing, whether mortgage credit for that type of housing is available from private lenders under such terms and conditions which will permit the borrower to rent or sell the housing units at a rate which the market will be able and willing to pay; or (2) in the case of an owner-occupied single family home, shall determine that the monthly principal and interest payments will be affordable by the applicant. In the case of energy improvement or energy rehabilitation loans, the originators of such loans shall determine for each such loan that not less than 75 percent of the proceeds of each such loan will be used for the purposes set forth in Section 8 hereof; and such determination shall be based upon criteria or regulations developed or promulgated by any federal or state regulatory agency, or upon energy audit standards or criteria used by any private provider of energy and approved by the public utilities commission of the state of Minnesota. In all cases in which the city provides housing finance assistance, the borrower or � borrowers shall be required to repay the principal amount of the mortgages or loans, together with interest at a rate that will be at least equal to the interest rate • � (5) ���7't1 / which the city is required to pay on its bonds or other obligations, except in the instance of energy improvement or energy rehabilitation loans where alternative forms of security for the bonds or other obligations ensure their repayment. In establishing mortgage or loan repayments, the mayor shall ensure that the revenues received by the city are sufficient to retire the principal and interest on bonds issued to finance the programs and also to provide for the costs of administering the loans. Section 72.07 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.07 Program funds; other sources For the purpose of obtaining program funds, the mayor is authorized to apply to any federal, state or regional agency for grant or loan moneys. The mayor shall endeavor to obtain program funds from all sources in addition to the city' s bond proceeds. All grant and loan funding agreements shall be submitted for council approval. The council may impose restrictions on the use of such grant and loan funds in the resolution approving the agreement. Section 72.08 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.08 Permitted uses of funds Programs established by the mayor may provide mortgage or loan financing for new construction o£ single family housing, multiple family housing townhouses, condominiums and apartments. The programs may also provide for refinancing of existing mortgages so that owners of housing units needing rehabilitation may then take advantage of rehabilitation programs administered by the city or other agencies. The programs may also provide for extension of financing for rehabilitation of existing housing units. The program may also provide for the making or purchase of energy improve- ment or energy rehabilitation loans, i�- at least 75 �per= cent of the proceeds of each enerc�y improvement or energy rehabilitation loan are used for housin re airs and im rovements (1) which are (a used or useful to conserve energy or b) to convert or retrofit an existing structure for the purpose of using an energy source which does not de end on nuclear or nonrenewable petroleum based resources, and (2) which, when installed or completed, � will with respect to each housing unit directly result in a cost effective reduction of energy use from nuclear or nonrenewable petroleum based resources. Financing may be provided to the HRA to be used by the HRA to construct • • (h� rG `���/ housing on property owned by the HRA for the purpose of rehabilitating existing housing owned by the HRA or the city. Program funds may be used to finance acquisition of land for housing and for construction of housing to the extent provided in the housing plan or program guidelines adopted by the council or the mayor. Proceeds received from the issuance of general obligation bonds and proceeds from the city' s general fund, including real estate taxes, shall be used solely to provide housing finance assistance for occupancy primarily by persons of low and moderate income. When such general obligation or general fund proceeds are to be used to finance construction or rehabilitation of multiple housing units at least 60$ of housing units shall be occupied by persons of low and moderate income. Chapter 72 of the Administrative Code is hereby amended by adding a new section, designated section 72.09, to read as follows: 72:09: " " Energy improvements and energy rehabilita- tion The foregoing provisions of this Ordinance, and the provisions of this Section 9, shall constitute the ordinance establishing a program for the making or • purchasing of energy improvement or energy rehabilitation loan w thin the boundaries of the City, as authorized by Cha ter 222, Laws for 1981. The Cit hereb finds, deter- mines and declares that: (1 there is a continued need to reduce consum tion of ener from nonrenewable etroleum based resources; 2 there are housing units within the 'urisdiction of the Cit which are in need of ener improvements and energy rehabilitation; 3 private sources of financing are not reasonably available to rovide the needed loans for ener im rovements and energy rehabilitation; and 4 the types of energy improvements and energy rehabilitation authorized under Sections 6 and 8 hereof will reduce the consumption of energy from nonrenewable petroleum based resources or from nuclear sources. Section 72.09 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.i0 Mortgages; liens The mayor may provide temporary construction financing and permanent financing, upon satisfactory completion of the housing. In all cases of housing finance assistance, the mayor may obtain a mortgage lien upon the land and i.mprovements. In the making of housing loans, the mayor shall attempt to obtain � � �,, 2��69�'7 FHA or VA insured mortgages, or private mortgage or loan insurance, wYierever possible. All loans made by the city shall comply with all applicable federal and state laws and regulations pertaining thereto, including interest rate limitations and credit disclosure requirements. Section 72. 10 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72. 11 Bond proceeds; sep�rate funds The proceeds from the sale of general obligation bonds and from revenue bonds issued for the programs authorized by this ordinance shall each be placed in a separate fund; monies placed in these two funds may be transferred or disbursed to which will combine these sources with other sources to accomplish the city' s housing, rehabilitation and energy improvement or energy rehabilitation finance Programs; and housing finance loans and mortgage credit may be made from this combined fund. The general obligation bonds issued under this ordinance may be retired in accordance with the city' s normal funding process for general obligation bonds. Revenue bonds or revenue obligations issued for , these programs shall be retired solely from all of the revenue sources of the programs authorized by Minnesota Statutes, Chapters 462A and 462C, Chapter 260, Laws of � 1975, and Chapter 22, Laws of 1981, as defined and pledged ' to their repayment and their respective bond resolutions; and a separate sinking fund shall be established for the accounting of the revenues and the retirement of these revenue bonds. Section 72 . 11 of Chaper 72 of the Administrative Code is hereby amended by renumbering that section as Section 72.12. . . T __ _ ,_ _ � :,�„-.- _, _ wH�Te - cirv c��K • , . _ PINK FINAN�CE � � �O 11 � *^pyy, yr�,�� CAfi;rRr-tOEAARTMENT � . �GITY OF SA�INT PAiTL Fll@ • NO. � w ��� ■ � . gI..UE -MAYOR � � O I W i/L�nCe Ordinance N 0. Presented By ��-•�% :� '� Referred To Committee: Date Out of Committee By Date SEC�I�?N 2. Thia ordinar�ce shall be c�ee�ed a part of t'h� Saint�Paul A�is�istrative Code and sha12 be inct�rporatecl Lherein and qiven the chapt�r �enaber and/or aection nu�ber designat+ed 'hersfn. fi�CTioN 3. Thia ordis�ane� sha21 Lake eff�et and be in force tt�irty (30) days frc�n and after its pas:aq�, approval and publicetian. ts) COUNCILMEN Requested by Department of: Yeas Nays Butler Hozza In Favor Hunt Levine Against BY Maddox Showalter Tedesco Form Approv y C' ttorney Adopted by Council: Date Certified Passed by Council Secretary B � �-� � �-�� � 't�`x`� ✓/ By Approved by Mayor: Date Approved by Mayor for Submission to Gouncil By By ._ WNITE --CITV GLERK . � J ... . .. . - . �-p,~K � - F�N�N�E GITY OF �AINT PAUL Council �C(]�t+/i - �` CANARV-DEPARTMENT �' . F11C NO. v4, 1 - BI.WE -MAVOR • � 0rdin�nce o��nan�e�o. .� Presented By �� ,:�: �.�. �:� _,� t � � � Referred To Committee: Date Out of Committee By Date An �►dwinistrative t�rdinance adopted pursu�nt ta Mf�3t�ee�ota Statt�tes, ['ha�ter 4fi2C, ChRpter - 260, L,tsa�s af Minnesota for 19T5, artd C'?�apter �2,2, I,ao�s of Minnesc�ta for 1981, a�endinc� the Saint Paul Rdmiaistrative Code, Chs�tes 7� F�ousir�q and Rehabi2itation Finance Progrb�$. 't'h� council of Lhe eity 4f S�air3t Paul d�s orc�ain: : SFC"'IC�?3 1. 3ecti�n 72.01 r�f c"?�apter 72 of the �de�in�.atrative Code i� her�2�y amende� 2� dele�tinq that sectfon in itr� �ntirety and snbetiLutin�g in lieu t?�ezeof the follc3xing: 72.C�1 Ge�ncral. '�he Minnesota State Legislature has ,_ authori�ed the City of Saint P,�ul to develogt aclt�inister and �insnc� a haeasing plan �nc� prtx�r�� withi,n the carparate li�ite of t2�e eity and has c��rclar�d such hauaing p1�►n and pragra�ns a� cc:nstitntinr� a gub3ic �ur�o�se. The legisi�ture of th� atat� of Minneaota has determin�cl, and 'Lhe council of th� Cft� of Saint Panl da�s hereh�r find anc� deter�►in�, {�) tYaat tr�re �►re rda�r►y housing unita in the cit� that do not r�e�� the app2icab2e hausing codes. �c�r!ee a� �hf.ch need to b+� c�eatroyed mna sos�e of ahich rAn t� rehabi2itaLe�lf (�) that a need exists ta z�p2ace hcyueing , �hich is destroyed or demallshed: (c) that a need exf�ts � for r�rt�age credit to b� �d�r available for new ' ec�nsLructivr�t (d) �hat r+�fin�t�cing exiating r•�ortgaq�s �►i11 a2lcrr awnera� of hauai�g unit� which need rehahiiitation to COUNCILMEN Requested by Department of: Yeas Nays Butler In Favor Hozza Hunt � Levine Against BY Maddox Showalter Tedesco Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Gouncil By By � � �Z, ��s��� take advantage of existina rel�abilitation programs; (e) � that the City faces potential serious shortages in energy resources and that implementing energy conservation measures requires expanded authority and technical ca abilit in order to minimize the use of traditional energy sources in the housing sector; f that accomplishing energy conservation is a public purpose; (g) that it is in the public interest for the City of St. Paul to provide existing single family, existing multifamily and existin rental housin loans for ener im rovements; and h that many owners, would-be purchasers or providers of housing units are either unable to afford mortgage or loan credit at the market rate of interest or obtain mortgage or loan credit because the mortgage or loan credit market is severely restricted. Section 72.02 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.02 Mayor to develop program. To achieve the purposes, objectives and goals set forth above in Section l, the mayor shall develop and administer a housing plan and a program or programs to finance housing construction, rehabilitation and energy improvements or energy rehabilitation in conformance with the requirements set forth in Chapter 260, Laws of Minnesota for 1975, Minnesota Statutes, Chapter 462C, Chapter 222, Laws of Minnesota for 1981, and the regulations promulgated by this council. The mayor shall develop the city' s housing finance programs in such a manner that they will complement the existing City Housing Rehabilitation Loan and Grant Programs adopted by Resolution C.F. 264630 and Ordinance No. 15751, and amendments to such Resolution and Ordinance. The city' s housing finance programs may include funds from all available federal, state, regional and local sources, both private and public. In developing and administering the plan and these programs, the mayor shall coordinate such programs administered by the federal, state, regional and local agencies to the end that the city may achieve the optimum of benefit from all such programs and the provision of adequate, safe, energy efficient and healthful housing for the inhabitants of the City of Saint Paul. Section 72.03 of CYiapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: � � �3� �69+�'7 72.03 Administration of programs. In the . administration of the city' s housing finance programs, the mayor shall endeavor to make use of existing lending institutions and staff, both from the private as well as the government sector. The mayor may employ all such necessary staff and obtain materials, supplies, equipment and office space as is in the judgment of the mayor necessary for the administration of the programs and within the funding appropriations approved by the city council. The mayor may further participate or cooperate in the creation of such other boards, corporations or other entities as may be desirable in connection with such programs. Section 72.04 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.04 Use of other agencies; bonds. Subject to the approval of the city council, the mayor may employ the services of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") , the Port Authority of the City of Saint Paul (the "Port Authority" ) and/or the Minnesota Housing Finance Agency for the purpose of aiding in the implementation of the city' s housing finance programs to the extent permitted by law. The HRA and the Port Authority are hereby designated to exercise on behalf of the City, the powers conferred or grantecl by Minnesota Statutes, Sections 462C.01 through . 462C.08 and by Chapter 222, Laws of Minnesota for 1981; provided however, that the HRA and the Port Authority shall not carry out any specific programs unless directed and authorized to do so by a resolution adopted by the city council. If the HRA or the Port Authority is so employed, then the HRA or the Port Authority may be authorized by the mayor to exercise any and all of the powers which the Minnesota Housing Agency is authorized to exercise under the provisions of Minnesota Statutes 462A in the making or purchase of loans and securities in furtherance of the programs. Revenue bonds or other obligations issued by the city of Saint Paul shall first be authorized by the city council and shall be issued in accordance with the terms and provisions of applicable law, including: Minnesota Statutes, Chapter 462C; Chapter 881, Laws for 1963, as amended; Chapter 351, Laws for 1974; as amended; Chapter 260, Laws for 1975; and Chapter 222; - L�ws for 1981. . . �4� �`i69�'7 Section 72.05 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.05 Definitions. For the purposes of this ordinance and housing plans or programs adopted pursuant hereto, and unless otherwise herein provided, all terms and phrases used shall possess the definitions and meanings ascribed to them in the City's Housing Rehabilitation Loan and Grant Programs established by Resolution C.F. 264630, and Ordinance No. 15751 (Chapter 71, Administrative Code) or in applicable Minnesota Statutes. Section 72.06 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.06 Loans, conditions Al1 loans made by or on behalf of the city shall comply with the terms of applicable law, housing plans and programs, and the specific program agreements pursuant to which the loan is made. To the extent required by law, all loans made by or on behalf of the city shall be made only when it is first determined that financing is not otherwise available from private lenders upon texms and conditions which are affordable by the applicant. Following receipt of loan applications, the city shall make a determination (1) , � with respect to providers of housing, whether mortgage � credit for that type of housing is available from private lenders under such terms and conditions which will permit the borrower to rent or sell the housing units at a rate which the market will be able and willing to pay; or (2) in the case of an owner-occupied single family home, shall determine that the monthly principal and interest payments will be affordable by the applicant. In the case of energy improvement or energy rehabilitation loans, the originators of such loans shall determine for each such loan that not less than 75 percent of the proceeds of each such loan will be used for the purposes set forth in Section 8 hereof; and such determination shall be based upon criteria or regulations developed or promulgated by any federal or state regulatory agency, or upon energy audit standards or criteria used by any private provider of energy and approved by the public utilities commission of the state of Minnesota. In all cases in which the city provides housing finance assistance, the borrower or � borrowers shall be required to repay the principal amount of the mortgages or loans, together with interest at a rate that will be at least equal to the interest rate ' � �5, 2��9�'� which the city is required to pay on its bonds or other obligations, except in the instance of energy improvement or energy rehabilitation loans where alternative forms of security for the bonds or other obligations ensure their repayment. In establishing mortgage or loan repayments, the mayor shall ensure that the revenues received by the city are sufficient to retire the principal and interest on bonds issued to finance the programs and also to provide for the costs of administering the loans. Section 72.07 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.07 Program funds; other sources For the purpose of obtaining program funds, the mayor is authorized to apply tn any federal, state or regional agency for grant or loan moneys. The mayor shall endeavor to obtain program funds from all sources in addition to the city' s bond proceeds. All grant and loan funding agreements shall be submitted for council approval. The council may impose restrictions on the use of such grant and loan funds in the resolution approving the agreement. Section 72.08 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: , 72.08 Permitted uses of funds Programs established by the mayor may provide mortgage or loan financing for � new construction of single family housing, multiple family housing townhouses, condominiums and apartments. The � programs may also provide for refinancing of existing � mortgages so that owners of housing units needing rehabilitation may then take advantage of rehabilitation programs administered by the city or other agencies. The prograr.ls may also provide for extension of financing for rehabilitation of existing housing units. The program may also provide for the making ar purchase of energy improve- ment or energy rehabilitation loans, i� �t least 75 - per- cent of the prbceeds of each enerc�y improvement or energy rehabilitation loan are used for housin re airs and im rovements (1 which are a used or 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 nonrenewable petroleum based ' resources, and (2) which, when installed or completed, � will with respect to each housing unit directly result in a cost effective reduction of energy use from nuclear or nonrenewable petroleum based resources. Financing may be provided to the HRA to be used by the HRA to construct ' ' �6>► �'���'7 housing on property owned by the HRA for the purpose of rehabilitating existing housing owned by the HRA or the city. Program funds may be used to finance acquisition of land for housing and for construction of housing to the extent provided in the housing plan or program guidelines adopted by the council or the mayor. Proceeds received from the issuance of general obligation bonds and proceeds from the city' s general fund, including real estate taxes, shall be used solely to provide housing finance assistance for occupancy primarily by persons of low and moderate income. When such general obligation or general fund proceeds are to be used to finance construction or rehabilitation of multiple housing units at least 60$ of housing units shall be occupied by persons of low and moderate income. Chapter 72 of the Administrative Code is hereby amended by adding a new section, designated section 72.09, to read as follows: 72:09: - -Energy improvements and energy rehabilita- tion The foregoing provisions of this Ordinance, and the �rovisions of this Section 9, shall constitute the ordinance establishing a program for the making or . purchasing of energy improvement or energy rehabilitation loans within the boundaries of the City, as authorized by Cha ter 222, Laws for 1981. The Cit hereb finds, deter- mines and `declares that: 1 there is a continued need to reduce consum tion of ener from nonrenewable etroleum based resources; 2 there are housing units within the _ 'urisdiction of the Cit which are in need of ener improvements and energy rehabilitation; 3 private sources of financing are not reasonably available to � rovide the needed loans for ener im rovements and energy rehabilitation; and 4 the types of energy improvements and energy rehabilitation authorized under Sections 6 and 8 hereof will reduce the consum tion of energy from nonrenewable petroleum based resources or from nuclear sources. Section 72.09 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.i0 Mortgages; liens The mayor may provide temporary construction financing and permanent financing, upon satisfactory completion of the housing. In all cases of housing finance assistance, the mayor may obtain a mortgage lien upon the land and improvements. In the making of housing loans, the mayor shall attempt to obtain ' ' � c>> ��6��� FHA or VA insured mortgages, or private mortgage or loan insurance, wherever possible. All loans made by the city shall comply with all applicable federal and state laws and regulations pertaining thereto, including interest rate limitations and credit disclosure requirements. Section 72.1U of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.11 Bond proceeds; separ�te funds The proceeds from the sale of general obligation bonds and from revenue bonds issued for the programs authorized by this ordinance shall each be placed in a separate fund; monies placed in these two funds may be transferred or disbursed to which will combine these sources with other sources to accomplish the city' s housing, rehabilitation and energy improvement or energy rehabilitation finance �rograms; and housing finance loans and mortgage credit may be made from this combined fund. The general obligation bonds issued under this ordinance may be retired in accordance with the city' s normal funding process for general obligation bonds. Revenue bonds or revenue obligations issued for , these programs shall be retired solely from all of the revenue sources of the programs authorized by Minnesota Statutes, Chapters 462A and 462C, Chapter 260, Laws of 1975, and Chapter 22, Laws of 1981, as defined and pledged to their repayment and their respective bond resolutions; and a separate sinking fund shall be established for the accounting of the revenues and the retirement of these revenue bonds. Section 72.11 of ChaPer 72 of the Administrative Code is hereby amended by renumbering that section as Section 72.12. WHITE -�CITV GIERK . . �.�: . . � . � . � ' ���^� � �• PIM� �1 - FINANCE � ., i � COIIIICIl � � � �� . . CANARY-DEPARTMENT � GITY � OF SAINT� PAUL - � � swe -MAVOR File NO. e, O/ W Z/`�/`CG Ordinance N O. �F 1 f Presented By � {��:"' �-�:-..�- Referred To Committee: Date � Out of Committee By Date SEC'�'I{?t� 2. Thia ordinance shall t�r deer.tied a part of thc� &afnt E�aul Ac�ninistrmtive Coc�e �nd shall be incQr�mrnted th�r�in �nc� given the cha�ater nur�ber anc!/or see�ion r�ut?�ber deeignated herein. �?��'IC�� 3. �' Thfa orc3ingnr.� �hall take �ffect an� t� $n fQrce thirty ' {3U) day� �rt� and mft�r it� �aaaage, a��rova2 t�nd �►a�ilic�tiori. � `� � ��� COUNCILMEN Requested by Department of: Yeas Nays Butler Hozza In Favor Hunt Levine A gai n s t BY Maddox Showalter Tedesco Adopted by Council: Date Form Approv ,b�y Ci�y Attorney Certified Passed by Council Secretary By - � `� r�� By � Approved by Mayor: Date Approved by Mayor for Submission to Council BY BY . i M�HITF, - CITV CLERK �^^�� PINK - FINANCE �'e■ CANA -(lEPARTMENT � GITY OF SAINT � FAUL Council U� BLUE - MAVOR File NO. O�GLin� P,� r nce N0. ---- Presented By • Referred To Committee: Date Out of Committee By Date An A 'nistrative Ordinance adopted pursuant to Min sota Statutes, Chapter 462C, Chapter 260, La s of Minnesota for 1975, and Chapter 222, Law of Minnesota for 1981, amending the S�int Pau Administrative Code, Chapter 72 - Housing an Rehabilitation Finance Programs. The council of the Ci of Saint Paul does ordain: SECTION l. /� � Section 72.01 of Ch ter 72 of the Administrative Code is hereby amended by deletin that section in its entirety and substituting in lieu there f the following: 72.01 General. e Minnesota State Legislature has authorized the City of aint Paul to develop, administer and finance a housing pl n and program within the corporate limits of the C ty and has declared such housing plan and programs as const'tuting a public purpose. The legislature of the state o Minnesota has determined, and the council of the City of int Paul does hereby find and determine, (a) that there are many housing units in the city that do not meet the appl 'cable housing codes, some of which need to be destroyed a d some of which can be rehabilitated; (b) that a need e ists to replace housing which is destroyed or demolished; (c) that a need exists for mortgage credit to be made ava able for new construction; (d) that refinancing isting mortgages will allow owners of housing units which ed rehabilitation to COUIVCILMEIV Requested by Departm t of: Yeas Nays Butler [n Favor Hozza Hunt Levine Against By Maddox Showalter Tedesco Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By By . . �'� 2�6�� take advantage of existing reliabilitation programs; (e) - that the City faces potential serious shortages in energy resources and that implementing energy conservation measures requires expanded authority and technical ca abilit in order to minimize the use of traditional energy sources in the housing sector; f that accomplishing energy conservation is a public purpose; (g) that it is in, the public interest for the City of St. Paul to provide existing single family, existing multifamily and existin r�ntal housin loans for ener im rovements; and h that maray owners, would-be purchasers or providers of housing units`. are either unable to afford mortgage or loan credit at the market rate of interest or obtain mortgage or loan credit because the mortgage or loan credit market is severely restricted. Section 72.02 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.02 Mayor to develop program. To achieve the purposes, objectives and goals set forth above in Section ° l, the mayor shall develop and administer a housing plan and a program or programs to finance housing construction, rehabilitation and energy improvements or energy rehabilitation in conformance with the requirrements set forth in Chapter 260, Laws of Minnesota for 1975, Minnesota Statutes, Chapter 462C, Chapter 222, Laws of Minnesota for 1981, and the regulations promulgated by . this council. The mayor shall develop the city' s housing finance programs in such a manner that they will complement the existing City Housing Rehabilitation Loan and Grant Programs adopted by Resolution C.F. 264630 and Ordinance No. 15751, and amendments to such Resolution and Ordinance. The city' s housing finance programs may include funds from all available federal, state, regional and local sources, both private and public. In developing and administering the plan and these programs, the mayor shall coordinate such programs administered by the federal, state, regional and local agencies to the end that the city may achieve the optimum of benefit from all such programs and the provision of adeq�iate, safe, energy efficient and healthful housing for the ^inhabitants of the City of Saint Paul. ,, Section 72.03 of Chapter 72 of the Adminis�rative Code is hereby amended by deleting that section in its e�tirety and substituting in lieu thereof the following: � � _ c3, 2�69�U�7 72.03 Administration of programs. In the administration of the city's housing finance programs, the mayor shall endeavor to make use of existing lending institutions and staff, both from the private as well as the government sector. The mayor may employ all such necessary staff and obtain materials, supplies, equipment and office space as is in the judgment of the mayor necessary for the administration of the programs and within the funding appropriations approved by the city council. The mayor may further participate or cooperate in the creation of such other boards, cor orations or other entities as may be desirable in connection with such programs. Section 72.04 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.04 ZJse of other agencies; bonds. Subject to the approval of the city couneil, the mayor may employ the services of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") , the Port Authority of the City of Saint Paul (the "Port Authority") and/or the Minnesota Housing �inance Agency for the purpose of aiding in the implerr�entation of the city' s housing finance programs to the'�,extent permitted by law. The HRA and the Port Authority ai�e hereby designated to exercise on behalf of the City, t2�e powers conferred or granted by Minnesota Statutes, Sec1tions 462C.01 through 462C.08 and by Chapter 222, Laws of',Minnesota for 1981; provided however, that the HRA and t�e Port Authority shall not carry out any specific programs unless directed and authorized to do so by a resolutian adopted by the city council. If the HRA or the Port �uthority is so employed, then the HRA or the Port Authbrity may be authorized by the mayor to exercise any and all of the powers which the Minnesota Housing Agenc�.. is authorized to exercise under the provisions of Minnesot� Statutes 462A in the making or purchase of loans and sect�rities in furtherance of the programs. Revenue bonds� or other obligations issued by the city of Saint Paul:�, shall first be authorized by the city council and shall e issued in accordance with the terms and provisions of applicable law, including: Minnesota Statutes, Chapter 462C; Chapter 881, Laws for 1963, as amended; Chapter 351, Laws for 1974; as amended; Chapter 260, Laws for 1975; and Chapter 222; L�ws �or 1981 . �� ,\ .\ �4, �'69��7 Section 72.05 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.05 Definitions. For the purposes of this ordinance and housing plans or programs adopted pursuant hereto, and unless otherwise herein provided, all terms and phrases used shall possess the definitions and meanings ascribed to them in the City's Housing Rehabilitation Loan and Grant Programs established by Resolution C.F. 264630, and Ordinance No. 15751 (Chapter 71, Administrative Code) or in applicable Minnesota Statutes. Section 72.06 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.06 Loans, conditions All loans made by or on behalf of the city shall comply with the terms of applicable law, housing plans and programs, and the specific program agreements pursuant to which the loan is made. To the extent required by law, all loans made by or on behalf of the city shall be made only when it is first determined that financing is` not otherwise available from private lenders upon terms and conditions which are affordable by the applicant. Following receipt of loan applications, the city shall make a determination (1) , with respect to providers of housing, whether mortgage credit for that type of housing is available from private lenders under such terms and conditions which will permit the borrower to rent or sell the housing units at a rate which the market will be able and willing to pay; or (2) in the case of an owner-occupied single family home, shall determine that the monthly principal and interest payments will be affordable by the applicant. In the case of energy improvement or energy rehabilitation loans, the originators of such loans shall determ"�ne for each such loan that not less than 75 percent of the proceeds of each such loan will be used for the purposes `set forth in Section 8 hereof; and such determination'.shall be based upon criteria or regulations developed or'.,promulgated by any federal or state regulatory agency, or, upon energy audit standards or criteria used b an ri�vate rovider of ener and a roved b the ublic utilit es commission of the state of Minnesota. In all cases in hich the city provides housing finance assistance, the borr wer or borrowers shall be required to repay the prin���pal amount of the mortgages or loans, together with inter�st at a rate that will be at least equal to the interest�,,,rate .� . . . 2�'6��'7 (5) which the city is required to pay on its bonds or other obligations, except in the instance of energy im rovemen� or ener'�gy rehabilitation loans where alternative forms of security for the bonds or other obligations ensure their repayment'.. In establishing mortgage or loan repayments, the mayor shall ensure that the revenues received by the city are sufficient to retire the principal and interest on bonds issued to finance the programs and also to provide for the costs of administering the loans. Section 72.07 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.07 Program funds; other sources For the purpose of obtaining program �unds, the mayor is authorized to apply td any federal, �state or regional agency for grant or loan moneys. The mayor shall endeavor to obtain program funds from all sources in addition to the city' s bond proceeds. All grant>. and loan funding agreements shall be submitted for co�,ncil approval. The council may impose restrictions on the >use of such grant and loan funds in the resolution app��oving the agreement. Section 72.08 of Chapter 72 of the Administrative Code is hereby amended by deleting that sec�ion in its entirety and substituting in lieu thereof the fol'�.owing: 72.08 Permitted uses of fur�ds Programs established by the mayor may provide mortgage� or loan financing for new construction of_ single family ousing, multiple family housing townhouses, condominiums a ' apartments. The programs may also provide for refin ncing of existing mortgages so that owners of housing nits needing rehabilitation may then take advanta� of rehabilitation programs administered by the city or ther agencies. The programs may also provide for extensioi� of financing for rehabilitation of existing housing unit�. The program may also prz�vide for the making or purchase '�f energy improve- ment or ener rehabilitation loans, if ' �E Ieast 75 er= cent of the prbceeds o� each energy im ro ement or energy rehabilitation Ioan are used for housin r12 airs and im rovements 1) which are a used or use �ul to conserve energy or (b to convert or retrofit an existing structure for the purpose of using an energy source wh�.ch does not depend on nuclear or nonrenewable etroleum bssed resources, and (2) which, when installed or com leted, will with res ect to each housin unit directl result in a cost effective reduction of ener use from n clear or nonrenewable petroleum based resources. Financi may be provided to the HRA to be used by the HRA to construct . �6, �s��� housing on property owned by the HRA for the purpose of rehabilitating existing housing owned by the HRA or the city. Program funds may be used to finance acquisition of land for housing and for construction of housing to the extent provided in the housing plan or program guidelines adopted by the council or the mayor. Proceeds received from the issuance of general obligation bonds and proceeds from the city' s general fund, including real estate taxes, shall be used solely to provide housing finance assistance for occupancy primarily by persons of low and moderate income. When such general obligation or general fund proceeds are to be used to finance construction or rehabilitation of multiple housing units at least 60� of housing units shall be occupied by persons of low and moderate income. Chapter 72 of the Administrative Code is hereby amended by adding a new section, designated section 72.09, to read as follows: 72:09. Energy i�nprovements and energy rehabilita- tion The foregoing provisions of this Ordinance, and the provYSions of this Section 9, shall constitute the ordinance establishing $ program for the making or purchasing of energy im rovement or energy rehabilitation loans within the boundaries of the City, as authorized by Cha ter 222, Laws for 198I. The Cit hereb finds, deter- mines and declares that: 1 there is a continued need to reduce consum tion of ener from nonrenewable etroleum based resources; 2 there aze housing units within the 'urisdictioh of the Cit whicn are in need of ener improvements and energy rehabilitation; 3 private sources of financing are not reasonably available to rovide the needed loans for ener im rovements and energy rehabilitation; and 4 the types of ener y improvements and energy rehabilitation authorized under Sections 6 and 8 hereof will reduce the consumption of energy from nonrenewable petroleum based resources or from nuclear sources. Section 72.09 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.1� Mortg�ges; liens The mayor may provide temporary construction financing and permanent financing upon satisfactory completion of the housir�g. In all cases of housing finance assistance, the mayor �y obtain a mortgage lien upon the land and improvemen�s. In the making of housing loans, the mayor shall at�empt to obtain � - ��'fi9��'7 �>> FHA or VA insured mortgages, or private mortgage or loan insurance, wherever possible. All loans made by the city shall comply with all applicable federal and state laws and regulations pertaining thereto, including interest rate limitations and credit disclosure requirements. Section 72 . 1U of Chapter 72 of the Administrative Code is hereby annended by deleting that section in its entirety and substituting in lieu thereof the following: 72.11 Bond proceeds; separate funds The proceeds from the sale of gene�al obligation bonds and from revenue bonds issued for the programs authorized by this ordinance shall each be placed in` a separate fund; monies placed in these two funds may be transferred or disbursed to which will combine these sources with other sources to accomplish the city' s housing, rehabilitation and energy improvement or energy rehabilitation finance �rograms; and housing finance loans and mortgage credit may be made from this combined fund. The general obligation bonds issu�d under this ordinance may be retired in accordance with the city' s normal funding process ior general obligation bonds. Revenue bonds or revenue. obligations issued for these programs shall be retired §olely from all of the revenue sources of the programs a�tthorized by Minnesota Statutes, Chapters 462A and 462C, Chapter 260, Laws of 1975, �nd Chapter 22, Laws of 1981, . as defined and pledged to their repayment and their respec�ive bond resolutions; and a separate sinking fund shall be established for the accounting of the revenues and the retirement of these revenue bonds. Section 72.11 of Cha�er 72 of the Admin�,strative Code is hereby amended by renumbering that section as •. Section 72.12. , \ \ WH17E - CI TV CLERK ����W PINK - FINANCE GITY OF SAINT PAUL Council 7 CA�tAR�-DEPARTMENT BLUE -MAVOR File NO. • Ordinance Ordinance N 0. Presented By Referred To Committee: Date Out of Committee By Date SECTION 2. This ordinance shall be deemed a part of the Saint Paul Administrative Code and shall be incorporated therein and given the chapter number and/or section number designated herein. SECTION 3. This ordinance shall take effect and be in force thirty (30) days from and after its passage, approval and publication. �8) \ COUIVCILMEIV Requested by Department of: Yeas Nays Butler ZZa In Favor — Hu � e Against BY ad x how lter Tedescn Form Approv y C' ` ttorney Adopted by Council: Date ': _ . � Certified Passed�by Council Secretary BY �-� By 111►1 a a 1A�f Approved by Mayor: Date Approved by Mayor for Submission to Council By By � � 1 � lst � � �� � � � 2nd � — 'a — � i/ � :. r� , . 3rd �,� _ �- �. . . � Adopted_� ^'�j— �'r� Yeas ' • Nays HUNT LEVINE � �� %���� - � McMAHON S1i0WALTIIt IG /�J�JS TEDESCO WILS ON PRESIDENT (MADDOX) � � _ ------� � ' r IV ! �V�� (2) take advantage of existing rel�abilitation programs; (e) � that the City faces potential serious shortages in energy resources and that implementing energy conservation measures requires expanded authority and technical ca abilit in order to minimize the use of traditional energy sources in the housing sector; f that accomplishing energy conservation is a public purpose; (g) that it is in the public interest for the City of St. Paul to provide existing single family, existing multifamily and existin rental housin loans for ener im rovements; and h that many owners, would-be purchasers or providers of housing units are either unable to afford mortgage or loan credit at the market rate of interest or obtain mortgage or loan credit because the mortgage or loan credit market is severely restricted. Section 72.02 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.02 Mayor to develop program. To achieve the purposes, objectives and goals set forth above in Section 1, the mayor shall develop and administer a housing plan and a program or programs to finance housing construction, rehabilitation and energy improvements or energy rehabilitation in conformance with the reguirements set forth in Chapter 260, Laws of Minnesota for 1975, Minnesota Statutes, Chapter 462C, Chapter 222, Laws of Minnesota for 1981, and the regulations promulgated by this council. The mayor shall develop the city' s housing finance prbgrams in such a manner that they will complement the existing City Housing Rehabilitation Loan and Grant Programs adopted by Resolution C.F. 264630 and Ordinance No. 15751, and amendments to such Resolution and Ordinance. The city' s housing finance programs may include funds from all available federal, state, regional c and local sources, both private and public. In developing and administering the plan and these programs, the mayor shall coordinate such programs administered by the . federal, state, regional and local agencies to the end that the city may achieve the optimum of benefit from all such programs and the provision of adequate, safe, energy efficient and healthful housing for the inhabitants of the City of Saint Paul. Section 72.U3 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: - � �3� �s��°� 72.03 Administration of programs. In the , administration of the city' s housing finance programs, the mayor shall endeavor to make use of existing lending institutions and staff, both from the private as well as the government sector. The mayor may employ all such necessary staff and obtain materials, supplies, equipment and office space as is in the judgment of the mayor necessary for the administration of the programs and within the funding appropriations approved by the city council. The mayor may further participate or coo erate in the creation of such other boards, cor orations or other entities as may be desirable in connection with such programs. Section 72.04 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.04 Use of other agencies; bonds. Subject to the approval of the city council, the mayor may employ the services of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") , the Port Authority of the City of Saint Pau1 (the "Port Authority" ) and/or the Minnesota Housing Finance Agency for the purpose of aiding in the implementation of the city' s housing finance programs to the extent permitted by law. The HRA and the Port Authority are hereby designated to exercise on behalf of the City, the powers conferred or granted by Minnesota Statutes, Sections 462C.01 through 462C.08 and by Chapter 222, Laws of Minnesota for 1981; provided however, that the HRA and the Port Authority shall not carry out any specific programs unless directed and authorized to do so by a resolution adopted by the city council. If the HRA or the Port Authority is so employed, then the HRA or the Port Authority may be authorized by the mayor to exercise any and all of the powers which the Minnesota Housing Agency is authorized to exercise under the provisions of Minnesota Statutes 462A in the making or purchase of loans and securities in furtherance of the programs. Revenue bonds or other obligations issued by the city of Saint Paul shall first be authorized by the city council and shall be issued in accordance with the terms and provisions of applicable law, including: Minnesota Statutes, Chapter 462C; Chapter 881, Laws for 1963, as amended; Chapter 351, Laws for 1974, as amended; Chapter 260, Laws for 1975; and Chapter 222, Laws for 1981 . - � �4� ��6��"7 Section 72 .05 of Chapter 72 of the Administrative Code is ' hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.05 Definitions. For the purposes of this ordinance and housing plans or programs adopted pursuant hereto, and unless otherwise herein provided, all terms and phrases used shall possess the definitions and meanings ascribed to them in the City's Housing Rehabilitation Loan and Grant Programs established by Resolution C.F. 264630, and Ordinance No. 15751 (Chapter 71, Administrative Code) or in applicable Minnesota Statutes. Section 72.06 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.06 Loans, conditions All loans made by or on behalf of the city shall comply with the terms of applicable law, housing plans and programs, and the specific program agreements pursuant to which the loan is made. To the extent required by law, all loans made by or on behalf of the city shall be made only when it is first determined that financing is not otherwise available from private lenders upon terms and conditions which are affordable by the applicant. Following receipt of loan applications, the city shall make a determination (1) , with respect to providers of housing, whether mortgage � credit for that type of housing is available from private lenders under such terms and conditions which will permit the borrower to rent or sell the housing units at a rate which the market will be able and willing to pay; or (2) in the case of an owner-occupied single family home, shall determine that the monthly principal and interest payments will be affordable by the applicant. In the case of energy improvement or energy rehabilitation loans, the originators of such loans shall determine for each such loan that not less than 75 percent of the proceeds of each such loan will be used for the purposes set forth in Section 8 hereof; and such determination shall be based upon criteria or regulations developed or promulgated by any federal or state regulatory agency, or upon energy audit standards or criteria used by any private provider of energy and approved by the public utilities commission of the state of Minnesota. In all cases in which the city provides housing finance assistance, the borrower or borrowers shall be required to repay the principal amount of the mortgages or loans, together with interest at a rate that will be at least equal to the interest rate � � • �5> �`69+�'7 which the city is required to pay on its bonds or other obligations, except in the instance of energy improvement or energy rehabilitation loans where alternative forms of security for the bonds or other obligations ensure their repayment. In establishing mortgage or loan repayments, the mayor shall ensure that the revenues received by the city are sufficient to retire the principal and interest on bonds issued to finance the programs and also to provide for the costs of administering the loans. Section 72.07 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.07 Program funds; other sources For the purpose of obtaining program funds, the mayor is authorized to apply to any federal, state or regional agency for grant or loan moneys. The mayor shall endeavor to obtain program funds from all sources in addition to the city' s bond proceeds. All grant and loan funding agreements shall be submitted for council approval. The council may impose restrictions on the use of such grant and loan funds in the resolution approving the agreement. Section 72.08 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.08 Permitted uses of funds Programs established by the mayor may provide mortgage or loan financing for � new construction of single family housing, multiple family housing townhouses, condominiums and apartments. The programs may also provide for refinancing of existing mortgages so that owners of housing units needing rehabilitation may then take advantage of rehabilitation programs administered by the city or other agencies. The prograr.is may also provide for extension of financing for rehabilitation of existing housing units. The program may also provide for the making or purchase of energy improve- ment or energy rehabilitation loans, if �t least 75 per- cent of the proceeds of each energy- improvement or energy rehabilitation loan are used for housin re airs and im rovements 1) which are a used or 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 nonrenewable petroleum based resources, and (2) which, when installed or completed, � will with respect to each housing unit directly result in �a cost effective reduction of energy use from nuclear or nonrenewable petroleum based resources. Financing may be provided to the HRA to be used by the HRA to construct . � �`i b�9�"� . � ' �6� housing on property owned by the HRA for the purpose of rehabilitating existing housing owned by the HRA or the . city. Program funds may be used to finance acquisition of land for housing and for construction of housing to the extent provided in the housing plan or program guidelines adopted by the council or the mayor. Proceeds received from the issuance of general obligation bonds and proceeds from the city' s general fund, including real estate taxes, shall be used solely to provide housing finance assistance for occupancy primarily by persons of low and moderate income. When such general obligation or general fund proceeds are to be used to finance construction or rehabilitation of multiple housing units at least 60� of housing units shall be occupied by persons of low and moderate income. Chapter 72 of the Administrative Code is hereby amended by adding a new section, designated section 72.09, to read as follows: 72:09: �� -En�rgy improvements and energy rehabilita- tion The foregoing provisions of this Ordinance, and the provisions of this Section 9, shall constitute the ordinance establishing a program for the making or � purchasing of energy improvement or energy rehabilitation loans within the boundaries of the City, as authorized by Cha ter 222, Laws for 1981 . The Cit hereb finds, deter- mines and declares that: 1 there is a continued need to reduce consum tion of ener from nonrenewable etroleum based resources; 2 there are housing units within the 'urisdiction of the Cit which are in need of ener improvements and energy rehabilitation; 3 private sources of financing are not reasonably available to rovide the needed loans for ener im rovements and energy rehabilitation; and 4 the types of energy improvements and energy rehabilitation authorized under Sections 6 and 8 hereof will reduce the consumption of energy from nonrenewable petroleum based resources or from nuclear sources. Section 72.09 of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72.i0 I�Iortgages; liens The mayor may provide temporary construction financing and permanent financing, upon satisfactory completion of the housing. In all cases of housing finance assistance, the mayor may obtain a mortgage lien upon the land and improvements. In the making of housing loans, the mayor shall attempt to obtain • � � �,> 2�'�9�"7 FHA or VA insured mortgages, or private mortgage or loan insurance, wherever possible. Al1 loans made by the city shall comply with all applicable federal and state laws and regulations pertaining thereto, including interest rate limitations and credit disclosure requirements. Section 72. 1U of Chapter 72 of the Administrative Code is hereby amended by deleting that section in its entirety and substituting in lieu thereof the following: 72 . 11 Bond proceeds; separate funds The proceeds from the sale of general obligation bonds and from revenue bonds issued for the programs authorized by this ordinance shall each be placed in a separate fund; monies placed in these two funds may be transferred or disbursed to which will combine these sources with other sources to accomplish the city' s housing, rehabilitation and energy improvement or energy rehabilitation finance Programs; and housing finance loans and mortgage credit may be made from this comtiined fund. The general obligation bonds issued under this ordinance may be retired in accordance with the city' s normal funding process for general obligation bonds. Revenue bonds or revenue obligations issued for , these programs shall be retired solely from all of the revenue sources of the programs authorized by Minnesota Statutes, Chapters 462A and 462C, Chapter 260, Laws_ of 1975, �nd Chapter 22, Laws of 1981, as defined and pledged to their repayment and their respective bond resolutions; and a separate sinking fund shall be established for the accounting of the revenues and the retirement of these revenue bonds. Section 72.11 of ChaPer 72 of the Administrative Code is hereby amended by renumbering that section as Section 72. 12. ,. : .;.- , , wH�Te = CITV CLE1iK �� - ' � 1: .� �„ .,_ , . ; . , T � PINK ..FtJ+�A.NtE . �� . . � ' �� CPULlC1,I , ��L�t'1�� , f � �CAIVRR�—DEPAR'CGiEN�T �� ..��� � �°�� G I T Y O F ..SA I N�T ����PAS[I�:L � ��� � File-� .N 0. � � ��� �� � atUE� —MAYOR , . � . . � . . . . .. . , . � . . . � � . . r . . . �= O�GGZ�����. Ordinance N0. ;. ; r � Presented By ' Referred o Committee: Date Out of Committee By Date a SEGRION 2. T'his ordfriaace shall bw de�►ad a gart af tbe Safnt Paul ; . Ace�efnistrative: Code and ehall be incorporated thfrein ad�nci qiven ` the cfiapter Ant�ber a�d/or seetion n�r desic,�ated bereia. ; � iS�C'PION 3. . This ordinanc+� �hall take ef3�eet r�d b�e in forsae thirtp (30} days frc�m and after 3t�a �assags, aip�rc�va2 and ��ca�+c�,. � _ 4 , :; t ; -; �S� ; ' � : �, `: ; � . i J COUNCILMEN Requested by Department of: Yeas Nays Butler [n Favor Hozza : Hunt Levine Against BY Maddox , Showalter Tedesco Form Approv y ttorney � Adopted by Council: Date �� Certified Passed by Council Secretary B By j Approved by Mayor. Date Approved by Mayor for Submissian to Gouncil j t gy By ... . . ... . . . . . .. . . .. � . . .. ,. . � .... . _.....i.. . . � . . � . � . . ��.