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276570 WMITE - CITY CLERK ����w� PINK - FINANCE / CANARY - DEPARTMENT COUt1C1I q BLUE - MAYOR G I T Y O F �S A I N T PA U L � File N O. - C uncil Resolution Presented By �� Referred To Committee: Date Out of Committee By Date RESOLVED, that upon recommendation of the Mayor and pursuant to Section 10.07.4 of the Charter of the City of St. Paul, there is hereby transferred the following in the 1981 budget: From To General Government Accounts Contingent Reserve - General 09060-536-000 $59,478 Department of Community Services Division of Housing and Building Code Enforcement Conservation & Maintenance 03308-111-000 Full time certified $59,478 Appr as to Funding Approved . Director, Department of Finance dget Di ector and Management S rvices ��r�-t �9��/ �,U(,� COUNCILMEN Yeas Nays � Requestgd by Department of: Hunt Communitv Services �evine In Favot Maddox McMahon � ��� __ Against BY Tedesco ' on MAR 2 4 1981 Form Approved b it ttor y opted by Cou ►l: Date — Certified assed by Council�Secretary BY Bv ---- � MAR 2 5 1981 Ap r by Mayor for m sjon to Council Ap o ed by lflayor: D e — By BY �B�tisHEO qPR 4 19g� ` � . ���� THE NEIGHBORHOOD HOUSING SERVICE MODEL FOR PUBLIC/PRIVATE COOPERATION Today in Saint Paul , the foremost example of public and private cooperation in meeting a community need is the Neighborhood Housing Service. This program has successfully combined the resources of local government, private institutions , and neighborhood residents in order to reverse blight and decline in selected inner city neigh- borhoods. A Neighborhood Housing Service (NHS) project is a small , neighborhood based private effort that combines commitments of local government, financial institutions , and residents to work on housing and neighborhood improvements. Neighborhood Housing Services are the primary activity of the Neighborhood Reinvestment Corporation. This organization originated when the Federal Home Loan Bank Board was seeking new ways for Savings and Loan Associations to become more active in urban lending. While conducting a workshop in Pittstiurgh, the Bank Board staff discovered the NHS program. This first NHS began in the late 1960' s when Pittsburgh city officials, community representatives and lenders put together a locally controlled, private, non-pro£it �corporation. NHS offered comprehensive housing rehabilitation services to residents o� the Central Northside neighborhood �-nd produced significant results in restoring confidence and improving the community. After carefully monitoring and evaluating the program, the Bank Board recommended that NHS be replicated on a trial basis in other cities. In 1974 , the Bank Board and the United States Department of Housing and Urban- Development joined forces and . created the Urban Reinvestment Task Force to expand on the Board in- itiative. Legislation creating neighborhood reinvestment and changing � its status from a demonstration program to an ongoing corporate entity was passed by Congress and signed by President Carter in October, 1978 . Since 1974, 92 Neighborhood Housing Services have been developed in 110 neighborhoods throughout the country. . . ' � ( ' ����� - - 2 - The Twin Cities ' experience with NHS began in 1974 when the Twin Cities Council of Savings and Loans contacted the Urban Reinvestment Task Force for assistance in establishing a local NHS. Initial response from bankers, city officials , and neighborhood leaders was positive and a local coordinator �vas hired to develop a Twin Cities program. Following a series of �vorkshops, two neighborhood di��ectors were hired, one in each city. After a very careful and thorough screening process, Merriam Park was chosen as the target area in St . Paul . Using city census data and technical assistance from the Department of Planning and Economic Development, the selection committee considered potential areas according to a number of demographic criteria. Botfi the West Side and Merriam Park fit all the criteria. The latter neighborhood was chosen for the following reasons : * Merriam Park exhibited early stages of deterioration in a well defined area as opposed to scattered pockets o� de- terioration on the West Side. � * Merriam Park had no existing housing programs speci£�c�ly designed to meet its needs as did the l�est Side. * Merriam Park was considered a more manageabie size than the West Side. The NHS concept is based upon several well-defined precepts : (1) NHS is a local program. The Urban Reinvestment Task Force . is the catalyst. It lirings to each local situation detailed knowledge of the program and the .aays in which it may be • adapted. As local capacity develops, the role o£ the task force gradually diminishes . � ����� - 3 - • (2) NHS is non-governmental . Control is vested in a board of directors . Governmental representation is usually limited to one member of city government. (3) NHS is non-Uureaucratic. An office is usually staffed by a director , an associate director, and a support person. Each program develops its own priorities and policies . Terms and interest rates vary from case to case and lack of red tape minimizes loan processing time. (4) NHS is a self-help effort. NHS operating costs are funded entirely tllrough local sources and local contriliutors supply much of the high risk fund. Strong citizen interest demon- strates neighborhood pride and is one way in which potential investors become convinced that the residents care about the neighborhood and want to remain. (5) NHS is not a giveaway program. The high risk loan fund is a revolving fund; even for high risk applicants there must _ be a prospect for repayment. Most loans are secured by a lien on the property. (6) NHS targets specific neighborhoods. The pxogram addresses itself to areas that are essentially sound, but show�ng signs of deterioration. (7) NHS involves code enforcement. NHS attempts to obtain a - city commitment to conduct a flexible code enforcement pro- . gram because it stimulates investment when an investment mentality is nut present. � The strength of NHS lies in its ability to combine public and private resources and focus them upon a common goal �. . . the improve- + ����� - 4 - ment of a selec `e� neighborhood. In order to facilitate the realiza- tion of that go31, strong roles have been identified for the three types of partic�p�nts . `�eighborhood Re=id�nts ' Role (1) Emphas�ze the point that final responsibility for neigh- borhoo� stabilization lies with the residents . (2) Visually communicate neighborhood pride. (3) Support rec{uests for public service improvements and investrr:ents. (4) Facilitate acceptance of a code enforcement program: (S) Support acceptance of NHS program and goals. (6) Consider attendant neighborhood problems . Financial Institutions ' Role (1) Make conventional loans in the neighborhood. (2) Underwrite operating budget. (3) Actively participate on board and committees. . (4) Raise funds for the high risk loans. • City Government Role (1) Participate on the site selection committee and provide data available to aid in the selection process . . , . , . � , ���� � - S - (2) Assume a contributing and not a dominating function. (3) Deliver a systematic code enforcement program. (4) Make needed public improvements in the neighborhood. The Saint Paul D9erriam Park NHS presents strong evidence that such a combination of private/public resources can be effective in restoring city neighborhoods. By the end of 1979, Merriam Park NHS had turned the community around by generating $�,5 million of reinvestment. The success of this program is clearly indicated by the following program results. (SEE ATTACHMENT. ) By the end of 1980, two city inspectors working with NHS will have completed 60$ of the homes in the designated target areas and 30� in surrounding conservation areas . Their experience indicates that about half of the inspected homes will receive some improvements. Each inspection has generated an average of $3, 100 in home improve- ments. Within the target areas, each inspection produced an average of $5, 600. In addition, this activity has produced a considerable amount of city revenue � through the required building permits. All of this has been accomplished at the remarkable ratio .of one ad- - ministrative dollar to sixteen improvement dollars. The success of Merriam Park has promoted the development of two new programs; one in Dayton ' s Bluff and the other on the West Side. Boards �f Directors have been chosen for tfiesetwo areas and staff are � currently being hired. The residents of the West Side and Dayton ' s ' .Bluff neighborhoods have expressed an interest in inviting the insurance industry to join in the NHS partnership. Representatives �• of major property casualty writers in� Minnesota were invited to an introductory luncheon in August, 1979. After a series of workshops and educational sessions , insurance representatives indicated their commitment to pursue involvement as a fourt� partner in NH5. . . . . ,��� _ 6 _ . The new pro-grams have requested the assignment of two inspectors for three days per week. (Merriam Park is closing out its activities in ' 81 , but will require some additional inspector time.) These inspectors are new positions and are not included in the budget. How- ever, the success of Merriam Park, the departmental and mayoral emphasis on conserving existing housing stock, and the program' s concept of coordinating and focusing public/private resources combine to present a strong case for these positions . . CNU:ne 11/14/80 �. _.��.� ti MERRIAM PARK PJEIGHBORHOOD HOUSING SERVICES, INC. NHS PROGRAM GOALS �� (1/1/7G-12/31/79) 1/1/80-9/30/80) tt � � � � S � � � � � S l. Encourage code compliance in neighborhood using City assistance. 623 122 2. Provide technical assistance (Cash) 4�0 $ 92 ,900 37 $ 140 , 350 3. Package "bankable" lo�ns for neighborhood residents (scopes, bid referrals) . 219 1,192 ,041 22 191 ,000 4 . Provide NHS revolvinc: � loans or MHFA grants for home improvements to G-45 195 ,465 G-8 32 ,000 "unbankable" resid�>nts . L-66 304 , 3�5 L-6 40 ,369 5 . Assist residents in securing conventional loans for refinance and/ or rehabilitation. 10 2n4 , 500 3 120 ,000 6 . Provide purchase an�? home ownership counseling services. 3 90 ,000 2 188 ,000 7. Improve delivery of � government services to area; capital improve- ments for ,rea res�dents. 2 °639 , 000 - - 8. Assist neighborhood residents to improve the neighborhood (special projects) . FAIR - - - - REBATE PROGRAM 31 84 ,077 70 366 ,829 9. Encourage revitalization ^� of neighborhood commercial areas . 10 795 ,000 250 ,000 HOME IMPROVEME�TT DOLL'ARS $ 2 113, 368 $ l,078, 548 �__-`� . TOTAL REINVESTMENT IN MERRIAM PARK $ 4 , 965, 9Y6 .00 �r�,��"''�� _�� ���� � y PROJECTED PROGR�IM GOALS FOR 1981 # � S $ � S Code Compliance (Inspections) 50 Technical Assistance (Cash) 50 $ 150 ,000 "Bankable" Loans 30 225 ,000 NHS Loans 12 50 ,000 MHFA Grants 8 50 ,000 Refinance *McKnight 4 248,000 Home Purchase Assistance - - Capital Improvements - - Special Projects - - 154 $ 723,000 ,, _. _....,_...._.__.�...._. ... .. �..., ---,.x:.�......�„ . ._... , ..�,._�,�-._.....,....,.�TT.�.,.�,-_-�--_�-�-�--�--._.._-z.���,�..-�-�.-.q.�- • -:-. -. �-- Cz�x o� ��.�:��r ��.��. :f; ,>.. � ~ �j `�" , OI+'FICE OF TFIE CITY Cfl-QI�CZL ���� �, :�- �. � v,. f ::;y,.,, y; " jl�ld�asif...��• , . j's �'„"��iadGr.�.,: ' . ����, � �� Da t e . March 19, 1981 �:; ,� . .. CQ �� �3 �T�' � � � � �' �� �°� TO : Soint Pac�! Ci�� Co�nci � FROI� � CUiTt!'7i6��@� Oi� FINANCE, MA�lAGEP1ENT & PERSONNEL George ��cMahon , chairman, makes the fotlov�ing report on C. F. _�� Ordintince (8) �]X Resolufiion �.� Other TlTL� : . At its meeting of March 19, 1981 , the Finance Committee recommended approval of the following: , . _ _. 1 . Resolution approving budget amendments in CD Years III , IV, V, and VI for CD Year III Selective Clearance and CD Year IV Rehab Grants projects, CD Year V Tree Removal and CO Year Vi Tree Planting Project. � 2. Resolution approving budget amendments in CD Year VI to provide additional $20,000 for Handicapped Accessibility for city buildings and services program. 3. Resolution approving transfer of funds to fund new positions of Electrica7 Inspector and Plumbing Inspector to work in National Housing Service areas. 4. Resolution approvina mortgages pledged by Guaranty State Bank of St. Paul as collateral to protect city funds held in said bank. (11699-GM} 5. Resolution revising minimum qualifications for Building P1aintenance Supervisor--Fire Department. (11755-Gh1) 6. Resolution authorizing Minnesota Plutual Life Insurance Company to pay dividends on premiums paid by employees. (118�7-GM) 7. Resolution approving issuance of approximately $2,50�,000 of revenue bonds by the Port Authority to finance construction of facility for Hartzell Corporation. (11798-GM) 8. Resolution approving issuance of approximately $1 ,345,00� of revenue bonds by the Port Authority to finance acquisition of site on South l�labasha Avenue for construction of industrial facility by 4Jilliam C. Morris. (11800-GM) (CONTINUED . . . ) CIT't Kr�I_L SEVBNTH FL003 Sr�ItiT Pr�UI.., 1�IINiVESOTA 55102 F, /� � f'� ��^�� 8/-/� OM 01: Z2/2975 Rav. : 9/$/76 EXPLANATION OF ADMINISTRATIVE ORDERS, ei�'y��� ' RESOLUT ONS, AND ORDINANCES �r� �ry��� N� . Date: J�UARY 7, 19 81 /I�/,� � ,/�.�� � U R ` Z TO: MAYOR GEORGE LATIMER P'R: THOMAS J. KELLEY � � RE: TRANSFER FROM CONTINGENT RE5ERVE - GENERAL ACTION REQUESTED: Approve and forward to Council. PQRPOSE AND RATIONALE FOR TBIS ACTION: To fund two new positions, an Electrical Inspector and a Plumb.ing Inspector to work in the two new NHS (National Housing Service) areas. They will be in our Conservation & Maintenance Activity. Funding is for period of January 24, 1981 through December 31, 19�1. ATTAC�IENTS: Council Resolution