274511 N�H17E - CITV CLERK � �����
PINK - FINANCE GITY OF SAINT PALTL Council
CANARV - DEPARTMEN
BLUE - MAVOR File NO.
ouncil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, the Legislation Committee has reviewed and discussed
the issue of bonds for housing projects in redevelopment
areas and housing rehabilitation, therefore be it
RESOLVED, that the City Council supports the position of the
League of Minnesota Cities and amendments to Chapter 462
involving municipal housing rehabilitation and redevelopment
bonding programs and projects.
COUNC[LMEN Requested by Department of:
Yeas �AHON Nays �
��� In Favor
Hunt
I.evine _j�,�__ Against BY
Maddox
ShowZlter MAR 4 �
Tedesco Form ve b 't Attorne
Adopt y Coun il: Date Y-- -y--- - --
rtified Pa_ d by ouncil �ecr ar BY
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tapp v by 1�lavor: Dat _ Maa � �98� Approved by Mayor for Submission to Council
BY Z �J ���0 BY
� . . � .� - FEB 151980 : :
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A Bill For An Act �;,� � -��, ,,,,., ,
2 An Act relating to municipal revitalization;
3 authorizing the planning, implementation and
'� financing of single family housing rehabilitation -
5 . loan and grent prograrrms; authorizing the plan-
s � ning, implementation �nd financing of multi-
� • family moderate rehabilitation loan and grant �
8 programs; authorizing the planning, implemen-
9 tation and financing of single family housing
1C mortga�;e programs in conjunction with munic-
11 ipal redevelopment and revitalization; authoriz-
12 ing the planning, implementation and financing
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To: Legislation Committee Mer.ibers
Fr: Steve Wellington
Re: Amendments to Municipal Housing Bond Bill
I have attached a bill being offered by Representative
William Schreiber and Senator Frank Knoll. It is being
supported by the League of Minnesota Cities. It expands the
authority for municipalities to issue bonds for housing
projects in redevelopment areas and for the purposes
of housing rehabilitation. It is clearly in our interest
to support this legislation since it will enable us to
proceed with certain types of housing projects more
easily than if such legislation did not exist.
Proposed Policy
The Gity supports the ammendments to Chapter 462 involving
municipal housing rehabilitation and redevelopment bonding i
f which.- are being supported through the League of Minnesota �
Cities.
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� the dwellin� to be occupied by one person or family as a principat residence. • "�'
2 A sin le familv hottsing rehabilitation loan program may be implemented by
3 an authoritv envwhere within the boundaries of the municipality with or
4 without reference to an approved redevelopment plan. A single family
5 housinn rehabilitation lo�n ma_v be made onl_y to persons or families within
6 the gross income limit of Section 462C.03, Subdivision 2. Provided,
• ? however, a single family housir� rehabilitation loan may be ma�e without
8 regard to the income level of the loan recipient if the single family housinn �
9 is located within an approved redevelopment pro�ect �rea or if the autho-
10 rity, by resolution. finds that the pro�ert�to be rehabilitated quelifies or �
11 could qualify as a "redevelopment projectt' under Section 273.73, Subdivision
12 10. The sin�le family housing reh�bilitation loan interest rate shal.l. be
13 established by the authority. The term of the loan sh�ll be established bv
14 the authoritv but the period oi the los.n shall not exceed thirtv yezrs. An
15 authority mey secure the sin�le f8rnily rehabilit�tion lo�n b�� obtaining a ,
Z6 first or second mortg�ge. on the property. In order to obtain a first -
17 mort��ge securitv interest on the praperty 8n autharitv m�� use u� to 75 .
18 pertent of the proceeds of a reh�bilitation 10� which is subject to income
19 limitati.o�;, and 50 percent of the proceeds of a �rehabilitation Ioan �chich is �,
20 not subjeet to income limitation, for�the purpose of acquiring anv interest ar �
21 , lien in the property. A single familv rehabilitation grant mav be made only
22 pursuant to federa2 lew and re�l.ation and from feder�I funding sources. . '
23 Multifamily housing shall .me�n �a four or more unit dwellin� each unit .:
24 owned or to be owned, or rented or to be rented, and occu�ied bv one person
25 or famil_y as � princip8l residence. A multifamiiy housin�rehabilitation loan
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26 .�nd grent progr�m ma be implemented anywhere within the boundaries of
2? the municipalitv with or without reference to an �pproved redevelopment
28 � plan, but only if the authority, by resolution, finds that the property to be
29 rehabilitated qual.ifies or could qustify as a "redevelopment project" under
30 Seetion 273.73, Subdivisian 1Q or that the rehabilitetion lo�n or grant meets
31 the requirements of the ma3erate rehabilitation program provided by the .
32 federel government pursuant to 24 C.F.R. Seetions 882.401 to 882.519. The
33 multifamily rehebilitation loan interest rete sh�21 be established bv the
34 authority. The period of the loan shall be established b�� the authoritv brat
35 the period of the loan� shall not exceed thirtv _years. An �uthorit_y may
2 -
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1 secure the multifamil rehsbilitation loan bV obtainin a first or second �u'�'""
2 mort��ge on the property. In order to obtein a first mortga�e securitv
3 interest on the propertY an autharity may use up to 50 percent of the
4 proceeds of a rehabilitation loan for vurposes af ecquirin� any interest or
5 lien in the property. The amount of a multifamily rehabilit�tion grent m�v �
6 be made only pursuant to federal law a,nd re�ulations and from federel
7 funding sources. The Rowers �ranted to an euthoritv bv this subdivision are
8 supplemental and in addition to those powers grented by Chapter 462C.
9 Section 3. Minnesota Statutes 1979, Section 462.445 is amenc3ed by
10 adding a subdivision to read: �
11 Subd. 10. [NEW CONSTRUCTION MORTGAGE ASSISTANCE.] An .
I2 authorit_y may develop and administer a mortgage assistar��e program for
I3 the construction of multifamiZy rental housing or single fami2v housing on
14 such terms and conditions as set forth in subdivisions 10 and 11. Such
15 housing shall be constructed onlv upon propertv which the euthority fincis, bv .
16 resolution, qualifies or could quPJ.ify as a "redevelopment project" under •
17 section 273.73, subdivision 10 and which has been acquired by the authoritv
18 and conveyed to the mortgagor by the authority. Mortgages m�:y be m�de
19 available v+Fithout regard to the income of the recipien�. Sin�le famil�
20 housing shall mean a one, two or three unit dwelling, each dwelling to be
21 . owried and at least one unit therein to be occupied by one person or familv
22 as a principal residence. Multifami2y rental housinD sh� mean a foerr or
23 more unit dwelling, each unit rented or to be rented.and occupied by one _
24 person or femily as a principal residence. Mort�age assistence may be ma�e
25 for the construetion of multifamily rentel housing onlv if fifty percent ar
26 .moFe of. the units have two.or more bedrooms and are, during_the term of -
27 the mortgage, held for oceupancy bv persons or families with children. The
28 mort�8ge period sh�ll be established bv the authority but sh�ll not exceed 40 .
29 years in the c�se of multifamilv rent�l housing anc� 30 ye�rs in the cese of
30 sin�le family housing. The powers granted to an authority by this subc}-.
31 ivision are supplementel and in addition to those powers granted bv Chapter
32 462C.
33 Section 4. Minnesota Statutes 1979, Section 462.445 is amended by
34 adding a subdivision to read:
3
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, Subd. 11. [REVENUE BONDS:� Notwithstandin� &nv other l�w .
1
2 eneral or ecial in the makinP or Durchase of lo�.ns or other securities and
3 in the issuance of revenue bonds in furtherance of the pro�rams authorized "
4 in Section 462 445, Subdivisions S an� 10, an authoritv may exercise any a.nd
g all� of the same powers as the Minnesota housing finance a�enc_y is
g authorized to exercise under the provisions of Chzpter 462A. The revenue
7 bonds shall be pavable from all or a �ortion of program revenues and other
g sources of authority revene�e. The powers gr�nted to a.r► �.uthority by this
g subdivision are supolemental and in addition to those powers granted by
10 Chapter 462C.
11 Section 6. This act shall be effective the dzy after enactment.
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