274704 WHITE - C�TV CLERK
PINK - FINANCE G I TY OF SA I NT PALT L Council ���.y�f.y�
CANARV - DEPARTMENT File NO. � ( ( 4
� BLUE.� - MAVOR
Council Resolution page � of 4
Presented By
Referred o Committee: Date
Out of Committee By Date
COMMENDING THE McKNIGHT FOUNDATION
FOR ITS OFFER TO CREATE A PdINNEAPOLIS-
SAINT PAUL FAMILY HOUSING FUND AND
DECLARING THE CITY'S SUPPORT OF USING
THE FUNDING IN SAINT PAUL.
WHEREAS, It has long been the objective of the City of Saint Paul
to expand housing opportunities for all its citizens, regardless
of their family or economic status; and
WHEREAS, The current rapid inflation in the cost of both new
and existing housing, high rates of interest and shortages of
housing capital require the City of Saint Paul to seek forms
of assistance from all potential sources - including foundations -
to supplement forms of assistance now available from local, state,
and federal governments; and
6VHEREAS, The City of Saint Paul is now considering a new element
of its Comprehensive Plan entitled Housing Saint Paul, 1980-1990,
which has as its central goals the expansion o housing supply
and the retention of young families as city residents; and
WHEREA5, The recent report of the City' s Housing Task Force has
demonstrated the urgent need for new forms of assistance for low-
and moderate-income families, particularly in the rental housing
area; and
WHEREAS, Increasing housing costs have seriously decreased the
ability of low- and moderate-income families to afford appropriate
rental or owner-occupied housing; and
COUNCIL114EN Requested by Department of:
Yeas Nays
Butler In Favor
Hozza
Hunt
Levine _ __ Against BY —
Maddox
Showalter �
Tedesco Form Appro by City Attor
Adopted by Council: Date — -
Certified Yassed by Council Secretary BY
sy
/approved by ;14avor. Date _ App ve by Mayor for iss on,to Council
By _ _ _ By
- ? Page 2 of 4
������
WHEREAS, A proposal entitled McKnight-D�inneapolis-Saint Paul
Housing Fund, dated February, 80 , has been developed and sub-
mitted to the McKnight Foundation by the Mayor of Saint Paul �
and the Mayor of A�inneapolis with the support of the Minnesota
AFL-CIO; and
WHEREAS, The objectives of this proposal are to:
- Increase the supply of affordable family housing through
new construction;
- Improve the utilization of the existing moderate-cost detached
housing stock through the construction of alternative housing
for one- and two-person households, and improve the condition
of existing housing;
- Make the purchase of existing housing affordable for moderate-
iricome families;
- Create effective financing and rental assistance programs;
- Encourage innovative housing design, including alternative
energy systems, and provision for large family units; and
WHEREAS, The McKnight-Minneapolis-Saint Paul Family Housing Fund
will assist four district programs:
- The construction of new housing for young families;
- The construction of new housing for "mature families" ;
- The provision of assistance to young families purchasing existing
detached housing;
- The substantial rehabilitation of existing structures for rental,
cooperative, and condominium housing for young families; and
WHEREAS, Assistance from the Fund will be distributed equally in
dollar terms between the Cities of 1�Zinneapolis and Saint Paul to
assist moderate-income families; and
WHEREAS, On a program-wide basis, at least 25 percent of the units
in developments assisted by the Fund will be available to lou�-income
households, at least 55 percent to moderate-income households (those
with incomes between 80 and 110 percent of inedian) , and no more
than 20 percent to middle-income households (those with incomes be-
tween 110 and 130 percent of inedian) ; and
WHEREAS, Decisions on which housing developments will be assisted
by the Fund will be r.lade by a Board of Trustees constituted as
follows:
- Three representatives of the Organized Labor Pension Fund
Pool, one of which will be an employer representative;
- The Niayor of Minneapolis;
- The Mayor of Saint Paul;
- Two members of the Saint Paul City Council;
- Two members of the Minneapolis City Council;
- Chair of the Minneapolis Housing and Redevelopment Authority;
- Chair of the Saint Paul Housing and Redevelopment Authority;
- Four private sector representatives from the P�inneapolis/
Saint Paul financial and business community, appointed by
the Mayors with City Council approvals;
r
� � ' Page 3 of 4
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- One citizen representing Minneapolis, appointed by the Mayor
with City Council approval;
- One citizen representing Saint Paul, appointed by the rZayor
with City Council approval; and
WHEREAS, The Board of Directors of the McKnight Foundation is
prepared to make the following commitment:
The Board of Directors of the McKnight Foundation has
approved a commitment of $15 ,000 ,000 ($10 ,000,000 in
program-related investments, and $5 ,000,000 in program
grants) to assist the Twin Cities and organ�zed labor
to substantially increase, within the next five years,
affordable housing opportunities available to moderate-
income families residing in the Cities of Minneapolis and
Saint Paul; and
WHEREA.S, This commitment is contingent upon obtaining certain
rulings from the Internal Revenue Service as they relate to the
r�cKnight Minneapolis-Saint Paul Family Housing Fund and upon general
compliance with the details of the plan, as outlined in the document
P�cKnight-Minneapolis-Saint Paul Family Housing Fund, dated February,
1980, and in supporting memoranda dated March 4 and March 5 , 1980;
and
WHEREAS, The monies committed by the McKnight Foundation to the
' Fund will be used to assist moderate-income households through
Graduated Assistance Plans (GAP) for both renters and owner-
occupants; and
WHEREAS, The financial assistance to be made available by the
Fund will substantially expand the capacity of the City of
Saint Paul to use monies available from local, state and federal
sources to provide affordable housing opportunities;
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SAI;d 1 PAUL:
That the City of Saint Paul commends the McKnight Foundation for
its offer to create a McKnight-Minneapolis-Saint Paul Family
Housing Fund with the above-stated objectives, programs and
structure.
That the City of Saint Paul, within established City budgetary,
planning and development control policies, regulations and pro-
cesses, will seek to obtain--on a project-by-project basis--
local, state and federal forms of financial assistance, as well
as development control permits, necessary to the development of
hous,ing �inancially assisted by the McKnight-Minneapolis-Saint Paul
Family Housing Fund.
That, by resolution, the City of Saint Paul from time to time
WHITE - C�TV CLERK 2'�4'�Q4
PINK - FINANCE GITY OF SAINT PAUL Council
CANARV - DEPARTMENT
, BL'U,E � - MAVOR File �O.
Council Resolution Page 4 of 4
Presented By
Refer ed To Committee: Date
Out of Committee By Date
will advise the Board of Trustees of the r�icKnight-Minneapolis-
Saint Paul Family Housing Fund regarding the use of the Fund' s
assistance within the City of Saint Paul, including positions
with regard to which sites should be given priority for Graduated
Assistance Plan (GAP) and other forms of assistance obtained from
the Fund, income mix of housing developed--both on program and
project scales--and the City' s citizen participation process appli-
cable to the development of specific sites.
That the City of Saint Paul urges the Board of Trustees of the
McKnight-Minneapolis-Saint Pau1 Family Housing Fund to explore
means of providing instances of GAP assistance to families making
less than 80 percent of the Metropolitan Area' s median income,
thereby expanding the City' s ability to achieve its commitment
to low-income families as set forth in the City' s Housing Assistance
Plan.
That the Department of Planning and Economic Development will be
the lead agency in assisting the Fund to implement these programs.
That the Mayor' s Office be requested to provide copies of pertinent
information to District Planning Councils and other groups upon their
request so that they can be informed as to the nature of this effort
and so that they can suggest ways in which the Fund' s proposed
activities can be successfully implemented.
That the Mayor has the support of the City Council in his efforts
to further develop this proposal.
COUNCILMEN Requested by Department of:
Yeas . �,�� aH�N Nays �
�� [n Favor
Hunt
Levine _ 4 __ Against BY
Maddox
Showalter
Ted APR �1980
Ado y Council. Date Q Form Approve y ity Atto n
ertifie . ed by C ncil Secr�tary BY
B 1
f�pp v by iVlavor: Da _ APR � 4 �� App by Mayor for ss �n�o Council
By — By
� APR 1 9 1980