275822 s"L�_.��
�
there were 132 multi-unit residential buildings that
had been inspected for certificate of occupancy but were
not yet certified because of improvement work needed.
At that time, a total of 303 buildings had been inspected
and 146 multi-unit buildings remained to be inspected.
„
_ . „
In addition to District 8, rehabilitation of multi-unit
structures will also be emphasized in the six nevrly
established Identified Treatment Areas (ITA's). (See
Inventory of Housing Needs, Department of Planning and
Economic Development, Pages 9-10).
2. 3 SMALL HOUSING UNITS From 1950 to 1978, St. Paul s average household size
decreased from 3.38 to 2.46 persons per household. TF�is
decline in household size has resulted in increased de-
mand for smaller housing units in both the ownership and
rental housing markets. Since household size is pro- �
�ected to continue to decline, the demand for small units
is expected to be a permanent segment of the market.
�, �� According to Metr000litan Council projections of housing
� unit needs, approximately 64� of St. Paul 's new housing
construction over the next'ten years should be one and two
bedroom units. (Metropolitan Council , (Proposed) Guide- �
lines for Review of Housinq Elements of� om�re ensive
Plans , f�arch 13, 1978).
2.4 FAMILIES AND LARGE A critical housing need exists in the area of rental
FRMILIES housing for families with children, and, in particular,
. . large, low income families. This need exists for three
reasons: First, a shortage of rentai units with three
or more bedrooms, second, the reluctance of many land-
lords to rent to families with children, and third,
the unaffordability of those renta7 units which are
suitable for families with children. �
The estimated housing assistance need for lo�rer income
families in St. Paul is 5723 households, 1408 of which
are Jarge families (5 or more persons). (See Estimated
Housing Assistance Needs and Pro ram P�ix Goals for
Metropolitan Area Communities, Housing Division, htetro-
politan Council , August, 1979 . .
?. 5 LOW AND h'AD�RATE According to income guidelines , approximately 50b of
� INCO�,iE HOUSEHOLDS St. Paul 's population is eligible for subsidized housing.
The income limit �or Section 8 subsidized housing is 80%
of the SMSA median income, which is curreritly �16,800 for
a family of four.
-3- , .
•
Metropolitan Council 's estimate of housing assistance
. need is based on the number of households who are .both
income eligible and presently inadequately housed.
According to their estimates, 18,775 households in
St. Paul are in need of housing assistance. But since
no housing assistance programs allow for any assistance
to single individuals unless they are elderly or handi-
capped, only the level of family and elderly need is used
in the allocation of housing assistance funds. The
elderly need is estimated to be 6051 households and the
family need is estimated at 5723 households, for a total
housing assistance need of 11 ,774 households.
Based on St. Paul 's and other cities' experience �rith
housing programs, it has become obvious that the income
group earning between 80� and 11OX of the SMSA median
family income ($16,800 to �23,100 currently for a family
of four) is in need of some type of housing assistance if
they are to enter the homeownership market in the face of
• rapid escalation of the cost of housing. .
- Nouseholds at the upper end of this income category can
� afford what t�etro Council d�fin�s as "modest cost"
housing. Currently, modest cost housing is defined as
single-family housing sellin below �55,000 or multi-unit
housing renting for �350 to �460 monthly for a family of
four or five.
. The goal of homeownership is quickly receding for many �
families who once had sufficient income for purchase.
A family of four with an income of �20,000 can afford
only �416 monthly in housing costs (based on the 25
percent income test). A $40,000 mortgage at 13 1/2�
interest rate results in a monthly payment of $460.
Taxes , insurance, and utilities wi11 add $100 to $200
a month, thus placing even a very nodest home out of
reach for such families.
For families with incomes bzt►r2en 70 and 95 percent of
the median ($14,700 to $19,950) , rental housing remains
the most corrmon housing option. tdith the rental market
becoming increasingly tight (particularly for families) ,
new rental housing construction is essential . The cost
• of such new construction units, however, results in
rents considerably beyond the incomes of this population
� group. -
-4- -
•
, ,
At an average cost of $40,000 per unit, an apartment or
rental townhouse for such a family, financed at a
12 pereent 5nterest rate over a 30 year period, results
in an approximate monthly rental of $576. Families
between 70 �nd 95 percent of the median income can
afford $300-$400 a month in housing costs.
2.6 ��IDDLE & HIGHER INCOME An economically diverse population and economic inte-
NOUSEHOLDS gration within neighborhoods are established cifiy ob-
jectives. The major recommendations of the St. Paul
Migration Comnittee adopted by the City Council in 1975
include the establishment of a goal for the City of
�. "a balanced and diverse population, broadly representa-
tive of the metropolitan area population." (Saint paul ,
Population Chanqe: Challenge and 0 ortunit , Report of
the Migration Committee, July, 1975 . In marginal or
deteriorated areas of the city attraction of middle and
higher income households is essential to successful re-
development and economic integration.
• 2. 7 ELDERLY & HANDICAPPED Housing needs of the handi�capped household are very
HOUSENOLUS difficu
lt to ascertaln. The 1970 census reported 15,393
handicapped persons in St. Paul , and the hietropolitan
Council estimates that about 3A of the one and two
person households eligible for subsidized housing are �
handicapped. Estimated Housinq Assistance Needs and
Pro ram Mix Goals for ��Ietro olitan Area Co�nunities,
Housing Division, htetropo itan Counci�; August, 1979),
Although their numbers are declining slightly, elderly �
households continue to comprise a sizeable share of
St. Paul 's population. Two years ago, it was estimated
that the 1980 elderly population tirould approximate
32,210 persons. (See Demographic Information Profile
of St. Paul , St. Paul City Planning, t�arch, 1978 .
In their estimates of housing assistar,ce need, Metro
Council estimates tnat 7570 lower-income elderly and
handicapped households are inadequately housed. (See
Estimated Housinq Assistance Needs and Proqram Mix Goals
for Htetropolitan Area Communities, Housing Division, �
Metropolitan Council , August, 1919).
• �
-5- _
3.0 PFOGRn�i OBJECTIVES
�.� �
�3 .-�!�: ,.�
� � : �:�.>:�:��.,�
On the basis of �the needs identified, the following
objectives are established for bond financed housing
programs in St. Paul :
Potential Average
Pro ram Range Per Unit Program �
Activity �Units Cost Dollar Range
It�1PR0VEMENT & EXPANSION OF .
<
RENTAL NOUSING SUPPLY
l . Rehabilitation of multi- 500-700 Units �30,000 $ 15,000,000 - � 21 ,000,�
unit structures for rental �
occupancy • .
2. Construction of new 600-1500 Units �45,000 � 27,000,000 -- $ 67,500,(
rental housing
IhtPROVEh;ENT OF OWNER
FtOUSING & EXPANSION OF •
O:JNERSHIP OPPORTUNITY -
� Rehabilitation and pur- 150-225 Units $60,000 $ 9,000,000 - 5 13,500,(
hase of ownership units
`� in multi-unit structures �
4. Construction of new 200-250 Units �75,000 $ 15,000,000 - � 18,750,t
housing in multi-unit �
s�ructures for owner oc-
cupancy, purchase of units
5.Rehabilitation and pur- 700-800 Loans �65,000 � 45,500,OU0 - $ 52,000,(
chase of single-family
homes .
6.Expansion of modest- 700-900 Loans �60,000 5 42,000,000 - � 54,000,!
cost owncrship opportu- � �
nities by providing mort- '
ga�e loans for the pur- �
chase of existing or new- -
ly constructed single- �
family homes or coopera-
tive units
PROUIDE FOR LARGE FAMILY �
r;�EDS � � • .
7.f'rovide for acquisition 100-250 Units $60,000 $ 6,000,000 - � 15,000,
•of single-family homes
-- for large family units
TOTAL 159,500,000 - 241 ,750,
_�_ .
.
3. 1 REHABILITATION FOR Because of the need for rental units and the difficulty
RENTERS � of building new ones, a high priority is placed on the
preservation of rental housing in the existing supply.
Bond financing is necessary to achieve needed rehabilita-
tion with as little increase in rental rates as possible.
Rental units to be rehabilitated under this program will
include units assisted under the Section 8 moderate
rehabilitation program and may inc]ude units assisted
under the Section 8 substantial rehabilitation program.
Section 8 moderate rehabilitation assistance has been
cor�rii tted for 75 uni ts from fi scal 1980 funds. The
Public Housing Agency is currently making application for
expansion of the ��oderate Rehabilitation Program with an
additional 60 units. A description of the multi-family
rehabilitation program instituted by the City is included
• �n.the appendix.
3.2 CONSTRUCTION OF NEW As indicated in the draft housing policy, it is the City s
RENTAL HOUSING intention to naintain a balance between rental and owner-
.ship opportunities in new construction so long as rental
demand is not met effectively in other ways. Bond financ-
• ing is necessary to produce modest cost units to realize
market rate de�ielopment that tvill include Section $
assisted units. Because of the overall ]imitations on
the City's bonding capacity for housing and because of
the lack of Section 8 assistance available to the City, a
major portion of this objective will have to be achieved
through f4innesota Housing Finance Agency financing.
3. 3 ��1ULTI�UN T Condominiums prov d� need� alterna�ive ownershlp possi�-
REHABILITATION FOR b�lities for the City's grocring population of smaller
OWP�ERSNIP households. It is the City's objective to provide such
alternatives through new construction, preserving existing
rental housing for rental use where possible. Nowever,
where deterioration is extensive and where buildings have
been vacated, rehabilitation for rental use sometimes is
not economically feasible. Assistance will be provided
with bond financing to achieve needed rehabilitatfon and
effective use of structures which cannot be restored to
provide sound and desirable rental units. Such financing
will also be used where opportunities exist to create new
residential opportunities through conversion/rehabilitation
of non-residential structures.
� -
-7- .
�
3.4 NEW h1ULTI-UNIT As indicated in the Nousing Po icy Plan, a variety of
Ot�NERSHIP OPPORTUNITIES attached ownership opportunities (townhouses, condo-
miniums) are needed to provide alternatives to single-
family homes for smaller households in the City's neigh-
borhoods. Various forms of attached housing and multt-
unit structures ar� needed to provide more energy
efficient use of available land in the City.
3. 5 REHABILITATION OF Financing wi e provided for rehabi itation of sing e-
SINGLE-FAt4ILY HOMES family and owner occupied properties both to remedy
� serious deterioration and 'to improve energy efficiency.
St. Paul 's Below Market Home Rehabilitation Program �ras
designed in part to take advantage of the opportunity for
achieving rehabilitation of deteriorated properties
through households in the market for ownership units.
Financing for major rehabilitation as part of, or in
connection with, a mortgage for home purchase has
traditionally been difficult to obtain. Yet it has been
� obvious that this could be one of the most effective ways
of ineeting rehabilitation needs. The City's Bond Financed
� Rehabi 1 i tati on Program ►�as� i ni ti ated i n December of 1979_
It is being monitored closely and ►rill be expanded with
additional bond financing if denand levels warrant and if
it proves to be an effective way to increase ownership �
opportunities and achieve needed rehabilitation. A
des�ription of the Below Market Home Rehabi]itation Program
is included in the appendix.
3. 5 SINGLE-FAMILY & One of the most important opportunities ti��hich the bond
COOPERATIVE MORTGAGE financing tool provides is the opportunity to make financ-
LOANS ing available for the purchase of sing]e-family homes in
the City. Mortgage lending for the purchase of single-
family homes and the developm�nt of cooperative owner-
ship opportunities will broaden the income-range of house-
holds for which ownership is possible. A d2scription of
the City's initial Below Market Interest Rate o��vnership
program of 1979 is included in the appendix. It is the
City's intention to issue additional bonds to expand this
program. In ac�ordance with 462C.03 Subdivision 7, and
any amendment thereto, loan proceeds ti•�ill be prioritized
to households with less than 90% of the program income
]imits for the first six months. . - -
� 3. I ACQUISTION OF Low an moderate �ncome large households requiring units
SIfJGLE-FAMILY HOi�1ES with three or more bedrooms represent the most difficult
FOR LARGE FAMILIES housing need to meet in St, Paul at the present time.
-8-
•
(Housing St. �Paul_ t980-1990, draft). 4Jhile some units
must be provided in new construction to meet current .
needs, it is desirable to make use of the existing stock
of single-family homes as much as possible. Acquisition
of single-family homes by a non-profit entity for rental
to large families with incomes below 110 percent of the
metropolitan median family income is planned. This
program wiil complement the Public Housing Agency's
current program of acquisition of single-family homes for '
rental to very low income large families. An objective
of the new program will be to provide a vehicle whereby
some moderate income households can, over a period of time,
achieve ownership status. •
Additional legislation may be required to provide for
acquisition of single-family homes for rental use.
. � . .
• .
-9- - � .
4.0 NOUSING POLICIES 70 6E Iti�LEt��c��TED
i � .
The housing bond finance programs outlined above•wi11
directly implement some of the..objectives and policies
of the Housing Policy Plan. (Housing St. Paul 1980-
1990, draft). Other policies wiit �e �mp�emen ed in-
directly or to a lesser extent, depending upon the
specific guidelines of each program.
4. 1 POLICIES TO BE Po icies which w�ll be directly implemented by the bond
DIRECTLY IMPLEMENTED finance programs include the following:
. . HOUSING SUPPLY
OBJECTIVE 1
CONSTRUCT AT LEAS7 10,000 P�E4� HOUSING UNITS IN ST. PAUL
BY 1990.
� A.EXPAND BOTH OWNERSHIP AND RENTAL OPPORTUNITIES
• B.INCREASE THE VARIETY OF HOUSING OPPORTUNITIES WITHIN �
NEIGNBORHOODS.
� C. INCREASE RENTAL AND OWNERSHIP OPPOR7UNITIES FOR LOWER
� INCOME HOUSEHOLDS.
POLICY S1
IN RESIDENTIAL CONSTRUCTION THE Pt�OVISION OF ALTERNATIVES
TO SINGLE FAh1ILY DETACHED HOMES WILL BE Et4PHASIZED.
POLICY S2
CONSTRUCTION OF SMALLER 1 & 2 & 3 BEDROQM 04JyERSNIP
HOUSING UNITS WILL BE ENCOURAGED BY 7NE CITY.
POLICY S3
� WITHIN MODEST COST AND LOWER-INCOME CONSTRUCTION, THE
CITY IJILL ENCOURAGE THE DEVELOPt•tENT OF FAMILY RENTAL
. UNITS INCLUDIN6 THREE-BEDROOM AND LARGER UNITS
SUFFICIENT TO MEET THE NEED FOR LARGE FAMILY NOUSENOLDS.
• 4.1 .2 AFFORDABLE HOUSING
OBJECTIVE 2
EXPAND HOUSING OPPORTUNITIES IN CITY NEIGHBORNOODS FOR
HOUSEHOLDS OF ALL INCOME LEVELS.
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• �
A.RETAIN MODEST COST 041NERSHIP OPPORTUNITIES IN TNE
EXISTING SUPPLY AND PROVIDE 7HA7 A hIAJOR PORTION OF NEW
OWNERSHIP UNITS WILL BE AFFORDABLE TO MODERATE INCOME
NOUSEHOLDS.
B.PRESERVE EXISTI�G RENTAL HOUSING AND EXPAND RENTAL AS
WElL AS OWNERSHIP OPPORTUNITIES IN NEW CONSTRUCTION.
� C.ENSURE THAT A MAJOR PORTION OF RENTAL UP�ITS CONSTRUCTED
ARE AFFORDABLE TO MODERATE INCOME HOUSEHOLDS. (NOT
INCLUDIN6 UNITS ASSIGNED FOR LOWER INCOME tiOUSEHOLD5.)
D.SUPPORT CONTINUED EXPANSION OF DIVERSE HOUSING �
OPPOR7UNITIES FOR MIDDLE AND HIGHER INC0�4E HOUSEHOLDS;
PARTICULARLY IN THOSE NEIGHBORHOODS 4JHERE DISPLACEMENT
IS NOT A PROBLEM.
POLICY A1
DE7ERIORATEO RENTAL NOUSING IN 7HE CITY SNOULD BE REHAB—
== ILITATED WITH 7HE USE OF SUBSIDIES APJD REGULATIONS AS �
NECESSARY 70 ENSURE THAT RENT INCREASES AidD DISPLACEh1E�IT
, - ARE MINIMIZED. (SEE AODIT�IOP�AL POLICIES UNDER RENABILI—
TATION.) •
POLICY A3 �
THE CITY SHOULD SUPPORT DEVELOPi�IENT OF RENTAL NOUSING IN
APPROPRIATE LOCATIONS. A BAIANCE SHOULD B� REALIZED IN
NEW DEVEIOPP�ENT BETW�EN CREATION OF NEtJ pWNE,RSNIF
' UPPORTUNITIES Ar�D CONTiNUED R�NTAL DEVELOPMENT AT LEA�T
� SUFFfCIENT TO REPLACE LOST UNITS AND 70 MAKE EFFECTIVE
USE OF AVAILABLE SUBSIDY RESOURCES.
.
POLICY A5 . �
PARTICULARLY IN THOSE AREAS tJHERE DISPLACEh1ENT IS IDENTI—
FIED AS A PROBLEM, SUBSIOY RESOURCES, SUCH AS SECTION 8, �
SHOULD BE USED IN CONJUNCTION WITH REHABILITATION TO
PREVENT DISPLACEt4ENT IJHERE POSSIBLE, AND TO MITIGATE TNE
ADVERSE EFFECTS OF DISPLACEMENT WHICH DOES OCCtJR.
POLICY A6 • �
POTENTIAL DISPLACEMENT TMPACI', THE POSSIBILI7IES FOR
MITIGATING DISPLACEMENT, AND AVAILABLE ALTERNATIVE
• HOUSING ARE IMPORTANT CONSIDERATIONS FOR TNE CITY IN
� PRIVATE REDEVEIOPMENT -0R CONVERSION ACTIVITY �dHERE ANY
fORM OF PUBLIC ASSISTANCE FOR DEVELO�MENT IS REQUESTED.
� -11— .
•
POLICY A8
TNE CI7Y WILL CONTINUE 70 PROVIDE RELOCt�,iION ASSISTANCE
IN THE CASE OF ANY DISP�ACEt�ENT CAUSED BY PUBLIC ACTION,
UNDER 7HE PROVISIONS OF ?NE UNIFORM RELOCATION ACT. �
POLICY A9
THE CITY MUST SEE THAT 7HE PACE OF REDEVELOPtdENT, CON—
VERSION AND IMPROVEMENT ACTIVITY IS GOVER�ED IN PART
BY THE DEMONSTRATED AVAILASILITY �F SA7ISFACTORY AL—
TERNATIVE HOUSING WHEREVER DISPLACEt�tENT IS A FACTOR.
POLICY All
THE CITY WILL CONTINUE TO PAR7ICIPATE IN HOUSING DEVELOP—
MENT PROJECTS THROUGM QOND FINANCING AND OTHER COS7 RE—
QUCING t4EANS TO ENSURE THAT A VARIETY OF NEW OWNERSHIP
CPPORTUNITIES CAN BE MARKETED AT A COST t40RE IN LINE IJITH
T(�E MEANS OF h10DERATE INCOME OF HOUSEHQLDS IN ST. PAUL.
� POLICY Al2
THE CITY SHOULD ENSURE TNAT THE ��1INNESOTA HOUSING
FINANCE AGENCY HOME 0'ANERSHIP PROGRA�4 RESOURCES, AND ANY
OTHER AVAILABLE PUBLIC MEANS FOR PROVIOING BROA�ER
ACCESS TO NOME 0'r1NERSHIP ARE FULLY AND EFFECTIVELY USED
IN THE CITY.
POLICY A18 . ,
THE CITY SUPPORTS TNE FORMATION OF COOPERATIVES TO
ENSURE CONTINUED HOME OWNERSHIP OPPORTUNITIES FOR LOW
AND MODERATE INCOME HOUSEHOLOS AND TO LESSEN THEIR
POTEP�TIAL FOR DISPLACEMENT FROM MULTI—UNIT APARTt�tENTS.
a. ENCOURAGE COOPERATIVE DEVELOPhtENT WITH AVAILABLE
F�DERAL ASSISTANCE.
4. 1.3 HOUSING ASSISTANCE
POLICY C3 _
AS LONG AS DEMAND IS INDICATED, GIVE PRIORITY TO NEW
AND REH4BILI�I�hiED ASSISTED HOUSING IJHICH IPaCLUDES SOME
• THREE BEDROOM AND LARGER UNITS.
�
—�2— .
� POLICY C4
CONTINUE TO SUPPORT TNE DEVELOP��ENT OF ASSISTED HOUSING
FOR ELDERLY HOUSEHOLDS OPILY IN 7HOSE P�EIGNBORHOOflS
WNERE THE EXISTING SUPPLY IS LOW AND ��lNERE THE DEMAND
IS APPARENT.
� �
POLICY C10 �
, BOTH SUBSTANTIAL AND MODERATE REHABILITATION WILL BE USED
AS A MEANS OF �4AINTAINING LOWER INCOME HOUSING UNITS IN
AREAS UNDERGOING RENABILITATIOiJ AND AS AN ATD 70 NEIGNBOR-
HOOD REVITAIIZATION. �
POLICY C11
PROVIDE ASSISTANCE THROUGH SUBSTANTIAL AND MODERATE
REHABILITATION TO THE EXTE��T THAT OPPORTUNITIES CAN BE
DEVELOPED.
POLICY C12
USE SECTION 8 RESOURCES WHERE APPROPRIATE TO h1AINTAIN
�" HOUSING OPPORTUNITIES FOR LO'v1cR INCOt�IE HOUSEHOLDS IN
� AREAS WHERE DISPLACEMENT IS OCCURRING.
4.1.4 NEIGHBORNOOD QUALITY
� POLICY Q9
THE CITY WILL CONTINUE TO CHANP�EI REHABILITATION LOANS
A��D GRANTS TO LOWER AND MODERATE INCOME NOh1E0l�NERS
THROUGHOUT THE CITY. �
POLICY Q11
WHERE PUBLIC ASSISTAP�CE IS PROVIDED FOR h1ULTI-UiJIT
REHABILITATION, CARE MUST BE 7AKEN TO ENSURE THAT THE
REHABILITA?ION WILL NOT RESULT IN EXCESSIVE RENTAL RATES
AND THAT THE HOUSEHOLOS IN NEED OF P10DEST-COST RENTAL
UNITS ARE THE ULTIMATE BENEFICIARIES.
POLICY Q12 '
WNERE PUBLIC ASSISTANCE IS PROVIDED FOR REHABILITATION
OF RENTAL UNITS, SUBSIDIES SHOULD BE USED WHERE NECESSARY
AND WHERE AVAILABLE TO AVOID DISPLACE�4ENT. WNERE
HOUSING ASSISTANCE CANNOT BE MAbE AVAILABLE, RENT REGU-
� LAT4RY AGREEMENTS SHOULD BE USED TO AVOID DISPLACEt•1ENT.
-13-
��4� ��
.
POLICY Q16
THE CITY WILL GIVE PRIURITY TO REHAB EFFORTS THAT RESULT
IN GREATER HOUSEHOLD ENERGY EFFICIENCY AND CONSERVATION.
A. IN PUBIICLY ASSISTED REHABILITATION EFFORTS, IMPROVING
THE ENER6Y EFFICIENCY OF HOt4ES WILL BE SECOND IN
PRIORITY ONLY TO MEETING HEALTH AND SAFETY REQUIREMENTS.
4. 2 POLICIES IJHICH tJILL SE Policies which wil be implerrented to a lesser extent,
INDIRECTLY IMPLEMENTED depending upon program guidelines, include the
following:
4.2.1 HOUSING SUPPLY
POLICY S7 � �
THE CITY ��JILL AC7IVELY ENCOURAGE PJEW NOUSING DEVELOPMENT
" 7HAT PR0;107ES ENERGY CONSERVATION A�aD USE OF RENEI•JABLE
• ENERGY RESOURCES.
� A.MAXIMUh1 FEASI3LE ENERGY EFFICIENCY t•JILL BE A PRIMARY
CRITERION IN CITY REVIEWS OF AI�IY RESIDENTIAL BUILDING
PROPOSAL FOR WHICH ANY FORM OF CITY �SSISTANCE IS
REQl1ESTED. .
B.TNOSE NEtJ HOUSING DEVELOPMENTS TtiAT DEt�ONSTRATE
INNOVATIVE ADVAVCES I�� ENERGY COtr'SERVATION F►ND USE OF
RENEWABLE ENERGY RESOURCES WILL RECEIVE PRIORITY SUPPORT
FROM THE CITY.
4.2.2 AFFORDABLE HOUSING
POLICY A2
DEMOLITION OF OCCUPIED RENTAL UNITS MUST BE LI�4ITED AND
TEMPERED BY THE AVAILABIIITY OF ALTERNATIVE HOUSING FOR
THOSE OCCUPAN7S.
POLICY A13 �
THE CITY WILL CONTINUE TO ENCOURAGE THE FINANCIAL IN-
• DUSTRY TO �4EET AS P4UCH OF THE LENQING NEEDS OF THE CITY
RESIDENTS AS POSSIBLE AND WILL USE PUBLIC RESOURCES TO
`` ADDRESS NEEDS 41HICH CANNOT BE MET BY THE PRIVATE SECTQR.
-14- . .
� �'; � ,�►� '
�+ d �`.:�+�r
•
4.2.3 HOUSING ASSISTANCE
OBJECTIVE 3
ENSURE TNAT ADDITIONAL HOUSING ASSISTANCE IS MADE AVAIL-
ABLE TO MEET THE NEEDS OF IOWER INCOME HOUSEHOLDS IN
ST. PAUL.
POLICY C13
A MIX OF MARKET RATE ANQ ASSISI'ED UNITS IN FAMILY DEVELOP-
MEN7 IS ENCOURAGED. PROPOSALS FOR FAMILY DEVELOPMEHT
WITH A 20X ASSIS7ED/80� MARKET-RATE i-1IX tJILL CONTINUE TO
. B� CONSIDERED HIGH PRIORITY, HOWEVER.
POLICY C14
IN ORDER TO PROVIDE ENOUGN UNITS OF HOUSING, FAMILY
ASSISTANCE MAY BE PROVIDED IN ALl-ASSISTEO PJELJ
-�_ . CONSTRUCTION.
� POLICY C15 �
IN ALL-ASSISTED NE��! CONSTRUCTION OF FAt1ILY HOUSING, ShtALL
DEVELO?MENTS IN SCALE WITH THEIR NEIG460RHOOD SURROUNDIPlGS
ARE ENCOURAGEO.
4.2.4 NEIGHBORHOOD QUALITY
OBJECTIVE 4
ACNIEVE A CONSERVATION STATUS FOR 80� OF ST. PAUL'S
RESIDENTIAL BLOCKS BY 1990.
A.REAL�ZE SUBSTANTIAL IMPROVEMENT OF 1000 RESioENTiAL
BLOCKS THROUGH PUBLIC ACTIUN AND PRIVATE REIf�VESTh1ENT.
B.MAIN7AIN AND CONSERVE 1680 RESIDENTIAL BLOCKS.
C.ACNIEVE ENOUGH REHABILITATION TO REDUCE SUBSTANDARD
UNItS TO NO MORE THAN 15% OF TOTAL NOUSING SUPPLY.
OBJECTIVE 5
� ACNIEVE WEATHERIZATION OF AT LEAST 85� OF 5T. PAUL RES-
IDENTIAL STRUCTURES OVER THE NEXT 10 YEARS AP�D SUBSTAN-
TIAL ACNIEVEMENT IN TNE APPLICATION OF NEW TECNNOLOGY
TO REDUCE USE OF NON-RENEt�JABLE FU�ELS IN ST. PAUL HOMES.
� -]5-
� .
4.2.5 HOUSING OPPORTUNITY
POLICY 05 � -
SUPPORT PROVISION OF BARRIER FREE HOUSING AS A PORTION
OF ALL NEW NOUSING DEVELOPED IN ST. PAUL.
POLICY 06
CONTINUE TO ENSURE THE AVAILABiLITY OF REHABILITATION
RESOURCES FOR BARRIER-FREE. t�ODIFICATION OF EXISTIN�
DWELLING UNITS.
• .
, ;
; _ .
•
�.
-16- .�
. 5.O BOND FINANCED NOUSItr'G PROGR{U•1 POIICIES
, �s'����
� �
5. INCOME OF HOUSE- It �s the City s po icy to improve housing opportunities
HOLDS TO BE SERVED for persons of all income levels. �9unicipal Bond financ-
ing can be used to increase affordability of housing
acquisition and rental for low and moderate income house-
. holds and stimulate muci� needed reinvestment otherwise
infeasible,in redevelopment areas_
5. . INCOME LIMITS
Programs Income Limits Exceptions
Rehabilitation and At least 20b of ten- WitFiout regard to in-
new construction of � ants eligible for come limits if projects
multi-family rental Sectian 8 assistance occupied primarily by
housing etderly persons; or
Up to 25� of ten-
ants without regard Projects occupied pri-
to income marily by han�dicapped
� persons; or
• At least 55-80� ten- _ . .
ants of low and mod- � A deveTopment located
erate. income as de- within a redevelopment
fined by MHFA as area established pur-
either: suant to Chapter 472A;
or
A.110� of the HUD
median incorre A development located
($23,000) � within an industrial
. development district
. B.The h1HFA income established pursuant to
iimit for multi- 458.191; or
unit developr�ents •
($28,050) A redevelopment project
established pursuant to
. .. .. . . . . .. . . - -- Section 462.521__ -_- --_.___.
Rehabilitation and Not to exceed the �20� of all loans tvithout
new construction of greater of 110� of regard to income if lo-
single family owner- HUD median income cated within a Develop-
occupied structures � (�23,000) or 100� of inent District pursuant to
I�1HFA income limits Chapter 472A.03; or
� During the first A redevelopment project
six months of the established pursuant to
program, 50A of the Section 462.521 ; or
funds available to
households with in- An Industrial Develop-
comes below 90X of inent District pursuant
the Program Income to 458.191 ; or �
� ___�_
�����
•
Programs Income Limits . . Exceptions
Up to 20� of pur- !)here necessary to further
chases without re- Qolicies of economic
gard to income integration � ,
5.1.2 MEETING THE NEEOS OF LObJ AND h10DERATE INCOME
HOUSENOLDS
St. Paul 's bond financing capability will be used for
the typzs of housing programs identified in 3.0. These
program objectives are based on the housing needs of
St. Paul 's population ��hich are not being met by the
private market.
: These programs will meet the needs of low and moderate
income households by increasing the supply of rental
• housing through new construction and rehabilitation, •
broadening the income range of households for tivhich owner-
ship is possible by providing single-family and coopera-
tive mortgage financing, providing financing for rehab
of singl�-family homes, and providing rental housing for
large families through the acquistion of single-family
homes.
Section 5.0 identifies city policies tivhich will be used
to guide the establishment of the programs listed in 3.0.
• These policies, especially the ones concerning displacement,
condominium conversions , income limits, rent regulatory
agreements, and discrimination against children are de-
signed to ensure that, where possible, housing acquired,
constructed, or rehabilitated for low and moderate in-
come residents continues to serve that income group.
5. 2 PURCHASE PRICE LI��ITS
Purchase Price •
Program Limits Exceptions
� Re�abilitation and Not to exceed.three Not to exceed four times
new construction of times the income the income limits estab-
single-family owner limits establ �shed lished in the same pro-
occupied structures for same program gram, for loans qualify-
($69,300 using � ing without income limits
110� median) .
�
5.3 SITE LOCATIONS Activities to be financed by bond funds will not be
targeted to limited areas geographically within the city
excep# in the following respects:
1.New canstruction and rehabilitation to include housing
assistance, for lower in�ome househalds will be guided
by th� locational priorities of the H�tt�; 'r, Assistance
� � p�an. -�-
2.Funds will be targeted to redevelopment areas to achieve
otherwise infeasible development and to achieve economic
integration.
�5.4 DISPLACEh1ENT Projects which will result in significant displacement of
tenants will not be funded unless adequate plans and
resources exist for meeting relocation needs.
In selecting proposals for funding in neighborhoods where
public or private development has resulted in displace-
- ment, priority will be given to projects which will meet
. the housing needs of those �v�ho have be�n displaced so
• that housing alternatives: �will be available in their
neighborhoods.
5. 5�ENT REGULATORY In projects involving rehabilitation or development of
AGREEt^ENT rental housing, a rent regulatory agreement will be en-
tered into to prevent unreasonable rent increases. The
agreement will be jointly reached by the City, lender,
and owner, and wil] provide sufficient rental income to
meet debt service, operating expenses, and a reasonabTe
return on equity, The agreements will be in effect far
a minimum of five years.
5.6 CONDOt�INIUM CONVERSIONS Because of the need to preserve rental units, priority
will be given to rehabilitation for rental use t�Frere
� multi-unit buildings require improvement, whether oc-
cupied or vacant. Where rehabilitation for condominium
use is financed, priority will be given to providing
modest cost units. Conversion of suitable non-residential
property to condominium use is encouraged. Conversion
of City-financed newly constructed or rehabilitated
rental housing to condominiums will be prohibited for a
� minimum of five years. This prohibition will be secured
• . by a covenant running with the 1and.
5. 7 DISCRIt�INATION AGAINST In newly constructed or rehabilitated rental housing
CHILpR�N IN R�NTAL HpUSING assisted under bond financed programs, property owners
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•
may not discriminate against families with children
in units suitable for occupancy by families with
children. 7his restriction will not apply to structures
occupied primarily by elderly or handicapped households_
5. 8 H�ALTH, SAFETY AND Rehabilitated structures of three or more dwelling units
ENERGY REQUIREMENTS must meet the City's Housing Code and must complete all
health, safety, and energy improvements before other
general improvements can be made. Rehabilitated structure�
of one and two units must meet the City's Minimum Nousing
Standards. Structures involving new construction must
meet the City's Building Code. All structures must meet
applicable state housing, building and energy codes.
5. 9 QUALITY OF PROJECTS One cri�erion in the selection of proposals will be
the quality of the project in terms of design, materials,
and the compatability with surrounding development.
Projects which it is determined tirill have an adverse
- impact on the neighborhood environment wi11 not be funded.
�
� : .
. .
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. 6.0 FI�JANCIt�G h1ETHODS
���.�?
� . .
6. 1 h1u�Ti-FAMILY HOUSING 6.1.1 NEW CONSTRUCTION AND REHABILITATION OF MULTI-
DEVELOPMENT. FAMILY RENTAL PROPERTY
Financing fo r the new construction or rehabiTitation of
structures with four or more rental units is provided
through the issuance and sale of St. Paul Nousing and
Redevelopment Authority's Housing Revenue h'otes. These
Notes are considered "Industrial Development Bonds"
� under the Internal Revenue Code Section 103(b) and thus
are not prohibited by the pending federal legislation
affecting housing "mortgage subsidy bonds." Local
lending institutions accept applications and apply their
normal underwriting standards in determining approval .
All loans under $1 million may be subject to the require-
ments of the Internal Revenue Code Section 103(b) that
no more than 10� of the net proceeds of the note may
be used to pay pro3ect costs which are treated as "working
capital ," e.g. , refinancing of existing indebtedness on
the property. In the case of loans over $l ,million but
less than �10 million, those as well as other limitations
apply. In existing buildings the lesser of �5,000 per
-- unit or 50% of the as-is value of the property must be
• • put into rehabilitation as long as applicable la�r requires.
L:-
Since the Minnesota Nousing Finance Agency (MNFA) is
allocating the entire set-aside for Section 8 new con-
struction units, a. primary vehicle for providing rental
. opportunities to low and moderate income persons, St. Paul
will be referring a large percentage of its proposals to
MHFA for mortgage financing. St. Paul will be utilizing
� its financing mechanism in projects whi�h are either too
small in number of units for fihe t�HFA proc�ss Qr in
projects for which Section 8 subsidies are not needed and/or
desirable for the site.
Since tax-exempt notes are sold to local lending institu-
tions on a project-by-project basis, it is difficult to
predict the exact number of participants. Lenders may selt
"participations to other lending institutions" or other-
wise arrange secondary purchasers for this kind of
financing.
The new construction and rehabilitation of multi-family
structures for cooperative use is encouraged.
• 6.1 .2 LARGER•RENTAL PROJECTS
Larger projects which require separate financing programs
� will be carried out by the City, the Port Authority or the
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Housing and Redevelopment Authority.
. .�3 NEW COySTRUCTI N AND REHABILITA7ION OF t4ULTI-
FAMIIY OWNER-OCCUPIED PROPERTY
Assuming favarable resolution of pending federal leg-
islation with regard to mortgage subsidy bonds, St. Paul
anticipates a public issuance of tax-exempt revenue
bonds for the purpose of providing below-market financing
for the purchase, and purchase and rehabilitation of
owner-occupied units in multiple dwelling buildings.
These units will be in the� form of condominiums or
cooperatives, townhomes and other commonwall housing
developments. New construction will occur in the down- �
town area as well as on scattered sites in neighborhoods.
Purchase and rehabilitation will occur primarily in vacant
multi-family rental buildings and in non-residential
buildings convertable to residential use, and secondarily,
in currently occupied multi-family rental buildings.
� ._ Similar developments involving the private placement of
tax-exempt bonds with lenders is also contemplated.
• - All private lending instit��ions with offices located in -
St. Paul or tvith a record of on�oing originations in St.
Paul , and whi ch are FHA/UA, F��1�1/FNLt•1C or othenri se ci ty
approved will be eligible to participate in the program.
With a public sale we anticipate participation from
. approximately twenty to twenty-five lenders. This is
based on our experience from St. Paul 's 1979 Below t9arket
Int�rest Rate home Mortgage Progr�m and the Below htarket
Home Rehabilitation Loan Program.
6.2 NEW CONSTRUCTION AND 6.2.1 ACQUISITION OF SINGLE-FA�IILY PROPERTY FOR LARGE
RFI!ABILITATION OF SINGLE- FAMILY RENTAL �
F-Fi�dILY PROPERTY Again, assuming that the ability to sell tax-exempt bonds
is restored, St. Paul may publicly issue and/or privately
place tax-exempt bonds for the purposes of providing
mortgages to purchase single-family dwellings for large
families' purposes. It is anticipated that these d��ellings
will be located or constructed citywide and will be
targeted primarily toward low-income large families in
' need of the kind of living and open space available in a
single-family environment. The existing Section 8 Certifi-
cate Program, as well as other possible, but still un- �
� defined, fornns of subsidies, will be provided as much as
possible. New construction and acquisition of buildings,
with two, three, and four rental units, is also being
considered.
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•
Since this type.of housing development may be on a smaller
� scale than that which could be involved in a single-family
. owner-occupied program, there is a potential for less
participation in a public sale among eligible lenders.
Private placements involving previously described qualified
l�nders is� contemplated. '
Additional legislation may be required to provide for
acquisition of single-family homes fo r rental use.
.2.2 NEW CONSTRUCTION AND ACQUISITION AND REHABILITATIOP�
OF SINGLE-FAMILY OWNER OCCUPIED PROPERTY
As previously indicated, St. Paul undertook ta�o bond issues
in 1979, one, the Below Market Interest Rate Nome �4ortgage
Program involving financing for the new construction,
acquisition, and acquisition and s�bstantial rehabilitation
af owner-occupied, one-to four-unit dwellings; the other,
the 6elow Market Home Rehabili�ation Program involving
the acquisition and substantial rehabilitation of owner-
�- occupied, one-to four-unit structures.
• Providing that favorable �.�:resolution of the federal
legislation is achieved, St. Paul expects to structure
one or more public issues and/or a number of private
placements of tax-exempt bonds for some or all of the
purposes upon which th� t�•�o 1979 programs ►•�ere based. It
. is anticipated that a high percentage of the homes to be
financed under this kind of a program will be single-family
homes. Additional legislation may be required to meet
this objective.
All private lending institutions with offices located in
St. Paul or with a record of ongoing originations in St.
Paul , and whi ch are FHA/VA, FP���IA/FNL��IC or othen,ri se ci ty
approved will be eligible to participate in the program.
Financing for these purposes will involve from twenty to
twenty-five originating lenders. Private placements in-
volving previously described qualified lenders is also
- . -- __ _. _ contempl ated. _. . . . __ .—... _.. _._ . �.- -----
6. 3 PORT AUTHORITY AND The St. Paul Port Authority and the Nousing and Redevelop-
Tt�E NOUSING AND REDEVELOP- ment Authority may issue revenue bonds to finance multi-
t,�t�T AUTHORITY unit housing developments, provided they are author�zed to
do so by resolution of the City Council and meet previously
• described requirements and limitations applicable to City
issued revenue bonds.
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7.0 AD1•�I1�ISTRATION
.
7. 1 DEPARTMENT OF St. Paul 's Department of Planning & Economic Developnent
PLAP�NTNG & ECONOMIC (PED) carries out a comprehensive, integrated, and
OEVELOPMENT coordinated approach to planning and development function�
The department is composed of four divisions--Community
Development, Renewal , Planning and Economic Development.
The Renewal Division assists residents, neighborhoods, �
the downtown area, private businesses , and public agencies
in the development, redevelopment, financing and rehabili-
tation of land, housing and other property in St. Paul .
The Divisian manages over 100 ongoing development projects
and programs, and it also 'provides a variety of technical
and financial assistance to developers, neighborhood
groups, and individual citizens.
7. 2 AD��tINISTRATIVE With regard to Mu ti-Fami y Rental Housing, the lender and
PROCEDURES A�JD COSTS the City share responsibilities for processing privatel
placed tax-exempt notes. The lender exercises its normal
._ underw riting standards in reviewing the loan; the City's
role involves the performing of insp2ctions, assisting
• in the preparation of scopes and bids , assisting in under-
writing and determining Fair f�larket P.�nts and rent
controls, and assisting in surveying of exi.sting tenants.
The City will assist in identifying housing projects ti��hich
will provide low and moderate income persons and families
with affordable- housing oppartunities. L�nders ►vill be
encouraged to finance those prpjects� meeting the above
criteria. To the extent permitted by �rbitrage regulations
the Gity will .charge a 1� commitm�nt fee of the originat
principal loan amount and .lOro of the declining principal
• balance to cover its expenses. This policy applies to all
privately placed mortgages, whether rental or ownership,
multi- or single-family. Lenders may charge appropriate
fees with City approval to cover their expenses in
originating and servicing the loans. In private placements
of loans, lenders may include in the mortgage amount
their related costs. � The City will monitor the program's
consistency with stated goals and objectives througn reg-
ular staff ineetings and regular communication with
neighborhood groups. �
With regard to publicly issued bonds for single and multi-
family, both rental and ownership, the City recruits and
• works with qualified lending institutions to structure
_ the program and to detail procedures. The same monitoring
procedures have been instituted for previous City bond
programs.
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� � On a program�by�program basis t�e City wi11 estabTish
on either a negotiated or bid basis , amounts related
to the costs of issuance.
•2.1 IMPLE�AENTATION t4ETHODS
Two project managers from the Renewal Division will be
devoting at least 50� of their time toward implementation
of the Multi-Family Programs. Support staff will include
legal work from the City Attorney's Office, financial
advice f►rom the City's Financial Consultant, accounting
from the City's Finance Department, site review from the
. City's Technical Services staff, Zoning staff, Police
Department, Fire Department, construction package review
from the City's Building Codes Division and Rehabilitatior
staff, and legal assistance from the City's Program Bond
Counsel , Briggs and Morgan. These and other technical
�staff, both from within and without the City government,
will provide assistance as needed in implementing the
. , particular project or program.
• � The two project managers will be devoting 30% of their
time toward implementatiort 'of the Single-Farr�ily Program.
Support staff will include the City Attorney's Office,
Bond Counsel , Technical Services, Zoning, Police Departmen
Fire Department, Building Codes Division and Rehabilitatio�
Sectian.
In bo�h the Below Market Interest Rafie (BMIR) Nome Ptort-
�age Program and the Below Mark�t Name Rehabilitatic�n
BMHR) Laan Program, the City retained the ser '
Program Administrator to assist the City in admin�stering
and operating the program. Genera)ly, the Program
Administrator is responsible for the pre-committing and
purchasing qualified mortgages from participating lending
institutions, monitoring performance of �ending institution
to assure compliance with executed seller's and s ervicer's
agreements, and collecting and reporting program data.
Selection of a Program Administrator was conducted on a
public bid basis. It is anticipated that future programs
of the same kind would probably include a Program Adninis-
trator. The Program Administrator's functions and fees
are fu]ly described in pages 9-10 and 35-37 of the
. attached BMIR Official Statement and in pages 10-11 and
43-44 of the attached BMHR Official Statement.
, Additionally, in both programs, tfie City selected on a
public bid basis, bond underwriters to assist the City
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���.��� .
�
' in structuring the bond issue, preparing the Officiai
Statement and in marketing the bonds for sale to
. investors. 7he underwriter's function is described
further on the cover page and in pages 18-32 of the
attached BMIR Official Statenent and on the cover page
and in pages 22-41 of the BMHR Official Statement.
It is anticipated that future programs of the same kind
would include a bond underwriter.
• - .
•
. . 8.0 APPENDIX �
•
8.��-SULTI-FAMILY RENTAL This Program provides financing for the new construction,
HOUSING DEVELOPMENT rehabilitation, and acquisition and rehabilitation of
PROGRAM structures with four or more rental units.
The borrower must agree to a five-year rent-regulatory
agreement• and condominium conversion restrictia� to be
placed on the property in the form of a covenant, ar�
a ban on discrimination to families ►vith chitd��
units suitable for thei�• occupancy.
� Financing for the Multi-Family Rentat Housing D .
Program is accomplished through th�: issuance anu
St. Paul Housing and Redevelopment Authority tax- �
� housing revenue notes. These notes are considerec
"Industrial Development Bonds ," under Internal Revr
� Cod.e Section 1036, and thus not prohibited by the p�
federal legislation affecting housing "mortgage subs.
bonds." The interest on the loans made possible by t,
issuance of the notes are exempt from Federa) and Stat.
. taxation, except for sta�e corporation franchise taxes.
Local lending institutions .acc�pt the applicatiorrs , and
• underwrite the loans.
On December 12, 1979, the City's tlousing and Redevelopment
Authority approved� as to form th� Program's Master Note
Resolution and other documents it references, and authorize
staff to initiate projects and submit them to the HRA
for authorization to execute. This specific a�thorization
is in the form of a Suppl�m�ntal Resolu�ion. �'o1lQwing
. the Suppl�m�ntal Resolution, the no�e is �xe�u��d, and
legal o�inion rend�red by bond couns�l �s �� the tax-exempt
status of the note. On becember 23 the first two pro3ects
totaling,�501 ,000 and involving 4� un�ts were approved.
All loans under �1 ,000,000 are subject to the requirements
of the Internal Revenue Code, Section 103, that no more
than l00 of the net proceeds of the note may be used
to pay project costs ►vhi ch are treated as "ti•;orki ng capi tal ,
e.g. , refinancing of existing indebtedness on the property.
Acquisition costs incurred subsequent to the effective
date of the Supplemental Resolution are financeable under
the program. In the case of loans over �1 ,000,000, but
less than �10,000,000, those limitations apply, as well
as additional limitation, such as computing all prior tax-
exempt fi nanci ng for the same borrotiver i n the Ci ty, pl�►s
all capital expenditures within the City made by the
• borrower within the previous three years. The minimum loan
is �50,Q00, and, as long as applicable law requires, the
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•
lesser of $5,000 per dwelling unit on 50� of the as-is
� value of the property must be put in eligible improve-
ments. To avoid confiict with pending federal legisla-
tion, no more than 5� of any loan may be used for the
acquisition or rehabilitation of an "owner-occupied
residence."
8. 2 QELOW h1ARKET INTEREST In April, 1979, the City of Saint Paul pub]icly issued
ft�TE HOME MORTGAGE $50 miliion in tax-exempt revenue bonds providing $41 .9
1'ROGRAM million in mortgages at 8 1/4� and �rith terms up to
30 years to finance the acquisition, acquisition and
substantial rehabilitation, and new construction of
one to four unit owner-occupied structures. �
The program is administered by twenty-two local commercial
banks, savings and loan associations and mortgage bankers.
For existing single-family homes the maximum mortgage is
$50,000 with a maximum adjusted gross income of �22,000.
.. For newly constructed or substantially rehabiTitated
single-family homes the maxirrum mortgage is $60,000 with
• a maximum adjusted gross income of $27,500..
In designated redevelopment areas, there are mortgage limit
of �85,000 with no income li�nits. Nowever, an afford-
ability test, which basically prohibits those individuals
from purchasing homes which they could afford at market
interest rates, must be met in this situation as well as
with all other 1Qans. The 20% qf th� fun¢s (�8.3 million)
res�rved under �MZR f4r Re��v,�lapmen� Are�� l�vera�ed
$27.9 million in construction and r�ehabilitation, La�n�
may be originated on an FHA/VA, private or conventional
basis. There are no sales price limits in the program.
Exclusive of Redevelopment Areas with 98� of the funds
committed, the average sales price of homes purchased
under this program has been �48,626, mortgage amount
$42,822, gross income �19,693, adjusted gross income
$17,701 , age 29, new to the City 33� and former renters
78%.
The program is administered by the City through locat
lending institutions and a program administrator.
. . -
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•
8. 3 BELOW �dARKET NOME In December, 1979, the City of Saint Paul 's Nousing and
Rt}�AgILITATION lOAN Redevelopment Authority issued $41.9 million in tax-
PROGRAM exempt revenue bonds for home rehabilitation. The issue
provides $40.9 million in mortgage funds for the
acquisition and substantia�l rehabilitation or the acquisi-
' tion of substantially rehabilitated owner-occupied one
to four unit structures. 7he mortgage interest rate is
� 9 3/4 percent with terms up to 30 years. Refinancing of
. an existing mortgage or contract for deed is eligible when
tied to substantial rehabilitation. .
The program is administered by twelve commercial banks,
savings and loan associations and mortgage bankers.
Income limits for borrowers of properties involving
substantial rehabilitation are $24,000 adjusted gross
with mortgage limits at $72,000. Substantial rehabilitation
is defined as 25� of the appraised as-is value of a
structure for new purchasers and for �ot•�ner-occupants
wishing to refinance existing indebtedness, and 25°6 of
�- the appraised after-rehabilitation value of a structure
• for purchasers of substantially rehabilitated buildings.
Income ]imits are waived for loans �lhich involve rehab-
ilita�ion exceeding the lesser of $25,000 or 100� of the
appraised as-is value of the building. In those instances
� the maxi�um mortgage amount is raised to $96,000. In all
cases, borrowers must meet an affordability test similar
to that which was instituted under the BMIR Program. ,
�1i�ibl� impr�vements must in�lu�d� the Gorrec�i�n of all
health, safety, and energy conservation defic�encies.
Other general improvements are eligible when the above
items are completed.
All projects involving condominium ownership of buildings
must be pre-approved by the City of Saint Paul. For
projects involving buildings currently vacant, the City
will approve only if the owner has not indicated a previous
interest in rehabilitating the structure for rental
purposes. For projects involving buildings currently �
occupied by tenants, the City tvi11 approve only if the
sales price does not exceed �50,000 and only if the owner
has submitted a plan tvhich indicates the extent and
conditions under which tenants �rill be purchasing units,
• . and the benefits to be provided to tenants to be
displaced.
� The program is administered by the City through local
lending institutions and a program administrator. �
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CITY OF SAINT PAUL
462C NOUSING PLAN
ADDENDUM 27 FIARCH 1980 (PROPOSED)
•
Tt�e following additional information is added to clarify and further specify
policies established in the 462C Nousing Plan dated tqarch 6, 1980.
Income Levels and Number of loans � :
Y
As a part of St. Paul 's bond financing capability, it is projected that .
700-800 loans will be made for single-family purchase and rehabilitation,
►�ith an average mortgage of $65,000/unit. Goals for the distribution of loans
by income group are:
Under �16,801- $20,791- Over
$16,800 $20,790 $23,100 �23,100
15� 35� 30� 20�
t�iul ti-Family Projects Pianned . �
. See table attached. ,�:�,*
• .
�
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�,":�����'-�'
� Financial Impact on Affected Public Aqencies
Prior to the issuance of any bonds for the financing of residential development
or other housing programs, the city in consultation 1��ith its fiscal advisor,
will consider the potential financial impact on public agencies.
Other Available Financinq ,�
The city will not use bond proceeds to finance any development for �vhich
financing at a comparable interest rate is otherwise avaiiable. Any recources
available through HUD �r through thQ Minnesota Housing Finance Agency rrhich
can provide housing affordable to the target income groups and meet development
needs for specific sites in St. Paul wi11 be used in preference to local
bond proceeds.
Issuance of Bonds , -
P�nding federal Legislation prohibits the use of tax-exempt revenue bonds to
provide owner financing. The same Legislation places certain restrictions upon
the use of bond financing far muiti-family prajects. Assuming that this l.egis-
lation wil] be favorably resolved, the City of St. Paul ►�rould anticipate ttivo or
three bond issues for single-family housing over the next one to two years.
� S�veral factors will influenre the actual timing of bond issues including
i ) Progress in the commitment of proceeds from previou's��sales and; 2) Assistance
(in addition to the tax exemp�mortgage rate) needed to provic�e units actually
affordable to low and moderate income households (i.e. , t�1c;Cnight f•finneapolis/
St. Paul Housing Fund second tier subsidy).
It is the City's intentipn to consid�r multi-family housinQ pro�ects on a project- .
t�y-project basi5 under t�e program guidelines whi�h hav� be�n aPprov�d by the
City Council , Tt�e pro���s th�t t�e City o� St. Paul has e�tablished for the multi-
fE3mi�Y Pro9r,�m i� �o wA�� wi�}� a �iuil�jng p�vr�er or d��g1Q��r, assi���nc� i�
���go�i�tion� wjth 18C�� 1end�ng institut�onS iti placing a mortgage. �'echnically
sp�aking bonds are not "sold" but rather are "placed". Each project is a separate
placement. Additiona'lly, we anticipate coop�rating trith the St. Paul Port
�;uthority on some housing projects. Port Authority financing is on a "project"
rathcr than program basis. The arrangement that has been worked out ti�ith the
Port Authority is that they will only undertake housing projects at the requ�st
of the City. The City would then insure that th� project met the goa]s of our
hous i ng pl an and ti•�oul d take the l ead i n the pro ject revi ew ;vi th the 1�1i nnesota
;iousing Finance Agency. . -
•
EXHIBIT C ���'�'�
C+t.�, a
• CROSS-REFERENCE SHEET
Please indicate the page and paragraph or section of the plan which
Contains the following information:
(a) Inventory of existing housing. Sec. 2
(b) Projections as to future trends in population. Sec, 2
(c) Suitability of existing housing to present and
expected future poputation. Sec. 2
. (d) Availability of existing housing to meet �
needs of low and moderate income families in
the city. . Sec. 2
- (e) Implementation methods whereby applicant
intends to . meet its housing needs, other
than those to be financed through municipa!
housing bond sales. , �ce i� .
(f) Programs to be �financed through municipal -
» . housing bond sales. ��. 5 '
(g) Target areas. (See footnote #1)
(h) Methods of financing the implementation
methods. sec. 6 �
.(i) Monitoring implementation methods for consis-
tency with overall plan. N/A*
(j) Procedures for administration of bond issu-
ance and maintenance. N/A*
(k) Procedures for distribution and use of bond
� proceeds. N/A*
(I) Staffing requirements for impfementation
methods. N�p*
(m) Overall cost to applicant of administration. N/A*
(n) Housing policies to be implemented through
the plan. Sec. 1+ �
(o) Maximum purchase prices for eligible single
• family housing. (See footnote 2) �
(p) References to the particular housing pragram
which is the subject of this application,
• including:
(i) Financing program. Se� 3•3, 3•�+, 5•3 & 6.1.3
(ii) Projected number and qua(ifications of
program lenders. sec. 6:1, 6.2 & 6.3
(iii) Amount of mortgage loans to be made
under this program. (See footnote 3)
(iv) Amount of revenue bonds estimated to
finance this program. (See Footnote 4)
(v) Extent to which this program is expect- �
ed to meet the needs of low income
persons in the city. Sec.� 5.1
� (vi) Other references to this program. � ---
(1) Multi-fami],y certification, I�1FA Exhibit F, Item 10 (b).
(2) Multi-fami]�y cer�tification, Afl�`A Exhibit F, Item 10 (a) (i).
(3) General certi.fication� A'1HFA Exhibit D.
(�+) General certification, 1�iFA, Exhibit D.
� ..
•
. -2-
�
PROJECT DESCRIPTION
The 100 Summit redevelopment is located in the Miller Nospital
Complex between Summit Avenue and College Avenue , adjacent to
Interstate 94 and midtvay between the State Capitol comFlex ,
the Cathedral and downtown St. Paul .
The complex has direct actess ta the freeway system as ;�well
as to the M7C bus system. It is within easy walking distance
of both the downtown area and the State Capitol complex . It
is adjacent to a large available parking ramp and has adjacent
off-street parking .
United Hospitals , which operated Miller Hospital , moved its
hospital operations to its new facility in August, 1980 .
1 . 462C Program for end loan r�oa^tgaAes
The East wing of the hospital will be renavated
, • into 70 residential condominiums consisting of
�63 one bedroom units ranging in size from 560
sq . ft. to 910 sq. ft. , and 7 two bedroom condo-
miniums of 1 ,240 sq. ft.
Plans call for complete interior demolition with
� totally new mechanical , electrical and plumbing
� systems . The existing oil fueled hi �h pressure
steam boilers in the main power plant which
presently serve the complex will be dismantled.
The praject will be served by a system of separate
hot water boilers on each building . The energy
source will be interruptable gas with oil backup .
The modern air-conditioning chiller is in good
condition and will continue in use.
The existing all brick facade will be cleaned .
The open fire escapes ,rill be removed and new
enclosed stair towers will be built. i�indows
that are bricked in will be opened up and new
windows installed throughout. The exterior
brick and stone work will be cleaned. Orna-
mental iron balconies and awnings are being
studied .
�
. Existing lighting will be repTaced with fixtures
consistent with those of originally designed for
the building. Existin� trees will remain and be
protected. New plantings will be made throughout
the project and parking areas , in particu �r ,
will be heavily screened. Most walks will be
replaced 1Ylth new steps and plaza . A new entrance
will be constructed on the Summit Avenue side.
Construction financing for the renovation will be
obtained from conventional sources. 462C financing
is sought solely for end loan mortgages for purchasers
of the condominium units .
2. Future Oevelopment
Future development will consist of renovating
a proximal section of the hospital complex into
80 condominium units consisting of 25 one bedroom
units ranging in size from 745 sq. feet to 1 .250
sq. ft. and 55 two bedroom condominiums ranging
in size from 1 ,115 sq . ft. to 1330 sq . ft. These
additional condominiums will be located on 5 upper
levels of .__the building , with the lower two levels
constructed as a small shopping mall with service
; • . .oriented facilities . Four adjacent buildings will
�6e renovated as commercial and office space.
None of the proceeds of the bond offering will
be utilized in connection with any future develop-
ments. All bond proceeds will be devoted solely
� . to loan mortgages for residential housing as above
desc�ri�ie�t. :
.
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z�.
GENERAL CERTIFICATION
With reference to the general certification (MHFA
Exhibit D) , this section contains: :
(1) General certification (Exhibit D)
(2) Schedule 1 - Bond Proceeds Computation
(3) Mortgage Loan origination process (Schedule 2)
(4) Principal and interest schedule and cover
letter from Cronin & Marcotte, underwriter.
(5) Bond Counsel opinion form.
(6) Chapter 72, City Administrative Code" (designates
• HRA to exercise 462C powers. )
, _._... �
�
EXHIBIT D �
.
�� GENERAL. CERTIFICATION
Housing and Redevelopment Authority of the
1. Name of Applicant: city of st. Paul, Minnesota
2. If Applicant is a statutory or home rute charter city, provide a copy
of the statute or ordinance which authorizes Applicant to issue
revenue bonds to finance housing programs, and state the date af
. such statute or ordinance.
3. Housing Plan• �
. . .
(a) Date and Iocation of pubtic hearing: .
March. 6, 1980, at St. Paul City Hall
(b) Date:and place of publication of notice of public hearing: �
Januaiy 26, 19$0 - St. Paul Dispatch; Pioneer Press �
� (c) Date of adoption. of housing plan by Applicant's governing
body: (Please attach .a certified copy of adopting resolution.)
(. �--�
March 6, 1980 - City Council, St. Paul
(d) Date of submission of housing plan to applicable Regional Devel-
opment Commission or Metropolitan Council:
. _ March 10, 1980, and March 14, '1980
.
(e� If the comments of the Regiona( Development Commission or
' Metropolitan Council were unfavorable or contained suggestions
' for amending the plan, describe:
Approved by Metropolitan Council without unfavorable comment
. A ril 10, 1980.
�) amendments to the plan adopted by Appticant in response,
. (or)
(ii) reasons why such amendments were deemed unadvisable.
4. State-111ide Housing Policies:
(a) Identify which state-wide housing policies are intended to be
� furthered by this program:
M.H.F.A. I.ocal Ilousin� Bond Program procedural Guides, Section A
(3) , sub paragraphs (a) , (b) ,(d) ,(e) (f) ,(k) .(1) and (m)
. � ' • .
� ������
(b) Is the state building code applicable to housing corr�fir`uct�d'
within Applicant's jurisdiction? (If not, attach copy of all -
� building codes which are applicabie to housing to be construct-
ed or rehabilitated under this program. ) YES X NO
(c) Describe procedures you intend to imptement to ensure that the
housing to be constructed or rehabilitated under this program:
(i) complies with the state building code standards:
City Building Inspector will inspect improvements for compliance
with the State Buildin Code as applicable to rehabilitati,on,,
(ii) wi{I be available to a�l el�gible persons without impermissi-
ble discrimination:
Fursuant to governing City Ordinance, the Developer will agree
to se11 units without discrimination. �
(iii) will be constructed or rehabilitated only by contractors
who provide equal opportunity for employment without
� impermissible discrimination: Dev`eloper will agree that all
_ contractors engaged in rehabilitation will be required to comply
wi h t e n n-discri nati n �nd equal opportunity provisions of State
���� w��F��ra�eSU�� Ifl�t�le�u�i�pq�a��ment of tow-inome residents
without provision for adequate relocation assistance:
.- The build'ings do. noz now contain housing; therefore, relocation
is not ne�es�ary
(v) will be in ur�•ttierance of those state-wide� housing policies
` � .-=- specified in 4(a),
• � The Developer will be bound contractually to complete the proj ect
fn accordance with City approval.
5. Bond Issuance: - �
. .
� The following information should be provided to the greatest degree
. of accuracy possible at the tme of submission of this Application..
Minor variations between projected figures and those actually obtain-
ed at the time of issuance will not be deemed material.
(a) Aggregate principal amount of bonds Appticant is permitted to
issue under 461 .0 Minn. Stat. § 7, subd. 2:
$170,500,000
(b) Poputation of Applicant (as used to calculate figure stated in
5(a)):
291,000
(c) Source of population figure stated in 5(b):
1970 census �
. (d) Total principal amount of bonds issued pursuant to Chapter
� 461.0 Minn. Stat. by Applicant to date (excluding bonds to be
issued pursuant to the Program �vhich is the subject of this
Application): None ($6,060,000 approved for Austin King Project)
. _2_
� ' • • : r
' �i
(e) 7otai value of bond issuance: `
, $5�000�000
. .
(f) Interest rate: estimated 10,°� ' '
�
(g) Describe method by which the interest rate stated in 5(f) was
calculated: Recent compar-able m�,rket issues have been sold '
� at 10,°� • ;
• !
(h) Totat .estimated amount to be paid �in interest over the tife of . �
� bonds: $9,2z1,137.50 (�,) � �
_ . 1
. . ,
. . . . (i) Attach copy of bond maturity schedule hereto. � • � �
. Bond ina,turity schedule• and cover letter dated September 18� 1980� �
' � ', frora Cronin & i�ta,rcatte; Inc. - •
. (j) Direct costs .of issuance� (gross spread): (Provlde information .
. ' ' below in 5(j) and 5{k) wRich is applicabte to your Program. . �
' • • 7he eicact nature of �the fees and costs of bond 'essuance wi!!
. � depend upon the nature af the arrangements you make to place
: ' . : _• • and service your bonds.) , . • '
. .. . . , � . . , , • . , . � • .
. '.
• . (i) Management fee: 5ncluded in ne� to underwriter. •
. � � � (ii). Take down.(Satesman Commission): ir,cluded in net to •
� • -- underwriters. � . ' • :�-,
' � . (iii) Net to underwritews: . $125�pQO �
• • . • ' '
� '� s (iv) Special tax counsel fee: _p.: � •
. � � ' �
(v) Underwriter's counsel fee: Estimated �10,000 '
(vi) Btue sky counsel fee: -0- '
1
(vii) Appticant's financial advisor fiee: $240,00 �
(viii) Printing costs (of bonds, official statements, and under-
. writing documents): �;8,000.00
(ix) Computer services: $�+,�0.00
�• (x) Advertising: --0- .
-3- '
(xi) Clearance fee: _p_
� (xii) Travel and other expenses of underwriters and financiaf
advisor: -o- �
{xiii) Charges for Federal Reserve Bank funds: -0-
(xiv) Rating agency fees: -0- �
� � (xv) Signature company fee: -0-
• . (xvi) Other charges (please specify): (i)ffi�A �'ee - $5,000 . .
•(ii) Bond Counsel - $20,000 (iii} �Eveloper'.s Counsel - $i5,000
' . . Tota I: $187,2�+0 . .
(k) Cost of. maintaining bonds: . .: � . " - . .
,
(i) Bo�d trustees fee: $1,o00/year
� � (ii) Audits: -0- _ � ..-
(iii) Salary to existing city� personnet attributable to bond
� maintenance work (inctuding supervision� of outside con-
. tractors): .001 of outstanding.balance �
, � � ($5,000 in first year and declining ther�after - see
Schedule 2, Mortgage and Loan origination:process
(iv) Salary of additional city personnel added to maintain
- �� � bonds: � _
(v) Oth er costs: $48,750 (see Schedule 2 - Mortgage and I,oan
origination process).
Tota t: -
(I) Period of time over which total costs stated in 5(k) wil! be
incurred: Years
See Schedule 2 - Mortgage and I,flan origination process:
. (m) Amount of bond proceeds to be set aside for a reserve• $600,000.
• .
. . -4- '
. ,
6. Administrative Costs, of Proqram:
• Provide the information below which is appiicable to your Program.
The nature of the fees and costs of administration wili depend upon
the nature of the delivery system devised for your Program.
(a) Start-up costs:
t ..
. (i) Loan ori;�ination fee: 2� of principal amount o� mortgage
loans made. �
, (ii) �oan review fee: Included in (a) (i) above.
(iii)' Commitment fee: In�luded in (a) (i� .above. �
(iv) Salary af personnel of Applicant (excluding Program
Administrator) attributable to placing the loans: Included
.tinder Paragraph 5 (k) (iii). �.
, (v} Reimbursement to issuer for administrative costs of loan
placemen�: � .
Included under Paragraph 5(k) (iii).
• � (vi) Cost of housing plan preparation (if charged to bond
praceeds); -0-
� _ (vii) Other (�lease specify): Initial premiums '
Mortgage Pool Insurance, esto-$4,095
Special Hazard Insurance� est. - 1,050
Tota I:$89,1�+5.00
(b) On-going administrative costs:
(i) Servicing fee: 3�8ths of 1� af the declining principal balance'
of the mortgage loan.
(ii) Trustee and paying agent fee: Inciuded under Paragraph 5 (k) (v).
(iii) tnsurance premiums: Annuai pre�,iums
Mortgage pool 9�100th of 1� of principal
mortgage balance. 25�100ths of l� primcipal mortgage 'balance.
(iv) Salary of Applicant's personnel (other than Program
• Administrator) attributabte to on-going administrative .
Costs: �ncluded under Paragraph 5 (k) (iii).
_5_
.
(v) Other (please specify): -o-
• Total: $165,750
(c) Salary of Program Administrator: (If mor� than o►�� nr�:.;,•:.�;. �:;.
administered, amount attributabie to this Pr�g�a�n. ) -o-
(d) Period of time over which administrative cf,�ts w:!i be ��.r_�ar-r�:�;
� See Schedule 2 - mortgage and loan origination process.
7. Net amount of bond proceeds which will be a��aitab!? tcr. .���:•tga�:�:�
loans, construction, �or rehabilitation (ex�luc:':�� ,�:I !'er�:.`: $�+,200,��5.00
(See Schedule I attached) � �
8. Cost to Applicant of Program to be paid out u� gc��es�a.' r-.-:;nr ,��s� -o-
- VERIFICATION
� . — , � the un��tf�•:�c-��a,
F • hereby states that he/she is the o-� �.t�,� ,��.;�t:,•,�,,,,
is authorized to execute this document on behalf of t>;� At�ol���r{t ;.,3 �.:.����
of which authorization is attached hereto), and that t�he infnrm�,�i:�r, ,a:
fQrth�•in^this General Certification is true,� correcx, dr�d co::zplet+�.
� Subscribed and sworn to before me,
this _ day of , 1979.
Notary Public County, Minnesota
My Commssion Expires
• . � -
_6_ .
� i �`:.�,�1Cr
� S
CHEDULE I
to
Exhibit D - General Certification
SOND PROCEEDS COMPUTATION
Bond Sale Proceeds $5, 000,000
Less Reserve (6Q0, 000)
Sub-total $4,400, 000
Less
(i) issuance costs (item 5 (j) $187,240
(ii) 1 yr, maintenance costs �
(item � (k) 6, 000
(iii) 1 yr. admin. costs payable
from ba.:rid proceeds :.
� , (item 6 (a) (vii) 6,145
� • ___.
$ 199, 385
Total Bond Proceeds Available for P�ortgages $4,200, 615
�
•
SCHEDULE 2
MORTGAGE AND IAAN ORIGINATION PROCESS
The mortgage loans to be made pursuant to this financing
program will be secured by first lien mortgages against the condominiwn
units to be sold by the developer. The mortgage loans will be payable
in equal monthly installments of principal and interest over 25 years;
will require the mortgagor to escrow, on a monthl,y basis� the amounts
necessary to pay real estate taxes, ass�ssments, hazard insurance and
mortgage insurance premiums, and condominium association dues; �rill be
prepayable at any time, without penalty; and will be assumable. While
no specific income limit wi11 apply to the mortgagors, the HRA will require
that:
l. Applicant has been re3ected by other lending
institutions for reasons of affordability for
� a mortgage loan in the same principle amount
and for the same term; or
2. The monthly obligation with respect to each mort-
E • gage loan (principle, interest, taxes� insurance,
and condominium assoc3ation dues) equsl not less
than 25� of mortgage applicant gross month]y income,
or
3. If the program administrator certifies that funds
� for the purchase of the condominium units are
generally unavailable in the St. Paul area, the
percentage set forth in clause 2 above shall be
reduced to 20$.
The mortgage loans will be originated on a nondiscriminatory
basis (except as specifically required by this financing program) and will
be originated and serviced generally in accordance with FNMA�FHLMC mortgage
loan underwriting and servicing standards. It is exgected that due to the
nature of the pro�ect, and the nature of the probable purchasers of the
condominium units, the rate of prepayment of the mortgage loans will sub-
stantially exceed FHA Minnesota experience� and that substantially all of
the portfolio of mortgage laans will have prepaid at the end of 10 years.
For purposes of camputing the estimated costs associated with
the ongoing administration of the program, the declining principal bal.ance of
outstanding mortgage loans, based upon similar program, has been estimated at
5� of original principal amount over each of the first 10 years.
•
• The interest rate on the mortgage loans will not exceed by more
than 1.5� the interest rate on the bonds, the difference bein� attributable
solely to the ongoing costs of maintaining the bonds (including maintaining
certain mortgage pool and special hazard insurance policies for the security
of the bondholders) and the cost of administering and servicing the mortgage
loan portfolio.
•
•
$5,000,000
� CITY OF SAINT PAUL, MINNESOTA
HOUSING AND f2�:D�VELOPMENT AUTHOILZTY
. (MII,LER PROJECT) �
Dated Dece:r�Er 1, 198^
• Due December 1, 1982/06
' TOTAL .
. PRINCIPAL
AND .
YEAR PRIN^IPAL COUPON IPiTEREST INTEREST •
1981 $ 485,347.50 $ 4II5,347.50
1982 $ SO,OJO 7.00� 485,347.50 535,347.50
1983 55,000 7.20 481,847.50 536,847.50 • .
1984 60,000 7.40 477,887.50 537,887.50
1985 65,000 7.60 473,447.50 538,447.50.
1936 70,000 7.80 468,507.50 538,507.50
1987 80,000 8.00 463,047.50 543,047.50
� 1988 90,000 :: 8.20 456,647.50 546,647.50
1989 100,000 8.4U 449,267.50 549,267.50
. 1990 110,000 8,60 440,867.50 550,857.50
1991 125,000 8.80 431,407.50 556,407.50
1992 140,000 9.00 420,407.50 560,�07.50
1993 155,000 . 9.15 407,807.50 562,807.50
1994 170,000 9.30 393,625.00 563,625.00
1995 185,000 9.40 377,815.00 562,815.00
199fi " 200,000 9,50 360,425.00 560,425.00
� 1997 220,000 9.70 341,425.00 561,425.00
1998 240,000 9.80 320,085.00 560,085.O�J
1999 260,000 9.90 296,565.00 • 556,565.00
2000 285,000 10.00 270,825.00 555,825.00
2001 310,000 10.10 242,325.00 552,325.00
2002 335,000 � 10.20 211;0].5.00 546.015.00
2�03 365,000 10.30 176,845.00 541,845.00
200� . 400,000 10.�0 139,250.00 539,250.00
2005 440,00� 10.50 97,65U.00 537,650.00
2006 490,000 10.50 51,450.00 , 541,450.00
TOTALS $S,OOU,000 S9,221,137.50 $14,221,137.50
Average Principal and Interest - $54G,966.EsG
Net Interest Cost - 9.9936&
•
CRONIN & MARCOTTE, INC. MUNICIPAL SECURITIES
330 IDS CENTER • 80 SOUTH EIGHTH ST. • MINNEAPOLIS, MN 55402 • 612/339-8561
�
September 18, 1980
S�p �9 �
Mr. George Frisch
1781 Saunders
St. Paul, Minnesota 5511.6
Dear George:
Enclosed herewith is a tentative principal and interest schedule
based on a $5,000,000 loan serialized for 26 years.
Sincerely yours,
.- . � i��'' .
• _,
C. R. Cronin, Jr.
CRC:dk
Enc.
•
• CHAPTER 72. HOUSIVG A.�'D RE�i.�BILITATIOr FI�A:\CE
PROGRA,�IS.
- . (Admin.Code;
---zi.oi�s��i Te�� ..,......
' k�un� n� ��o��Sci s: .
. ? .oi SaiaLBaui;o deveSop aad admin.�
:'lster a:ho+uinq pla�n �d'yro�ams
�• to ta�►ce wi�3ia the corporata lim-
:r+�Ls oi.the•Ctry aad haa deciased•ssr��
' q'���B D� aasd pro�aas:as con-
stitu:tag a pubtic pvspose. She State
� ��CO{�C31' ot�the'C3.aeoi�SatistFaul•aon� • � .
neteby Bad and detcr�..tne.-la)•tha�•
'there ase mar� ho•,�� •.�:ts 3n t�e�
2►on-sinStecdtis�some o1 w!D�peed
io be destroyed and sonse ot wtsic�
ean be retiabiL•:sced•.(b) tEas a need
. . �exists to-s+eplaee lioasi.-sg -wlsick is
:•-desCSOyed or�deer[olished:-(e)'that a
.need ex�ts tor.mor.gage eredit-to
'De made availsblrtor•new eor�auc-
- �cioa-•_td) .thu rei�nanes.zg•e�asane•
�rt8�4es will.allow okzsers oi hous-t •
1�t �►tt wifica aee�:reIIabilivaon{
. to ake advaa;aqe o! 'e.Cis.mg re• '
�abilitation pro�ams: and•(e► that
�many owners. woWd•be purChasen
or yroviden ot housine uniu are
either unaWe w at'ord �snpr�age '
'creeit at:he a►a:;cet sa:e oi inte:est
or obtaia mor.gage credit because
Rhe mor4gage�eGit�a:ket is severo- .
_ 17 ies�iCGed, ' �.. . ' ':. • .. .
; • _ (Amended, Ord. 16504, Feb. l3, 19i4;
��-i Ord. -1664j, Apr. 1, 1950. )
• ..?2.0'L 1vts9oi Lo dt�dvP Drotr�'=o
achieve the purpo,s�. oblessves aad
, soaLt set Sortd above in Sactioa '1..
- . the mayor shall devetoD and ad:ain-
•;ster a hous�a8 x►lan'and a pro�sa
or progra:as to fizaace l:ou►n�,coa- .
strucdon and.seaabilitanon.•s.z coa-
iormance with-:.he :eGe::e:..ents set.
•Sorth in Chaptes �. :.aws•oi �tia-
!.aesota ior 1973. yL'.�u+esoa��SUCStes.
CDapcer 462C. �sat .L'�e:�segutauons
;�:promulgated •by ths eouneiL:.�r _
; mayor ahail d�evelop Lhe r.c]�'s hous- ,
in� dnanee y:o�arl.i:sach•a'san-.
•-aer that it w'sll cor..ple^ea[ t2se ex-�
istin� C:ip• 'Hovsng--?ehahilitat�oa�
•. Loan and_Gsaii:°:ogt'ac:t.BCoptea byl
Resotutson CF. 36�630 a�d•Oreinancti
c
' ISa I5732, axtd ameadmenu to..swch
Aesolution and Ordnaar_. Ske city's
�ouaa6•@aance pso�am -map• in-
. elude lunds trom a1C�ava�labie fed-�
erai.state.regsonal•and local sources.
Dpth pnva:e s�d �abite. a deveiop-
ing and ad..^i'sn"s.ennq�he pian and
these programs: the ^�ayoc••shatl'
eoordinate sue� yro�a.rs admtn-
ir.ered by the :edera:,s::te.:egaonal
and tocal agenctes to �ke ead ;hx.
the etty t:uy aciueve :Ae opL.-:►um
ot beneht f:om a1 suc� prograr.tis
a.tfd �e proviyon o: acequa:e, 3afe ,
anri heal:h:•s! hot:s:a; :or :he in-
habiwnu oi Lhe C::i of.5au►: Paul.
(Amended, Ord. 16�04, r eb. 1 j, 19�9•;
Ord. 16b4�, �,pr. 1, 1950. )
•
• '
. F
72.Oj. Administration of nro�rams.
�In ttie adminLstsation•o! the Ci:.v'sl
bousing tinaace prognms. :he rsapo^�
ahail endea+or to ma:ce iue ot exis�n8�
lendinY ituututions and suL'• irors� �°'
Dr►vate and the go�ern:neat seesor.l
Tt�e mayor r.►ay e�plog aii such neces-f
sary sta�. conc:act with Public o: ?=1-=
vate insntutions or perso:s asd obum�
=t►aterials. supplies. equ:pment and oi•i
Sce space as is tss the 71�8'ner.c oi
,the mayor necess�to�a N?�'^��
ttauon oE ti:e pro.,-.
2undiaK aAP=opnauons �DP�ved �Y
the Ci�r Couac3l.� w,::..., . �.
(Amended, Ord. 16�04, Feb. ij, 19i9;
Ord. 16�92, Oci. 2�, i9�9. )
~4204 Use of other a,;eacies• bonds.I
SuDjeet to the a�prov�i a: the c::y� •
couacsl. Lhe taayor may employ :he•
sesvices of the Fiousinq s-s� ?.eGewi-
" opmen:F.uthorc:v�oE:he Cr�o:SiL1t
Paul (�e "F�i.1''), the Port Au�`�o�-•
'ity, ot the �ty ot Saust Pael �;F.e�
. •••Port Au�hon:5'1 and/or�.3e �Sia-
nesota Hoaung Finaace Aqency to:
• the purpose of aidtng in the imple-
mentatzo� ot iFe ci:y's hous►ag fi- _
nance yro�ars to the e�r.ea; pe:-
� tn.+ts,ed by law. The HL4 ar.0 the
Porc Au:.hori.y. are he:eby des:g-
'� nated to••exercsse on behait o! ^e
. Cit9. the powe:s cvnfesred by tiiin- '
" nesota.•-Statutes, Sec�ors 462C.Gi •
thzouqh ;5':C.08: provlded Eowever.
that the H.�.l and the Porc.�,ucho:::?
ehall aot c:iry•ou; anq spec:fic pro-
' grar.0 vnless direaed and.authorLeC
ta do so by a resolution adop:^C°
Dy the city cour►cil. If the•�a-o:
the Port Authorin Ls'so en:ployed.
•then ihe HRA or :he'Por.Au•..�.ortty
�ay be authot!zed by tAe-mayor.;^o
� exercfse any and all o! �.be powrzs
wttich the �Lir.nesota fiousiag Agen-
ey is au:horsed to cxercue uncer "
the provssions of :vLinnesoa Siarutes
462A is► the nalcng or pureZast tr: �
, loans a�ut�securitia in tur.teranee.
of •tne p:og:artu. Rev�nue bon'4s•or
other.�obligatiors ssued by the ciLp
.ot Saint Pau!ssalt.�..�st`x autho:ized
and approved by :ne eity couneL
and :ssued a accordaace wi:h- t:e
terms and provisions. :nc?s�:n�:
�i:nnesota S:atu;es, C:►apte: 4o'3C:•
CGap:e^881. Laus:or 1463.at ars'.ena-•
ed: Chapter �6t. Laws :or 1Y4. aa�
anended: anC C?tapter :60. I.av+s tor; '
1075. • �--- �
(anended, Ord. 155C�4. Feb. 1�, =9�G�
Ord. �6�9°-� Oct. 2�. �19i9� Ord.
i664� , apr. 1 � 19�0. }
•
V
s � .
7_•06 DeAnttlons, For the purpasea
ot this ardinance and Aousing ptant j •
or Dro�arsu adoptea pursuant herti�
to, and unless otherwise herein pro-
vided, all ternu a.nd Dhrates �ssed
��1Z D�xss the delaitio�s and '
meanings Zscrjbed to ;.��rp � the
Ctty's Aousing Rehabilitation Loas�
and Grant Pro3rar.0 escablisaed by
Resoluden C.F, •264u"i0, and Ordt-
nance No. 15751 (Cha�.er T Adrairi_
ittrative Code)•or!n Mianesou Sut_
u�..C�D� 462C' u apyroPriau..
(Amended, Ord. 16j0�, Feb. 13, �979;
Ord. 1664�, Apr. 3, 1980. )
42.06 Loaas. coaditioas. �All loa=u
mada b�•or oa behal! o! trie eity
• sh:1l camply with tAe tersns oL sp-
' ptieable daw aad hotts�ag ylaru, and
the specislc pmgram pursuant 'io
a Aich:Ae loan 's r.tade. To 2he ex-
tem required by :aw, all loans saade �
by or on Dehalf of L':e ci:s s.'�:ll be
made o:.lp whe� St 'ss 8rsc cete:-
mu:ed that Haancing u not oLher-
wise available L�om private lenders
upon :er^ts aad cond:nons whicl: are
- afo:dable Dp the appLwr.t. FoJow-
ir.F :eeapt a: 2oan applications. :he
ct:y shaLL make a• detesm:ziaaon
.vrhe�her mortgage eredit fo; LkaL
c trpe o: houswg �s a�ti:abie trom
pr:��a�e lendars undeL sucn te::rs . . .
and conGitio:s which vcill perrtii
• the boc:ower co -ent the houinq ,
tuus at a rate which the risarket wz?:
De able and ariLing:o pay; or ;a the
ease of a single :anily home, sk:al!�
deter::►ine :.hat the monthly princ:pal
.and i.te:est paynenL;will br ar:ord-
ab:e by the applieant. In :ne evea;
tl:aL tFe etty shail provide Ll:e hot:s• �
ing E^.anee assisiance, the Darrower
shall be req�ured ;o repay the pr�z-
upal amount ot 2he morsqage, tr
�e:her wZLh in;eres. at a zate that'
• `aKll be at least•equal.to the anterest �
raLe, wbich the caty is tequirec to
pay on iu•bonds or oth�obliRatio:u.
In es:abii>hics r..or:�age repaymens.�
ihe r�ayor shatl ezLSUre LRat L'�e
sevenue.� recei�-ed� bp •the citp are:
suP.icienc to retire the priacipal anc'
iatetest on bonds issued to flnance!
the progtams and aiso ;o yzov�de for�
Lhr costs of adsr.inu;erusg :5e mort•,
$°8�• . ' .. .. . i
' (.�mended, Ord. 16�G4, Feb. 1j, 19�9;
Ord. i6�92, Oct. 2�, 1979; Ord,
. 1b6�> > �Pr. i, 19&0. )
'=-�'• Pr°grsm fuads; otber sources. For tne pu:pose o: obtaining
program funas, the mayor is autnorize� to appi�•to �n��iede:al, state
o: re�ionsl a�enc�• for �ranc or Yoan monevs. T.ze ma�•or s:�all en-
cez��or to abcain pro,ars fnnds F:om al! sourc�s ir. addition co the
ci:�•'s bond �roceeds.•4l1 grant and loan "r,:nce::; a;eemenu shall be
�uorzirec for council aooroval. The council may i��nao;e rest;ic:iocLs
on tne use of suc��rant and loan Fsncs ia.:�e resol�tioa appro�•ing tne
• 2�e�.^:lent.
•
. 7r.ae Pe:miceea iuea ot :unas. Prw -
� Srasns est,iblished bY the mayontnay
provide mortgage or loan financang
ior new eoascrucaoa oi sing2e fanily
housia8. ��(uple iami�y housinQ
townhouses.condoraininsns and apatt-
n�mts- Tae programs maY also yro-
vide for zefinancin4 ot existinB mort-
n���at rehaDtSiuuon ma h� �e• '
advan�age ot rehabilitation progtami
admiatscered DY the. citY oe ocher
�8encies.The progra�rss maY�1so pro-.
vide for extenytcn ag fu�a�y��g for
rehabiliUtion oi existing' 2�ouriae:
��' F����S�maY be provided to
� the Fiousin8 and Redevelopment
Authoriry � �+e �tp of�Saiat pau!�
to De used bY LDe PiEtA to construet .
�OU�B oa property owned by Lhe
� FIRA for the purAose of renabiUtaty,g
e�dstiag houung ownect bY the FLRA
or the cicv, Program funds may De
iho �CQ a��Sicion ot land
usine•and tor construcnon oi
2:ous�ag ce the exten� provided in
tae housing Plan.or proer0m guide-
lines adopted by the counetl or the I
ma�or, proeeeds received irem Ghe!
Luuaace ot genera,l obligatim bonas�
�d�ria�cludingom e ie est�.a e g taxes�`
shall be used solely to tro�ide hous-
ing Rnarcce assisunce for occupancy i=
D m derate incompee, tL hen such genecat i
obligahon or general iLnd proce-ds!
are to De used to F.nance consG�u�_i
tion or rehabUi.a�on pt �;;ul�aje'
housis�p uniu at leas:6G"'o of houaaq�
• • � �nics saall be occupied by persons oi�
low and moderate income.
(ruaanded, Ord. 1670'�, Feb 1-
- Ord. 16�g?� Oct. 2" ' �: �979;
16645 A >> �9�9; Ord.
� pr•, 1� �950. )
• ,•. 7Z09 4lortsaaes: liem. The mayor�
may provide temporary consy-u�;�or.
financing artd• per.nanent financ:ne�
��s=nB• Ia allreas smof hous'in t�e�
naace assssa::ce. :he mayor maY ob-
and improve nentsi n z�e malnr.g o
housing loans, the mayor shall•at-
' tempt to obtaia FHA .or �p �n.
' sured mortgages, or qrfvate mort-
gage or loan insvrance, wherever
possibie.•All loans nade by the eity
' shall comply urtck ail applicaDte feri-f
eral and state iaws and r seulations�
pertaicung there�o, includi:.g �:terest�
ra�e limitations :nd credit uisdosure(
� requirements. . _ �
(Amended, Ord. 16"04
Ord. 16j4�� Oct, ��- ' Feb. ij, 1979;
166��, �pr, �� �g��, � 1Q�°; Ord.
•
• ?2.10 Bond yroeeeds:separate lunds.�
The procerls irom the sale of general
obligauon bonds and from seventse� •
bonds issued for the programs auth-
orizeC by this or�nancc shall each
be placed in a sepuace:und; monces( •
placed ia these swo lunds may be
transferred or disDuased to whi¢h wili�
comb:ae these sources with otherl
sources to aceomplish the dty's i
Housiag and Rehabilitatioa FYaanca�
Progr�,nrs: and housine finance loa.�►s�
and morteave.credit may be tnade c
Sro:n tRis eombined tund. TAe gen••
� eral oDLganon bonds lssued under;
thfs ordiaaace may be retired in:
accordanee ariLh :he eity's normat�
iunding process tor geaeral obiiga-� . .
tion Donds. Reveaue Donds or re�e-
nue obligations issued !or :5ese pro-
grams shail be retired solely irom all
o! the revenue sourees oL We�oeo-
ararsu autnorized by aitnnesou Stat-
utes. Crapters 962A aad 462C and
Chapter :60, Liwe of 19i3, as defined
and pledged to thetr repayment and
Neir rapect�ve bond resolut�ons: and
a separace s►nicing.iund shall De es-
Ublished for the accounUng o! t:►e •
revenues and the renrement ot these
rever.ue bonds. .
(Amended, Ord 16j04, Feb. ��, 1979;
ord. 16�92, Oct. 2j, 19i9; Ord. .
16645, Apr. 1; � i950. )
� -
i?. 11. Reaulations. . . '
t • __ The torraotr -c ' •
!r.ance. anC -he gro�-is orRUS of t�s 3ec-!
uon 11. shall eor.t.;tste ;he :e;u:aLions(
reGuire� fo: tF.e pro�ara av;horiec•
by C2:x�te: ^50. :.aws of 2?;S. In deee!-�
oPL.g and ad:r.iniste�a� the program,�
Ithe na�•or sha'.! consirier: �
I la)T'.*.e acailabili:}• utd aSoc�abil-•
ttp oi otrie: gover.une;ny( �ro-
= Rrass:
�b)Z'�:e avai;abili:y and ago:dabil-
�-} o: �nvate racket Sr.ar.cir.q
e' r.io�:qage ioans aad re�aaoi:i-
tation ioars;
(e)�:'he2he: refinancfnB euisttr.g
r.�o:tgages uz12 eaable rehabitia- - '
tion of housir.g uniu unce: o:
federal, s:a:e or loca! housing�
re.*.abili:a:ion program-
(Cl The neeC tor rehabiii:a:.-g
housina v��ts acGuL-ed f:on gor-�
j (e/T.:e reeC for:d�:lanal mor-�qe
� cre:i! ;o er.courage •!;.
OE hOLSiRR .::l;S tV�;hlR tl�FQO-)
�:aprtu bou.�Zaries of ;he C::r.
, ond :he YL"�Z;,se of :e!;abi::ta:ed
; hous�ns �:-.•z� irom �o.ern:rie.^.:a'
� bocies or a¢enaes: '
� !f! T!fe r.eec :o: adt::�caal rnort2aae�
erecit :o e^ccLra¢e �he pe:cl:asei
� oi houstr.g _;�'ts �cMen u:,e :o-
eate= o� p.o�e.:y :�•�ich �orer:-�
• men:a: 5ocies e: a�eneies :a�•e:
acau::vd .:ad rnade su::abie za:'
hO:S:�.� tC^_r,-VC::CZ• • � � �
' �il':he ndt�cahihtt pp� t^:piot•:Z¢.
o: eor.:r�c::^� :�-:l�e sen•ues o:.
pr:est. ...o::e3g° ..�rke: perso:s
uc �nc:i:;:_:o;;s :o�ai;: anc ass�s:
' tl:e C::y - car: :r, ouc :.h
i ^•oses of tRs or'...ia:nce: � ���
•
•
72.11 (cont' �)
1Q)T'Ae aCvfsaoLtits ana ava�ubility
of mortqage pooI i�uurance, �p�. •
cial hazard insura,a¢e and othe:
pool °r ag�.�3ate tnsurance :o
rotecs t2�e int�-e� o! the C::�
•- Lhe loa�, mor:ga4es, an3 laa�
• and 'unprovements, fusanced puz�
suas�t to tks ordinaacr,
(I) In detersiwi;ag that financing ts
not othernrise avaLiable imrn p-;_
vate lendess equsvalent u�on
.• ter�i arnd con�uons4wtueh apO.re�
• a8ordabie by loaa appticaau.� �
' �sucA data is iaay be availab:e�
eor.cernLzg.;2ie cost o! hous:ag�
withtz the C:ry,the cost of mam- '
-• L'unine and insuru�� suc4 ho�u.�
•�8. the cost o1 reha0itita,-y1g
� such housinQ, ��oy�� ot p�sors
and fair.ilies tvrhm ;.he C;ty, ;�ae
zate oi tncrease and cost o!hoi:s-
ln8 within the City, ana the race •
of inerease ia the Stt,zds a:allaS:e
to persoas and lamilies MnLa
�he CSty. and
fj) The adrtsabillt�- o: special r.i-
tena for developmezt areas, a�C
for especial;y cetenorated s:�:r
tures. �chfch ci:e:ia r.iap a:ake .
financlnq availaole in recea•doa_ �
mGZt 2:eas. aad :or esp•cia::y
deteriors:ed structures, mt::o�:
re;ard to ineone `�cri;s; an�
(k)The adv�'sabilScg of caordt:a,::,q
sveh pro�rar.t or prograrr� u�;
other City, state. :eoe:al :a_�
• � . aih stich prog�.�ams sha111 crs�.,
tute a conpse.*.ens�ve p:pg:�...
tor� achiecin4 the purposes of�
__, C4apter�Q.U�ot:953. 1
The maror suall jorr.�ulate such c�:-�
ter'a for submisuon to tne Ci:y Co�a-;
cil for re�•ir�v aad approvat, ir.ccn::ec-
tion wiL� an� p:og=an or pro„z.:s�
e:ndertaken pursuant to t'.sis ordina:tce •
and eonsu:ea; with :he re�•,,;a����
promul;ated hereunder as shz:l :acs-
e°:ec:ively carry out the �urposes e:i �
:hfs ordir.anee. Sueh cr;eria taa}• te�
. coatainrd in anp a;re-r..er.t, co^;rac:.:l
:nCenture. Dond sesolution, or och•r+
. ir.s:rs::�en: peraining io snch pro�a-;�
or prog:a:su. , �
P
, (Added, Ord. 16�04, Feb. �.3, Z979;
. amended, Ord. 16j9?, OcZ. 2j, i979. )
(adopted, Ord. ij9',�, �iar. i6, �976;
amended Ord. 16j04, Feb. lj, z9�9;
Ord. 1659?, Oct. 2j, 1979. )
Ord. ����S, �-�,r. !, <<• i� ,�
�
• SCHEDULE V
Multi-Family Certification
With reference to Multi-family Certification (MHFA Exhibit
(f) , this Sectian contains:
l. Multi-family Certification (MHFA Exhibit F)
2. Estimat:ed Rehabilitation Expenditures Schedule 1
3. City Cc�uncil action establishing Seven Corners NDP
4. Pdotic� of public hearing on I00 Summit Associates program
5. City Council action on the 100 Summit Associates program
• +�
•
• EXHIBIT F
MULTI-FAMILY CERTIFICATION
1. Name of Applicant:
Housing and Reaevelopment Authority
. of the City of St. Paul, Minnesota
2. Date and location of public hearing on Program:
October 21 , 1980 .
St. Pau � City 11
3. Date and place of pu��ication of notice of public hearing:
October 7 , 1980
St . Paul Dispatch-Pioneer Pres.s
4. Date of adoption of Program by Applicant's governing
body: (Attach a certified copy of adopting resolution.)
5. Attach copy of Program which was the subject of the pnblic
hearing, unless,�the elements of the Program are. full
described in the Housing Plan submitted herewith.
� .__. .
6. The total Bond proceeds less reserve ($600,000) and issuance �
costs ($1g9 3�5 � will be in amount of $ 4 ,?np
will be used solely as end loan mortgages for con ominium
purchasers. The developer will finance rehabilitation
of the project through conventiona7. sources, and no� bond
proceeds will be used for construction.
7. The developer wiZl expend the sums shown on Schedule
I (Estimated Rehabilitation Expenditure) attached hereto
for rehabilitation and renovation of the project into
multi-f amily housing. Over anc3 above the amount necessary
to bring the project into compliance with state and city
building codes (Included but not differentiated on Schedule
I) , the cleveloper will expend $275,000 for conservation
and energy efficiencies for insulation and nesa heating
system. The land and building are appraised (M.A.I.)
at $1,100,000, but are .shown on the attached schedule
at ac�ual acquisition cost of $950,000.
8. (a) Plill the development when completed comply with
the State building code? YES X_ NO �
�
• (b) Describe how the Applicant will ensure that multi-
family developments financed pursuant to this Program
will comply with the state build�ng code:
As set forth in Paragraph 4 (c) of Exhibit D -
General Certification.
9. (a) State what percentage of the ioan proceeds will
be expendec7 directly on the housing development
and property functionally related and subordinate .
to it.
None.
. All bond proceeds (less reserves and issurance
costs) will be solely for end loan mortgages.
(b) If the development is projected to be combined
� with other non-housing facilities, describe the
facilities, the method of funding the facilities
(if newly constructed or acquired) , and how the
facilities will be related to the housing development
� •.. , to be funded pursuant to this Program: Further
development will be financed primarily through
conventional sources. A description of proposed
future cievelopments is contained in the Project
Description as Item 1 of Part {► hereof .
10. Answer those sections applicable to your Program:
(a) Developments for low and moderate income families
subd. 2) :
N/A
(i) Income limits for Program participants:
N/A
(ii) If the income limit stated in 10 (a) (i) exceed
$Z6,000 per family, state the median family
income in your county or Standard Metropolitan
Statistical Area (as estimated by HtJD) :
N/A
• (iii) Percentage of units to be available to persons
and families whose income exceec3s the levels
stated above:
N/A
•
(iv) Percentage of units to be reserved to persons
and families eligible for subsidies under
Section 8 of the United States Housing Act:
N/A
(v) Describe how Applicant will ensure that
future occupancy will be restricted to persons
and families meeting the above-described
income limits:
N/A �
(b) Special area developments (subd. 3) :
. (i) Check applicable area:
Redevelopment project area g
. Development district
Industrial development district
• . , (ii) For each applicable area, state date of establishment
e - and geographical limits:
Council Adoption of Seven Corners NQP area on January
24 , 1969. See. attached Council File 241901 which de-
fines Project limits .
(c) Elderly or handicapped developments (subd. 4) -
(i) Percentage of units reserved for elderly:
0
(ii) Percentage of units available for handicapped:
10$
(iii) Describe how Applicant will ensure continued
occupancy in the development by such persons:
10$ of the units are planned for occupancy
by handicapped persons; occupancy will depend
on demand. Construction will provide barrier
free entrance and ammenities .
•
� �����
�
verification
.
the undersigned, hereby certifies that she/he is the
of Applicant, is authorized. to
execute this document on behalf of Applicant (a copy of which
authorization is attached hereto) , and that the information set '
forth in this Multi-Family Certification is true, correct
and complete.
Subscribed and sworn to before me,
this day of , 1980.
; ••. ' .
Notary Public .
•
�Gr b��,.��.;�w
SCHEDULE I
. Estimated Rehabilitation Expenditures
A. The estimated * expenditures to renovate the project into
70 condominium units as described below will be in the
amount of:
$3, 954, 215
The expenditures will be as follows:
Acquisition Cost (land & building) $ 950, 000 (a)
Building Construction & Renovation 2,137,000 (b)
Design & Engineering 122, 215 (c)
Pre-construction costs:
Mortgage Commitment Fee 75, 000
Temporary r4odels for Sales
and Administration 30, 000 (b)
Title Work, including Condominium
Declarations 10, 000 (c)
�` • Int�erest for Interim Construction
and Site Acquisition (14� for
14 months) 630, 000
$3,954, 215
*See footnotes to table
(a) Actual
(b) Based upon firm bids for construction
(c) Based on hourly changes, maximum estimated.
B. The project wi.11 be renovated into 70 condominium units
consisting of 63 -1 bedroom units ranging in size from
666 s.f, to 910 s.f. , and 7 -2 bedroom units of 1, 240 s. f.
each (total 83, 250 s.f. )
The work to be performed consists of demolishing interior
walls, plumbing and electrical and building interior
walls, new plumbing, electrical and mechanical , new
heating system, additional insulation and entrance site
work. On an average basis, the per unit expenditures will
be approximately $56,489 depending upon size and amenities.
'
^ , • "EXFiIBIT A" � i ��`.•��;�j
� Sumtnit-University Sherburne Acenue and Univenity
Beginning at the point of intersec- g��ine which is the point of be-
tion of the eastern right-of-way g�
line of Western Avenue with the . Sevea Cornen
projected northern right-of-way
• IIne of the alley between Sherburne . Commencing at the point ot inter-
Avenue and Univenity Avenue, section of the nortKern right-of-
then westerly along said projected way line ot Ramp W-11 of Inter-
line of the alley to the point of state Highway 35E and the center
intersection with the western right- line of St_Peter Street,then south-
of-way line of Lexington ParkwaY. easterly along said center line oi
then southerly along said line to St. Peter Street to the point of in-
tfie point of intersection with the senection with the center line oi
southern right-of-way line of the Kellogg Boulevard, then northeast-
alley between Portland Avenue erly along said line to the point of
_ intenection with the cmter line
' and Summit Avenue, then easterly of Wabasha Street, then southeast-
along said line to the point.ot in- erly a3ong said line to the point
tersection with the eastern right- ot inteisection with the southern
ot-way line ot Siilton Street, then right-of-way line ot Shepard Road. .
northerly along said line to the �en southwesterly alang satd line
point of intersection with the ��e point ot intenection with the f
southem rlght-of-way line of Port- center line o! Chestnut Street, ex- t
land Avenue, then easterly along I tended, then northwester�y along �
said line to the point ot intersec- s�id center llne to a lot line 312
tion with the western-right-of-way feet northwest of the northern
line oP Victoria Street, then south- � right-oi-way line of E x c h a n g e
erly along said line to the point Street, then southwesterly along
o! intersection with the southern said lot line extended,to the point
right-oi-way line oL Portland Ave- of intersection wlth the center line
nue, then eastecly along said line , ol Sherman Street azsd the center
to the point oi intersection with • 17ne ot Ramsey Strnt, then west-
the weaLern right-oi-way 3lne ot erly along the center line o! Ram-
SL. Albaas Streei, then souther�y sey Street to the point oi intersec-
along said line to the southern tlon with the center line of Seventh ;
right-of-way line of the alley be- Street, then northeasteriy along i
tareen Summit Avenue and Grand said center line to the point of in- �
Avenue, then easteriy along said k�tion with the center line ot �
line to tht point ot intersection Sherman Street, then northwest-
with the eastern right-of-way lin� erly along said center line to the
oi Oakland Avenue, then northeriy point o! intersection with the cen-
along said llne to the point of in- ter line of Ramp R-NE, extended,
tersection with the projected line o! Interstate Highwax 35E, then
of the southern right-oi-way line southwesterlg along sa�d center line
p! the alley between Summlt Ave- to the point oi inteesection with
nue and Grand Avenue, then east- � the western rIght-of-way line oi
erly along said prnjected line to � Thompson Street, then northwest-
thc point. of intersection with the ! erly along said line to a point on
eastem nght-oi-way iine oi Snm- ' the southern rfght-ot-way line oi
mIt Court, then northerly along j Irvine Avenue, 695.66 feet, more or
said line to the po int of intersec- � less, southwest oi the westerly �
tion wfth the southern right-ot-way � right-of-way line o! vacated Wal-
line oi Summit Avenue, then east- nut Street,then northeasterly along �
� " erly along said line to the point the southern right-of-way line of :
of intersectlon with the southern Irvine Avenue to the point of in-
r3ght-of-way line of Ramsey Street, tersection �vith the western right-
then easterly along said line to the of-way line of vacated 1Yalnut
point of intersection with the east- Street, then northeasteriy to the
ern right-of-way line of �Vestern � point ot intersection with the east-
Avenue, then northeriy along said ern right-of-way Ilne of �acated
line to the point ot intersection j Walnut Street and a lot line that
with the southern right-of-way line is 3P.0 feet, more or less, south of
of Irvine Avenue, then northeast- the southern right-of-way Iine of
erly along said line to the point Summit Acenue, then northeaster-
of intezsection with the northeast- ly along said lot ]ine to the point
erly right-of-way line ot vacated of intersection with the southern
Walnut Street, then northwesterly � right-of-way line of vacated Selby
along said line to the point of in- � Avenue, thea westerly along said .
tersection with the southeasterly line to the point of Intenection
right-of-way line of Summit Ave- with the soutbeasterr. right-oi-way
nue, then northeaste�ly along said � line of Summit Avenue,then north-
line to the point ot intersection ; erly along said line to the point
with the proiected northern right- of intersection with the southern
oi-way Une of Dayton Avenue, ( right-of-way line of Dayton Ave-
then westerly along said line to I nue, extended, then westerly along •
the point ot intersection with the . said extended line to the point ot
eastern right-of-way line of va- ' inteesectlon with the center line .
cated Cathedral Place, then north- ' of John Ireland Boulevard, then .
erly along said line to the point northeasterlp along said line to the
of intersection with the northern point of intersection with the
right-of-way line of hianhall Ave- northeastern rlght-of-way line o!
nue, then westerly along said liae Ramp W-10 0! Intentate FIighway
to the point of intenection with 8�1. then southeasterly along said ;
the eastern right-ot-way line oi line to the point of intersection ;
Western Avenue. then northerly ; with the northern right-of-way line :
along said line to the point of inter- � �
section with the northern right-ot- of Ramp W-lf of Tnterstate Hlgh-
, way 3ine o! Marshall Avenue, then N•ay 35E, then noriheasterly along
westerly along said line to the point said line to the point of intersec-
ot intersection with the easterly tion with the center line oi St.
right-of-way line ot Arundel Street, peter Street which is the point of
then northedy along said line to , beginning.
the point ot intersection with �
southern right-of-way oi Concordia (February 1. 1969)
Avenue, then southeasterly along
said line to the point of intersection
with the eastern rlght-of-way line ;
of Western Avenue, then northerly I
along said line to the point of in- (
tersection with the northern right-
• of-way line oi the alley between
WHiTE - CITY CLERK
PINK - FINANCE COU[ICII
CMNARY - DEPARTMENT G I T Y O F S A I N T �A U L � `� �
BLUE - MAYOR File N O.
S� Gity Attny/SDM . ,
ncil Resolution
Presented
Referred To Committee: Date
Out of Committee By Date
RESOLUTION RECITTNG A PROPOSAL FOR A FINANCING
PROGRAM FOR A MULTT-FAMTLY HOUSING DEVELOPNlENT,
GIVING PRELIMINARY APPROVAL TO THE PROJECT AND
THE PROGRAM PURSUANT TO MINNESOTA STATUTES ,
CHAPTER 462 C, AND AUTHORIZTNG THE HRA TO
EXERCISE THE POWERS CONFERRED ON THE CITY BY
MINNESOTA STATUTES, CHAPTER 462 C, (100 SUMMIT
ASSOCIATES)
WHEREAS, .
(a) Minnesota Statutes, Chapter 462C (the "Act")
authorizes cities, or housing and redevelopment
authorities authorized by ordinance to exercise
on behalf of a city the powers conferred by the
Act, the power to issue revenue bonds to finance
a program for the purposes of planning, administer-
ing, making or purchasing loans with respect to one
or more multi-family housing developments within the
boundaries of the city;
(b) The Housing and Redevelopment Authority of the
City of St. Paul, Minnesota (the "HRA") has been desig-
nated, by ordinance, to exercise, on behalf of the City
of St. Paul, Minnesota, (the "City") the powers conferred
by Minnesota Statutes, Section 462C. 01 to 462C.08, upon
specific Program Approval by the City Council;
(c) The HRA has received from 100 Summit Associates,
a Minnesota partnership consisting of Jerry Isaacs and
Gerald E. Frisch (collectively, the "Developer") a
proposal that the HR.A undertake a program to finance
a Project hereinafter described, through the issuance
COUNC[LMEIV
Yeas Nays Requestgd by Department of:
Hunt
Levine In Favor
Maddox
McMahon B
Showalter - __ Against Y — —
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date —
Certified Passed by Council Secretary BY
By —_
Approved by 17avor: Date _ Approved by Mayor for Submission to Council
BY - – BY
` _ . __. _
. .
.
������
-3-
and affordability of private market financing for multi-
family housing; (iii) an analysis of population and
employment trends and future employment needs; (iv)
the recent housing trends and future housing needs
of the City; (v) an analysis of how the Program will
meet the needs of persons and families residing and
expected to reside in the City; (vi) an analysis of
how the Program furthers statewide housing policies;
(vii) whether the proposed amount of the bonds will
exceed the limitation provided in MSA §462C. 07 , sub-
division 2; and (viii) an analysis of administrative
and bond issuance costs.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City
of 5aint Paul, Minnesota as follows :
1. That the Program is in conformance with the goals and
specifications of the City's 462C Housing Plan adopted March 6,
1980, and is hereby approved.
2. The City hereby gives preliminary approval to the
proposal of the Developer that the HRA undertake the Project,
and the program of financing therefor, pursuant to Minnesota
Statutes, Chapter 462C, consisting of the acquisition, reno-
vation, rehabilitation and improvement of multi-family
housing facilities within the City pursuant to the Developer 's
specifications.
3 . On the basis of information available to the City it
appears, and the City hereby finds, that the Project constitutes
a multi-family housing development within the meaning of sub-
division 1 (d) of 5ection 462C. 05 of the Act; that the Project
is located within a redevelopment project area established
pursuant to Minnesota Statutes, Chapter 462; the availability
of the financing under the Act and the willingness of the HRA
to furnish such financing will be a substantial inducement to
the Developer to undertake the Project, and that the effect of
the Project, if undertaken, will be to encourage the provision
of additional multi-family housing opportunities to residents
of the City, to prevent the emergence of blighted and marginal
land and to promote more intensive development and use of land
within the City;
4. The Project, and the program to finance the Project
by the issuance of revenue bonds, is hereby given preliminary
approval by the City subject to the approval of the financing
program by the Minnesota Housing Finance Agency ("MHFA") and
subject to final approval by the HRA, the Developer and the
purchasers of the Bonds as to ultimate details of the financing
of the project;
WHITE - CITY CLERK
�LUE R�� - MAYpR MENT � G I T Y O F S A I N T PA IT L Council � �'f����
File N 0. ���� � rrl�,r
� ouncil Resolution
Presented ..
Referred To Committee: Date
Out of Committee By Date
-4-
5. The Developer has agreed and it is hereby determined
that any and all costs incurred by the City and the HRA in connec-
tion with the financing of the Project whether or not the project
is carried to completion and whether or not approved by MHFA will
be paid by the Developer;
6. Nothing in this Resolution or the documents prepared
pursuant hereto shall authorize the expenditure of any municipal
funds on the Project other than the revenues derived from the
Project or otherwise granted to the HRA for this purpose. The
Bonds shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property or funds of the City or the HRA
except the revenue and proceeds pledged to the payment thereof,
. nor shall the City or the HRA be subject to any liability thereon.
The holder of the Bonds shall never have the right to compel any
exercise of the taxing power of the City or the HRA to pay the
outstanding principal on the Bonds or the interest thereon, or
to enforce payment thereon against any property of the City or the
HRA. The Bonds shall recite in substance that Bonds, including
the interest thereon, are payable solely from the revenue and
proceeds pledged to the payment thereof. The Bonds shall not
constitute a debt of the City or the HRA within the meaning of
any constitutional or statutory limitation.
7. The HRA is hereby authorized to exercise, on behalf of
the City, the powers conferred by Minnesota Statutes, Section 462C.01
to 462C. 08 with respect to this Project and Program.
COUNCILMEN
Yeas Nays Requestgd by Department of:
Hunt �
Levine In Favor .
Maddox A
McMahon B �
snowa�ter - __ Against Y �
Tedesco �
W� �CT 2 � 1980
Form Appro ed by it tt y
Adop by Counc� . Date — �
�l�C�..rti �(� /f �
rtified P• ed b Counc.il Secretar BY-'
•
�
App by ;Vlavor: �CT 2 2 �98� Ap o e by Mayor for S ssi t Council
By _ BY
��£c� ►�ov � �sao
� . _ ' _ . . � 1� . .. .
� ... . ._...� . -.:s. � . . ... . . . i�� � . . . _. 4 . ' . . . ' - �
WH17 - CITY CLERK � � . �
P1�- PINANCE � [�[yyya�yy�/.��
CAlMRY +� DEPARTMENT � COUfIC1I �� / �
„g�u_a��M� C I TY O F S A I N T �A LT L File N O. '' �t
�.szY • --— _.�
Council Reso�ution - �
�����2
Presented By
Referred To Committee: Date
Out of Committee By Date �
- . � .
RESO�S.�IE?I� C�LIl�6 �O� 7► �iBLZC �Z3�C �t
A 1�'Rt3gCS1�lT� � 11 PAta6� �OEt lk 11R�L'tZ-t�Y
liO�TSIBG DE1i'��l�S�'t pii�SVAZ@! Ttf �'P!�
�Tl3T88s C�?ER. li2C, �l�td 1�0?�BZSZl� #B3� -�
Bt?BL2C1?20� CF � IKYtICE i3! S� �E�lR� 1li�I3 �
�►�ar�c ssa �sar�rzc� o�► s�e �eac�css�r
nacv�rs u�c xa�,�z� t� co�a�sc� �s�c �
. s��zn s�a �
.,
�,
,
: {a� Mit�n�scsta-Statntas, Chagtsr �6� �t.�te •A�ct•1
authori�+�e citi�s, ar l�tsing aad r�eclav�lopRen� aotharitie�
, anthorized bp ordinaa+�s to a�c�sci*+s v�a b�l! of the ci�Y
t2x� po�rs �o�'e�rred 2ay th�s ]�t, the �et sto lasne
xeve�ua bo�da �or tt� pazpc�� of plenaiag, se�fal.sterinq.
. �aeaiciz:g or pnrahasia+� Ioaaa t�o fivaace oae ..or aor+s aniti-
faa�ily !►oasiaq dav�io�ts withi� th� baandaries of t.t�a
cit�ys .
�b� Tho Haasing as�'t �developa�eeat 71ut2writ�p o! fih�
Citp ot 8aiat B�►nl• DLl.nnesata, �l�h� 'BEi�'j h�ts bewu des3g_
a,e►te�d !� osdiaance, to wcarcissE on beh�lt o� t� Cilp o!
Ssiat Panl, �tian�sota, tl�e �po�ra aonterte�t bp ltinnesota
Statntes, Seetioa �C2C.01 ta i�2G.Q8� vcp�oa speaific prvqr�
apgroval b�► tt�e Cltp t�onaail=
taf The 8�! 3�as rec�ived fro� Jerrg Iauacs aad t3areild
� E. �hciac#a taoll�ctivelg, .the 'De�se2opes�� a propasa�, that tt�
S� tui8erta�fcs a �roqra� ta fia�aa�ae a s�ltt-fa�ily hoosing
' dwela�e�t by tha i�snanee o� its s+erenn¢ boad� �vhish �y
be ia tlud fora o! s► si�.� debt ir►s�t3 I�s�nt to tbe
11�t1
COUNC[LMEN Requestgd by Department oE:
Yeas Nays
Hunt '
Levine IR FaYO[
AAaddox
McMahon • B
snoWaiter. Against _ Y
Tedesco •
Wilson ,
Form Approved by City Attomey
Adopted by Council: Date '
Certified Yassed by Council Secretary � By
By
Approved by 19ayor: Date Approved by Mayor Eor Submission to Council
, By , BY ----
�
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�r�c�,lia�v FoR
APPFt�V�L OF
HOLbSING PRfJGRAM
100 SLA►R�IIT
(Miller Hospital Oonversion)
462 C HOUSING PRfJGRFil�4
�
Minnesota Housing F�nance Agency
. FROM
City of St. Paul, Mn
October 1980
BY
100 Slannit Assoc.
2350 West 7th Street
Saint Paul, Minnesota 55116
.
•
( Insert Letter of Transmittal�, City of Saint Paul to
the Minnesota Housing Finance Agency)
.
•
��
�y����
� �
STAT� OF MINNFSOTA ) - —
County o� Ram.sey 1 ba. -
CITy OF SAINT PAUL ) �
i Rose Mix CZehk
. ..... . .. . .. .... ....t.... ..... . .. ..........Ct.ty
o� �h.e Ci.ty o� Sniwt Pau,�, M�i.nn¢,ao.ta, do he�ce6y celc,ti.sy #h
I have companed �he cct,tached copy o� Counc.i.e F.i.Ce Na,�74�4�
a,a adop�ed 6y �he Cixy Counc,i,L .?anuarX.?4,� . ...... .....19.t
and aPl�noved 6y �he Ma��on .... ..JanuarY.�$� . .... .. .....t9.f
� w�i,th �ice on.i.g�.na,� �he�.e.o� an �.i.Ce �,n my o�s�.ce.
.. . .. ... . . . . .... .. .. . . . ........ . .. . .. .... . . . . ... ... .......
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, I �w�.� ce�r.t,i.�y �'h.a.t au.i.d copy .i,a a �'itc,ce and connec,t
o� a a.i.d on.i.g.i.rca.L and �'he wko�.e .the�ceo 5.
wITNFSS my hand and zhe �ea.0 o� �he c�.ty o5 s�.� pa�,e,
30th �y , Se�pt . . .A.�. 19�
• kknn. �u.d . .. . . .. . . . . . . . . . . . . .
�
� .. .
. . .��e . . . . ......
C,i,.ty C.Ce�.k.
°`"'`'E"' � 1 '1'Y C)N' �AINT ��AIIL �pouncil � E `;;,��a,
_ r..�r�OR . � i'IIC N0. .
fAttny/JTH . .
Council Resolution
Presrnted By
• Referred To Committee: Date
Out of Committee By Date
RESOLUTION ESTAHLISHING A DATE FOR PUBLIC HEARING UPON
THE PROPOSED CITY HOUSING PLAN AND DIRECTING PUBLICATION ~ �
OF NOTICE OF HEARING �
; -
,
RESOLVED by the Council of the City of Saint Paul, acting
pursuant to provision of Minnesota Statutes Sections 462C.01 and
462.03, that a public hearing be held on Thursday, March 6, 1980,
at 10:00 a.m. in the Council Chambers, Third Floor, City Hall,
15 West Kellogg Boulevard, Saint Paul, Minnesota, upon the City
of Saint Paul Housinq Plan developed pursuant to said Statute.
RESOLVED FURTIiER that the City C1erk is hereby authorized
and directed to publish notification of the time, place and
purpose of said public hearing in the Saint Paul `Dispatch/Pioneer
Press, a newspaper generally in the City of Saint Paul, once at
least 30 days before said March 6, 1980 public hearing.
• . .
<
. t
��. .
:��� ,
COUNCIL;4fEN
Yeas ..•��;. Na s Requested by Department of:
������ Y .�_ In Favor ���'
Flozza ^ �
Hunt d �' �
Levine Against � BY `
btaddox •
Showalt �
T �co ,��� 2 /� �9aO , Form Ap d by City Atto ey
Adupt �}• Council: Date
�(" rt�i�e�d Yas� • )• Co �:�1 Secretary BY f
��� _
Appru.�•d t , . • �•or. Date :�,'' �� ' ��` APP�oved by Mayor [or Submission to Council
�� --- -- - ------ - • BY ��e��r�-{�
•,- 4 _- r' , '�
. • . , . �, G
. ... .. . .. . ,.. ._... .... ._ _ .....�...�..�. -
. .. . . .._ _. . _ �
. • .
, . � 7 `f"J ��
I
• AFFIDAYIT OF' !'UBI.ICATION
_ ���22
.•"1'ATE OF MINNESOTA �
� .UUI�'TY OF RAMSEY � � " '
� (�eri corrt an
NOTISICATION O/ .�.��c J 6 , being
� MEARING YVI swo�rn on oath, savs: that he is, and during
� QTY OF SAINT PAUL IIONi� Y 7
'"`NO K!IS NERESY 61V- 8I� times herein stated has been, Clerk of the
�EN W�rUBLIC ME4RING IO
� a^��••�M��+���«� Northwest Publications Inc. publisher of the
TNE GIT�OF y►INT PAUI i� � f f
CouncN C��n�weL TMN Ftoer,
� «ti,,.N.„w.,,K .��,.. newspaper k�own as the St. Paut Dispatch, St.
""`°' °" '�""'°'�""h P�ul Pioneer Press St. Paul Sunda Pioneer
' lq4 N IR'M i.T..Y0001M CI v
M Sa�M P�ul NONS�NG P�AN � � � 7
°"'"°°'° '" '°�°'°'"�""'" Press a newspaper of general circulation within
�n0 punwnl to t�e �pwrr� � •
"""''a`"'°"""`°'""'"' tht City of S� Paul and the County of Ramsey.
o.,w.s�.ow�..�ns �
' cArOM��►IC N AMenew» � - -
S�NUf�s lIT Vro�W�s Is MH.
•""•"^'""�°'�r•^e� That the Notice hereto attached was cut from
TMIf��1 proqr�m ny►iny. .
• °' °"""°•'"0 •' ""•`�•°• the eolumns of said newspap�r and was printed
� baM N fiMnp 1M�qul ho11
� °�u"°"��"""�""'"9°'"'" and published therein on the following d ates:
• .na mew.•t.�ecenN wnen.
�nd binilla MW f0 Neanc�In� �
� iCpuitMi0ly tMiNYCf10/1 Or ft �
. b.aut�+ion a owe«wqre muF `
n-bm�w�ar�iny ew«owmna ��� d8y Oi' fan��at+r � 19 $Q_
N T1103�ifflllf�ry Oflillb 1�1 �
� anA wO�M fe fly conemons o1 �
++�e en.o�e.w7C.�eewemy...
, 4Wr�Tene f�t 1MC�M Ow�Wp (�8 of , 19
. •�+ous�eq Y��e�nA w�0utr a _ . .
puDIK�MNny on fa10 Mouf�nq y
Phe pnw lo procNdlnp wdf�
� f1s�Vwovd�n0�Ouvhon.
THE CITV OF ,.,„,� day of , 19 -
• PAUI NOU51N6 PLAN s�M►ny.
fN��tllf Tih?R COntaillfd�111
� yece�on qtC.6� oI Mlnnewf� • .
Stiw�es�n0 wppwrl�q aoea^ �9V O` �� � .
menn�r��wilaW�ro��nswa; � � �
lio�er�nr lnreres�W wnon In
ine oN�ces el fM CNy�CINt,�
Room 3M,dh H�n,�nd ot�n��
Rlnt+r��Olvlsl0�. D�p1rtr11M1 �1a� OL' ' �(� �—
o� P�snninp �nd Econom�e �J l 7 ,
� DevtloDm��1, lhe flppr. CIry
Msll Aentb.25 W�st Ro�►tb - �
S�rse1. Sa,nf Paul. M,��.,o�, day of _ , 19
au��np.�y�yr Du+in�as nours, • .
MEA NG M Clly COYIICIISfM I .
cows�o�r fM Prov�sqef o1 s��d (� �
��,��� P�.�.��.� ��o day of � 17
eleOS 1n 1M Clry. (0)IIOr fM �
Mouslnp Ol�n m�NS f��a�
ne�os aod tn� rrNenoes te p�
use0 fo carry eu�tnt Mouslny . .
Pun. (c) tarptl �r�p wltMn �
M�Clff.Iw us�o/��CA fuM � � -
. mefMO. lA)f!M I�nandnp P�O � �•...\ l�,'
yr�ms incluO�A In fM Ne�s1nY
F4n.(d►M numoer aro qw�f• - \ , �_� \__� - � t� •��
- ficN�on of tend��s �by�pl� to -
'� � O�rbtipa�e{e Inf p�Op�an,lU `\ .
fM l4�1m�1��TOYA►OI Tpf�-
pspe Ioana to D�m�0�x ur-
� `""°°•"°°''°�°"w°°^8,ro Subscribed and sv�orn to before me this
w�uueo�e ro.woq..rn+.�v►
rn�1�0OS�ol mon�fo�inq P�s A� ,
. 9r�m�mp,emrm�r�on W Wrt1- G day ��f J�n� 19 _..BQ
. uweA lnl�n�iom�ms►r�nw �
uwc�ry a Me Ciry�o momror .
_ .. �nO lYDeivlf!MVYna fiMnO�' .. � .
proqr�ms, p!tM cosl. 1nt�ua� . . .
� Inp�OmmyM�bv�co�l�lo fM• � �
. . . CI►Y Q�an�M��p�of Iaw tn�' � . � ���
pf0y f�Tf rll) TNI fM 1��Wf,
� 01 10� i110 TOOMOM I/KOTt. � �
� Um�bes in Me Gey. (k!otMr: �-l� L.•--� ' �-1-� :-1��
� re�er�M m�ntrs�n0 eonc�ms �
_ ; ..�.���o +o n,. ►�o�,y�y v�.� Notary• Public
_ �ne proqnmf p�opos�A M�rr� � �
- •-. ey. �n0 lll `+MtMr to�oop�
-- a�iA Movylny P��n wIM W vw1M; . � .
� °""'"`�'"""" ' R maPy Cc�unty, Minnesota
�.:;.
��'t.�- ;� AT SAIO PUSL.IC HEAR-I �
ING NI Iminilp p�f�pns T�y .
�' • •Ope�r�e0 Oe�e��a uOOn iM
�� � ���^0 P4n.�ny ol In Dr0•1- ' My commission expires _Mai'�?� 7-'� I9 -B2
� HOny,�n��rnenOrt»nq tDNNO f
- �n0 upon�.npnai f�10 CITY OF • � -
SA�MT PAUI. Mp�131NG PIAN ' � � �
�,`�� snou�d or anoub not N aAOp�M . .
..�{�:�.. er rne U�r Covncu. � . � • '
��� � �- �n o.tm�2�rn e�y of J►nwry, :
r'�-!�': ROSE MI�(,CITr CIERK , � �
.�•=.' ]w C�er�.�u ' •
'"`:�":.=^ S��n�Ps�i.M�nnnoy SS10't '
=a="v'�-�Ii'� p�qtOr�tCR An 7t M)q
`_'!<'Y-:�.c
.�:;y4{?;1.,v . .
. �� I=��., , . � .
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�
STATE OF ,�1TNNES4?A )
Coun.ty o 6 Rama ey I a�. - "
CITY OF SAINT PAUL ) '.
I, ........��g.M�u... ..... ........ .... ......Ci.ty CL¢Jcft
06 .the Ci,ty o� Sa.i.n.t Pa,u,L, Mi.nne,�o.ta, do he�c.e6y ceh.t,�6y .tha�
I have companed #he a�tccched copy o� Caunc,i,.L F.i.ee AIo..2T4524
ae adap#ed 6y �ite C.�y Counc.t.e ..�r�h,6�....... .......t98Q .
and appnoved by �he Mayon ... . ...March.7�........... ...19$Q.
� w�i,th �ite o�►.i.g.�naC �he�ceo6 on S.i,�e .�n nry o��i.ce.
.. ... ... .... . . . . ....... ...... .. ... ........ ..................
... .. .. . ..... . . . .: . .. ....... .. ... . .. ........ .... .. . .........
� _ . . .. .. . .... ... .. ... . .... . . .. . . .. .. .. .... .. .. ...... . ........
.... .. .. .... .. . ..... .... .. ... . ........ ... ...... . .. . . ........
..... . . . ..... .. ..... ........ ..,... .. . . .. ........ .. . . .........
' ... . ... .. .... ... ............... .... .... .. .. ... ... ... ........
. .. .... .. ..... .. .... ...... . . .. . . . .. .. . . . ... .. .. .... .. .... . �.. .
••. . . ....... ... •... .. ..... . .. . . .... . . . . ... ........ . . ... .... .
.... . . . ..... . . . .... ....... . .. . . . .. . . . . . . . . .. . . .. . . . .. .. .. . ..
.. .... .... ... . .. .. .. ..... . ... . . ... .. ... .. .. . .. ... . . . .... . . . .
T �un.#he�c cen.ti.�y .tha,t ac�„i,d copy .i.a a �iu,ce and co�vicec.t co,
o S a cu.d on,i.g.i.na,e ccnd �he who.2e �heheo�.
WITNFSS my hand and .th.e dea,e o� �he Ci�y o� Scu.wt Pau,2,
Mtnn. xh<,d 30th � o e.pt .A fl. 19. �A.
. .. . . . . . . . . . ....... .. . . . .
� � �
. .. ./ . ./.�;� ,!! . .. . . .. . ... . .
Ci-ty�CZFhk.
._ . �, Y � � i�r .��� i .r '1. t"A _ .._.. ...� �.�,;.,-a
� . - M�Yo:: ` U L File NO. �
f At�y. � Co�ncil Resolution
�
�� ��
Prrsented By ��� � ��•�•
• Referred To Commi ttee: Date
Out of Committee By Date
RESOLUTION APPROVING HOUSING PLAN "
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C
AND AUTHORIZING SUBMISSION OF THE PLAN
TO T8E METROPOLITAN COUNCIL FOR REVIEW
WHEREAS, Minnesota Statutes, Chapter 462C (the "Act")
provides that a city may develop and administer programs of
making or purchasing mortgage loans to finance the acquisition
of single family housing by low and moderate income persons
and families anywhere within its boundaries; and
WHEREAS, the Act further provides that a city may also
plan, aclminister and make or purchase a loan or loans to finance
one or more multi-family housing developments within its
boundaries; and
WHEREAS, the Act further provides that prior to the imple-
mentation of any such programs the city shall develop a housing
� plan as required by Minnesota Statutes, Section 462C.03 (the
"Plan") ; and
WHEREAS, at the direction of the Mayor, the Planning and
Economic Development Department has developed and submitted a
"City of Saint Paul 462C Hausing Plan, " dated January 26, 1980,
and revised City of Saint Paul 462C Housing Plan documents under
date of February 29 and March 6, 1980, with t'_:e revised sections
identified in Exhibit "A" hereto attached; and
WHEREAS, all references to the Plan in this Resolution shall
mean the City of Saint Paul 462C Housinq Plan dated March 6, 1�3a0;
and �
COUN(:IL1iEN . . .
Yeas Nays Requestcd by Department of:
Butler � In Favor ����
Hozza
Hunt �
L.°,vine A gai n�t BY
Maddox
Showalter
Tedesco Form Approved by Cily Attorney
Aouplcd h�• Cuuncil: Date
Ccr:�(��•d F':���cd by Council Secretary By _ _,_�Y
� B'.
A,,pru.�•d b� ti1a�•or: Date _--. Approved by Mayor for Submission lo Council
B� --- — --- — BY
�ENN
�`E (� I '1'Y U�'' ��1 I 1'T I�A lI L Council �...���
i�a/w�E�+T �
.�rOw . . Fl1C N .��_
R Council Resolution
Presrnted By '�����
• ' $�-��-
rvv��
Referred To Committee: Date
Out o! Committee By Date
-2- - ..
WHE�tEAS, the Act requires that a public hearing be held on
the Plan after one publication of notice of the hearing in a ,
newspaper circulating generally in the city, at least 30 days
before the hearing; and
WHEREAS, public hearing was held before this Council on
March 6, 1980, after publication in the Saint Paul Dispatch-
Pioneer Press on January 26, 1980 of notice of the hearing as
required by the Act, and all persons who appeared at the hearing
were given an opportunity to express their views with respect to
the Plan; and
WHEREAS, the Plan must be submitted for review to the
Metropolitan Council pursuant to Minnesota Statutes, Section
462C.04;
• NOW THEREFORE, BE IT RESOLVED by the City Council of the
City of Saint Paul, as follows:
1. The Cit�y of Saint Paul 462C Housing Plan, dated
March 6, 1980, is hereby approved and adopted with the
revisions therein incorporated.
2. The mayor is :ereby authorized and directed to
submit the Plan to the H9tropolitan Council for its review
and comment. The comments of the Metropolitan Council, if
any, shall be submitted to the Council for its consideration.
COUNCILI�IEN Requested by Department o(:
Yeas M AHON N ays �
�_ Department of Planning & Economic De
l�� tn Favor
Hunt �
lxvine _ Against BY
Maddox �
Showalter �,,�AR 6 • 1984
Tede Form Approved by City Attorney
� nJuptcd _ Council: Date �
Ccrt .�r•d F'.,ss y Co ci1 Secjetary By �
E;.. . —� � �,,,,
Appr��r� ��y �tavot: Dat —
MAR 7 �98� Appro 17ayor for Subm's o to Council
, C L'r,. � /
B} _�-�-�-`'+ '' . �'L__ _ BY _
- �` Pu�isxEO MAP, 1 5 1980
� TABLE OF C011TENTS
. 6�:,,.,�� �'�
�i�1 y �+'�" •,j �5
i
1 .0 INTRODUCTION •
2. 0 HOUSING NEED 2
. RENTAL OPPORTUNI7IES
2.2 HOUSIN G RENABILITATION 2
.3 SMALL NOUSING UNI7S � 2
2.4 FA�4ILIES AND LARGE FAMILIES 3
.5 lOW AND MODERATE INCOME HOUSEHOLDS 3
2.6 MIDDLE AP�D HIGHER INCOME HOUSEHOIDS 5
2.7 ELOERLY AND HANDICAPPEO HOUSENOLDS 5
3.O PROGRAM OBJECTIVES � 6
3. REHABILITATION FOR RENTERS 7
3.2 CONSTRUCTION OF NEW RENTAL HOUSING 7
3.3 MULTI-UNIT REHABILITATION FOR OWNERSHIP 1
3.4 NEW t�ULTI-U�IT OWNERSHIP OPPORTUNITIES 8
.�5 REHABILITATION OF SINGLE-FAMILY HOMES 8
3.6 SINGLE-FAMILY AND C00?ERATIVE t40RTGAGE LOANS 8
_ 3.7 ACQUISITION OF SINGLE-FA��ILY HOMES FOR LARGE 8
FAMILIES
• . - .
4. 0 NOUSING POLICIES TO BE � 0
IMPI_EMENTED 4.1 POLICIES TO BE DIRECTLY IF1PLE��fENTED 10
. HOUSING SUPPLY 1p
� 4.1 .2 AFFORDABLE HOUSING 10
� 4. 1 .3 HOUSING ASSISTANCE 12
4.1.4 NEIGHBORHOOD QUALITY 13
4.2 POLICIES WNICH WILL BE INDIRECTLY Ih1PLEt�ENTED 14
4.2. NOUSING SUPPLY 4
4.2.2 AFFORDABLE HOUSING 14
4.2.3 HOUSING ASSISTANCE l5
4.2.4 �JEIGHBORHOOD QUALITY ' 15
4.2.5 HOUSING OPPORTUNITY 6
5.0 BO�D FIt�ANCED HOUSING �
PROGRAP�1 POLICIES 5.1 INCOME OF HOUSEHOLDS TO BE SERVED ' 17
5.1 .1 INCOME LIMITS
5.1 .2 MEETING THE NEEDS OF LOW & h10DERATE 18
INCOME HOUSEHOLDS .
' 5.2 PURCNASE PRICE LI��IITS 18
5.3 SITE LOCATIONS 19
5.4 DISPLACEMENT 19
5.5 RENT REGULATORY AGREEMENT 19
! 5.6 CONDOMINIUM CONVERSIONS --' � '! 19
i '
. TABLE OF COyTENTS {COt�TINUED) .
i �
5.7 DISCRIh1INATION AGAINST CHILDREN IN RENTAL 9
NOUSING
5 8 NEALTN, SAFETY, AND ENERGY REQUIREMENTS 20
5 9 QUALITY OF PROJECTS - - 20
5.0 FINANCING METH005 2
6. MULTI-FAMILY HOUSING DEVELOPMEN7 2
6.1 .1 NEW CONSTRUCTION AND REHABILI7ATION OF 2
MULTI-FAMILY RENTAL PROPERTY
6. .2 lARGER RENTAL PROJECTS 2
6.1 .3 NEW CONSTRUCTION AND REHABILITATION OF
MULTI-FAMILY OWNER-OCCUPIED PROPERTY 22
6.2 NEW CONSTRUCTION AND REHABILITATION OF SINGLE- 2
FAMILY PROPER7Y
6.2.1 ACQUISI.TION OF SINGIE-FAt�IILY PROPERTY FOR 22
LARGE FAMILY RENTAL
6.2.2 NEW CONSTRUCTION AND ACQUISITION AND 2�
REHABILITATION OF SINGLE-FAMILY OWNER-
OCCUPIEO PROPERTY
- 6.3 PORT AUTHORITY & HOUSING & REDEVELOPMENT 2
AUTHORITY
� •
7.O ADMINISTRATION 2
.1 DEPARTMENT OF PLANNING AND ECONO��IIC DEVELOPMENT 24
7.2 ADMIt•IISTRATIVE PROCEDURES AND COSTS 24
.2. It4PLEMENT TION METHODS 25
8.0 APPENDIX 27
8.1 MULTI-FAMILY RENTAL HOUSING DEVELOP��IENT PROGRAt�I 27
8.2 BELO�A htARKET INTEREST RATE HOME MORTGAGE PROGRAM 28
8.3 BELOW MARKET HOME REHABILITATION LOAN PROGRAM 29
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ii
. 1 .0 INTRODUCTION. �
•
As the availability and affordability of private market
financing for the construction, purchase and rehabili-
tation of housing diminished in the 1970's in the face
of increasing need and demand for the provision of new .
housing and ,the upgrading of the existing housing stock
within the� City of Saint Paul , the City and its Port and
Nousing and Redevelopment Authorities took action to
meet this need for mortgage credit by issuance of generat
obligatian and revenue bands under authority of several
statutes, including Chapter 260, Laws of Minnesota 1975,
authorizing the City to undertake housing finance
programs funded by bond proceeds.
Minnesota Statutes 1979, Chapter 462C, made the continua-
tion of these programs after January, 1980 dependent upon
the preparation, review, and approval of a City Housing
Plan which, among other things , identifies the housing
needs of the City and the methods and financing prograrns
to be employed to meet these needs. After approval of
the Plan the total obligation of mortgage loans financed
by bond issue under Chapter 462C is �160,345,000. (Based
� on 1978 t�letropolitan Council population estimate of
• 270,690). . . . _._ _ �
Based on the needs �identified in the Housing Pian and
the programs �which the City has developed, bond financ-
ing should be used in St_ Paul over the next three years
to secure the rehabilitation of multi-unit housing,
particularly rental housing; to expand the supply of
rental housing through new construction; to increase
opportunities for home ownership and to facilitate sub-
stantial rehabilitation of deteriorated single�family
homes. •
• "
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2.0 HOUSING NEED �
•
Based on survey and analysis of the current housing stock
and demographic data of St. Paul , the following housing
' needs have been identified.
2. 1 RENTAL OPPORTUNITIES 7he supply of rental housing is decreasing
at this time for several reasons. Deconversions of sub-
divided houses to single-family residences, conversions
of multi-unit rental structures to condominiums, and
• demolition of substandard apartment buildings all act to
decrease the supply of rental housing. Replacement of
rental units through new construction is not keeping pace
with the loss of units because of the cost and in un-
availability of private financing.
In addition, the lotiv multi-unit vacancy rate for the
metropo�itan area in general (6.1� in 1979) and St. . Paul
in particular (4.3� in 1979) makes it crucial for St. Paul
to preserve and expand rental opportunities to meet the
, strong demand for rental housing. (See Inventory of
Housing Needs , Departrrent of Planning and Economic Develop-
• ment, November, 1979, Pages 10-11).
,
2. 2 t�OUSIVG REHABILITATION The City's 1974 Survey of Housing Conditions indicated
that housing conditions in St. Paul deteriorated between
the time of the 1960 Census and the 1974 survey.
Although there is evidence that this process of general
neighborhood decline is not continuing, there remains
an ongoi�g need for rehabilitation of the housing s�ock
throughou� the City. According to th�e Housing Assistance.
Plan, approximately 30,000 of the 112,508 housing units
in the city are in need of rehabilitation. (Housin9
� Assistance Plan approved May 25, 1979. Further informa-
tion from the 1974 survey is contained in the Residential
Improvement Strategy, St. Paul City Planning, +^
February, 1977. jr" �
One particular rehabilitation need �,�hich has not received
emphasis in the past is rehabilitation of multi-unit
rental structures. This is a critical need in neighbor-
hood revitalization areas and is needed to some degree
in many older portions of the City.
District 8 has the largest concentration of old�r multi-
� unit structures. As an indication of the level of multi-
unit rehabiiitation needed there, in August of 1979
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