274036 WMITE - CITV CLERK
PINK - FINANCE G I TY OF SA I NT PAU L Council ������
GANARV - DEPARTMENT t..
BI.UE - MAVOR File NO.
.n il Resolution
Presented By
0
Referred To Committee: Date
f Out of Committee By Date
WHEREA5, Merriam Park Neighborhood Housing Services has made a
major contribution to the revitalization of Saint Paul
neighborhoods through its present program; and
WHEREAS, lending institutions have made a major commitment to
neighborhood revitalization and to the lending needs
of Saint Paul households through the Neighborhood Housing
Services program; and
WHEREAS, it is a policy of the City to work toward revitalization
in cooperation with private investors and neighborhood
residents; and
WHEREAS, Neighborhood Housing Services has determined that expansion
of its program into additional neighborhoods within the
City is possible and can be pursued at this time;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City
of Saint Paul supports participation of the City in the process
to expand Neighborhood Housing Services in Saint Paul as
outlined in the NHS Expansion Development agreement and
authorizes the Mayor to sign this agreement.
COUNCILMEN Requested by Department of:
Yeas M��AHO(�, Nays
a�= C��
�, � [n Favor
Hunt
Levine � __ Against BY —
Maddox
S ter ��( 2 Q 1979
Tedesco For Approved b City A or
Adopted by Council: Date
Certified P� • d by Cp cil Secretary BY �
gy, /,1 �
t�pp o by iVlavor: ate --��g� ? 3 1979 App by Mayor for Sub 'ss' n to Councii
By — BY
�'U$LISHED Q F C �. 1979
�REC� �� �
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WHEREAS, Merriam Park Neigi�borhood Housing Services has made a major contribution
to the revitalization of S�int Paul neighborhoods.through its present �rogram;
and .
WHEREAS, lending institutions have made`� major commitment to neighborhood
revitalization and to the lending needs of Saint Pau1� households through the
P�eighborhood Nousing Services program; and
WHEREAS, it is a po�icy of the City to work toward revitalization .� cooperation
with private investors and neighborhood residents; and
WHEREAS, Neighborhood Housir�g Services has determined that expansion of i�s program
into additional neighborhoods within the City is possible and can be pursued at
this time;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Saint Paul
supports partic�ipation of the City in the process to expand P�eighborhood Nousing
Services in Saint Paul as outlined in the NHS Expansion Development agreement
and authorizes the Mayor to sign this agreement.
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N H S EXPANSION DEVELOPMENT AGREEMENT ,����� ����
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�This agreement, made between the National Neighborhood
Reinvestment Corporation, a non-profit, non-government
Corporation chartered by the Congress (Neighborhood Re-
investment) , the City of St. Paul , the Merriam Park NHS,
Inc. , and the Twin Cities Neighborhood Housing Services,
Inc. provides for the expansion of the NHS program in the
City of St. Paul to additional neighborhoods in accord-
ance with the following provisions:
I. NHS PROGRAM EXPANSION
The Neighborhood Reinvestment Corporation will undertake to
assist the Merriam Park Neighborhood Housing Services, Inc.
to expand subject to the considerations and conditions
herein outlined:
A Neighborhood Housing Services (NHS) expansion includes
the development of a working relationship between residents
of a specific additional neighborhood(s}, the current NHS
residents, and a group of financial institutions and other
private sector groups in cooperation with city government.
It involves the establishment of a Revolving Loan Fund
which would be controlled by the NHS. The NHS would assist
residents of the neighborhood(s) to improve their homes and
bring them at least to minimum code standards, by providing
counseling, assistance in dealing with contractors, referrals
to private financial institutions, and in cases where the
homeowners are unable to meet commercial credit standards,
by providing direct loans at flexible rates and terms from
the Revolving Loan Fund. ,
II . DEVELOPMENTAL PROCESS �
The expansion of the Merriam Park NHS will require a careful
process which builds upon the strength of the existing NHS
and the support it receives from the community, the City,
lending institutions and other private sector interests.
In cooperation with the District Federal Home Loan Bank,
the District Federal Reserve Bank, the Federal Deposit
Insurance Corporation, the Office of the Comptroller of
the Currency, the Administrator of the National Credit Union
Administration, and State bank and savings and Loan
supervisors, as appropriate, the Neighborhood Reinvestment
Corporation will help convene financial institutions to
reaffirm their commitment to the NHS and obtain their interest
in the program expansion. The Neighborhood Reinvestment
Corporation also will assist in involving senior officer
level representation of local lending institutions and will
attempt to extend the base of support to include nonparticipating
financial institutions and other private industry, if any.
Neighborhood Reinvestment will conduct a workshop program as
part of the process in the expansion of the Merriam Park NHS.
Expanding the Merriam Park NHS to other viable neighborhood(s)
involves a careful process to reaffirm the existing work
relationships between the community, government and the private
sector and to build new relationships crucial to the expansion.
The expansion process will require the involvement of
representatives of the proposed expansion target neighborhood(s) ,
representation from the. lending community and other private
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sector groups, representatives from the existing NHS partnership
and from City government. The workshop process will be adapted
to the needs of the expansion target neighborhood(s) and local
institutions and situations. A committee structure will be
formed to work out the details of organization, funding, staffing,
neighborhood priorities, etc.
Once the NHS Corporations have been restructured to meet their
new requirements, Neighborhood Reinvestment will conduct Board
Orientation sessions as appropriate and be available for technical
assistance.
Neighborhood Reinvestment estimates nine to twelve months of
developmental work will be necessary before the expanded NHS program
can be developed and operational . This time period is based on
past experience; failure to complete the NHS expansion developmental
process within the estimated time period shall not constitute by
itself a breach of this agreement.
III. ROLE OF THE CITY
City representatives shall work closely with the developmental
program and participate in decisions on reinvesting in the selected
neighborhoods.
1 . The Neighborhood Re�nvestment Corporatlon w111 mainta�`n
liaison with the C1ty during the deyelopmental p1^ogrdm.
Appropriate City Staff inembers shall participate �in tFie
Workshop activities and commlttee meetings.
2. The City agrees to provide City staff, resources and
data gathering services to assist in the expansion
and neighbohrood selection process.
3. Expansion of the NHS will require improvements to public
facilities and more effective city services to support
rehabilitation efforts in the new neighborhood(s).
The City will undertake such investments as a major part
of its role in the partnership. It is understood that
specific improvements and services will be determined
with the residents of 'any new NHS area, and programed
according to what can reasonably be coordinated with
districts and City community development programs
and accommodated within available resources.
4. The City will provide code inspection and enforcement
services according to goals and implementation
strategies developed with the new neighborhood(s) .
During the developmental program the possibility of a
sensitive, comprehensive and systematic enforcement
program will be explored.
5. The City agrees to assist in raising funds for the NHS
revolving loan fund adequate to the needs of the
neighborhood(s) .
IV. ROLE OF NEIGHBORHOOD REINVESTMENT
Neighborhood Reinvestment will assist the Merriam Park NHS in the
program expansion by managing the developmental process in a
cooperative working relationship with the existing NHS. Neigh-
borhood Reinvestment will provide travel , administrative and office
expenses for its staff involved as well as provide funding for the
workshop expenses. In addition, Neighborhood Reinvestment will
provide a $35,000 grant as seed money for the expanded Revolving
Loan Fund.
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V. ROLE OF THE MERRIAM PARK NHS
It is the intent of the parties that the NHS program developed
under this agreement will expand the existing NHS into
additional neighborhood(s) .
The expansion will involve a restructuring of the existing M.P.
NHS Corporation, its Board of Directors and its committees to
involve full partnership participation by residents of the
expansion neighborhood(s).
The existing NHS program will serve as a resource in the
developmental process, based on its successful track record and
agrees to provide technical assistance in regards to administrative
procedures, loan packaging, and program operations to the expansion
effort.
It is the intent of the parties that the decisions, actions, and
commitments of the parties shall not adversely affect the existing
NHS program in Merriam Park.
As a part of its role in the expansion, the Board of the
Merriam Park NHS shall appoint an expansion committee whose
decisions shall be subject to review and approval by the Board of
Directors.
VI . ROLE OF THE TWIN CITIES NEIGHBORHOOD HOUSING SERVICES, INC.
The Twin Cities Neighborhood Housing Services, Inc. will use its
best efforts to provide the required additional funding for the
the operating budget and revolving loan funds for the expanded NHS
program in Saint Paul . The expansion will involve a restructuring
of the existing T.C.M.H.S. corporation, its Board of Trustees and
committees to accommodate changes brought about the expansion process.
The TCNHS and its individual members will serve as a resources
during the developmental process.
VII . TERMINATION DUE TO ADVERSE FACTORS
Adverse factors could arise which would make the development of
an NHS expansion program impossible. These include the inability
to retain the cooperation of a sufficiently large number of financial
institutions to support the extended program, determination that
there were not sufficient public or philanthropic resources to
develop adequate revolving loan funds, or the development of neigh-
borhood antonism to the program or political opposition to it. In
the event such conditions arose and could not be overcome, Neigh-
borhood Reinvestment would inform the NHS and the City.
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IN�WZTNESS WHEREOF, the partjes hereto haYe caused thls agreement
to be executed as of the date first above written.
Twin Cities Neighborhood Housing Services, Inc.
by
res� ent
Merriam Park Neighborhood Housing Services, Inc.
by
Presi ent
NATIONAL NEIGHBORHOOD REINVESTMENT CORPORATION
by
Wm: A. Whiteside
THE CITY OF ST. PAUL, A MUNICIPAL CORPORATION
by
ATTEST:
C�ty C er
APPROVED AS TO FORM:
City Attorney
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