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272973 WklI7E - CI TV Cl.£RK PI K - FINANCE F� �if�,ARV {.yDEPARTMENT GITY O SAINT PAUL Council � f (�� BLUE -MAVOR File NO. City Attny. HRA S'°w?'7 tb �� eOrdinance N 0. Presented By Referred To Committee: Date Out of Committee By Date PRELIMINARY RESOLUTION AUTHORIZING A BELOW MARKET INTEREST RATE MORTGAGE LOAN FINANCING PROGRAM UNDER CHAPTER 260, LAWS OF MINNESOTA FOR 1975 AND MINNESOTA STATUTES, CHAPTER 462A AND CITY OF SAINT PAUL ORDINANCES 15975 AND 16504 AND,AUTHORIZING A SECOND ISSUE OF REVENUE BONDS WHEREAS, by its Resolution, Council File No. 272624 adopted March 12, 1979, the City Council authorized the undertaking of a below marlset interest rate mortgage program and financing thereof by a Home Ownership Mortgage Revenue Bonds Issue; and WHEREAS, implementation of said program has been undertaken with sufficient experience developed to demonstrate the need and demand for such mortgage fiaancing program exceeding the 'approved program"limit; and _�- �::.�.�----� _T . ;,;;� WHEREAS, the City de.sarers. t�o ..maka �aYailable additional belo�a marke� intc��st �a1�e mo�tgage 3�0a�� t� �ak� pos$ib�.e the purchase� au�l rehabili�a�io� of homes w��:� �i�e ge�g�aphi� limits af the City upon terms and conditions not otherwise generally affardable te such peYsons in the private mortgage market; and WHEREAS, the Ci�y �hereby desir�s to encourage and facilitate the successful redevelopment of various blighted residential areas within the City; and WHEREAS, the Mayor and staff of, the Depa�rtm�nt of Planning and Economic Development have proposed that the City issue additional revenue bonds pursuant to Chapter 260, Laws of Minnesota for 1975 �the "Act") , and Minnesota Statutes,('Chapter 462A") , and City of COUNCILMEN Requested by Department of: Yeas Nays Butler Hozza [n Favor Hunt ' Levine Against BY Maddox Showalter Tedesco Form Approv by City Attorn y Adopted by Council: Date Certified Passed by Council Secretary BY � By , Approved by Mayor: Date Appr Mayor for Subm' io o Council By By WHITE -�CITV CLERK N�^��^ P1NK - FINANCE �O �� j C�NARV +�DEPARTMENT GITY O SAINT PAUL COUIICII M � i BLUE -MAYOR File NO. •°L°V"(l b � P, Ordinance N 0. Presented By Referred To Committee: Date Out of Committee By Date -2- Saint Paul Ordinances Nos. 15975 and 16504 (the "Ordinance") , to finance a below market interest rate mortgage loan program; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul as follows: 1. That the Mayor and Department of Planning and Economic Development, in consultation with the City' s bond counsel, Briggs and Morgan, the City' s fiscal consultant, Spririgsted I�icorporated, and such underwriters as the Mayor and staff of the Department of Planning and Economic Development shall select, are authorized to formulate a second issue of Home Ownership Mortgage Revenue Bonds to provide addtional below market interest rate mortgage loans (the "Program") as part of the housing program authorized in the Act, and Resolution Council File No. 272624. 2. The Program may be further financed by a second issue of revenue bonds authorized by the Act, Chapter 462A and the Ordinance. The aggregate par value of such second issue of revenue bonds shall not exceed $75,000,000. 3. Mortgage loans made pursuant to the Program shall be made only if a determination is made by the City, or on the City' s behalf, that financing is not otherwise available on terms and conditions which are affordable to the mortgage loan applicant. 4. The Program provides that such revenue bonds shall be payable solely from the revenues of the Program, and shall not be a charge on the credit or taxing power of the City, within the meaning of any constitutional or statutory limitations. COUNCILMEIV Requested by Department of: Yeas Nays Butler Hozza [n Favor — Hunt Levine Against BY Maddox Showalter Tedesco Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By By WH17E - CI TV CLERK PINK - FINANCE COIlI1C11 (��{ CSNAq•V -rOEPARTMENT CITY O SAINT PAUL J / 91.UE -MAVOR File N0. � �--+ R �� -��i � J...rr�� l. �—� � c Ordinance N�. Presented By Referred To Committee: Date Out of Committee By Date -3- 5. The Program complies in all respects with the aforesaid Act, Chapter 462A, Ordinances Nos. 15975 and 16504, and Resolution Council File No. 272624, as they may from time to time exist and be amended, and with the regulations promulgated thereunder. The Mayor is hereby authorized to formulate such additional criteria for the Program as are consistent with the Act, Chapter 462A and the Ordinances and Resolutions. Such criteria may be contained in the various agreements� and other documents relating to the ��cqr�� revenue bond issue for the Program. 6 . The Mayor is authorized to negotiate with the underwriters a b�,nding written commitment to sell, to such underwriters, the revenue bonds issued to further finance the Program, and to retain� Briggs and Morgan as bond counsel for the issue. 7. The indentures, agreements, and other documents in connection with the Program and such �evenue bonds shall be submitted to the Council for approval prior to the issuance of such revenue bonds. 8. The City may contract with such private parties as may be necessary to effectuate the Program, and to make use of existing lending institutions and their staff. COUIVCILMEIV Requested by Department of: Yeas Nays � H�a In Favor Hunt Levine � Against BY Maddox Showalter Te MAY 1 7 19�g Form Approved City Attorn Adopt y Council: Date . � tified Pa e y Counci ecretary BY � � App e by Mayor: D t � MAY 1 g 1979 Ap ov d y Mayor for Subm ssi n o Council By �EA MAY 2 6 t979 . OM O1: 12/I975 ~ Rev. : 9/8/76 �.�'..,�� EXPLANATION OF ADMINISTRATIVE ORDERS, � Item #25 Date: May 16, 1979 May 17 , 1979 City Council Agenda T0: MAYOR GEORGE LATIMER FR: Gary Stout /��/,� � RE: BMIR Program Subsequent Issue ACTION REQUESTED: Execution of the attached Resolution for introduction to the City Council PURPOSE AND RATIONALE FOR THIS ACTION: The present loan commitment experience and demand projections indicate the desirability of authorizing a second issue of revenue bonds to finance the BMIR Program of up to $75,000,000. The lead time for such issue (60-90 days) and the present loan commitment rate indicate that a hiatus in loan fund availability will occur, unless immediate steps are taken authorizing a second revenue bond issue. ATTACHIKENTS: Resolution