273021 WHITE - CITV CLERK [[[�''''�� ///���� �
.. �NK - FINANCE COUIICII ��� �
:� � ,NARY - DEPARTMENT GITY OF SAINT� PAUL File NO. �
, UE - MAYOR
�� � .. Council Resolution
� �
Presented By �/
Referred To Committee: Date
Out of Committee By Date
RESOLUTION AUTHORIZING THE FINANCING OF
A SECOND BELOW MARKET INTEREST RATE
MORTGAGE LOAN PROGRAM UNDER CHAPTER 260,
LAWS OF MINNESOTA FOR 1975 AND MINNESOTA
STATUTES, CHAPTER 462A, AND AUTHORIZING
THE ISSUANCE OF SINGLE FAMILY MORTGAGE
REVENUE BONDS TO FINANCE THE F'1�OGRAM.
BE IT RESOLVED by the Council of the City of Saint Paul,
Minnesota as follows:
1. The City Co�ncil has received a proposal from Piper,
Jaffray & Hopwood, Inc. and Dain, Kalman & Quail, Inc. (the "Managers'")
that the City undertake a second below market interest rate home
mortgage loan program (the "BMIR Program" or the "Program") as herein
. , described, pursuant to Chapter 260, Laws of Minnesota for 1975, and
Minnesota Statutes, Chapter 462A.
2. The Program will provide below market interest rate
mortgage loan financing to persons of low and moderate income purchasing
or rehabilitating homes within the geographic limits of the City and
persons purchasing or rehabilitating homes within redevelopment areas
within the City. Such financing shall be available on],y upon deter-
mination by the City, or on the City' s behalf, that such financing, on
the terms and conditions currently available in the private mortgage �
market, is not affordable to the applicants.
�. The Program will be financed from the proceeds of Single
Family Mortgage Revenue Bonds (the "Bonds") to be issued by the City.
The City shall pledge the revenues from the Program for the security of
and payment for the Single Family Mortgage Revenue Bonds of the City
(the '°�onds") in accordance with the form of Indenture of Trust (herein-
after referred to as the "Indenture'°) referred to in the Contract of
Purchase identified in paragraph 5 hereof.
COUIVCILMEN Requested by Department of:
Yeas Nays
Butler
Hozza [n Favor ,
Hunt
Levine - -- A gai n s t BY ' •����
Maddox
Showalter
Tedesco Form Approved b City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY � ,
g}.
/#pproved by Mavor: Date _ Approved by Mayor for Submission to Council
BY - – — BY --����`�-!� � ���/�--
_2^
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.I • ��.���� •
4. This Cour.��il, b� action take� o� :ia'-`c�! I6 , 1976 , and
G'ebr.uar=,� 13, 197� , promul�atec re�ulations ToY �Pe ir�qrarl, and
aat�►ozi•�.�d the ��ay��t_ i� ��rr�ulate ard deveio� �'�° cYiteria ior tizc�
"rocrara, :�rhich critcria raay Y�e contained ir. ��-°:==:��1;�s o� ��her_
d�cumerScs relatecl to tile Program.
5. A form of Contract of_ Purchas� b<• and b�t��reen the Ci�y
ar�c? the 2�Zanagers has been submitted to the Cc�*_:c�1 �cr approval. Th�
C�,��-�ract of Purchase identifies the Program a^.�:i?�is�raticn Agreemen�,
"•;ortc�age Oriaination and Sale Agr.eenents a.ra '`_o�L�a�,° Servicing
r�C_jtt:Cl1::�I1C �5� {COl1.Ei�:tZV�1V� ��1� �}��jl'�;?:�t�1�t�" � �:'_ �.'J:1_'=:?C�`,.i0I1 W1'L.CI tYl°
Proqram, and the terms th.�reof.
.6. �"t is herebv found, deterr:!ine3 a�d deciured tnat:
a. . � Tne �urpose 0�- �11� Program �_rJ� G�.�:.� 41!p el L��'.t there�f
��t�. 11 . be to pro�ote the pu�lic �ael.fare ��% -��ii1= -�uz�J..I1CJ7� ��roviE?.ing
;�:id nreserving an ade�ivate housing stoc� �•:��`�i:: tne City, by
j`"'v:'�.�.L?1� _!':__ t�1C- r:'i?cZ�l '1?.�.rZ�?.Cln �T!l� L?_�-r?'zj n's• �;r t.Y:? E�:,�'?��::�I1CS
no�:.:,i��� s�.ocY. ���ithin the City, by ma',:ir_� avaiia�le mortgar�
c-rec'•.ii fo� n�:a constructi_on, and by ma':-n� Gv�'-'cz�le m�r�tgage
cra:ii�` ��t ���aners and �o�.zld-be purchaszrs o� ho�sir�g �.n.its
up�,i �e-r;,t.� an� conditior:s not othe.r�vise G oY� �e t� s�,�ch
� '� • —� -/�.�.�L....�. r��"1 ".K'1 ' l .
�,. . _�.-. —.. _.._ -. ..0 . . .. ��.a r .. _�.n ..
1
f � � 11'.....:._1J��1.. :�N' 7 • ' 1't'"'�.rj ... /Y '�r`asZ.T Tf�,..
CJSl�ii:.'.1.3 U_S'�1. �'d�S�l "'t..lE .•• : � . . .. .
acailable in the private mortgage creai� -:a={e�,'
b. The Proqram will substantial?i� ass�st �he Ci�y in
r�habilitati.ng and improving variot�s bl_c�tac3. residen��al
ar.�as, the.reby ?m�rov�ng �nd ma�.n�a?,,,:�r. ;_`�� C�}y ' s tax. ba.�e
�r:d pr�venting or slo�aing the developF=��i='� o� blianted are��s;
c. ;he Program w�.?1 ben�fit only �e=s��as �urcnasi��ig
r�3i property located �,rithin the geogra��?c bour_dar���s of the
C=~�';
d. It is desirable that S�.��l�� �a-:=�� '•3o'-"-q��� Revenue
Y.onds, in an amount not to exceed $75 , GC? , CJO be issued by th�
CitsT uz�on the te:rms set for�Lh in thz Incen�ure and th� Cc�ntract
oi Purchase, under tne �rovisions of w?^?c: the �ity' s int�rest
�.n t'r_A 1�?ortqage Loans (as definzd there_:�i snall be recorded in
i;.h.� n�:.ie o� the Trustee an� the City` s _�?=eiesL ��jereit� �cr�� :�iie
��alr:lents th�rzunder shall be pleclged to �_^.� '3'.r���tee as securit�
�ar �he �ayr•.:ent o� r.rinc��al; interes` a^: any rede:n�tzon ,axemiums
.�z t, �Or�:3.0 ." -
czi �.,.:.
e. T_'ursuant ta the ;�rovisions o� �^e Inc'e�ture and Agxeemc�zt�
the Cit� sha:l.l obtain fir_st lien mort:�G�:s +���=� �a`�F land and
improvements financed uncier the Proy�a�:;
f. The Payments r_e�uired by the ��:e:�ture ard Agree.nents
are intended to �roduce income and reve��e su`��cient to
_.3_
� � , � �'�.����
provide for the prar.:pt pa1Ment o` prit?c�_�aZ of and interest o:
all Bonds issued uncer the Indenture �•�hen due, and �ayr:ents
ar�� required to be r.:a�e for such expenses o= adninistratyon,
ar.ci for s�acr� mc�r.tr,age pc:>ol ir,surance an�:�, saecial hazarci
a_nsurance as will� be necessary i:o p�o�ec�. �Ei?e �r_i:e-�est ar the
City and the Trustee tnere?n.
7. In develvping the final details of the Drogram, the
Mayar shall consider each of the �ollowinq:
a. the �vailability and affordabi.lity of o�her
�r�;�Jern:n°nt�l t��oqrams;
b. the availabilit� and a�fordabilj ty oz prit�a�� .
marke�t financing for mortgage Ioans a*_:d =e?�abilizatior_
loans;
c. wrether refi.r_ancir_g existing ?�:ic�tg��es or cor_tr�.cts
�.'1� C��?C�.5 W1.11 211c1u�_c: rehabi?ita�ior. Or '_^.O•..'.SiTIy 1;�I1�.t.S 11t2CLk?� �i
. :�i..c.L.t:. O1- �vi::Ai ,:.v^L::1:�; 7�°1-!c?��]_�_'.y�ii:1GI1 _ ^�yl'�;�i
d. the need for rehab;litatin�' housir� units acqui��ec1
from gov�rn:nental bodies and ager.cies;
�, {�.ia�' ItLvd :f�,�;Y- 3r?.�1�.T.�^t1=?J. i r�s:f_c'=i}� credit. -�o E":C.0t1�r�?�
the purchase ofhousinq units in the geo�ranhic bou�ci�.r�.�� o f
tYie City, and the pu.rchase of rFhabilita��e3 housir�g units fro-:
c,rovern.rlental bodies and aqencies;
f. the n�ecl faz- additional mortga,° credit to encauray�
t��� �urchas� of housing units which are located on pro�erty
w�nzch governmental bodies or arenc�es have acauired and made
suitable for h�using construc�ion;
g, the adT.risa.bility af e��loy:inq, or contractinc for t�z�
services of, private r.lortgage rlarke� pe�san� or ins��ii:�sc.ioris
to aicl and assist �h° City �n carrying out ;�his Pragram;
h. the advisabi?it�� ar,d avai�abiliL_� af mortcag� pool
insurance and special hazard insurance `o protect the inte�es:
e�: the City in the mortqages, �nd iana ��d in�rovementa, finarice�
pu7:s�ant to �e Yrogram;
i. in determinin� tha� �inancii�g �s no� otherwis� a��ai�a'Qle
frcm �r��vute l.er�d�z-� unon t�;r:�s �-�zd cenuitic:�s �•rr,�:r.-h �re af.r�_dabl.e
b17 mort.gar,e l�an ar�plic:aratS � such data ?� a= c�Vc31�-u}�7 E-' GOI:GE�'1i21y
fihe cost of housin�: within the City, th° cost o•` maintain�.ng ��cl
insu.rin such housinc, inco::les of per_sc�^s a�� iamiii�s E,lithin i:ne
g
City, the rate of increase in tne cost c= housirig ��rithin the �ity,
ancl the rate of increase in the funds a��ailable to persons ar:
families within the City; and
j , caordination uf this P.rorram �•:i�h other City, s.tate,
federal and other programs tnat to the end all af sucn proara:;s
sr�ull constitute a comprehensive pragra,:, for ac'_�ieving the
purposes of C;hapter 260 � La�v's of 1975.
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8. Subject to the approval of the City Attorney the forms of
the Indenture, Program Adrlinistration Agreement, r�iortgage Origination and
Sale Agreements, and P�tortgage Servicing Agreements and Exhibits thereto
identified in the Contract of Purchase, and the Contract of PurChase, are
hereby approved and no further anproval of the same shall be required
prior to issuance, sale and delivery of the Bonds except as may be
reasonably rec�uired by Briggs and �.Zargan, Professional Association ("Bond
Counsel" ) for the purposes of rendering the opinions required of Bond
Counsel under the Contract of Purchase. Upon approval of the City Attorney
and Bond Counsel, the Indenture, Program Adr.linistration Agreement, Seller' s
Agreements and P�tortgage �ervicing Agreements identified in the Contract
of Purchase, and the Contract of Purchase, are directed to be executed or
accepted and delivered in the name and on behalf of the City by the P�tayor,
Director of Finance and P�4anagement and Cit� Clerk, as appropriate, unon
execution thereof by the Trustee, Program Pdministrator, Sellers, Servicers
and Managers. Conies of all the documents necessary to the transactions
herein described shall be delivered, filed and recorded as nrovided herein
and in those documents.
9. 1!12 :CO?"?:l and t�Z"?S OL tY12 I=?:;�'�:l�L:��� _T�C?"�c�:?4'.�S c"Z.I'2C� COTl�Y'c1C�"i.
of �urc�ase descYiuec; iri parac;rG�� 5 �a�T �� var;e:�, b; ag=Eer:.ant ?ae�:•�e2n
tk?�' Uc-iY'i1.eS t'f!°1"e�Or �rov?ded tha� di11 St2�:', `%?il3?ZCc? S�'lc;ll TlOt }J�� lI1
tS?G 0�1i1?U?3 Oi +30:7C�. Co��?-nse1� c1:?VG3�S� LO ti?� C'�V� �.it: ��O�T�Ci�Cl fttY'�her
� �ilat Cit� oi Sain� Paul Ordinances DIos. 1�°7� ar� 16�04 , and this
P.esolution, m.a� be amended or sun�l�r.:�n�ed as re:.;u�_�d by Eond Counsel
, 1
far the parpos�s of ren��.rin� the opinions r�Uu�Yed u�ae� �he Contract
of Purchase.
l�. In antici.pation ot th� col�:c�-on o�. rever_ues o� the
Program, the C��y shall �roc�ea to issue i;s Si::ql� =am�ly i�iortga,e
Revenu` I3or_c�s in a nrinci�al. arioun� no� �o ez:ce�u $7� ,OOO , C00 , in �he �
� �or� ar_d u�on �he ierms set f0-L'L'fl in the Co.1�-ac� o� Purchase and
Indenture iden�ified ?n the Contrac� of Pu�c^as�, �•rh=ch �erms are for
this purpose incorporated in this resolu��o� anc: �ac? a �arz hereo�.
Th� off�r of th° P-i�na�ers on b�half oT the-:�°lves Gnd tne syndica�e
.{.. n� re�rese;�t t0 �urC.:1C�.�J.�.. JC��.0 U.7�QS CZ. l.. �G �`�C�I �luJ �GC�.ruPc1 in�erest
l.la...� _ � . ` , - - � .
�.O til� C.�'c V O'` %:°� 1JE'.��.' :1T1�; 07? ��"Lc ��'C�'S S°� -0"=�-? 1?? L�: C0�ltrctC� O'F
pLl"'Ci1dS@ c�.I1G� Su_'..:1 �r_c�entur�� 1S tl°Ii�'L:�' cZ. CC����:=- `!'!?c ,7�:�'Or' �:T1C� Cl�V
C'l�rt are dU�i.r10'"1ZE.-'C� �1T1C� C�'reetecl �O D?"eD��° ct?:C: exe�.l�Z k3y �cZ. CS1T'�?le
sign��ure the Bonds :s nrescri��G in �he I�:����'�:=z =�2n�iTied a.n the
Cont��-c� o�F Purchas� and to deliver tner:i to ��e �yu��ee un�.er thz
Ir.d?nf�u�z (c•;hich is her�in designa��ci as ��e aL��en��c��ing ac�ent
ur.::er i�innesota S�at�tes, S�ctio� 475 . �5) , �oc°�'�°Y ��:�t�-� a certified
CO��' O�F trk].S TZc SO�.UL1021 � a?1� ul'?j c�ir'.2T'-GG'rl� O?' SL'�J1�=��?'1�G1 resolutions
' Counsel, ar_d tne ots:�r �acu-�:�:^�s recuiY�d by -the
reJUired by Bon::
ZI'?G='.?2�U?'�G 1C�°11�1i1�C1 11'1 ��"lE'_ CO'Z{.1"cCt Or �L:<C�as� �o= au;-_hen�icatior. and
. CiE�'1V�Y'�% �O tr?n j:cLllc GE'_�S. •
�.�. . lf?v liu'>•'O:C �i?1C� L'��1' L'�tri G:ar'-C. O�:'�'_� Or"=10EiS Oi t}lE�' C?t�T
c�. ZE_' c.�Llt�10I"1'LeC< �i1C. C�ZI'E'C�Eu 40 �r`-':,?i2 c i C'.� �t'_Y:"_S�? 40 �.�e .�:anacJers �r'�l�?1
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1:iSU:�`C�, certi�ied CO�?ES O{ c3�1 7iOCc�.c^_C:1=�C= 2--'-`^ =�CG�_''G,S Oi the (,'lit,..V
reli;t.lriC� t.0 t�'1� �O??CGS � �lI�1C� SUCi O�.L?�'_' �ir1:,;:;': -�.' �I7.. CF'�i:1:.1Cc.-it.�S "ctS
'' a � c:1. �� c.T1C�
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n:�l t�c rec�ui.reu to sho�:r ti�e iac�s re?a�in� ° _ �.� boo
T�lc Y't:E_'t:c21.�:1_I.lty Oi trl� �J:?riS �iS SUC�7 i,�:Ci:S a,�-'c�''-:..- _.�0-: �._ � _ j:5 cZ.Il.�
YE'.C;)iC.�S 1T1 Su1C1 Of:L1CC'�S Ci1S�.0�11' c�T?C�. CO:?�-=-!�1 p_r uS O�'?��i•:15� }:11C:+:?
tU ��'1F:,1; anr� aIl SL1C1'I CEY't.1fZE::� CO;%1�S j C:��i :i C?��S c':i?C� c"�.rflticlVl�Sr
WHITE - CITV CLERK ��n/���
PINK - FINANCE COUIICII A4��
CANARV - DEPARTMENT GITY OF SAINT PAUL
BLUE - MAVOR File NO.
� � ` Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
-5-
including and heretofore furnished, shall constitute representations
of the City as to the truth of all statements made by the City and
contained therein.
COUNCILI4IEN Requested by Department of:
Yeas Nays
�_� � [n Favor �
Hunt g ��(/.�e!�E'��� , � 2 �J�
Levine _ U' __ Against Y
Maddox
Showalter
Adopted by C�o�u�n•c 1: Date MaY I'' 4 �9�� Form Approved by City Attorney
Certifie as- by ncil Seoret ry BY �
�
tlppr 'e y Mavor. Date
(�� �' ° � Approved by Mayor for Submissi Council
By BY
�.� JUN 2 1979
-:�. .� S . � . . ... . . �. . . . . . . . . . ...
: OM O1: 12/1975
. . Re�.;, 8/?6
��«1����
EXPLANATION QF ADMINISTRA�'IVE ORl}ERS, T
. RESOLUTIONS, AND ORDIN�NCES
��*'
Date: May 24� 1979 � ,
���
P.A
� . � . . � � . . . . ..� . . . �ss
. . ' . � . . . . - � � . ,'7
TO: Mayor George Latimer
FR: Terry N�NeI l is�'�
��..: =Second BMIR Program
. ACTION REQUESTED: • .
�
Sig� Res�lution for presentation to Cour�cil on May 24, 1979.
PURPOSE AND RATIONALE FOR THIS ACTION: �
It is expected that the dates of April and May 25th contained in Ullman's �posed .
bill wili be changed, passibly even today. This is simply a move to cover ai� the
bases with th� conflictina reports we are getting from Washing�ctr�; D.C. -
ATTACHMENTSz
Council Resolution
, .