272624 . WHITE - CITV CLERK COUnCII nr ����
PINK - FINANCE G I TY O F SA I NT PA U L �� �����-�-�
C`ANARV ����D6PARTMENT
�BLUE - MAVOR °'�
File N .
��At�y��-� Council Resolution �
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLUTION AUTHORIZING THE FINANCING OF A
BELO�'V MARKET INTE?2EST RATE MORTGAGE LOAN
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 THE ISSUANCE OF HOT�LE
OWNERSHIP MORTGAGE REVENUE BONDS TO FINANCE
THE PROGRAP4.
BE IT RESOLVED by the Council of the City of Saint Paul,
Minnesota as follows:
1. The City Council has received a proposal from Piper,
Jaffray & Hopwood, Inc. and Dain, Kalman & Quail, Inc. (the "Underwriters")
that the City undertake a 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, and City of Saint Paul Ordinances Nos. 15975
and 16504.
2. The Program will provide below market interest rate
mortgage loan financing primarily to persons of low and moderate income
purchasing or rehabilitating homes within the geographic limits of the
City. Such financing shall be available only upon determination by the
City, or on the City' s behalf, that such financing, on the terms and
conditions �urrent�y avai.�.able in �he x,ri�-at� mc*rtc�a,�e market; i� not
affordable to the applicants.
3. The Program will be financed from the proceeds of Home
Ownership 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 Home Ownership Mortgage Revenue Bonds
of the City in accord with a proposed form of Indenture of Trust
(hereinafter referred to as the "Indenture'°) .
COUNCILMEN Requested epart
Yeas Nays
Butler In Favor
Hozza
Hunt
Levine __ Against BY —
Maddox
Showalter
Tedesco Form Approved City Attorney
Adopted by Council: Date /
. /
Certified Passed by Council Secretary By -� —7`
By
Approved by Ylavor: Date _ Approved by Mayor for Submission to Council
BY - — — BY .
.. ', �~�1��"�F�
4. This Council, by action �aken on March 16 , 1976 , and
gebruary 13, 1979, promulgated regulations for the Program, and
• authorized the Mayor to formulate and develop the criteria for the
Program, which criteria may be contained in agreements or other
documents related to the Program.
5. The following documents (including the Exhibits referred
to therein) have been submitted to the Council for approval:
a. Indenture of Trust, dated as of April l, 1979
to be made and entered into between the City and First
Trust Company of Saint Paul, Saint Paul, Minnesota as
trustee, (hereinafter referred to as the "Trustee") ,
pledging the revenues of the Program for the security
of the Bonds proposed to be issued by the CitX of Saint
Paul, and setting forth proposed recitals, covenants
and agreements by the paxties with respect thereto.
b. A Program Administration Agreement': to be dated
as of March 12, 1979 between the City of Saint Paul and `
Banco Mortgage Company, as Program Administrator, and
accepted by the Trustee, setting forth the duties of the
Program Administrator in connection with the Program.
c. A form of Se11er`s Agreement to be dated as of
March 12, 197�9; between the City of Saint Paul, the Program
Administrator and various Sellers (as defined therein)
under the Program, and accepted by the Trustee, providing
for the origination of �hortgagE loans pursuant to the
Program.
d. A form of Mortgage Servicing Agreen��ht, to be
dated as of March l2, 1979 between various Servicers` "(as
defined therein) the Trustee, the Program Administrator
and accepted by the City providing for the servicing of the
mortgage loans pursuant to the Program.
e. A form of Contract of Purchase to be dated as of
March 12, 1979 , between the City and (jointly) Piper,
Jaffray & Hopwood, Inc. and Dain, Kalman & Quail, Inc.
(hereinafter called the "Underwriters") providing for the
underwriting and purchase of the Bonds.
6. It is hereby found, determined and declared that:
a. The Program described in the Indenture, Program
Administration Agreement, Seller's Agreements and Mortgage
Servicing Agreements is a program authorized by Chapter 260 ,
Laws of Minnesota for 1975, and Minnesota Statutes , Chapter
462A and City of Saint Paul Ordinances Nos. 15975 and 16504 ;
b. The purpose of the Program is, and the effect
thereof will be to promote the public welfare by maintaining,
providing and preserving an adequate housing stock within
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� the City, by providing for the rehabilitation and
� upgrading of the existing housing stock within the
City, by making available mortgage credit for new
construction, and by making available mortgage
credit for owners and would-be purchasers of housing
units upon terms and conditions not otherwise
affordable to such owners and would-be purchasers
upon the terms and conditions available in the
private mortgage credit market;
c. The Program will substantially assist the City
in rehabilitating and improving various blighted
residential areas, thereby improving and maintaining
the City' s tax base and preventing or slowing the
development of blighted areas;
d. The Program will benefit only persons purchasing
real property located within the geographic boundaries
of the City;
e. The development and implementation of the Program,
and the regulations promulgated by the City in connection
therewith, the issuance and sale of the Bonds, the .,,:;,.
execution and delivery of the Indenture, the Program f �,�;f „�
Administration �l�greement, the Contract of Purchase, th� ��`��
' Sel ler' s Agreements and the Mortgage Serv,ic�:rtg Agreements�,
and the performance of all covenants and agreements of the
City contained therein and of all other acts and things
- required under the Constitution and Laws of the State of
Minnesota to make the Indenture, Program Administration
Agreement, the Contract of Purchase, Seller' s Agreement
and Mortgage Servicing Agreements and Bonds valid and
binding obligations of the City in accordance with their
terms, are authorized by Chapter 260 , Laws of Minnesota
for 1975 and Minnesota Statutes, Chapter 462A and City of
Saint Paul Ordinances Nos. 15975 and 16504 ;
f. The implementation of the Program for the purposes
and in the manner contemplated by the Indenture, Program
Administration Agreement, the Contract of Purchase, Seller' s
Agreements and Mortg�.ge S�rvicing Agreements conforms or
will conform to all applicable statutes, rec�ulations and
ordinances of the State of Minnesota, the County of Ramsey
and the City;
g. It is desirable that Home Ownership Mortgage Revenue
Bonds, dated April l, 1979 , in the amount of $50,000,000 be
issued by the City upon the terms set forth in the Indenture,
under the provisions of which the City' s interest in the
Purchased Mortgage Loans (as defined therein) shall be recorded
in the name of the Trustee and the City's interest therein and
the payments thereunder shall be pledged to the Trustee as
security for the payment of principal, interest and any
redemption premiums on the Bonds;
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h. Pursuant to the provisions of the Indenture,
Program Administration Agreement, Seller's Agreements,
Mortgage Servicing Agreements, the City shall obtain
first lien mortgages upon the land and improvements
financed under the Program;
i. The payments required by the Indenture, Program
Administration Agreement, Seller' s Agreements and
Mortgage Servicing Agreements are intended to produce
income and revenue sufficient to provide for the prompt
payment of principal of and interest on all Bonds issued
under the Indenture when due, and payments are required
to be made for such expenses of administration, and for
such mortgage pool insurance and special hazard insurance
as will be necessary to protect the interest of the City
and the Trustee therein; and
j . Pursuant to the provisions of Chapter 260, Laws
of Minnesota for I975, Section 3, Subdivision �, and
City of Saint Paul Ordinance No. 159?5, Section 6, as
amended and as provided in the Indenture, Program Administration
Agreement, Seller' s Agreements and Mortgage 5ervicing
Agreements, the Bonds shall be retired solely from the
revenues of the Program, and pursuant to City of Saint Paul
Ordinance No. 15975, Section 10 se�arate Sinking Funds shall
be established for the accounting of the revenues and
retirement of the Bonds.
7. It is hereby found, determined and declared that in
developing the Program, the Mayor has considered each of the following:
a. the availability ancl affordability of otn�r
governmental programs;
b. the availability and affordability of private
market financing for mortgage loans and rehabilitation
loans;
c. whether refinancing existing mortgages will
enable rehabilitation of housing units under a State or
local housing rehabilitation program;
d. the need for rehabilitating housing units acquired
from governmental bodies and agencies;
e. the need for additional mortgage credit to
encourage the purchase of housing units in the geographic
� boundaries of the City, and the purchase of rehabilitated
housing units from governmental bodies and agencies;
f. the need for additional mortgage credit to
encourage the purchase of housing units which are located
on property which governmental bodies or agencies have
acquired and made suitable for housing construction;
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_ g. the advisability of employing, or contracting
for the services of, private mortgage market persons
or institutions to aid and assist the City in carrying
out this Program;
h. the advisability and availability of mortgage
pool insurance and special hazard insurance to protect
the interest of the City in the mortgages, and land and
improvements, financed pursuant to the Program;
i. in determining that financing is not otherwise
available from private lenders upon terms and conditions
which are affordable by mortgage loan applicants, such
data as is available concerning the cost of housing within
the City, the cost of maintaining and insuring such housing,
incomes of persons and families within the City, the rate
of increase in the cost of housing within the City, and
the rate of increase in the funds available to persons
and families within the City; and
j . coordination of this Program with other City,
state, federal and other programs that to the end all of
such programs shall constitute a comprehensive program
.for achieving the purposes of Chap�er 260 , Laws of 1975.
8. Subject to the approval of the City Attorney the forms
of the Indenture, Program Administration Agreement, Contract of Purchase,
Seller' s Agreements, and Mortgage 5ervicing Agreements and Exhibits
thereto are hereby approved. The Indenture, Program Administration
Agreement, Seller' s Agreements, and Mortgage Servicing Agreements
are directed to be executed or accepted in tne name and on behalf of
the City by the Mayor, Director of Finance and Management and City' Clerk,
as appropriate, upon execution thereof by the Trustee, Program �
Administrator, Sellers and Servicers. Copies of all the documents
necessary to the transactions herein described shall be delivered,
filed and recorded as provided herein and in those documents.
9. The form and terms of the documents described in paragraph
5 may be varied by agreement between the parties thereto, provided
that any such variance shall not be, in the opinion of Bond Counsel,
adverse to the City.
10. In anticipation of the collection of revenues of the
Program, the City shall proceed forthwith to issue its Home Ownership
Mortgage Revenue Bonds dated as of April 1, 1979 , in the principal
amount of $50,000,000 , in the form and upon the terms set forth in
the Indenture, which terms are for this purpose incorporated in this
Resolution and made a part hereof. The offer of the Underwriters on
behalf of themselves and the syndicate they represent to purchase
said Bonds at a price of $49,000,000, plus accrued interest to the
day of delivery and at the rates specified in the Indenture is hereby
accepted. The Mayor and City Clerk are authorized and directed to
prepare and execute by facsimile signature the Bonds as prescribed
_5_
WHITE - C�TV CLERK � �
PINK � - FINANCE C I TY O F SA I NT PA U L Council �r�����,��
GANARV -�DEPARTMENT
BI.rJE. � -..MAVOR File NO.
� Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
in the Indenture and to deliver them to the Trustee (which is herein
designated as the authenticating agent under Minnesota Statutes,
Section 475. 55) , together with a certified copy of this Resolution,
and the other documents required by the Indenture, for authentication
and delivery to the Underwriters.
11. The Mayor and City Clerk and other officers of the City
are authorized and directed to prepare and furnish to the Underwriters,
when issued, certified copies of all proceedings and records of the
City relating to the Bond.s, as such other afiidavits and certificates
as may be required to show the facts relating to the legality and
marketability of the Bonds as such facts appear from the books and
records in said officers custody and control or as otherwise known
to them; and all such certified copies, certificates and affidavits,
including any heretofore furnished, shall constitute representations
of the City as to the truth of all statements made by the City and
contained therein.
COUIVCILMEN Requested Department o : �
Yeas Nays �
Bntief�
Hozza [n Favor
I�xnt—
Levine _ __ Against BY —
Maddox
Showalter
Tedesco � � 2 �� Form Approved by City Attorney
Adopted by C o . Date
Certifie assed ounc� Secreta�y BY �'"
Appro� y lNavor. Dat � �4 �9� Approve � y Mayor for Submission to Council
� �
By _ _ — By
M16Lt�HEfl MAR 1 7 1979