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273792�PINKwMiTe — cirr CLERK COUIICII �� — FINANCE GITY OF SAINT PAUL File NO. � �� CANAPY�'— DEPARTM�ENT HLUE — MAVOR Council Resolution Presented By Referred To Committee: Date Out of Committee By Date PRELIMINARY RESOLUTION AUTHORIZING A BELOW MARKET INTEREST RATE MULTI- FAMILY HOU5ING LOAN r^INANCING PROGRAM UNDER CHAPTER 260, LAWS OF MINNESOTA FOR 1975 AND MTNNESOTA STATUTES, CHAPTER 462A AND CITY OF SAINT PAUL ORDINANCES 15975 AND 16504 OR UNDER MINNESOTA STATTJTES, CHAPTER 462C AND AUTHORIZING THE ISSUANCE OF REVENUE BONDS WHEREAS, the City desires to make available below market interest rate loans to make possible the rehabilitation or purchase and rehabilitation of multi-family housing for occupancy primarily by persons of low and moderate income within the corporate limits of the City upon terms and conditions not otherwise generally affordable to multi-family housing owners in the private lending market; and WHEREAS, the City desires. to encourage and facilitate the successful redevelopment of various blighted residential areas and structures within the City; and WHEREAS, the staff ot the Department of Planning and Econornic Development of the City, have proposed that the City issue revenue bonds pursuant to Chapter 260, Laws of Minnesota for 1975, (the "Act") , and Minnesota Statutes, Chapter 462A ("Chapter 462A") , and City of � St. Paul Ordinances Nos. 15975 and 16504 (the "Ordinances") , or pursuant to Minnesota Statutes, Chapter 462C ("Chapter 462C") to finance a below market interest rate multi-famil.y housing loan program; NOW 'THEREFORE, BE IT RESOLVED by the City Council of the Cit of Saint Paul as follows: COUNCILMEN Requested by Department oE: Yeas Nays Butler [n Favor Hozza Hunt Levine __ Against BY Maddox Showalter Tedesco Form F4pprov d by CiEy Atto ey Adopted by. Council: Date _` Certified Yassed by Council Sejcretary - BY 7 By f�pproved by lNavor. Date App ove y Mayor for Su ssi uncil By _ sy WNITE - C�TV CLERK (��('1��.� /�y CANARV! DEPARTMENT � � COUIICII 1� t� ��j �LUE - MAVOR ' CITY OF SAINT PAUL File NO. � � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date a. That the Department of Plannin� and Economic Development is authorized to formulate a specific program to provide below market interest rate multi-family housing loans for housing to be occupied primarily by persons of low and moderate income (the "Program") as part of the housing program authorized under the Act, and under Chapter 462C. b. The Program shall be financed by the issuance � of revenue bonds authorized by the Act, Chapter 462A, the Ordinance, or Chapter 462C. The aggregate par value of such revenue bonds shal,l be in an amount not to exceed $100,000,000. Such revenue bonds may be issued in one or more series, and each series may, at the option of the City, be offered and sold as a single debt instrument. c. Loans made pursuant to the Program and under the authority of the Act shall be made only if a determinatian 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 multi-family housing loan applicant. d. The Program shall provide that such revenue bonds shall be payable solely from th� revenues of the Program, and shall not be a charge against the credit or taxing powers of the City, within the meaning of any constitutional or statutory provision. COUNCILMEN Yeas Nays Requested by Department of: Butler [n Favor Hozza Hunt � Levine _ __ Against BY - Maddox Showalter Tedesco Form Approved by City Attorne� Adopted by Council: Date Certified Yassed by Council Seeretary BY By fApproved by Mavor. Date Approved by Mayor for Submission to Council By — BY M/HITE - CiTV CLERK COIlI1C11 �� PINK - - FINANCE G I TY OF SA I NT PA LT L CANARV! �EPARTMENT E� $;, , y.,;�. BLUE - MAYOR - F�Ie NO. � � Co�ncil Resolution Presented By Referred To Committee: Date Out of Committee By Date e. The Program shall comply in all respects with the aforesaid Act, Chapter 462A, the Ordinances, or Chapter 462C, as they may from time to time exist, with the regulations promulgated thereunder and with any housing plan formulated pursuant thereto. The Mayor is hereby authorized to formulate such criteria far the Program as are consistent with the Act, Chapter 462A, the Ordinances, Chapter 462C, and the aforesaid regulations or plan. Said criteria may be contained in the various agreements and other documents relating to the Program. f. The indentures, revenue agreements and other documents in connection with the Program and such revenue bonds shail be submitted to the Council for approval prior to the issuance of such revenue bonds or any series thereor. � g. The Council may, by ordinance, authorize the Housing and Redevelopment Authority of the City to exercise, within the corporate limits of the City, any and all of the powers which the Minnesota Housing Finance Agency is authorized to exercise under Chapter 462A, and which the City is authorized to exercise under the Act or under Chapter 462C, but only upon the terms and conditions set forth in this Resolution, the Ordinances, and in the regulations promulgated thereunder, and the said Housing and Redevelopment Authority shall, if so authorized, issue the revenue bonds authorized by this Resolution. h. The City may contract with such private garties as may be necessary to effectuate the Program, and to make use of existing lending institutions and staff. COUNCILMEN Requested by Department of: Yeas Nays Butler (n Favor Hozza Hunt Levine __ Against BY Maddox Showalter Tedesco Form Approved by City Attorney Adopted by Council: Dat+e Certified Vassed by Council Secretary By By - lApproved by �lavor. Date — Approved by Mayor for Submission to Council By - - — BY 1 M�MITE - CITV CLERK ' ^��i�w� PINK - FINANCE COIIlICIl i w GANARV�-`DEPARTMENT G I TY OF SA I NT PA U L . File NO. 'M ,, BL�UE - MAVOR � � � � Council Resolution Presented By Referred To Committee: Date � Out of Committee By Date i. The Department of Planning and Economic Development is authorized to negotiate for the services of securities underwriters and bond counsel in connection with the revenue bonds authorized by this Resolution. COUNCILMEN Yeas Nays j Requested by Department of: X�� McMahon (�,, [n Favor Hozza —F�� Hunt � __�__ Against BY Maddox Showalter Tedesco O`'T � 1979 Form Approved by City Attorney Adopted by Council: Date Certified Yassed by Council Secretary BY � By Ap ro e by Mavor. te � (1�� 3 19�� Ap r e by Mayor for Sub io By ��isK�4 0 CT 6 1979 EXAMPLES ,- � � �j �q� �. � � BMHR Adjusted Gross I. Income falls within maximum limit of $24,000. � Family of four (2 adults - 2 children) Gross annual income of applicant , � 26,000 Deductions - $750 - each adult $1,500 $500 - each child $1,000 Total deductions 2,500 Adjusted gross income 23,500 II. Income does not fall within maximum limit of $24,000 Adjusted gross incorne $27,000 As-is appraised value of home $20,000 Cost of Rehabilit�tion $22,000 The cost of rehabilitatipn exceeds the lesser �f �25,000 or 100% of the appraised as-is value of the home, therefore, the income limitation of $24,000 is waived. Forms of financing and substaz�tial rehabilitation I. Mortgage financing of the cost of acquisition and substantial rehabilitation Acquisition cost $40,000 Rehabilitation cost $15,000 Total acquisition and rehab cost $55,000 After rehabilitation appraised value $58,000 25% of after-rehabilitation appraised $14,500 value Total mortgage needed would be below the maximum of $72,000 and the cost of rehabilitation ($15,000) exceeds 25� of the after-rehabilitation appraised value ($14,500). II. Refinancinq of existing mortgages or contracts for deed of dwellings when necessary to achieve substantial rehabilitation. , Balance of Contract for Deed on $25,000 mortgage Cost of rehabilitation $15,000 Total refinancing and rehabilitation $40,000 costs As-is appraised value $30,000 25% of as-is appraised value $ 7,500 Total mortgage needed would be below maximum of $72,000 and the cost of rehabilitation ($15,00� exceeds 25% of the as-is appraised value ( $7,500) , therefore meeting program guidelines. III. Purchase of a home that has been substantially rehabilitated. Purchase price of rehabilitated dwelling $75,000 Mortgage amount requested $70,000 Cost of rehabilitation $25,000 After-rehabilitation appraised value �$75,000 25% of after=rehabilitation appraised value $18,750 Total mortgage needed would be below the maximum of $72,000 and the cost of rehabilitation ($25,000) exceeds 25� of the after=rehabilitation appraised value ($18,75Q), therefore meeting program guidelines. � .. i � � 1' � ��..v�'' ' ct�s o,,, GI'1`Y OF �AINT PAUL �� , , OFb`ICF ON TFIF. CITY COUNCIL ( fi�eF!sia• � if Gi8lil-Gf� a�{et�+g�q� IJ•1 � 1'' '_ � 1 a'P DAVID H. HOZZA Councilmxn September 28, 1979 Rose Mix, City Clerk 386 City Hall St. Paul, Minnesota 55102 Dear Rose : - Please be notified that I have called a special meeting of the City Council for rionday, October l , 1979 , at 10 : 00 a.m. , at Room 707, City Hall , to consider adoption of resolutions (1) authorizing a below market home rehabilitation loan program revenue bond issue in an amount not to exceed $100 ,000 ,000 , (2) amending Resolution Council File No. 272973 adopted May 17 , 1979 , authorizing a below mar�Cet interest rate home mortgage loan program second revenue bond issue, increasing the amount of said issue f rom not to exceed $75 ,000, 000 , to not to exceed $100, 000 ,000 , and (3) autriorizing a below market interest te multi-family housing loan program revenue bond issue in a amount not to exc d $100 ,000,000 . � COUNC P SID 1 � 47e, the undersigned Councilmen, do hereby waive written notice requirements for a special meeting of the City Council on rionday, October l, 1979, at 10 : 00 a.m. , at Room 707 , City Hall, for the � reasons stated above. i j ` �L�/� i •s� � � '�� . . � � , C? ,i . �.,�.�.-� -1 f,c.,�, �. � ,t.-�,_. _ , v� � . C('I'Y HALL SEVEN"l'H ELOUK SA[N"C PAUL, MINNLSO'CA SS102 612/298-4646 �:e,^��O