96-1069 . . °� �� � �; � ��,� 1��� � �_
Council File # q
Green Sheet # �R�7h
RESOLUTION
�I�T OF INT PAUL, MINNESOTA
S'?
Presented By
Referred To Committee: Date
GIVING PROVAL TO THE RECYCLING OF PROGRAM MOI�TIES
FOR THE MINNEAPOLIS/SAINT PAUL HOUSING FINANCE BOARD (THE "BOARD")
FIRST-TIlVIE HOMEBUYER PROGRAM THROUGH THE ISSUANCE
BY THE DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY,
ON BEHALF OF THE BOARD AND CERTAIN OTHER ISSUERS,
OF SINGLE FANIILY MORTGAGE REVENUE REFUNDING BONDS
1 Whereas, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C (the
2 "Housing Act"), the City of St. Paul, Minnesota(the "City") is authorized to carry out programs for
3 the financing of single family housing for persons of low and moderate income; and
4
5 Whereas, the Minneapolis/Saint Paul Housing Finance Board (the "Board"), a joint powers board
6 organized under a Joint Powers Agreement (the "Organizational Agreement") by and between the
7 Minneapolis Community Development Agency (the "Agency"), the Housing and Redevelopment
8 Authority of the City of Saint Paul, Minnesota(the "Authority") and the City of Minneapolis
9 ("Minneapolis")and accepted by the City, and under the laws of the State of Minnesota, is authorized
10 to issue one or more series of revenue obligations as described herein, pursuant to Minnesota Statutes,
11 Sections 469.001 to 469.047, Chapters 462A, 462C and 474A and Section 471.59 (collectively, the
12 "Act"); and
13
14 Whereas, the Board,jointly with the Dakota County Housing and Redevelopment Authority (the
15 "Dakota County Authority") and the Washington County Housing and Redevelopment Authority (the
16 "Washington County Authority" and, together with the Board and the Dakota County Authority, the
17 "Issuers")have previously issued their Single Family Mortgage Revenue Bonds, Series 1987A ("Series
18 A Bonds"), in the initial principal amount of$49,180,000, Series 1987B ("Series B Bonds"), in the
19 initial aggregate principal amount of$11,320,000, and Series 1987C ("Series C Bonds"), in the
20 aggregate principal amount of$138,000,000 (collectively, the "Prior Bonds") in accordance with the
21 Act and a Joint Powers Agreement among the Issuers and the other parties identified therein (the
22 "Joint Powers Agreement"); and
23
24 Whereas, in accordance with the Act the Issuers propose to authorize the Dakota County Authority on
25 behalf of the Issuers, to issue single family mortgage revenue refunding bonds, in the approximate
26 aggregate principal amount not to exceed $5,400,000 allocable to the Series A Bonds, $1,300,000
27 allocable to the Series B Bonds and $14,400,000 allocable to the Series C Bonds (collectively, the
28 "Bonds")to refund a portion of the Prior Bonds from time to time through the end of calendar year
29 1997 in order to recycle moneys available to finance the acquisition by low and moderate income first-
30 time homebuyers of single family homes; and
31
32 Whereas, Section 147(fl of the Internal Revenue Code of 1986, as amended (the "Code")requires a
33 public hearing be held on the issuance of the Bonds following publication of notice in a newspaper of
34 general circulation in the City and in Minneapolis at least fourteen days in advance of the hearing; and
, . �*± �� � ��� � �°' j* � �l � �0�9
, ,
35 Whereas, the City Council has heretofore conducted a public hearing on the issuance of the Bonds, at
36 which hearing all parties were given an opportunity to express their views with respect to the issuance
37 of the Bonds, as required by the Code; and
38
39 Whereas, the initial aggregate principal amount of the Bonds will not exceed $21,100,000; and
40
41 Whereas, it is proposed that the issuance of the Bonds be approved;
42 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT
43 PAUL:
44
45 That the issuance of the Bonds by the Dakota County Authority on behalf of the Board in an initial
46 aggregate principal amount not to exceed $21,100,000 is hereby approved. T'he officers of the City
47 and the Board shall do all things and take all actions as may be necessary or appropriate to carry out
48 the issuance of the Bonds in accordance with the Act, the Organizational Agreement, the Joint Powers
49 Agreement and any other applicable laws and regulations. No further approval or consent of the City
50 shall be required prior to the issuance of the Bonds.
51
52 BE IT FURTI-�R RESOLVED, that the Bonds shall not constitute a charge, lien or encumbrance,
53 legal or equitable, upon any property or funds of the Board, the Authority or the City except the
54 revenues and proceeds pledged to the payment thereof, nor shall the Board, the Authority or the City
55 be subject to any liability thereon. The holders of the Bonds shall never have the right to compel any
56 exercise of the taaLing power of the Board, the Authority or the City to pay the outstanding principal
57 on the Bonds or the interest thereon, or to enforce payment against any property of the Board, the
58 Authority or the City. The Bonds shall recite in substance that the Bonds, including the interest
59 thereon, are payable solely from the revenues and proceeds pledged to the payment thereof. The
60 Bonds shall not constitute a debt of the Board, the Authority or the City within the meaning of any
61 constitutional or statutory limitation of indebtedness.
Yeas Navs Absent Requested by Department of:
uerin
arris
e ar Planning Economic Development
ostrom
ettman
une
a ev � By�
r1 Form A ved by C' A orney
Adopted by Council: Date d(� �
Adoption Certified by Council Se etary By.
BY� � - pproved by Mayor for Submission to
Approved by Mayor: Date � Gf Council
By: �l� _(�� By: C
: �
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UNCIL DATE INITIATED 3 �6 7 6
P.E.D. 8/12/96 GREEN SH
CONTACT PERSON 6 PHONE INITIA �NITEl4�1!E1A1'8 ,
DEPARTMENT D� R �CITY COUNCIL
Kat Lindblad, 266-6614 ���aN cinrnnpRNSV �G�Trr,�r,uc,
NUMBER FOR gUDGET DIRE FIN.&MCiT.SERVIGES DIR,
MUST BE ON COUNCIL AOENDA BY(DATE) ROUTNJQ
8/2 8/9 6 Pub 1 ic He ar ing ORDEW MAYOR(OR ASSISTANT) Ga���--r r�3.��'"
om eye �
TOTAL#OF SIGNATURE PAGES � (CLIP ALL LOCATtONS FOR SIGNATURE)
ACTION REQUESTED:
Approval of the recycling of program monies for the Minneapolis/Saint Paul Housing Finance
Board First-Time Home Buyer Program.
RECOMMENDA710NS:Approve(A)a R�ect(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWINCa CUESTIONS:
_ PLANNIN(i COMMISSIQN _CIVIL SERVICE COMMISSION �• Has tMs pefsOn/firm ever wo�ked under a contrBCt fOr this department?
_CIB COMMITTEE _ YES NO
2. Hea this person/flrm ever been a city employee?
—sTA� — YES NO
_DISTRICT COUR7 _ 3. Does this person/firm possess a skill not normally possessed by any current city employee?
8UPPORTB WHICH COUNCIL OBJECTiVE? YES NO
Ezpleln all yes answsrs on ssparete sheet and attech to yrosn shNt
INITIATINO PROBLEM,ISSUE.OPPORTUNITY(Who,Whet,When,Where,Why):
In 1987, the Minneapolis/Saint Paul Housing Finance Board, together with the Washington Coun y
HRA and the Dakota HRA issued three series of single family mortgage revenue bonds, totaling
$198.5 million. There are currently about $91.4 million in outstanding mortgages, which are
pledged to support an equal amount of outstanding bonds. Prepayments and regularly schedule
payments are used monthly to call about $1 million in bonds. The Stearns County HRA and the
Dakota County HRA will issue, either individually or jointly, new money mortgage revenue bon
issues this year and would like to "recycle" Phase IV's most current month's prepayments and
aov . ' .
Stearns County and Dakota County HRA will be able to increase the size of their next first-
time home buyer program by about $1 million. With a below-market rate of interest, a broade
income range of first-time buyers will be able to afford home ownership.
DI3ADVANTAOES IF APPROVED:
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DISADVANTA(iES IF NOT APPROVED:
The ability to recycle the tax-exempt bonding authority will disappear.
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TOTAL AMOUNT OF TRAN8ACTION t �• � ��, �,,�__ *rtvu� COST/REVENUE BUDGETED(CIRCLE ONE) YES NO
FUNDIt�ti SOURCE Stearns County & Dakota COl1riCy ACTIVITY NUMBER � �/
FINANCIALINFORIiitAT10N:(EXPLAIN) ��5, to PaY for 111 COStS Of issuance
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