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01-539O��GI�lAL Council File # 0� � S� Resolution # Green 5heet # i�\ b�6to RESOLUTION CITY OF SAINT PAUL, MINNESOTA Presented By Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 RESOLVED, that upon the recoi Paul does hereby approve the following Fund: Frogtown Facelift Loan Fund P6-100-98005-0547-00661 Comp. Housing Real Estate P6-100-96004-0584-00518 Totals CURRENT BUDGET $900,000.00 $ 15.542.07 $915,542.07 Committee: Date 3a bf the Mayor, the Council of the City of Saint to the Community Development Biock Grant CHANGE AMENDED BUDGET ($250,000.00) $250,000.00 $ 0.00 $650,000.00 $265.542.07 $915,542.07 Requested by Department of: Plannin & Econo .ic Develo ment By: � S C1C Form Approved by City Attorney Adopted by Council: Date �`3 pOt � /� � A � Adoption Certified by Counci Secretary By: ��`�-z /�1�'.�V�� By: � Approved by Mayor for Submission to Council Approved by Mayor: Date �l /sLUj , iJ % By: By: �Y � v DEPAR'IMEtil'/QFFSCtiC04NCIL: DATE IYITIATED GREEN SHEET Nor 111086 PED 4/24/O1 ' O l 5� S[ephanie Hat�kinson, 256b585 � IN[71.aLD.�1'E INt7'I.1tJUaTE 1 DEPARIMENT DIR CITYCOUNCIL ASSIGN ? C[TY ATl'ORNEY� _ CITY CLERK btIIST BE ON COUI�CIL AGENDA BY (DATE} hUbiBER _FINAhCIAL SERV D[R. _ FLNANCIAL SERVlACCTG FOR 3 MAYOR (OR ASST.) _ CIVIL SERVICE COMMISSION ROUTING µ'�T 7EAM (Kershaw) ORDER TOTAL # OF SIGNATURE PAGES _l_(CLIP ALL LOCA7IONS FOR SIGNA'['URE) acr[or izeQUesren: Greater Frob own CDC requests the transfer of $250,000 from their Greater Forgtown Facelift Loan Fund to their Comprehensive Housing Real Estate Fund, more commonly known as the Rental Rehab program. This resolution accomplishes that fund transfer. RECOMMENAATIONS: Approve (A) or Reject (R) PERSO\AL SERVICE CONTItACi'S MUST ANSW ER THE FOLLOW IIVG QUESTIONS: PLANNQ4G COMMISSION 1. Haz this person/Fcm ever worAed under a conhac[ for [his deparhnent? CB COMMITTEE Yes No CML SERVICE COMMISS[ON 2 Has this person/firm ever been a city employee? Yes No A S[aff 3. Does this person/firtn possess a skill no[ nortnally possessed by any curtent ciTy�employe�? Yes No � Explain all yes answers on separate sheet and a[tach to green shee[ INITIATINC PROBLEM, ISSUE, OPPORTUNiT�' (�'�'ho, What, When, Where, Why): All the funds previously allocated for the Comprehensive Housing Real Estate program have been committed and there is a growing waiting list of landlords who are interested in completing rehabilitation projects on their rental property. ADVANTAGESIFAPPROVED: , Rental property will receive health/safety improvements and/or defened maintenance improvements. ( � i ! ; DISADVANTAGESIFAPPROVED. None �PR 3 � ���'� Y PeTTORNE DISADVANTAGES IF NOT APPROVED' These rentai properties will continue to deteriorate TOTAL 9MOCNT OP TRANSACTION: S 25Q000 COST/REVENOE BUDGETED: ���� �+��t� FONDPVG SOURCE: The transfer of fi!nds from P6-7 00-98005-0541-00661 ACTA'ITY NUMBER: To P6-]00-96004-0�84-00518 e � FRVANCIAL INFORMATION: (EXPLAIN) _� �'i��', +''��S g 2QQ� � � i ✓ DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Brian Sweeney, Director CTTY OF SAII�IT PAUL Norm Colemam, Mayor Apri125, 2001 To: Councii President Bostrom Councilnnember Benanav Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lantry Councilmember Reiter Fr: Re: Brian Sweeney 25 West Fourth Sbeet Saint Paul, MN i5102 o t -.s39 Telephone: 651-266-6655 Facsimile: 651-228-3267 Request for City Council Approval of a Resolution Authorizing the transfer of $250,000 from the Greater Frogtown Facelift Loan Fund to the Comprehensive Housing Real Estate Fund. Purpose On behalf of the Greater Frogtown Community Development Corporation's (GFCDC) Board of Directors, Jill Nikodym has requested that $250,000 be transferred from the Frogtown Facelift Program into the Comprehensive Housing Real Estate fund, more commonly lrnown as the Rental Rehab Incentive Program. Background Information The Rental Rehab Incentive Pro�g am provides loans up to $26,900 to owner-occupied landlords, and loans based on inveshnent to non-owner occupied landlords. The incentive portion of the owner-occupied loans is 2/3 of the total loan, 1/3 of which is forgiven over five years and the other 1/3 due upon the sale of the property. The remaining 1/3 is amortized. For non-owner occupied rental properiy, the landlord is required to invest 1/4 of the rehabilitation cost and in retum they will receive another 1/4 of the cost in a loan forgiven over five years and the remaining %2 amortized at 5 1/4-percent interest. K\SIiARED\Hawkinso\GFCDC\CiTy CouncilMemoRentalRehab.wpd 1 ot-53' The Frogtown Facelift Home Rehab Loan rp O�cam provides toans up to $26,000 for interior and exterior health/safety and deferred maintenance improvements. To ensure the financing is affordable to low income families, 1/3 of these secured funds are amortized over 7-9 years at 5% interest, 113 is forgiven over five years, and 1i3 is due upon sale. Although the Facelift program has either spent or committed the $300,000 received through the CIB process in 1998 and 1999, GFCDC just entered into a contract for $300,000 additional dollazs for this program and will receive $255,000 more in June. An additional $108,991 in Facelift funds was received in 1999 for Capitol Heights but remains uncommitted despite aggressive mazketing efforts. Conversely, due to the popularity of the Rental Rehab money, GFCDC has either spent or committed the $180,000 that was available for this program. In hopes of receiving additional funding, they have created a lengthy waiung list of interested landlords. StafFis requesting the City Council adopt a resolution supporting the transfer of $250,000 from the Frogtown Facelift Loan Fund to meet the demand of the Comprehensive Housing Real Estate, or Rental Rehab, program.. Recommendation A resolution is attached for the City Council consideration. Attachments Resolution Authorizing Application to the Metropolitan Council `s Tax Base Revitalization Account. Sponsored by: Commissioner Blakey Prepazed By: Stephanie Hawkinson, West Team cc: Mayor Coleman Susan Kimberly K:\SHAREDQ-Iawkinso\GFCDC\CiTy CounciIMemoRentalRehab.wpd 2 O��GI�lAL Council File # 0� � S� Resolution # Green 5heet # i�\ b�6to RESOLUTION CITY OF SAINT PAUL, MINNESOTA Presented By Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 RESOLVED, that upon the recoi Paul does hereby approve the following Fund: Frogtown Facelift Loan Fund P6-100-98005-0547-00661 Comp. Housing Real Estate P6-100-96004-0584-00518 Totals CURRENT BUDGET $900,000.00 $ 15.542.07 $915,542.07 Committee: Date 3a bf the Mayor, the Council of the City of Saint to the Community Development Biock Grant CHANGE AMENDED BUDGET ($250,000.00) $250,000.00 $ 0.00 $650,000.00 $265.542.07 $915,542.07 Requested by Department of: Plannin & Econo .ic Develo ment By: � S C1C Form Approved by City Attorney Adopted by Council: Date �`3 pOt � /� � A � Adoption Certified by Counci Secretary By: ��`�-z /�1�'.�V�� By: � Approved by Mayor for Submission to Council Approved by Mayor: Date �l /sLUj , iJ % By: By: �Y � v DEPAR'IMEtil'/QFFSCtiC04NCIL: DATE IYITIATED GREEN SHEET Nor 111086 PED 4/24/O1 ' O l 5� S[ephanie Hat�kinson, 256b585 � IN[71.aLD.�1'E INt7'I.1tJUaTE 1 DEPARIMENT DIR CITYCOUNCIL ASSIGN ? C[TY ATl'ORNEY� _ CITY CLERK btIIST BE ON COUI�CIL AGENDA BY (DATE} hUbiBER _FINAhCIAL SERV D[R. _ FLNANCIAL SERVlACCTG FOR 3 MAYOR (OR ASST.) _ CIVIL SERVICE COMMISSION ROUTING µ'�T 7EAM (Kershaw) ORDER TOTAL # OF SIGNATURE PAGES _l_(CLIP ALL LOCA7IONS FOR SIGNA'['URE) acr[or izeQUesren: Greater Frob own CDC requests the transfer of $250,000 from their Greater Forgtown Facelift Loan Fund to their Comprehensive Housing Real Estate Fund, more commonly known as the Rental Rehab program. This resolution accomplishes that fund transfer. RECOMMENAATIONS: Approve (A) or Reject (R) PERSO\AL SERVICE CONTItACi'S MUST ANSW ER THE FOLLOW IIVG QUESTIONS: PLANNQ4G COMMISSION 1. Haz this person/Fcm ever worAed under a conhac[ for [his deparhnent? CB COMMITTEE Yes No CML SERVICE COMMISS[ON 2 Has this person/firm ever been a city employee? Yes No A S[aff 3. Does this person/firtn possess a skill no[ nortnally possessed by any curtent ciTy�employe�? Yes No � Explain all yes answers on separate sheet and a[tach to green shee[ INITIATINC PROBLEM, ISSUE, OPPORTUNiT�' (�'�'ho, What, When, Where, Why): All the funds previously allocated for the Comprehensive Housing Real Estate program have been committed and there is a growing waiting list of landlords who are interested in completing rehabilitation projects on their rental property. ADVANTAGESIFAPPROVED: , Rental property will receive health/safety improvements and/or defened maintenance improvements. ( � i ! ; DISADVANTAGESIFAPPROVED. None �PR 3 � ���'� Y PeTTORNE DISADVANTAGES IF NOT APPROVED' These rentai properties will continue to deteriorate TOTAL 9MOCNT OP TRANSACTION: S 25Q000 COST/REVENOE BUDGETED: ���� �+��t� FONDPVG SOURCE: The transfer of fi!nds from P6-7 00-98005-0541-00661 ACTA'ITY NUMBER: To P6-]00-96004-0�84-00518 e � FRVANCIAL INFORMATION: (EXPLAIN) _� �'i��', +''��S g 2QQ� � � i ✓ DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Brian Sweeney, Director CTTY OF SAII�IT PAUL Norm Colemam, Mayor Apri125, 2001 To: Councii President Bostrom Councilnnember Benanav Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lantry Councilmember Reiter Fr: Re: Brian Sweeney 25 West Fourth Sbeet Saint Paul, MN i5102 o t -.s39 Telephone: 651-266-6655 Facsimile: 651-228-3267 Request for City Council Approval of a Resolution Authorizing the transfer of $250,000 from the Greater Frogtown Facelift Loan Fund to the Comprehensive Housing Real Estate Fund. Purpose On behalf of the Greater Frogtown Community Development Corporation's (GFCDC) Board of Directors, Jill Nikodym has requested that $250,000 be transferred from the Frogtown Facelift Program into the Comprehensive Housing Real Estate fund, more commonly lrnown as the Rental Rehab Incentive Program. Background Information The Rental Rehab Incentive Pro�g am provides loans up to $26,900 to owner-occupied landlords, and loans based on inveshnent to non-owner occupied landlords. The incentive portion of the owner-occupied loans is 2/3 of the total loan, 1/3 of which is forgiven over five years and the other 1/3 due upon the sale of the property. The remaining 1/3 is amortized. For non-owner occupied rental properiy, the landlord is required to invest 1/4 of the rehabilitation cost and in retum they will receive another 1/4 of the cost in a loan forgiven over five years and the remaining %2 amortized at 5 1/4-percent interest. K\SIiARED\Hawkinso\GFCDC\CiTy CouncilMemoRentalRehab.wpd 1 ot-53' The Frogtown Facelift Home Rehab Loan rp O�cam provides toans up to $26,000 for interior and exterior health/safety and deferred maintenance improvements. To ensure the financing is affordable to low income families, 1/3 of these secured funds are amortized over 7-9 years at 5% interest, 113 is forgiven over five years, and 1i3 is due upon sale. Although the Facelift program has either spent or committed the $300,000 received through the CIB process in 1998 and 1999, GFCDC just entered into a contract for $300,000 additional dollazs for this program and will receive $255,000 more in June. An additional $108,991 in Facelift funds was received in 1999 for Capitol Heights but remains uncommitted despite aggressive mazketing efforts. Conversely, due to the popularity of the Rental Rehab money, GFCDC has either spent or committed the $180,000 that was available for this program. In hopes of receiving additional funding, they have created a lengthy waiung list of interested landlords. StafFis requesting the City Council adopt a resolution supporting the transfer of $250,000 from the Frogtown Facelift Loan Fund to meet the demand of the Comprehensive Housing Real Estate, or Rental Rehab, program.. Recommendation A resolution is attached for the City Council consideration. Attachments Resolution Authorizing Application to the Metropolitan Council `s Tax Base Revitalization Account. Sponsored by: Commissioner Blakey Prepazed By: Stephanie Hawkinson, West Team cc: Mayor Coleman Susan Kimberly K:\SHAREDQ-Iawkinso\GFCDC\CiTy CounciIMemoRentalRehab.wpd 2 O��GI�lAL Council File # 0� � S� Resolution # Green 5heet # i�\ b�6to RESOLUTION CITY OF SAINT PAUL, MINNESOTA Presented By Referred To 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 RESOLVED, that upon the recoi Paul does hereby approve the following Fund: Frogtown Facelift Loan Fund P6-100-98005-0547-00661 Comp. Housing Real Estate P6-100-96004-0584-00518 Totals CURRENT BUDGET $900,000.00 $ 15.542.07 $915,542.07 Committee: Date 3a bf the Mayor, the Council of the City of Saint to the Community Development Biock Grant CHANGE AMENDED BUDGET ($250,000.00) $250,000.00 $ 0.00 $650,000.00 $265.542.07 $915,542.07 Requested by Department of: Plannin & Econo .ic Develo ment By: � S C1C Form Approved by City Attorney Adopted by Council: Date �`3 pOt � /� � A � Adoption Certified by Counci Secretary By: ��`�-z /�1�'.�V�� By: � Approved by Mayor for Submission to Council Approved by Mayor: Date �l /sLUj , iJ % By: By: �Y � v DEPAR'IMEtil'/QFFSCtiC04NCIL: DATE IYITIATED GREEN SHEET Nor 111086 PED 4/24/O1 ' O l 5� S[ephanie Hat�kinson, 256b585 � IN[71.aLD.�1'E INt7'I.1tJUaTE 1 DEPARIMENT DIR CITYCOUNCIL ASSIGN ? C[TY ATl'ORNEY� _ CITY CLERK btIIST BE ON COUI�CIL AGENDA BY (DATE} hUbiBER _FINAhCIAL SERV D[R. _ FLNANCIAL SERVlACCTG FOR 3 MAYOR (OR ASST.) _ CIVIL SERVICE COMMISSION ROUTING µ'�T 7EAM (Kershaw) ORDER TOTAL # OF SIGNATURE PAGES _l_(CLIP ALL LOCA7IONS FOR SIGNA'['URE) acr[or izeQUesren: Greater Frob own CDC requests the transfer of $250,000 from their Greater Forgtown Facelift Loan Fund to their Comprehensive Housing Real Estate Fund, more commonly known as the Rental Rehab program. This resolution accomplishes that fund transfer. RECOMMENAATIONS: Approve (A) or Reject (R) PERSO\AL SERVICE CONTItACi'S MUST ANSW ER THE FOLLOW IIVG QUESTIONS: PLANNQ4G COMMISSION 1. Haz this person/Fcm ever worAed under a conhac[ for [his deparhnent? CB COMMITTEE Yes No CML SERVICE COMMISS[ON 2 Has this person/firm ever been a city employee? Yes No A S[aff 3. Does this person/firtn possess a skill no[ nortnally possessed by any curtent ciTy�employe�? Yes No � Explain all yes answers on separate sheet and a[tach to green shee[ INITIATINC PROBLEM, ISSUE, OPPORTUNiT�' (�'�'ho, What, When, Where, Why): All the funds previously allocated for the Comprehensive Housing Real Estate program have been committed and there is a growing waiting list of landlords who are interested in completing rehabilitation projects on their rental property. ADVANTAGESIFAPPROVED: , Rental property will receive health/safety improvements and/or defened maintenance improvements. ( � i ! ; DISADVANTAGESIFAPPROVED. None �PR 3 � ���'� Y PeTTORNE DISADVANTAGES IF NOT APPROVED' These rentai properties will continue to deteriorate TOTAL 9MOCNT OP TRANSACTION: S 25Q000 COST/REVENOE BUDGETED: ���� �+��t� FONDPVG SOURCE: The transfer of fi!nds from P6-7 00-98005-0541-00661 ACTA'ITY NUMBER: To P6-]00-96004-0�84-00518 e � FRVANCIAL INFORMATION: (EXPLAIN) _� �'i��', +''��S g 2QQ� � � i ✓ DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Brian Sweeney, Director CTTY OF SAII�IT PAUL Norm Colemam, Mayor Apri125, 2001 To: Councii President Bostrom Councilnnember Benanav Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lantry Councilmember Reiter Fr: Re: Brian Sweeney 25 West Fourth Sbeet Saint Paul, MN i5102 o t -.s39 Telephone: 651-266-6655 Facsimile: 651-228-3267 Request for City Council Approval of a Resolution Authorizing the transfer of $250,000 from the Greater Frogtown Facelift Loan Fund to the Comprehensive Housing Real Estate Fund. Purpose On behalf of the Greater Frogtown Community Development Corporation's (GFCDC) Board of Directors, Jill Nikodym has requested that $250,000 be transferred from the Frogtown Facelift Program into the Comprehensive Housing Real Estate fund, more commonly lrnown as the Rental Rehab Incentive Program. Background Information The Rental Rehab Incentive Pro�g am provides loans up to $26,900 to owner-occupied landlords, and loans based on inveshnent to non-owner occupied landlords. The incentive portion of the owner-occupied loans is 2/3 of the total loan, 1/3 of which is forgiven over five years and the other 1/3 due upon the sale of the property. The remaining 1/3 is amortized. For non-owner occupied rental properiy, the landlord is required to invest 1/4 of the rehabilitation cost and in retum they will receive another 1/4 of the cost in a loan forgiven over five years and the remaining %2 amortized at 5 1/4-percent interest. K\SIiARED\Hawkinso\GFCDC\CiTy CouncilMemoRentalRehab.wpd 1 ot-53' The Frogtown Facelift Home Rehab Loan rp O�cam provides toans up to $26,000 for interior and exterior health/safety and deferred maintenance improvements. To ensure the financing is affordable to low income families, 1/3 of these secured funds are amortized over 7-9 years at 5% interest, 113 is forgiven over five years, and 1i3 is due upon sale. Although the Facelift program has either spent or committed the $300,000 received through the CIB process in 1998 and 1999, GFCDC just entered into a contract for $300,000 additional dollazs for this program and will receive $255,000 more in June. An additional $108,991 in Facelift funds was received in 1999 for Capitol Heights but remains uncommitted despite aggressive mazketing efforts. Conversely, due to the popularity of the Rental Rehab money, GFCDC has either spent or committed the $180,000 that was available for this program. In hopes of receiving additional funding, they have created a lengthy waiung list of interested landlords. StafFis requesting the City Council adopt a resolution supporting the transfer of $250,000 from the Frogtown Facelift Loan Fund to meet the demand of the Comprehensive Housing Real Estate, or Rental Rehab, program.. Recommendation A resolution is attached for the City Council consideration. Attachments Resolution Authorizing Application to the Metropolitan Council `s Tax Base Revitalization Account. Sponsored by: Commissioner Blakey Prepazed By: Stephanie Hawkinson, West Team cc: Mayor Coleman Susan Kimberly K:\SHAREDQ-Iawkinso\GFCDC\CiTy CounciIMemoRentalRehab.wpd 2