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266641 WHITE - CITV CLERK COUI1C11 2�1�� PINK - FINANCE GITY O AINT PALTL �Z CANARV - DEPARTMENT �IYV BLUE �MA�(OR� � . Fll@ NO. ' ' � o tion � � ; Presented By v Referred To o ittee: Date Out of Committee By Date WHEREAS� The Council of the City of Saint Paul adopted Council File No. 264630 on November 21, 1974, approving the Saint Paul Rehabilitation Loan and Grant Program Concept and Guidelines and assigned the administration of the Housing Rehabilitation Program to the Housing and Redevelopment Authority of the Ca.ty of Saint Paul; and WHEREAS� The Council adopted Council File No. 266548 on December 23, 1975, amending the said Rehabilitation Loan and Grant �rogram Concept and Guidelines and has now been requested to further amend the said Gua,delines as follows; now, therefore, be it RESOLVED, That the Council of the City of Saint Paul does hereby further amend the Rehabil9.tation Loan and Grant Program Concept and Guidelines as follows: Page 5 add: 24. N�HF'A. Means the Minnesota Housing Finance Aqencyr as authorized by Minnesota Statutes Chapter 462A to implement, administer and otherwise carry out the provisions of the State rehabilitation loan and grant program as authorized by and consistent with Chapter 462A and implementing federal, state and local rules, zegulations, procedures, guidelines and agreements. � 25. 1�HFA Rehabilitation Loan and Grant Program. For purposes of these guidelines refers to the Minnesota Housing �inance Agency or state rehabilitation loan and grant program authorized by Minnesota Statutes, Chapter 462A, � COUNCILMEN Requested by Department of: Yeas Nays Christensen Yk�cxa Hunt In Favor Levine ��L/�G�-u�s.-� o� Rcedler Against BY Sylvester Tedesco t� � President� HOZZSt�-. Form Approved by ity ttorne ° Adopted by Council: Date 1 � 1 � Certified Passed by Council Secretary BY By ' Approved by Ma,yor: Date Approv by May o t Co il � By BY r . , ��I��1�; ,,� � . Page 2. 26, A�HFA RehaBa:l�:tat�on Loan, Means a loan under the M�k'�1, �eha8�tli,tat�.on 1.oan and grant program to �1i.g�.ble appl�.cants �ox e1i,g.�b1e ai.mprovements as - tho�e te.�ms are def�ned and used in M�,nnesota Statutes, � Chapter 462� i�plement�ng MHF� and `federal rules �egulati,ons� procedures and guideiines; and agreements betweer� the MHFA and the Author�.ty entered into pursuant to these guidel3nes and law. Page l0� a�tex item 11 add a new item to read: 12. � Cf,ty xehabilitation grant may also be approved i.rt con�unc.tion with a MHFA rehabi.litation loan,, issued by the Authority. To be eli.gible for such a C�.ty rehabi,litativn gr�nt� an applicant must be an eligible loan recipient and �nust have an income which places � �he eligible loan recXp3.ent in' the "]:ow income'° or the "1�+�e�t�' intkome cate�gori�s as set ��x�th in the . . "l�c��u�ted �ross Annual �iousehold Tncame'��'�portion of " t�ese g��.�delines. Such_ City rehabi�.itation grants shall be nsed solely to reduee the amount of the MHFA ��l�.ahi_lit,ation lo�rn pr�nctpal to� an amount wh�ch would - resu3t 3n a morithly� ��pay�ztent �mount substantially equiva-- • lent to the amaunt sa�ch eligible loan recipient can a��ord� rec�uests and would �e requfred to pay under a C,ity rel�b,�litat�on 1oan, for an equivalent term of . - xeaxs and �t an interest rate determined by applyzng the "Annual Adjusted Gross Household Tncome Ca�tegories" to the i.ncome o� the e1ig�,ble lgan recipient. Provided furtIa�er, �hat no such grant shall exceed $2,OQ0 and that a��ordabi,lity and eli#�iY�a.l.atty sha11 be determinefl by ap�l�-cat�,on o� MHFA and federal rules� regulations; �rocedures, guideli.nes .and agreements .entered into with � the Autho�ity. Such C�.ty rehabilitation grants �hall not be subject to t#�e .prov3;sions of pasagraph 11 above, and the is�u��ce of such grant shall not render an otherwise el�,gible grant recipient ineligible for a City rehab- ilitation grant. * � , . �;; : .� . WHITE - CITV GLERK -J�� PINK - FINANCE GITY OF .SAINT PAITL Council �� CANqRV - DEPARTMENT File NO. B L U E -r.M A,Y j>R� � >� � Council Resolution Presented�By Referred To Committee: Date Out of Committee By Date Page 3, Pa,ge 14, item 4 at the end of the paragraph add: Also consistent with and to the extent provided by law, to cooxdtnate with and enter into agreements with the N�HFA concerning the use o� the MHFA rehabilitation loan and grant program and mon�.es� and to issue MHFA rehabilitation loans and grants to eligible applicants for eligible improvements as those terms are def ined �nd used in Minnesota Statutes, Chapter 462A; imple- menta,ng MHFA and federal rules, regulations, procedures and guidelines; and agreements between the MHFA and the Authority. COUIVCILMEN Requested by Department of: Yeas Nays Christensen � Hunt In Favor Levine p Rcedler Against BY Sylvester "'Yed��e� President�� HO Z Z d �N '� �j �� Form Approved by Ci At orney Ado t nci : Date Certifi d Pa un ' ecret�ry BY By _ _ Approved ayor: ate 97� Approv May to oun '1 By By � � a t9 PINK - FINANCE�^ G I TY OF SA I NT PA V L COUIICII . � . CANAR.Y - DEPARTMENT � BLUE - MAVOR File NO. . Council Resolution �� Presented By . Referred To Committee: Date Out of Committee By Date WHERE�5� The Council of the City of Saint Paul adopted Council File No. 264630 on November 21, 1974, approving the Saint Paul Rehabilitation Loan and Grant Program Concept and Guidelines and assigned the administration of the Housing Rehabilitation Program to the Housing and Redevelopment Authority of the C�ty of Saint Paul, and WHEREASr The Council adopted Council File No, 266548 on December 23, 1975, amending the said Rehabilitation Loan and Grant Program Concept and Guidelines and has now been requested to further amend the said Guidelines as follows; now, therefore, be it RESOLVEDr That the Council of the City of Saint Paul does hereby further amend the Rehabilitation Loan and Grant Program Concept and Guidelines as follows: Page 5 add: 24. M,HFA,. Means the Minnesota Housing Finance Agency, as authorized by Minnesota Statutes Chapter 462A to implement, administer and otherwise carry out the provisions of the State rehabilitation loan and grant program as authorized by and consistent with Chapter 462A and implementing federal, state and local rules, regulations, procedures, guidelines and agreements. 25. MHFA Rehabilitati:on Loan and Grant Program. For purposes of these guidelines refers to the Minnesota Housing Finance Agency or state rehabilitation loan and grant program authorized by Minnesota Statutes, Chapter 462A. COUNCILMEN Yeas Nays Requested by Department of: Christensen �xa Hunt [n Favor Levine Sylvester A gainst BY � Tedesco +� President �Ld�t HOZZa ; i Form Approved by City ttorney ; Adopted by Council: Date �, � Certified Passed by Council Secretary BY �� ' BY �� Approved by Mayor: Date Approved by Mayor for Submission to Council By BY ' . ,��1 Page 2. 26. MHFA Rehabilitati�n Loan. Means a loan under the MHFA rehabzlitat,ion ].oan and grant program to eligible applicants for eligible ,improvements as those terms are defined and �used in Plinnesota Statutes, Chapter 462A; implementing MHFA and federal rules - � regulat�,ons, procedures and guzdelines; and agreements between the MHFA and the Authority entered into pursuant to these guidelines and law. Page 10, after item 11 add a new item to read: 12. A City rehabilitation grant may also be approved in conjunction with a P�HFA rehabilitation loan, issued by the Authority. To be eli,gible for such a City rehabilitation grant,. an applicant must be an eligible loan recipa.ent and must have an income which places the eligible loan recipient in the "low income" or the "low-moderate" income categories as set forth in the "Adjusted Gross Annual Household Income" portion of these guidelines. Such City rehabili-tation grants shall be used solely to reduce the amount of the MHFA rehabilitation loan principal to an amount which would result in a monthly repayment amount substantially equiva- lent to the amount such eligible loan recipient can afford, requests and would be required to pay under a City rehabilitation 1oan� for an equivalent term of years and at an interest rate determined by applying the "Annual Adjusted Gross Household Income Categories" to the i,ncome of the eligi,bl.e loan recipient. Provided further, that no such grant shall exceed �2, 000 and that affordability and eligibility shall be determined by appla�cation of MHFA and federal rules, regulations, procedures, guidelines and agreements entered into with the Authority. Such City rehabilitation grants shall not be subject to the provisions of paragraph 11 above, and the issuance of such grant shall not render an otherwise eligible grant recipient ineligible for a City rehab- ilitation grant. 4$ � PINK_ - FINANCE GITY OF SAINT PALTL Council . CANqR)' - DEPARTMENT � F1Ie NO. BLUE - MAYOR � � . ,. Council Resolution � 2t��41 Presented By Referred To Committee: Date Out of Committee By Date Page 3. Page 14, item 4 at the end of the paragraph add: Also consistent with and to the extent provided by law, to coordinate with and enter into agreements with the MHFA concerning the use of the MHFA rehabilitation loan and grant pro�ram and monies, and to issue MHFA rehabilitation loans and grants to eligible applicants for eligible i.mprovements as those terms are def ined and used in Minnesota Statutes, Chapter 462A; imple- menting MHFA and federal rules, regulations, procedures and guidelines; and agreements between the MHFA and the Authority. COUNCILMEN Yeas Nays Requested by Department of: Christensen � �x'd Hunt In Favor Levine Rcedler �_ Against BY Sylvester �- President� HOZZa J�N 1 5 t976 Form Approved by Ci�,y At orney ;� Adopted by Council: Date `� � ' Certified Passed by Council Secretary BY �` .. By `'�._____� � _ Approved by Mayor: Date Approved by Mayor fo�bmission to Council By BY OM O1• 12/1975 , ' EXPLANATION OF ADMINISTRATIVE ORDERS, RESOLUTIONS, AND ORDINANCES � �� Date: J an uary 13, 1976 TO: THOMAS J. I�ELLEY, CITY ADMINISTRATOR , FR: Mr. William Q. Patton RE: City Council Resolution Amending t[�e Rehahilitation Loan and Grant Concept and Guideiines ACTION REQUE5TED: Submission to Mayor and City Counci( for approval . PURPOSE AND RATIONALE FOR THIS ACTION: Tfiis action would arnend the Rehabilitation program guidelines to roaLce comroun[ty developmenfi funds availabfe to subsidize the cost of t�ie Minnesota Housing Finance Agency bond program, so that the effectCve interest rate can be reduced to 4� and 6�, respectfiuily, for loan applicants. TE�is proposai was approved by the Mayor's Rehabifitation Adviso ry Comroittee at tE�eir Decem6er roeeting. ATTACHMENTS: City Counci ( resol ution and copy of Rehabi I itation Loan and Grant Prograro Concept and Guidelines. APPROVAL: Thomas J. Kelley, City Administrator '�# �� _ - . .. .. ��a -I': - , 1 ; x�.i ��k�-._ ,�. _ � �: -._ k a �.� � Y � � r � . ..� . � .�, : : ..: . .. ' : �. ry� , � . :% '` � ., :. 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V � � � .* - r 7 �' ...'�' `�� , �� a'� � F g,., .. _. �� ,dS;�. � p,� 'ks � A ir *. �:;' ,..eY t` _ ' 4t� � �� ) Y:f . y� � `�'� � #< a r 1�� '�k '` 5� � 5 '� .. .. . . � } _ � � ��7 , � ��? � ;., �x� t � � x � � ��. . 4ti.�. . r �-z� �.�,.�,.,�, „ { �� ' . . , , r....� : � . _- . . r�r. ,.:. . , �r '�. . .: ' . i � 1 k+L ..... _.. . �i�. .� . w . . . dy:. ; . .�. � :... . �.-� . ... .,w��. .. . i.b..,_+a...a,x<�'s �C.. ��i FR . .. .. . . . . .. .. s�_ .. .�... .. �. a , ��:1�� CITY OF SAINT PAUL REHABILITATION LOAN AND GRANT PROGRAM CONCEPT AND GUIDELINES Approved by City Council Resolution No. 264630, November 21, 1974. Definitions For purposes of these guidelines, the terms defined in this section have the meaning ascribed to them. � 1. Housing related expenses. Means the normal and ordinary expenses related to homeownership, including, but not limited to, principal and interest paid on any outstanding indebtedness, including the principal and interest paid on a City rehabilitation loan, used to finance the purchase, construc- tion, improvement, or rehabilitation of residential housing and related taxes, special assessments, insurance, maintenance costs, utility expenses and the like. 2. Neigtiborhood rehabilitation project plan. Means a plan developed in whole or part by a neighborhood organization or association or a nonprofit or redevelopment corporation for the concentrated rehabilitation of a specified neighborhood area within the City of Saint Paul and approved by the Plannin�; Commission and City, Council. For further explanation see Appendix I. 3. Neit�hborhood rehabilitation program Means a program, prepared and/or considered by the City Planning Department and approved by the Planning Commission and the City Council, for concentrated rehabilitation within specific geographic areas. Such a program may be based in whole or part on approved neighborhood rehabilitation project plans. For further explanation, see Appendix I. 4. Authority. Means the Housing and Redevelopment Authority, as designated by the City .Council, pursuant to Minnesota Laws, 1974, Chapter 351, Minn. Stat. 462.445 (4) (2) and 462.581 (8) , and other provisions of Minn. Stat. 462.415 to 462.711 to cooperate with and act as an agent for the City of Saint Paul in implementing, administering and carrying out the provisions of the City of Saint Paul rehabilitation loan and grant program as authorized by and consistent with Chapter 351 and these program guidelines as adopted by the City Council. k 5. Owner-Occupant. Means persons or families who are the fee owners or contract for deed purchasers of eligible properties and who occupy and, pursuant to Minn. Stat. Ch. 273, homestead such property. 6. Persons and families of low and moderate income. Means those natural persons or families whose income is within the following income limits and categories. For purposes of this Act, families shall include nonblood related adults and tenant cooperatives. s ANNUAL ADJiJSTED GROSS HOUSEfIOLD INCOME CATEGORIES Low Interest Pliddle Interest Upper Interest Loan (%) Loan (%) Loan (%) Family Size (Low Income) (Low-Moderate Income) (Moderate Income) 1 person up to $ 7,200 $ 7,201 to $13,650 $13,651 to $14,500 2 persons up to $ 8,750 $ 8,751 to $13,650 $13,651 to $15,000 3 persons up to $10,�00 $10,001 to $13,950 $13,951 to $15,500 4 persons up to $10,300 $10,301 to ;,14, ,25d $14,251 to $16,OOQ 5 persons up to $11,850 $11,851 to $14,550 $14,551 to $16,500 6 persons up to $12,15� $12,151 to $14,850 $14,851 to $17,000 7 persons up to $12,500 $12,501 to $15,150 $15,151 to $17,500 8 persons up to $12,800 $12,801 to $15,450 $15,451 to $18,000 9 persons up to $13,100 $13,101 to $15,750 $15,751 to $18,500 10 persons (or more) up to $13,400 $13,401 to $16,050 $16,051 to $19,000 7. Income. P4eans for purposes of these guidelines the term "annual adjusted gross household income" (see definition 6 above) and includes the gross annual income frum all sources and before taxes or withholding of each person or member of the family residing in the household except that there shall be excluded: a. The income of any family member (other than the head of the household or his or her spouse) who is under eighteen years of age or is a full- time student; b. The first $300 of the income of secondary wage earners other than those included in paragraph 7a above; c. An amount equal to $300 for each member of the family residing in the household who is under eighteen years of age or who is eighteen years of age or older and is disabled or handicapped and is not a full-time wage earner, as determined by the Authority, or a full-time student; d. Nonrecurring income, food stamps and other non-monetary income, as determined by the Authority, and payments to volunteers under the "Domestic Volunteers Service Act of 1973," Public Law 93-113, October 1, 1973; e. Five per centum of the person or family's gross income (ten per centum in the case of elderly persons or families) ; f. Such extraordinary medical or other expenses as the Authority approves for exclusion including, but not limited to, all expenses incurred by working parents or parent for child care in a licensed child care facility; g. An amount equal to the sums received by the head of the household or his or her spouse from, or under the direction of, any public or private nonprofit child placing agency, for the care and maintenance of one or more persons who are under eighteen years of age and were placed in the household by such agency. _ 2 _ �� 8. EliQible loan recinients. Means those �persons or families of low and moderate income who are owner occupants of eligible properties and meet other requirements and qualifications for a City rehabilitation loan as set forth in these guidelines. 9. Elir�ible srant recinients. Means those peraons or familiea of low income who are owner occupants of eligible prope�ties and meet other requirements and qualifications for a City rehabilitation grant as aet �orth in these guidelines. 10. Citv rehabilitation loan. Means a loan made to eligible loan recipients for eligible improvements and/or refinancing of existing indebtedness under the City rehabilitation loan and grant p�rogram aad includes loans financed by "leveraging" and the use of bond proeer�ds,�; btit dt�es not include those loans financed by "reserving." 11. City rehabilitation �rant. Means a graat :to aa eligibl� gr.ant recipient for eligible improvemeats under the C�y reh��t��i�t�ti,aa� �.,tand grant program. 12. Eli�ible nrouerties. Means residential housing and real property which conta.ins eight (8) dwelling units or lesa; meets the requirements set forth in the "Eligible Properties" section af theee guidelines; atid is owned and occupied by an eligible loan or grant recipient. 13. EliAible imvrovements. Means the repairs, rehabilitation, reconstruction, conversions, modernization, replacement, remodeling, alternation or i�rovemeats to eligible properties which are authorized to be made under a City rehabilitstion loan or :grant as set ,�orth in the "eligr�ble improve- mente and expenditures" section of these guidelines. 14. I�nediate health and sa etv hazards. Means thoae violations of applicable codes which msterially aad iumu�diately endanger the health and sefety of occup�nts of •the beiilding invalved. Such violatione include, bY.it sre not limited to: a. Heating systems that are unsafe due to: burned otiit or rusted out heat exchanges (fire box) ; burned out, or plugged fltses; not being vented; being connected with unsafe gas supplies; or beit�g incapable of adequately heetiu,g the lfving epatc�e. ., . _ : �- ; ;a .. � - 3 - b. Water heaters that are unsafe due to: burned out or rusted out heat exchanges (fire box) ; burned out, rusted out, or plugged flues; not being vented; being connected with unsafe gas supplies; or lack of temperature and pressure relief valves. c. Electrical systems that are unsafe due to: dangerous overloading; damaged or deteriorated equipment; unproperly tapped or spliced wiring; exposed uninsulated wires; distribution systems of extension cords or other temporary methods; ungrounded systems, ungrounded appliances in cotttact with earth. d. Plumbing systems that are unsanitary due to: leaking waste systems, fixtures and traps; lack of a water closet, lack of washing and bathing facilities; or cross connection of pure water supply with fixtures or sewage lines. e. Structural systems, walls, chimneys, roofs, foundations, ceilings, and floor systems, that will not safely carry imposed losds. f. Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste, other meterials rendering it unsanit�ry for hu�aan • occupancy, including lack of light or air. g. Infestation of rats, insects, and other vermin. h. All existing handrails that are not permanently and solidly mounted to provide safe service. i. Lead paint that is peeling, chipping or exposed in areas that may be hazardous to children and others. j. Conditions of windows, doors and other electrical, mechanical and structural items that are conduaive to fire and safety hazards. 15. General Imurovements. Sha11 only include additions, enlargements, renovations or remodeling of existing rooms or structures, interior and exterior painting, decorating and outdoor remodeling, or the provision for a garage or fence; and the finishing of spaces within the property such as an attic, porch or basement. The addition of a complete new function or room will only be permitted where required by Code. Except as provided above, general improvements shall not include materials, fixtures, equipment or landscaping of a type or quality which exceed that custrnnarily used in the locality for properties of the same general type as the property to be rehabili- tated. General improve�nts shall also include kitchen equipment of a pern�anent nature, including stove and refrigerator and the acquisition of contiguous property, necessary to provide an adequate site for the structure. - 4 - ` ��'� ' 16. Codes. Means applicable state, county or. city health, housing, building, fire prevention, housing maintenance, and zoning codes and other public standards applicable to housing, as determined by the City Council and the Authority. 17. Leveraging. Includes, for purposes of these guidelinea, the terms "leverage" or "leveraged" and refers to the proceas, whereby the Authority borrows monies from private lenders or the MinneBOta Housing Finance Agency (herein- after MHFA) to be used to make City rehabilitation loane and/or for refinancing of existing indebtedness under the City rehabilitation loan and grant program. 18. City rehabilitation loan and grant program. For purposes of these guide- lines refers to the City of Saint Paul rehabilitation loan and grant program authorized by Minnesota Laws, 1974, Chapter 351. 19. Reserving. Includes, for purposes of tlieae guidelinea, the terms "reserve" or "reserved" and refers to the process, whereby the Authority acting on behalf of ttie City of Saint Paul and with City Council approval, requests that a portion of rehabilitation funds, available through the NgiFA rehabilitation loan and grant program, be aet aside for use in a specific geographic area. Such geographic area may include the entire City of Saint Paul and/or specific neighborhood areas identified as part of an approved neighborhood rehabilitation program, 20. Bond proceeds. Means those monies, to be used to assiet in financing the City rehabilitation loan and grant program and available as a result of the issuance and sale of general obligation bonda of the City of Saint Paul, pursuant to Minnesota Laws, 1974, Chapter 351. 21. Redevelopment Corporation. Means limited dividend corporatio�s created pursuant to Minn. Stat. 462.591 to 462.711. 22. Contract. Means a written agreement to g�rform eligible improvement work. EliRible Persons and Families 1. To be eligible for a City rehabilitation loan, applicants must be persons or families of low or moderate income; owcter-occupante of reeidential housing; must have the ability to repay the loan; and are "acceptable credit risks" as determined by the Authority or its deaignee. Applicants with poor credit histories may be eligible if acreening show sufficiently extenuating circumstancee in an applicant's credi,t bs�t+ot,yior �d income patterns to give reasonable assurance of ability to repay the l�an. 2. To be approved for a City rehabilitation loan or grant, the Authority must first of all determine that the applicant is unable to afford and . aecure rehabilitation funds from other sources, including pr:ivate lender programs at market interest rates, the Federal 312 and 11S r�$abilitati.on � , t;,. _ 5 _ lc,an and grant pro�rams and the Minnesota FIousing Finance Agency rehahilitation loan and grant program. This determination shall be based on the availability of re}►abilitation funds from such other sources; the eligibility of the applicant for such funds; and shall be further based on sufficient data showing that a rehabilitation loan, for comparable correction of code violation work, from other sources, would result in the applicant's housing related expenses being beyond 25% of his or her income. If it appears that an applicant is able to afford and secure rehabilitation funds from other sources, the Authority shall refer the applicant to the appropriate source or sourees. After referral, if an otherwise eligible applicant can demonstrate that he or she is not able to secure rehabilitation funds from other sources, such applicant may then be approved for a loan and/or grant. 3. In the event an applicant for a City rehabilitation loan and/or grant shall be rejected, the Authority shall furnish a written statement to the applicant specifying the reasons for such re,jection and the applicant's right to an appeal and independent review and determination if the appli- cant feels he or she is aggrieved by the decision and/or application of these guidelines and the manner and time in which to do so. Eligible Properties 1. The property must not be a nonconforming use under the City's Zoning Ordinance and the use must be permitted under an ,Urban Renewal or Development District Plan if located in such an area. 2. A property shall not be eligible if it has been identified for public acquisition for which funding is presently available unless that property is being formally reexamined for potential rehabilitation, in which case waivers shall be considered. Upon request by the owner of such property and •aith the consent of the acquiring agency, the property may be formally reexamined for potential retention in which case waivers shall be also considered. Properties which are identified for conditional or possible acquisitions are eligible. 3. The property must be at least ten years of age or in need of repair to correct damages resulting from a natural disaster. 4. After rehabilitation, the property must be insurable through an established public or private insurance program. Eligible Improvements and Expenditures 1. City rehabilitation loans shall be made primaril� to rehabilitate eligible properties so that they are in compliance with applicable code requirements. 2. Bringing an eligible property into full compl�iance with applicable codes shall be required as a condition to making a City rehabilitation loan or grant, except if an applicant cannot afford to correct all code violations. This determination shall be based on sufficient data showing that a City rehabilitation loan and grant, to the extent an applicant is eligible, for - 6 - ' �� correction of all code violation work and eligible general improvements� allowed in item ��5 below, would result in the applicant's housing related expenses bein� beyond 25% of his or her income. 3. As a condition for receiving financial assistance under the City rehabilitation Loan and grant program or any other public prqgram, including, but not limited to, the Federal 312 and 115 rehabilitation loan and grant program and the MHFA rehabilitation loan and grant pro- gram (including funds "reserved" by the authority), administered in whole or in part by the Authority, the applicant shall call upon .the Authority in conjunction with Community Service Housing Code Inspection Department to provide an inspection and written evaluation asaess,ing and outlining all violations of applicable codes, necessary to be corrected if the property is to be in full compliance with appliceble codes and further assessing and outlining, when requested by the applicant, other repair, rehabilitation or improvement items that are eligible improvements under the City rehabilitation Loan and grant pro- gram or any other public program administered by the Authority. This inspection and evaluation shall not be a mechanism which will require tt:e applicant, except as• provided in item 2, abov,Q., to bring pxoperty into full compliance with applicable codes and legal action and assistance will be taken only on those violations of applicable cod4s that immediately and materially endanger the health and safety of the occ��pnts of the eligible property, as this standard is defined a�d itrterpreted in Minn. Stat. Sec. 566. 18 (6). 4. To the extent an applfcant is eligible for, can affoxd,.� and requests a City rehabilitation loan end is eligible for a City reh$bilftation grant, such loan and grant proceeds shall first be used to correct violations of applicable codes whi�h constitute imnediate health and satety hazards. S. If all violations of applicable codes which constitute immediate health and safety hazards are corrected under City rehabilitation loan and/or grant then eligible rec.ipient may use up to 20% of the total loan amoant„ he or she is eligible for, can afford and .:requests, und�r this program, for eligible general improvements. T'he retiai�ider of ��y such loan amount must be expended to rorrect vfolations of epplLCable codes. If all code violationa are to be corrected under a City rehabilitation loan and/or grant, then the eligible recipient taay, use up to 40% � the total loan amount he or she is eligible for, can a��prd:, and, �ueat"s, for eligible general improvements. � 6. Upon the request of an eligible loan and/or grant rec�pient, the Authority � may make City rehabilitation Loans (includir�g refinancing) �that will result in the recipient's housing related ��cpet��es be�ig be�*�u,d 25� of his or her income, if the Authosity deternt�.iz�s �thi�t the recipient csn reasonably afford such loan amounts. „ 7. City rehabilitation grants shall only be approved to provide financing for the correction of violations of itrnnediat• �ealth $ad i� aarda. �. - �� '� 8. All work perfoimed must meet applicable �od�e�. � " i ' " r �' . , 9. Preference shall be g�ven to rehabilitatioti'work that.�lecrea•ses or does not significan�ly increas� conaumption of energy and natural reaotzrces. _ 7 _ .� Rehabilitation Loan and Grant Terms. l. The interest rate of a City rehabilitation loan shall be determined by applying the "adjusted gross annual household income" categories to the income of the eligible loan recipient. The Authority, from time to time, based on the interest rate incurred on monies "leveraged" by the Authority and the availability of bond proceeds to pay "interest differentials" as that term is used in this Act, shall determine what the interest rate will be for each of the "ad�usted gross annual household iqcome" cate- gories but in every event such interest rate shall be established at a 2 point interest differential between each category with the "low income" category receiving the lowest interest rate; the "laa-moderate" i,ncome category receiving the second lowest interest rate; and the "moderate income" category receiving the highest interest rate. The Authority shall review these "annual adjusted gross household" i.ncome figures from time to time in order to recommend adjustment `to the City Council. 2. In the event the housing related expenses, including the payment required for the principal and interest of a City rehabilitation loan, of .the eligible loan recipient exceed 25% of the recipient's inc ane, the interest rate of the rehabilitation loan shall be reduced to the next Lawest interest rate category. Eligible loan recipients, whose fncome is in the "upper interest loan-moderate income category," shall not however be eligible to have the interest rate on their rehabilftation loan reduced to lower interest rate categories. 3. Maximum loan teYms, except in the cases of refinancing, shall be for twenty years or the remaining economic Life of the eli�,ible property, whichever is less, as deterniined by the AutfliorYty. Lo� all� cases, approved loan recipients shall be encou�r�tged to �re�'#rr Loai�s as ra�idly as their incanes will allow. ' • � 4. There shall not be any prepayment penalty in the eve�t a City r,el�abilitation loan is prepaid at a date earlier than scheduled' in" t�e loaq ag'�iuent. 5. Except as provided below, all City rehabi'litation lo�n� mu�t be seCured by a mortgage or other recorded lien or appropriate document �ig�inst the eligible property. Rehabilitationloana to Cbntiract l�or '�3ei� purchasers must either be: a. Included as part of the reffnancing of �exiating iadebtedneas ,�� provided for in these guidelines, wi�Ei a mortgage:Fas security;, b. Secured by the contract vendor's written agreement, included ,�,n the written terms of the ap"proprfate lien or other docun�ent, tq � - ordinate his or her legal and equitable intg�est itt the prpp�s�y to that of the Authority; � ,� c. Secured by a note, lien or other apprbpriste` docweent on� t�ie contract vendee's equitable equitable interestr in the �l�g�►Le,.��opert�►.., If the eligible loan recipient is providing�a' laqd sales coittracE� ae security, it must be recorded. An approved loan reci�?�ent �hall:npt transfer the property during the term of"the loan wiEhout tli� cc�ieent ' of the Authority. Notwithstanding any o� �he��bove�p�vis��e �;�he , � R. . ' . ,-4. ��. . � .�F.3� ..:.i�. .�W�� 8 � .. . . � � . ��`� • contrarv, the Authority may make unsecured City rehabilitation loans of up t� �3,500, in order to permit eligible improvement work which could not otherwise be secured by an otherwise eligible applicant because of the impossibility of providing security for a City rehabilitation loan, but only after all reasonable efforts have been made to provide the necessary security as outlined in "a -- c" above. 6. The maximum amount of a City rehabilitation loan except in the case of refinancing shall be the lesser of and not exceed: a. $17,400 per dwelling unit as set forth in the Department of Housing and Urban Development's (HUD) Rehabilitation Financing Handbook 7375.1. The Authority shall review this limit from time to time to recommend potential adjustments to the City Council; b. The actual cost of the eligible improvement work; c. That amount which, when added to other debts secured by the eligible property, would exceed the market value of the eligible property after the eligible improvements are completed plus 10 per centum. 7. The following costs may be included in a City rehabilitation loan or grant: a. Building permits and fees; b. Architectural and other design services; c. Loan origination and servicing fees, fees and incidental cos.ts, such as appraisal fees, inspection fees, title reports, credit reports, record- ing and filing fees, etc. 8. City rehabilitation grants may be approved in conjunction with City rehabilitation loans, but if an applicant can afford a City rehabilitation loan that would cover the entire cost of the proposed eligible improveme.nt work, including the correction of immediate health and safety hazards, coupled with an applicant's other housing related expenses, within 25% of the applicant's income, then such applicant will not be eligible for a grant. 9. To be eligible for a City rehabilitation grant, an applicant must have limited assets available to pay for eligible improvements and an income not to exceed the income limits of "very low--income families" for public housing as that term is defined in the Title II of the Housing and Community Development Act of 1974, amendments to the United States Housing Act of 1937, Sec. 201 (a) , Sec. 3 (2) , and approved by the Department of Housing and Urban Development. The Authority shall review this income limit from time to time to recommend potential adjustments to the City Council. 10. The maximum amount of a City rehabilitation grant shall be the lesser of; (1) $5,000; (2) the actual cost of the eligible improvement work; (3) the amount necessary to reduce the City rehabilitation loan principal and interest and/or other housing related expenses to 25% of the eligible gr.ant recipient 's monthly income. - 9 - II . Ciry rehahil.itation grants are providcd under the condition that, if the � ��I if�il� l�� {�roT��rty is 5olcl ��r tr�nsferred within three ycars oE the dat-c� on Mrl�i�•h t {i�� ;ranL i s made, the �;r:�nt mur;t he rep.iid in one of tiie fol.lc�win}; :irnc�un t�;: n. In full i ( sold or transferred witl�in the first year; b. Two-thirds (2/3) if sold or transferred during the second year; c. One-third (1/3) if sold or transferred during the third year. Ln making grants, the Authority shall require a lien or other appropriate document to be filed on the property to reflect the above provisions. The Authority shall adopt further administrative guidelines to provide for �iardship exceptions to these provisions, where there is no evidence of abuse by grant recipients, forced by circumstances beyond their control, to sell or transfer the eligible property within three years from the date on which the grant was made. Ref inanci� To the extent capital is available, as determined by the Authority, refinancing may be used to permit eligible improvement work which could not otherwise be aff�rded or secured by an applicant. The Authority shall closely manitor refinancing to insure that capital available to make City rehabilitation loans is being primarily expended on eligible improvement work. Al�o, the Authority shall take precautions to insure that refinancing is not used for the purpose of financing the purchase price for a property. Therefore, in all cases involvitig refinancing of existing indebtedness secured by eligible praperties that have been recently purchased by the applicant, the Authority shall, as a condition to making a City rehabilitation loan, satisfy itself that the applicant has not made collusive prearrangements in order to obtain zefinancing, which is in reality purchase price financing. The following provisions shall be used in implementing a refinancing program: 1. Refinancing of existing indebtedness secured by eligible singl�-family or duplex properties at an interest rate affordable to the eligible loan recipient, but not lower than S%, will be permitted when such recipient's principal and interest payments on existing indebtedness, combined with the payment required for the principal and interest of a City rehabilitation loan, exceed 20% of the recipi.�nt's monthly income, provided that the recipi.ent obtains fee title by the time the refinanced loan is closed and a satisfactory title insurance policy is o.btained for the property. 2. To be approved for refinancing, the Authority must first of all determine that the applicant is unable to afford and secure refinancing funds from other sources, including private lender programs at market interest rates, federal homeownership programs and the MHFA single-family residence program. If it appears that an applicant is able to afford and secure refinancing from other sources, the Authority shall first refer the applicant to the appropriate source or sources. After referral, if an otherwise eligible applicant can demonstrate that he or she is not able to secure refinancing from other sources, such applicant may then be approved for refinancing. - 10 - . • . �� • - �� 3. "I'o be approved for refinancing, the cost of eligible improvements must be equal or er.ceed 33% of the Principal of the existing indebtedness of the eligible property. 4. Refinanced loan terms may not exceed 3G years, or the remaining economic life of the eligible property, whichever is less, as deter- mined by the agency. 5. The Authority, with the consent of the eligible refinancing recipient, may provide for a front end deposit by the recipient of up to 3 points, to be placed in an interest-bearing escruw account for a specified period of years, to be used by the recipient for maintenance and repair of the eligible property over the specified period of years.� Any monies remaining in the account after expiration of the specified period of years will be returned to the recipient. 6. All other provisions of these guidelines shall apply to City rehabi.litation loans or grants made as part of a refinanced mortgage or contract for deed as set forth in this section. � Sweat Equity 1. Performance and completion of eligible improvements by eligible loan and grant recipients, neighborhoods associations, organizations, cooperatives or collective contract groups ("Sweat �quity") will be permitted. How- ever, close scrutiny 'shall be maintained to insure that such work is carried out in a timely manner, without providing delays for the entire rehabilitation process. 2. All eligible improvements work approved under a City rehabilitation loan or grant must be covered by a contract requiring full completion of such work, including work being done directly by the eligible loan or gran* recipient ("Sweat Equity") , and the approved loan or grant amount must be based on that figure. The contract must identify work being done by the recipient; allow specific credit for this work; specify the time for. completion of work done by the recipient; and provide for the contractor's completion of work not completed, within the specified time, by the recipient. Recipients performing work through "Sweat Equity" shall be permitted to draw upon their escrow account in order to pay for required materials. Contractor Performance 1. Nothing in these guidelines shall be construed to limit or restrict the applicability of state or city laws relating to the home improvement business or the rep�ir, rehabilitation and improvement of residential housing and real property and all persons and contractors performing eligible improvements work und.er a City rehabilitation loan or grant must be "licensed" as required by such laws. - 11 - Z. To be eligible to be awarded a contract under the City rehabilitation i�rc�k;r:irr� a contractoY must: a. First, be identified and placed on a list of eligible contractors developed and maintained by the Authority, To be eligible for such a list, contractors must attend a pre-qualification seminar conducted by the Authority. The purpose of this seminar is to inform contractors about the City rehabilitation loan and grant program and to specifically instruct contractora concerning the following: 1. The quality and worlananship standards required; 2. The contractors' role and the various contractor requirements and procedures contained in the City rehabilitation loan and grant program; 3. The business ethics required while under contract; 4. The proper method of bidding contracts covered by this program; 5. The arbitration policy for resolving disputes arising from contract execution. b. Must demonstrate that they are equal employment opportunity employers. 3. All contractors being awarded a contract under a City rehabilitation loan or grant must provide the eligible loan or grant recipient and the Authority with evidence of a 100% performance bond, in the full amount of such contract, effective for two years beyond the date of completion and accep- tance by the recipient and the Authority of the work. To the extent legally permissible, these bonding requirements may be waived, or modified if the Authority determines that the contractor is "bondable" and that such bonding requirements will be met within 12 months of the date of the loan or grant. 4. All eligible improvements work performed pursuant to a City rehabilitation loan or grant must be covered by an Authority approved warranty concerning the quality of materials used and worlananship in pErforming such work. The warranty system will be monitored and enforced by the Authority in coordin- ation, where appropriate, with the MHFA. 5. All contractors performing eligible improvements work under a City rehabilitation loan or grant must: a. Carry all, adequate and required by law, insurances; b. Possess all, necessary and required by law, licenses and permits to perform contracted eli,gible improvementa work. -- 12 - - : �'�'�� _ � � 6. Final payment cannot be made to a contractor until the eligible loan or �rant recipient and the Authority have accepted the completed eligible improvements work in writing. If the contractor requests periodic draws on completed eligible improvements work, during the period of such work, such draws must be accompanied by appropriate lien waivers concerning the work completed and will be subject to a 10% holdback on the overall eligible improvements work contract. Lien waivers must also be provided prior to making final payment on the eligible improvementa work contract. 7. The holdback shall be used to correct unsatisfactory eligible improvements work and to defray any costs required to be incurred by using a replace- ment contractor, should the first contractor be removed from the job. 8. The Authority shall provide necessary administrative assistance and procedures so that minority contractors anci sub-contractors are provided equal opportunity to be awarded contracts to perform eligible improvementa work urtder the City rehabilitation loan and grant program. Additional Administrative Responsibilities. The Authority, in implementing, administering and carrying out the provisions of the City of Saint Paul rehabilitation loan and grant program shall, in addition to the duties, responsibilities, determinations, functions and other provisions contained in these guidelines, be responsible for and carry out the following duties and functions: 1. Administer the City rehabilitation loan and grant program, in such a manner so as to complement other public rehabilitation and related programs, and not be competition with or as a substitute for any other public program. Particular administrative emphasis shall be placed on encouraging lower- income homeoamers, who live in neighborhoods w�ere the need for rehabil.ita- tion ia recognized, to avail themselves of the City rehabilitation loan and grant program. To thie end, based on the income limits being adopted in these guidelines for various loan interest rate categories, the Authority shall adopt procedures that will insure a loan approval ration of 2-1-1 (lower interest rate - middle interest rate - higher interest rate) over the length of the program. This guideline, however, shall be adjustable by the Authority based on rehabilitation needs and in reference to approved neighborhood rehabilitation programs. Also, the Authority ahall establish a monitoring system, particularly during the early stage8 of implementation, that will detect and advise the Authority, ateering comnittee, and the City Council of any trends inconsistent with the intent of Minnesota Lawa 1974, Chapter 351. ' 2. Adopt, consistent with the provisions of Minnesota Laws, 1974, Chapter 351 and the proviaions of these guidelines, further administrative guide- lines, procedurea and/or rules and regulationa necessary to implement and adminiater thie program. To this end the program shall be implemented - 13 - hv the Authority with as few administrative rules and procedural steps ' as possible and should be a corresponding flexible program which meets real. rehabilitation needs and satisfies the intent of Chapter 351. In this regard, the Authority shall recommend to the City Council necessary changes in these guidelines on a continuing basis. These administrative guidelines, procedures and/or rules and regulations shall include provisions designed to insure that financing of rehabilitation through this program will be available to eligible persone or families on a city wide basis and in addition will be available to: a. Eligible persone or families required to repair, improve, or rehabil- itate housing because of an urban renewal or code enforcement program; or if under court order; b. Eligible persons or families unable to receive property insurance because of physical hazards; c. Eligible persons or families who have agreed to rehabilitate their property in conjunction with and pursuant to an approved neighborhood rehabilitation project, plan or program; d. Eligible persons or families unable to afford rehabilitation loans at a market rate of interest; e. Eligible persons or families whose home contains violations of applicable codes which constitute immediate health and safety hazards; f. Eligible persons or families who have acquired property through or pursuant to an urban homesteading program; g. Eligible persons or families required to rehabilitate their homes under or pursuant to approved relocation plan. 3. Coordinate with the Mayor and City Council in their establishment of an advisory committee composed of community group representativea, private � citizens, and public officiaLa to act in an evaluation and advisory capacity after implementation of this program. 4. Borrow or leverage monies pursuant to Minn. Stat. 462.415 to 462.711 and Minnesota Laws, 1974, Chapter 351, from private lenders and the MHFA to be used to make rehabilitation loans and to refinance existing indebtedness under the City loan and grant program, in such amounts, and under such ternis and conditions, as the Authority, in coordination with the City Councfl deems appropriate. 5. Make available, on a coordinated and comprehensive basis, other relaCed housing programs administered in whole or part by the agency, such as urban homesteading, the hazardous building act (Minn. Stat. 463.15-.261) spot renewal, federal rehabilitation loan and grant and homeownership programs and the MHFA rehabilftation loan and grant program (including "reserved funda") to campliment approved neighborhood rehabilitation programs. - 14 - . "• , �� ;�,� ��.w� 6. Provide necessary administrative and technical assistance in carrying out the provisions of the City rehabilitation loan and grant program, 7. Coordinate with the City Planning Department and the City Council in the preparation and implementation of neighborhood rehabilitation programs and upon direction of the Council: a. Prepare appropriate documentation and submit reservation request's ta the MHFA for the reaervation of NIEiFA rehabilitation funds to be available on a City-wide basis and/or to be available for approved neighborhood rehabilitation programs; b. Set aside funds available through or as a result of the City rehabilitation loan and grant program includiag band proceeds or "leveraged" funds for approved neighborhood rehabilftation programs. 8. Coordinate with and, to the extent legally permissible, contract with other state public bodies as that term is defined in Minn. Stat. 462.421 (4) such as the Conununity Services Housing Code Inspection Division and Che City Planning Department concerning the delineation of responsibilities and functions in carrying out the provisions of Minne�ta Laws, 1974, Chapter 351 and these guidelines including but not limited to the exerciae of powers relating to the repair, closing, acquisition, or demolition of hazardous, unsafe, unsanitary or unfit buildinga; the inspection of residential housing; and the authorization and delivery of public and other related improvements. 9. Coordinate with, and to the extent poseible, provide assiatance, in conjunction with the City Planning Department, to neighborhood organiza- tiona or associations to assist such groupe in assesaing the potential for, in organizing, and in developing and formulating neighborhood rehabilitation pro�ect plans; and in conjuaction with the City Planning Department, inform intereated neighborhood organizationa aad citizens on the specifica of the City and MIiFA rehabilitation loan and grant program and dissemiaata. information conceraing these paca�ama an a City- wide basis. ' 10. Coordinate and contract with neighborhood organizations and aesociations and non-profit and redevelopment corporations concerning *he delineation of authority, organization, association or corporation functiona and responsibilities as regards an approved neighborhood rehabilitat3on program. To the extent legally a�d economically permiasible, such a contract may include an agreement by the Authority to reimburse auah associati.ons and corporations for expenses and salaries incurred in caxrying out such functions and responsibilities. 11. Coordinate and contract with local lending institutiotts concerning. their involvement in the origination and servicing of City rehabilitation loans and grants, but in all cases the final decision concerai� the �ttaking of a City rehabilitation loa� or grant resta with the Authoritq. 12. Coordinate and contract with the City �f Saint Paul cancertling the receipt and uae of bond proceeda, authorized by Minnesota Lawe, 1974, Chapter 351, and made available to the Autharity pursuant to Ml.nn. Stat. �2.415 to 462.711 and Chapter 351. - 15 - 13, provide an adequate information and referral system, whereby persons and families who are potentially eligible for and desire to avail themselves of other public and private programs and funds relating to rehabilitation and homeownership including ��reserved" or (excluding "leveraged" MHFA funds) otherwise available MHFA rehabilitation and refinancing funds, (instead of City rehabilitation loans and grants) are given full informa- tion concerning the use and availability of such funds and programs and proper referral to rehabilitation programs and administering entities. 14. Provide, upon completion of and acceptance by the eligible loan or grant , recipient and the authority of eligible improvements work, a "Certificatc" , setting forth what violations of applicable eodes and immediate health and safety hazards have been corrected by the eligible improvements work and what other eligible improvements work has been completed, and stating that the completed eligible improvements work is in compliance with applicable codes. 15. Prov.ide,an appeal or review process and procedures and information so con- cerning,wherein any person who feels he or she is aggrieved by the application of these guidelines may appeal such grievance for independent review and determination. Use of Bond Proceeds. 1. Consistent with the provisions of Minnesota Laws, 1974, Chapter 351, and. these guidelinea, bond proceeds shall be utilized by the Authority to pay the following costs and for the following purposes: a. Interest Differentials. To pay the difference between the interest rates on approved City rehabilitation loans and refinanced indebtedness and the interest rate incurred on monies borrowed or "leveraged" by the Authority and used to make and issue City rehabilitation loans and/or to refinance existing indebedness, provided, however, that in no event sha11 the payment of interest difference on any City rehabilitation ioan exceed 2 points. b. Default Reserves, To be set aside and used, at a percentage rate not � to exceed 6% of the total amount of monies used to make City rehabili- tation loana, and at a level and upon such textns and conditions determined, as a result of negotiations with private lenders and the MHFA, by the Authority, with the consent of the Council, to pay for City rehabilitation loans and refinanced indebtedness defaults. c. Administrative Costs and Technical Assistanceo To pay, in an amount approved by the City Council, for administrative and technical assistance costs incurred by the Authority or its agents which are directly related to the development, implementation, administration and carrying out the City rehabilitation loan and grant program, d, Rehabilitation Grants. To provide and make a maximum of $150,000 in City rehabilitation granta, consistent with the provisions of Chapter 351. e. Rehabilitation Loans. To provide and make City rehabilitation loans, consistent with the provisions of Chapter 351. -16- • �� 2. Any interest charged and received under a City rehabilitation loan that is in excess of Authority costs, as regards that loan, may be used by the Authority in making additional City rehabilitation loans or for any of the purposes specified in (1) above. � - 17 - � ��.a . .� � APPENDIX I AREA IMPROVEMENT PROGREIM FOR RESIDENTIAL REHABILITATION Recognizing the importance of structural conditions throughout an area to an individual property and the value of any investment in the rehabilitation of a residential structure, the City of Saint Paul will establish a program to encourage the concentration of rehabilitation resources in limited areas with the following objectives: l . Support and encourage cooperative neighborhood improvement efforts by ensuring the availability of financing and technical assistance for area improvement efforts. 2. Achieve substantial , visible improvement sufficient to strengthen neighborhood stability and encourage continuing private reinvestment in residential areas with substantial rehabilitation needs. 3. Through concentrated assistance, ensure that as many refiabilitation needs as possible are met, including those which can be met exclusively through the private market. 4. Reinforce existing sound neighborhoods and previous investment in neighborhood improvement by extending improvement ef�Forts to nearby areas threatened by blight. 5. Coordinate completion of required public improvements and other community development needs with area rehabilitation effiorts where possible to strengthen area-wide impact. 6. Maximize public/private cooperation in neighborhood improvement so that increasingly the efforts of private citizens, neighborhood organizations, lending institutions, the City, the State and other public agencies reinforce each other in reaching the corrxnon objective of a high-quality residential environment in City neighborhoods. Rehabilitation Plan The City Planning Coordinator will prepare a general plan for residential rehabilitation in Saint Paul . This plan will indicate generally th�t portion of the City for which concentrated rehabilitation effort is particularly appropriate. The plan will identify criteria for the evaluation of area rehabilitation project proposals, will indicate the range of activities which should be considered for neighborhood or small area projects and will indicate the specific informational requirements for a project plan. The priority areas identified �or rehabilitation activities will indica�te those areas of the City where need exists for positive effort to encourage rehabilitation interest and will provide a basis for the coordination of public improvement activities with residential rehabilitation efforts. Identified priority areas then will be considered in the evaluation of rehabilitation projects proposed by neighborhood organizations; however, projects will not be restricted ta the priority areas identified. , � _ Page 2 APPENDIX � The rehabilitation plan will also address the need for rehabilitation assistance throughout the City outside of concentrated project areas; measures which may be needed to ensure that resources are available tioth for area projects and for the remainder of the City; and 'measures other than formally designated area projects which may be used to encourage � , neighborhood cooperation or otherwise increase the effectiveness of rehabilitation efforts throughout the City. , Neighborhood Rehabilitation Proqram The City Planning staff, working with the Housing and Redevelopment Authority, will prepare a program of specific area rehabilitation activities to be undertaken. The program will be revised annually and forwarded to the City Council by the Planning Commission. The program will include: a. Neighborhood project plans and the estimated resources required for each project. Each plan will specify how the technical assistance and community organization assistance is to be provided and will identify the local citizen organizatian with continuing responsibility for the project. b. Identification of any City and/or MHFA loan and grant funds to be reserved or set aside for each project. c. Identification of resources r•equired for pre-project planning in some areas and reservation to be made for potential projects, d. Indication of demands which proposed projects can be expected to make on City staff for building inspection. e. Identification of ineasures other than rehabilitation loans and grants which can be programed for area projects including public improvements, urban homestead, recycling acquisitions , etc. While the intent of the annual program will be to ensure that project needs and available resources are matched for a given year, reserva�Gions of loan and grant funds for longer periods of time may be indicated. Neighborhood Project Plans Development of project proposals will be coordinated by the City Planning staff. It is anticipated that potential projects wi11 , in some cases, be initially proposed by local neighborhood organizations. In any case, area residents will be expected to play a major role in the development of a project proposal or plan. In those areas of the City where rehabilitation is identified as a high priority need, a positive effort will be made to ensure that information and assistance are available to residents as required to identify area needs and develop project proposals. , ' . ��j� � ' APPEN�IX I Page 3 . Where desirable, loan and grant resources may be reserved for potential projects in a given priority area for a specified perio�i of time less than one year to encourage interest on the part of residents. If, after the specified time period, an adequate plan has not been developed with strong community support, such a reservation would lapse. Project Implementation Where a project is established, techr:�ical and community organization assistance and informational materials for rehabilitation will be provided to resident groups as required to achieve broad participation and accomplish rehabilitation work in a satisfactory and efficient manner. It will be the responsibility of the Housing and Redevelopment Authority as the administrative agency for neighborhood projects to ensure that the necessary technical and community organization assistance is provided. The City Planning staff will monitor and evaluate the progress of the rehabilita- tion program and will propose revisions in the program as they become necessary. In assisting neighborhoods with identification of desirable project areas and in evaluating proposals for an annual program of area improvement activities, the following factors will be considered: age of housing structural condition of area housing income profile of area population incidence of home ownership residential structure types property values and value trends area improvement needs that cannot be met through rehabilitation neighborhood improvement efforts which go beyond rehabilitation and increase the possibility of significant upgrading public improvement and community facility needs and projects and plans which may strengthen the improvement effort other complementary improvement programs potentially or actually in effect which would strengthen rehabilitation impact commitment and interest of area residents previous improvement activity natural boundaries, adjacent sound neighborhoods and blighting influences It is understood that organized projects for which funds are reserved under the City program need not constitute the entire range of locally-organized rehabili- tation activity. Residents are to be encouraged to work cooperatively in whatever way they find feasible and appropriate to achieve neighborhood improve- ment, making use of available loan and grant assistance. 8/5/74 . ' . ��'�� .. . APPENDIX II TYPICAL REHABILITATION LOAN PROCESS SAINT PAUL REHABILITATION PROGRAM The purpose of this Appendix is to describe a "typical" case and the procedures to be followed for a homeowner to obtain a rehabilitation loan under the program guidelines that are outlined in the previous documents. Certain assumptions were made for purposes of describing this procedure. Those assumptions include the existence of a small "store-front" office in a neighborhood that has been identi- fied and approved for a concentrated rehabilitation program. We further assumed the office is staffed with two rehabilitation advisors, a part-time comrw nity organizer and a part-time secretary. A rehabilitation loan officer would be located at a central administrative office. The process would begin when the homeowner contacts the co�nunity organizer (or rehabilitation advisor) at the site office. The contact may result from the homeowner obtaining information about the program at a rehabilitation "block party." During this initial meeting, the organizer would describe the general rules, procedures and guidelines of the city rehabilitation program, screen the homeowner for eligibility and attempt to determine the homeowner's interest in rehabilitating his property. Assuming that 'positive interest and eligibility are established during the initial contact, the organizer would ask the homeowner to fill out a data sheet and schedule an inspection of the property by the full City Inspection Team. The data sheet would be forwarded to the rehabilitation loan officer for review and a further determination of eligibility of the homeowner to receive a loan. During this time, the City Inspection Team will have completed their work and prepared a written list of all code violations found on the property. A copy of the list wouTTTie-sent to the homeowner and the rehabilitation advisor at the site office. A meeting between the homeowner and the rehabilitation advisor would be the next step in the process. After determining the scope of general improvements desired by the homeowner and deciding which code items are to be corrected, the rehabili- tation advisor will instruct the homeowner to have a contractor prepare a preliminary scope of work for bidding purpose. The homeowner would subsequently select an approved contractor and obtain an informal bid from him. After receiving an informal bid, the homeowner would review the scope of work and cost with the rehabilitation advisor. Upon agreement by the homeowner to the final scope of work, the contractor's bid would be obtained by the homeowner. During the time that final bids are being prepared by the contractor, the site office would fill out a preliminary loan application with the homeowner and the property would be appraised by an independent real estate appraiser. The "loan package" consisting of the final bids and scope of work, loan application and appraisal are then delivered to the loan officer at a central location for process- ing. During this processing, the loan application would be reviewed and approved (denied) by a Special Rehabilitation Review Comnittee. Y Page 2 APPENDIX II ' ` . . Assurr�ing that the package is approved, a closing would be set between the • homeowner and loan officer. Upon closing, the contractor will be issued an order to proceed with the work. During the construction work, the rehabilita- tion advisor will coordinate with the homeowner in monitoring its progress. Completion of all construction work would be followed by a final inspection by a group consisting of the homeowner, City Inspectors, and the rehabilitation advisor. Items found to not be in compliance with city codes and the scope of work would be corrected prior to final payout to the contractor by the loan officer. Lien waivers will be obtained at the time of final payment. Partial payments may be arranged, if the term of construction is anticipated to be lengthy. In order to provide you with a further understanding of the above process, a graphical presentation is attached hereto. The Special Rehabilitation Comnittee referred to would �be made up of city staff and representatives of the administrative agency designated by the City ta implement the program. 7/11/74 .� " � .� r _ . , o vc��-, . . -s aoz -�z .-+ • ' Q+ D� -� v t � D�--� �� N� S ---1 Y'- �,�� • m m z � i � � m � ( OOD �, n ~ ~ �zn `"'' omvZi .� m 3 �v �o N .�. 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