03-297Q�r���AL
Council File # �3— 1qZ
Resolution #
Green Sheet # �Oyq(.�
Presented By
Re£erred To
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
36
Committee: Date
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APPROVING A SINGLE FAMII.Y HOUSING PROGRAM TO BE FINANCED BY
THE ISSUANCE OF SINGLE FAMILY MORTGAGE REVENiJE BONDS AND
MORTGAGE CREDIT CERTIFICATES
WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes,
Chapter 462C (the "Housing AcP'), the City of Saint Paul, Minnesota (the "City") is authorized
to adopt a housing plan and carry out programs for the financing of single family housing for
persons of low and moderate income; and
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WHEREAS, the Minneapolis/Saint Paul Housing Finance Board (the "Board"), a joint
powers boazd organized under a Joint Powers Agreement (the "Joint Powers AgreemenY') by
and between the Minneapolis Community Development Agency (the "Agency"), the Housing
and Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authority") and the
City of Minneapolis, Minnesota ("Minneapolis") and accepted by the City, and under the laws of
the State of Minnesota, proposes to undertake a single family housing program relating to the
Minneapolis and the Saint Paul entitlement allocations available in 2003 and certain recycling
refunding bonds (the "Program"), to be financed by the issuance of one or more series of
mortgage revenue obligations, mortgage revenue refunding obligafions and/or mortgage credit
certificates ("MCCs") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters
462A, 462C and 474A and Secrion 471.59 (collectively, the "AcY'); and
WHEREAS, pursuant to the Act, the Boazd is authorized to issue bonds from time to
time and to use the proceeds of its bonds to make or purchase mortgage loans or to purchase
participations in mortgage loans from lending institutions and to issue MCCs in order to finance
the con.struction and rehabilitation, and to facilitate the purchase and sale, of single family
housing for eligible persons or families under the Act and to issue bonds to refund previously
issued bonds; and
WIIEREAS, the Program will provide below market interest rate mortgage loan
fmancing or income tas credits primarily to persons of low or moderate income purchasing
single family homes to be used as their principal places of residence and which aze located
within the geographic limits of the City or Minneapolis; and
WHEREAS, the Act requires adoption of the Program after a public hearing held thereon
following publication of notice in a newspaper of general circulation in the City and Minneapolis
at least fifteen days in advance of the hearing; and
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WHEREAS, the City Council has on the date hereof conducted a public hearing on the
Program, after publication of notice as required by the Act; and
WHEREAS, the Program was submitted to the Metropolitan Council at or before the
time of publication of notice of the pubiic hearing on such Program, and the Metropolitan
Council was afforded an opporhxnity to present comments at the public hearing, all as required
by the Act; and
WHEREAS, the Program provides for the issuance of single family mortgage revenue
bonds or revenue refunding bonds in one or more series pursuant to the Act (the "Bonds") to
make or purchase or cause to be made or purchased mortgage loans, or to purchase securities the
proceeds of which would be used to purchase mortgage loans, and the issuance of MCCs to
finance the acquisition, primarily by low and moderate income persons and families, of single
family housing located within the geographic boundaries of the City or Minneapolis; and
WI-IEREAS, it is proposed that the Program be approved and the Boazd be authorized to
issue Bonds and MCCs pursuant to the Program and the Joint Powers Agreement; and
WIIEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the
Board or the Authority are in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CTTY COUNCIL OF THE CITY OF
SAINT PAUL AS FOLLOWS:
l. The Program is hereby approved in its entirety in substanfially the form on file
with the City. The officers of the City and the Board aze authorized to take all actions as may be
necessary or appropriate to cany out the Program in accordance with the Act and any other
applicable laws and regulations.
2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby
approved subject to agreement by the Board or the Authority and the purchasers of the Bonds, if
any, and by the Board or the Authority as issuer of the MCCs, as to the exact terms of the
Program MCCs.
3. The Bonds may be issued in one or more series at the time or times and pursuant
to terms determined by the Board, and be shuctured so as to take advantage of whatever means
are available and are permitted by law to enhance the security for, or mazketabiliry of, the Bonds,
provided that any such fmancing structure must be approved by the Board. The MCCs may be
issued at the time or times and pursuant to terms determined by the Boazd. All such
determinations by the Board must comply with the applicable provisions of the Act and the
Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder.
4. The Boazd is authorized to take all acfions which may be necessary or desirable in
connection with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no
fiirther approval or consent of the City shall be required prior to the issuance of the Bonds or the
MCCs by the Board, or prior to the taking of any action by the Board to undertake and
implement the Program.
5. Nothing in this Resolution or the documents prepared pursuant hereto sha11
authorize the expenditure of any municipal funds on the Program other than as specified and
authorized by separate actions of the City and other than the revenues derived from the Program
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or otherwise granted to the City for this purpose. The Bonds shall not constitute a chazge, lien or
encumbrance, legal or equitable, upon any properry or funds of the City except the revenues and
proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon.
The holders of the Bonds shall never have the right to compel any exercise of the taxing power
of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce
payment against any properry of the City. 3'he Bonds shall recite in substance that the principal
and interest thereon, aze payable solely from the revenues and proceeds pledged to the payment
thereof. The Bonds shall not constitute a debt of the City within the meaning of any
constitutional or statutory limitation of indebtedness.
6. Any one or more series of the Bonds or the MCCs may be issued by the Authority
in lieu of issuance by the Boazd, at the discretion of the Authority.
Adoption Cert�Y�.ed by Council Secretary
�
Approved
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Date L ' �_-. �
Requested by Department of:
av Plannin & Economic velo ment
By: �
Approved by Financial Services
By:
Form Approved by Cit Attor y
�y
1
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Adopted by Council: Date �,,,� �,(� �jp3
c
DEPARTMENT/OFFICE/COUNCII.: 3I O�O�T��D GREEN SHEET No.: 204961 0� -3q')
, PED
CONTAGT PERSON & PHONE; � iN17iALDA1'P, tNiTTnI,�DA1'E
Jenny Wolfe, 6-6555 1 D �p�� D� a cr�covt.rcu,
MUST BE ON COUNCII, AGENDA BY (DATE� �IGN
For Public Hearing on 3/26/03 F o�� ? ��
. ROVfAiG FINANCIAL SERV DIIL � FINANCIAL SERV/ACCTG
ORDER
3 MAYOR(ORASST.) _
TOTAL # OF SIGNATT7RE PAGES 1(one) (CLIP ALL LOCATIONS FOR SIGNATURE) .
ACi'ION REQUESTED;
Signature on attached Resolution for adoption at a Public Hearing on March 26, 2003. �
RECOMMENDATfONS: Approve (A) or Reject (A) PERSONAL SERVICE CONTRACfS M[7ST ANSWER THE FOLLpWING
QUESTIONS:
PLANNING COIvIMISSION 1. Has U�is person/fum ever wocked mder a conhact for this depazhnent?
C1B CAMIvIlTfEE Yes No
CiVIL SERVICE COMMISSION 2. Has this pe�suyfum e�•er been a ciry employee?
Yes No
3. Does tLis person/Srm possess a sldll not normally possessed by a¢y current city employez?
Yes No
Eaptsin all yes answers on separate sheet and attach to green sheet
� INiT7A1'ING PROBLEM, LSSUE, OPPORT[3N11y (Who, What, R'hen, R'here, Why): ��
Approving a 2003 Single Family Housing Program to be financed by the issuance of Single Family Mortgage
Revenue Bonds and Mortgage Credit Certificates. Bond proceeds will be used to provide loans for low or
moderate income persons and families.
ADVANTAGES IF APpROVED:
The City if able to provide loans at lower interest rates through the issuance of tax-free bonds. The program
allows the City to better serve first time home buyers.
� ca2�?�8��1 ���:5°i�:T
, DLSADVANI'AGESIFAPPROVED:
None. �,���, �,� @ ����
aW
DLSADVANTAGES IF NOT APPROVED:
Loan funds at lower interest rate would not be available for low or moderate income persons.
� TOTAL AMOUNT OF TRANSACTION: $ NA COST/REVENUE BUDGETED (CII2CLE ONE): YES NO
���. FUNDINGSOURCE: AC11ViTYNUMBER:
'. FiNANCIAL INFORMATION: (ERPLAIN)