04-1225Council File # O • _ /� �+
Resolution #
Presented By
Referred To
Green Sheet # � ����J�¢.5
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
� � . �
Committee: Date
APPROVING A SINGLE FANIII.X HOUSING FINANCE EROGRAM TO BE FINANCED BY TT3E
ISSUANCE OF SINGLE FAM[I,Y MORTGAGE REVENLTE BONDS AND MORTGAGE CREDIT
4
CERTIFICATES
6 c�VI�REAS, pursuant to the Minnesota Municipal Housing Act, Mnuiesota Statutes, Chapter 462C
7(the "Housing Act"), the City of Saint Paul, Miuuesota (the "City") is authorized to carry out programs for the
8financing of single family housing for persons of low and moderate income; and
9
10 WI�EREAS, the Minneapolis/Saint Paul Housing Finance Board (the `Board"), a joint powers board
1lorganized under a Joint Powers Agreement (the "7oint Powers AgreemenY') originally dated as of December
121, 1984, and as subsequently amended, by and between the Housing and Redevelopment Authority o£the Ciry
13of Saint Paul, Mimiesota (the "Authority") and the City of Minneapolis, Minnesota ("Minneapolis"} and
14accepted by the City, and under the laws of the State of Minnesota, proposes to undertake a single fasnily
15housing finance program relating to the Minneapolis and the Saint Paul entitlement allocations available in
162005 and certain recycling refunding bonds (the "Program"}, to be fmanced by the issuance of one ar mare
17series of mortgage revenue obligations, mortgage revenue refunding obligations andfor mortgage credit
18certificates ("MCCs") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters 462A, 462C
19and 474A and Section 471.59 (collactively, the "AcP'); and
20
21 WI�REAS, putsuant to the Act, the Boazd is authorized to issue bonds from tune to time and to use
22the ptoceeds of its bonds to make or purchase mortgage loans or to purchase participations in mortgage loans
23from lending institutions and to issue MCCs in order to finance the construcfion and rehabilitation, and to
24facilitate the purchase and sale, of single family housing for eligible persons oz fanulies under the Act and to
2Sssue bonds to refund previously issued bonds; and
26
27 WI�REAS, the Progtam will pxovide below mazket interest rate mortgage loan financing or income
28tax credits primarily to persons of low or moderate income purchasing single family homes to be used as their
29principal places of residence and which aze located within the geographic limits of the City or Minneapolis;
3Chnd
31
32 WI�EREAS, the Act requires adoption of the Program after a public hearing held thereon following
33publicafion of notice in a newspaper of general circulation in the City and Miiuieapolis at least fifteen days in
34aclvance of the hearing; and
35
36 WI�REAS, the City Council has on the date hereof conducted a public hearing on the Program, after
37publicafion of notice as required by the Act; and
38
39 WHEREAS, the.Program was submitted to the Metxopolitan Council at or before the time of
o�- /aa5
lpublicafion of notice of the public hearing on such Program, and the Metropolitau Council was afforded an
2opportunity to present comments at the public hearing, all as required by the Act; and
3
4 VTHEREAS, the Program provides for the issuance of single family mortgage revenue bonds or
5revenue refunding bonds in one or more series pursuant to the Act (the `Bonds") to make or purchase or
6cause to be made oz purchased mortgage loans, or to purchase securities the proceeds of which would be used
7to purchase mortgage loans, and the issuauce of MCCs to fivauce the acquisition, primarily by low and
�noderate income persons and families, of single family housing located within the geographic boundaries of
9the City or Minneapolis; and
10
ll WFIEREAS, if is proposed that the Program be approved and the Board be authorized to issue Bonds
12and MCCs pursuant to the Program and the Joint Powers Agreement; and
13
14 WI�REAS, the Program and the issuance of Bonds andfor MCCs by the Board or the Authority are
1 Sm the best interests of the City.
16
17 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT
18PAUL AS FOLLOWS:
19
20 1. The Program is hereby approved in its entirety in substantially the form on file with the City.
21The officers of the City and the Boazd are authorized to take a11 actions as may be necessary or appropriate to
22cany out the Program in accordance with the Act and any other applicable laws and regulations.
23
24 2. The issuance of the Bonds and/ox MCCs pursuant to the Progratn is hereby approved subject to
25agreement by the Board and the purchasers of the Bonds, if any, and by the Soazd as issuer of the MCCs, as
26to the exact tezms of the Program MCCs.
27
28 3. The Bonds may be issued in one or more series at the time or times and pursuant to terms
29determined by the Board, and be structured so as to take advantage of whatever means are available and are
30permitted by law to enhance the security for, or marketability of, the Bonds, provided that any such financing
3lshucture must be approved by the Board. The MCCs may be issued at the time or times and pursuant to
32terms determined by the Boazd. All such deternunations by the Board must compiy with the applicable
33provisions of the Act and the Internal Revenue Code of 1986, as amended, and regulations promulgated
34thereunder.
35
36 4. The Board is authorized to take a11 actions wkvch may be necessary or desirable in connection
37with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no fi�rther approval or consent
38of the City shall be required prior to the issuance af the Bonds or the MCCs by the Board, or prior to ihe
39taking of any action by the Board to undertake and implement the Program.
40
41
42 5. Nothing in this Resolution or the documents prepazed pursuant hereto shall authorize the
43expenditure of any municipal funds on the Program other than as spec�ed and authorized by separate actions
44of the Ciry and other than the revenues derived from the Program or otherwise granted to the City for this
45purpose. The Bonds sha11 not constitute a charge, lien or encumbrance,legal or equitable, upon any properiy
46or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shali the City be
47subject to any llability thereon. The holders of the Bonds shall never have the right to compel any exercise of
48the taxing power of the Ciry to pay the outstanding principal on the Bonds or the interest thereon, or to
45�nforce payment against any properry of the City. The Bonds shall recite in substance that the principal and
SOinterest thereon, are payabie sotely from the revenues and proceeds pledged to the payment thereo£ The
S 1Bonds shall not consfitute a debt of the City within the meaning of any constitutional or statutory limitation of
52indebtedness.
o�- ia.�S
1 6. Any one or more series of the Bonds or the MCCs may be issued by the Authority in lieu of
2issuance by the Board, at the discretion of the Authority.
3
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Approved by Mayos: Date
By:
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Form Approved by City Attorney —"� ����
By:
Approved by D
By:
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� Green
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Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
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DepartrnenNofifice/councit: Date Inffiated:
pE Planomg&FsoaomicDeoelopment o�_oE�,, Green Sheet NO: 3024565
CoMact person & Phone: Denartrnent Serrt To Person Initial/Date
Stephanie Hdwkinson � 0 la ni & no 'c evel
66585 � quiyn 1 1 ni & Ee no ic Develo D artment Dire or g ���5��
Must Be on Councii Agenda by (Date): Number Z � A orne �
22-DEG04 For
Routing 3 avor' Office a od ' ta t
Order 4 ouncil
5 i Clerk Ci C1erk
ToWI # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Signawre on attached resolution for adoprion at a public hearing on December 22, 2004.
Recommendations: Approve (A) or Rejed (R): Persorcal Service Contreets Must Answer the Following Questions:
Planning Commission 1. Has this person/firtn ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirm ever been a city employee? �
Yes No
3. Does this person/firm possess a skilf not normaAy possessed by any
. current city employee?
Yes No
Explain all yes answers on separete sheet and attacfi to green sheet
Initia5ng Probiem, Issues, Opportunity (Who, What, When, Where, Why):
Approving a 2005 Single Family Housing Pro�am 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 famlies.
AdvanWqes If Approved:
The City is able to provide loans at lower interest rates tUrough the issuance of tax-free bonds. The proa�am allows the Ciry to better
serve first time homebuyers.
Disadvantaqes If Approved:
None
Disadvanqges {f Not Approved:
Loan funds at lower interest zate would not be available for low or moderate income pezsons.
Sotal Amount of Cost/Revenue Budgeted:
Transaction:
Fundinq Source: Activity Number:
F inancial I nfortnation:
(Explain) -