07-274Council File # Q 7 �a, ]t�
Green Sheet # 3037330
RESOLUTION 33
OF SAINT PAUL, MINNESOTA
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Presented by
APPROVING A SINGLE FAMILY HOUSING FINANCE PROGRAM TO
BE FINANCED BY Tf� ISSUANCE OF SINGLE FAMILY MORTGAGE
REV�.NUE BONDS
6 WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C
7(the "Housing AcY'), the City of Saint Paul, Minnesota (the "City") is authorized to cany out progratns for the
8 fmancing 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 `Boazd"), a joint powers boazd
organized under a Joint Powers Agreement (the "Joint Powers AgreemenY') originaliy dated as of December
1, 1984, and as subsequently amended, by and between 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 finance program relating to the Minneapolis and the Saint Paul entitlement allocations and certain
refunding bonds (the "Program"), to be financed by the issuance of one or more series of mortgage revenue
obligations and mortgage revenue refunding obligations pursuant to Minnesota Statutes, Sections 469.001 to
464.047, Chapters 462A, 462C and 474A and Secdon 471.59 (together with applicable predecessor provisions
of state law, 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 in order to finance the construction and rehabilitafion, and to facilitate the purchase
and sa1e, of single family, housing for eligible persons or families under the Act and to issue bonds to refund
previously issued bonds; and
WI�EREAS, the Program will provide below market interest rate mortgage loan financing or income
tax credits primarily to persons of low or moderate income purchasing single fanuly homes to be used as their
principal places of residence and wtuch are located within the geographic limits of the City or Minneapolis;
and
32 WIiEREAS, the Act requires adoprion of the Program after a public hearing held thereon following
33 publication of nofice in a newspaper of general circulafion in the City and Minneapolis at least fifteen days in
34 advance of the hearing; and
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W�IEREAS, the City Council has on the date hereof conducted a public hearing on the Program, aftex
publication of notice as required by the Act; and
WI�REAS, the Program was submitted to the Metropolitan Council at or before the time of
publication of nofice of the public hearing thereon, and the Metropolitan Council was afforded an opportunity
to present comments at the public heating, all as required by the Act; and
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43 WHEREAS, the Program provides for the issuance of single family mortgage revenue bonds or
44 revenue refunding bonds in one or more series pursuant to the Act (the `Bonds") to make or purchase or cause
45 to be made or purchased mortgage loans, or to purchase securifies the proceeds of which would be used to
46 purchase mortgage loans to finauce the acquisition, primarily by low and moderate income persons and
47 families, of single family housing located within the geographic boundaries of the City or Minneapolis; and
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49 WHEREAS, it is proposed that the Program be approved and the Boazd be authorized to issue Bonds
50 pursuant to the Program and the Joint Powers Agreement; and
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52 WFIEREAS, the Program and the issuance of Bonds by the Board or the Authority aze in the best
53 interests of the City.
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55 NOW, TI�REFORE, BE IT RESOLVED BY TI-� CITY COUNCIL OF THE CITY OF SAINT
56 PAUL AS FOLLOWS:
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58 1. The Program is hereby approved in its entirety in substanfially the form on file with the City.
59 The officers of the City and the Boazd aze authorized to take all actions as may be necessary or appropriate to
60 cany out the Program in accordance with the Act and any other applicable laws and regula6ons.
61 2. The issuance of the Bonds pursuant to the Program is hereby approved subj ect to agreement by
62 the Board and the purchasers of the Bonds.
63 3. The Bonds may be issued in one or more series at the time or times and pursuant to terms
64 determined by the Board, and be structured so as to take advantage of whatever means aze available and aze
65 permitted by law to enhance the security for, or marketability of, the Bonds, provided that any such financing
66 structure must be approved by the Board. All such determinations by the Boazd must comply with the
67 applicable provisions of the Act and the Internal Revenue Code of 1986, as amended, and regulations
68 promulgated thereunder.
69 4. The Board is authorized to take a11 actions which may be necessary or desirable in connection
70 with the issuance of the Bonds, acting on behalf of the City, and no further approval or consent of the City
71 shall be required prior to the issuance of the Bonds by the Board, or prior to the taking of any acrion by the
72 Board to undertake and implement the Progrun.
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73 5. Nothing in this Resolution or the documents prepazed pursuant hereto shal] authorize the
74 expenditure of any municipal funds on the Progranl other than as specified and authorized by sepazate acrions
75 of the City and other than the revenues derived from the Program or otherwise granted to the City for this
76 purpose. The Bonds shall not constitute a chazge, lien or encumbrance, legal or equitable, upon any property
77 or funds of the City except the revenues and proceeds pledged to the payment thereof, nor shall the City be
78 subject to any liability thereon. The holders of the Bonds sha11 never have the right to compel any exercise of
79 the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce
80 payment against any property of the City. The Bonds shall recite in substance that the principal and interest
81 thereon, aze payable solely from the revenues and proceeds pledged to the payment thezeof. The Bonds shall
82 not constitute a debt of the City within the meaning of any constitutional or statutory limitation of
83 indebtedness.
84 6. Any one or more series of the Bonds may be issued by the Authority in lieu of issuance by
85 the Board, at the discretion of the Authority.
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Form Approve� C� A
BY� —sy��!'��"'� I
Form App ve by ayor o• Su ission to Council
By:
Adoption Certified by Council Secretary
By: .�SG'
Approved� ate � L� b
By:
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
07 a7�
PE �P��Sffi�onomicDevelopment
Contact Peroon & Phone:
Stephanie Hawkinson
6-6585
Must Be o Council Agend
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Doc. Type: RESOLUTION
E-Document Required: N
Document Contact:
Conpct Phone:
27-FEB-07
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Assign 1
Number Z
For
Routing 3
Order 4
5
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ToWI # of Signature Pages _(Clip NI Locatidns for Signature)
NO:
lamin & Economic Develo me
in & Economic Develo m De ent D'uector
' Attome
a oYS Office Ma or/ASSistant
ancd .
i Clerk CS Cierk
Signature on attached Resolution for adoption at a Public Hearing on March 21, 2007
iaaUOns: Approve (A) or R
Planning Commission
CIB Committee y
Civil Service Commission
1. Has ihis person/firm ever worked under a contrect for this department?
Yes No
2. Has this person/firtn ever been a city employee?
Yes No
3. Does this persoNflrm possess a skiit not nortnally possessed by any
cuvent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
{nitiating Problem, lssues, Opportunity (Who, What, When, Where, Why):
Approving the 2007 Single Family Housing Program to be financed by the issuance of Single Family Mortgage Revenue Bonds. Bond
proceeds will be used to provide loans for low or moderate income persons and families.
Advantages lf Approved:
The City is able W provide loans at lower interest ra[es through the issuance of taY-free bonds. The program allows the City to better
serve first time home buyers. �
Disadvantages IfApproved:
None.
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Disadvantages If Not Approved:
I-oan funds at lower interest rate wouid not be available for low or moderate income persons.
TransaMion:
Funding Source:
Pinancial Information:
(Explain)
CostlRevenue Budgeted:
Activity Number: �AR Q p 9 7
4f,�s ��`'':_...� <� v�'�',e'� o L��/
_ MAYOR'S O�FiCE
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February 27, 2007 10:15 AM Page 1
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mm�vEAroLisis�rrr rAUL
2007 SINGLE FANIILY HOUSING FINANCE PROGRAM
The City of Mimieapolis, Mivnesota ("Mimieapolis"), the City of Saint Paui, Minnesota
("Saint Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Miimesota
(the "Authorit�'), acting individually or jointly through the Minneapolis/Saint Paut Housing
Finance Boazd (the "Joint Boazd") (a11 together, the "Issuers") propose to issue mortgage revenue
bonds and certain mortgage revenue refunding bonds under Section 103 of the Internal Revenue
Code of 1986, as amended (together with regulations promulgated thereunder, the "Code"), in one
or more series, in either case to finuice the single family housing fmance program described herein
(the "Program") pursuant to authority conferred by Miiuiesota Statutes, Chapters 462C, 462A, 469
and 474A, all as amended, (and any predecessor provisions of State law or other general or special
law authority for the issuance of obligations to finance a single family housing finance program or
development) (all together, the "Act"). Any action specified herein to be made by the Issuers may
be made by one or more of them acting in concert or individually.
Tn crea6ng this Program, the Issuers find and determine:
■ that the preservation of the quality of life in Minneapolis and Saint Paui (the "Cities") is
dependent upon maintaining an adequate, decent, safe and sanitary housing stock;
■ that maintaining such housing stock is a public purpose and will benefit the residents of
the Cities;
• that a need exists within the Ciries to provide addirional affordable owner-occupied
housing for low and maderate income persons and families and for other persons and
families to the extent necessary to promote economic integration as provided in the Act; and
• that a need exists for mortgage credit to be made available for both existing and new
owner-occupied housing, for rehabilitation of existing single family housing and for home
improvements.
To meet such needs, the Issuers intend to issue one or more series of single family mortgage
revenue bonds and single family mortgage revenue refunding bonds (`Bonds") to cause the
origina6on of mortgage loans to finance the acquisition, conshuction, rehabilitation or improvement
of single family housing in the Cities (or either of them). The Issuers may issue Bonds in an
aggregate principal amount of up to (a) $57,357,000 for Minneapolis and $29,686,290 for Saint
Paul, representing certain canyforward 2006 allocation and certain 2007 entitlement bond allocation
of Minneapolis and Saint Paul; (b) draw down bonds in the amount expected to be approximately
$13,000,000; and (c) appro�mately $100,000,000 of refunding bonds to fund the acquisirion of
mortgage loans, but which in any event shall be an amount sufficient to refund outstanding
mortgage revenue bonds and; and (d) such principal amount of tasable bonds as may be necessary
or convenient to fiuther the purposes of this Program.
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(iv) as indicated above, the Cities 2006 entitlement allocations carried fonvazd
for single family bonds and their 2007 entiflement allocarions may be used in the Program,
provided, however, that no provision of this Program shali in any way prevent either
Minneapolis or Saint Paui from using all or a portion of its respective entiflement
allocafion(s) for muitifamily housing or any other authorized purpose. In addirion, any
election made by the Cities to issue Mortgage Credit Certificates ("MCCs'� in lieu of Bonds
may be revoked in whole or in part, at any time during the calendaz yeaz in which the
election was made as pemutted by Secrion 25 of the Intemal Revenue Code and Section
1.25-4T(c)(3) of the Treasury Regularions. The resulting unused entitlement allocarion may
be used to issue bonds for single family housing or other authorized purposes;
(v) the Program will meet the needs of low and moderate income families by
providing below-mazket rate finaucing for the acquisition or rehabilitation of single family
homes or by providing a ta�c credit for mortgage interest paid, thereby enabling such persons
to qualify for mortgages which would be unavailable at mazket rates;
(vi) no homes wkrich aze located in previously unincorporated real property
annexed by the Cities within one yeaz prior to the date of adoption of this Program will be
fmanced under this Program;
(vii) prohibitions or limitations on assumption will be imposed to the extent
required by federal law relating to the tas exempt status of Bonds issued pursuant to the
Program; provided that the Issuers may impose more stringent limitations at their discretion;
(viii) the estimated amount of mortgage loans to be made or purchased pursuant to
this Program is appro�cimately equal to the aggregate principal amount of Bonds issued;
(ix) the estimated aggregate principal amount of the Bonds is set forth above;
(x) the Bonds, if issued, may be issued in one or more series timed for sale
consistent with the needs of the Cities in 2007 and the durafion of any origination period
provided in connection with the Bonds, ar, if any bond allocation is carried forward for
single family purposes, in 2008;
(�) refinancing of existing indebtedness will be permitted only where the
mortgage loan also finances substanfial "rehabilitafion" as that term is defined under
Minnesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143
of the Code;
(�i) to the extent required by the Act, during the first ten (10) months of the
origination period, loans financed by the Bonds (but not mortgage loans assisted by MCCs)
will be made for existing housing;
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