07-768Council File # 07-768
Substitute 10/03/07 Green Sheet# 3042590
RESOLUTION �
CITY OF SAINT PAUL, MINNESOTA
b�esented � `�/ �--
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1 WHEREAS, the Neighborhood Housing Rehabilitation Program for GDCs was approved by the
2 FiRA Board of Commissioners on February 23, 2005; and
3
4 WHEREAS, the HRA Board of Commissioners approved funding recommendations for CDCs
5 participating in the program on May 11, 2005; and
6
7 WHEREAS, the Saint Paul City Council approved a budget amendment for additional funding for
8 CDCs participating in the program on March 14, 2007; and
9
10 WHEREAS, the funding source for this program is the Community Development Block Grant
11 fund;and
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13 WHEREAS, additional funds are recommended to provide needed loans to qualified
14 homeowners in the Invest Saint Paul target neighborhoods; and
15
16 WHEREAS, existing program guidelines have been revised to help implement the Invest Saint
17 Paul goals:
18
19 NOW THEf2EFORE, BE IT RESOLVED, that upon recommendation of the Mayor, the City
20 Counc+l of the City of Saint Paul does hereby approve the following amendment to the
21 Community Development Block Grant Fund:
22
23 CURRENT AMENDED
24 BUDGET CHANGE BUDGET
25 Comp. Home Pur & Rehab
26 P6-100-94002-0581-00418 $11,368,748.59 $ (-900,000) $ 10,468,748.59
27
28 DBNHSJNENDCiESNDC
29 P6-100-91042-0547-01300 $ 734,166.00 $ 300,000.00 $ 1,034,166.00
30
31 SPARC
32 P6-100-91042-0547-01301 $ 348,223.00 $ 200,000.00 $ 548,223.00
33
34 GFCDC/ASANDC
35 P6-100-91042-0547-01304 $ 244,723.00 $ 300,000.00 $ 544,723.00
36
37 NEDA
38 P6-100-91042-0547-xxxxx $ 00.00 $ 100,000.00 $ 100,000.00
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41 Total Changes 0
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FURTHER RESOLVED, that the existing program guidelines be replaced with the
attached updated program guidelines dated October 3, 2007, and;
FURTHER RESOLVED, that the Mayor or his designated representatives, PED Grants
Management stafF are further authorized to submit to the U. S. Department of Housing and
Urban Development any assurances, certifications, technical changes, or additional
information that may be required by said Department to amend the City's Community
Development B1ock Grant Program.
Adoption Certified by Cou�cil Secretary
BY O /{
Approved, jy^'� Date ��� �,
Mayor: (/ J „
By
Requested by Department of:
Plan 'n aE co mic Develo ment
By �� �� �
Form A ro brney
By.
Form A pr ed b IC9 yor for S mission to
Council
By:
Approved by the Office of Financial Services
By �
Adopted by Date
Council: //J'��3�a1//�7
� Green Sheet C�reen Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
O 7- 7��
PE — Planning&EconomicDevelopment
Contact Person & Phone:
Paul MMordorski
6-6683
on councn wgenaa ny p
i W5Y �_ 7. _ .Z0
Doc. Type: RESOI,UTION W/$ TR4N5AC
E-DocumentRequired: N
DocumentContact Danise
ContaM Phone: 6-6655
06AUG-07
y
Assig�
Number
For
Routing
Order
Green Sheet NO: 3042590
� ' & Economic Develo m Roa Ross
L tannin� & Economic Develo me D'uector-C. Bedor
2 itr Aitornev City Attomev I
� avor's Office Mavor/Assistant
4 ivanciaiServices Director __ �S
5 ouncd � He�z�n �
6 oancil Ci Council
7 i Clerk CiN Clerk
Total # of Signature Pages _(Clip Ali Locations for Signature)
Resolution-07-XYX- Transfemng additional CDBG funds to the appropriate amended funding codes for the Neighhorhood
Housing Rehabilitation Progcam foc CDC's. (GS)
iaanons Hpprove �.v7 or rcelec� lrc�: �e�����a� �e�.�.:e �.,��.�a�.� �.�..�..,���..�. ..�� �........... .� ...............
Planning Gommission 1. Has this person/firm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/fircn ever been a city employee?
Yes No
3. Dces this pe+sonlfirtn possess a Skili not normaUy possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
InitSating Problem, lssues, Opportuaity (Who, What, When, Where, Why):
The Neighborhood Housing Rehabilitation Program for CDC's was approved by the HRA Boazd in 2005, and amended on Mazch 14,
2007. This resolution will transfer additional CDBG funds to the apprapriate amended fiwding codes. �
Advantages if Approved:
The funding will be avallable to the CDCs.
Disadvantages If Approved:
None
Disadvantages lf Not Approved:
The fundiug will not be available to the CDC's.
��� Transaction: $900,000
Punding Source: CDBG
Einanciatlnfomtation: ���_��j�j .--
(Explain)
CostlRevenue Budgeted: Y
Activity Number: V8fi0US .
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August 6, 2007 8:45 AM Page 1
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Neighborhood Housing Rehabilitation Program
Program Guidelines
Revised October 3, 2007
Basic Nei�hborhood Program Provisions
"rhe majority of allocated funds will be used for exterior housing improvements and the
treatment of problem properties.
All CDBG funds for each CDC shall be committed to projects within the Invest St. Paul
(ISP) Targeted Start Areas. Please refer to the map in Attachment A1 for program
boundaries. If funds remain uncommitted after a six month time period, the Subgrantee
may target and use funds for the areas adjacent to the Targeted Start Areas up to but not
greatei than three six month time periods thereafter. For each six month time period, a
CDC will submit a map identifying the adjacent areas they plan to address for approval by
the HRA Executive Director.
All projects will need to address curb appeal issues (i.e., fencing, retaining walls,
landscaping, walkways, etc.
A CDC's allocated funds should be committed (consisting of full credat approval with
necessary verifications for title, taxes, insurance, credit report, income and assets) within
six months after contract execution, at which time any uncommitted funds will be subject
to be awarded to another CDC to make a loan commitment.
In addition to tha program requirements (ownec occupancy and income limits) and
depending on the source of City funds, all federal, state and local requirements must be
followed; e.g., lead-based paint, competitive bidding, addressing health & safety
deficiencies, etc.
The HRA will enter into either new agreements or amendments to existing agreements
with each participating CDC.
Eligible Homes
Owner-occupied homes income limits will be defined by funding source (CDBG funds
]imit to 80% of inedian income).
Basic Financin� Provisions
Maximum $50,000 loan amount
Any project using additional sources above $50,000 per unit must complete an analysis of
economic Jcost feasibility and be approved by the HRA Executive Director.
Borrower must demonstrate good credit history on existing mortgage debt and property
taxes.
Financing will be secured with a Mortgage and Promissory Note on the property with an
Assignment to the Housing and Redevelopment Authority (HRA).
a�-��8
Financin� Structure
The Rehabilitation component will require flexibility in underwriting. Based on income
demographics and the city's goal for stability, PED will adjust the family adjusted gross
income down by 15% for federal and state taxes. If housing costs from a first mortgage,
insurance, tzaces and utilities are more than 30% of a family's income, the rehab funds will all
be deferred payment 0% and due on sale andlor refinancing. In addition to ]ooking at the
family income, we will also look at property values. If the property value is not sufficient to
cover all costs filed against it, and if a rehab loan moves the total debt above the property
value, a portion or all as necessary of the rehab funds will be structured as a forgivable loan
over 15 years. A Deed Restriction to insure owner occupancy may also be considered.
Other Provisions
CPCs will be allowed 15% of each closed loan amount in an administrative fee; fee
amount is not part of borrower's loan amount, but would be taken from the available
program funds (maximum fee with a$50,000 loan is $7,500).
Funds will be made aeailable to the CDC on a reimbursement basis.
CDCs will demonstrate that past CitylHRA allocated funds for home improvement and
other activities are being committed and expended in a timely manner.
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Attachment A-1
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Substitute 8/22/07
Council File # 07-768
Green Sheet # 3042590
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
by
WHERE , the Neighborhood Housing Rehabilitation Program for CDCs was approved by the
HRA Board f Commissioners on February 23, 2005; and
WHEREAS, the RA Board of Commissioners approved funding recommendations for CDCs
participating in the rogram on May 11, 2005; and
WHEREAS, the Saint aul City Council approved a budget amendment for additional funding for
CDCs participating in th rogram on March 14, 2007; and
WHEREAS, the funding sou e for this program is the Community Development Block Grant
fund; and
WHEREAS, additional funds are re ommended to provide needed loans to qualified
homeowners in the Invest Saint Pau rget neighborhoods.
RESOLVED, that upon recommendation f the Mayor, the Council of the City of Saint Paul does
hereby approve the following amendm t to the Community Development Block Grant Fund:
CUR ENT AMENDED
BUDG T CHANGE BUDGET
Comp. Home Pur & Rehab
P6-100-94002-0581-00418 $ 11,368,748. $ (-900,000) $ 10,468,748.59
DBNHS/NENDC/ESNDC
P6-100-91042-0547-01300
SPARC
P 6-100-91042-0547-01301
GFCDC/ASANDC
P6-100-91042-0547-01304
NEDA
P6-100-91042-0547-xxxxx
Total Changes
$ 734,166.00 `.�, 300,000.00 $ 1,034,166.00
$ 348,223.00 $ 0,000.00 $ 548,223.00
$ 244,723.00 $ 300,0 0.00 $ 544,723.00
$ 00.00 $ 100,000.0 $ 100,000.00
0
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FURTHER RESOLVED, that the mayor or his designated representatives, PED Grants
anagement staff are further authorized to submit to the U. S. Department of Housing and
U n Development any assurances, certifications, technical changes, or additional
infor tion that may be required by said Department to amend the City's Community
Develop ent Biock Grant Program, and that the Director of the Department of Planning
and Econo �c Development is authorized to amend existing program guidelines to
implement the nvest Saint Paul goals.
� Adoption Certified by Council Secretary
B
Approved by Date
Mayor:
�
Planninq and EconBmic
�
Form Approved by City
�
Form Approved by Mayor for Submi�sion to
Council \
By:
Approved by the Office of Financial Services
By:
�
Adopted by Date
Council:
Council File # ;��
Green Sheet # 3042590
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RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
by
WHEREAS, tF
HRA Board of
WHEREAS, the HI
participating in the
WHEREAS, the Saint Pa
CDCs participating in the
Housing Rehabilitation Program for CDCs was approved by the
on February 23, 2005; and
of Commissioners approved funding recommendations for CDCs
on May 11, 2005; and
Council approved a budget amendment for additional funding for
m on March 14, 2007; and
WHEREAS, the funding source f this program is the Community Development Block Grant
fund; and
WHEREAS, additional funds are recom ended to provide needed loans to qualified
homeowners in the Invest Saint Paul targ t neighborhoods.
RESOLVED, that upon recommendation of t�Mayor, the Council of the City of Saint Paui does
hereby approve the foliowing amendment t the Community Development Block Grant Fund:
CURREN7�
BUDGET �
Comp. Home Pur & Rehab
P6-100-94002-0581-00418 $ 11,368,748.59
/3
DBNHS/NENDC/ESNDC
P6-100-91042-0547-01300
SPARC
P6-100-91042-0547-01301
GFCDC/ASANDC
P6-100-91042-0547-01304
AMENDED
CHANGE BUDGET
(-900,000) $ 10,468,748.59
0,000.00 $ 1,034,166.00
200,0 0.00 $ 548,223.00
$ 734,166.00 $
$ 348,223.00 $
$ 244,723.00 $
NEDA
P6-100-91042-0547-xxxxx $
Total Changes
00.00 $
�
100,000.00 $
0
544,723.00
100, 000.00
�
\
� 7-7�8
..
.,
R RESOLVED, that the mayor or his designated representatives, PED Grants
ient staff are further authorized to submit to the U. S. Department of Housing and
welopment any assurances, certifications, technical changes, or additional
>n that may be required by said Department to amend the City's Community
�nt Block Grant program.
Adoption Certified by Council Secretary
By:
Approved by Date
Mayor:
�
�
Form Approved
By:
Form Appr Mayor for Submission to
Council � /� ,, \
BY � - f�
�
... . -. .,� ,- .��`� � y . _ - -
' �"'�-'� —
Adopted by Date
Council: