D2059 White — CityCierk CITY OF SAINT PAUL - La
Pink — Finance Dept. NO:
Canary Dept.
OFFICE OF THE MAYO$
Date: MAY 19 1975
ADMINISTRATIVE ORDER
•
ADMINISTRATIVE ORDER,:
Pursuant to the authority granted by City Council Resolution,
C. F. 264630 and Ordinance No. 15751 (Housing Rehabilitation Loan and
Grant Program) and Council Resolution, C. F. 265032 (Council approval
of Year I Community Development Block Grant) , the proper City officers
are authorized and directed to execute on behalf of the City of Saint
Paul Joint Powers Agreement providing for the administration of the
City of Saint Paul' s Housing Rehabilitation Loan and Grant Program by
the Housing and Redevelopment Authority of the City of Saint Paul, in
accordance with the terms and conditions set forth in the Council-
approved Guidelines, and further approving the first budget providing
funds in the amount of $732,250.00 from the Community Development
Block Grant Program for administrative expenses, $1,500,000.00 of City
• G. 0. Bond funds, and $1,000,000.00 of Community Development Block
Grant Proceeds for loan and grant purposes.
C' Administr r
APPROVED AS TO FORM APPROVEDI TO FUNDING
sistant City/Attorney Depart ent Head_
-� Dire rtm Finance
and Management Services 4U''1—
• 1 C/�, -
Date
Administra a Assistan to Mayor
• r '
•
AGREEMENT FOR ADMINISTRATION OF
CITY REHABILITATION LOAN AND GRANT PROGRAM
THIS AGREEMENT, Entered into this eday of ,
1975, by and between the CITY OF SAINT PAUL, hereinafter th "City
and HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL,
1,11INNESOTA, hereinafter the "Authority";
WITNESSETH:
WHEREAS , The Council of the City of Saint Paul, pursuant to
the authority granted it by Chapter 351, Laws of Minnesota for
1974, is authorized to develop and administer a Housing Rehabili-
tation Loan and Grant Program with respect to property owned and
occupied by persons of low and moderate income located anywhere
within the City' s boundaries, and pursuant to that authority has
enacted Resolution No. 264633 and Ordinance No. 15751, establish-
ing; guidelines and standards to be followed in the administration
of the approved Housing Rehabilitation Loan and Grant Program;
and
WHEREAS , The Council approved Program contemplated the em-
ployment of the services of the Authority in the implementation '
thereof, and the Mayor has been authorized by the City Council to
enter into the necessary contracts for the purpose of administering
the Rehabilitation Loan and Grant Program; and
WHEREAS, The Authority is authorized by Minnesota Statutes,
Section 462.445, Subdivision 9, to make 'rehabilitation loans and
grants with respect to property located anywhere within its area
of operation whether within or without the boundaries of an urban
renewal area; and
WHEREAS, The authority has administered similar housing and
rehabilitation loan and grant programs in neighborhood development
areas and possesses the necessary expertise and staff to assist
the City in administering the Council approved Housing Rehabilita-
tion Loan and Grant Program; and
WHEREAS, The City and Authority, in accordance with the auth-
ority possessed by each of them respectively and in accordance
with Minnesota Statutes, Section 471.59 (joint exercise of powers) ,
desire to enter into this proposed Agreement in accordance with
the terms and conditions set forth below;
NOW, THEREFORE, THE CITY AND AUTHORITY DO HEREBY MUTUALLY
AGREE AS FOLLOWS:
1. Scope of Services: The Authority shall perform all
services necessary to administer the Housing Rehabilitation Loan
and Grant Program (hereinafter, the "Program") as defined in
Council Resolution Number 264630 and Ordinance Number' 264631,
which resolution and ordinance are attached hereto and hereby in-
corporated into this Agreement. Services of the Authority shall
include the following activities: placement of loans and grants,
administration of loan repayments, assistance to recipients in
rehabilitation of the properties and, if necessary, enforcement
,s
2.
• and foreclosure of delinquent loans . In carrying out its activ-
ities under this Agreement, the Authority shall report periodically
to the City Administrator or his designee on the status of the
Program. The Authority in administering the Program shall adhere
to the Program Concept and Guidelines as adopted by the City and the
Rehabilitation Plan for St. Paul Rehabilitation Loan and Grant
Program as adopted by the City in Council Resolution No. 265169
and any amendments to the Program Concept and Guidelines or the
Rehabilitation Plan which may be similarly promulgated during the
life of this Agreement.
2. Time of Performance : The services of the Authority under
this Agreement shall commence as of the date of the Agreement and
shall continue until such time as either party may terminate the
Agreement in the manner set forth herein. This Agreement may be
terminated by either party for any reason whatsoever by the de-
livery to the other party of written notice of termination at
least forty-five (45) days prior to the effective date .of termina-
tion.
3. Annual Budget: The Authority shall be reimbursed for its
administration and operation expenses incurred in carrying out
the Program in accordance with the terms and conditions of this
Agreement. The loan and grant funds shall be issued in accordance
with the City Council approved Concept Guidelines and Rehabilitation
• Plan and such other directives as may be issued from time to time
3.
• by the City Administrator or his designee . The Authority shall . .
submit a proposed annual budget for its administrative and opera7
tion expenses . Upon being approved by the City in accordance
with the City' s accounting practices, the budget shall become part
of this Agreement, and the Authority shall be entitled to be re
imbursed for its administrative and operation expenses in actor
dance with the approved budget. The budget for the current year
is attached hereto and incorporated herein by reference. The
Authority shall submit its subsequent budget requests to the City
Administrator in accordance with the City budget practices, and
shall use such forms as may be required by the City' s Budget
Director. Rehabilitation loans and grants shall be included in the
• annual budget. All annual budgets may be amended from time to time
in accordance with procedures approved by the City Administrator.
The Authority shall be entitled to receive advances on a
monthly basis based on anticipated administrative and operation
expenses and, further, based upon anticipated loans and grants to
be issued during the next succeeding month. If the need arises
and to meet unanticipated conditions, the Authority may receive
Additional advances for loan and grant funds.
The Authority may deposit funds received by it from the City
in-interest-bearing accounts, and all interest earned shall be used s
only for loans and grants and related purposes, and not for operat-
ing and administrative expenses.
4.
• Audit; Records: The Authority shall
4. Quarterly Reports , J y
provide the City with complete quarterly accounting reports . of
all disbursements and expenditures made from all funds provided ti
to the Authority by the City in the implementation of the Rehabil t.
itation Loan and Grant Program. The City shall have the right to
audit the records maintained by the Authority for the City-wide
Rehabilitation Loan and Grant Program administered under this
Agreement. All records and other data maintained by the Authority,
for the purpose of administering and implementing the Rehabilitation
Loan and Grant Program shall become the property of the City upon .
the termination of this Agreement, and all such records and data
shall be delivered to the City Administrator.
5. Rules and R ulation.s : The Authority shall promulgate
rules and regulations to ensure the efficient operation of the
Rehabilitation Loan and Grant Program. All such rules and regula-
tions shall conform to the directives contained in the City
i
Council approved Program Concept and Guidelines and Rehabilitation
Plan as approved and adopted by the City Council and as may. be
amended from time to time. If any differences exist between the
Authority' s rules and regulations , this Agreement, and the Council
approved Program Concept and Guidelines and the Rehabilitation
Plan, then the provisions of the Program Concept and Guidelines
and Rehabilitation Plan shall control.
5.
6. Independent Contractor: For the purpose of this Agree-
ment, the Authority shall be deemed to be an independent
contractor, and not an employee of the City. Any and all employ-
ees of the Authority or other persons, other than City employees,
while engaged in the performance of any work or services required
by Authority under this Agreement, shall not be considered employ-
ees of the City; and any and all claims that may or might arise
under the Workmen' s Compensation Act of Minnesota on behalf of
said employees or other persons while so engaged, hospitalization
insurance coverages, Social Security and pension payments and
benefits, other employee obligations and benefits, and any and all
claims made by any third party as a consequence of any act or
omission on the part of the Authority, the employee or other per-
sons while so engaged on any of the work or services to be rendered,
shall in no way be the obligation or responsibility of the City.
The Authority shall pay as they become due all just claims for
work, tools, machinery, skill, materials, insurance premiums,
equipment and supplies, personnel and all other contractual obli-
gations entered into pursuant to and in the performance of this
Agreement.
7. Non-Discrimination: The Authority shall be deemed a con-
tractor for the application of all provisions hereof and ordinances
and other laws against unlawful discrimination on account of race,
creed, sex, age, disability, sexual preference, or color.
This Agreement is subject to Title VI of the Civil Rights
Act of 1964 (Public Law 88-352) and the rules and regulations
6.
issued pursuant thereto, and Authority shall comply with Executive
Order_ No. 11246, entitled "Equal Employment Opportunity", as
supplemented in Department of Labor Regulations (4 CFR, Part 60) .
The Authority agrees to comply with all the terms and con
ditions set forth in Chapter 238, Laws of Minnesota for 1941.
The Authority further agrees that no person .shall be denied
the benefits of or be subjected to discrimination under any pro-
gram „or activity funded in whole or in part with funds made
available pursuant to this Agreement on the grounds of race, creed,
color, handicap, national origin, sex, political affiliation, or
beliefs . The Authority shall develop and implement an Affirmative
Action Plan which declares that it does not discriminate on the
• basis of race, color, religion, creed, national origin, sex and
age, and which plan specifies goals and target dates to assure the
implementation of that plan. Authority shall submit such
Affirmative Action Plan for approval to the City' s Department of
HuTian Rights . The Authority' s Affirmative Action Plan shall be
developed so as to ensure that applicants are employed and_ that`
employees are treated during employment without regard to :heir+
race, creed, religion, color, sex, age, disability, sexual prefer
erence or national origin. Such action shall include, but not be
limited to, the following: employment, upgrading, demotion,
training or transfers.; recruitment or recruitment advertising;
layoff or termination, rates of pay, or other forms of corlpensa-
tion; and selection for training, including apprenticeship. The
7.
- a
•
Authority agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided
by the City setting forth the provisions of this non-discrimina
tion clause.
IN WITNESS WHEREOF, The parties hereto have caused this
Agreement to be executed on their behalf as of the day and year
first above written.
Apprdver as to Form; CITY 0 1 PAUL
By
Ass"taiajt gity to ney Its Mayor
• Its Lire Departr�e� t f
Finance and Managezr?ent ervices
HOUREDEVELOPMENT AUTHORITY
OF T PAUL9 MINNESOTA
By
S El
ry
8•
•
BUDGET FOR CITY-WIDE
REHABILITATION LOAN AND GRANT PROGRAM
FIRST YEAR OF ACTIVITY
APRIL 1, 1975 THROUGH MARCH 31, 1976
A. RESOURCES FOR LOANS AND GRANTS
1. City General Obligation Bonds ($3.0 million total
authorized in legislation) $1,5002000
2. Community Development Program - Year I
(a) Grants ($400,000 to NDP, $200,000 to City-
Wide and Priority Rehabilitation Areas) 600,000
(b) Loans (to be assigned to areas later) 400,000
Total $295002000
• Note: It is anticipated that additional resources will be available
for loans and grants through leveraging of funds with banks,
a bond authorization passed by the 1975 State Legislature for
the NDP Areas and the Minnesota Housing Finance Agency
Rehabilitation Program. However, the exact dollar amount for
each of these programs is unknown at this time.
B. RESOURCES FOR ADMINISTRATION OF PROGRAM
Community Development Program - Year I
'Administration of Rehabilitation including Citizen
Participation for Rehabilitation $ 7322250
".Includes administration of rehabilitation programs in all identified
NDP and Priority Rehabilitation areas.
•55 East Fifth Streat, Sai;it Paul, N in-ne3ota 55101. E-ovard N.Heflfleid,executive diiec.t)r.phone 223 5218 '�er
DATE APRIL 21, 1975
' a
HOUSING AND RE^uEVELOPMENT AUTHORITY OF THE CITY OF S .114T PAUL, M INNE-SOTA
O COUNCIL FINANCE C012 TTEE RECEIVED
FROM E. N. HELFELD . �!`,:�-� APR 2 3 1975
t
SUBJECT RE UBILITATION P:OCRAti STAFi1i'm NEEDS JGRANT-IN-AID PROGRAMS
Based upon previous actions of the Mayor and City Council, the HRA has been making
preparations to implement the City-i-.ide F.ehabili_a".0n Program. City Counci1 has
previously approved the guidelines for the rehabilitation program, which guidelines
call for administration of the program by F3A, and has authorized the 'I'llayor to
contract with 1111",k for ad^inistration of the prograa. The contract is nova being put
in final form by the City Attorney for execution by the Mayor and F-D'A. HRA pre-
parations for implementation of the progranni have advanced to the stage where the
program can begin inmealately, and in fact has beer, initiated by the Mayor on April 21,
1975.
• The HUTU Board of Commissioners has approved a staff structure developed through a
zero budgeting process which will permit the I'.i.A to effectively Beet its responsibilities
xn carrying out the reh.=bi.li.tation prrograpt. The material setting forth these staff needs,
comparison t•,ith existing staff, and anti.cipatee production is set forth on the attached
sheets. This data is summarized as follows:
I. Production
About $42 million Uill be available during CD Year I for loans and grants.
Because of a steady fundin- sourca and simplified procedures, each
rehabilitation advisor is expected to process 50 loan and -rant applica-
tions to completion, up substantially from the 21 per advisor handled
last year. At an average of $5,000 per package, this should result in
900 loans aad grant's being Wade next year.
II. Staff
(a) Rehabilitation Advisor: coa=crs with homeo;aner; detcrmines
rehabilitation needs of structure and prepares scope of work;
monitors tong progress and aids homeowner in dealing with
contractor.
18 staff required; 6 new
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41 i1 r I j �tl �(
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COUNCIL FINANCE comaTTEE - 2 - APRIL 21, 1975
•
II. Staff (Cont.)
(b) Rehabilitation Advisor (compliance inspections): with City
staff, inspects properties to assure their compliance with program
standards when such properties are proposed to be occupied by pro-
gram relocatees or when properties are to be privately purchased
through the use of FH.A or VA financing..
2 staff required; 0 new
(c) Rehabilitation Expeditors: arbitrates disputes between homeowner
and contractor, aids in bidding rehabilitation packages, reviews
scopes of work for technical sufficiency, and provides supervision
to rehabilitation advisors.
5 staff required; 1 new
(d) . Loan Officers: provides financial services to rehabilitation
program; determines financial eligibility and capability of loan
• applicant, arranges closings- and loan repayment activities.
5 staff required; 1 new
(e) Secretary - Clerical (cartral office) provides typing, filing,
and information for: processing for loan officers and other
central office rehabilitation staff. `
4 staff required; 1 new
(f) Technical/Contract Staff: provides technical review of all
re_zaoiiitation packages which require for:,nal bidding and spot
checks other packages to provide systematic quality check on
field staff; handles special rehabilitation programs such as
Irvine Park, house recycling, house moving, co-imarcial
rehabilitation; aids in training staff.
6 staff. required; 1 new .
(g) Supervisory Staff
(1) Deputy Chief of Rehabilitation: supervises all field
office staff activities and monitors x;ork production;
resolves field office probletas and aids Chief of
Rehabilitation in operation of department.
IN
r
COUNCIL FINANCE COPTUTTEE - 3 - APRIL 21, 1975
II . Staff (cont.)
(g) Supervisory Staff (coat.)
(2) Chief of Rehabilitation: establishes work procedures,
standards and goals, coordinates inter-departmental
activities and programs with other agencies, such as
Cormvunity Housing Corporation, Housing Finance Agency,
and City Building Department, and provides overall
direction to the rehabilitation program.
2 staff required; 0 new
Subtotal: 42 staff required; 10 new ;
(h) Secretarial/Clerical for Field Offices: provides typing
and filing services for all field office activities including
rehabilitation loan applications..
15 staff required; 4 new (Approximately 40% of time spent
on rehabilitation program)
Co* -,unity Organizers: will work exclusively in concentrated
rehabilitation and identified treatment areas to organize
block clubs; make initial homeowner contacts, and generally
to encourage homeowner participation in the rehabilitation
program. These services are essential is order for the
rehabilitation advisors to meet their production goals.
3 staff required; 3 new
Subtotal: 18 staff required; 7 new
Total Staff•: 60 staff; 17 new
*Includes all 15 field office secretarial staff
Set forth on the attached table are the positions, salaries, and total salary and
benefit costs involved for this program. All such costs are included in the CD
budget, thus permitting all bond funds to be used for loans and grants.
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