The URL can be used to link to this page

97-583�L Referred To Ordinance # Green Sheet # �� ! l � �� y = � �'^-.� 3 , s ��.� 7 e `d , . ., Presented By 2 3 4 5 6 7 ORDINANCE PAUL, MIPINESOTA � Council File # � �� Committee: Date GIVING APPROVAL TO A SINGLE FAMILY HOUSING PROGRAM TO BE FINANCED BY THE ISSUANCE OF SINGLE FAMILY MORTGAGE REVENUE BONDS AND MORTGAGE CREDIT CERTIFICATES 8 WIIEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C 9 (the "Housing AcY'), the City of Saint Paul, Minnesota (the "City") is authorized to adopt a housing plan and 10 carry out programs for the financing of single family housing for persons of low and moderate income; and 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 WHEREAS, the City Council (the °City Council") of the City has prepazed the Housing Plan for Local Housing for the City, as amended, which pian was adopted pursuant to the Housing Act; and WHEREAS, the Minneapolis/Saint Paul Housing Finance Boazd (the "Board"), a joint powers boazd organized under a Joint Powers Agreement (the "Joint Powers Agreement") by and between the Minneapolis Community Development Agency (the "Agency") and 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 in 1997 (the "Program") to be financed by the issuance of one or more series of revenue obligations and/or mortgage credit certificates ("MCCs") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters 462A, 462C and 474A and Section 471.59 (collectively, the "Act"); and WHEREAS, pursuant to the Act, the Board 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 construction and rehabilitation, and to facilitate the purchase and sale, of singie family housing for eligible persons or families under the Act; and WHEREAS, 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 are 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 35 publication of notice in a newspaper of general circulation in the City and Minneapolis at least fifteen days in 36 advance of the hearing; and 37 38 WHEREAS, the City Council on May 14, 1997 conducted a public hearing on the Program, a copy of 39 which is attached hereto as E�ibit A, after publication of norice as required by the Act; and 9� -sr� 40 41 42 43 44 45 46 47 WIIEREAS, the Program was submitted to the Metropolitan Council at or before the time of publication of notice of the public hearing on such Program, and the Metropolitan Council was afforded an opportunity to present coxnxnents at the public hearing, all as required by the Act; and WIIEREAS, the Program provides for the issuance of single family mortgage revenue bonds or obligations in one or more series pursuant to the Act (the "Bonds") to make or purchase or cause to be 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, prunarily by low and moderate income 48 persons and families, of single family housing located within the geographic boundaries of the City ar 49 Mimieapolis; and 50 51 WHEREAS, the aggregate principal amount of Bonds, or the total "non-issued bond amount" of 52 MCCs issued in lieu of the Bonds under the Program, will not exceed $47,342,981.25; and 53 54 WIIEREAS, the City's 1996 entitlement allocation carried forward for single family purposes, the 55 City's entire 1997 entitlement allocation and Minneapolis' entire 1997 entitlement allocation may be used for 56 the issuance of Bonds or MCCs; and 57 58 59 60 61 62 63 64 65 66 67 WHEREAS, 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 WHEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the Boazd or the Authority are in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT PAUL AS FOLLOWS: 1. The Program is hereby approved, subject to final agreement by the Board and the purchasers 68 of the Bonds, if any, and by the Board as issuer of the MCCs, as to the exact terms of the Program and the 69 fmancing therefore and the MCCs. The officers of the City and the Boazd sha11 do all things and take all 70 actions as may be necessary or appropriate to cany out the Program in accordance with the Act and any other 71 applicable laws and regulations. 72 2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby approved; provided 73 that the aggregate principal amount of Bonds, or the total "non-issued bond amount" of MCCs issued in lieu 74 of Bonds, shall not exceed $47,342,981.25. 75 The Bonds may be issued in one or more series at the rime or times and pursuant to terms 76 determined by the Board, and be structured so as to take advantage of whatever means aze available and are 77 permitted by law to enhance the security for, or marketability of, the Bonds, provided that any such financing q�-sr� 78 structure must be approved by the Boazd. The MCCs may be issued at the time or times and pursuant to 79 terms determined by the Boazd. All such deterniivations by the Board must comply with the applicable 80 provisions of the Act and the Internal Revenue Code of 1986, as amended, and regulations promulgated 81 thereunder. 82 4. The Boazd is authorized to take all actions which may be necessary or desirable in connection 83 with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no further approval or consent 84 of the City sha11 be required prior to the issuance of the Bonds or the MCCs by the Boazd, or prior to the 85 taking of any action by the Boazd to undertake and implement the Program. 86 5. Nothing in this Resolution or the documents prepared putsuant hereto shall authorize the 87 expenditure of any municipal funds on the Program other than as specified and authorized by separate actions 88 of the City and other than the revenues derived from the Program ar otherwise granted to the City for this 89 purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property 90 or funds of the City except the revenues and proceeds pledged to the payment thereof, nor sha11 the City be 91 subject to any liability thereon. The holders of the Bonds shall never have the right to compel any exercise of 92 the tasing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to 93 enforce payment against any property of the City. The Bonds sha11 recite in substance that the Bonds, 94 including the interest thereon, are payable solely from the revenues and proceeds pledged to the payment 95 thereo£ The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory 96 limitation of indebtedness. at'� -5�`3 97 6. Any one or more series of the Bonds or the MCCs may be issued by the Authority in lieu of 98 issuance by the Boazd, at the discretion of the Authority. �rtAi �eurn Adopted by Council: Date Certified by Council BY � 1 �_ � � / Approved by Mayor: Date � ��L`l By: � , JUN -71991 Requested by Department of: �.. �' _ ' � � �i�� i //i�� ' �� !!+�- � � • .a//1 �. I�/,�" / i - - - Approved by Mayor for Submission to Council By: �_i ��.' 4� .. S�''3 DEPAqTMENT/OFFIGE/COUNCIL DATEINITIATED N_�` 3 0 397 PED 4/29/97 GREEN S __ _ . -- -- - CONTACTPERSON&PHONE �NITI � INRIAVDATE OEPAFTMENT DIpE CITY COUNCfL Katy Lindblad 266-6614 nuice, CIT/ATfOFiNEY CITYCLERK MUST BE ON CAUNCIL A6ENOA BV (DATE) . NUMBEP FOP � BUDGET DIRECTOR � FIN. & MGT. SEfiVICES DIR. POUTING SI14�97 OflDEP �MpYOR(ORASSI5TANn � TOTAL # OF SIGNATURE PAGES 7 (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTED: Approval of a single family housing program to be financed by the issuance of single family mortgage revenue bonds and mortgage credit certificates. RECAMMENDA710N5: Approve (A) or Fteject (R) pERSONAL SEflVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: _ PIANNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/firm ever worked under a coMrac[ for this department? - _ CIB CAMMfREE _ VES NO _ STAFF 2. Has this person/firm ever been a city employee? — YES NO _ OIS7FICTCOURT _ 3. DOes thiS personttirm possess a Swll not nOrmall y possessed by any curtent ciry employee? SUPPoRTS WHICH COUNCIL O&IECTIVE? YES NO Explain all yes answers on separete sheet and aNaeh to green sheet INITIATING PROBLEM. ISSUE, OPPORTUNITV (Who, What, When, Where, Why�: The cities of Saint Paul and Minneapolis jointly fund their first time home buyer programs through the Soint Housing Finance Board. Each year the cities adopt a Housing Program and authorize the Soint Board to issue mortgage revenue bonds and/or mortgage credit certificate with their entitlement allocations to finance these single family programs. Specific bond issues will come back to the City Council and HRA for approval as they are planned. A�VANTAGES IP APPROVED: Saint Paul and Minneapolis able to continue their joint first time home buyer programs. DISADVANTAGES IF APPROVEO pa s � ��'+�«�� Wa�,9a��! �'?�gs�(� E.'+�x�.�eCa�.3' ��'��'°a:a�YT j Yp rr��°� � � 1��7 �'��.� � � p � 1997 - ��R��Y DISADVANTAGES IF NOT APPAOVED: Saint Paul and Minneapolis unable to continue first time home buyer programs. , 707AL AMOUNT OFTRANSAC710N $ NA COS7/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIWG SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION: (EXPLAIN) a1'i -5�3 E�ibit A NIINNEAPOLIS/SAINT PAUL 1997 SINGLE FAMII.Y JOIN'I` BOARD PROGRAM The City of Minneapolis, Mumesota ("Mnuieapolis") and the Muuieapolis Community Development Agency (the "Agency"), and the City of Saint Paul, Minnesota ("Saint Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Miunesota (the "Authority"), acting individually or joindy through the Minneapolis/Saint Paul Housing Finance Boazd (the "Joint Board") (collectively, the "Issuers") propose to issue mortgage credit certificates ("MCCs") under Section 25 of the Inten�al Revenue Code of 1986, as amended (togeffier with regulations promulgated thereunder, the "Code"), or revenue bonds under Section 143 of the Code in one or more series, in either case to fuiauce the single family housing program described herein (the "Program") pursuant to authority conferred by Minnesota Statutes, Cl�apters 462C, 462A and 469, all as amended, (and any other general or special law authority for the issuance of obligations to finance a single family housing program or development) (coliectively, the "Act"). In creating this Program, the Issuers have found and deteimined that the preservation of the quality of life in Mnmeapolis and Saint Paul (the "Cities") is dependent upon the maintenance and provision of adequate, decent, safe and sanitary housing stock; that accomplishing the provision of such housing stock is a public putpose and will benefit the residents of the Cities; that a need exists withixi the Cities to provide in a timely fashion additional affordable housing to be sold to persons of low and moderate income residing and expected to reside in the Cities; and that a need exists for mortgage credit to be made auailable for both existing and new single family housing and for rehabilitation of eacisting single family housing and for home improvements. Pursuant to the Act, the Cities intend to issue or to authorize the 3oint Board (or the Agency and/or Authority in lieu of the Joint Boazd) to issue one oz more series of single family mortgage revenue bonds (the "Bonds") to make or purchase mortgage loans (or securiries representing pools of such loans) to finance the acquisition, covstrucfion, rehabilitation or improvement of single fanuly housing m the Cities (or either of them). In addition to or in lieu of issuing the Bonds, the Cities intend to issue or authorize the Joint Board (or the Agency and/or Authority in lieu of the Joint Board) to issue MCCs to mortgagors who obtain mortgage loans to finance the purchase, covst�•uction, rehabilitation or improvement of single family housing in the Cities (ar either of them). The aggregate principal amount of Bonds, ar the "non-issued bond amount" of MCCs issued in lieu of the Bonds, will not exceed $47,342,981.25. Both the mortgage loans financed through the Bonds, and the mortgage loans to which the MCCs relate, will be subject to the following terms: ourchase price - the maximum purchase price for fuiauced homes shall not exceed the lesser of (a) 90% (110% in "targeted azeas") of the applicable "a�erage area purchase price" deterniined by the United States Department of the Treasury or by the Issuers on the basis of more complete information, or (b) 3 times the applicable income limit far the Progratn unposed �� -st3 by Minnesota law (except that in certaiu azeas the purctiase price shall not exceed 4 times the applicable income limit to the extent consistent with applicabie federal law); income limits - the m�iui� income of the mortgagors shall be the lower of (a) the income reshictions imposed by federal tax law or (b) the income restrictions imposed by Mimiesota Statutes, Section 462C.03, Subd. 2, including the restricfion of Subd. 7 that for the first six months of the Prograzu, 50% of the money available to make mortgage loans or the "non-issued bond amount" of MCCs must be reserved for persons and fawilies with adjusted incomes not greater than 70% of the general Program income limits. In connection with this Pxogram: (i) (a) in wnnection with any mortgage loans finuiced with the proceeds of mortgage revenue bonds, any financial institufions described in Secfion 462C.03, Subd. 4, and other mortgage lenders with offices located in the Cities and which are FHA/VA approved sellers of mortgage loans as well as other financial institutions and mortgage lenders which are FHA/VA, or FNMA/FHLMC approved sellers of mortgage loans, will be eligible for consideration for origination of such loans; the Cities will not limit participation in the Prograui to a single lender unless other lenders aze not willing to participate for the consideration offered; the Agency and the Authority shall be eligible for consideration for origination of loans; (b) in connection with issuance of MCCs by the Issuers, MCCs will not be limited to loans originated by particulaz lenders but will be auailable with respect to the origination of qualifying mortgage loans by any participating lender; (ii) loans will not be made available or set aside for the exclusive use of developers or builders except, in the case of mortgage loans financed with the proceeds of mortgage revenue bonds, for new housing described in (xiri) below; (iii) the Cities eapect to act as or to cornract with a program adminisirator or servicer to provide services to ensure that the Program will be consistent with the housing plans of each of the Cities, this Prograxn, the Act and applicable federal law; (iv) up to an aggregate of $47,342,98125 of the foliowing portions of the State volume cap may be used in the Program: • $9,780,981.25 of the 1996 entitlement alloca6on for Saint Pau1, carried forwazd for single family purposes; • $21,464,000 of the 1997 enfitlement allocation far Minneapolis; $16,098,000 ofthe 1997 entidement allocation for Saint Paul; q � - S �''3 provided, however, that no provision of this Progau� shall in any way prevent either of Muuieapolis or Saint Paul from using all or a portion of its respective entidement allocation(s) for multifauiily housing or any other authorized purpose; accordingly, the election made by the Cities to issue MCCs in lieu of Bonds may be revoked in whole or in part, at any time during the calendar year in which the election was made as pemritted by Section 25 of the inteinal Revenue Code and Section 1.2414T(c)(3) of the Treasury Regulations. The resulting unused entitlement allocation may be used to issue bonds for single family housing or other authori�d purposes; (v) the Program will meet the needs of low and moderate income families by providing below-mazket rate finuicing far the acquisifion or rehabilitation of single family homes or by providing a tas credit for mortgage interest paid, thereby enabling such persons to qualify for mortgages which would be unauailable at market xates; (vi) the Cities, the Agency, and the Authority and the Joint Boazd will request a waiver by the Mnmesota Housing Finance Agency of the provisions of Section 462C.03, Subd. 5; (vii) no homes which are located in previously unincorporated real properry annexed by the Cities within one yeaz prior to the date of adoption of this Prograui will be finauced under this Program; (viii) prohibitions or limitafions on assumption will be imposed to the extent required by federal law relating to the t� exempt status of bonds or to the continued validity of MCCs issued pursuant to the Program; provided that the Cities, the Agency, the Authority or Joint Boazd may impose more stringent limitarions at their discretion; (ix) the estnnated amount of rehabIlitation loans to be made or purchased in the Program is 25% of the aggregate principal and certified indebtedness, respectively, of all Bonds and MCCs issued; (x) the estnnated aggregate principal amount of the Bonds, or estimated "non-issued bond amount" (as such term is used in Section 25(d)(2)(B) of the Code) of MCCs issued in lieu of the Bonds, $47,342,98125; (�) the Bonds, if issued, may be issued in one or more series timed for sale consistent with the needs of the Cities in 1997; this amount inciudes the funding of appropriate reserves and payment of costs of issuance; (�i) refinancing of existing indebtedness will be pernutted only where the mortgage loan also finaiices nonsubstantial "rehabilitation" as that term is defined under Mimlesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143 of the Code; qr� .. S t� (�ciri) to the extent required by the Act, during the fust ten (10) months of the origination period, loans finauced by the Bonds (but not mortgage loans assisted by MCCs) will be made fot new honsing only if one of the following conditions is met: (1) the new housing is located in a redevelopment azea and is replacing a structivally substaudard shucture or structures; (2) the new housing is located on a parcel purchased by the respective City or conveyed to such City under Mnuiesota Statutes, Section 282.01, subd. 1; or (3) the new housing is part of a housing affordability initiative, other than those fmanced with the proceeds from the sale of bonds, in which federal, state or local assistance is used to substanfially nnprove the terms of the financing or to substantially write down the purchase price of the new housing; and (xiv) the following additional provisions shall apply only to issuance of MCCs pursuant to this Program: (1) the "certificate credit rate" (as used in Section 25 of the Code) will be 20%; (2) a copy of the form which will be used to elect the nonissued bond amount is attached hereto as E�ibit A; and (3) the Issuers wiil ensure compliance with the requirements of Section 25 of the Code by use of an MCC procedural manual for the Program and by use of the program adnunistrator referenced in item (iii) above. q'1- S�3 EXI IIBIT A TO JOINT BOAIZD PROGRAM MORTGAGE CREDIT CERTIF'ICATE ELECTION (Pursuant to Temp. Reg. § 1.25�"I) (i) Issuer name: [Name] [Address] TII�I: �Number] (ri) Issuer's Applicable limit, per § 146 of the Intemal Revenue Code of 1986: [ALLOCATION FOR 1997: $ � [CARRYFORWARD ALLOCATION FOR 1995: (iri) The aggregate amount of qualified mortgage bonds issued in 1997: [Amount] (iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers during the calendar year: [Amount] (v) The date and amount of any previous elections under 1.25-4T(c) for 1995: [Date and amount] (vi) The amount of qualified mortgage bonds that the issuer elects not to issue: [Amount] State Certification attached. Dated: , 1997 CITY OF [CITY] By Mayor �L Referred To Ordinance # Green Sheet # �� ! l � �� y = � �'^-.� 3 , s ��.� 7 e `d , . ., Presented By 2 3 4 5 6 7 ORDINANCE PAUL, MIPINESOTA � Council File # � �� Committee: Date GIVING APPROVAL TO A SINGLE FAMILY HOUSING PROGRAM TO BE FINANCED BY THE ISSUANCE OF SINGLE FAMILY MORTGAGE REVENUE BONDS AND MORTGAGE CREDIT CERTIFICATES 8 WIIEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C 9 (the "Housing AcY'), the City of Saint Paul, Minnesota (the "City") is authorized to adopt a housing plan and 10 carry out programs for the financing of single family housing for persons of low and moderate income; and 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 WHEREAS, the City Council (the °City Council") of the City has prepazed the Housing Plan for Local Housing for the City, as amended, which pian was adopted pursuant to the Housing Act; and WHEREAS, the Minneapolis/Saint Paul Housing Finance Boazd (the "Board"), a joint powers boazd organized under a Joint Powers Agreement (the "Joint Powers Agreement") by and between the Minneapolis Community Development Agency (the "Agency") and 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 in 1997 (the "Program") to be financed by the issuance of one or more series of revenue obligations and/or mortgage credit certificates ("MCCs") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters 462A, 462C and 474A and Section 471.59 (collectively, the "Act"); and WHEREAS, pursuant to the Act, the Board 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 construction and rehabilitation, and to facilitate the purchase and sale, of singie family housing for eligible persons or families under the Act; and WHEREAS, 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 are 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 35 publication of notice in a newspaper of general circulation in the City and Minneapolis at least fifteen days in 36 advance of the hearing; and 37 38 WHEREAS, the City Council on May 14, 1997 conducted a public hearing on the Program, a copy of 39 which is attached hereto as E�ibit A, after publication of norice as required by the Act; and 9� -sr� 40 41 42 43 44 45 46 47 WIIEREAS, the Program was submitted to the Metropolitan Council at or before the time of publication of notice of the public hearing on such Program, and the Metropolitan Council was afforded an opportunity to present coxnxnents at the public hearing, all as required by the Act; and WIIEREAS, the Program provides for the issuance of single family mortgage revenue bonds or obligations in one or more series pursuant to the Act (the "Bonds") to make or purchase or cause to be 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, prunarily by low and moderate income 48 persons and families, of single family housing located within the geographic boundaries of the City ar 49 Mimieapolis; and 50 51 WHEREAS, the aggregate principal amount of Bonds, or the total "non-issued bond amount" of 52 MCCs issued in lieu of the Bonds under the Program, will not exceed $47,342,981.25; and 53 54 WIIEREAS, the City's 1996 entitlement allocation carried forward for single family purposes, the 55 City's entire 1997 entitlement allocation and Minneapolis' entire 1997 entitlement allocation may be used for 56 the issuance of Bonds or MCCs; and 57 58 59 60 61 62 63 64 65 66 67 WHEREAS, 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 WHEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the Boazd or the Authority are in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT PAUL AS FOLLOWS: 1. The Program is hereby approved, subject to final agreement by the Board and the purchasers 68 of the Bonds, if any, and by the Board as issuer of the MCCs, as to the exact terms of the Program and the 69 fmancing therefore and the MCCs. The officers of the City and the Boazd sha11 do all things and take all 70 actions as may be necessary or appropriate to cany out the Program in accordance with the Act and any other 71 applicable laws and regulations. 72 2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby approved; provided 73 that the aggregate principal amount of Bonds, or the total "non-issued bond amount" of MCCs issued in lieu 74 of Bonds, shall not exceed $47,342,981.25. 75 The Bonds may be issued in one or more series at the rime or times and pursuant to terms 76 determined by the Board, and be structured so as to take advantage of whatever means aze available and are 77 permitted by law to enhance the security for, or marketability of, the Bonds, provided that any such financing q�-sr� 78 structure must be approved by the Boazd. The MCCs may be issued at the time or times and pursuant to 79 terms determined by the Boazd. All such deterniivations by the Board must comply with the applicable 80 provisions of the Act and the Internal Revenue Code of 1986, as amended, and regulations promulgated 81 thereunder. 82 4. The Boazd is authorized to take all actions which may be necessary or desirable in connection 83 with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no further approval or consent 84 of the City sha11 be required prior to the issuance of the Bonds or the MCCs by the Boazd, or prior to the 85 taking of any action by the Boazd to undertake and implement the Program. 86 5. Nothing in this Resolution or the documents prepared putsuant hereto shall authorize the 87 expenditure of any municipal funds on the Program other than as specified and authorized by separate actions 88 of the City and other than the revenues derived from the Program ar otherwise granted to the City for this 89 purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property 90 or funds of the City except the revenues and proceeds pledged to the payment thereof, nor sha11 the City be 91 subject to any liability thereon. The holders of the Bonds shall never have the right to compel any exercise of 92 the tasing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to 93 enforce payment against any property of the City. The Bonds sha11 recite in substance that the Bonds, 94 including the interest thereon, are payable solely from the revenues and proceeds pledged to the payment 95 thereo£ The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory 96 limitation of indebtedness. at'� -5�`3 97 6. Any one or more series of the Bonds or the MCCs may be issued by the Authority in lieu of 98 issuance by the Boazd, at the discretion of the Authority. �rtAi �eurn Adopted by Council: Date Certified by Council BY � 1 �_ � � / Approved by Mayor: Date � ��L`l By: � , JUN -71991 Requested by Department of: �.. �' _ ' � � �i�� i //i�� ' �� !!+�- � � • .a//1 �. I�/,�" / i - - - Approved by Mayor for Submission to Council By: �_i ��.' 4� .. S�''3 DEPAqTMENT/OFFIGE/COUNCIL DATEINITIATED N_�` 3 0 397 PED 4/29/97 GREEN S __ _ . -- -- - CONTACTPERSON&PHONE �NITI � INRIAVDATE OEPAFTMENT DIpE CITY COUNCfL Katy Lindblad 266-6614 nuice, CIT/ATfOFiNEY CITYCLERK MUST BE ON CAUNCIL A6ENOA BV (DATE) . NUMBEP FOP � BUDGET DIRECTOR � FIN. & MGT. SEfiVICES DIR. POUTING SI14�97 OflDEP �MpYOR(ORASSI5TANn � TOTAL # OF SIGNATURE PAGES 7 (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTED: Approval of a single family housing program to be financed by the issuance of single family mortgage revenue bonds and mortgage credit certificates. RECAMMENDA710N5: Approve (A) or Fteject (R) pERSONAL SEflVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: _ PIANNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/firm ever worked under a coMrac[ for this department? - _ CIB CAMMfREE _ VES NO _ STAFF 2. Has this person/firm ever been a city employee? — YES NO _ OIS7FICTCOURT _ 3. DOes thiS personttirm possess a Swll not nOrmall y possessed by any curtent ciry employee? SUPPoRTS WHICH COUNCIL O&IECTIVE? YES NO Explain all yes answers on separete sheet and aNaeh to green sheet INITIATING PROBLEM. ISSUE, OPPORTUNITV (Who, What, When, Where, Why�: The cities of Saint Paul and Minneapolis jointly fund their first time home buyer programs through the Soint Housing Finance Board. Each year the cities adopt a Housing Program and authorize the Soint Board to issue mortgage revenue bonds and/or mortgage credit certificate with their entitlement allocations to finance these single family programs. Specific bond issues will come back to the City Council and HRA for approval as they are planned. A�VANTAGES IP APPROVED: Saint Paul and Minneapolis able to continue their joint first time home buyer programs. DISADVANTAGES IF APPROVEO pa s � ��'+�«�� Wa�,9a��! �'?�gs�(� E.'+�x�.�eCa�.3' ��'��'°a:a�YT j Yp rr��°� � � 1��7 �'��.� � � p � 1997 - ��R��Y DISADVANTAGES IF NOT APPAOVED: Saint Paul and Minneapolis unable to continue first time home buyer programs. , 707AL AMOUNT OFTRANSAC710N $ NA COS7/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIWG SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION: (EXPLAIN) a1'i -5�3 E�ibit A NIINNEAPOLIS/SAINT PAUL 1997 SINGLE FAMII.Y JOIN'I` BOARD PROGRAM The City of Minneapolis, Mumesota ("Mnuieapolis") and the Muuieapolis Community Development Agency (the "Agency"), and the City of Saint Paul, Minnesota ("Saint Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Miunesota (the "Authority"), acting individually or joindy through the Minneapolis/Saint Paul Housing Finance Boazd (the "Joint Board") (collectively, the "Issuers") propose to issue mortgage credit certificates ("MCCs") under Section 25 of the Inten�al Revenue Code of 1986, as amended (togeffier with regulations promulgated thereunder, the "Code"), or revenue bonds under Section 143 of the Code in one or more series, in either case to fuiauce the single family housing program described herein (the "Program") pursuant to authority conferred by Minnesota Statutes, Cl�apters 462C, 462A and 469, all as amended, (and any other general or special law authority for the issuance of obligations to finance a single family housing program or development) (coliectively, the "Act"). In creating this Program, the Issuers have found and deteimined that the preservation of the quality of life in Mnmeapolis and Saint Paul (the "Cities") is dependent upon the maintenance and provision of adequate, decent, safe and sanitary housing stock; that accomplishing the provision of such housing stock is a public putpose and will benefit the residents of the Cities; that a need exists withixi the Cities to provide in a timely fashion additional affordable housing to be sold to persons of low and moderate income residing and expected to reside in the Cities; and that a need exists for mortgage credit to be made auailable for both existing and new single family housing and for rehabilitation of eacisting single family housing and for home improvements. Pursuant to the Act, the Cities intend to issue or to authorize the 3oint Board (or the Agency and/or Authority in lieu of the Joint Boazd) to issue one oz more series of single family mortgage revenue bonds (the "Bonds") to make or purchase mortgage loans (or securiries representing pools of such loans) to finance the acquisition, covstrucfion, rehabilitation or improvement of single fanuly housing m the Cities (or either of them). In addition to or in lieu of issuing the Bonds, the Cities intend to issue or authorize the Joint Board (or the Agency and/or Authority in lieu of the Joint Board) to issue MCCs to mortgagors who obtain mortgage loans to finance the purchase, covst�•uction, rehabilitation or improvement of single family housing in the Cities (ar either of them). The aggregate principal amount of Bonds, ar the "non-issued bond amount" of MCCs issued in lieu of the Bonds, will not exceed $47,342,981.25. Both the mortgage loans financed through the Bonds, and the mortgage loans to which the MCCs relate, will be subject to the following terms: ourchase price - the maximum purchase price for fuiauced homes shall not exceed the lesser of (a) 90% (110% in "targeted azeas") of the applicable "a�erage area purchase price" deterniined by the United States Department of the Treasury or by the Issuers on the basis of more complete information, or (b) 3 times the applicable income limit far the Progratn unposed �� -st3 by Minnesota law (except that in certaiu azeas the purctiase price shall not exceed 4 times the applicable income limit to the extent consistent with applicabie federal law); income limits - the m�iui� income of the mortgagors shall be the lower of (a) the income reshictions imposed by federal tax law or (b) the income restrictions imposed by Mimiesota Statutes, Section 462C.03, Subd. 2, including the restricfion of Subd. 7 that for the first six months of the Prograzu, 50% of the money available to make mortgage loans or the "non-issued bond amount" of MCCs must be reserved for persons and fawilies with adjusted incomes not greater than 70% of the general Program income limits. In connection with this Pxogram: (i) (a) in wnnection with any mortgage loans finuiced with the proceeds of mortgage revenue bonds, any financial institufions described in Secfion 462C.03, Subd. 4, and other mortgage lenders with offices located in the Cities and which are FHA/VA approved sellers of mortgage loans as well as other financial institutions and mortgage lenders which are FHA/VA, or FNMA/FHLMC approved sellers of mortgage loans, will be eligible for consideration for origination of such loans; the Cities will not limit participation in the Prograui to a single lender unless other lenders aze not willing to participate for the consideration offered; the Agency and the Authority shall be eligible for consideration for origination of loans; (b) in connection with issuance of MCCs by the Issuers, MCCs will not be limited to loans originated by particulaz lenders but will be auailable with respect to the origination of qualifying mortgage loans by any participating lender; (ii) loans will not be made available or set aside for the exclusive use of developers or builders except, in the case of mortgage loans financed with the proceeds of mortgage revenue bonds, for new housing described in (xiri) below; (iii) the Cities eapect to act as or to cornract with a program adminisirator or servicer to provide services to ensure that the Program will be consistent with the housing plans of each of the Cities, this Prograxn, the Act and applicable federal law; (iv) up to an aggregate of $47,342,98125 of the foliowing portions of the State volume cap may be used in the Program: • $9,780,981.25 of the 1996 entitlement alloca6on for Saint Pau1, carried forwazd for single family purposes; • $21,464,000 of the 1997 enfitlement allocation far Minneapolis; $16,098,000 ofthe 1997 entidement allocation for Saint Paul; q � - S �''3 provided, however, that no provision of this Progau� shall in any way prevent either of Muuieapolis or Saint Paul from using all or a portion of its respective entidement allocation(s) for multifauiily housing or any other authorized purpose; accordingly, the election made by the Cities to issue MCCs in lieu of Bonds may be revoked in whole or in part, at any time during the calendar year in which the election was made as pemritted by Section 25 of the inteinal Revenue Code and Section 1.2414T(c)(3) of the Treasury Regulations. The resulting unused entitlement allocation may be used to issue bonds for single family housing or other authori�d purposes; (v) the Program will meet the needs of low and moderate income families by providing below-mazket rate finuicing far the acquisifion or rehabilitation of single family homes or by providing a tas credit for mortgage interest paid, thereby enabling such persons to qualify for mortgages which would be unauailable at market xates; (vi) the Cities, the Agency, and the Authority and the Joint Boazd will request a waiver by the Mnmesota Housing Finance Agency of the provisions of Section 462C.03, Subd. 5; (vii) no homes which are located in previously unincorporated real properry annexed by the Cities within one yeaz prior to the date of adoption of this Prograui will be finauced under this Program; (viii) prohibitions or limitafions on assumption will be imposed to the extent required by federal law relating to the t� exempt status of bonds or to the continued validity of MCCs issued pursuant to the Program; provided that the Cities, the Agency, the Authority or Joint Boazd may impose more stringent limitarions at their discretion; (ix) the estnnated amount of rehabIlitation loans to be made or purchased in the Program is 25% of the aggregate principal and certified indebtedness, respectively, of all Bonds and MCCs issued; (x) the estnnated aggregate principal amount of the Bonds, or estimated "non-issued bond amount" (as such term is used in Section 25(d)(2)(B) of the Code) of MCCs issued in lieu of the Bonds, $47,342,98125; (�) the Bonds, if issued, may be issued in one or more series timed for sale consistent with the needs of the Cities in 1997; this amount inciudes the funding of appropriate reserves and payment of costs of issuance; (�i) refinancing of existing indebtedness will be pernutted only where the mortgage loan also finaiices nonsubstantial "rehabilitation" as that term is defined under Mimlesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143 of the Code; qr� .. S t� (�ciri) to the extent required by the Act, during the fust ten (10) months of the origination period, loans finauced by the Bonds (but not mortgage loans assisted by MCCs) will be made fot new honsing only if one of the following conditions is met: (1) the new housing is located in a redevelopment azea and is replacing a structivally substaudard shucture or structures; (2) the new housing is located on a parcel purchased by the respective City or conveyed to such City under Mnuiesota Statutes, Section 282.01, subd. 1; or (3) the new housing is part of a housing affordability initiative, other than those fmanced with the proceeds from the sale of bonds, in which federal, state or local assistance is used to substanfially nnprove the terms of the financing or to substantially write down the purchase price of the new housing; and (xiv) the following additional provisions shall apply only to issuance of MCCs pursuant to this Program: (1) the "certificate credit rate" (as used in Section 25 of the Code) will be 20%; (2) a copy of the form which will be used to elect the nonissued bond amount is attached hereto as E�ibit A; and (3) the Issuers wiil ensure compliance with the requirements of Section 25 of the Code by use of an MCC procedural manual for the Program and by use of the program adnunistrator referenced in item (iii) above. q'1- S�3 EXI IIBIT A TO JOINT BOAIZD PROGRAM MORTGAGE CREDIT CERTIF'ICATE ELECTION (Pursuant to Temp. Reg. § 1.25�"I) (i) Issuer name: [Name] [Address] TII�I: �Number] (ri) Issuer's Applicable limit, per § 146 of the Intemal Revenue Code of 1986: [ALLOCATION FOR 1997: $ � [CARRYFORWARD ALLOCATION FOR 1995: (iri) The aggregate amount of qualified mortgage bonds issued in 1997: [Amount] (iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers during the calendar year: [Amount] (v) The date and amount of any previous elections under 1.25-4T(c) for 1995: [Date and amount] (vi) The amount of qualified mortgage bonds that the issuer elects not to issue: [Amount] State Certification attached. Dated: , 1997 CITY OF [CITY] By Mayor �L Referred To Ordinance # Green Sheet # �� ! l � �� y = � �'^-.� 3 , s ��.� 7 e `d , . ., Presented By 2 3 4 5 6 7 ORDINANCE PAUL, MIPINESOTA � Council File # � �� Committee: Date GIVING APPROVAL TO A SINGLE FAMILY HOUSING PROGRAM TO BE FINANCED BY THE ISSUANCE OF SINGLE FAMILY MORTGAGE REVENUE BONDS AND MORTGAGE CREDIT CERTIFICATES 8 WIIEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C 9 (the "Housing AcY'), the City of Saint Paul, Minnesota (the "City") is authorized to adopt a housing plan and 10 carry out programs for the financing of single family housing for persons of low and moderate income; and 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 WHEREAS, the City Council (the °City Council") of the City has prepazed the Housing Plan for Local Housing for the City, as amended, which pian was adopted pursuant to the Housing Act; and WHEREAS, the Minneapolis/Saint Paul Housing Finance Boazd (the "Board"), a joint powers boazd organized under a Joint Powers Agreement (the "Joint Powers Agreement") by and between the Minneapolis Community Development Agency (the "Agency") and 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 in 1997 (the "Program") to be financed by the issuance of one or more series of revenue obligations and/or mortgage credit certificates ("MCCs") pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters 462A, 462C and 474A and Section 471.59 (collectively, the "Act"); and WHEREAS, pursuant to the Act, the Board 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 construction and rehabilitation, and to facilitate the purchase and sale, of singie family housing for eligible persons or families under the Act; and WHEREAS, 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 are 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 35 publication of notice in a newspaper of general circulation in the City and Minneapolis at least fifteen days in 36 advance of the hearing; and 37 38 WHEREAS, the City Council on May 14, 1997 conducted a public hearing on the Program, a copy of 39 which is attached hereto as E�ibit A, after publication of norice as required by the Act; and 9� -sr� 40 41 42 43 44 45 46 47 WIIEREAS, the Program was submitted to the Metropolitan Council at or before the time of publication of notice of the public hearing on such Program, and the Metropolitan Council was afforded an opportunity to present coxnxnents at the public hearing, all as required by the Act; and WIIEREAS, the Program provides for the issuance of single family mortgage revenue bonds or obligations in one or more series pursuant to the Act (the "Bonds") to make or purchase or cause to be 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, prunarily by low and moderate income 48 persons and families, of single family housing located within the geographic boundaries of the City ar 49 Mimieapolis; and 50 51 WHEREAS, the aggregate principal amount of Bonds, or the total "non-issued bond amount" of 52 MCCs issued in lieu of the Bonds under the Program, will not exceed $47,342,981.25; and 53 54 WIIEREAS, the City's 1996 entitlement allocation carried forward for single family purposes, the 55 City's entire 1997 entitlement allocation and Minneapolis' entire 1997 entitlement allocation may be used for 56 the issuance of Bonds or MCCs; and 57 58 59 60 61 62 63 64 65 66 67 WHEREAS, 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 WHEREAS, it appears that the Program and the issuance of Bonds and/or MCCs by the Boazd or the Authority are in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT PAUL AS FOLLOWS: 1. The Program is hereby approved, subject to final agreement by the Board and the purchasers 68 of the Bonds, if any, and by the Board as issuer of the MCCs, as to the exact terms of the Program and the 69 fmancing therefore and the MCCs. The officers of the City and the Boazd sha11 do all things and take all 70 actions as may be necessary or appropriate to cany out the Program in accordance with the Act and any other 71 applicable laws and regulations. 72 2. The issuance of the Bonds and/or MCCs pursuant to the Program is hereby approved; provided 73 that the aggregate principal amount of Bonds, or the total "non-issued bond amount" of MCCs issued in lieu 74 of Bonds, shall not exceed $47,342,981.25. 75 The Bonds may be issued in one or more series at the rime or times and pursuant to terms 76 determined by the Board, and be structured so as to take advantage of whatever means aze available and are 77 permitted by law to enhance the security for, or marketability of, the Bonds, provided that any such financing q�-sr� 78 structure must be approved by the Boazd. The MCCs may be issued at the time or times and pursuant to 79 terms determined by the Boazd. All such deterniivations by the Board must comply with the applicable 80 provisions of the Act and the Internal Revenue Code of 1986, as amended, and regulations promulgated 81 thereunder. 82 4. The Boazd is authorized to take all actions which may be necessary or desirable in connection 83 with the issuance of the Bonds and the MCCs, acting on behalf of the City, and no further approval or consent 84 of the City sha11 be required prior to the issuance of the Bonds or the MCCs by the Boazd, or prior to the 85 taking of any action by the Boazd to undertake and implement the Program. 86 5. Nothing in this Resolution or the documents prepared putsuant hereto shall authorize the 87 expenditure of any municipal funds on the Program other than as specified and authorized by separate actions 88 of the City and other than the revenues derived from the Program ar otherwise granted to the City for this 89 purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property 90 or funds of the City except the revenues and proceeds pledged to the payment thereof, nor sha11 the City be 91 subject to any liability thereon. The holders of the Bonds shall never have the right to compel any exercise of 92 the tasing power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to 93 enforce payment against any property of the City. The Bonds sha11 recite in substance that the Bonds, 94 including the interest thereon, are payable solely from the revenues and proceeds pledged to the payment 95 thereo£ The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory 96 limitation of indebtedness. at'� -5�`3 97 6. Any one or more series of the Bonds or the MCCs may be issued by the Authority in lieu of 98 issuance by the Boazd, at the discretion of the Authority. �rtAi �eurn Adopted by Council: Date Certified by Council BY � 1 �_ � � / Approved by Mayor: Date � ��L`l By: � , JUN -71991 Requested by Department of: �.. �' _ ' � � �i�� i //i�� ' �� !!+�- � � • .a//1 �. I�/,�" / i - - - Approved by Mayor for Submission to Council By: �_i ��.' 4� .. S�''3 DEPAqTMENT/OFFIGE/COUNCIL DATEINITIATED N_�` 3 0 397 PED 4/29/97 GREEN S __ _ . -- -- - CONTACTPERSON&PHONE �NITI � INRIAVDATE OEPAFTMENT DIpE CITY COUNCfL Katy Lindblad 266-6614 nuice, CIT/ATfOFiNEY CITYCLERK MUST BE ON CAUNCIL A6ENOA BV (DATE) . NUMBEP FOP � BUDGET DIRECTOR � FIN. & MGT. SEfiVICES DIR. POUTING SI14�97 OflDEP �MpYOR(ORASSI5TANn � TOTAL # OF SIGNATURE PAGES 7 (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTED: Approval of a single family housing program to be financed by the issuance of single family mortgage revenue bonds and mortgage credit certificates. RECAMMENDA710N5: Approve (A) or Fteject (R) pERSONAL SEflVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: _ PIANNING CAMMISSION _ CIVIL SERVICE COMMISSION �� Has this person/firm ever worked under a coMrac[ for this department? - _ CIB CAMMfREE _ VES NO _ STAFF 2. Has this person/firm ever been a city employee? — YES NO _ OIS7FICTCOURT _ 3. DOes thiS personttirm possess a Swll not nOrmall y possessed by any curtent ciry employee? SUPPoRTS WHICH COUNCIL O&IECTIVE? YES NO Explain all yes answers on separete sheet and aNaeh to green sheet INITIATING PROBLEM. ISSUE, OPPORTUNITV (Who, What, When, Where, Why�: The cities of Saint Paul and Minneapolis jointly fund their first time home buyer programs through the Soint Housing Finance Board. Each year the cities adopt a Housing Program and authorize the Soint Board to issue mortgage revenue bonds and/or mortgage credit certificate with their entitlement allocations to finance these single family programs. Specific bond issues will come back to the City Council and HRA for approval as they are planned. A�VANTAGES IP APPROVED: Saint Paul and Minneapolis able to continue their joint first time home buyer programs. DISADVANTAGES IF APPROVEO pa s � ��'+�«�� Wa�,9a��! �'?�gs�(� E.'+�x�.�eCa�.3' ��'��'°a:a�YT j Yp rr��°� � � 1��7 �'��.� � � p � 1997 - ��R��Y DISADVANTAGES IF NOT APPAOVED: Saint Paul and Minneapolis unable to continue first time home buyer programs. , 707AL AMOUNT OFTRANSAC710N $ NA COS7/REVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIWG SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION: (EXPLAIN) a1'i -5�3 E�ibit A NIINNEAPOLIS/SAINT PAUL 1997 SINGLE FAMII.Y JOIN'I` BOARD PROGRAM The City of Minneapolis, Mumesota ("Mnuieapolis") and the Muuieapolis Community Development Agency (the "Agency"), and the City of Saint Paul, Minnesota ("Saint Paul") and the Housing and Redevelopment Authority of the City of Saint Paul, Miunesota (the "Authority"), acting individually or joindy through the Minneapolis/Saint Paul Housing Finance Boazd (the "Joint Board") (collectively, the "Issuers") propose to issue mortgage credit certificates ("MCCs") under Section 25 of the Inten�al Revenue Code of 1986, as amended (togeffier with regulations promulgated thereunder, the "Code"), or revenue bonds under Section 143 of the Code in one or more series, in either case to fuiauce the single family housing program described herein (the "Program") pursuant to authority conferred by Minnesota Statutes, Cl�apters 462C, 462A and 469, all as amended, (and any other general or special law authority for the issuance of obligations to finance a single family housing program or development) (coliectively, the "Act"). In creating this Program, the Issuers have found and deteimined that the preservation of the quality of life in Mnmeapolis and Saint Paul (the "Cities") is dependent upon the maintenance and provision of adequate, decent, safe and sanitary housing stock; that accomplishing the provision of such housing stock is a public putpose and will benefit the residents of the Cities; that a need exists withixi the Cities to provide in a timely fashion additional affordable housing to be sold to persons of low and moderate income residing and expected to reside in the Cities; and that a need exists for mortgage credit to be made auailable for both existing and new single family housing and for rehabilitation of eacisting single family housing and for home improvements. Pursuant to the Act, the Cities intend to issue or to authorize the 3oint Board (or the Agency and/or Authority in lieu of the Joint Boazd) to issue one oz more series of single family mortgage revenue bonds (the "Bonds") to make or purchase mortgage loans (or securiries representing pools of such loans) to finance the acquisition, covstrucfion, rehabilitation or improvement of single fanuly housing m the Cities (or either of them). In addition to or in lieu of issuing the Bonds, the Cities intend to issue or authorize the Joint Board (or the Agency and/or Authority in lieu of the Joint Board) to issue MCCs to mortgagors who obtain mortgage loans to finance the purchase, covst�•uction, rehabilitation or improvement of single family housing in the Cities (ar either of them). The aggregate principal amount of Bonds, ar the "non-issued bond amount" of MCCs issued in lieu of the Bonds, will not exceed $47,342,981.25. Both the mortgage loans financed through the Bonds, and the mortgage loans to which the MCCs relate, will be subject to the following terms: ourchase price - the maximum purchase price for fuiauced homes shall not exceed the lesser of (a) 90% (110% in "targeted azeas") of the applicable "a�erage area purchase price" deterniined by the United States Department of the Treasury or by the Issuers on the basis of more complete information, or (b) 3 times the applicable income limit far the Progratn unposed �� -st3 by Minnesota law (except that in certaiu azeas the purctiase price shall not exceed 4 times the applicable income limit to the extent consistent with applicabie federal law); income limits - the m�iui� income of the mortgagors shall be the lower of (a) the income reshictions imposed by federal tax law or (b) the income restrictions imposed by Mimiesota Statutes, Section 462C.03, Subd. 2, including the restricfion of Subd. 7 that for the first six months of the Prograzu, 50% of the money available to make mortgage loans or the "non-issued bond amount" of MCCs must be reserved for persons and fawilies with adjusted incomes not greater than 70% of the general Program income limits. In connection with this Pxogram: (i) (a) in wnnection with any mortgage loans finuiced with the proceeds of mortgage revenue bonds, any financial institufions described in Secfion 462C.03, Subd. 4, and other mortgage lenders with offices located in the Cities and which are FHA/VA approved sellers of mortgage loans as well as other financial institutions and mortgage lenders which are FHA/VA, or FNMA/FHLMC approved sellers of mortgage loans, will be eligible for consideration for origination of such loans; the Cities will not limit participation in the Prograui to a single lender unless other lenders aze not willing to participate for the consideration offered; the Agency and the Authority shall be eligible for consideration for origination of loans; (b) in connection with issuance of MCCs by the Issuers, MCCs will not be limited to loans originated by particulaz lenders but will be auailable with respect to the origination of qualifying mortgage loans by any participating lender; (ii) loans will not be made available or set aside for the exclusive use of developers or builders except, in the case of mortgage loans financed with the proceeds of mortgage revenue bonds, for new housing described in (xiri) below; (iii) the Cities eapect to act as or to cornract with a program adminisirator or servicer to provide services to ensure that the Program will be consistent with the housing plans of each of the Cities, this Prograxn, the Act and applicable federal law; (iv) up to an aggregate of $47,342,98125 of the foliowing portions of the State volume cap may be used in the Program: • $9,780,981.25 of the 1996 entitlement alloca6on for Saint Pau1, carried forwazd for single family purposes; • $21,464,000 of the 1997 enfitlement allocation far Minneapolis; $16,098,000 ofthe 1997 entidement allocation for Saint Paul; q � - S �''3 provided, however, that no provision of this Progau� shall in any way prevent either of Muuieapolis or Saint Paul from using all or a portion of its respective entidement allocation(s) for multifauiily housing or any other authorized purpose; accordingly, the election made by the Cities to issue MCCs in lieu of Bonds may be revoked in whole or in part, at any time during the calendar year in which the election was made as pemritted by Section 25 of the inteinal Revenue Code and Section 1.2414T(c)(3) of the Treasury Regulations. The resulting unused entitlement allocation may be used to issue bonds for single family housing or other authori�d purposes; (v) the Program will meet the needs of low and moderate income families by providing below-mazket rate finuicing far the acquisifion or rehabilitation of single family homes or by providing a tas credit for mortgage interest paid, thereby enabling such persons to qualify for mortgages which would be unauailable at market xates; (vi) the Cities, the Agency, and the Authority and the Joint Boazd will request a waiver by the Mnmesota Housing Finance Agency of the provisions of Section 462C.03, Subd. 5; (vii) no homes which are located in previously unincorporated real properry annexed by the Cities within one yeaz prior to the date of adoption of this Prograui will be finauced under this Program; (viii) prohibitions or limitafions on assumption will be imposed to the extent required by federal law relating to the t� exempt status of bonds or to the continued validity of MCCs issued pursuant to the Program; provided that the Cities, the Agency, the Authority or Joint Boazd may impose more stringent limitarions at their discretion; (ix) the estnnated amount of rehabIlitation loans to be made or purchased in the Program is 25% of the aggregate principal and certified indebtedness, respectively, of all Bonds and MCCs issued; (x) the estnnated aggregate principal amount of the Bonds, or estimated "non-issued bond amount" (as such term is used in Section 25(d)(2)(B) of the Code) of MCCs issued in lieu of the Bonds, $47,342,98125; (�) the Bonds, if issued, may be issued in one or more series timed for sale consistent with the needs of the Cities in 1997; this amount inciudes the funding of appropriate reserves and payment of costs of issuance; (�i) refinancing of existing indebtedness will be pernutted only where the mortgage loan also finaiices nonsubstantial "rehabilitation" as that term is defined under Mimlesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section 143 of the Code; qr� .. S t� (�ciri) to the extent required by the Act, during the fust ten (10) months of the origination period, loans finauced by the Bonds (but not mortgage loans assisted by MCCs) will be made fot new honsing only if one of the following conditions is met: (1) the new housing is located in a redevelopment azea and is replacing a structivally substaudard shucture or structures; (2) the new housing is located on a parcel purchased by the respective City or conveyed to such City under Mnuiesota Statutes, Section 282.01, subd. 1; or (3) the new housing is part of a housing affordability initiative, other than those fmanced with the proceeds from the sale of bonds, in which federal, state or local assistance is used to substanfially nnprove the terms of the financing or to substantially write down the purchase price of the new housing; and (xiv) the following additional provisions shall apply only to issuance of MCCs pursuant to this Program: (1) the "certificate credit rate" (as used in Section 25 of the Code) will be 20%; (2) a copy of the form which will be used to elect the nonissued bond amount is attached hereto as E�ibit A; and (3) the Issuers wiil ensure compliance with the requirements of Section 25 of the Code by use of an MCC procedural manual for the Program and by use of the program adnunistrator referenced in item (iii) above. q'1- S�3 EXI IIBIT A TO JOINT BOAIZD PROGRAM MORTGAGE CREDIT CERTIF'ICATE ELECTION (Pursuant to Temp. Reg. § 1.25�"I) (i) Issuer name: [Name] [Address] TII�I: �Number] (ri) Issuer's Applicable limit, per § 146 of the Intemal Revenue Code of 1986: [ALLOCATION FOR 1997: $ � [CARRYFORWARD ALLOCATION FOR 1995: (iri) The aggregate amount of qualified mortgage bonds issued in 1997: [Amount] (iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers during the calendar year: [Amount] (v) The date and amount of any previous elections under 1.25-4T(c) for 1995: [Date and amount] (vi) The amount of qualified mortgage bonds that the issuer elects not to issue: [Amount] State Certification attached. Dated: , 1997 CITY OF [CITY] By Mayor