94-1160 ORIGINAL Council File # 9y ` Green Sheet # 29014
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
P At -
Presented By Att. Are -
Referred To Committee: Date
GIVING FINAL APPROVAL TO THE ISSUANCE BY THE
MINNEAPOLIS /SAINT PAUL HOUSING FINANCE BOARD OF
SINGLE FAMILY MORTGAGE REVENUE BONDS AND
MORTGAGE CREDIT CERTIFICATES TO FINANCE THE
CITY'S 1994 SINGLE FAMILY HOUSING PROGRAM
WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes,
Chapter 462C (the "Housing Act "), the City of Saint Paul, Minnesota (the "City ") is authorized
to adopt a housing plan and carry out programs for the financing of single family housing for
persons of low and moderate income; and
WHEREAS, the City Council (the "City Council ") of the City has prepared the Housing
Plan for Local Housing for the City of Saint Paul, Minnesota, as amended, which plan was
adopted pursuant to the Housing Act; and
WHEREAS, the Minneapolis /Saint Paul Housing Finance Board (the "Board"), a joint
powers board organized under a Joint P ewers Agreement (the "Joint Powers Agreement ") by and
between the Minneapolis Community Development 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, will undertake a single fan ily housing program in 1994 and 1995 and issue one or
more series of revenue obligations and /or mortgage credit certificates ( "MCCs ") as described
herein, pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters 462A, 462C and
474A and Section 471.59 (collectively, the "Act ").
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 1 :nding institutions and to issue MCCs in order to finance
the construction and rehabilitation of, and to facilitate the purchase and sale of single family
housing for eligible persons or families under the Act; and
WHEREAS, the program, will provide below market interest rate mortgage loan financing
or income tax credits primarily to persons of low or moderate income purchasing single family
homes to be used as their principal places of residence and which are located within the
geographic limits of the Cities of Sain' Paul and Minneapolis; and
96182.2
ORtGNAL
WHEREAS, the Act requires as option of the program after a public hearing held thereon
following publication of notice in a ne spaper of general circulation in the City and Minneapolis
at least fifteen days in advance of the earing; and
WHEREAS, the City Council • August 10 , 1994 conducted a public hearing on the
single family housing program, a cop of which program is attached hereto as Exhibit A (the
"Program "), after publication of notice as required by the Act; and
WHEREAS, the Program was s bmitted to the Metropolitan Council at or before the time
of publication of notice of the public hi ing on such Program, and the Metropolitan Council has
been afforded an opportunity to prese t comments at the public hearing, all as required by the
Act; and
WHEREAS, the Program prov des for the issuance of single family mortgage revenue
bonds or obligations in one or more ser es pursuant to the Act (the "Bonds") to make or purchase
or cause to be purchased mortgage lo. s, or to purchase securities the proceeds of which would
be used to purchase mortgage loans, and the issuance of MCCs to finance the acquisition,
primarily by low and moderate incom • persons and families, of single family housing located
within the geographic boundaries of t City or Minneapolis; and
WHEREAS, the initial aggregat principal amount of Bonds, or the total "non- issued bond
amount" of MCCs issued in lieu of the Bonds, will not exceed$64,118,000
WHEREAS, the City and Minn-apolis each have available 1993 carryforward allocation
and 1994 entitlement allocation which may be used for the issuance of Bonds or MCCs; and
WHEREAS, it is proposed that he Program be approved and the Board 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
Board or the Authority are in the best nterests of the City.
NOW, THEREFORE, BE IT ' I SOLVED BY THE CITY COUNCIL OF THE CITY OF
SAINT PAUL AS FOLLOWS:
1. The Program is hereby .;.proved, subject to final agreement by the Board and the
purchasers of the Bonds, if any, and fi :1 agreement as to the MCCs, as to the exact terms of the
Program and the financing therefore an. the MCCs. The officers of the City and the Board shall
do all things and take all actions as ma be necessary or appropriate to carry out the Program in
accordance with the Act and any other applicable laws and regulations.
96182.2 2
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ORIGINAL
2. The issuance by the Bo. d of the Bonds, or of MCCs in lieu thereof with respect
to the Program is hereby finally appro ed; provided that the initial aggregate principal amount
of Bonds, or the total "non- issued bo d amount" of MCCs issued in lieu of Bonds, shall not
exceed $64,118,000. There is hereb allocated to the Bonds and/or MCCs $13,757,000 of
entitlement authority carried forward fro m the City's 1993 entitlement allocation under Minnesota
Statutes, Chapter 474A, and there is hereby further allocated to the Bonds and /or MCCs
$15,643,000 of the City's entitlement .11ocation for 1994.
3. The Bonds may be issue . in one or more series at the time or times and pursuant
to terms determined by the Board, and se structured so as to take advantage of whatever means
are available and are permitted by law t I enhance the security for, or marketability of, the Bonds,
provided that any such financing struct e must be approved by the Board. The MCCs may be
issued at the time or times and pui uant to terms determined by the Board. All such
determinations by the Board must co ply with the applicable provisions of the Act and the
Internal Revenue Code.
4. The Board is authorized to take all actions which may be necessary or desirable
in connection with the issuance of the {C onds and the MCCs, acting on behalf of the City, and
no further approval or consent of the I ity shall be required prior to the issuance of the Bonds
or the MCCs by the Board, or prior to the taking of any action by the Board to undertake and
implement the Program.
5. Nothing in this Resolu ion or the documents prepared pursuant hereto shall
authorize the expenditure of any muni ipal funds on the Program other than as specified and
authorized by separate actions of the Ci y and other than the revenues derived from the Program
or otherwise granted to the City for thi. purpose. The Bonds shall not constitute a charge, lien
96182.2 3
, , ,
, 1
ORIGINAL lit-i-iiir (-
or encumbrance, legal or equitable, upon any property or funds of the City except the revenues
and proceeds pledged to the payment thereof, nor shall the City be subject to any liability
thereon. The holders of the Bonds shall never have the right to compel any exercise of the taxing
power of the City to pay the outstanding principal on the Bonds or the interest thereon, or to
enforce payment against any property of the City. The Bonds shall recite in substance that the
Bonds, including the interest thereon, ale payable solely from the revenues and proceeds pledged
to the payment thereof. The Bonds shad not constitute a debt of the City within the meaning of
any constitutional or statutory limitation of indebtedness.
6. Any one or more series c f the Bonds or the MCCs may be issued by the Authority
in lieu of issuance by the Board, at the discretion of the Authority.
f Yea I t Nays Absent
Guerin L Requested by Department of:
Harris Planning and Economic Development
Megard
Grimm
Rettman
11
By ' ,; illirrANIF . _
hune
Form Approved by City Atto ey
Adopted by Council: Date . � tb \ 9 t
` B : i _/ 41 11k
Adoption Certified by Council Secretary VOW
B
\- A r ,_
f, Approved b ayor for Submission to
Council e
Approved Da 7 o : 4 r ,or
/ f ' j B / i ,
#5?
DEPARTMENT/OFFICE/COUNCIL DATE /MATED N° 29 O 1
Planning & 'Economic Development 7/12/94 CEO SHED
CONTACT PERSON & PHONE INFTLAIJDATE
E memmuENT D IRECTOR CRY CO UNCIL IMTI e
Katy Lindblad 6 -6614 *MEP; CITYATTORNEV CITY CLERK
MUST BE ON COUNCA. AGENDA BY (DATE) R' FOR ❑ BUDGET DBE 0 RN. & MGT. SERVICES on
C743 MAYOR (OR ASSISTANT) Bo�rr
( }R l.l� /4Lt
TOTAL # OF SIGNATURE PAGES 1 (CLIP tLL LOCATIONS FOR SIGNA TURE)
ACTION REQUESTED:
Public hearing and final approval to tie issuance by the Minneapolis /Saint Paul Housing
'Finance Board of_Single Family Mortgage Revenue Bonds and Mortgage Credit Certificates to
Finance the C.ty's 1994'Single Family lousing Program.
RECOMMENDATIONS: Approve (Ater Repro (ri) • POSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS:
— PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1. 1ias this person/firm ever worked under a contrail for fide department?
_ Cie co n-r E YES NO
2. Has this person/firm ever been a city employee?
-STAFF YES NO •
— DISTRICT COURT 3. Does this personffirm possess a skill not norntaay possessed by any current city employes?
SUPPORTS WHICH COUNCIL OBJECTIVE? YES NO
Ex Ialn all yes answers: on sept a te sheet and Attach to green sheet
INITIATING PROBLEM, ISSUE. OPPORTUNITY (Who, What. When, Where, Why):
Saint Paul's Take Credit! Program is il. high demand and the Phase 9 First -,Time Homebuyer
Program is winding down.
ADVANTAGES IF APPROVED:
Saint Paul can offer incentives to fir>t -time homebuyers to purchase homes in Saint Paul.
RECEIVED
JUL 19 1994
DISADVANTAGES IF APPROVED:
CITY ATTO RN EY
JUL 2 2 1994 1
DISADVANTAGES IF NOT APPROVED:
Saint Paul unable to provide incentives to first -trine homebuyers to purchase homes in
the City.
TOTAL AMOUNT OF TRANSACTION $ — 0 COST/REVENUE BUDGETED (CIRCLE ONE) YES NO
FUNDING SOURCE NIA ACTIVITY NUMBER N!
FINANCIAL INFORMATION: (EXPLAIN)
EXHIBIT A /6/4)
MINN E APOLIS /SAINT PAUL
1994 SINGLE FA ILY JOINT BOARD PROGRAM
The City of Minneapolis, Mi esota ( "Minneapolis ") and the Minneapolis Community
Development Agency (the "MCDA "), . d the City of Saint Paul, Minnesota' ( "Saint Paul ") and
the Housing and Redevelopment Auth of the City of Saint Paul, Minnesota (the "HRA "),
acting individually or jointly through e Minneapolis /Saint Paul Housing Finance Board (the
"Joint Board ") (collectively, the "Issuer• ") propose to issue mortgage credit certificates ( "MCCs ")
under Section 25 of the Internal Reve ue Code of 1986, as amended (the "Code "), or revenue
bonds under Section 143 of the Code i one or more series to finance the single family housing
program described herein (the "Progra ") pursuant to authority conferred by Minnesota Statutes,
Chapters 462C, 462A and 469, all as . ended, (and any other general or special law authority
for the issuance of obligations to fin. ce a single family housing program or development)
(collectively, the "Act ").
In creating this Program, the Is uers have found and determined that the preservation of
the quality of life in Minneapolis and S. int Paul (the "Cities ") is dependent upon the maintenance
and provision of adequate, decent, s.fe and sanitary housing stock; that accomplishing the
provision of such housing stock is a p blic purpose and will benefit the residents of the Cities;
that a need exists within the Cities to i rovide in a timely fashion additional affordable housing
to be sold to persons of low and mode ate income residing and expected to reside in the Cities;
and that a need exists for mortgage cre • it to be made available for both existing and new single
family housing and for rehabilitation of existing single family housing and for home
improvements.
Pursuant to the Act, the Cities i I tend to issue or to authorize the Joint Board (or the HRA
and /or MCDA in lieu of the Joint Bo. l •) to issue one or more series of single family mortgage
revenue bonds (the "Bonds ") to make o purchase mortgage loans (or securities representing pools
of such loans) to finance the acquisiti i n, construction, rehabilitation or improvement of single
family housing in the Cities (or either I f them). In addition to or in lieu of issuing the Bonds,
the Cities intend to issue or authorize t e Joint Board (or the HRA and /or MCDA in lieu of the
Joint Board) to issue mortgage credi certificates (the "MCCs ") to mortgagors who obtain
mortgage loans to finance the purcha• - , construction, rehabilitation or improvement of single
family housing in the Cities (or either o them). The aggregate initial principal amount of Bonds,
or the "non- issued bond amount" of MCCs issued in lieu of the Bonds, will not exceed
$64,118,000. Both the mortgage loan• financed through the Bonds, and the mortgage loans to
which the MCCs relate, will be subjec to the following terms:
purchase price - the ma mum purchase price for financed homes shall not exceed
the lesser of (a) 90% (110% in targeted areas ") of the applicable "average area purchase
price" determined by the Unite States Department of the Treasury or by the Issuers on
the basis of more complete info mation, or (b) 3 times the applicable income limit for the
96757.2
Program imposed by Minnesota law (except that in certain areas the purchase price shall
not exceed the maximum of 4 times the applicable income limit to the extent consistent
with applicable federal law);
income limits - the maximum income of the mortgagors shall be the lower of (a)
the income restrictions imposed by federal tax law or (b) the income restrictions imposed
by Minnesota Statutes, Section 462C.03, Subd. 2, including the restriction of Subd. 7 that
for the first six months of the program 50% of the money available to make mortgage
loans must be reserved for persons and families with adjusted incomes not greater than
100% of the general Minnesota income limits.
In connection with this Program:
(i) (a) in connection with any mortgage loans financed with the proceeds
of mortgage revenue bonds, any financial institutions described in Section 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 program to a single lender unless other lenders are not willing to
participate for the consideration offered; the MCDA and the HRA 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 particular lenders but will be available 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 (xiii) below;
(iii) the Cities expect to act as or to contract with a program administrator
or servicer to provide services to ensure that the Program will be consistent with the
Housing Plans of each of the Cities, this Program, the Act and applicable federal law;
(iv) up to an aggregate of $ 64 ,118 , 00(pf the following portions of the State
volume cap may be used in the Program:
• $16,896,000 of the 1993 carryforward allocation for Minneapolis;
2
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q` /_ 7/60
• $17 , 822, 000k)f the 1994 entitlement allocation for Minneapolis (or
such greater amount as is provided by such entitlement allocation);
• $13,757,000 cf the 1993 carryforward allocation for Saint Paul;
• $15,643,000* of the 1994 entitlement allocation for Saint Paul (or such
greater amour.t as is provided by such entitlement allocation);
(v) the Program will meet the needs of low and moderate income families
by providing below - market rate financing for the acquisition or rehabilitation of single
family homes, thereby enabling such persons to qualify for mortgages which would be
unavailable at market rates;
(vi) the Cities, the MCDA, and the HRA and the Joint Board will request
a waiver by the Minnesota Housing Finance Agency of the provisions of Section 462C.03,
Subd. 5;
(vii) no homes wh: ch are located in previously unincorporated real property
annexed by the Cities within one year prior to the date of adoption of this Program will
be financed under this Program.;
(viii) prohibitions cr limitations on assumption will be imposed to the extent
required by federal law relating to the tax exempt status of bonds or to the continued
validity of MCCs issued pursuant to the Program; provided that the Cities, MCDA, HRA
or Joint Board may impose mcre stringent limitations at their discretion;
(ix) the estimated 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 estimated 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, is approximately $64,118,000.
(xi) the Bonds, if issued, may be issued in one or more series timed for sale
consistent with the needs of the Cities in 1994 or 1995; this amount includes the funding
of appropriate reserves and payment of costs of issuance;
(xii) refinancing cf existing indebtedness will be permitted only where the
mortgage loan also finances "nonsubstantial rehabilitation" as that term is defined under
* Notwithstanding this provision, or any other reference to the principal amount of bonds
in this program, either of the Cities and the MCDA or the HRA as applicable, may by
resolution reduce the amount of their 1994 entitlement allocation to be used pursuant to
this program.
96757.2 3
Minnesota Statutes, Section 462C.01 and Section 462C.03, Subd. 11 and under Section
143 of the Code;
(xiii) to the extent required by the Act, during the first ten (10) months of the
origination period loans financed by the Bonds (but not mortgage loans assisted by MCCs)
will be made for new housing only if one of the following conditions is met:
(1) the new housing is located in a redevelopment area and is
replacing a structurally substandard structure or structures;
(2) the new housing is located on a parcel purchased by the respective
City or conveyed to such City under Minnesota Statutes, Section 282.01, subd. 1;
or
(3) the new housing is part of a housing affordability initiative, other
than those financed with the proceeds from the sale of bonds, in which federal,
state or local assistance i s used to substantially improve the terms of the financing
or to substantially write down the purchase price of the new housing.
(xiv) the following additional provisions shall apply only to issuance of MCCs
pursuant to this Program:
(1) the "credit certificate rate" will be 20 %;
(2) a copy of the form which will be used to elect the nonissued bond
amount is attached hereto as Exhibit A; and
(3) the Issuers will 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 administrator referenced in item (iii) above.
96757.2 4
EXHIBIT A
MORTGAGE CREDIT CERTIFICATE ELECTION
(Pursuant to Temp. Reg. § 1.25 -4T)
(i) Issuer name:
[Name]
[Address]
TIN:
[Number]
(ii) Issuer's Applicable limit, per § 146 of the Internal Revenue Code of 1986:
CARRYFORWARD ALLOCATION FROM 1993
ALLOCATION FOR 1994
(iii) The aggregate amount of qualified mortgage bonds issued in 1994:
$0
(iv) The amount of the Issuer's applicable limit that it has surrendered to other issuers
during the calendar year:
$0
(v) The date and amount of any previous elections under 1.25 -4T(c) for 1994:
NONE
(vi) The amount of qualified mortgage bonds that the issuer elects not to issue:
State Certification attached.
Dated: , 1994
CITY OF [CITY]
By
Mayor
96757.2 A -1
S ^ I N I Interdepartmental Memorandum
14ll I
ti * CITY OF SAINT PAUL
COLInCil Research Center
AAAA
JUL 18 1994
TO: Nancy Anderson
FROM: Katy Lindblad
DATE: July 14, 1994
RE: Public Hearing & Notice
As promised, I am attaching a form of Notice of Public Hearing on Single Family
Housing Mortgage Program under Minnesota Statutes, Chapter 462C. Please note
that this public hearing is to be held in conjunction with consideration of a
resolution (see attached Green Sheet No. 29014). This notice is to be published in
a newspaper of general circulation at least fifteen days in advance of the hearing.
By my calculations, this means a publication date no later than July 27, 1994.
Please do not hesitate to call me at 6 -6614 if you have any questions. I would
appreciate a copy of the affidavit of publication on this matter. Your assistance is
much appreciated.
KSL /jem
enc.
y -/ /6 2
NOTICE OF PUBLIC HEARING
ON SINGLE FAMILY HOUSING
MORTGAGE PROGRAM UNDER
MINNESOTA STATUTES,
CHAPTER 462C, AS AMENDED
NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Paul, Minnesota
(the "City ") will meet on August 10, 1994, at 3:30 p.m. in the City Council Chambers in the
Saint Paul City Hall located at 15 West Kellogg Boulevard, Saint Paul, Minnesota for the purpose
of conducting a public hearing on the adoption of a single family housing program (the
"Program ") by the City, the City of Minneapolis, Minnesota ( "Minneapolis "), the Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota (the "Authority ") and the
Minneapolis Community Developmen, Agency (the "Agency "), prepared in compliance with
Minnesota Statutes, Chapter 462C, as amended. The Program provides for the issuance by the
Minneapolis /Saint Paul Housing Finance Board (the "Issuer ") of revenue bonds in one or more
series (the "Bonds") and /or mortgage credit certificates (the "MCCs ") to undertake a program of
making or purchasing mortgage loans or participations in, or mortgage credit certificates in
connection with, mortgage loans made to construct, acquire or rehabilitate single family housing
within the City of Saint Paul and the City of Minneapolis by low or moderate income persons
or families. The Bonds will be issued in an aggregate initial principal amount, or the MCCs will
represent a "non- issued bond amount ", totaling not more than $64,118,00othe Issuer may issue
only Bonds, or only MCCs, or a comtination of both.
The Bonds, if issued, shall be special limited obligations of the Issuer and the Bonds and
interest thereon shall be payable solely from the revenues and proceeds pledged to the payment
thereof, except that the Bonds may be secured by a mortgage or other encumbrance on the
property financed. No holder of any of the Bonds shall ever have the right to compel any
exercise of the taxing power of the City of Saint Paul, the Authority, the City of Minneapolis or
the Agency to pay the Bonds or the interest thereon, nor to enforce payment against any property
of the City of Saint Paul, the City of Minneapolis, the Authority, the Agency or the Issuer except
revenues and proceeds of the Program.
All persons interested may appear and be heard at the time and place set forth above or
may submit written comments in advance of the hearing. Written comments or questions should
be addressed to the City of Saint Paul, Department of Planning and Economic Development, 1200
City Hall Annex, 25 West 4th Streel, St. Paul, Minnesota 55102, Attn: Neighborhoods and
Housing Division.
96183.2
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001 OK s 92222640 002/002
—ST PAUL CITY COUNCIL —
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g am+ nt CIT OF SAINT PAUL
0 E OF THE CITY COUNCIL
FAS.IMILE TRANSMISSION
COVER SHEET
TO: - a -
FROM: I li • • i
1
FAX #: a- a - ,. . tI
RE:
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DATE: 7 a -
Note: Facsimile op rator, please deliver this transmission to the above
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