96-535�
�RI���!�,�
Council File # 9 � -S 3 �
Green Sheet # ���_
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31
Presented By
Referred To
Committee: Date
RESOLUTION
�INT PAUL, yiI
APPROVING A SILIGLS FAMZLY MORTGAGS REVBNIIE BOND PROGRFIM
AND ADTHORZZING TH8 ISS9ANC8 OF (i} TAXA8L8
SINGLB FAMILY MORTGAGS REVENUS SONDS (PFiASH II REFIINDING),
SBRIBS 1996, AND (ii) SINGLB FAMILY MORTGAGB REV&NIIE
RSFIINDING SONDS (FNMA ANB GNMA MORTGAGS-SACRHD SECIIRITIBS
PROGRAM-HOMB OWNERSHIP PROGRAM, PHASS II),
SBRIES 1996A AND 1946B, J02NTLY SY TFiS CITY OF MINNSAPOLI:
AND THE HODSING AND RSIIEVELOPMENT AUTHORITY
OF THE CITY OF SAINT PAUL
47
48
WHEREAS, the Minneapolis Community Development Agency (the MCDA) and the
Aousing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
HRA) have previously issued their Variable Rate Monthly Demand Bonds (Home
Ownership Mortgage Revenue Program) Series 1984 in the aggregate principal
amount of $125,OD0,000, reoffered in 1986 as Home Ownership Mortgage Revenue
Bonds (Family Aousing Program Phase II) in the aggregate principal amount of
$119,�00,000 (the Prior Bonds7 to obtain funds to provide below market
interest rate mortgage loan financing primarily to persons of low or moderate
income purchasing single family homes to be used as their principal places of
residence and which were loaated within the geographic limits of the City of
Minneapolis or the City of Saint Paul; and
WHEREAS, Minnesota Statutes, Chapter 462C (the Housing Act) and Section
477.59, and that certain Joint Powers Agreement, as amended from time to time
ithe JPA), by and between the MCDA, the HRA, the City of Minneapolis
(Minneapolis) and the City of Saint Paul (Saint Paul), authorize Minneapolis
and the HRA (together, the Issuers) to jointly issue single family mortgage
revenue bonds and refunding bonds; and
WHERSAS, there are ourrently outstanding Prior Bonds in the aggregate
principal amounC of approximately $40,665,OD0; and
WHEREAS, t'tie Zssuers propose to issue their Single Family Mortgage Revenue
Refunding Bonds (FNMA and GNMA Mortgage-backed Securities Program-Home
Ownership Program, Phase II), Series 1996A and Series 1996B (the Refunding
Bonds) pursuant to the Housing Act and separate Indentures of Trust dated as
of June 1, 1996 (the Refunding Indentures) by and between the Issuers and the
Trustee named therein (the Trustee) in the aggregate principal amount not to
exceed $40,665,000, and to use Che proceeds thereof exclusively to refund the
Prior Bond5; and
WHEREAS, the Refunding Bonds are to be secured by the proceeds of the Taxable
Bonds (as defined below) and a pledge of certain moneys, mortgage-backed
securities and other assets in accordance with the terms of the Refunding
Indentures, and the principal, premium, if any, and interest on tl'ie Refunding
Honds shall be payable solely from such pledged revenues and assets; and
WHEREAS, on May 22, 1996 the City Council of the City of Saint Paul held a
public hearing regarding the 1996 5ingle Family Mortgage Revenue Bond Program
- Phase II attached hereto as E�:hibit A(the Program), pursuant to which the
Issuers propose to issue their taxable single family mortgage revenue bonds,
for which hearing notice was published as required by the Act;
WHEREAS, the Program was submitted to the Metropolitan Council, and the
Metropolitan Council has been afforded an opportunity to present comments at
the public hearing, a11 as required by the Act; and
- P'ZO�r2 q��S35
WHEREAS, the Issuers also propose to issue their Taxable Single Family
Mortgage Revenue Bonds (Phase II Refunding) Series 1996 (the Taxable Bonds,
. and together with the Refunding Bonds, the Bonds) pursuant to the Housing Act
and an Indenture of Trust dated as of June 1, 1996 (the Taxable Indenture, and
together with the Refunding Indentures, the Indentures}, in an aggregate
principal amount not exceeding $19,OOO,000 to provide funds to be deposited in
the Program F'und under the Refunding indenture and used to make new mortgage
loans upon the Conversion of the Refunding Bonds pursuant to the Refunding
Indenture; and
WHEREPS, the Taxable Bonds shall be secured by certain moztgage loans, moneys
and other assets to be pledged thereto in accordance with �he �erms of the
Tasable Indenture; and
WIiEREAS, the Bonds shall be special limited obligations of the Issuers, and
neither the Issuers, the MCDA, Saint Paul, the State of Minnesota nor any
political subdivision of the State oE Minnesota shall be liable on the Bonds
except from trie respective trust estates pledged Co the payment thereof by the
Indentures, and the Bonds Shall not be a debt of the Issuers, the MCDA, Saint
Paul, the State of Minnesota nor any political subdivision thereof within the
meaning of any constitutional or statutory debt limitation, nor sha11 the
Bonds give rise to a charge against the general credit or taxing power of the
Issuers, the MCDA, Saint Paul, the State of Minne5ota or any political
subdivision of the State of Minnesota, nor shall the Bonds be payable ouC of
any funds or properties of the Issuers, other than those provided as security
by the Indentures; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul,
Minnesota:
1. The Program is hereby adopted and approved, and the staff of the Housing
and Redevelopment Authority of the City of Saint Paul, Minnesota is hereby
authorized and directed to take a11 actions necessary to implement the
Program.
2. The issuance of the Bonds by the Issuers in the form and on the terms
determined by the Issuers is hereby approved for all purposes.
��������:�
Adopted by Council: Date , � �
Adoption Certified by Council Se etary
By:
Approved by Maybr: Date
B � cc �'�/G��
Requested Yz� Department of:
Plannin /and Economic velo ment
BY: A ��i�� �
Form Approved by City Attorney
BY � y� +'�./
r
by Mayor for Submission to
Council
Y � ��
By: !� E��d "�
GREEN
� L -535 �
31799
— wmwoa� -�
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TOTAL # OF SIGNATURE PAGES `i {CLIP ALL LOCATION5 FOR SIGNATURE)
Approval of Yhe refunding of Phase II o£ the MinneapolisJSaint Paul joint single family
program.
AiiTMENT DIRECTOR ti"L) � CITY CAUNCIL
Q CRYATTONNEY � CRY CLERK
FOR --
� � BUOGET DIAECTOF � FIN. & MGT. SERYICES DIq.
MAYOR(ORASSISTANl) . MEyBT _�
_ PLANNING CAMb11SSION __ dVILSERVICE COMMISSION
_ CIB COMMITiEE _
_ STAFF _
_ DI5fHICT('AUqT _
SUPPOqSS WHfCH COUNCIL O&IECTIVE?
PERSONAL SERVICE C�NTRACTS MUST ANSWER THE FOLLOWING QUESTIONS:
1. Has this persoMirm ever worked Untler a contrect for this tlepartmeni? -
YES NO
2. Has this personflirm ever been a ciry employee?
YES NO
3. Does this person/firm possess a skill not normaliy possessed by any curreM city employee?
YES NO
Explain all yas anawers on separata sheet antl attaeh to green aheet
The two central cities have an opportunity to capture $40.b65 million in "pre-Ullman"
bonding authority to use for a future phase of the hiiddle Income program by refunding
Phase II of the joint single family program.
1. Reduction of fee levels and bond interest rate associated with the original program.
2. Access to over $40 million in "pre-U11man" bonding authority, providing the ability
to establish a joint middle income program with higher income, higher parchase price,
and nott-first time home buyer standards.
a ` ,. " ,' �
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.� ".� Y
1. Fee levels and bond interest rate of original program not reduced.
2. Lost opportunity to fund additional phase of Middle Income program
. , �� �
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'OTALAMOUNTOFTRANSACTION g nOt t0 eXCeed $59.665 COST/REYENUEBUOGEiED(CIRCLEONE)
UNDING SOURCE moTtg8g2 revenue bonds Q � A NUMBER ��
NANCIALINFORMA710N.iEXPWiM aQ TS�, p� �1`/t ,�iJ�Q
��� —�Z i
YES NO
��-s3s
�OLLOW-UP FROM LOAN SERVICING pROCESS
FOLLOW-UP ON )08 IMPACTS
�- PUBLIC PURPOSE SUMMARY
°) � S35
P�OJ6CE N2tll@ _Phase II Single Familv Yro�ram Refunding Account#
Project Address �; r�,,iaP
City Contact Katy Lindblad Today's Date _xa� 22. T 99�
PUSLIC CQST ANALYSIS
PUBLtC BENEFIT ANALYSlS f°nas required
- (�ark "1"forPrimaryBenefitsand "2"forSecondaryBenefits}
!V. Job lmpacts
i��
^' Total Loan Subsidy: Present value of the toan over iu life, including expected loss of prinagle and iaterest rate subsidy.
!. Community Developrr�ent Benefits
[It. Housing devetopment Benefifs