96-536��������-��
Presented By
Referred To
Council File # 9�- S 3 (�
Green Sheet # 3>8oa
RESOLUTION
�IlVT PA , MINNESOTA �
Committee: Dat,e
GIVING FINAL APPROVAL TO TFiB RBCYCLING OF PROGR'9M
MONISS FOR TH8 MINNEAPOLIS/SAINT PAIIL
HOIISING FINANCB SOARD {THE n B�ARD n �
FIRST-TIMB 80M8BIIY8R PROGRAM THROIIGH THB ISSIIANCB BY THS BOARD,
JOINTLY ➢PITH OTHBR LOCAL I55IIHRS,
OF SINGLB FAMILY MORTGAGS RBVENQfi RSFIINDING BONDS
WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes,
Chapter 462C (the "Housing Act"), the City of Saint Pau1, Minnesota (the
"City") is authorized to carry out programs for the financing of single family
housing for persons of low and moderate income; and
WHEREAS, the MinneapolisjSaint Paul Housing Finance Board (the "Board"), a
joint powers board organized under a Joint Powers Agreement (the "Joint Powers
Agreement") by and between the Minneapolis Community Development Agency, 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 vnder the laws of the State of Minnesota, is
authorized to issue one or more series of revenue obligations as described
herein, pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Chapters
462A, 462C and 474A and Section 471.59 (colleatively, the "Act").
WHEREAS, the Board, jointly with the Dakota County Housing and Redevelopment
Authority (the "Dakota County Authority") and the Washington County Housing
and Redevelopment Authority (the "Washington County Authority" and, together
with trie Board and the Dakota County Auttiority, the "ISSUers") have previously
issued their 5ingle Family Mortgage Revenue Bonds, Series 1987A, in the
initial principal amount of $49,180,000, Series 1987B, in the initial
aggregate principal amount of $11,320,000, and Series 1987C, in the aggregate
principal amount of $138,000,000 (the '�Prior Bonds"); and
WfiEREAS, the Issuers progose to issue their Single Family Mortgage Revenue
Refunding bonds, Series 1996B (the "Refunding Bonds") to refund a portion of
the Prior Bonds; and
WHEREAS, the Issuers propose to issue the Refunding Bonds in order to recycle
certain monies under their programs of purchasing mortgage loans or securities
backed by mortgage loans made to Einance the acquisition or rehabilitation by
law and moderate income first-time homebuyers of single family residences
within the Issuers' respective jurisdictions pursuant to the Housing Act; and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the
"Code") requires a public hearing be held on the issuance of the Refunding
Bonds following publication of notice in a newspaper of general circulation in
the City and in Minneapolis at least fourteen days in advance of the hearing;
and
WHEREAS, the City Council has heretofore conducted a public hearing on the
issuance of the Refunding Bonds, at which hearing all parties were given an
opportunity to express their views with respect to the issuance of the
Refunding Bonds, as required by the Code; and
WHEREAS, the initial aggregate principal amount of Refunding Bonds will not
exceed $3,o0D,OD0; and
WHEREAS, it is proposed that the issuance of the Refunding Bonds be approved
and the Board be authorized to issue the Refunding sonds pursuant to the Act
and the Joint Powers Agreement; and
Z4�r2 4�- S3�
WHEREAS, it appears that the issuance of Refunding Bon�s by the Soard is in
the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUI3CIL OF THE CITY OF SAINT PAUL
AS FOLLOWS:
1. The issuance of the Refunding Bonds in an initial aggregate principal
amount not to exceed $3,OOO,00O is hereby approved, subject to final agreement
by the Board and the purchasers o£ the Refunding Bonds as to the exact terms
of the Refunding Sonds. The officers of the City and th.e Board sha11 do a11
things and take all actions as may be necessary or appropriate to carry out
the issuance of the Refunding Bonds in accordance with the Act and any other
applicable laws and regula[ions. No further approval or consent of the City
shall be required prior to the issuance of the Refunding Bonds.
2. The Refunding Bonds may be issued in one or more series at trie time or
times and pursuant to terms determined by the Board, and be struatured so as
to take advantage of whatever means are available and are permitted by law to
enhance the security for, or marketability of, the Refunding Bonds, provided
that any such financing structure must be approved by the Board. All such
determinations by the Board must comply with the applicable provisions of the
Act and the code.
3. The Refunding Bonds shall not constitute a charge, lien or encumbrance,
legal or equitable, upon any property or fvnds o£ 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 Refunding Bonds shall never have
the right to compel any exercise of the taxing power of the City to pay the
outstanding principal on the Refunding Bonds or the interest thereon, or to
enforce payment against any property of the City. The Refunding Bonds shall
recite in substance that such Bonds and the interest thereon are payable
solely from the revenues and proceeds pledged to the payment thereof. The
Refunding Bonds sha11 not constitute a delat of the City within the meaning of
any constitutional or statutory limitation of indebtedness.
���������;�
BY� 2- , R �.�--""-
—� � /
Approved by Ma r: Date S v/ �Y
$y: `hc. � ���4
Requested by Department of:
Planning and Economic Development
By: � , �—z--
r"
Form 7approved by city Attorney
$y: S� � �.��.�✓
zapproved by Mayor for Submission to
Council
BY : ��.
Adopted by Council: Date � �
�
Adoption Certified by Council cretary
PED
Lindblad 6-6614
5-7-96
FOB
�
qc-s3G
GREEN SH�FT N_ 31800
iam INS(IAVDA7E
pEPARTMENT UIftECTOR � CT' COUNCIL
CffYATTOflNEY � CRV CLEIiK
BUOGET DIflECTOR � FlN. & MGT. SERVICES DIR.
MAYOR(OqA5515TANn �T. Meyer �_
TOTAL # OF SIC�NATURE AAGES 1� (CLIP ALL LOCATIONS FOR SIGNATUR�
Approval of the refunding of Phase
program.
_ PLANMNG COMMISSION _ CMl SEHVICE
_ CIB COMMITTEE _
_ STAFF _
_ DI5TflICT COURT _
SUPPORTS WNICH COUNCIL 081ECTIVE4
IV of the MinneapolisJSaint Paul joint single family
PEflSONAL SERVICE CONiRACTS MUS7 ANSWER TNE FOLLOWING �UESTIONS:
1. Has tt�is personlfirtn ever worked under a conhact for this tlepartmert? -
YES NO
2 Has this personH"rtm ever been a city� employee?
YES NO
3. Does this person/firm possess a skill not normally possessed by any curreM city employee?
YES NO
Explain all yes answers on aeparate sheet antl atlach to green sheat
In 1987 the MinneapolisJSaint Housing Finance Board issued bonds joinCly with various
other local issuers. These outstate issuers are currently planning a new program and
can increase the size of their new program by $2-3 million, if the Phase IV program is
refunded at the same bime. Because the Housing Einance Board was one of the original
issuers, its approval is also necessary for the refunding to occur.
ADVANTAGESiFAPPROVED:
Outstate issuers are able to increase their first time hame buyer program size by $2-3
million.
� � �
�. .� •, �.c.r.
a
Outstate issuers unable to increase the size of their new first time home buyer program.
�� ��� ����i
_, e� , —�
TOTAL AMOUNT OFTRANSACTION E nOt to exceed $3 mil.l�on COSTIHEYENUE BUDGETED (CIRCLE ONE) YES NO
PUNDINGSOURCE ACTNITYNUMBER ���
FINANCIAL INFOFMATION: (EXPLAIN) �� �;'iJ�� � ���- �
."v__'
PUBLIC PURPOSE SUMMARY t�`_53t�
Project Name Phase IV Single Family Program Refunding /�CCOU(]t #
Project Address �itywiae
City Cantact Ratv Lindblad Taciay's DateMay 22 1996
PUBCiC COST ANALYSIS
ta
no
tV. Job Impacts
PUBLiC BENEFfT ANALYStS c�t or HRA funds required
(MarXz "1"for Primary .8enefiu and "2"for Secondary Bene�tsJ
"• Total Loan Subsidy: Present vaIue of the loan over its life, including expected loss of principle and interest rate subsidy.
FOLLOW-UP FROM LOAN SERViCiNG PROCESS ,�
FOLLOW-UP ON f OB IMPACT.S