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272447 WHITE - CITV CLERK ( r P9NK =FINANCE � C011I1C11 � GANARY -+DE�ARTMENT • ' CI�Y 'C}F �AINT PAUL ~ ����� ��i �� BLUE' =ylAV09 ' . � . , File N . � �jr� , r O� inance Ordinance N 0. �`�'� Presented By ' Referred To Committee: Date Out of Committee By Date � An Administrative Ordinance Adopted Pursuant to Chapter 260, Laws of Minnesota for 1975, amending Ordinance 15975 and Promulgating Regulations for the City 's Housing and Rehabilitation Finance Program. THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1 of Ordinance Number 15975 is hereby amended by deleting that Section in its entirety and substituting in lieu thereof the following: The Minnesota State Legislature has authorized the City of Saint Paul to develop and administer programs to finance the maintenance, provision and preservation of adequate housing within the corporate limits of the City and has declared such a program as constituting a public purpose. The State Legislature has determined, and the Council of the City of Saint Paul does hereby find and determine, (a) that there are many housing units in the City that do not meet the applicable housing codes, some of which need to be destroyed and some of which can be rehabilitated; (b) that a need exists to replace housing which is destroyed or demolished; (c) that a need exists for mortgage credit to be made available for new construction; (d) that refinancing existing mortgages will allow owners of housing units which need rehabilitation to take advantage of existing rehabilitation programs; (e) and that many owners, would-be purchasers or providers of housing units are either unable to afford mortgage credit at the market rate of interest or obtain mortgage credit because the mortgage credit market is severely restricted; (f) that development of new and rehabilitated housing in redeveloping areas of the City is being delayed or prevented y maxket rates of interest an ecause t e mortgage cre it mar et is severe y restricted. COUIVCILMEIV Requested by Department of: Yeas Nays Butler Hozza [n Favor — Hunt ' �`� L.evine Against BY ����"'" ���� ���� Maddox Showalter Tedesco Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY �" By Approved by Mayor: Date Approved b Mayor for Submission to Council gy By � ` � . : . . - . i to�y . . , , . ` �,��,s� r-i -a- �:. , , :� -�,�� ,� Section 2. Section 2 of Ordinance I1o. 15975 entitled "An Administrative Ordinance Adopted Pursuant to• Chapter 260, Laws of Minnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: To achieve the purposes , objectives and goals set forth above in Section 1, the mayor shall develop and administer a program or programs to finance housing construction and rehabilitation, housing acquisition and rehabilitation, or housing acquisition in conformance with the require- ments set forth in Chapter 260 , Laws of Minnesota for 1975, and the regu- lations promulgated by this Council. The City' s housing finance program may include funds from all available federal, state, regional and local sources, both private and public. In developing and administering these programs, the mayor shall coordinate such programs with other publicly aided financing programs administered by the federal, state, regional and local agencies, includin the existin Cit Housin Rehabilitation Loan and Grant Programs adopted by Resolution C.F. 2 4 1 an Reso ution C.F. 272145, and Ordinance 15751, and amendments to such Resolution and Ordinance, to the end that the City may achieve the optmum of benefit from all such programs and the provision of adequate, safe, healthful and affordable housing for the inhabitants of the City of Saint Paul. Section 3. Section 3 of Ordinance No. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260 , Laws of Minnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: In the administration of the City' s housing finance programs , the mayor shall endeavor to make use of existing lending institutions and staff, both from the private as well as the government sector. The mayor may employ all such necessary staff, contract with Fublic or private institutions or persons and obtain materials , supplies, equipment and office space as is in the judgment of the mayor necessary for the administration of the progxams and within the funding appropriateness approved by the City Council. Section 4. Section 4 of Ordinance T1o. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260 , Laws of rTinnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: Subject to the approval of the City Council, the mayor may employ the services of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota and/or the Minnesota Housing Finance Agency for the purpose of aiding in the implementation of the City's housing finance programs to the extent permitted by law. If the HRA is so employed, then . , . . �✓F.����`�'� • _3_ �'.; the HRA may be authorized by the mayor to exercise any and all of the powers which the Minr_esata HGUSing Finance Agency is authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A, in the making or purchase of loans and securities in furtherance of the programs; or, in the alternative, if the HRA is not so e loyed, the City may exercise, within the cor orate limits of t e City, al such op wers. Revenue bonds or other obligations issued by the City of Saint Paul shall first be authorized and approved by the City Council and issued in accordance with the terms and provisions of applicable law or charter provisions , ; including Chapter 881, Laws for 1963, as amended; Chapter 351, Laws for 1975, as amended; and Chapter 260, Laws for 1975, and for such purpose, the City Council ma� exercise, within the corporate limits of the Cit , an and all of the owers which the Minnesota Housin Finance Agency is authorized to exercise under t e provi�ions of Minnesota Statutes, Chapter 462A. Section 5. Section 5 of Ordinance No. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260, Laws of Minnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: For the purposes of this ordinance and unless otherwise herein provided, all terms and phrases used for the ur ose of a��rogram or programs adopted pursuant to this ordinance s a�l ave t e definitions and meanings given them in the documents , agreements or other instruments pertaining thereto. — Section 6. Section 6 of Ordinance No. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260, Laws of Minnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: All loans issued by the City shall be made only when it is first determined that financing is not otherwise available from private lenders upon terms and conditions which are affordable by the applicant. For such purpose, following receipt of loan applications a determination shall be made by the City or on the City's behalf that mortgage credit for that type of housing is not availa le from private lenders under such terms and conditions which will permi.t the borrower to rent the housing units at a rate which the market will be able and willing to pay; or in the case of a single family house, that the monthly principal and interest payments will not be afforda�le by the applicant based on such criteria as are deemed appropriate for the particular�rogram. A single family house shall be private detac ed or attac ed owner-occupie�one, two, ree or four-family dwe ling unit, a town ouse dwe ing, or a wel ing unit under condominium ownership (but not includin a mobile home or trailer occupied or to e occupie y ut one fami y alone, containing • • •• • � • �';�1�`�"��!_�kF4y � -4- � ,.. . � com lete livin facilities and facilities functionall related and subordinate thereto, and locate wi in the geograp ic oundaries of the City. In the event that the City shall be required to repay the principal amount of the mortgage, together with interest at a rate that will be at least equal to the interest rate which the City is required to pay on its bonds or other obligations. In establishing mortgage repayments, the mayor shall endeavor to ensure that the revenues recei�red by the City will be be sufficient to retire the principal and interest on bonds issued to finance the programs and also to provide for the costs of administering the mortgages. Section 7. Section 8 of Ordinance No. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260 , Laws of Minnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: Programs established by the mayor may provide mortgage financing for new construction, acquisition and rehabilitation, or acquisition of single family housing, multiple family ousing, townhouses, condominiums and apartments. The programs may also provide for refinancing of existing mortgages so that owners of housing units needing rehabilita- tion may then take advantage of existing rehabilitation programs administered by the City or other agencies. The programs may also provide for extension of financing for rehabilitation of existing housing units. Financing may be provided to the Housing and Redevelopment Authority of tne City of Saint Paul, Minnesota to be used by HRA to construct housing on property owned by the HRA or the City for purposes of sale, or may be used by the HRA for the purpose of rehabilitating existing housing used by the HRA or the City. Program funds may be used to finance acquisition of land for housing and for construction of housing to the extent provided in the program guidelines adopted by the mayor. Proceeds received from the issuance of general obligation bonds , revenue bonds and proceeds from the City' s general fund, including real estate taxes, shall be used to provide housing finance assitance for occupancy primarily by persons of low and moderate income. Section 8. Section 9 of Ordinance No. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260 , Laws of r4innesota for 1975" , is hereby amended ��y deleting that Section in its entirety and substi- tuting in lieu thereof the following: The mayor may provide temporary construction financing and permanent financing upon satisfactory completion of construction or rehabilitation of the housing. In all cases of housing finance assistance, the mayor shall obtain a mortgage lien upon the land and improvements. In the making of housing loans, the mayor shall attempt to obtain Federal Housin Administration insurance, private mortgage insurance or a Veterans Administration guaranty in all cases in whic the value of the loan exceeds 75� (or such other percentage as the mayor ma determine) � � . . � _ . • �'����� e-. , -5- of the value of the land and im�rovements. The mayor may obtain such other mortgage or hazard insurance as may be feasible and will better protect the interest of the City. All loans ma e y t e City s�l comply with all applicable federal and state laws and regulations per- taining thereto, including interest-rate limitations and full disclosure requirements. Section 9. Section 10 of Ordinance No. 15975 entitled "An Administrative Ordinance Adopted Pursuant to Chapter 260 , Laws of Minnesota for 1975" , is hereby amended by deleting that Section in its entirety and substi- tuting in lieu thereof the following: The proceeds from the sale of general obligation bonds and from revenue bonds issued for the programs authorized by this ordinance shall each be placed in a seprate fund which ma� be held by a trustee under a trust indenture or bond resolution; monies placec� in these two funds may be transferred or disbursed to a fund which will combine these sources with other sources to accomplish the City' s Housing and Rehabil- itation Finance Programs; and housing finance loans and mortgage credits may be made from this combined fund. The general obligation bonds issued under this ordinance may be retired in accordance with the City' s normal funding process for general obligation bonds. Revenue bonds or revenue obligations issued for these programs shall be retired solely from all of the revenue sources of the programs authorized by Chapter 260 , Laws of 1975, as defined and pledged to their repayment in their respective bond resolutions; or indentures; and a separate sinking fund or funds and such and such other funds or accounts as may be a propriate sfial be established for the accounting of the revenues and retirement of these revenue bonds � the bond resolution or indenture pertaining to such revenue bond s. Section 10. Sections 11 and 12 of Ordinance No. 15975 entitled "An Admini- strative Ordinance Adopted Pursuant to Chapter 260, Laws of Minnesota for 1975" , are hereby amended by renumbering said Sections 12 and 13 respectively, and by adding the following substitute Section 11: Section 11. The foregoing provisions of this Ordinance, and the provisions of this Section 11, shall constitute the regulations required for the program authorized by Chapter 260, Laws of 1975. In developing and administering the prog�am, the mayor shall consider: (a) The avaiilahility and affordability of other govern- mental programs; (b) The availability and affordability of private market financing for mortgage loans and rehabilitation loans; . . , i b5�o4 r •. • , ' _ ��►'�� r� , _6_ f, .�'�!'� (c) Whether refinancing existing mortgages will enable rehabilitation of housing units under a Store or local housing rehabilitation program; (d) The need for rehabilitation housing units acquired from governmental bodies and agencies; (d) The need for additional mortgage credit to encourage the purchase of housing units in the geographic boundaries of the City, and the purchase of rehabili- tated housing units from governmental bodies or agencies ; (f) The need for additional mortgage credit to encourage the purchase of housing units which are located on property which governmental bodies or agencies have acquired and made suitable for housing construction; (g) The advisability of employing, or contracting for the services of, private mortgage market persons or insti- tutions to aid and assist the City in carrying out the purposes of this ordinance; (h) The advisability and availability of mortgage pool insurance and special hazard insurance to protect tzhe. ir:terest of the City in the mortgages , and land and improvements , financed pursuant to this ordinance; (i) In determining that financing is not otherwise avail- able from private lenders upon terms and conditions which are affordable by mortgage loan applicants, such data as may be available concerning the cost of housing within the City, the cost of maintaining and insuring such housing, incomes of persons and families within the City, the rate of increase and cost of housing within the City, and the rate of increase in the funds available to persons and families within the City; and (j) The advisability of special criteria for redevelopment areas, which criteria may make financing available in redevelopment areas without regard to income limits; and (k) The advisability of coordinating such program or programs with other City, state, federal and other programs to the end that all such programs shall constitute a comprehensive program for achieving the purposes of Chapter 260, Laws of 19 75. WHI�E — CITV CL€RK � "PI�NK — FIN�ANCE L . COUIICll �, '����� CAd+IARV —�DEPARTMENT /NF�'j ITY OF SAINT PAUL � ��e , _"'?'^�R File N0. �.'., /;'`��-� 6 ' � Ordin�nce Ordinance N�. f��� Presented By Referred To Committee: Date Out of Committee By Date -7- 'I'he mayor shall formulate such criteria for submission to the City Council for review and approval, in connection with any program or programs undertaken pursuant to this ordinance and consistent with the regulations promulgated hereunder as shall most effectively carry ov��-.. the purposes of this ordinance. Such criteria may be contained in any agreement, contract, indenture, bond resolution, or other instrument pertaining to such program or programs. Section 12 . This ordinance shall be deemed a part of the 5aint Paul Administrative Code and shall be incorporated therein and given an appropriate chapter and/or section number at the time of the next revision of said Administrative Code by the City Attorney. Section 13. This ordinance shall take effect and be in force thirty (30) days from and after its passage, approval and publication. COUfVCILMEIV Requested by Department of: Yeas Nays � g�� In Favor Hunt Levine d Against BY Maddox Showalter Te Adopte y Counc' . Date —�oT��7�_ Form Approved b City Attorn y B � C tified P ed by Counci c tary Y Y Ap b Mayor: � Approved by Mayor for Submission to Council By By � � �1��� �ttBU�ttED FE8 ! ? 1979 ., :�� w.� = w� � �� �. : � "� ,�. A4M� O l.: 12/19 7 5 . H„ , ,`. ' . � .Y.r-;.s�*.a:�,r��!�., ' �:.. '�'� a . " ,fi�w�. '� �. } . : ,r�+�n+�si 3f C �, f :i�^" 'F '�°+ ti }Jtr!1��t n•...,n- �- :'*'� . . . �� .,,, ..�;,�.�,� . ��.�..�-�w ��� � �"*�� ;� + .ltev .9f$/afi �, � 2+,iM1"A,".P . s� s+�v,'k:f y � ':ex+,w'a Rc '� �!$'7 ,° � �.� . �� .,rro ... ..-c�.r ,�. >^� �,�� ;«er , .� .. '� ',.. � E XPLANAT24N:�OF''ADMIN I�T TIVE `O RDE RS, .y, ^� . . ,`Y� « .� .� . "�`''-` '�_ � �. < .RESOLUTI4NS, .�TD��INANCES - . ; �r`�'+�,,4 ' _ ,� s:,.y ,� .� � ,� ��...� �.� � �.l��;� ' n�� a � �.e� � , s � � "w , ` y�, f , ` `. . .'. k� .: _�, • ' ,�i:y,"�r �rr ar� ,. .,. - . r ". . � � . t . . . �... . . , .. r� } ' , .,�:� .,� t ., t _ _ �.. . _, ., /� � '';�. . . . - , ., � �, . . ..�.�,,.. ��. , . : ,. q•.k t$.N'` .': 5 � � "K wN{�F�� � . .. . � � . : Date: 1/23�79 �, , ; ; ���� ' n�.�.�rp�� ,, -: -� , �R �.,.- :, ,�. ,� :.. ����, .,� w . _ .. . 6�sirr' . fi✓�+�}V�� . . . . . . . .. �. . . _- , ..� � e-. ' , �. - -�. .. •,u t }k�u.K ... ;r r�,a��,<.�; � � .. . .. . . . _ _ RECElVE� . r�.s . _-� �,���.� -����:�� e� �1�79 TO: MAY4R GEORGE I�ATIMER �'�`"� �: �'�� �AN +�=� . _ _ . , . . ._ �� � ...: ����� *�� ��.� - �, � ;''�� ..r� � ���,�� � FR: Gary Stout .�� ° . - . , . :-. ..'. 5 F ; ,�, _ a� Y �., .T y a �:� : .. �• ' , . . y, �r�� _ ' aW x..•v.+r�t'e.°qs '"• �q� Y�{ .z.< d��.gf• � ��v . ' . � _ . . ' .. '<tw.... w. �,__. .a .. , .. ... .. : , �.-. RE: Oa;dinan�e,:A�nending Q 'Y c� . . . . , �at�rig Regulation,s . . _ for t�i� �TCs��a�rig ar�:c�. �.�1�� - ���e Programs.. H� .. � .� -t ,�"�� �� � �.,;.k� . . . � �fl.. . " � ' " ' '. ' ' .+ _ .. , " .. . . . . y�� ��� . ' .. � �. .. . " . . . . .; ` . n;" ,-,.."�w ..� . . . . . ., ._.. � . . „�:��^g, . ..� y�:�xy�y ... . . ' . .... . ... . . � . ....a.... ... Mr�� .... . . , .. .. . .. . . . ' • .. _ A�,�. a'� . _ . .. ' � .!� . . . . � . +�}+�s r. . y.�* P . . . ' • ' . . . 'rS fi[a. � - � . � . . . _. « . .-: .. :'. � r ... . . . � • �- � - - � . . ;. ... _ . . .. - . + . � � � . . .�._-. . - ��.�.J�n.,�:. � - . . c...: . . � .. . .� ' . ACTION REQUESTED: ��` :" ' = � . _ ','� . . . . .=��� ....... •. 6.,a:.•.,�. . . . � . . � �. � . . .. ' � F2� . . . : . . . . . ..jr � �.. . � � Approval far subiniss�in to Court'�il for January 25, 1979 Meeting �`;� . . o:.� . . . .:. , . . .. . � . .. �y.' .. .. . . . . " .:� .' .� � :l:l$,: � �...,_ � � . � . -- �.:.� ..'�.. �.:. .. . .. 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'�` Amer�d�ien�a���s,sary ta �nplement below market interest rate home �9 . �o��,a�e-��am (BMII���under Chapter 260, L-aws 1975., and Ordinance a��� � �.� t.. � ;� �y�;:� : �'d��-� ��������_a�thori� '� rehabil:itation loans,, requiring mortgage :;*� �.. . �;�.aa���.��sa:pting�-r�e�ations `and housekeepi-ng changes. � , �� � �.k�:; � � �� m . ., .. .,,. . , . z ��...... � ..,....a n� ,. :.. �c+.?:� . . .�' . . � . +.Y r, ...M1 . . - . .. . . .. . � • • . . ! . . , : , �. . . .� -� ..'. , �. . - . . �• " .. .`A'G' k •'�'^• . �� ' 'Sw'"T+'.* ' � �- . .. ATTACHNlENTS: �= Ordinance . �,. . ` > . � ' � �St / �s Zn d a �� 3rd .� Adopted �� ` � Nays Yeas gUTLER . flUNT LEVINE �~���,�� � MADDOR /� , � V - SHOWALTER � TEDESCO �� PRESIDENT (HOZZA) , .