89-735 WMITE - CITV CLERK CO11flCII J
PINK - FINANCE C I TY F SA I NT PA U L �
CANARV - DEPARTMENT �. /�
BLUE - MAVOR File NO. �J f V
�o n i Resolution 3� �
Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS , homeownership i r cognized to be a factor in
maintaining community st bi ity and property values ; and
WHEREAS , the House of Re re entatives has introduced an
amendment to the omnibus ho sing bill that would:
* allow cities to pp y to the MHFA for grant funds
which can be use t establish a homeownership
conversion
* provides broad f ex ' bility to use funds for
acquisition and eh bilitation, as well as for
training program f r homeownership and emergency
assistance
* allows the City o ontract with non-profit
organizations to pe form some or all of the
administration o t e program
* allows the expen it re of up to $60 , 000 in state grant
funds on any one un' t , of which a minimum of $45 , 000
must be recaptur d pon sale of the property
WHEREAS , this amendment as successfully attached to the
omnibus housing bill (H. . 35 ) in the House Committee on
Financial Institutions a d ousing recently; and
WHEREAS , this language d es not yet appear on the Senate
version of the omnibus h us ' ng bill ( S . F. 522 ) ;
BE IT RESOLVED that the it of Saint Paul supports the rental
to homeownership convers on program.
COUNCIL MEMBERS Requested by Department of:
Yeas Nays
Dimond
� I(1 VO
Gos�vitz
Rettroan O B
Scheibel Aga' st Y
Sonnen
Wilson
Adopted by Council: Date G
ApR 2 7 Form Approved by City Attorney
Certified Pass d y ounci Sec r By ��' � ' �����"" � ��_�/
By�
A►pprove � avor: Dat APR 2 � � Approve Mayo for u ' sion to Council
By
� � ,
PUB�tSti� r;��aY - � 19 8 9
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DEPARTMENT/OFFICE/COUNpL DATE NITIA D
Mayor' s Of fice 4/ 4 89 GREEN SHEET No. 13 5
CONTACT PERSOPI 8 PHONE wmw DATE INRIAUDATE
a DEPARTMENT pIRECTOFi �GTY COUNdL
Steve Proeschel 298-4323 �cmr�rroRNer �arrc��nc
MUST BE ON�UNGL AOENDA BY(DAT� �BUDOET DIRECTOR �FIN.Q MOT.SERVICE8 DIR.
a s ap �MAYOR(�i A3813TAWT) �
TOTAL A�OF SIQNATURE PAOES 1 (CLIP LL OCATIONS FOR SIGNATUR�
ACTION REOUESTED:
Sign council resolution
City support of the Omnibus Hou in bill (H.F. 535)
REOOMMENDAT10N3:Approve(A)a Reject(R) COU IL MITTEEIRESEARCH REPORT OPTIONAI
_PLANNINO COMMISSION _CML 8ERVICE�MM18810N '�ALY PHONE NO.
_q8 COMMITTEE X L'OUriC l l.
_�,� _ Leg. Com. •
_DIBTAICT COURT _
su�oArs w►+iai counc��oe,iecrivE� tN1AYO�R`S OFFICE
INRIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What.When,Whsre,Why):
Housing for low-income persons
ADVANTAOE3 IF APPROVED:
Allows cities to apply to MHFA f r rant funds .
Provides broad flexibility to us f nds for acquisition and rehabilitation.
Allows the City to contract with no -profit organizations.
Allows the expenditure of up to $60 OQO in state grant funds on any one
housing unit. '
DISADVANTAGES IF APPHOVED:
DISADVANTAOES IF NOT APPROVED:
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TOTAL AMOUNT OF TRANSACTION a COST/REVENUE BUDdETED(CIRCIE ONE) YES NO
FUNDINQ 80URCE ACTIVITY NUMBER
FlNANGAL INFORMATION:(EXPWN)
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BRIEFING PAP R: RENTAL 'TO HOMEOWNERSHIP
C NV RSION PROGRAM
BACKGROUND
This program allows citi s to apply to the MHFA for grant
funds which can be used o establish homeownership
conversion. The program p ovides broad flexibilitSr to use
funds for acquisiton and r habilitation, as well as for
training programs for ho eo nership and emergency assistance .
The program allows the c ty to contract with non-profit
or�anizations to perform so e or all of the administration of
the program. It would a lo the expenditure of up to $60 , 000
in state grant funds on ny one unit , of which a minimum of
$45 , 000 must be recaptur d pon sale of the property.
STATUS
Representative O'Connor i t oduced this program as an
amendment to the omnibus o sing bill ( H . F. 535 ) and it was
accepted by the Housing S b ommittee of the Financial
Institutions and Housing o mittee . Language pertaining to
this program does not cur e tly appear in the Senate version
of the omnibus housing bi l .
SAINT PAUL ' S POSITION
This program will increas h mawnership by working with the
neighborhood. The Citv s pp rts this legislation.
" � . . BRIEFING P�PER. ENTAL TO HOMEOWNERSHIP ��-T,���
CON ER ION PROGRAM
BACKGROUND
This program allows cities t apply to the MHFA for grant
funds which can be used to e tablish homeownership
conversion. The program p o ides broad flesibility to use
funds for acquisiton and r h bilitation, as well as for
training programs for home w ership and emer�ency assistance.
The program allows the cit o contract with non-profit
organizations to perform s m or all of the administration of
the program. It would all w the e�penditure of up to $60 , 000
in state grant funds on an o e unit, of which a minimum of
$45 , 000 must be recaptured up n sale of the propertv.
STATUS
Representative 0'Connor in ro uced this program as an
amendment to the omnibus h us ng bill (H. F. 535 ) and it was
accepted by the Housing Su co mittee of the Financial
Institutions and Housing C mm ttee. Language pertaining to
this program does not curr nt y appear in the Senate version
of the omnibus housing bil .
SAINT PAUL' S POSITION
This program will increase o ownership by working with the
neighborhood. The City sup o ts this legislation.
. ��� �...�
W"HEREAS , homeownership is re ognized to be a factor in
maintaining community sta il ' ty and propertY values ,
particularly in verv low nc me neighborhoods , and
WHEREAS , very low income am lies are most in need of
assistance in order to ow t eir own homes; and
WHEREAS, Representative D wk ns has introduced H. F. 140 which
contains the following el me ts :
* creates a demonst at on program through which ci�ties
and non-profit or� n zations can apply for state funds
to operate a prog m to provide homeownership
opportunities for e y low income households
* allows the CitY or t e non-profit to purchase houses ,
" rehabilitate them n sell them to low income
households on cont a ts for deed, making it possible
to maintain very 1 w monthly payments
* provides for a ver etailed process for neighborhood
participation in w r ing with these households to
assist them in bei g successful homeowners
WHEREAS , this bill has bee a proved bv the Housing Division
of the House Committee on in ncial Institutions and Housing;
and
WHEREAS, H. F. 140 places a $5 , 000 limit on the total for
acquisition and rehabilita io which staff believes will
severely restrict the numb r f properties which will fit the
program;
BE IT RESOLVED that the Ci y f Saint Paul supports H.F. 140 ,
which encourages homeowner hi for low income households .
. ��7-�-
Members:
James Scheibel, Chair
�- i1e������ CITY F SAINZ' PAUL Committee-of-the-whole
���7 ���
� r OFFICF. F AE CITY COIINCIL
JAMES SCHEIBEL
2t : April 10, 1989 ���E��/��
Counc�7 President . ��� � �����
o m ittee Repo rt
c��� c�.��;c
To: St. Paul City Counc i
From: City Council Le i I tion Committee ��
g
1. Approval of Minutes - March 27 1989
COMMITTEE RECOI�IE�TDED APPRO AL
2. Legislative Update
NO COMMITTEE ACTI0:1 REQUIRE
3. H.F. 140 - Authorizing non- ro it neighborhood corporations to buy,
rehab, and sell housing to em ers of the community.
�Rental to Aomeownership Co ve sion Program)
COMMITTEE RECO�DED APPR V WITH AMENDMENT
to a ow a itional non-st te sources o money above
$50,000 where needed to me t he needs of the program.
(Minnesota Rural and Urban om steading Program)
COMMITTEE RECOI"Il�IE:IDED APPR V
CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-5679
�.46