Loading...
84-085 - 08-07 - Approve Multi-Family Rental Housing Development Bonds Grant Program ApplicationResolution 84-85 August 7, 1984 Member Bakken introduced the following resolution and moved its adoption: RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED MULTIFAMILY RENTAL HOUSING DEVELOPMENT AND THE PROPOSED ISSUANCE OF MULTIFAMILY HOUSING BONDS THEREFOR AND AUTHORIZING THE PREPARATION AND SUBMISSION OF A HOUSING DEVELOPMENT GRANT PROGRAM APPLICATION WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C (the "Act") the City of Golden Valley (the "City") is authorized to adopt a housing plan and carry out programs for the financing of multifamily housing which is affordable to persons of low and moderate income; and WHEREAS, the Act requires adoption of the housing plan of the City (the "Plan") after a public hearing is held thereon after publication of notice in a newspaper of general circulation in the City at least thirty days in advance of the hearing; and WHEREAS, in accordance with the Act, the Plan may provide for programs for the issuance of bonds to finance multifamily housing developments which are affordable to persons and families of low and moderate income and are consistent with the goals, conditions and requirements of the Plan; and WHEREAS, the Act requires adoption of a program after a public hearing is held thereon after publication of notice in a newspaper of general circulation in the City at least fifteen days in advance of the hearing; and WHEREAS, a program has been developed and placed on file and been made available for inspection in the offices of the City; and WHEREAS, the program has been amended as reflected in the amended copy attached hereto as Exhibit A and made a part hereof; and WHEREAS, the United States Department of Housing and Urban Development ("HUD") has implemented its Housing Development Grant Program (the "HODAG Program") in order to provide funds to certain eligible areas, including the City, to assist the financing of affordable rental housing developments for persons and families of low and moderate income; and WHEREAS, the City has received a request from Laurel Ponds, a Minnesota general partnership to be formed (the "Developer") that the City undertake a Housing Bond Program (the "Bond Program") for the issuance of its multifamily housing revenue bonds under the Act in an amount presently estimated not to exceed $ (the "Bonds") and submit a grant application to HUD under the HODAG Program in order to finance a proposed 120 unit rental housing development (the "Development") located in the City at 6800 Laurel Avenue; and WHEREAS, the City Council of the City believes that it is in the best interests of the City to undertake the Bond Program and submit the grant application under the HODAG Program in order to maximize opportunity for the development of affordable rental housing for persons and families of low and moderate income in the City; Resolution 84-85 - Continued August 7, 1984 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Golden Valley: 1. That proposed Bond Program for the issuance of the Bonds to provide financing for the Project, as amended, is hereby preliminarily approved, subject to compliance with the requirements of Minnesota Statutes, Chapter 462C and the final agreement of the City, the Developer and the initial purchaser of the Bonds. 2. That the proposed submission of a grant application to HUD under the HODAG Program is hereby preliminarily approved. 3. That the City Administrator, the City Attorney and the staff and employees of the City are hereby authorized to participate in and cooperate with the Developer in compiling all information and doing all other things necessary to complete the grant application under the HODAG Program and in the establishment of the Plan and the Bond Program in accordance with the Minnesota Statutes, Chapter 462C. 4. That the Developer has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project, whether or not the grant application is approved by HUD; whether or not the project is carried through to completion and whether or not the Bonds, or any other instrument of the City, are executed and delivered. Mary E. derson, Mayor ATTEST: Shirley Ne, o6, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Stockman and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Bakken, Johnson and Stockman, and the following voted against the same: Thompson, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the City Clerk. Resolution 84-85 - Continued Exhibit A PROGRAM FOR THE CONSTRUCTION OF A MULTIFAMILY HOUSING DEVELOPMENT August 7, 1984 Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Golden Valley (the "City") will be authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has received a proposal from Laurel Ponds, a Minnesota general partnership to be formed that, pursuant to the authority found in the Act, the City approve a program providing for the construction of approximately one hundred twenty (120) units of rental housing ("Housing Units") designed primarily for rental to handicapped persons, located at the northeast corner of the intersection of Laurel and Jersey in the City (the "Project"). The construction of the Project is to be funded through the issuance of up to $ in revenue bonds issued by the City (the "Bonds"). It is proposed that the Bonds be sold publicly through an underwriter and that the Bonds will include some form of credit enhancement, such as additional collateral, insurance or a letter of credit, in order to provide favorable interest rates. Following construction of the Project, the Developer, or a related entity, will own and operate the Project as a multifamily residential rental project. The one hundred twenty (120) units will consist of two bedroom apartments, and one bedroom apartments with dens, of which twenty percent (200/'0) of the units will be specifically reserved for tenants whose incomes are not greater than eighty percent (80%) of the area median income. It is estimated that rents for the Housing Units will be between $475 and $675 per month. The City, in establishing this multifamily housing program (the "Program"), will consider the information to be contained in the City's 462C Housing Plan, to be considered and adopted (the "Housing Plan"), including particularly (i) the availability and affordability of other government housing programs; (ii) the availability and affordability of private market financing for the construction of multifamily housing units; (iii) an analysis of population, unemployment trends and projections of future population trends and future employment needs; (iv) the recent housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. The City, in adopting the Program, has further considered (i) the amount, timing and sale of bonds to finance the estimated cost of the housing units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's housing plan and its objectives; (iii) the method of administering, servicing and supervising the Program; (iv) the costs to the City, including future administrative expenses; (v) the restrictions of the multifamily development to be financed under the Program; and (vi) certain other limitations. Resolution 84-85 - Continued August 7, 1984 The City, in adopting the Program, considered the potential financing impact of a bond issuance on affected public agencies. In addition, the City reviewed the method of marketing the Program. Such review examined the equal opportunity for participation by (i) minorities; (ii) households with incomes at the lower end of the range that can be served by the Program; (iii) households displaced by public or private actions; (iv) families with children; and (v) accessibility to the handicapped. The Project will be constructed and financed pursuant to Subdivisions 1 and 4 of Section 462C.05 of the Act. Subsection A. Definitions The following terms used in the Program shall have the following meanings, respectively: (1) "Act" shall mean Minnesota Statutes, Section 462C.01, et seq., as currently in effect and as the same may be from time to time amended. (2) "Adjusted Gross Income" shall mean adjusted income computed in the manner prescribed in Section 1.167(k) -3(b)(3) of the Treasury Regulations. (3) "Bonds" shall mean the Revenue bonds to be issued by the City to finance the Program. (4) "City" shall mean the City of Golden Valley, County of Hennepin, State of Minnesota. (5) "Developer" shall mean Laurel Ponds, a Minnesota general partnership to be formed. (6) "Housing Plan" shall mean the City of Golden Valley 462C Housing Plan, to be considered and adopted, setting forth certain information required by the Act. (7) "Housing Unit" shall mean any one of the market rate apartment units located in the Project, occupied by one person or family, and containing complete living facilities. (8) "Land" shall mean the real property upon which the Project is situated. (9) "Program" shall mean the program for the financing of the Project pursuant to the Act. (10) "Project" shall mean the multifamily housing development consisting of approximately one hundred twenty (120) market rate Housing Units designed for for rental primarily to handicapped persons, to be constructed by the Developer on the Land, subject to review and approval by the City Council in accordance with the Golden Valley Zoning Ordinance. Resolution 84-85 - Continued August 7, 1984 Subsection B. Program for Financing the Project It is proposed that the City establish this Project to construct one hundred twenty (120) housing units to be owned by the Developer, or a related entity, at the price and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the Lender and the Developer. To do this, the City expects to issue Bonds, the proceeds of which will be loaned to the Developer for the construction of the Project. It is expected that a Trustee will be appointed by the City to monitor the construction of the Project and any payments of principal and interest on the Bonds. The cost of a credit enhancement item will be borne by the Developer and payable in addition to the principal and interest on the Bonds. It is contemplated that the Bonds shall contain a maturity of at least ten (10) years and will be priced to the market at the time of issuance. The City will hire no additional staff for the administration of the Program. The City intends to select and contract with a trustee, experienced in trust matters to administrate the Bonds. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program. The Bonds will not be general obligation bonds of the City, but are expected to be paid from properties pledged to the payment thereof, which may include a credit enhancement item such as additional collateral, insurance or a letter of credit. Subsection C. Local Contributions to the Program It is not contemplated that any additional financing or contributions from the City will be needed for the completion of the Project, or for the operation of the Program. Subsection D. Standards and Requirements Relating to the Financing of the Project Pursuant to the Program The following standards and requirements shall apply with respect to the operation of the Project by the Developer pursuant to this Program ( 1 ) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the construction of the Project. The funds will be made available to the Developer pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Developer. (2) The Developer or owner of the Project, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, age or status with regard to public assistance or disability. (3) No Housing Unit may be in violation of applicable zoning ordinances or other applicable land use regulations, including any urban renewal plan or development district plan, and including the state building code as set forth under Minnesota Statutes, Section 16.83, et seq. Resolution 84-85 - Continued August 7, 1984 (4) The Project is designed for rental primarily to handicapped persons, pursuant to Section 462C.05, Subdivision 4 of the Act. Subsection E. Evidence of Compliance The City may require from the Developer or such other person deemed necessary at or before the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Developer to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City, as set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Developer in order to confirm such ability, intention and compliance. In addition, the City may periodically require certification from either the Developer or such other person deemed necessary concerning compliance with various aspects of this Program. Subsection F. Issuance of Bonds To finance the Program authorized by this Section, the City may by resolution authorize, issue and sell its Revenue Bonds in an aggregate principal amount estimated to be approximately $ The bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be payable primarily from the revenues of the Program authorized by this Section. Subsection G. Severability The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Subsection H. Amendment The City shall not amend this Program while Bonds authorized hereby are outstanding to the detriment of the holders of such Bonds.