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HomeMy WebLinkAbout96-145 - ADMIN Resolution - City Council - 1996/09/161 RESOLUTION NO. 9E-145 A RESOLUTION ADOPTING THE HOUSING REHABILITATION FUND POLICY WHEREAS, the City of St. Louis Park adopted a Resolution on August 16, 1990 establishing a policy to require equal opportunity and affirmative action with respect to employment practices and fee payment for rehabilitation and redevelopment in the City by beneficiaries of revenue bonds, and; WHEREAS, the Policy set forth the Housing Rehabilitation Fund which could be used for rehabilitation and/or redevelopment, and; WHEREAS, the City of St. Louis Park desires to adopt a more detailed Housing Rehabilitation Fund Policy to a facilitate housing rehabilitation, redevelopment and/or development and activities that promote neighborhood development and community enhancing activities, and; WHEREAS, the City of St. Louis Park would continue to administer the Housing Rehabilitation Fund. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, MINNESOTA, that the Housing Rehabilitation Fund Policy is adopted pursuant to the attached Exhibit A, for the purpose of facilitating housing rehabilitation, redevelopment and/or development and activities that promote neighborhood development and community enhancing activities. Attest: ty C N Clerk C Clerk Reviewed for Administration: 4 ty Manager Adopted by the City Co j icil on September 16, 1996 I Mayor Exhibit A CITY OF ST. LOUIS PARK HOUSING REHABILITATION FUND POLICY I. PURPOSE The City of St. Louis Park has established a Housing Rehabilitation Fund to provide a source of funds to facilitate housing rehabilitation, redevelopment/development and activities that promote neighborhood development and community enhancing activities. The Housing Rehabilitation Fund is intended to primarily be a revolving fund established and administered by the City Council. This policy is intended to set forth the general requirements and guidelines regarding the use of the Housing Rehabilitation Fund. The City Council may modify the terms at any time. II. FUNDING THE HOUSING REHABILITATION FUND ACCOUNT The primary source of funding for the Housing Rehabilitation Fund is an administration fee which is charged to all projects in which the City serves as issuer of private activity bonds. The fee is one-eighth of one percent per annum of the principal amount of the bond issue outstanding, payable semi-annually on such dates as determined by the City. Other sources of funding for the Housing Rehabilitation Fund may be repayment of loans as well as other revenues such as: the sale of real and personal property, federal and state grants, and other funds as designated from time to time by the City Council. City staff is directed to take all actions necessary to capitalize and maintain the fund balance in the Housing Rehabilitation Fund. To the extent that funds in the Housing Rehabilitation Fund are subject to restrictions as to their use by virtue of the source of such funds, the Housing Rehabilitation Fund will contain sub -accounts to ensure that such restrictions as to the reuse of the funds are met. 1 III. OBJECTIVES As a matter of policy the Housing Rehabilitation Fund will only be used to assist proposed projects or programs which meet one or more of the following criteria. A priority will be given to programs or projects that focus on housing rehabilitation, Priority will also be given to programs or projects where Housing Rehabilitation funds are used to leverage other public and private monies and/or sweat equity, A. Insure all housing is safe and well maintained. Examples include, but are not limited to: 1. Develop, strengthen, or expand the City's single and multifamily home maintenance rehabilitation programs. 2. Provide educational programs on housing maintenance. 3. Encourage public/private reinvestment in the City's housing stock. B. Provide a balanced and sustainable housing stock to meet present and future diversified needs. Examples include, but are not limited to: 1. Create larger and "upscale" housing (move -up). 2. Encourage homebuying. 3. Seek creative means to develop new housing stock. 4. Encourage remodeling and home additions that add architectural quality and value to existing homes. 5. Seek housing options for the changing demographic groups, including the aging population. 6. Strengthen neighborhoods and neighborhood amenities to foster residents' choices and lifestyles as a means to encourage or allow them to stay and reinvest in the City. 7. Maintain the current mix of ownership and rental housing. 8. Maintain our proportionate share of the region's low and moderate income population. 9. Continue acceptance and limited financial support of transitional housing programs for specialized groups. C. To encourage additional non -subsidized private residential development either directly or through secondary "spin-off' rehabilitation, redevelopment, or development. D. To offset increased costs of residential development or redevelopment over and above those costs that a developer would normally incur in urban and suburban development. 2 E. To accelerate the residential redevelopment process and/or to achieve quality development on sites which would normally be difficult to develop in urban and suburban areas. F. To meet other public policy purposes, as adopted by the City Council from time to time, including promotion of: quality urban design, quality architectural design, energy conservation, decreasing traffic congestion and reliance on automobile use, decreasing the capital operating costs of local government, and development that supports the concept of "New Urbanism", etc. New Urbanism is defined as development which builds upon what is locally unique and enduring, which creates a sense of place, neighborhood, and community and that: * is built upon a framework which relates to natural systems, a central civic place, a variety of other open spaces and plazas, a network of streets designed for both cars, people, and an interconnected system of walking, bicycling and public transit. * incorporates clustered, compact, dense, mixed use development which integrates land uses; household types; building types; socioeconomic groups; and home, work and play. IV. USE OF THE HOUSING REHABILITATION FUND The following general guidelines will be followed in connection with the use of funds from the Housing Rehabilitation Fund. A. The types of uses of the Housing Rehabilitation Fund will include, but not be limited to, the following: (i) the making of loans at interest rates below or at market rates in order to strengthen the financial feasibility of proposed projects; (ii) the guaranteeing of loans; (iii) the provision of gap financing for developments; (iv) the financing of acquisition, demolition, and disposition; (v) the financing of the construction of public improvements and utilities to aid proposed residential developments; (vi) the financing of rehabilitation, remodeling, or new construction; (vii) administrative costs associated with housing and neighborhood programs; and (viii) any other uses as permitted by applicable law. B. The Housing Rehabilitation Fund may be used to provide matching grant funds to assist with neighborhood projects and community enhancement activities. 3 s C. To the extent possible, funds from the Housing Rehabilitation Fund will be allocated to a number of developments and programs, thereby reducing the risk that funds to be repaid will not be available for future use. D. The Housing Rehabilitation Fund may be used to provide interim financing of public cost for projects in anticipation of a permanent financing source (i.e. construction financing, bond sale, etc.). E. To the extent possible, funds from the Housing Rehabilitation Fund will be secured by liens, letters of credit, ucc's, tax increment, or other forms of reasonable security. F. To the extent possible, loans from the Housing Rehabilitation Fund will be repaid with interest at rates established from time to time by the City or which are established at the time of approval of a specific project or program. V. PROCESS A. In establishing projects and programs to be financed using the Housing Rehabilitation Fund, the City shall to the extent possible: 1. Establish guidelines and criteria for each project or program to be assisted unless the project or program is already existing. 2. Establish a timeframe for completing the project or program and the repayment terms to the Housing Rehabilitation Fund, if applicable. 3. Prepare a financing plan for the project or program for review and approval by the City Council and by other entities as may be required by state law. C:/yvette/mis/hsgrehab 4