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HomeMy WebLinkAboutCERT TO REPORT TO MN HOUSING FINANCE AGENCY 29. CERTIFICATE TO REPORT TO MINNESOTA HOUSING FINANCE AGENCY STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF ORONO I, the undersigned, DO HEREBY CERTIFY that on the day of 2001, there was filed in the office of the Minnesota Housing Finance Agency a Report with attached Financing Program regarding the $ City of Orono, Minnesota Senior Housing Revenue Bonds (Orono Woods Apartment Project), Series 2001. MINNESOTA HOUSING FINANCE AGENCY By: Name: Title: REPORT TO MINNESOTA HOUSING FINANCE AGENCY City of Orono, Minnesota Senior Housing Revenue Bonds (Orono Woods Apartment Project), Series 2001A, Taxable Series 2001B and Subordinate Series 2001 C Pursuant to Minnesota Statutes, Section 462C.04, Subdivision 3, the City of Orono, Minnesota(the "Issuer"), hereby submits to the Minnesota Housing Finance Agency this report on the above-referenced obligations issued on November 30, 2001, in the aggregate amount of$ . The program description and income limits are described in the attached Financing Program and were supplied to the City by the "Owner," as described in said Program. The Owner has also advised the City that the "Project" is designed for rental primarily to the elderly and that, accordingly, pursuant to Minnesota Statues, Section 462C.05, Subdivision 4, income limits do not apply. Dated this 30th day of November, 2001. CITY OF ORONO, MINNESOTA By Its Mayor By Its City Clerk M1:571309.02 EXHIBIT A CITY OF ORONO PROGRAM FOR THE FINANCING OF A MULTIFAMILY RENTAL HOUSING DEVELOPMENT • FOR SENIORS Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Orono (the "City") has been 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 determined that it is in the best interests of the residents of the City to create a program of financing to encourage and facilitate the development of multifamily rental housing for seniors in the City(the "Program"). The City has received a proposal from representatives of Wedum Foundation, a Minnesota nonprofit corporation, and Orono Senior Housing, LLC (the "Owner"), requesting that,pursuant to the Act, the City approve a program providing for the acquisition of the Land and construction of 62 units of multifamily housing for seniors (the "Project")to be located at the intersection of Brown Road and Wayzata Boulevard in the City and intended, by location and design,to provide safe and affordable housing for, and to be occupied by, persons age 62 and older. The acquisition and construction of the Project is to be funded through the issuance of up to $9,000,000 in revenue bonds issued by the City(the "Bonds")pursuant to the Act. At least twenty percent(20%) of the units financed will be specifically reserved for tenants whose incomes are not greater than fifty percent(50%) of the area median income. It is estimated that rents for the Project will be approximately, depending on unit size and amenities: 1 Bedroom $875 1 Bedroom+Den $1,050 2 Bedroom $1,100 - 1,250 2 Bedroom+ Den $1,435 - 1,500 50%of Median Income 1 Bedroom $616 1 Bedroom+Den $738 The City, in establishing this Program, has considered, among other things (i)the availability and affordability of other government housing programs; (ii)the availability and affordability of private marketing financing for the construction of multifamily housing units; (iii) an analysis of population, employment 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 costs 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 of the City, including future administrative expenses; (v)the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations. 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; and (iv) accessibility to the handicapped. The Project will be constructed and financed pursuant to Subdivision 1(a) of Section 462C.05 of the Act. Subsection A. Definitions. The following terms used in this Program shall have the following meanings, respectively: (1) "Act" shall mean Minnesota Statutes, Chapter 462C, as currently in effect and as the same may be from time to time amended. (2) "Authority" shall mean the Orono Housing and Development Authority. (3) "Bonds" shall mean the revenue bonds to be issued by the City or at the discretion of the City, the Agency,to finance the Program. (4) "City" shall mean the City of Orono, State of Minnesota. (5) "Housing Unit" shall mean any one of the apartment units located in the Project, occupied by one person or family, and containing complete living facilities. (6) "Land" shall mean the parcel of real property upon which the Project is to be constructed. (7) "Owner" shall mean Wedum Foundation, a Minnesota nonprofit corporation or Orono Senior Housing, LLC, a Minnesota limited liability company. (8) "Program" shall mean the program for the financing of the Project pursuant to the Act. (9) "Project" shall mean the 62 unit senior housing facility to be located at Brown Road and Wayzata Boulevard. Subsection B. Program For Financing the Project. It is proposed that the City establish this Program to provide financing for acquisition of the Land and construction of the Project thereon by the Owner at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds and the respective Owner. To do this, the City or, upon authorization by the City, the Authority, expects to issue Bonds the proceeds of which will be loaned to the Owner for financing the acquisition of the Project. If determined to be necessary, a trustee will be appointed by the City to monitor the disbursement of proceeds of the Bonds and payments of principal and interest on the Bonds. The cost of any additional security devices for the Bonds will be borne by the Owner and payable in addition to the principal and interest on the Bonds except as otherwise provided by resolution of the City. It is contemplated that the Bonds shall have a maturity of up to forty(40)years and will be priced to the market at the time of issuance. The Bonds may be issued in two series, one of which has a claim on revenues senior to the other. The City will hire no additional staff for the administration of the Program. The City intends to select and contract with a financial institution or trustee experienced in trust matters to administer 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 except as otherwise provided by resolution of the City. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Subsection C. Local Contributions To The Program. It is presently contemplated that there will be a local contribution of funds to the Project consisting of tax increment financing by the Authority or the City for Land acquisition and certain public costs, together with an appropriation of funds for a local contribution. Subsection D. Standards and Requirements Relating to the Financing of the Projects Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the Owner pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the acquisition and construction of the Project. The funds will be made available to the Owner pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Owner. (2) The Owner will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, 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. Subsection E. Evidence of Compliance. The City may require from the Owner 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 Owner 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 Owner in order to confirm such ability, intention and compliance. In addition, the City may periodically require certification from either the Owner or such other person deemed necessary concerning compliance with various aspects of the 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 one or more series, and using any additional credit enhancement devices determined by the City to be necessary or desirable for each such series, in an aggregate principal amount estimated to be up to $9,000,000. 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. The City anticipates the issuance of such amount prior to the end of 2001. 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. Subsection I. Issuance of Tax Increment Notes. At the discretion of the City and Authority, obligation to finance the Land and certain public costs of the Program may be issued by the Authority or City pursuant to authority granted by Minnesota Statues, Section 469.178.