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HomeMy WebLinkAbout2003-075 CCRMember Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION NO. 2003-75 RESOLUTION ADOPTING HOUSING BOND POLICY AND PROCEDURES WHEREAS, attached hereto and incorporated here and by reference is Exhibit A, a proposed housing bond policy and procedures; and WHEREAS, the City Council wishes to have a uniform policy and procedure to ensure insofar as is practical able, that entities receiving housing revenue bonds issued through or with the assistance with the City of Brooklyn Center, including tax credits, maintain and operate housing properties receiving such assistance in accordance with the representations made to induce the City to participate in the issuance of housing bonds or approval of tax credit; and WHEREAS, the proposed housing bond policy and procedures appears to be reasonable and proper and will be reviewed by the City Council from time to time to review its efficacy and application. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Housing Bond Policy and Procedures as set forth in Exhibit A be and hereby are approved and adopted effective immediately. zf-6~ G Date L~ Mayor Pro Tem I~ ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Bob Peppe and upon vote being taken thereon, the following voted in favor thereof- Kathleen . Carmody, Kay Lasman, Diane Niesen, and Bob Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO-.'2003-75 Exhibit A BROOKLYN CENTER HOUSING BOND POLICY & PROCEDURES I. Application A. Applicant will submit a written application that acknowledges that the City has, and reserves, the right to decline to issue bonds or other assistance at any time, in the absolute and sole discretion of the City Council. B. Applicant will pay non-refundable application fee of $5,000 for bond request of $5,000,000 or more and $3,000 for bond requests less than $5,000,000 to cover City costs in processing and considering the application. If such funds are exhausted, the City may decline to proceed with consideration of the application until additional funds are paid to cover additional City expenses. C. Applicants will identify all significant investors and principals (more than 5%. ownership interest, officers, partners, etc.). Applicants will identify, as to the applicant, and all significant investors and principals: 1. All housing developments in which such person has, or has had, an interest. 2. For each such development, provide the address of the development and the name, address and telephone number of the chief appointed executive or administrative officer of the municipality in which the development is located. 3. For each such development, whether any criminal citations, charges or complaints were issued, whether or not they resulted in convictions, against any owners or managers for violations of building, housing maintenance, rental licensing or similar laws, rules or regulations during the period in which the individual had an ownership interest. For each such citation, charge or complaint indicate the jurisdiction, date or dates of the alleged offense and final resolution. cLL-229205v1 1 BR291-236 RESOLUTION NO. 2003-75 Exhibit A 4. For each such development, whether the local licensing authority ever revoked, suspended or declined to a renew rental license; served notice of intent to revoke, suspend not renew a license; or conducted a hearing on specified charges, complaints or violations of building, housing maintenance or rental licensing laws, rules or regulations that could have resulted in revocation, suspension or non-renewal of a license during the period in which the individual had an ownership. interest. For each such instance indicate the jurisdiction, date or dates of the incident and final resolution. D. Applicant will identify managers or proposed managers of the facility and, as to each manager or proposed manager and the officers, significant investors and principals of the manager, provide the same information identified in I. C. E. Applicant will provide detailed information on the sources and uses of funds received in connection with the financing or refinancing. F. For existing facilities applicant will present a detailed survey of the facility prepared by qualified professionals, including but not limited to: structural conditions; condition of roof, doors, windows and any other potential points of infiltration of air or water; mold; building exterior; life/safety systems and equipment; plumbing and HVAC systems; and unit interiors. G. Applicant will submit a detailed building maintenance, repair and replacement program and schedule including a description of sources of funds or financing available to pay for such program. For existing facilities the program will describe when and how all deficiencies identified in the building survey will be addressed. cL1r229205v1 2 BR291 236 RESOLUTION NO. 2003-75 Exhibit A H. Applicant will describe all plans to provide security, maintain habitability and avoid crime (the Security and Crime-Free Housing Plan). Such plan could include tenant screening procedures and policies, tenant rules and regulations, lease terms, physical building security, on-site management, etc. H. Contract Terms A. Covenants on use of funds, maintenance, compliance with laws and liability will be enforceable by the City as well as the Trustee. B. Applicant will pay the City attorney's and consultant's fees and costs for all litigation or administrative actions to enforce covenants. C. Applicant will provide and maintain an irrevocable letter of credit, in an amount specified by the City, that the City may draw upon if applicant fails to pay City's fees and costs. The letter of credit may also be drawn upon for payment of liquidated damages for false, incomplete or misleading statements in the application. D. Applicant will comply with representation about the use of funds secured by the financing or refinancing. The applicant will provide evidence of such expenditure of funds and books and records of the applicant will be available for inspection by the City or its authorized representatives. Funds remaining after all work identified as work to be accomplished with the proceeds of the financing or refinancing, will be deposited in a building maintenance fund. E. Applicant will comply with the maintenance repair and replacement program approved as a part of the application process and provide quarterly reports with such detail as is requested by the City to verify compliance. CLL-229205v1 3 < BR291-236 RESOLUTION NO. 2003-75 Exhibit A F. Applicant will comply with the Security and Crime-Free Housing Plan approved as a part of the application process and provides quarterly reports with such detail as is requested by the City to verify compliance. G. Applicant will comply with all federal, state and local laws, regulations, and ordinances relating to licensing, housing maintenance, building and fire codes or habitability. H. The applicant may not transfer the facility or change managers without City consent. The City will not be required to consider approval of a transfer of ownership or change of manager until all information on the transferee or new manager that is required by this policy for the initial applicant or manager has been provided to the City and the City has had adequate time to review such information and investigate the background of the proposed transferee or new manager. I. Failure to comply with these requirements is an event of default and City, as well as the Trustee, may exercise appropriate remedies for default under the bond documents. III. Waiver The City may waive or modify any of the requirements of these Procedures in its absolute and sole discretion if it determines that the public interest is adequately protected without full compliance with these Procedures. In deciding whether to waive or modify procedures the City may consider such factors as: whether the bonds are an initial issue or refunding bonds, the past experience of the City with the applicant, the condition of the facility, and the proposed use o£bond proceeds. CLL:sez CLL-229205v1 4 BR291 236