09-09-1992 Council Agenda - Laserfiche WebLink

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DXHIBIT A HOUSING PROGRAM RELATING TO THE ISSUANCE OF CITY OF LITTLE CANADA REVENUE BONDS UNDER MINNESOTA STATUES, CHAPTER 462C, FOR THE FINANCING OF A SENIOR HOUSING DEVELOPMENT, ON BEHALF OF THE PRESBYTERIAN HOMES OF MINNESOTA, INC. 1. City Housing Plan. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act "), the City has adopted a Housing Plan in accordance with all applicable requirements of the Act (as amended from time to time, the "Housing Plan "), which serves as a basis for the provision of housing for residents of the community. The Housing Plan describes various housing goals in the City, including the provision of multi - family rental housing developments through the issuance of revenue bonds by the City, the emphasis on ownership and operation of projects by qualified business entities, and the provision of housing developments specifically for the elderly. Under the Act, the City, prior to issuing revenue bonds or other obligations with respect to a multi - family housing development, as described in Section 462C.05, subd. 4, thereof, is to adopt a program setting forth the information required by the Act, including but not limited to Section 462C.03, Subd. la, and Section 462C.05, Subd. 6, of the Act. This Program advances the aforementioned housing goals by providing a means of enhancing the City's supply of affordable rental housing facilities for elderly persons at reasonable rental rates, as authorized, contemplated and prescribed by the Act and the Housing Plan. 2. Program. This Housing Program advances the aforementioned housing goals by providing for the financing of the senior housing development described in paragraph 4 below (the "Facilities "). The proposed financing is anticipated to create debt service economies that will permit the maintenance of rental rates at the most reasonably affordable levels. The proposed construction of the Facility is expected to enhance the quality of the City's housing stock for elderly residents. The method of financing to be advanced for this Program shall consist of the issuance of revenue bonds by the City pursuant to the Act. Such bonds shall comprise permanent financing for the Facilities and repayment of such bonds shall be provided by The Presbyterian Homes of Minnesota, Inc. (the "Corporation ") entering into a loan agreement with the City. Additional security may be provided for the bonds as determined by the original purchaser of the bonds, including a mortgage on the Facilities, and such other security as may be determined to be necessary or desirable. The aggregate principal amount of the issue is expected to be not in excess of $5,500,000. It is anticipated that the timetable for the financing will be carried out on an expedited basis and be concluded as soon as reasonably practicable, and in any event by Page 5