2008-09-16_Agenda - Laserfiche WebLink

Home

B R I G G 5 ANO M O R G A�i Mr. Patrick Trudgeon August ], 2Q08 Page 2 includin� bonds an ��hich the principal and inierest are payable exclusively fron� the income and revenues of the project financed with the proceeds of the bonds, or exclusively from the income and revenues of certain designated projects, wheti�er or noi they arc financed in whole or in part with the praceeds of the bonds. The bonds may be add.itionally secured �y (1) a pledge of any grant or contributions from the federal government or other source; (2) a pledge of any i�cotne or revenues af the HRA from the project far which the praceeds or the bands are to be used; or (3) a mortgage of any �roject or other property of the HRA.. The revenue bonds can be issued by the HRA witl3out holding a puhlic l�earina. Because these bo��ds are revenue bonds, and not payable from the ful] faith and credit of the city, it rnay be difficult to market these bonds. Sorne HRAs have agreed to secure the revenue bonds witl� a pledge of all ar a part of che special tax that an HRA is authorized to levy pursuant to Minnesota Statutes 469.033, Subd. b. The amount of th� special tax levy is an a�naunt appraved by the gav�n�ing body of the city, but shall not exceed .0144% of taxable market value for the current levy year. The special tax is outside levy limit laws because it is approved by the city and ]evied by the HRA. 1Vlinnesota Statutes, Section 469.034, Subd. 2 auihorizes a IHRA to issue a bond pledging the general obligation of the city in which the HRA is located, provided that the HRA must find that the pledged revenues will equal or exceed 110% of the principal and interest due on the bonds for each year. The maximum amo�ant of general obligations that may be issued and outstand�ng under this siatutory authority, equals the greater of (1) one-half of 1% of the taxable market value o#' the city or (2} $3,000,000. This type of bond can only be issued to finance a qualified housing development project, which is a housing development project pro�iding housing either for ihe elderly or for individuals and families with incortnes not greater than 80% of the median fatnily income as estimated by the Ul�ited States I�epartment of Housing and lJrban Development for the inetrapolitan area in ruhich lhe project is located. The principal amount of the bonds must be approved by the governing body of the city and the governing body of the HRA. Public hearings must be held on issuance of the bonds by �oth the HRA and the city. The hearit�gs n�ust be held at Ieast 15 days, but not more than 120 days before the sale af the nonds. If you have additional questions, da nat hesitate to contact me. Very truly yow's, �' ' (.- � � Mary L. Tppel MT�Iln7s 2210680v1