HomeMy WebLinkAbout1983/02/16 - Agenda Packetp G�.CA.LfO
CTTY OF
RAN X) CUCAbKXI)GA
c - o AGENDA CITY COUNCIL
1977
Lions Park Co ®unity Center
9161 Base Line Road
Ra.ccho Cucamonga, California
February 16, 1983 - 7:30 P.M.
All items submitted for the City Council Agenda must be in writing. The deadline
for submitting these items is 5:00 p.m. on the Wednesday prior to the meeting. The
City Clerk's Office receives all such items.
1. CALL TO ORDER
A. Pledge of Alleg!ance to Flag.
• B. Roll Call: duquet_, Dahl , Frost_
Schlosser_, and Mikels
C. Approval of Minutes: January 19, 1903 and February
7, 1983.
2. ANNOUNCEMENTS
a. Thursday, February 17, 7:00 P.M. - PARES ADVISORY
COMMITTEE - Lions Park Community Center.
b. Thursday, February 17, 7:00 p.m. - PLANNING COMMISSION
CONSIDERATION OF ETIWANDA SPECIFIC PLAN - Lions Park
Ccmmur,ity Center.
c. Thursday, Fcbruary 24, 7:00 p.m. - ADVISORY COMMISSION -
Lions Park Community Center.
3. CONSENT CALENDAR
The following Consent Calendar items are expected to be
routine and non - controversial. They will be acted upon by
the Council . +r nne time without discussion.
City Council Agenda
2
0a. Apprcva'. of Warrants, Register No. 83 -02 -16 and Payroll
ending 83 -02 -06 in the amount of $484,404.76.
B. Approval of Assessme -. District 82 -1 Warrants, Register
No. 1 -83, in the amount of $1,047,216.78.
C. Alcoholic Beverage Application for On -Sale General
Eating Place, Clifford J. 6 Socorro M. Solorzano,
Socorro$s, 10276 Foothill Blvd.
d. Award of contract to La Belle Consultants of Santa Ana,
low bidder, for pavement and subgrade analysis of
Archibald Avenue between Fourth Street and Base Line
Road which is required for street A.C. overlay design
purposes. Contract amount not to exceed $9,250.00.
e. Award of contract to C.G. Engineering of San Bernardino,
low bidder, for A.C. overlay design services on
Archibald Avenue, between Fourth Street and Base Line
Road. Contract amount not to exceed $15,000.00.
f. Approval of Agreement with the San Bernardino County
Flood Control District and Lewis Development Co.
regarding the connection of Terra Vista drainage
facilities into Deer Creek.
0g. Approval of Parcel Map 7666, Herbert Hawkins Cc., Inc.,
located on the southeast corner of Foothill Blvd. and
Turn�•r Averrzn.
RESOLUTION NO. 83 -19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING
PARCEL MAP 7666.
h. Release of Bonds:
Plot Plan 94 -88, located at 8333 Industrial Lane, Rancho
Cucamonga. Owner: Harold W. @ Donna D. Sears.
Faithful Performance Bond $8,400.00
Tract 9193, located on the east side of Vineyard, south
of Base Line. Omer: William Lyon Company
Monumentation Bond $1,000.00
Tract 9262, located on the east side of Vineyard, south
,p' of Base Line. Owner: William Lyon Company
740 Monumentation Bond $1,000.00
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February 16. 1983
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City Council Agenda 3 February 16. 1983
i. Release of Lien Agreement for construction of sidewalk 27
improvements on Milliken Avenue for Parcel Map 6585 as
recuested by R. C. Industrial Company.
RESOLUTION N0. 83 -20 29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, RELEASING A
REAL PROPERTY IMPROVEMENT CONTRACT AND LIEN
AGREEMENT FROM R.C. INDUSTRIAL COMPANY.
j. Forward Claim by Ronald Payne to the city attorney for 31
handling.
k. Forward Claim by Dennis Gill to the olty attorney for
handying.
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1. Approval of Assessment District 82 -1 Contract Change 34
Order No. 5 relating to the deletion of chain link fence
top rail. This will result in a savings of $5,280,00 to
the subject contract.
m. Set public hearing date of March 2, 1983 for
Environmental Assessment and Zoning Ordinance Amendment
• 83 -02 - Senior Housing Overlay District. An amendment
to Section 61.0217 of the Zoning Ordinance to include an
overlay district containing various development
incentives to produce senior citizen oriented multi-
family housing as well as site development and general
overlay district location criteria.
n, et pubi arise .. ^f Nzrch 2, 1983 for
Environmental ,Assessment and Planned Development 83 -01
(PM 7877) - Calmark. A change of zone from R -3 /PD
(multiple family residential /planned development) to 8-
3/5.0. (multiple family residential /senior overlay) and
the development of 269 apartment units, of which 161 are
intended for Senior Citizens, on 9.78 acres generally
located west of Archibald, north of Base Line - Parcel 2
of Parcel Map 5792 - APN 202 - 151 -34. (related file: CPA
83 -c3).
o. Set public hearing date of March 2, 1983 for
Environmental Assessment and Planned Development 82 -06 -
Tentative Tract 12320 - L A G. A change of zone from R-
3-T (multiple family residential) to R -3 /PD (multiple
family residential /planned development) and the
development of 116 eondomi.niums on 8.98 acres of land
located at the southeast corner of Archibald Avenue and
Victoria Avenue - APN 202 - 161 -07.
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City Council Agenda
p. Set public hearing date of March 2, 1983 for
Environmental Assessment and General Plan Amendment 83-
03 - Calmark. A request to amend the General Plan Land
Use Plan from medium -high residential (14 -24 dwelling
units per acre) to high residential (24 -30 dwelling
units per acre) for the development of 161 affordable
senior citizen apartments on approximately 4.55 acres of
lard located west of Archibald, north of Base Line - APN
202- 151 -34 (related file: PD 83 -01).
q. Approval of Recertification of Declarations of Impaction
for Chaffey Joint Union High School District and Alta
Loma Elementary School District.
February 16. 1983
r. Forward Claim by Stephen Miles Corbin to the City 43
Attorney for handling.
4. PUBLIC HEARINGS
A. PLANNED COMMUNITY 81 -01 - LEWIS DEVELOPMENT COMPANY. To be delivered 2 -14
The Terra Vista Flanned 7 Community consists of
• approximately 1300 acres and is bounded by Base Line and
Foothill Boulevard on the north and south, and by
Rochester and Haven on the east and west. Too City
Council reviewed the project at an adjourned meeting on
Monday, February 71 1983. Staff report by Jack Lam,
community development director.
nRDINANCE NO. 190 (second reading)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING
PLANNED COMMUNITY ZONE NO. 81 -01 FOR THE
DEVELOPMENT OF TERRA VISTA PLANNED COMMUNITY
GENERALLY LOCATED BETWEEN BASE LINE AND
FOOTHILL BOULEVARD ON THE NORTH AND SOUTH AND
BETWEEN ROCHESTER AND HAVEN ON THE EAST AND
WEST.
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ENVIRONMENTAL ASSESSMENT AND PLANNED DEVELOPMENT 82 -05 - 54
TENTATIVE TRACT 12305 - ROY. A change of zone from R -3
(multiple family residential) to 8 -3 /PD (multiple family
residential /planned development) for the development of
59 condominium units on 5.24 acres of land located north
of 19th Street, east of Hellman Avenue - APN 201- 232 -34,
54. First reading held on January 19, 1983. Staff
roport by Hick Gomez, city planner.
City Council Agenda 5 February 16. 1983
aORDINANCE NO. 188 (second reading)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCANONGA, CALIFORNIA, REZONING
ASSESSOR'S PARCEL NUMBER 201- 232 -34, 54
LOCATED NORTH OF '9TH STREET, EAST OF HELLMAN
AVENUE FROM R -3 TO R -3 /PD.
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C. FORMATION OF UNDERGROUND UTILITY DISTRICT NO. 1 ALONG 57 _
ARCHIBALD AVENUE A public hearing to determine whether
the public necessity, health, safety or welfare requires
the formation of an Umlerground Utility District No. 1
along Archibald Avenue from Foothill Boulevard to Church
Street. Staff roport 1,y Lloyd Hubbs, city engineer.
RESOLUTION NO. 83 -6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, FORMING
UNDERGROUND UTILITY DISTRICT NO. 1 ALONG
ARCHIBLAND AVENUE FROM FOOTHILL BOULEVARD TO
CHURCH STREET.
• D. ENVIRONMENTAL ASSESSNM AND PLANNED DEVELOPMENT 82 -04 -
TT 12091 - SALVATI. A change of zone from M -1 (limited
manufacturing) to R -3 /PD (multi- family /planned
development) and the development of 248 condominiums on
11.35 acres located at the northeast corner of 8th
Street and Grove Avenue - APN 207- 251 -02, 03, 13. Staff
report by Rick Gomez, city planner.
ORDINANCE NO. 192 (first reading)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA. CALIFORNIA, REZONING
ASSESSOR'S PARCEL NUMBERS 207 - 251 -02, 03, 13
LOCATED AT THE NORTHEAST CORNER OF 8TH STREET
AND GROVE AVENUE FROM M -1 TO R -3 /PD.
E. ENVIRONMENTAL ASSESSMENT AND ZONE CHANGE 82 -04 - MIN
MACK. A change of zone from A -1 (limited agriculture)
to R -1 (single family residential) for 5.25 acres of
land, located on the east side of Beryl Street, 1000
feet south of 19th Street - APN 202- 041 -15. Staff
report by Rick Gomez, city planner.
ORDINANCE NO. 191 (first reading)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, REZONING
ASSESSOR'S PARCEL NUMBER 202 - 041 -15 LOCATED
ON THE EAST SIDE OF BERYL STREET, 1000 FEET
SOUTH OF 19TH STREET FROM A -1 TO R -1.
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City Council Agenda 6 February 16. 1983
0 5. CITY MANAGER'S STAFF REPORTS
A. CONSIDERATION OF GENERAL PLAN AND TONE CLANGE FOR AREA 78
LOCATED SOUTH OF 6TH STREET, NORTH OF 4TH STREET.
BETWEEN HELLMAN AN? ARCHIBALD (SUBAREA 16 OF THE
INDUSTRIAL AREA SPECIFIC PLAN). Property owners
adjacent to this area have requested the City to examine
the feasibility of changing the designation along 6th
Street to residential land use. Staff report by Rick
Gomez, city planner.
Recommendation: The Planning Commission recommends no
change to the land use designation.
B. COOPERATION AGREEMENT WITH COUNTY OF SAN BERNARDINO
PROVIDING FOR USE OF HOUSING MORTGAGE BOND - AB 1355
WITHIN THE CTTV OP RANCHO CUCAMONG1 The County of San
Bernardino is preparing a Housing Mortgage Revenue Bond
which can be used for housing throughout Rancho
Cucamonga. The program can be used to augment the RDA'S
SB -99 issue. Staff report by Jack Lam, Community
Development Director.
Recommendation: Consideration of approval on possible
• developer agreement and cooperation agreement with
County of San Bernardino on use of Housing Mortgage
Bonds - AB 1355 - in Rancho Cucamonga.
RESOLUTION NO. 83 -21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING
A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN BERNARDINO'S HOUSING FINANCE REVENUE
BONDS ISSUE B, PURSUANT TO THE wrap FINANCE
REVENUE BOND PROGRAM.
C. RESOLUTION RECOMMENDING THE REGIONAL COUNCIL OF
GOVERNMENTS (SCAG) BE DELEGATED THE AUTHORITY TO REVIEW
LOCAL HOUSING ELEMENTS. Currently the California
Department of Housing and Community Development does all
reviews of local Housing Elements. This situation has
caused numerous problems. This Resolution recommends to
the State the possibility of changes in the Housing
Element review procedure to improve the process. Staff
report by Rick Gomez, city planner.
Recommendation: The Planning Commission recommends
adoption of the Resolution.
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City Council Agenda
0 RESOLUTION NO. 83 -22
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO CUCAMONGA, CALIFORNIA, RECOMMENDING
TO THE LEGISLATURE OF SAID STATE THAT
RESPONSIBILITY AND AUTHORITY FOR THE REVI:iW
OF LOCAL HOUSING ELEMENTS BE DELEGATED TO THE
REGIONAL COUNCIL OF GOVERNMENTS
D. APPEAL FOR FINANCIAL SUPPORT FROM CALIFORNIA CITI- COUNTY
STREET LIGHT ASSOCIATION. Staff report by Lauren
Wasserman, city manager.
E. CONSIDERATION OF PROPOSED AIKNDMENTS TO THE MUNICIPAL
REORGANIZATION ACT (MORGA). The City of San Bernaraano
has requested our community join in oppositior to a
proposal advocated by the County of San Bernardinc wh_ch
would amend the Municipal Organization Act to permit the
detachment or removal fro& a City without the specific
permission of the municipality's governing body. Staff
report by Lauren Wasserman.
Recommendation: It is recommended that the city council
send letters opposing the amendment of the Mun_cipal
Organization Act.
F. CONSIDERATION OF LIMTTIP/I THE PARKING AT VINEYARD
PARK. Staff report by Lauren Wasserman, city manager.
G. AGREEMENT WITH THE CHAFFE° HUMANE SOCIETY FOR RENAINDER
OF FISCAL YEAR 1982 -83. Staff report by Lauren
Wasserman, city manager.
Recommendation: It is recommended that Council approve
the agreement.
6. CITY ATTORNEY'S REPORTS
9. COUNCIL BUSINESS
B. ADJOURNMENT
February 16. 1983
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126
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January 19, 1983
CITY OF FARCES CUCi1MONCA
CITY COUNCIL 4INUTES
1. CALL TO ORDER
A regular meeting of the City Council of the City of Rancho Cucamonga van hm:n
in the Lions Park Community Center, 9161 game L'ne Road, on Cedceseny, :an':ary
19, 1983. The meeting was called to order at 7:45 p.m. by Mayor Jon D.
Mikels.
Present vere: City Council members Aicnard M. Dahl, Chases J. Buovet II,
James C. Frost, and Mayor Jon D. Mikels,
Also present were: City Manager, waen M. Wasserman; City Attcrney, Ro:.Or:
Dougherty; Community Development hirectcr, Jack Lam; City Planner, Rick Oocev;
City Engineer, Lloyd Ruth, Finance Director, Marry Sops, and Ccnxsao :ty
Services Director, Bill Hollev.
Absent: City Council meai,er Phillip D. Schlosser.
Approval of Minter, December 1, 1982, December 15, 1982, and January 5,
1903. Mayor Mikels pointed out that in the announcement section of January
5th minutes, it should reflect Senate Bill 521, not 128, Motion: Moved b
Dahl, necm'mdcd by Frost to approve the minutes as amended, Motion carried
td.
2, ANNOUNCEMENTS
• % Thursday, January 2G, 7:00 p.m., PARKS ADVICCP,Y CCI91."I GE, Llcns Park
Community Center,
b. Thursday. January 27, 7:OO p.m., ADVISORY COMMISSION, Lions Park Cc- munt ".y
Center.
c. Thursday, February 10, 6:00 p,m., JOINT CITY COUNCIL /PLARNiNG COPMISS :i';
MEETING, Magic Lamp,
d. Mayer Mikels read an article from the pall Street Journal which cited that
the City or Rancho Cucamonga spent the less amount of tax money per capita.
d. Mayor Mikels presented a city platoon to San Bernardino County Sheriff
Bland thanking him for his services to the City of Rancho Cucamonga from 197 + -
1982. Sheriff Bland had recently retired
f. Mr. k'a... anon Isluested t °at item 5C, Application of Mortgage Bond Issue,
be considered at the front of the Agenda since the bond counsel was presented
and needed to leave early to catch a plane. Council conducted that it could
be handled next since It was the same item which the RDA Just heard.
Mr. Beedle, Senior Planner, went over the report again since there a number of
people present n the audience that were not at the RDA meeting.
Mayor 4lkela opened the meeting for public hearing. There being none, the
public hearing was cloned.
Motlon: Moved by Dahl, aecnnded by Ban ueE to approve PC9oIat10n No. 63 -14 and
To valve Nit ^eadin8. Motlon le.r,ed 4 -0 -1 t,dhloemer a vend. Qty uerx
Wasserman road tae title of Resolution No. 83 -14.
RESOLUTION NO. 53 -14
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO O
CUCAMONGA, CALIFORNIA, AUTHORIZING APPLICATION FOR _
ALLOCATION OF A MORTGAGE SUB -S -DY BOND CONFIRMING FILING
OF NOTICE OF SALE WIIN THE MORTGAGE BOND ALLOCATION
C "ITTEE AND OTHER MATTERS RELnTINU THERETO.
3. CONS -ENT CALENDAR
Councilman Bequet requested that Consent Calendar item "1" be removed for
discussion. Councilman Frost rolleated that item m be removed for
Clscuss ion.
a. Approval of Warrants, Register No. 83 -1 -19, in the amount of $364,202.67
b. Approval of Warrants for Assessment District 82 -1 for the month cf
Se ... our, 1982 in the amount of $653,794.67.
c. Alcoholic Beverage Application for Eugene C. b Virginia Be Young, La Pasta
Mill, 8241 Foothill Blvd. for on -sale beer A wane eatine place.
d. Alcoholic Beverage Application for Mario M. A Yara A. Castelan, etc.,
Poll. Don Luis, 9170 -A Foothill Blvd., for on -sale beer A wine eating
place.
e. Approval of consultant contract with Son Owen and Associates as Assessment
Engineer and Brown and Nasareu as Bond Counsel for the Alta Loma Channel
Assessment nistrlct, Assessment District 82 -2.
f. Forward claim against the City by John I. Bowser to the Carl 'war
Company for handling.
A. Forward claim against the City by Edward J. and Eleanor Croft to the city
attorney for handling.
h. Approval to destroy certain City records.
RESOLUTION NO. 83 -11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, AUTHORIZING THE DESTRUCTION OF
CITY RECORDS AND DOCUMENTS WHICH ARE NO LONGER REQUIRED
AS PROVIDED UNDER GOVERNMENT CODE SECTION 34090.
i. Approval of Pe-cel Map 7689 and real property improvement contract and
lien agreement by Stephens: located at the northwest corner of Summit and
Fast Avenues.
RESOLUTION NO. 83 -12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANC40
CUCAMONGA, CALIFORNIA, APPROVING PARCEL NAP 7189 AND BEAT.
PROPERTY IMPROVEMENT CONTRACT AND LIEN AGREEMENT.
J. Release or Bond: Site Approval 79 -01, located on the northwest corner of
19th Strest and Beryl Avenue. Omer: ,immunity Baptist Church.
Labor A Material (road) $25,500
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k. Request authorization to seek bids for construction of a traffic signal at
Base Line Road and Vineyard Avenue. Construction document: are complete]
for advertising this pro -'act which x11: be coordinated wito reconstruction
of the access to Alta Loma High School parking lots. Eti ated cost of
the traffic signal were is 655,0 CO.
;. Hieten +e D. ..... t}se "am}..... reeeuen -0atien far Hia.erie 6n4a.Iw
Dee +gnat }es foe Che}.tsa. Hwee. iM H}eiarie Areeervai }en Gem }ee;en
held a BYO ;i. Maei.8 en Aanwaey 6. ;95g add eeeee.eed. ae Hieteeie
Laeisark Dea }gnat }en fee the GTri.Hae Hexee ;H.D. Ga..". Heueei.
(Item removed for discussion).
ADSD6D;IDN ND. 83-13
A NSS96Di ;DN DF ZH -e 6;;F CDCNGib DF ;HS C;TT DF RANCH;
CDCANDNCA, CA6 ;FGR;IA, NNGDCNiniND ;HS GHR49VA9 HD'db'.
FN.D,, GDCS ;NS HD'VSS; AS A SsGN;F ;GAN; H ;;;gA;G : -A+UNF DF
;HS G" 9F RhNGN6 GDCANCNGA AND ;HSA;T;R -e DSS ;GNA;;NG
AS A C;;Y N;S;GD;C eANDMARK,
s. ABBreva} of ....meet Disk,.., Ba -; Ce...t Chaege Drd., Me. 9.
Cefera... ... k ......}tatee the change order. Set }sated seat is d6r :u5.D "v
6a be drain fees the B .d.....tree. ..... agency fwnd. (Item rescued for
diseue.ion).
Motion: loved by Frost, seconded by Dahl to approve the Consent Calendar with
the deletion of items "1" and "a". Motion carried 4 -0 -1 (Schlosser absent) .
Discussion of Ices "s*: After ad explanation for the extra verk, a motion was
ode by groat, seconded OF Dahl to approve the A.esesseent District 82 -1
• Contract mange Drder Ne. 3 for an eatlmted coat of $6,445.00 to be drawn
frog the project's street cuntixeeney fund. lotion carried 4 -0-1 ( SChlosser
abode t).
Discussion of Iees "I":
Mr. Buquet stated that council had a copy of the staff's memo; in light of the
fact that the present sale of the house was tied up In the courts, he felt :[
would not be timely to vote en this at this time.
Motion: Moved by Dahl to move for a coot nuance.
Mr. Frost stated there were memhere of the Historical Commission present to
speak to this item. He felt man should hear them.
Mayor Mitres opened the meeting for public input. Addressing Cowneil were:
*Ada Cooper who gave a summary of the historical hackgrouod of the sale or
the house to the present owners.
*Bruce Whistler asked what was the date of cold from the County to the
present owners, the Morrison.. Answer was in 1978.
*Catherine Nilson, 6880 Archibald, president of the Women's Club of Rancho
Cueamooga, read a motion that the club had made to purchase the house
upon the avallahlllty of funds.
-Laura .lone, felt the buildinx was valuable and should be kept within the
City.
porti. -- 'the lln:.o ...m the F ..-. tic :ay;r Closed the pu 1
on - orathe meeting.
Mr. Front felt the -ity needed to do evnry'.htng, possible to protect the
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historical landmarks in the City. He felt we should proceed with the adoption
of the Resolution. -
Mr. Buquet felt the action should be continued to February 2nd. He stated we
do not have funds to improve the 3 t if we put a Resolution on this now.
Mr. Dahl stated that if we kept the house here, we could enjoy it from the
outside. If it were moved to Guasti then all could enjoy it from the i side.
Mr. Buquet felt this did not need to be done tonight. He w d not disagree
with the historical designation, but that the timing was ,along since it was
tied up in the courts.
Mr. Franc stated this was referred to the Historical Commission for
consideration and a public hearing was held.
Mr. Dahl withdrew his action.
Motion: Moved by Frost, seconded by Mikels to approve Feno.ition Na. 83 -:3
and to rmive full reading. no following vote was taken:
AYES: Frost, Mikels
NOES: Dahl, Buquet
ABSENT: Schlosser
Motion fal:nd on a tie vote.
Motion: Mkned by Buquet, seconded by Pahl to continue to February 16. Oro
following vote ns takwil
1i FS: Bahl, Buquet •
WES: greet, Mikels
ABSENT: Schlosser
Motion failed on a tie vote.
W. Buquet stated the resolution tailed for lack of a eMJorlty of the
Council. By virtue that the motion failed initially to pass the resolution,
then the resolution failed. He did not want to one it fail, but felt we
should continue the Item.
Hutson: Moved sy Dahl to continue until after the court proceedings. Motion
failed for lack of a second.
Councllnn Frost stated be would vote for a motion to reconsider the adoption
of the Resolution Itself and met a date for reconsideration for February
2nd. Mr. Deduct stated he lad not problem with that and seconded tiro motion.
Mayor Mikels asked for a clarification of the motion.
Motion: Moved by Frost to reconsider adoption of flese leans 83 -13 and to set
a hearing date for February 2nd.
Mr. Buquet asked if thin could he amended to the second meeting in February
,,June the mobile home and store drain issue., will be heard as Fehnary Ind.
Mayor Mikels stated he would agree with the action to continue this to the
February 2nd meeting.
Mr. Buquet stated that aecordin, to the minutes of the last meeting when they
d'srossed the Christmas House, the motion was in favor of following up on the
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option of amquiring the House through the Public /Private Coalition. There
were no funds cumitted, This was a 3 -2 vote and that was to continue in that
.or. W stated he felt sery strongly that this was something that could
affect that latest which was expressed by Council-
Payne Mikels Pointed but that the motion at the previous meeting to commit
moray failed 3-2. W • 9,Vuet stated that was correct, but we arc not talking
.beat none, new.
Mr, Dahl stated that if M•. Frost would amend the motion dettim the hearing
on Febrc r, 16th, has weld demand the motion.
Wyor Mikels Stated that Perhaps a motion to table the item would be
Appropriate. Mr. Wgcet stated he had no Problem setting a date as long as
Its on the 161th or after. fabling this amid be longer than that.
Mayor Wkels asked it there were a motion to table. Mo motion was same.
Motion: Moved by Buquet, secended by Dahl to reconsider Resolution 83 -13 to
February 16. Motion carried 4 -0 -1 (Schlosser absent'.
4. PUBLIC HEARINGS
A. TENTATIVE TRACT 12242 - HUGHES. Appeal of Planning Commission decistcn
requiring Focused Environmental Impact Report for a residential tract
irislon of 18 lots or. 4,96 acres of lane in the R -1 -8,500 (single family
residential) lone to be located on the east aide of Sapphire Street, south s.
Highland Avenue - APN 201- 212 -16. Staff report by flick Gomez, city planner.
Mayor Mikels opened the meeting for publ.c hearing. Addressing Council vas:
*Pat Capp, J. P. Capp, consulting civil engineers for the project. He
equested that Council reconsider the Planning Commission's decision and
let the client proceed with the development of the property. He felt that
it the City desired to have an SIR done, then it was the responsibility of
the City to get it, not the client. He stated that the "lent did not
wish to be burdened with the responsibility far the EIR,
Motion: Moved by Buquet, seconded by Dahl to uphold the Planning Comnlss ton's
decision to require a focused Environmental Impact Report and to deny the
appeal. Motion carried 4 -0 -1 (Schlosser absent).
B. ENVIP @:MENTAL ASSESSMENT AND PLANNED DEVELOPMENT H1 -05 TENTAT IVP, T9A =T
12305 - ROY. p change of znne from R -3 (multiple family residential) Lo fl-
3/PD (multiple family residential /planned development) for the development 59
condonin;mn units on 5.24 acres of land located north of 19th Street, east or
Hell "n Alc :le - APN 201- 132 -34, 54. Staff report by Rick Gomez, city
ol.,n:er.
Mr, Gomez .tat -1 ' w
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'on r0ived this evening addressing issues
Of mire.!1 :10, :tty�or Mikelaread We following letter for the record:
To '•': o,x It Hay Concern:
We a r , e tho r r 11,1;,5 neighbors of the ,evelopnent of condominiums and we
we, '1.rb :rin5:f the tin ofr of eater from Bcll..nn x0.11 be taken are of
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with the storm drain that will b, out in the north aide of the street rula
up with water, then It starts running down the south aide. We've had gaFages
and houses flooded.
In the widening of the street are they planning to use ,just the land that is
owned by Me Slate or buy some from the people. If they plan on buying land,
Will they buy from both sides of the street': We on the south side do not want
to be the only ones to lose our land. Because it We ever decide to sell, we
wouldn't at the full valae for our land.
The Zanromso's are not in favor of widening the road any more than what t
State owes, because the one of their front yard is for torn", around. Their
back yard is not big enough to turn around in.
The traffic along 19th Street is now pretty heavy at times. Even with the
road being widened and a turn in for the condominiums, the traffic will :
men heavier. The children who have to cross the street for school in -he
mornings will have a harder time.
Met of the neighbors had already stated their concerns at the seating.
Letter signed by:
Poland Recall Sharron White Peter Critchin
Allen L. Zanrosso Barba.. Crone ly Stan Fulton
Olds Zanroaso Lawrence Crossly Opal Smith
Debbie Dattan Glenn M. Rion Mel Smith
Jackie Brawn Mildren Barker Alan Marlow
Gerald Barker
Mayor Mikele opened the meeting For public hearing. Addressing Council was.
Architect for the developer, from 2808 E. Aatella, City of Orange.
•
There being no further public consents, Mayor Mikels closed the public
hearing.
City Clerk Wasserman read the title of Ordinance So. 188.
ORDINANCE NO. 188 (first reading)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCA.MONGA, CALIFORNIA, REZONING ASSESSOR'S PARCEL NUMBER
201 - 232 -34, 54 LOCATED NORTH OF 19TH STREET, EAST OF
HELLMAN AVENUE FROM R -3 TO R -3/PD.
Motion: Moved by Froat, seconded by Dahl to waive full reading of Ordinance
No. 188. Motion carried 4 -0 -1 (Schlosser absent).
Mr. Booklet asked if anyone was present who had signed the letter and If
Council had addressed the issues adequately. Jackie Brown was present and
stated the their questions had been addressed.
Motion carried 4 -0 -1 (Sehlonner absent)
Mayor M13r1s act second reading of Ordinance No. 188 for February 16, 1983•
Mayor M.kels Called a renaes at 8:45 p.m. The meeting reconvened at 9:00 p.m.
with all members ar council and Starr present.
S. CITY MANAGER'S STAFF REPORTS
•
A. PEOUEST TO CONSIDER A GENERAL PLAN LAND USE CHANGE AND Z0::IN1 CHANGE OF AN
INDUSTRIAL PARK LAND USE. Stall report by P.iCw Goxex, City Planner. _.
SurreYnding residents have requested the City's COnsider3t4 Cn Jr a land Vme
change from Industrial Park to P.esldential, south of 6tb Street between
Hellman and Archibald Avenues (Subarea 16).
Mr. Good. stated that the City Council she :ld refer this request to th<
Planning Commission for con. ideratlon.
Mayer Mikels opened the meeting for public input. Addressing Council :as:
*Jerry Eoakl, 9265 Layton, asked council to reconsider the industrial park
designation. Since Ontario has .,..ad up residential development, they
felt this would be a flood time to reconsider this before core development
occurred.
There being no further public comments, Mayor Mikels closed the public portion
of the meeting.
Mr. Buquet asked if he was referring to the apartments. He stated he had
heard this referred to as a "mistake" by Ontario. He -wondered if we were
making an assumption that this would be all residential.
Mayor Mikels asked if there was any opposition to referring this back to the
Planning Cc ®t..ion. There worm none.
Motion: Moved by Frost, seconded by Dahl to refer to the Planning Commission
for consideration.
Motion Carried 4-t -1 (Schlosser abeam[).
B. CONSi :e_PATION OF INSTALLATION OF -DPCCCMPUTEE FOR THE PPIAtI__
GEPANTME: j. Staff report by Harry Empey, Finance Direct.,.
Mr. Repay stated that the funding for this would be as folicwsi
55% from RDA
40J from Assessment Dstrict
5% from General Fund
Mayor Mikels opened the meeting for public comment. There being co he
Public portion of the meeting wed closed.
Motion: Moved by Frost, seconded by Bennet to approve the request conditioned
upon approval from the RDA. Motion Carried 4-0 -1.
C. APPLICATION OF MORTGAGE BOND ISSUE AMOUNT BEFORE THE MORTGAGE BOND
ALLOCATION CONLMITTEE. Item us. discussed at the fr.nt of the Agenda.
6, CITY ATTORNEY'S REPORTS. Of. Dougherty stated he bad nothing to report.
7. COUNCII. BUSINESS
a. Mr. Lam a • ounecd that the Terra 'Vista Plan :ay be coning to the Planning
C..,,31on at the next aceting. Starr reccormcds that Special thatings be set
for C - c:l consideration. council robcwrred on Monday, February 7, at 7:30
p.m. '.�n the Linn. Pare Community Center contingent that the Planning
Co. s,,ub rn b Completed their review.
b, Onurc; .. in Frost announced that on Tuesday, J3nuary 25th, the Etlwands
Historical Association mould ee meting.
c. Councilman Frost announced the Citrus Belt Control AesemelY meting on
WdneadaY, January Mid,
d. Coundllmen prnat announced Chat on ihuredey, January 27th, there Mtuld bs
a Zone I Flood Control meting.
B. ADJOURNMENT Motion: Moved by Dahl, seconded by Frost to adjourn. Motion
carried 4-0-1. no meting adjourned at 3:30 p.v.
Mspectyully sutmittedt
Haverty Authelet
Deputy City Clerk
r�
u
1
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F, IL
•
TO: City Council
FROM: Beverly Authelet
Deputy City Clerk
CITY OF RANCHO CUCAMONGA o'�"AfQtic
MEMORANDUM ,
a U�'
February 11, 1983
F C IIZ
The minutes of the adjourned meeting of February 7, 1983 will be included
with the Terra Vista packet which you will receive Monday, February 14th.
ba
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PAGE 3
C0D F RANCHO CUCAMONGA
DATE
1 /l0 /B3
1/10/83
1/12/83
1/12/83
1/12/83
1/12/83
1/12/83
1/12/83
1/12/83
1/12/83
1/12,183
1/13/83
1/18/83
1/18/83
1/27/83
1/27/83
1/27/83
1/27/83
1/27/83
WARRANT e
189
Igo
'91
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
VENDOR
City of Rancho Cucamonga
Bonademan-McCain Ins.
Richard Mills Associates
Hatch Bedrosian
Jeffries Banknote Co.
Williamson G Schmid
Larry E. Beck
Peter W. Smits
Tokai of America
Phillip E Elaine Schlosser
R.C. Industrial Company
R.C. Lard Company
GTE
Rancho Cucamonga Properties
City of Rancho Cucamonga
Hatch Bedrosian
Ritz Camera Store
NBI
Richard Mills Associates
•
WARRANT REGISTER JA� 1983
ASSESSMENT DISTRICT 82-1
ACTIVITY
Transfer
Contract Services
Contract Services
Contract Services
Printing E Publications
Contract Services
Refunds
Refunds
Refunds
Refunds
Refunds
Right -of Way Acquisition
Utilities
Right -of -Way Acquisition
Transfers
Contract Services
Printing E Publications
Office Supplies
Contract Services
ACCOUNT // AMOUNT
49 -23-99
S 7,942.00
49 -23 -28
790,123.36
49-23 -28
312.00
49 -23 -28
1,440.00
49 -23 -23
3,865.39
49 -23 -28
147.98
49 -23 -98
819.80
49 -23-98
5,771.35
49 -23 -98
14,825.17
49 -23 -9A
5,301.37
49 -23 -98
6,194.04
49 -23 -29
194,25o.o0
49 -23-21
35.19
49 -23 -29
13,175.00
49 -23 -99
7.37
49 -23 -28
1,344.0o
49 -23 -23
29.47
49 -23 -24
124.79
49 -23 -28
1,508.00
TOTALS... $1,047,216.78
' p
1
COPY- .a�d.a..
RA. [r[p AM. .N. 14[-Ix Nx/[[.n.•• ate•. a.b
YMKATION I" AICONGIK WEUIGE OCENSE(S)
T.: engnn .n• d Alnnwk Beni Canka
IN, knnd' iiiY 9A[NidSM
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1. "PE(S) Of OCENSE(S)
WE NO.
OW SALE GERER.L FATIN
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GEOGRAPHICAL
CODE 3615
D9N
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9. NANE(S) Of AIrtICAMIi)
Tent, I.ImI
fnenin oale:
eowHZrao, cltrrom J. & G"E` G M.
D. "(S) Of TRANSACGOKS)
FEE
C.
N
PEA. TSP.
! 1,250.
E
• -
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100.
4 Nam..l ban,H CT 20
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S. Eanlien a Ixinen- Numb.. ad !na
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TOTAL
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s. sM10- mivw =ii ..�. 41- 102623(Caac. uPW Sae. XF]i Tat: CHr umin> bw• Tee
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(b) Iha M .ill m[ .W-. o[ [euH al Wmil H be .iaald ant o11M1• 1-4nn, of de Al[o 11< M.elage C-1n,l A[,.
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CITY OF RANCI:O CUCAMONGA
STAFF REPORT
DATE: February 16, 1983
T0: City Council and City Manager
FROM: Lloyd B. Hobbs, City Engineer
BY: Richard Cota, Associate Civil Engineer
cuGMm
G� 9�
L
19777 I
SUBJECT: Authorization for Award of Contract to Perform Pavement and
Subgrade Analysis of Archibald Avenue between Fourth Street and
Base Line Read
The Engineering Staff requested, received and reviewed a proposal from
La Belle Consultants for pavement and subgrade analysis of Archibald
Avenue between Fou ^th Street and Base Line Road. Results from this
roadway analysis are to be used in the pavement structural determination
required for the asphalt concrete overlay design of Archibald Avenue.
The contract calls for services under Alternate B of the attached
Quotation letter dated December 28, 1982, with an option for service
under Alternate C if authorized by the City. La Belle's fee for
providing the engineering analysis as outlined in Alternate B will be a
lump sum of $5,500.00. An additional fee of $3,750.00 for Alternate C
services makes the contract (not to exceed) total of $9,250.00.
RECOMMENDATION:
It is recommended that City Council award the above mentioned contract to
La Belle Consultants and authorize execution of the contract at the
contract amount plus 10% for contingencies.
Respectfully submi�pled,
LBH:RC:bc
Attachments
7
A g r e e m e n t
THIS AGREEMENT is entered into this _ day of
, 1903, by and between the CITY OF RANCHO
CUCAMONGA, CALIFORNIA, a municipal corporation, hereinafter
referred to as "City" and LA BELLE CONSULTANTS, 2700 South
Grand Avenue, Santa Ara, California 92705, hereinafter
referiad to as "Contractor ".
c
M i t n e e a e t b;
ARTICLE I. For and in consideration of the payments and
agreements hereinafter mentioned to be made and performed
by City, Contractor agrees with City, that at its own proper
cost and expense, to perform the services in accordance with
the Quotation Alternate B (and option for Alternate C)
submitted to the City by Contractor dated December 20,
1902, a copy of which is attached hereto and ma0zed as
Exhibit "A"
ARTICLE II. The term of this agreement shall commence as
of the date of this agreement. Said services shall be
completed within forty -five (45) days after Notice to
Proceed with Alternate B. Upon Notice to Proceed with
Alternate C, additional services will be completed within
thirty (30) days.
ARTICLE III. No agency affecting of binding City shall
.
be created by virtue of this agreement. Contractor shall
c
-2-
be acting at all times as an "independent contractor" and •
as such shall hold City harmless from any action involving
negligence or intentional tort on the part of Contractor:
ARTICLE IV. Upon completion of the herein designated
services, City agrees to pay Contractor the sum of $5,500.00
for Alternate B (only) or a total of $9,250.00 (an additional
$3,750.00) if Alternate C is authorized.
ARTICLE V. Contractor agrees to perform all services
herein in a workmanlike manner.
ARTICLE VI. This agreement and the documents referred to
herein shall constitute the entire agreement. No change,
amendment or modification to this agreement shall be
effective unless it is in writing and signed by the parties •
hereto.
IN WITNESS WHEREOF, the parties to these presents have
hereunto set their hands the year and date first above
written.
CITY OF RANCHO CUCAMONGA LA BELLE CONSULTANTS
13Y By tev n R. Marvin
is President
RCE 30659
•
Paw.""
ij SI- tie.n.nia
IIJI``VI V ILL7 a ILJI \`VI OeJlenion reumt
Sml Smbdiemion
AJpha 11 7eMmlory
2700 S. Grand Ave. • Santa Ana, Calif. 92705 • 1714) 5463468
X II I B I T A
December 28, 1982
Q U 0 T A T t U N
to the
CITV OF RANCHO CUCAMONGA
bon an
Eng.Lneea.ing Study
06
ARCHISALD AVENUE - 4TH Street to 8anetine Avenue
•
within the
City o6 Rancho Cucamonga
Catd6oanLa
a:
La Belle Consultants proposes to perform a deflection
analysis and evaluation of Archibald Avenue within the
City of Rancho Cucamonga from 4th Street to Baseline
Avenue. Deflection testing will be performed utilizing
a Model 400 Road Rater, at test intervals of 200 feet,
along the outside wheelpath of each of the traveled lanes
studied. The complete engineering analysis will include
the following.
A L T E R N A T E A
1) Deflection data will be gathered such that three
sensor readings are recorded at each test location.
La Belle Consultants will provide Road Rater
operator and recorder.
2) During deflection testing operations, notes of
visual pavement conditions and /or distress, cross
streets, preserve or absence of curb and gutter,
and other such observations will be logged.
i
I.�
Page 2
City of Rancho Cucamonga
12/28/82
3) Field data collected shall be returned to our •
office for processing through our computer. This _
processing stall produce a typed tabulation of all
data and field notes thereon which locate the
intersections yf cross streets, pertinent landmarks,
field conditions, etc. The tabulation shall include
the reading of all sensors used as well as the
conversion of a sensor under load to an equivalent
Traveling Deflectometer value.
4) An engineering review of test data to isolate or
separate limits of similar deflection response for
statistical summary of data (providing the 80th
- percentile deflection) will be made.
5) Using the Traffic Index and pavement thicknesses
provided by the City, the 80th percentile deflection
values for limits of similar deflection response will
then be compared to known pavement models. This
comparison will produce overlay requirements for a
10 year design period in accordance with Caltrans
Method 356, and a service life reading (Nominal
Service Life) for the roadway studied.
6) A Registered Civil Engineer will supervise all •
operations, review all completed data and prepare
a final report with engineered recommendations for
pavement rehabilitation.
Our fee for completing the engineering analysis as outlined
within Alternate A will be a Lump Sum of $3,175.00.
A L T E R N A T E 8
(Iteme I Lh.ough 4 - Same as Alternate AI
5) Material sampling of the in -situ roadways will
involve removal of a total of twenty (20) cores
along the studied roadway to determine pavement
thickness.
6) Subgrade soil samples will be removed at ten (10)
of the coring locations to determine the in -place
moisture content. Four (4) subgrade samples which
typify the subgrade materials will be selected and
subjected to R -Value determination testing for
replacement section design.
•
LA BELLE CONSULTANTS
tr
Pace 3
City of Rancho Cucamonga
12/28/82
•
7)
Using the Traffic Index provided by the City and
existing pavement thickness dasz, determined during
coring operations, uhe 80th percentile deflection
values for limits of similar deflection response
will then be compared to known pavement models.
This comparison will produce overlay requirements
for a 10 year design period in accordence with
Caltrans Method 356, and a service life reading
(nominal Service Life) for the roadway studied.
8)
A Registered Civil Engineer will supervise all
operations, review all completed data and prepare
a final report incorporating results. of deflection
testing, pavement condition, and in -situ subgrade
conditions. Engineered recommendations for pavement
rehabilitation and replacement section design will
be provided.
Our
fee for providing the engineering analysis as outlined
in
Alternate B will be a Lump Sum of $5,500.00.
A L T E R N A T E C
• Iltem� 1 .thtengh 4 - Same as AC.tenra.te Al
5) Material sampling of the ir. -situ roadways will
involve removal of a total of twenty (20) cores
along the studied roadway to 6etermine pavement
thickness. Ten (10) cores will be selected and
subjected to laboratory evaluation for extractijn,
3 asphalt and Abson recovery of the asphalt cement,
and original and after Reclamite penetrations
(two application rates for each sample).
6) Subgrade soil samples will be removed at ten (10)
of the coring locations to determine the in• -place
moisture content. Four (4) subgrade samples which
typify the subgrade materials will be selected and
subjected to R -Value determination testing for
replacement section design.
7) Using the Traffic Index provided by the City and
rxisting pavement thickness data determined during
coring operations, the 80th percentile deflection
values for limits of similar deflection response
will then be compared to known pavement models.
This comparison will produce overlay requirements
for a 10 year design period in accordance with
Caltrans Method 356, and a service life reading
(rJaminal Service Life) for the roadway studied.
LA BELLE CONSULTANTS
I,,
Page 4
City of Rancho Cucamonga
12/28/82
8) A Registered Civil Engineer will supervise all
operations, review all completed data and prepare
a final report incorporating results of deflection
testing, pavement condition and response to -,
rejuvenation, and in -situ subgrade conditions.
Engineered recommendations for pavement rehabilitation
and replacement section design will be provided. -
Our fee for providing the engineering analysis as outlined
within Alternate C will be a Lump Sum of $9,250.00.
S n R. Marvin
V'ce ?resident
R 0659
SRM:mm
LA BELLE CONSULTANTS
I 1
U
•
•
11
CITY OF RANCHO CUCAMONGA
STAFF REPORT
DATE: February 16, 1983
TO: City Council and City Manager
FROM: Lloyd B. Hubbs, City Engineer
BY: Richard Cota, Associate Civil Engineer
[`�2O G�M01 9
sir �
C:' x
Uf. >
SUBJECT: Authorization for Award of Contract for A.C. Overlay design
services on Archibald Avenue between Fourth Street and Base
Line Road
197
The Engineering Staff requested, received and reviewed proposals from
five engineering consulting firms for A.C. overlay design services on
Archibald Avenue between Fourth Street and Base Line Road. As noted on
the listing below, C.G. Engineering is selected as the lowest bidder for
said design services.
FIRM PROPOSAL AMOUNT
C. G. Engineering $15,000.00
L. D. King, Inc. $16,600.00
Derbish, Guerra & Assoc. $18,480.00
Linville- Sanderson & Assoc. $21,300.00
Associated Engineers $24,700.00
The design services will entail plans which include necessary details
showing overlay typical sections, limits of removal and replacement as
recommended by the City's pavement evaluation consultant.
RECOMMEMDATION;
It is recommended that City Council award the contract for A.C. overlay
design services to C.G. Engineering and authorize execution of the
contract at the contract amount plus 10% for contingencies.
Res ectrully submit d,
LBII:R ;I1c
Attachments
AGREEMENT FOR ENGINEERING SERVICES
• This agreement is made and entered into this _ day of 1983,
between the CITY OF RANCHO CUCAMONGA, a Municipal Corporation,
hereinafter referred to as "CITY ", and C G ENGINEERING, duly licensed
encineers of 2627 South Waterman Avenue, Suite E, San Bernardino, CA
9208, hereinafter referred to as "ENGINEER ".
WITNESSETR
WHEREAS, the CITY has need for engineering services, consisting of
preliminary surveying, the preparation of improvement plans, estimates
and other professional services for ARCHIBALD AVUUE OVERLAY BETWEEN 4TH
STREET ACID BASE LINE ROAD, herein referred to as "PROTECT ".
WHEREAS, the CITY has invited the ENGINEER to provide required
engineering services for the CITY;
WHEREAS, the MiGINEER has specialized knowledge, training and experience
in street design, and construction;
AND, WHEREAS, the ENGINEER indicates willingness to perform engineering
services for the CITY under contract.
NOW, THEREFORE, the CITY and ENGINEER, for the considerations
hereinafter named, agree as follows:
• ARTICLE r The ENGINEER agrees to furnish and perform the various
professional services, pertinent to preparation of said Plans and Cost
Estimates as follows:
A. Preliminary and Final Design
1. Perform all necessary field surveys to establish centerline
and cuartercrown profile grades, within the project limits.
2. Provide a set of design plans and estimate for the CITY's use in
their preparation of specifications and other bidding
documents. The plans will include necessary details showing
overlay typical sections, limits of removal and replacement as
recommended by CITY's pavement evaluation consultant, any
existing surface utility features needing adjusting to grades,
and a profile of a centerline and quarter points so the CITY
Pay properly stake the project for construction.
3. Submit design plans for CITY review.
4. hake necessary plan revisions to meet CITY approval.
1 .
B. Construction
1. At the option of the CITY the ENGINEER shall provide all •
required construction staking when authorized by the City
Engineer.
2. ENGINEER shall be available for consultations during
construction on any needed plan revisions.
3. Make recommendation on contract change orders.
C. Reproduction
Original tracings shall become property of the CITY upon
completion of this contract. Costs for reproduction of plans and
specifications will be borne by the CITY.
ART?('.T,F. TT The CITY agrees to pay the ENGINEER, as compensation for the
above rimed professional services:
A. For all items listed in Section A of Article I, the CITY will
compensate the ENGINEER at the hourly rates attached as Exhibit
"A ". The total of these hourly charges shall not exceed $15,000.
B. For all items listed in Section B, of Article I, the CITY will
compensate the ENGINEER at hourly rates in accordance with said
Exhibit "A ", provided the CITY elects to authorize such work. •
C. For Section C, of Article I and for any other prints or documents
the CITY will compensate the ENGINEER in accordance with Exhibit
"A"
D. The hourly rates attached as Exhibit "A" are effective through
May 31, 1983.
E. The ENGINEER will submit with his billing, a monthly summary of the
hours worked by each classification, the hourly rate, and the total
charges for each classification.
ARTTrT,P ITT If the work is suspended indefinitely or abandoned prior to
completion of the Engineering Services set forth in this agreement, the
CITY agrees to pay the ENGINEER, at the rates set forth in Article II
above, to the time of said suspension or abandonment, which payment is to
be the full and final settlement for all the work performed by the ENGINEER
to said tire, and such work shall become the property of the CITY upon said
payment.
ARTICLE IV The PROJECT shall be completed within thirty (30) working days
attcr receiving authorization to proceed.
2
• ARTICLE V The Consultant shall hold harmless and indemnify the City, its
officer and employees and agents against liability (bodily injury,
including death and property damage) arising out of negligent acts of the
Consultant or his employees in the performance of this Agreement. --
The Consultant shall maintain combined single limit general liability
insurance covering bodily injury and property damage in an amount not less
than $300,000 or the equivalent thereof.
Phe Consultant shall furnish evidence of compliance with Worker's
Compensation laws or Certificates of Self- Insurance for employees
satisfactory to the City.
ARTTC.T,E VI All terms, conditions and provisions hereof shall inure to and
shall bind the parties herein, their successors and assigns.
IN WIT::ESS WHEREOF, the parties hereto have executed this agreement the
day and year first above written.
•
APPROVED AS TO FORK'
City Attorney, Rancho Cucamonga
RCUC -013
AGRRCARC(09)
9
CITY OF RANCHO CUCAWNGA
By:
Mayor
By:
City Clerk
C G ENGINEERING
By: � J44AV'
Presicent
C G ENGWEERING
Planning and Engineering
PREVAILING HOURLY RATES
June 1, 1982 - May 31, 1983
OFFICE
Principal Engineer
559.00 /Ilr.
Pro! act Manaaer
54.00/Hr.
Associate Engineer
50.00 /Hr.
Real Property Specialist
50.00 /14r.
Principal Planner
50.00 /Hr.
Landscape Architect
46.00 /11r.
Senior Designer
41.00 /I1r.
Planner
39.00 /Hr.
Designer- Draftsman
39.00/Hr.
Draftsman
33.00 /Hr.
Engineer Aide
29.00 /Hr.
Computer Operator
29.00 /Hr.
Clerical
17.00 /11r.
FIELD
Resident Engineer (Professional)
54.00 /Hr.
Inspector (Licensed)
48.00 /Hr.
Inspector (Unlicensed)
39.00 /11r.
Field Survey Supervisor (Licensed)
50.00 /Hr.
2 Man Survey Party
98.00 /ilr.
3 Fan Survey Party
125.00 /Hr.
Electronic Measuring Device
70.00 /Day
MISCELLANEOUS SERVICES AND EXPENSES
Mileage
0.185 /Ni.
Prints, Copying, Reproduction
and Miscellaneous Materials
Cost + 108
Cutsioe Consultant Services
Cost +108
Equipment Rental
Per Caltrans
Publications
CGFY83
2627 S. WATER \IAN AVE., SUITE E • SAN BERNARDINO, CALIFORNIA 92408.17141 8242420
0
CITY OF RANCIIO CUCAMONGA
STAFF REPORT
DATE: February 16, 1983
TO: City Council and City Manager
FROM: Lloyd B. Hubbs, City Engineer
BY: Paul A. Rougeau, Senior Civil Engineer
!, 9
ri. 54' O
F � Z
1977
SUBJECT: Agreement with San Bernardino County Flood Control District and
Lewis Development Company concerning the connection of Terra Vista
storm drains to Deer Creek
The City is requested to be a party to this agreement for the purpose of
guaranteeing to the County that it will review and approve a drainage plan for
the Terra Vista project. The City would also agree to maintain the drainage
system so approved.
This is in accordance with normal practice in that the drainage system will
become a public facility. The agreement is required by the County because of
the use of detention basins within Terra Vista to limit the flows into Deer
Creek to those for which it was designed, even though areas not originally
planned for are being drained into Deer Creek.
RECOMMENDATION
It is recommended that the agreement be approved and that the Mayor be
authorized to sign on behalf of the City.
Ily submi
jaa
Attachment
sot:rw + -;
SAN BERNARDINO COUNTY
FLOOD CONTROL DISTRICT
STANDARD CONTRACT
Ssn e.,n..amu cu..1v vluwi can vol numm
cnm,an Numne,
flooJ COn VOI U�nrlet eom.ac+neo..,.mao. a
eomndor', tm.n »Nmm.er.
MINA S. CHALY rn E,. 2848
9utlga Unit No.
Sub'Oblett No.
Fund No.
lob No.
Amoun; o +Contra.+
011
9890
691
5FOO833
7077.64
Na— . Cucamonga Creek
a aan„aa bl, m.,. m.n a r.nn.n, o.
hp(1[ovQmCnh PrnjgCL PhaGElX
molma mo folmwinq.
payment, E,tim.t.:
(Dear _ C. ,P}('h —.1 )
Aro,a.lm.l. Ambun[ Elcb
THIS CONTRACT is entered into in the State of California by and between the San Bernardino County Flood
Control District, hereafter called the District, and
Name
+ +s_Devel cpm'` r,. hereafter called DEVELOPER _
AJdr.,,
1154 N. Mountain Ave.. P. 0. Box 670 and City of Rancho r..,oamonpx _ -^
Cn 1:;nd,_C:\ 91786 9310 Baseline Rd., Suite C, P. 0. Box 807
rnon. s,nn Oal. Rancho Cucamonga, CA 91730
171ST 9.45 -0971 (714) 989 -1851
hereafter called CITY
IT IS HEREBY AGREED AS FOLLOWS:
(Use space belmv end additional bond sheets. Set forth service to be rendered, amount w be paid, manner o `payment, time
for pe rorrnance or completion, determination of satisfactory performance and cause for termination, other rams and
conditions, and arnxh plans, specifications, and addenda, if any.)
W I T N E S S E I H
kTUCREAS, the U. S. ARMY CORPS OF ENGINEERS, hereafter referred to as CORPS,
•is constructing Phase IX of the Cucamonga Creek Improvement Project (Deer Creek
Channel), hereafter referred to as PROJECT; and
45IFRE:15. DEVELOPER is developing the Terra Vista Planned Community, here-
after referred to as DEVELOPMENT, and desires to have the side drain inlets, at
PI20.11`.CT Station 327 +50 and Station 298 +00, increased in size to accommodate a portion
o: Lhu water Generated within DEVELOPMENT,
FTII:REAS, DEVELOPER has developed a master drainage plan to handle the
balance of water generated in said DEVELOPMENT.
t1Hh.REAS, DISTRTCT will, act as coordinating; agency with respect to the
incrc•n.ed sizing of the two aide drain inlets; and
1;HERF:AS, CITY will have the final responsibility for approving, making;
modification In, and maintaining drainage facilities within DEVELOPMENT,
NW!, TIICR FOM:, IT IS MVTUALL'i AGREED AS FOLL011S:
1.17 III7: Ii1.U1`I:R SHALL.:
1.1 Li: nt ineamin:, drainage into PROJECT from DEVELOPMENT on cast
si,ir of PROJECT as follows:
49
\ A823/10003
02-124S9-69? Rev. 11/90 O• q.w1 r1
Station Designed Side Drain Proposed Side Drain Cu.Ft. /Sec
321 +50 54" RCP 60" RCP 130 •
298 +00 66" RCP 72" RCP 330 _
267 +00 72" RCP No Change 339
TOTAL 799
All additional drainage from DEVELOPMENT shall be retained within
the DEVELOPMENT until the flows can be discharged into Deer Creek
at the controlled rates.
1.2 Be responsible for and assume costs for any damage to PROJECT as
result of DEVELOPER directing drainage to enter over the channel
walls.
1.3 Submit final plans with hydraulic calculations for DEVELOPMENT
to DISTRICT for review and approval by CORPS.
1.4 Submit CITY approved plans to DISTRICT for DEVELOPMENT prior
to issuance of permit for storm drain connection.
1.5 Pay DISTRICT the actual cost pins overhead for increasing the
size of the side drain inlets, presently estimated to be $7077.64.
1.6 Defend, indemnify CORPS, DISTRICT, and CITY, their officers,
agents and employees against and hold them free and harmless of
any claim arising from DEVELOPER'S failure to do any of the •
above.
2.0 DISTRICT SHALL:
2.1 Coordinate with CORPS to have the side drain inlets increased in
size as part of PROJECT.
2.2 Issue a permit to DEVELOPER to attach storm drains to side drain
inlets in acco. dance with this agreement.
3.0 CITY SHALL:
3.1 Review and approve said master drainage plan for DEVELOPMENT.
3.2 Haintain of cause to maintain at no cost to DISTRICT or CORPS,
DEVELOPMENT'S internal drainage systems including, but not
limited to, all channels, pipes, catch basins and detention
basins outside of DISTRICT right of way so that area drainage
on the east side of Deer Creek does not exceed Deer Creek
Channel inflow capacities identified supra.
* k k
* k
* k k
A823/10003
Page 2 of 3
t .
THIS AGDEE:IENT shall inure to the benefit of and be binding upon the successors
and assigns of both parties.
IN WTT3ESS WHEREOF, the parties hereto have caused this Agreement to be executed
• by their respective officials thereunto duly authorized.
* * *
* * *
I � '
'dM
SAN BERNARDINO COUNTY
FLOf1D CONTROL DISTRICT
Chaurnan, Board of Supervisors
DJ IeU_
ATl'F.STED:'
Secretary of the Flond Control District
7 _
09. 12459.691 nu. 11100
Lewis Development Co. ^r a general partnership
(state if cor ' oration, company, etc.)
BY ��.:�
(Authorized Signature)
DATED %a - fo - S 1
TITLE AUTHORIZED AGENT
1156 No. Mountain Ave.
ADDRESS Unland, CA 91136
Citv of Rancho Cucamonga
lsmv rlaoryormmn, company. erc.l
DYE— _.��__ - -_
lA ✓rnurrrce si9reeur1)
Dated
Title __
9320 Baseline Road, Suite C
Address -R,iwLho Cucamonga. CA_91Z14
Ilnv�nxvJ m 1Y nrinmairy Avl�On
Unly
1
aer�ewen for vrvice,.in9
4p.ncY AJTini,llerOr /C.n
De.e
Pp 1 9r�
A823/10003
S
4;
1i l Al O A T1111n (.TT/. A In Tl A
STAFF REPORT��,
DATE: February 16, 1983
1977
TO: City Council and City Manager
FROM: Lloyd B. Hubbs, City Engineer
BY: Barbara Krall, Engineering Technician
SUBJECT: Approval of Parcel Map 7666 - Herbert Hawkins Co., Inc. located on
the southeast corner of Foothill Blvd. and Turner Ave.
The subject map dividing 3.94 acres into 2 parcels was approved by Planninng
Commission on December 8., 1982.
Off -site improvements will be bonded for and constructed at time of building
permit issuance.
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution
approving Parcel Map 7666 and authorizing the City Clerk and City Engineer to
sign same map and forward for recordation.
Respectfully submitted,
�
LBH(B1C: jaa
Attachments
0 0 •
TENTATIVE PARCEL MAP NO 7666
2 PARCELS 4.371 ACRES JACK P: MORRIS RCE 19.48 MY 1002
T.
CJ
1r-AD'.
BLVD.
----------- --- -- ---
-- - -------
........ .. ..... .
z
0
• RESOLUTION NO. *
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, APPROVING PARCEL MAP NUMBER 7666
(TENTATIVE PARCEL MAP NO. 7666)
WHEREAS, Tentative Parcel Map Number 7666, submitted by Herbert
Hawkins Co, Inc. and consisting of 2 parcels, located on the southeast corner
of Foothill Boulevard and Turner Avenue, being a division of the north 325
feet of the west 1/2 of the northwest 1/4 of the northeast 1/4 of Section 11,
Township 1 South, Range 7 West as recorded in Book 4, Page 9, Records of San
Bernardino County was approved by the Planning Commission of the City of
Rancho Cucamonga; and
W' EREAS, Parcel Map Number 7666 is the final map of the division of
land approved as shown en said Tentative Parcel Map; and
WHEREAS, all of the requirements established as prerequisite to
approval of the final map by the City Council of said City have now been met.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Rancho Cucamonga, California, that said Parcel Map Number 7666 be and the same
is hereby approved and the City Engineer is authorized to present to the
County Recorder to be filed for record.
is PASSED, APPROVED, and ADOPTED this 16th day of February, 1983.
AYES:
NOES:
ABSENT:
ATTEST:
Lauren M. Wasserman, City Clerk
•
w
Jon D. Mikels, Mayor
CITY OF RANCHO CUCAMONGA
STAFF REPORT
DATE: February 16, 1983 F
U
TO: City Council and City Manager
FROM: Lloyd B. Hubbs, City Engineer
SUBJECT: Bond Release
Plot Plan 94 -88 - Located at 8833 Industrial Lane, Rancho Cucamonga
OWNER: Harold W. and Donna D. Sears
Goodyear Rubber Company
8833 Industrial Lane
Rancho Cucamonga, Ca 91130
Faithful Performance Bond -------------- $8,400.00
All improvements have been completed and it is recommended that City
Council authorize the release of the above mentioned bond.
Tract 9193 - located on the east side of Vineyard, south of Base Line
OWNER: William Lyon Company
• 19 Corporate Plaza
Newport Beach, CA 92660
Monumentation Bond ------------------- $1,000.00
Certification from Hall and Foreman, Inc. indicates that all final
monuments have been set and they have been paid in full.
Tract 9262 - lcoated on the east side of Vineyard, south of Base Line
OWNER: William Lyon Cmpany
19 Corporate Plaza
Newport Beach, CA 92660
Monumentation Bond ----------------- =$1,000.00
Certification from Hall and Foreman, Inc. indicates that all final
monuments have been set and they have been paid in full.
Respectfully submitted,
L BH: r
C
•
.E
CITY OF RANCHO CUCAMONGA
STAFF REPORT
DATE: February 16, 1983 F' t
c.
TO: City Council and City Manager 1977
FROM: Lloyd B. Hubbs, City Engineer
BY: Barbara Krall, Engineering Technician
SUB.IECT: Release of Lien Agreement for Construction of Sidewalk Improvements
on Milliken Avenue for Parcel Map 6585 as requested by R. C.
Industrial Company
R. C. Industrial Company is requesting the release of a Real Property
Improvement Contract and Lien Agreement for the construction of sidewalk on
Milliken Avenue in connection with their Parcel Map 6585.
These improvements have been completed. A release of lien form is attached
for City Council approval.
RECOMMENDATION
It is recommended that City Council adopt the attached resolution authorizing
the Mayor to sign said Release of Lien and authorizing the City Clerk to
record same.
Respectfully sub itted,
LBHE9K;jaa
f
rl
FATIVE PARCEL MAP
NO
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0 RESOLUTION NO. *
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAbIONGA, CALIFORNIA, RELEASING A REAL PROPERTY
IMPROVEMENT CONTRACT AND LIEN AGREEMENT FROM R.C.
INDUSTRIAL COMPANY
'AHEREAS, the City Council of the City of Rancho Cucamonga adopted
Resolution No. 81 -18 accepting a Real Property Improvement Contract and Lien
Agreement from R.C. Industrial Company; and
WHEREAS, said Real Property Improvement Contract and Lien Agreement
was recorded in Official Records of San Bernardino County, California, on
March 6, 1981 as Document No. 81- 043744; and
WHEREAS, said Real Property Contract and Lien Agreement is no longer
required.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Rancho Cucamonga does hereby release said Real Property Improvement Contract
and Lien Agreement and that the City Clerk shall cause this resolution to be
recorded in the office of the County Recorder of San Bernardino County,
California.
is PASSED, APPROVED, and ADOPTED this 16th day of February, 1983.
AYES:
NOES:
ABSENT:
ATTEST:
Lauren '1. Wasserman, City Clerk
49
Jon D. Mikels, Mayor
RECORDING REQUESTED BY .
AND
WHEN RECORDED MAIL T0: --
CITY CLERK
CITY OF RANCHO CUCAMONGA
P. 0. 8OX 801 '
RANCHO CUCAMONGA, CALIFORNIA 91730
NOTICE OF RELEASE OF LIEN
Let notice be given that the City of Rancho Cucamonga
hereby release its lien which it had caused to be recorded on the
land hereinafter more fully described, said lien having been
placed thereon by the recording of a contract between the City of
Rancho Cucamonga and R. C. Industrial Company dated March 6, 1981
and recorded as Document No. 81- 048744 recorded in Official
Records,
San Bernardino County, State of California.
The description of the land is as follows:
Parcel Map 6585 as recorded in book 62 of Parcel Maps, Pages 77 •
through 76, Records of said County.
CITY OF RANCHO CUCAMONGA, CALIFORNIA,
a municipal corporation
BY:
Jon Mikels, Mayor
STATE OF CALIFORNIA )
55
COUNTY OF SAN BERNAROIMO )
On ,19 ,before me,
the un ers� Notary Public in
and for said State, personally
appeared Jon 0. Mikels, known to me
to be the Mayor of the City of Rancho
Cucamonga, California, a municipal
corporation that executed the within
Instrument, known to me to be the
person who executed the within
Instrument, on behalf of said
municipal corporation, therein named,
and acknowledged to me that such
municipal corporation executed the
same,
WITNESS my hand and official sea
Notary Public in and for said tate •
I.
♦ I• 1'�
• II
JIi
4
JONES h VAN STOCKUM
A r"OV(OSIONA41. nW --"'ORATION
aoa nwm sl cone nrrxu-
r. sa-
uru.NO. enuronmw mo•
raase>�
5I� Att,nvyn
8
7
CiPAIF. 6CIAH' Igjll l'll.lAC SYAT,P ONLY)
CITY Of 'HANCltO CUUIfi110NL•A
ADi:9INISI RATION
JAN 24 +v:;
All F%
7t819j�1�1�ri12r31415(6
Claimant j
CLAIM AGAINST CITY OF RANCHO CUCAMONGA
TO: CITY OF RANCHO CUCAMONGA �..
City Clerk''_t
�f 9320 Base Line Road -
!! Rancho Cucamonga, CA 91701
RONALD PAYNE hereby makes claim against COUtI'fY OF SAN
1 I; BER14ARDINO for the sum of TWENTY -FIVE 'THOUSAND DOLLARS
1`($25,000.00) and makes the following statements in support of the
11 claim:
• :5. 1. Claimant's post office address is 8U88 Gardenia, Alta
16 Loma, California 91701.
11! 2. Notices concerning this claim should be sent to P. 0.
18!�Box 638, Upland, CA 91786.
19 •' 3. The date and place of the occurrence g
yivin rise Co the
20�I cla im is November 30, 1982, at 8088 Gardenia, Alta Lola,
^1 California.
4. The circumstances giving rise to this claim are as
rod town:
" 'rile County of San Bernardino, prior to its transfer of all
pr opl•i tic:: to the new city of Rancho Cucamonga negligently
' 6 :131)10 ed a tract m,lp consisting of drainage plan and grading plan
for Lilo tract icuuodiately north of claimant's property. This
it mind ind dr,ivayc plan coursed wat••r ftum rile min:: nI November
:i
1
1 30, 1902 to inundate claimant's proncr ty causing damage to the
g structure, contents and real property. Prior to the constructiJ0
3 of the improvements on the tract north of the claimant.:s real
4 property, no drainage problem had occurred.
5 5. Claimant's-injuries are to the real property, structure
6 and contents and the correction of the grading so as to stop any
7 reoccurrence of the above problem.
6 6. The names of the public employees causing the claimant's
9 injuries are unknown.
10 7. My claim as of the date of this claim is $25,000.00.
11 8. The basis for the computation of the above amount is as
12 follows:
13 (a) Correction of drainage on property, $5,000.00;
14 (b) Damage to yard, plaintings, shrubbery and soil erosion,
15 $5,000.00; •
16 (c) Damage to structure, contents, furniture and rugs, I
17 $15,000.00;
18 (e) TOTAL, $25,000.00.
19 DATED: January 21, 1983.
20 JONES L VAN STOCKUM i
A Professional Law Corporation
Q2 By
It.i yfryunrJ P. Van it n7: e:um
Att rnvy for Cloimont
Jh 1
I
6
yf.
2
• Dennis Gill
P. 0. Box 365
Mira Loma, CA 91752
January 11, 1983
Q7c� 4,
CITY
H,
N Dim lry I HA 7fOA/ A
AM JA1Y yl=•,
7j8�ylpllll�IZizISi4i5B
CITY OF RANCHO CUCAMONGA
9320 Baseline Road
Rancho Cucamonga, CA 91730
RE: October 8, 1982 collision of City vehicle and private
vehicle: 1971 Ford P/U N67318R, Location: First Street,
west of Oberlin Avenue, Claremont, CA
ATTN: CITY CLERK
This is to inform you that we have been in contact with your
insurance company, Commercial Union Insurance Companies. Since
• they do not want to claim responsibility for this accident, we
are demanding damages from you in the amount of $1,500. If we
do not hear from your offices within 10 days of receipt of this
letter, court action will be taken.
Correspondence should be directed to:
Dennis Gill
P. 0. Box 365
Mira Loma, CA 91752
Telephone contact may be made from 7:00 a.m. - 3:00 p.m. at
(714) 621 -4711 or after 5:00 p.m. at (714) 681 -2837•
Sincerely,
\Dennis E. Gill
`J
f,
U
CITY OF RANCHO CUCAMONGA
STAFF REPORT
DATE: February 16, 1983 U_
TO: City Council and City Manager
FROM: Lloyd B. iiubbs, City Engineer
BY: Michael D. Long, Assessment District 82 -1 Resident Engineer
SUBJECT: Request for approval of Assessment District 82 -1 Contract Change
Order No. 5 relating to the deletion of chain link fence top rail
Because it has been determined that chain link fence top rail is not
necessary, deletion of said top railing would result in a credit to the pro-
ject. The estimated savings is E5,280.00
RECOMMENDATION
It is recommended that City Council approve Change Order No. 5 resulting in a
savings of $5,280.00 to the subject contract.
Respectfully sub itted,
�B' aa
llA L:jaa
Attachment
0
ASSESSMENT DISTRICT 82 -1
CITY OF RANCHO CUCAMONW -
CONTRACT CHANGE ORDER NO. 5 Sheet 1 of 1
PROJECT: Assessment District 82 -1 CONTRACT NO. A.D, 82 -1
TO: 80NAOINAN -MC CAIN, INC. , Contractor.
You are hereby directed to make the herein described changes from the plans and
specifications or do the following described work not included in the plans and
specifications on this contract.
NOTE: This change order is not effective until approved by the City Council
Description of work to be done, estimate of quantities, and prices to be paid.
Segregate between additional work at contract price, agreed price and force account.
Unless otherwise stated, rates for rental of equipment cover only such time and
equipment is actually used and no allowance will be made for idle time.
Change requested by: City of Rancho Cucamonga
-The—last percentage shown is the net accumulated increase or decrease from the original
quantity in the Engineer's Estimate.
1. Delete 8800 L.F. of chain link fence top rail from the
contract at SO.60 /L.F. • 55,240100
Estimated Cost; Decrease $ 5,280.00 or Increase S
will be adjusted as follows: No Adjustment
Approved:
•
and hereby agree. If this proposal is approved, that we will provide all equipment,
furnish all materials, except as may otherwise be noted above, and perform all services
necessary for the work above specified, and will accept as full payment therefor the
prices shown above.
Approved: Date /— Zcs - SR Contractdrn.a,.n.�,i
By; ice �} Title in_.: 77
Assessment Assessment Engineer Y/ Mayor:
Date: 7 - At- Fii Date:
Attest:_
Date:
•
I*
CITY OF RANCHO CUCAMONGA
STAFF REPORT
DATE: February 16, 1963
T0: Members of the City Council and City Manager
FROM: Jack Lam, AICP, Director of Community Development
SUBJECT: RECERTIFICATION OF SCHOOL IMPACTION STATEMENTS
��cna�o"1'c
c.j s
>; z
F'a
is;;
Under the provisions of state law if a school district receives state
funds for the construction of new facilities, the recertification of
its declaration of impaction is necessary if the district is to con-
tinue receiving school fees one year from the date of state funding.
Since the Chaffey Joint Union High School District and the Alta Loma
School District are the two districts receiving state funds they
need to recertify their declarations of impaction. Please find
attached such recertification statements from both the school districts.
RECOMMENDATION:
Staff recommends acceptance and adoption of these recertification
statements pursuant to State Statutes.
JL:,7k
Attach.
submitted,
Development Director
. i'( J43is�i'i iiA 0A ;iIGH SCHOOL DIS sip i
OELI MESE g11N SIH " ONYANO. CALIFORNIA 91161 - - ,• -
^M
w;oou. row r,:; ..,._ .:...,. r: ^,.. ss.,•. :..... snev .: r.;., :: : ;., cLSa; 6..: , .. »:n . :..:-„ :ua.c o ... : _. ..sL.
January 17, 1983
Re- Certification of Declaration of Impaction
pursuant to Government Code Section 65971, Section 4 of Ordinance 30,
and pertinent parts of Ordinance 69-C of the City of Rancho Cucamonga,
the Board of Trustees of the Chaffey Joint Union High School District
submits to the City Council this notification of condition of
continued overcrowding.
The decision to file this document is based on the following:
1. Overcrowding will continue to exist due to the construction
and occuption of new dwelling units in excess of the rated
capacity of the two schools serving this area.
2. Alta Loma High School (including portables) has a rated
capacity of 2284 for a regular six - period day. The
current enrollment is 2402.
3. Etiwanda High School will have a rated capacity of 1062.
• The projected enrollment with all four grades, 9 -12, in
1984 -85 is 1174 and in 1985 -86 is 1341•
4. The District currently operates a 7- period day at Alta Lona
High School and Etiwanda High School students are housed at
Chaffey High School.
The Chaffey Joint Union High School District has reviewed all practical
and reasonable methods for mitigating overcrowded conditions. Those
adopted include:
A. Use o_ relocatable structures to the extent feasible with
District finances and site space at Alta Loma High School.
B. Application for and receipt of funds to build 95,317 square
feet (capacity 1062) first chase of school on District -owned
site in Etiwanda.
• C. will use developer fees received to construct additional
relocatables on the Etiwanda site.
D. Schccl hcundaries were realioned to the extent feasible
effective July 1, 1931. This was a major District -wida
realicnmen.t.
.7
Re- Certification of January 17, 1933
Declaration of Impaction -2-
E. Use of all local bond and state Loan revenues to the •
extent allowed by law.
F. There are currently no classrooms used for non - instructional
purposes.
All reasonable methods of mitigating the condition of overcrowding
have been evaluated and the continued collection of buildinc
developer _fees is currently the only feasible method for reducing
this condition.
There are currently no agreements between the Chaffey Joint Union Fiic_h
School District and any residential developer wherebv temocrary -use
buildings will be leased to the school district.
1. •
•
�. r
r17:
rol211
, � '.�
\'M FIFTH STHEET. 011TAN10,
CAUFUNIA 91762 -.•
:IO aT.I U. TF.l�T. E[
.: ...^ [..:•.:. .:. E:n a.::
i..:.: `: ':... .[•n Y:xE U
".n:' '�.. ri ES ".. xt ... '. .. - ._. a ^a.n_v
Mr. Jack Lam
City of Rancho Cucamonga
P. O. Box 793
Rancho Cucamonga, CA 91730
January 24, 1983 -
CI�'i
JAN
F'1 Pvd
7(gtgi;111rLLi 212141516
;4
Dear Jack:
Enclosed is a copy of the "Re- Certification of Declaration
of Impaction" as adopted by our Board of Trustees at its
regular meeting on January 17, 1983.
As you can see, it will be imperative that we continue to
collect the builders' fees, if we are to have capacity for
student generation from future residential developments.
• Also, the availability of future state funding for school
construction is highly questionable, given the financial
crises of the state.
It is hoped that City Council will approve the enclosed
document_.
Sincerely,
Mike D. Dirksen
Superintendent
MDD /lb
enc.
CERTIFICATION OF MINUTES
The Governing Board of the Alta Loma School District of •
San Bernardino County, State of California, met in regular --
session on the 7th day of February 19 8;
_, at
the usual meeting place.
MEMBERS PRESENT WERE: Book, Frost, Gallarini, Oerly and Tangeman
MEMBERS ABSENT WERE: None
The following motion was made by Member _ Oerly
seconded by Member Tangeman , and carried;
Number of members voting AYE: 5
Number of members voting NO:
...to approve Consent Calendar Items as presented.
Recertification of Declaration of Impaction.
•
STATE O.^ CALIFORNIA
COUNTY OF SAN BERNARDINO 1{ SS
I, John E. McMurtry , Secretary to the Governing Board
of the Alta Loma School District, San Bernardino County, California,
do hereby certify that the foregoing is a full, true, and correct
Copy of a motion adopted by the said Board at a _ reoular
meeting thereof held at its regular place of meeting at the time
and by the vote above stated, which motion is contained in the
minutes of the meeting of said Board.
1 l /r /�L,.
' Secretary to the Bo d
f
Established 1885
BOARD OF TRUSTEES
ROBERT S. FROST
ROBERT W. TANGEMAN
MRS. LIZ GALLARINI
MRS. SANDRA A. OERLY
JOHN C. BOOK
•
•
Alta Loma School District
9350-F Baseline Road . Past Office Boa 370 • Alu Loma, California 91701 • 714/987.0766
February 8, 1983
RECERTIFICATION OF DECLARATION OF IMPACTION
JOHN E. MCMURTRT
sup.enundw
FLOYD M. STORK
ftm. n.1/SUPPOA S.Mni
STACY NELSON
sml.as S.Mea
MILEY STRAIN
nmwum/Sp eb/ Pmj e
PUrGuant to Government Code Section 65971, Section 4, of Ordinance
Number 30, and pertinent parts of Ordinance Number 69C of the City
of Rancho Cucamonga, the Board of Trustees of the Alta Loma School
DisttiCt submits to the City Council this notification of condition
of continued overcrowding.
The decision to file this document is based on the following:
1. Overcrowding will continue to exist due to the construction
and occupation of new dwelling units in excess of the rated
capacity of the schools of the school district.
2. Carnelian Elementary School is 120 students over its rated
capacity, and Floyd M. Stork Elementary School is 225 students
over its rated capacity. These two schools are served by six
(6) leased classroom trailers and three (3) leased portable
classrooms.
3. The Alta Loma Junior High School is nearly 200 students over
capacity. It is served by six (6) lease portable classrooms
and two (2) lease classroom trailers,
The Alta Loma School District has reviewed all practical and reasonable
methods for mitigating overcrowded conditions. Those adopted include:
A. Use of relocatable structures to the extent feasible with District
financos and site space at Carnelian and Stork Elementary Schools
and Alta Loma Junior Hiqh School.
B. Application for and receipt of fund; to build 42,000 square feet
(Deer Canyon Elementary School).
C. Beginning of construction of the first phase of Hermosa Elementary
School (20,000 square feet).
Alta Loma School District • Alta Loma, California 91701
Recertification of Declaration of Impaction •
February 8, 1983
D. School boundaries were realigned to the extent feasible,
effective July 1, 1981. This was a major District -wide
realignment. They will again be readjusted with the opening
of Hermosa School.
E. Use of all local bond and state loan revenues to the extent
allowed by law.
F. There are currently no classrooms used for noninstructional
purposes.
All reasonable methods of mitigating the condition of overcrowding
have been evaluated, and the continued collection of building
developer fees is currently the only feasible method for reducing
this condition.
There are currently no agreements between the Alta Loma School District
and any residential developer whereby temporary -use buildings will
be leased to the school district. •
•
f
CLAIM FOR DAMAGES
TO PERSON OR PROPERTY
ORIGnAL FOR FILE
INSTRUCTIONS
1. Claims for death, injury to person or to personal properly must be filed not
later than 100 days after the occurrence. (Gov. Code Sec. 911.2)
2. Claims for damages to real properly must be filed not bitter than I year after the
ocemance. (Gov. Code Sec. 911.2)
3. Read entire claim before filing.
4. See page 2 for diagram upon which to Ioeate place of accident.
5. This claim form must be signed on page 2 at bottom.
6. Attach separate sheets, if necessary, to give full details. SIGN EACH SHEET.
7. Claim most be filed with City Clerk. (Gov. Code Sec. 915x)
TO' CITY OF RAI(CHO CUCAMONGA
City-
Business Address of Claimant . . City and Slate
address to which you desire notices or communications to be sent regarding this claim:
RESERVE FOR FILING STAMP
CLAIM No.._
x ? ''
CITY OF RANCNO CUCA410,NGA
AD- MINISTRA,TION
FES 9
AY PH
718191IOIllf191112A4i5 6
Age of Claimant (if natural person)
C 0 Il'< !)fl 0.* !—Pr— Y l<4 t,X 1f.�Lr5,C -A)r. f\ nFCil.ycl q e Ro vu o EA Ca.
How did DAMAGE or INJURY occur, Give full p rticulars.
or INJURY occur?
Where did DAMAGE or 1NJLIiY occur' Describe fully, and locale on diagram on reverse side of this sheet, where appropriate, give w
street anes and address and measurements from landmarks:
.Se_vr•_rrj.\ nr +(. r_ r' l�,r's C:.�v�str,ae.k�ev�. li�itk_ti nfLr_r Pl... rr.� enfhzv
What particular ACT or OMISSION do you claim caused the inji ry or damage'Qve names of City employees causing the injury or
dobs;rocteri Jr%vCis
Gr�Gre. ur � ta+ f -C In•��And .a 1'i�ur e<
What )A),IAGE INJCe I E5 do " yoo claim resulteei Give full extent of injuries or damages claimed: .
computation:
of injury nr domngc as
giving
We ESTIMATED AS :U'.'NT as far as known you clmm on acenunl of each I'em of prospective injury or damage, giving oasis of
SEE PAGE. 2 (OVER) TITTS CLAIM MUST BE SIGNED ON REVERSE SIDE
r 1'J
Insurance payments received, if any, and names of Insurance (Lmpmy:
G
of ao0dr.d or imun: lf)run —
READ CAREFULLY
Far all aecident claims place on following diagram names of .truels, including North, East, South, and West' indicate place of
accident by ';C•' and by showing house numbers of distances to at eel corners.
If City Vehicle was involved, designate by letter "A" location o: City vehicle when you first saw it. and be, "13" location of yourself
or vour vehicle when vnu first saw City vehicle; location of City vehicle at time of accident by ••A-l" and location of yourself or your
vehicle at the time of the accident by 'B -1" and the point of impret by "X."
NOTE: If diagrams below do not fit the situation, attach hereto a proper diagram signed by claimant.
FOR OTHER ACCIDENTS
7
f
J
SIDEWALK
IL
FOR AUTOMOBILE ACCIDENTS I
L
Cu
.f
� -r3Hts �
o�gnarur or cmimxm or person uurg on ms bebop giving Typed Name: y� Date
relationship o Claimant: f
p ( -�'a her,�Corblj�
I Y, Z/�3
NOTE: Presentation of a false claim is a felony (Cal. Pen. Code sec. 72) .
CLAIMS MUST DE FILED WITR CITY CLERK (GOV. CODE SEC. 915a).
• ORDINANCE NO. 190
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, APPROVING PLANNED COMMUNITY ZONE
NO. 81 -01 FOR THE DEVELOPMENT OF TERRA VISTA PLANNED
COMMUNITY GENERALLY LOCATED BETWEEN BASE LINE AND
FOOTHILL BOULEVARD ON THE NORTH AND SOUTH AND BETWEEN
ROCHESTER AND HAVEN ON THE EAST AND WEST
The City Council of the City of Rancho Cucamonga, California, does
ordain as follows:
SECTION 1: The City Council hereby finds and determines the
following:
A.
That the Planning Commission of the City of Rancho
Cucamonga, following a public hearing held in the
time and manner prescribed by law, recommends the
rezoning of the property hereinafter described, and
this City Council has held a public hearing in the
time and manner prescribed by law as duly heard and
considered said recommendation.
B.
That this rezoning is consistent with the General
•
Plan of the City of Rancho Cucamonga.
C.
That the conditions recommended by Planning
Commission Resolution No. 83 -13 (Exhibit •A•) and
attached hereto as reference, shall be complied with
as amended by City Council action as shown on Exhibit
.8 .
D.
Changes and alterations have been incorporated into
the project which mitigates significant environmental
effects to an acceptable level.
E.
The Planned Community provides for the development of
a comprehensively planned urban community within the
zone that is superior to development otherwise
allowed under alternate regulations.
F.
The Planned Community provides for development within
the zone in a manner consistent with the General Plan
and with related development and growth management
Policies of the City.
G.
The planned Community provides for construction,
improvements, or extension of transportation
facilities, public utilities, and public services
•
required by development within the zone.
Ordinance No.
Page 2
•
SECTION 2: The City Council hereby certifies the adequacy of the
final Environmental Impact Report based upon the following findings:
A. The final Environmental Impact Report has been
prepared in accordance with the California
Environmental Quality Act, the State, and local EIR
guidelines.
B. The Planning Commission has reviewed and considered
the information contained within the EIR prior to
recommending approval of the project.
SECTION 3: The City Council hereby adopts the following statement of
overriding consideration:
To the extent that the Planned Community allows the
occurrence of significant effects identified in the final
EIR without full mitigation the City Council has
identified specific economic, ecological, and social
reasons to support its action which make infeasible the
project alternatives described in the final EIR or
additional mitigation measures. The City Council finds •
that facts supporting this finding are contained in the
final EIR and the Planned Community text. Mitigation
measures have been made a condition of approval of the
Planned Community and are intended to mitigate or avoid
the significant environmental effects identified in the
final EIR. The Planned Community itself is a mitigation
measure which is intended to mitigate or avoid the
significant environmental effects of development which
could otherwise occur without a planned comprehensive
approach such as the Planned Community standards,
guidelines and regulations.
SECTION 4: The following described real property is hereby rezoned
to Plann�omnunity Zone 81 -01 and the zoning map is hereby amended
accordingly. Further, the development of said property shall be regulated by
the adopted Planned Community Text entitled "Terra Vista" and in part by the
Rancho Cucamonga Zoning Ordinance.
PC 81 -01 - Approximately 1321 acres and beginning at the
northeast corner of Haven Avenue and Foothill Boulevard
and traversing north to the Pacific Electric Railroad;
thence east to the centerline of Milliken Avenue; thence
south to the centerline of Base Line; thence east to the
centerline of Rochester; thence south to the centerline
of Foothill Boulevard; thence west to the beginning point
of Haven Avenue and Foothill Boulevard. •
Ordinance No.
Page 3
•
SECTION 5: The Mayor shall sign this Ordinance and the City Clerk
shall cause the same to be published within fifteen (15) days after -its
passage at least once in The Daily Rye or�t, a newspaper of general circulation
published in the City of Ontario and circulated in the City of
Rancho Cucamonga, California.
PASSED, APPROVED, and ADOPTED this 7th day of February, 1983.
AYES:
NOES:
ABSENT:
ATTEST:
•
Lauren M. Wasserman, City Clerk
•
Jon D. Mikels, Mayor
Ordinance No.
Page 4
•
EXHIBIT "A"
RESOLUTION NO. 83 -13
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, RECOMMENDING APPROVAL OF
PLANNED COMMUNITY ZONE NO. 81 -01 AND CERTIFICATION OF THE
FINAL ENVIRONMENTAL IMPACT REPORT TO THE CITY COUNCIL FOR
THE TERRA VISTA PLANNED COMMUNITY
WHEREAS, an application and supporting documents have been filed for
the establishment of a Planned Community Zone for approximately 1321 acres
generally located between Base Line and Foothill Boulevard on the north and
south, and Rochester and Haven on the east and west; and
WHEREAS, the Planning Commission has held several duly advertised
public hearings pursuant to Section 65854 of the California Government Code;
and
WHEREAS, the Planning Commission has reviewed and considered all •
elements of the proposed Planned Community and the associated Environmental
Impact Report.
NOW, THEREFORE, the Planning Commission of the City of Rancho
Cucamonga, California does resolve as follows:
SECTION 1: The Planning Commission recommends certification of
adequacy Tor the final Environmental Impact Report to the City Council based
on the following findings:
1. The final Environmental Impact Report has been
prepared in accordance with the California
Environmental quality Act, the State, and local EIR
guidelines.
2. The Planning Commission has reviewed and considered
the information contained within the EIR prior to
recommending approval of the project.
SECTION 2: The Planning Commission recommends adoption of this
statement of overriding considerations to the City Council:
To the extent that the Planned Community allows the
occurrence of significant effects identified in the final
EIR without full mitigation the City Council has •
identified specific economic, ecological, and social
reasons to support its action which make infeasible the
project alternatives described in the final EIR or
•
Ordinance No.
Page 5
additional mitigation measures. The Planning Commission
finds that facts supporting this finding are contained in
the final EIR and the Planned Community text. Mitigation
measures have been made a condition of approval of the
Planned Community and are intended to mitigate or avoid
the significant environmental effects identified in the
final EIR. The Planned Community itself is a mitigation
measure which is intended to mitigate or avoid the
significant environmental effects of development which
could otherwise occur without a planned comprehensive
approach such as the Planned Community standards,
guidelines and regulations.
SECTION 3: The Planning Commission recommends adoption of Planned
Community No. to the City Council based on the following findings and
recommended conditions;
FINDINGS:
1. Changes and alterations have been incorporated into
the project which mitigate significant environmental
• effects to an acceptable level.
2. The Planned Community provides for the development
of a comprehensively planned urban community within
the zone that is superior to development otherwise
allowed under alternate regulations.
3. The Planned Community provides for development
within the zone in a manner consistent with the
General Plan and with related development and growth
management policies of the City.
4. The Planned Community provides for construction,
improvements, or extension of transportation
facilities, public utilities, and public services
required by development within the zone.
CONDITIONS
Prior to final approval of the first tract map in
Terra Vista, a detailed parks and open space
implementation plan shall be prepared by the
applicant and approved by the City Council.
2. Prior to consideration and approval of any
• development in Terra Vista, mitigation measures
outlined in the final Environmental Impact Report
shall be reviewed and considered.
Ordinance No.
Page 6
•
3. All flood control and drainage structures needed for
each individual development shall be constructed by
the developer. Adequate plans showing that each
Phase can be safely and properly drained shall be
submitted to and approved by the City Engineer prior
to issuance of building permits for that phase.
4. All traffic and circulation improvements shall be
designed and installed by the developer at the
direction of the City Engineer and as needed for
each development phase.
5. Prior to final approval of any residential
development, adequate capacity shall exist or will
be provided at the time of development for public
services such as schools, sewer treatment capacity,
water availability, and police and fire protection
and utilities.
6. Prior to final approval of the first tract map, the
creation of a maintenance district or other
acceptable alternative shall be established for
Terra Vista. •
7. The developer shall encourage and facilitate bus
service and transit routes throughout Terra Vista as
development occurs. Programs such as ride sharing,
provisions for park and ride facilities, bicycle
lanes, vanpool programs, shall be considered.
B. As development phases occur, appropriate physical
improvements shall be made by the developer for
Pedestrian and bicycle routes and transit facilities
such as bus pullouts and waiting areas.
9. As each development phase occurs, berms, walls,
building attenuation shall be provided to adequately
mitigate any potential noise impacts.
10. The following standards and sections of the Planned
Community text shall be revised as follows:
A. Commercial setbacks on Special Boulevards:
Parking Area - Parking areas should be
setback at an average depth of 43 feet
from the face of curb and in no case shall
be located closer than 28 feet to the face •
of curb.
Ordinance No.
Page 7
2. Building Setback - Buildings shall be
setback at an average of 43 feet from the
face of curb and shall be no closer than
38 feet from the face of curb.
B. Residential Setbacks on Special Boulevards:
1. Building Setbacks - Two story or greater
buildings shall be setback at an average
depth of 43 feet from the face of the curb
and no less than 38 feet from the face of
curb. One story buildings shall be
setback at an average 38 feet from the
face of the curb and no less than 33' from
the face of the curb.
2. Walls - The use of walls shall be
discouraged wherever possible through the
use of side on cul -de -sacs, berming,
landscaping or building setbacks and
orientation. Where walls are needed for
• single family detached units, they shall
be setback at an average of 20 feet from
the face of the curb and no less than 18'
from the face of the curb. Where walls
are needed for clustered multiple family
units, they shall be setback a minimum of
28 feet from the face of curb.
C. The format of the residential development
standard section shall be revised to eliminate
repetition and shall use matrixes for uses and
standards.
D. The text beginning in Section VI, page 2
through 4, under the subtitle "Applicable Law
and Park Plan" shall be eliminated in its
entirety.
E. On page VI -4 of the text under "Provisions for
Meeting Park Requirements ", the statement on
public open areas should be amended to
read... "not to total less than 42.6 acres or
77% whichever is greater of the total amount
required.
E
ordinance No.
Page 8
F. The Affordable Housing provisions contained in
Section VI, shall be revised as follows:
1. The language discussing the use of
affordable programs and entitlements,
shall be partially eliminated and amended.
2. A statement shall be included that it is
the goal to provide at least fifteen
percent (15X) affordable housing in each
of the four major neighborhoods of the
Planned Community.
3. The discussion on control of windfall
profits shall be eliminated.
•
11. The above required revisions shall be submitted to
the City Planner in draft form for review and
approval within 30 days from the adoption by the
City Council. The final adopted revised text shall
be printed and submitted to the City Planner within
60 days from City Council approval. •
APPROVED AND ADOPTED THIS 26TH DAY OF JANUARY, 1983.
PLANNING COMMISSION OF THE CITY OF RANCHO CUCAMONGA
BY:
Jeffrey K� ing, Chairman
ATTEST:
Secretary of the Planning Commission
I, JACK LAM, Secretary of the Planning Commission of the City of Rancho
Cucamonga, do hereby certify that the foregoing Resolution was duly and
regularly introduced, passed, and adopted by the Planning Commission of the
City of Rancho Cucamonga, at a regular meeting of the Planning Commission held
on the 26th day of January, 1983, by the following vote -to -wit:
AYES: COMMISSIONERS: HEMPEL, STOUT, BARKER, MCNIEL, KING
NOES: COMMISSIONERS: NONE
ABSENT: COMMISSIONERS: NONE •
_ C
• EXHIBIT "B"
CITY COUNCIL ACTION OF
FEBRUARY 7, 1983 HEARING
The City Council, in addition to accepting the conditions recommended by
Planning Commission Resolution No. 83 -13, altered and added the following
items:
1. Condition 10 -E of Commission Resolution was amended by the following
action:
A. Beginning on page VI -4 of the Terra Vista Text, under the section
entitled "Provisions for Meeting Park Requirements," the first
point under the first paragraph shall be amended to require not
less than 55.8 acres of public parks, greenways and trails. The
second point under the first paragraph shall be entirely
eliminted. The, sedond, paragraph is amended to eliminate the
phrase, "and provision -of credited private open space, as discussed
below."
B. The section entitled, "Credit for Private open Space," beginning on
page VI -4 and continuing to VI -7, shall be eliminated entirely.
• C. Any other areas of the text with reference to parks shall be
amended to reflect the intent of the above changes.
2. The 13.2 acres of public park area, which is currently not shown on the
land use plan, shall be shown on the north side of Base Line, adjacent to
the east side of Deer Creek Channel.
3• The neighborhood center located on the corner of Spruce and Terra Vista
Parkway shall be eliminated, and a neighborhood center shall be
designated on the northeast corner of Haven and Base Line.
4. An expanded green area, not less than 10,000 square feet in area, shall
be provided on the southeast corner of Haven and Base Line. Further,
this area shall not be credited towards park fees.
��
2
OPPt)n TJ A XTOTIn OTTO A AgnNTlA
STAFF REPORT
DATE: January 19, 1983
TO: Members of the City Council and City Manager
FROM: Rick Gomez, City Planner
BY: Dan Coleman, Associate Planner
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SUBJECT: ENVIkONMENTAL ASSESSMENT AND PLANNED DEVELOPMENT 82 -05
1977 1
TENTATIVE TRACT 12305 ROY - A change of zone from R -3
Mu tip le Family esidentia to R -3 /PD (Multiple Family
Residential /Planned Development) for the development of 59
condominium units on 5.24 acres of land located north of
19th Street, east of Hellman Avenue. APN 201- 232 -34, 54.
Related File: PD 81 -11 (Tentative Tract 11969) - KLK
SUMMARY: This proposal is for a planned residential development
consisting of 59 condominium units on 5.24 acres of land, in conjunction
with a zone change from R -3 to R -3 /PD and the issuance of a Negative
Declaration. The Planning Commission, at its meeting of
December 8, 1982, held a duly advertised public hearing to consider the
above described project and approved the related tract map with
conditions as attached and recommended approval of the Negative
Declaration and zone change. Please find attached a copy of the
Planning Commission Staff Report, which fully describes the project.
The proposed project is consistent with all City related ordinances and
plans. The proposed overall density of 11.3 dwelling units per acre is
consistent with the General Plan designation of Medium Density
Residential (4 -14 awelling units per acre). No adverse environmental
impacts are anticipated as a result of this project.
CORRESPONDENCE: At the Planning Commission public hearing, surrounding
residents spoke both for and against this project. Residents against
this project cited increased traffic generation, lack of screening, the
potential for increased crime, and the appropriateness of condominiums
near a single family neighborhood. Those speaking in favor of the
project felt that it would be an improvement to the general character of
the neighborhood and would not have adverse impacts upon traffic or
crime. This item was advertised as a public hearing and notices were
mailed to property owners within 300 feet of the project site. Included
in the Planning Commission Staff Report is a petition of approval from
surrounding residents and a letter of opposition from a homeowner on
19th Street.
Planned Development 82 -05
January 19, 1983
Page 2
RECOMMENDATION: The Planning Commission recommends that the Gity
Council approve Planned Development 82 -05 for the above described
project through adoption of the attached ordinance and issuance of a
Negative Declaration. ,
ly
City Olanner
RG:DC:jr
I
Attachments: Planning Commission Staff Report and Resolution of
Approval
Minutes of December 8, 1982 Planning Commission Meeting
City Council Ordinance
•
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F4 14.E 7N
• ORDINANCE NO. * I
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, REZONING ASSESSOR'S PARCEL NUMBER
201 - 232 -34 & 54, LOCATED NORTH OF 19TH STREET, EAST OF
HELLMAN AVENUE, FROM R -3 TO R -3 /PD
The City Council of the City of Rancho Cucamonga, California, does
ordain as follows:
SECTION 1: The City Council hereby finds and determines the
following:
A. That the Planning Commission of the City of Rancho
Cucamonga, following a public hearing held in the
time and manner prescribed by law, recommends the
rezoning of the property hereinafter described, and
this City Council has held a public hearing in the
time and manner prescribed by law as duly heard and
considered said recommendation.
B. That this rezoning is consistent with the General
Plan of the City of Rancho Cucamonga.
• C. This rezoning will have no significant environmental
impact as provided in the Negative Declaration filed
herein.
SECTION 2: The following described real property is hereby rezoned
in the manner stated, and the zoning map is hereby amended accordingly.
Assessor's Parcel Number 201- 232 -34 & 54, approximately
5.24 acres in size and located north of 19th Street, east
of Hellman Avenue, is hereby changed from R -3 (Multiple
Family Residential) to R -3 /PD (Multiple Family
Residential /Planned Development).
PASSED, APPROVED, and ADOPTED this 19th day of January, 1983.
AYES:
NOES:
ABSENT:
• ATTEST:
Jon D. Mikels, Mayor
5
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STAFF REPORT
DATE: February 16, 1983
TO: City Council and City Manager
FRO ?1: Lloyd B. Hubbs, City Engineer
BY: Richard Cota, Associate Civil Engineer
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SUBJECT: Formation of Underground Utility District No. 1 along Archibald
Avenue from Foothill Boulevard to Church Street
At the regular meeting of November 4, 1981, the City Council adopted
Resolution No. 81 -175 establishing a prinritized list of six potential
projects for implementation of an active underground program.
Additionally, it directed the Engineering Staff to implement Project
Number One (1): Archibald Avenue from Foothill Boulevard to Base Line
Road.
Subsequent coordination between the Southern California Edison Company
(SCE) and the City Engineering Staff has resulted in the determination
that undergrounding on Archibald Avenue between Foothill Boulevard and
Church Street is a more viable project. Based on the current SCE policy
of Rule 20A allocations to cities for undergrounding purposes, our City's
currently available allocation of $328,466.00 approaches the SCE's
estimated project costs of $337,000.00. An additional $30,000 of Rule
20A allocation for 1983 is projected by SCE. The Rule 20A allocation is
generally made by March of each year.
The SCE Company will replace its existing overhead electric facilities
with underground electric facilities provided that the governing body of
our City has:
A. Determined, after consultation with SCE Company and after holding
public hearings on the subject, that such undergrounding is in the
general public interest for one or more of the following reasons:
1. Such undergrounding will avoid or eliminate an unusually heavy
concentration of overhead distribution facilities;
2. Said street or road or right -of -way is extensively used by the
general public and carries a heavy volume of pedestrian or
vehicular traffic;
3. Said street or road or right -of -way adjoins or passes through
a civir arc. oi u,,blic recreation area or an area of unusual
scenic interest to the general public.
B. Adopted a resolution creating an underground district in the area
in which both the existing and new facilities are and will be
City Council Staff Report
Underground Utility District No. 1
February 16, 1983
Page 2 •
located, requiring among other things:
1. That all existing overhead communication and electric
disribution facilities in such district shall be removed.
2. That each property owner served from such electric overhead
distribution facilities shall provide, in accordance with the
utility's rules for underground service, all electrical
facility changes on his premises necessary to receive service
from the underground facilities of the utility as soon as it
is available.
3. Authorizing the utility to discontinue its overhead service.
This provision indicates that the utility will underground distribution
lines but that the property owner within the district will bear the cost
of undergrounding within their premises.
Staff field investigations, accompanied on separate occasions by either a
SCE representative or a licensed electrician, has determined that one
property owner on the west side of Archibald Avenue will definitely be
impacted by undergrounding. This property owner has the following
options:
a. Reconnect her existing overhead facilities to existing power poles •
outside of the district, at an estimated cost of 8250.00.
b. Convert her existing overhead facilities to underground for
service connection ors Archibald Avenue, at an estimated cost of
8500.00.
It is therefore the purpose of this public hearing to determine whether
public necessity, health, safety or welfare requires the formation of
Undernrniiwl utility District No. 1 along Archibald Avenue from Foothill
Boulevard to Church Street.
RECOMMENDATION:
It is recommended that Council determine that the public necessity,
health, safety and welfare require the formation of Underground Utility
District No. 1 along Archibald Avenue from Foothill Boulevard to Church
Street and adopt the attacheo Resolution forming said District.
Respectfully submitted,
Attachments
•
I -5 -fr3 ��C•.,
RESOLUTION N0. -
•
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUC,AMONGA, CALIFORNIA, FORMING UNDERGROUND UTILITY
DISTRICT NO. 1 ALONG ARCHIBALD AVENUE FROM FOOTHILL
BOULEVARD TO CHURCH STREET
WHEREAS, a public hearing was held on February 16,1983, at the hour
of 7:30 p.m., at the Lions Park Community Center, 9161 Base Line Road, Rancho
Cucamonga, California, to determine whether the public necessity, health,
safety or welfa•e requires the formation of an underground utility district
along Archibald Avenue, from Foothill Boulevard to Church Street, Rancho
Cucamonga, California; and
WHEREAS, a notice of such hearing has been given to all affected
property owners as shown on the last equalized assessment roll and to all
utilities concerned in the manner and for the time required by law; and
WHEREAS, such hearing has been duly and regularly held and all
persons interested have been given an opportunity to be heard;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Rancho Cucamonga, as follows:
. SECTION 1. It is hereby found and determined pursuant to Rancho
Cucamonga Municipal Code Section 13.04 and the definitions contained therein
that the public necessity, health, safety and we Mare require the formation of
an underground utility district along Archibald Avenue, from Foothill
Boulevard to Church Street, Rancho Cucamonga, California, a public street
which is extensively used by the general public and carries a heavy volume of
vehicular traffic, in order to remove utility poles, overhead wires and
associated structures and to underground utilities along said portion of
Archibald Avenue.
SECTION 2. An underground utility district to be known as
Underground Utility District No, 1 is hereby established in that area along
Archibald Avenue, from Foothill Boulevard to Church Street, Rancho Cucamonga,
California, more particularly described as follows:
Those portions of Cucamonga Fruitlands, as per plat
recorded in Book 4 of Maps, Page 9; Tract No. 8796, as
per plat recorded in Book 124 of Maps, Pages 19, 20 and
21; Tract No. 5017, as per plat recorded in Book 65 of
daps, Page 4 and 5; Portion of the Southeast quarter,
Section 3, Township 1 South, Range 7 West, San Bernardino
Base and Meridian, per Assessor's Map recorded in Book
208, page 12; Tract No. 9187, as per plat recorded in
Book 127 of Maps, Pages 24, 25 and 26; Lucas and Ward
Subdivision, as per plat recorded in Book 19 of Maps,
Page 71; Parcel Map �Io. 4767, as per plat recorded in
Book 47 of Parcel :!aps, Pages 6 and 7; Portion of the
South Half of the aorthwvest quarter of the South-,,est
quarter, Section 2, Township 1 South, Range 7 West, San •
Bernardino Base and Meridian, per Assessor's Map recorded
in Book 1077, Page 34; Portion of the North Half of the
Southwest quarter of the Southwest quarter, Section 2,
Township 1 South, Range 7 West, San Bernardino Base and
Meridian, per Assessor's Map recorded in Book 1077, Page
63; Portion of the Southwest quarter, Section 2, Township
1 South, Range 7 West, San Bernardino Base and Meridian,
per Assessor's Map recorded in Book 1077, Page 64; all
records of the County Recorder of San Bernardino County,
State of California, lying within a strip of land 120.00
feet wide, the centerline of which is described as
follows:
Beginning at the intersection of the centerlines of
Foothill Boulevard and Archibald Avenue; thence Northerly
along said centerline of Archibald Avenue, a distance of
2,6255 feet to the intersection of the centerlines of
Church Street and Archibald Avenue.
The sidelines of said 120.00 foot wide strip of land
are parallel to and measured at right angles from the
above described centerline of Archibald Avenue and shall
be prolonged or shortened so as to begin from said
centerline of Foothill Boulevard and terminate at said
centerline of Church Street.
NOTE: That certain map entitled "Underground Utility •
District No. 1," which is on file in the office of the
City Clerk of the City of Rancho Cucamonga, is attached
hereto and r >de a part of this description of the
Archibald Avenue ut.4crground Utility District No. 1.
SECTION 3. All poles, overhead wires and associated overhead
structures shall be removed and underground installations made in said
underground u tility district within the following times:
a. Underground installation by Utility Companies and property owners
and reconnections not later than February 1, 1983.
b. Removal of poles, overhead wires and other associated structures
not later than May 1, 1983,
SECTION 4. The City Clerk is hereby directed to mail a copy hereof
and a copy of Municipal Code Section 13.04 to all affected property owners as
shown on the last equalized assessment roll and to all affected utilities
within ten (10) days after the adoption of this resolution.
•
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STAFF REPORT `
DATE: January 5, 1982 F -
TO: City Council and City Manager ` --- 1977
FROA: Lloyd B. Hubbs, City Engineer .
BY: Richard Cota, Associate Civil Engineer
SUBJECT: Formation of Underground Utility District No. 1 Along Archibald
Avenue from Foothill Boulevard to Church Street
At the regular meeting of November 4, 1981, the City Council adopted
Resolution No. 81 -175 (attached) establishing a prioritized list of six
potential projects for implementation of an active underground program.
Additionally, it directed the Engineering Staff to implement project
number one (1) with currently available funds. Said funds then currently
available amounted to $293,111.
On November 10, 1981, the Engineering Staff corresponded with the
Southern California Edison Company (SCE) requesting a cost and time
estimate to underground existing overhead electric distribution lines on
Archibald Avenue, from Foothill Boulevard to Base Line Road. It was
determined that SCE could budget said project for construction commencing
January, 1983, at the estimated cost of $720,000 or about $128.50 per
foot.
Subsaauent correspondence received from SCE's Area Manager suggested that
our City's first underground project be reduced in size or delayed due to
pending modifications in the allocation policy of Rule 20A and the
advancing of future funds for current projects. Consequently, the
Engineering Staff revised the limits of project number one on Archibald
f,om Fcothiil Boulevard to Church Street. This revision significantly
reduces the impact on the number of property owners required to convert
to on -site underground facilities. Existing properties on the east side
of Archibald Avenue either presently have underground facilities or are
required to underground due to current new development of said
properties. The Marlborough tract located east of Archibald Avenue and
south of Church Street fronts Archibald Avenue for approximately 676
iaot. Their tract condition to underground utilities on Archibald Avenue
•,ill help to diminsh the costs required of Rule 20A funds. Field
investi,ation has determined that only one property owner on the west
side of Archibald Avenue will be affected by the undergrounding.
According to SCE, this property owner may still retain their overhead
facilities, subject to possible meter box relocation, Behind the subject
property, power poles exist which will not be affected by the proposed
continued...
City Council Staff Report
Underground Utility District No. 1
January 5, 1983
Page 2
•
undergrounding district.
The SCE's Engineering Department is in the process of completing
engineering plans for undergrounding existing overhead power lines in
Archibald Avenue between Foothill Boulevard and Church Street. Based on
SCE's estimate of $12B.50 /linear foot, the cost to underground Archibald
Avenue between Foothill Boulevard and Church Street would be
approximtely: ($128.50/L.F.)(2625 Ft.) = $337,312.50.
Durina the writing of this Staff Report, our City received notice of our
1962 Rule 20A allocation in the amount of $35,355. A subsequent phone
conversation between our Engineering Staff and SCE's Area Manager has
determined that our City's 1983 Rule 20,4 allocation, based on the current
SCE allocation policy and generally allocated by March 1 of each year,
should be approximately 530,000 +. Therefore, as of this date our City's
available Rule 20A funds for project No. 1, excluding the projected 1983
allocation, is $328,466.
The SCE Company will, at its expense, replace its existing overhead
electric facilities with underground electric facilities provided that
the govening body of our City has:
a. Determined, after consultation with SCE Company and after holding
public hearings on the subject, that such undergrounding is in the •
general public interest; and
b. Adopted an ordinance creating an underground district in the subject
area.
The City's Engineering Staff recommends holding a public hearing in
February for the formation of Underground Utility District No. 1. If the
City Council finds that facilities shall be installed underground, the
Council may adopt a resolution (attached) declaring the formation of said
underground utility district.
RELOMMENDATION:
It is recommended that Council adopt the attached Resolution calling for
a public hearing on February 16, 1983, to determine whether public
necessity, heath, safety or welfare requires the formation of
Underground Utility District No. 1 along Archibald Avenue from Foothill
Boulevard to Church Street.
Respectfully submitted,
LBH:RC:blc
Attachments
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tL.e deveiopnent of a project and recorciend a priorit- for --.lerta for
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THER%-CRE. BE IT RES071;71 b.- he City C,sn:i'- Of 1S- Cit
of 7,..ehe C.carucrg.• that he s potential r.12ct.
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1. �A,,M�.ld A,,—.e - Foothill g..I,v.,d to Base Lloe Read.
2. Flrth:ll Rvell-•"d - ils,,n Avenue 1. Rsn,... Av.-I,.c.
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4. 'J.— LiI�—rcad - C,t,n,liau S,zc.r a -.or,rr
5. Su —z Base Line 7,rId to 19th St -eat.
C. Nirccoenzh Street Haven Avenue to West Cit'. Brourd.irv.
BE IT ALSO IESOL.L.0 [hit thc Cit,• Council directs staff to
the lallct mr ..rlcclly ova LLaClc funs:
1. Allhr',I,; l,r— - Foothill BruIrls,d to S,,I, Line Road.
A"-,,QV:;O, and thL, 41h da, of Noll-.bcr, 1991.
vy! N I Frose, X, I.el i, Is I,ba. 3r iu4s S,h 1.,,,,r
NCHIS: U.."
Apr: ;T Notif
•
"` tt CITY OF RANCHO CUCAMONGA
z /.,,, ^ti= x.n•Jon D. hlikels
•C ��ti� � C C...r,tw. nee•.
_ �, /, > Charle. J. Raquel II James C. Fmxt
Hmhard N. Dald Phillip D. S <hlgseer
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January 27, 1983
SUBJECT: Proposed Underground Utility District No. 1; Archibald Avenue from
Foothill Boulevard to Church Street
Dear Property Owner (Assessor's Parcel No. )
The Rancho Cucamonga City Council, at its meeting on January 5, 1983, adopted
the attached Resolution No. 83 -5 calling for a public hearing on February 16,
1983 at 'lie hour of 7:30 P.M. at the Lions Park Community Center, 9161 Base
Line Road, Rancho Cucamonga regarding the formation of an underground utility
district on Archibald Avenue between Foothill Boulevard and Church Street.
The hearirg gill ascertain whether the public necessity, health, safety, or
welfare requires the removal of poles, overhead wires and associated overhead
structures and the underground installation of wires and facilities for
supplying electric, communication or similar associated service in the
distrirt described within said Resolution No. 83 -5. At the hearing, all
persons interested shall be given an opportunity to be heard.
The Rancho Cucamonga Municipal Code Title 13 not only provides for Underground
Utility Districts but also requires that all property owners falling within
the boundaries of the proposed underground district. be notified by mail of the
tine and place of such hearing.
Property owners who receive their electric, communication or similar
associated servico within the proposed district directly by overhead.vires and
facilities their property and power/or tolaphone poles on Archibald
Avenue, will be required to convert their overhead connections to underground
service connections. The property owner at his expense is required to provide
the trench on private property for the conduit and cable, the backfill of the
trench and thr, service conversion from overhead to underground, More detailed
information is provided the property owner in the enclosed pamphlet entitled
"Conversion of Overhead Electrical and Communication Facilities to
Underground ",
978U BASELINE ROAD, SUITEC . POST OFFICE BOX 807 • RANCHO CUCAMO \'GA, CALIFORNIA 91770 • (714) 989.1831
4.1
Letter re Underground Utility Dist.
January 27, 1983
Page 2
Should you have any questions regarding the above, please do not hesitate to •
contact the undersigned at the Rancho Cucamonga Engneering Division 989 -1851. --
Cordially,
COME UNITY DEVELOPMENT DEPARTMENT
ENGINEERING DIVISION
Richard Cota
Associate Civil Engineer
Enc.
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STAFF REPORT
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DATE: February 16, 1963 19i
T0: Members of the City Council and City Manager
FROM: Rick Gomez, City Planner
BY: Curt Johnston, Assistant Planner
SUBJECT: ENVIRONMENTAL ASSESSMENT AND PLANNED DEVELOPMENT
82 -04 - (TENTATIVE TRACT 2091 ALVAT A
change of zone from M -1 Limited Manufacturing) to
R -3 /PD (Multi - Family /Planned Development) and the
development of 248 condominiums on 11.35 acres
located at the northeast corner of 8th Street and
Grove Avenue - APN 207- 251 -02, 03, and 13.
BACKGROUND: This proposal is for a residential planned development of
248 condominiums and a zone change from M -1 to R -3 /PD. The Planning
Commission, after reviewing the project and conducting a public hearing
on January 12, 1983, adopted Resolutions 83 -06 and 83 -07 recommending
adoption of the development proposal, zone change, and issuance of a
Negative Declaration. The Planning Commission staff report which fully
describes the project is attached for your review.
The proposed project is consistent with all applicable City ordinances
and standards. In addition, the proposed density of 22.14 units per
acre is consistent with the General Plan designation of Medium High
Residential which allows a range of 14 to 24 dwelling units per acre.
Together with the recommended conditions of approval, the project will
have no adverse environmental impacts.
CORRESPONDENCE: A neighborhood meeting was conducted early in the
review process to familiarize the surrounding property owners with the
project and identify their concerns. A detailed description of the
proposal was presented by the architect and a number of question were
answered. The general consensus of the property owners in attendance
was that the project will be a benefit to the area. At the Planning
Commission no one spoke against the project, but one letter in
opposition was received and is attached for your review (Exhibit "A").
This project has been advertised in The Daily Report newspaper as a
public hearing and 76 notices were mailed to property owners within 300
feet of the subject site. To date, one letter in favor of this project
has been received after the Planning Commission meeting of January 12
(Exhibit "B ").
Planned Development 82- 04 /Salvati
City Council Agenda
February 16, 1983
Page 2
•
RECOMMENDATION: The Planning Commission recommends that the City.
Council approve Planned Development 82 -04 for the above- described
project through adoption of the attached Ordinance and issuance of a
Negative Declaration.
Attachments: Exhibit "A" - Written Correspondence
Exhibit "B" - Written Correspondence
Planning Commission Staff Report
Planning Commission Resolutions 83 -06 and 83 -07
January 12, 1983 Planning Commission Minutes
City Council Ordinance
Ll
u
4 �!
• TO: Planning Division. R echo Cucamonga
RE: FLhNNED GEVELOPMENT 82 -04- SALVATI OF ZONE Ch A.NGE.
45
I(JENNIE C15IEF.OS) have never been so cencercd acrd this ,nartGr and
as a private citizen of which I will directly be affected since I live
adjacent to this said property. I have lived in this area for more than 15 years
and I find that vim Ier.ce has tremenously increased in this pasts years in all
the near by blocKS, 8owanm,Chaffey, 8th Street and Grove. In the past2 years we have
experienced 2 shoots out with public officials and gangs,....
My nieghbo- at SandYrS %larket (The Owner Sandy) has been Physically
assaulted .
u
HO'd CAN YOU CONSIDER INCORPORATING CONDOMINIUMS IN ONLY 11.35 Acres ? ?? ?7??
Whets Wrong with a Para or single dwelling?
Did you know this property i$ next to the rail road EAST-WEST?????????
WE HA[1 FLOOD 1107 h:ORE THAN 3 YEARS AND IT TOOK 8th Street and this area has
not been repair, Lets be realistic , would you like to live next to
the rail road tra8k5? ,
VERY CONCERED CITIZEN AND OWNER ACROSS
THIS PROsEP.TY,
CITY OF ITEM: 7-2•813 • 4>4 - 5AUI4T1
• RANCHO CLCNINIONGIA TITLE: bv-Tim lel dremaN
PLANNING DIVISION M1113IT : "_SCGv.G-
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RANCHO CUCAl/IONGA TIT,_E:LETRX ,N Fxlar cF �,R.r •
PLANNING DIVISION EXHORT.- "7" SCALE:--
'70
ORDINANCE NO. * .
• AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO _
CUCAMONGA, CALIFORNIA, REZONING ASSESSOR'S PARCEL NUMBERS
207 -251- 02,03, and 13, LOCATED AT THE NORTHEAST CORNER OF
8TH STREET AND GROVE AVENUE FROM M -1 TO R -3 /PD
The City Council of the City of Rancho Cucamonga, California, does
ordain as follows:
SECTION 1: The City Council hereby finds and determines the
following:
A. That the Planning Commission of the City of Rancho
Cucamonga, following a public hearing held in the
time and manner prescribed by law, recommends the
rezoning of the property hereinafter described, and
this City Council has held a public hearing in the
time and manner prescribed by law as duly heard and
considered said recommendation.
B. That this rezoning is consistent with the General
Plan of the City of Rancho Cucamonga.
C. This rezoning will have no significant environmental
• impact as provided in the Negative Declaration filed
herein.
SECTION 2: The following described real property is hereby rezoned
in the manner stated, and the zoning map is hereby amended accordingly.
11.35 acres of land located at the northeast corner of
8th Street and Grove Avenue, from M -1 (Limited
Manufacturing) to R -3 /PD (Multi- Family /Planned
Development).
PASSED, APPROVED, and ADOPTED this 16th day of February, 1983.
AYES:
NOES:
ABSENT:
0
on 0. Mikels, Mayor
l/
Y • •
• F. EN'fIR0 :Y N:NTAL ASSESSMENT AND CONDITIONAL USE PERMIT 82 -26 - MESSENGER -
The development of a 160,056 square foot industrial building on 8.6 acres
of land in the General Industrial Category (Subarea 8) located at the
southeast corner of Maple Place and Elm Avenue.
Senior Planner, Michael Vairin, reviewed the staff report and read into the
record the standard conditions that would apply to this project, which had
inadvertently been left out of the agenda packets, those being: A2, B1, 133,
B4, B5, B8, D1, D2, D3, E1, E8, E12, H1, H2, H3, H5, H7, I1, 23, K1, K2, K4,
N1, 01, 02, 03, 04, 05, 06, M1, M4, M5, M6, M7, M8, M11.
Chairman King opened the public hearing.
Mr. Jeff Gorden, 2501 Almond, Irvine, representing the applicant, stated he
had no comments.
There being no further comments, the public hearing was closed.
Notion: Moved by Rempel, seconded by Barker, carried unanimously, to adopt
Rsolution tlo. 83 -04 approving Conditional Use Permit No. 82 -26.
H. ENVIRONMENTAL ASSESSMENT AND PLANNED DEVELOPMENT NO. 82 -04 - SALVATI - A
• change of zone from M -1 (Limited Manufacturing) to R -3 /PD (Multiple
Family /Planned Development) and the development of 248 condominiums on
11.35 acres located at the northeast corner of 8th Street and Grove Avenue
- ON 207 - 251 -02, 03, 13.
Wrt Johnston, Assistant Planner, reviewed the staff report, stating that
there are two items of concern with this project; traffic and safety.
Further, that the Engineering Department, in order to mitigate these concerns,
recommends that the developer widen Grove Avenue in front of the project to
8th Street to a 2 -lane road in each direction.
Mr. Johnston stated that drainage is also a concern and that Paul Rougeau has
amended the conditions of approval in the staff report.
Mr. Johnston stated that a letter of opposition to this project had been
received in the ma il today.
Paul R.ou,geau called to the Commission's attention the conditions of this
project. He referred to .item H which had been handed to the Commission
cha r.,y v;g the cord it ions, and Eeg ineer in, Conditions 4, 5, 6, and 7 which refer
to Cra is age of the project. He indicated that condition 5 has been revised to
delete it from the Resolution and clarifies what should be done to the
drainage along Grove Avenue. Item 6 was also revised to further detail the
work to be done on the railroad right -of -way. Item 9 was revised to further
detail the means of handling the drainage on the eastern side of the site anj
wn:ch dill ,;ive better control during the plan approval process which will
follow.
Planning Coy- .mission Minutes -9- January 12, 1983
Commissioner Stout asked what the first condition means.
M•. Rougeau replied that it deals with the lay out of the pipes which
indicates that drainage on Grove was to be taken straight down south to
Ontario. He stated further that the pipes are silted up and must be graded
properly to work.
Commissioner Stout asked if this will take some coordination with Ontario.
Mr. Rougeau replied that it will require permits from Ontario and it looks
like the drainage structures in Ontario are adequate to take this water.
Commissioner Stout asked if Ontario would consider this an improvement.
Mr. Rougeau replied that he would think so.
Commissioner Stout asked with respect to the block wall and wrought iron use
on the corner wall that separates this from the drive -in dairy if this is a
masking type wall or something you can see through.
M^. Johnston stated that he would refer that question to the applicant.
Chairman King opened the public hearing.
M•. Tom Davis, architect for the project, stated that this would be a
continuation of the block wall on the north side of the property and will be
screened. •
Com.missicrer Stout asked if they are intending to use the wrought iron
treatment there so that they can see through.
M•. Davis replied that they will not.
Mr. Vito de Vito Francesco, P.O. Box 591, Ontario, representing owners to the
east, stated that he is in favor of the project, wishes them good luck and
hoped that they can start immediately. He indicated that the General Plan
allowed a density of 14 -24 to the acre in this area and heard something
different. He asked for clarification.
Mr. Johnston replied that the zoning in this area does allow 14 -24 to the acre
in this area.
There being no tlnrther comments, the public hearing was closed.
Commissioner Rempel stated that this project will improve the area.
Rick Gomez requested that the word curve in the Resolution be changed to read
curb.
Mbtion: Moved by Stout, seconded by Rempel, carried unanimously, to adopt
Resolution 93-07 approving the zone change from M -1 to R -2 /PD.
Planning Commission Minutes -10- January 12, 1983
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Notion: Moved by Stout, seconded by Barker, carried unanimously, to adopt
• Resolution 83 -06, approving Planned Development 82 -04 and issuing a Negative
Declaration with the amendments as discussed to the conditions.
e a • f f
I. ENVIRONMENTAL ASSESSMENT AND TENTATIVE TRACT 12237 - WOODLAND PACIFIC - A
custom lot residential development of 86 lots on 55.95 acres, located on
the east side of Hermosa, north of Hillside in the R- 1- 20,000 zone -
APN 201- 091 -03, 16, 17, 23, 30, 36 and 38.
Chairman King stepped down from discussion on this item due to a possible
conflict of interest.
Michael Vairin, Senior Planner, reviewed the staff report.
Commissioner Stout asked if there are any provisions in the conditions that
would insure that after the homes are occupied the neighbors don't go in and
out down the trees in this area.
Mr. Vairin replied that there will be restrictions in the CCBRls that will
prevent that from happening.
Vice Chairman Hempel opened the public hearing.
Mr. Richard Scott, applicant, indicated that there were two areas he had
• addressed earlier in the day with the Engineering Department. One was the
joining of the Alta Loma storm drain if their project is approved. He
requested that the Commission allow them to devater their site should the Alta
Loma Channel project not be completed and provided the Commission with
alternatives to the channel. The other item was the request for sewer
installation should some of the homeowners desire it. Further, that it
currently is planned to be served by septic tanks and cess pools and he wished
to negotiate this with the Cucamonga County Water District and the City and
not be prevented from this by a condition of approval.
Mr. Rougeau stated that this is entirely up to the Water District. Further,
that Mr. Scott thought the Commiasion might be concerned with water
conservation.
Mr. Rougeau replied that the decision to brine sewers up is up to the
Cucamonga County Water District and the Chino Basin Municipal Water District.
Mr. Scott stated their intention to join in tha Storm Drain District and
further stated that they have in process a higher density subdivision on this
piece of property in the tentative stage. He indicated that it is their
position that that tentative had been approved de facto in the past because of
lark of action with the City not agreeing to this position; however, upon
approval of this tract map with the legal time requirement, it is their
intention to •dithdraw that error project. He further indicated that
dccumontation to this effect will he provided.
Planning Commission N:,utes _11_ January 12, 1983
74' • ,
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�YL V li }!,N 11\ \ /Y!I \TYiIVi�IiR /�T
STAFF REPORT
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DATE: February 16, 1983 1977
TO: Members of the City Council and City Manager
FROM: Rick Gomez, City Planner
BY: Curt Johnston, Assistant Planner
SUBJECT: ENVIRONMENTAL ASSESSMENT AND ZONE CHANGE 82 -04
MIM MACK - A change of zone from - Limited
Agriculture)-
griculture to R -1 (Single Family Residential) for 5.25
acres of land located on the eart side of Beryl Street,
1000 feet south of 19th Street - APN 202 - 041 -15.
BACKGROUND: The Planning Commission, after reviewing this zone change
proposal and conducting a public hearing on January 12, 1983, adopted
Resolution 83 -03 recommending adoption of the above - described zone
change and issuance of a Negative Declaration. This zone change was
required as a condition of approval for Parcel Map 7215, a minor
subdivision of three parcels. Final approval and recordation of Parcel
Map 7215 is contingent upon adoption of the zone change by the City
Council.
Currently, two houses are located on the west side of the site. The
remainder of the property is vacant. The change of zone to R -1 is
consistent with the General Plan. The General Plan designates the
project site, as well as the surrounding area, as Low Density
Residential (2 -4 du /ac).
Attached is a copy of the January 12, 1983 Planning Commission staff
report and Minutes. If the City Council concurs with the zone change,
two actions are required: (1) adoption of a Negative Declaration by
Minute action; and, (2) approval of the zone change through adoption of
the attached Ordinance.
CORRESPONDENCE: A Notice of Public Hearing was published in The Daily
Report newspaper and 74 public hearing notices were mailed to property
owners within 300 feet of the subject site. To date, no correspondence
has been received either for or against this zone change.
Zone Change 82- 04 /Mim Mack
City Council Agenda
February 16, 1983
Page 2
RECOMMENDATION: The Planning Commission recommends adoption of the
attached Ordinance approving Zone Change 82 -04, and issuance of a
Negative Declaration.
RG /CJ /jr
Attachments: Planning Commission Staff Report
Planning Commission Resolution 83 -03
January 12, 1983 Planning Commission Minutes
Ordinance
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• ORDINANCE NO. *
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, REZONING ASSESSOR'S PARCEL NUMBER
202- 041 -15, LOCATED ON THE EAST SIDE OF BERYL STREET,
1000 FEET SOUTH OF 19TH STREET, FROM A -1 TO R -1
The City Council of the City of Rancho Cucamonga, California, does
ordain as follows:
SECTION 1: The City Council hereby finds and determines the
following:
A. That the Planning Commission of the City of Rancho
Cucamonga, following a public hearing held in the
time and manner prescribed ty law, recommends the
rezoning of the property hereinafter described, and
this City Council has held a public hearing in the
time and manner prescribed by law as duly heard and
considered said recommendation.
B. That this rezoning is consistent with the General
Plan of the City of Rancho Cucamonga.
• C. This rezoning will have no significant environmental
impact as provided in the Negative Declaration filed
herein.
SECTION 2: The following described real property is hereby rezoned
in the manner stated, and the zoning map is hereby amended accordingly.
5.25 acres of land located on the east side of Beryl
Street, 1000 feet south of 19th Street, from A -1 (Limited
Agriculture) to R -1 (Single Family Residential).
PASSED, APPROVED, and ADOPTED this 16th day of February, 1983.
AYES:
NOES:
ABSENT:
10
Jon D. Mikels, Mayor
-� J
CITY OF RANCHO CUCAMONGA
STAFF REPORT
• I DATE: February 16, 1983
TO: Members of the City Council and City Manager
FROM: Rick Gomez, City Planner
BY: Tim J. Beedle, Senior Planner
,p
V,_ V>
1977 1
SUBJECT: REQUEST FOR GENERAL PLAN AMENDMENT AND ZONE CHANGE -
SUBAREA 16 - A request to amend the zone designation for
the area between 6th and 4th Streets, Archibald and
Hellman Avenue (Subarea 16 - Industrial Specific Plan),
ABSTRACT: This report presents a request from adjoining property owners
to modify the land use and zoning designations on the property located
between 6th and 4th Streets from Industrial Park to predominately a
residential land use (Exhibit "A ").
BACKGROUND: Upon request by the City Council, the Planning Commission
held a public meeitng on January 26, 1983 and considered the following
options:
1. That no action to be taken by the City in regards to changing land
use designations, in which case the property can be developed in
accordance with the Specific Plan and Master Plan requirements; or,
2. forward a recommendation from the Planning Commission to the City
Council that the City initiated General Plan and Industrial Specific
Plan amendments be considered. If this option was followed, it was
recommended that the Planning Commission consider recunmending
alternative two which was presented to the Planning Commission
during the General Plan hearings on January 28, 1981 (see attached
Planning Commission Staff Report).
The Planning Commission determined that no new evidence was presented to
make changes to the existing land use designation; therefore, voted to
retain the current land use designations as outlined in the General Plan
and Industrial Specific Plan.
RECOMMENDATION: The Planning Commission recommends that the City
Council take no action and retain the current land use designations in
the area known as Subarea 16 in the Industrial Specific Plan.
R�ejfs%pec d
Rick ome
City Planner
C
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CITY OF RANCHO CUCAMONGA CaCAAio
STAFF REPORT
Y'l.h IMF
DATE: January 26, 1983 p�
TO: Members of the Planning Commission
FROM: Rick Gomez, City Planner
BY: Tim J. Beedle, Senior Planner
SUBJECT: REQUEST FOR GENERAL PLAN AMENDMENT AND ZONE CHANGE -
SUBAREA 16 - A request to amend the zone designation for
the area between 6th and 4th Streets, Archibald and
Hellman Avenue (Subarea 16 - Industrial Specific Plan).
ABSTRACT: This report presents a request from adjoining property owners
to modify the land use and zoning designations on the property located
within the area known as Subarea 16 of the Industrial Specific Plan
south of 6th Street to residential land use ;Exhibit "A "). This report
reviews the history of the matter and the options available for the
Planning Commission.
BACKGROUND: The area shown as Subarea 16 on the Industrial Specific
Tian its located south of 6th Street, north of 4th, west of Archibald and
east of Hellman Avenue. The area consists of approximately 145 acres of
relatively undeveloped land and eight older residential dwellings
scattered on the site. The entire site is shown on the General Plan and
the Industrial Specific Plan as Industrial Park designation. Permitted
uses in this category include light wholesale, light manufacturing,
office and businesses, service commercial, hotel /motel, and eating
establishments (Exhibit "B" General Plan Map, and Exhibit "C" Industrial
Specific Plan Subarea 16).
In designating this area as Industrial Park category, the Planning
Commission established the lowest level of industrial activity permitted
within the Industrial Specific Plan. Further, the building setback
along 6th and 4th Streets and Archibald is 45 feet from the face of the
curb; the most stringent permitted in the Plan. The area also has a
three to five acre park designation along 6th Street. This park will be
completed at the time development occurs in the area.
Surrounding uses to the north of the area include an existing low
density single family residential development. To the east are Subareas
4 and 5 of the Industrial Specific Plan, both planned for General
Industrial uses. South and west of the site is the city of Ontario,
where there are existing and proposed medium density residential uses
medium density residential on the west, including an existing trailer
(Exhibit "D" Surrounding Uses).
ITEf' A
General Plan Amendment Request /Subarea 16
Planning Commission Agenda
January 26, 1983
Page 2
u
PROJECT HISTORY:
During review and consideration of matters concerning this site in the
last few years, considerable discussion has occurred both before the
Planning Commission and the City Council regarding land use
designations. Briefly, the following is a summary of the matters
chronologically as they were considered.
General Plan:
During the Planning Commission consideration of the adoption of the
General Plan, they specifically addressed alternative land use scenarios
for Subarea 16. Attached to this report are the Staff Reports,
exhibits, and Minutes of the Planning Commission meeting of
January 28, 1981 regarding this matter. Initally, the draft plan
proposed the area to be designated medium density residential with a
master plan requirement. Property owners within the site requested the
City consider an option to encourage industrial and commercial
development along the borders of 4th Street and Archibald. Staff was
directed to bring forward alternatives to the Planning Commission which
looked at several matters including the provision of a light industrial
and commercial center to attract the tourist commercial activities of
the airport, a residential designation adjacent to the existing
residence north of 6th Street, appropriate interface between residential •
and the adjacent industrial uses, and a park site to be used by the area
residence.
Essentially, alternative one provided for commercial and industrial park
designations over the entire site. Alternative two provided for a
graduated residential density with low medium along 6th Street, medium
high residential within the interior portion of the site, and industrial
park and commercial adjacent to 4th Street and Archibald. The uses and
the activities are further described in the memo by staff
January 28, 1981.
During this hearing the residents north of 6th Street expressed the
following concerns:
traffic and noise impacts;
loss of property value;
land use compatibility; and,
becoming and isolated residential tract.
The Commission considered these alterntives and after much discussion
approved the reclassification of the site as industrial park with a
master plan requirement (vote was 3:2). Attached to this report as
Exhibit "F" are Minutes of the Planning Commission meeting of
January 23, 1981.
•
General Plan Amendment Request /Subarea 16
Planning Commission Agenda
January 26, 1983
Page 3
City Council Consideration: The City Council reviewed the General Plan
at their meeting of March 30, 1981 and heard similar discussion by the
public regarding this matter. City Council agreed with the Commission's
decision and voted for the designation of industrial park as a master
plan with a 4 to 5 acre park located along 6th Street (Exhibit "G ").
Master Plan: The land use designation on this site requires that the
master plan be completed which covers drainage, circulation, and phasing
of development. As a result, the property owners of this site forwarded
to the City a master plan for their consideration. On
November 10, 1981, the Planning Commission considered the approval of a
master plan. This was an advertised public hearing and notices were
mailed to property owners within 500 feet of the project boundary.
The master plan looked at overall drainage patterns and directed it away
from the north end towards the south end of the property. The Master
Plan also provided an internal circulation system which directed traffic
away from both 6th Street and Archibald (Exhibits "H" & "I "). During
their public hearing the Planning Commission heard considerable
discussion from property owners adjacent to the site regarding their
concerns. The Planning Commission approved the master plan as presented
and issued a Negative Declaration on the environmental assessment (vote
4:1).
• OPTIONS:
J
The City received a request from property owners located north of the
subarea to reconsider the land use designation in Subarea 16. The City
Council has directed that this matter be considered by the Planning
Commission with a report back to the City Council on their action.
Essentially there are two options:
No action be taken by the City in regards to changing land use
designations, in which case the property can be developed in
accordance with the Specific Plan and Master Plan requirements,
or
the Planning Commission could consider recommending to the City
Council that City initiated General Plan and Industrial
Specific Plan amendments be considered. If this option is
followed, it is recommended that the Planning Commission
consider recommending alternative two which was presented to
the Planning Commission during the General Plan hearings on
January 28, 1981.
General Plan Amendment Request /Subarea 16
Planning Commission Agenda
January 26, 1983
Page 4
RECOMMENDATION: It is recommended that the Planning Commission consider
options one and two and forward a recommendation to the City Council.
Ikspectfuily submitted,
RICK GOMEZ
City Planner
RG:TJB:jr
Attachments: Exhibit "A"
Exhibit "B"
Exhibit "C"
Exhibit "D"
Exhibit "E"
Exhibit "F"
Exhibit "G"
Exhibit "M"
Exhibit "I"
•
Letter From Residents
General Plan Land Use Plan
Industrial Specific Plan Map
Surrounding Uses
January 28, 1981 Planning Commission Staff
Report
- January 28, 1981 Planning Commission
Minutes
March 30, 1981 City Council Minutes
Master Plan Drainage
Master Plan Circulation •
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EXHIBIT A
December 12. 1982
Mayor Jon Mikels -
City of Rancho Cucamonga
P. O. Box 807
Rancho Cucamonga, Ca. 91730
Dear Mayor Mikels:
Our committee met with Rick Gomez on December 7, 1982,
regarding Sub -area 16, and we appreciated his time and
assistance in answering some of our questions.
However, we are hereby making a formal request to you
and the City Council, to change the present industrial
park designation back to its:original zoning of low
density single family residential. Our residential area
has been referred to as a "mistake ", but, it doesn't
have to be.
We feel that it is imperative to begin this change now,
and place this matter on the City Council agenda for the
second meeting in January.
The approximately 1,000 residents just North of Sixth St.
would be adversely affected by any additional industrial
park type development. we are already bordered on two
sides by businesses and totally enclosing us would only
segregate us more from the rest of the city. It seems
that we are not included in the area covered by the new
high school, possibly due to our isolation from the rest
of the city.
We are concerned about safety for our children and traffic,
since industrial parks typically have a large number of
employees per acre. We are also concerned about property
values, and with residential property expanding South
along Hellman Avenue in Ontario, and along Fourth Street,
we feel that residential development is the only logical
designation for this undeveloped parcel.
t.lany things have changed since the Master Plan meetings;
The split vote on this industrial park zoning by both
the Planning Commission and Citv Council also indicates
that they were not sure. that industrial park was the best
ansl�cr.
1.
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Page 2.
Mayor Jon Mikels
City of Rancho Cucamonga
Therefore, we ask for your help in changing this back to
some low density residential along Sixth, possibly tran-
sitioning to higher density toward Fourth Street, and a
small industrial park strip along Archibald and Fourth.
This arrangement would be fair for us, since we all pur-
chased our homes with the understanding that other homes
would be built to the South. New home buyers South of
Sixth Street would then know what will be built next to
them.
Thank you for your assistance. We will be glad to meet
with you personally to discuss this further.
Sincerely yours,
RtRN\c PN\L KILL
/dk
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cc: Lauren Wasserman, City Manager
Rick cnmez, City Planner
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EXHIBIT 8
LAND USE PLAN
RESIDENTIAL
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VERY LOW <2 DU's /Ac
MO
LOW 2 -4 DU's /AC
LOW- MEDIUM 4- 8DU's /aC
MEDIUM 4 -14 DU's /AC
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MEDIUM -HIGH 14 -24 DU's /AC
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HIGH 24- 90DU's /AC
O
MASTER PLAN REQUIRED
INDUSTRIAL
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INDUSTRIAL PARK
MO
GENERAL INDUSTRIAL
GENERAL INDUSTRIAL/
RAIL SERVED
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HEAVY INDUSTRIAL
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EXHIBIT C
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SUBAREAS
C COMMERCIAL
INDUSTRIAL PARK
GENERAL INDUSTRIAL
GENERAL INDUSTRIAL/
RAIL SERVED
M MINIMUM IMPACT
HEAVY INDUSTRIAL
COMMUNITY CENTER
FUTURE FIRE STATION'
POLICE/ SHERIFF
PARK'
CITY OF
RANCHO CUCAMONM
INDUSTRIAL AREA PLAN
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CITY OH RA NCI 10 CU'L MONG,� c
MEMORANDUN'1 ,`
DATE: January 28, 1981
TO: Nem,.bers of the Planning Commission
FROX: Barry K. Hogan, City Planner
S'uo:ECT: FOURTH AND ARCHIBALD - NORTHWEST CORNER
ABSTRACT: Contained within this memo and its attachments are staff's
suggestions for the 120 + acres of land located at the northwest cor-
ner of Archibald and 4th Street. Action on this item is requested.
DISCUSSI.OP,: As the Planning Cormission is aware, considerable dis-
cussion occurred at the last meeting on the General Plan on January
19 relative to the above - referenced item. There were various options
and plans presented by manors and people concerned with the property
in question. While the staff still feels that medium density resi-
dential is appropriate for the above - referenced property, the Cormis-
sion -.ay wish to consider the following options:
Designate the northwest corner of Archibald and 4th
Street as a 10 -acre commercial site for a neighborhood
shopping center. This shopping center could service
future residential and existing residential in the area
of Rancho Cucamonga and Ontario to the west, and the pro-
posed Ontario International Centre. Continuing along
4th and alone Archibald, a designation of industrial park
500 feet in depth may be considered. The remainder of said
property should be left in the 5 -14 du /ac designation of
medium density residential. The designation would be con-
sistent with adjacent land use in the City of Ontario at
a 5 -15 du /ac density. Additionally, there should be a park
designation within the area as was the case on the John
Blayney plan. (See exhibits.)
At the northwest corner a 10 -acre commercial site should be
indicated and the remainder of the property should be in-
dustrial park. In both of the two above - mentioned options,
the text should be amended to include the following para-
graph. "The City of Rancho Cucamonga recognizes the im-
portance of the northwest corner of Archibald Avenue and
Fourth Street and its significance as an entry to the City
and its potential to provide for uses complimentary to the
airport and nearby industrial and residential property.
The specific related uses that might occu Py sites on 4th
Street and Archibald Avenue would be hotels, motels, res-
taurants, offices, and related anciliary commercial uses.
i
Fourth and Archibald - Northwest Corner
January 28, 1981
• Page Two
Additionally, because of the significance of the northwest
corner of 4th Street and Archibald Avenue, the 120 acres
must be master planned as a single unit. Any property ow-
ner wishing to develop a portion of the property would be
required to provide a conceptual master plan for the re-
maining acreage."
RECXNEDATION
It is recommended that if the Planning Commission does not wish to de-
signate the northwest corner of Archibald and Fourth Street as medium
density residential with a park site, that the Planning Commission con-
sider the two options inaicated above.
Respectfully submitted,
'BARRY Li NOCAN'/
CITY LAN NER
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FOURTH STREET AND ARCHIBALD AVENUE SITE
EXHU31T F
Barry Hogan, City Planner, reviewed the staff report, providing the options
relative to this parcel and stating that option Mo. 1 would be the one that
is favored.
Commissioner Sceranka asked if a determination had been made by the Park
and Recreation Department that a park would be required on this property..
Mr. Hogan replied that staff would suggest that it be considered as it
was shown on the John Blayney plan to be a five -acre park.
Commissioner Sceranka asked if staff realized the close proximity of the
Cucamonga Guasti Park to this site.
Mr. Beedle replied that staff had discussed this with Mr. Holley and he
indicated that a park is needed on that particular site.
Commissioner Sceranka replied that it is difficult to know what you mean
by defining a conceptual plan for the remaining acreage.
Mr. Rogan replied that the applicant will be coming in with a plan telling
what he wants to do in specific terms. Further, that what they are trying
to do is have some thought given to the remaining project and how it will
fit. He did not mean detailing in setback and sizes, but in concept. It
would be similar to Daon project and its types of uses.
. Mr. Lam stated that in the past we have had a public hearing and people want
the best use possible for the area. Further, that there is desire on the
Planning Commission's part to come up and plan this area and have the property
owners have some voice. From the City's perspective, be stated that there
was concern. They want adequate commercial possibility and that they
have a proposal that will take in as many considerations as possible for
that land use. The other issue, he stated is how much agreement there is
on a master plan for that site. If everyone has a conflicting idea, it
will not work.
Chairman Dahl asked if it would be possible to also consider a certain
amount of use of this property.
Mr. Lam replied that the Commission will have to consider this tonight and
chat thou cnn get into the issue of master planning. Further, there is
also the possibility of more precise designation. Mr. Lam stated that the
Cummission will have to designate general uses on the plan.
Mr. Bill Patton, 210 Santiago, Newport Beach, provided the Commission with
a report and map and Indicated that he had contacted as many property
,•rs as possible rclitivo to his plan for the area. He indicated that
9_ :; of those he had contacted were in agreement and read a letter from
Lhu Ln CprManv, which had been included In the Planning Commission's
packet. He Sbewed a map as to property owners who were represented by it.
• P lann in,, Curmi.SSiun MLml.cs -Il- Janunry 28, 1981
He indicated that the Lusk Company was requesting medium and high land use
and asked that this be read into the record. •
He stated that in another letter he had requested commercial at the bottom
of the map. Mr. Patton stated that because the Planning Commission askea
for a meeting between the property owners they had to consider not only
the land use but th% long -range uses of the property. He indicated that
his faaily was in farming and was not thinking about relocating at this
tine. Further, that he was only a representative for this group, but
he felt thet there is a need to buffer the existing properties from any
new residential.
ile spoke of his thoughts ielative to 'landscaping this araa to act as
buffering.
Mr. Paul turns, representing Marlborough Homes, 2029 Century Park East,
Los Angeles, stated that they are residential developers and would like to
see as much of this area as possible designated for the medium and high
residential land use. He further stated that he felt that hey can provide
the hest opportunity to represent the need for the area and the City.
Additionally, that they would be willing to work further in coordination
of certain development. He felt that there were a majority of property
owners that can and will work together.
Commissioner Sceranka asked if Mr. Burns thought there should he any
residential on Archibald itself.
Mr. Burns replied that the only way to handle residential would be with •
some very effective noise buffering as this is a very busy street.
There was considerable discussion on the type of commercial and how the
plan wuuid be developed using the Patton concept for this area.
Commissioner Sceranka asked if what Mr. Patton was stating was that he
was not opposed to master planning as long as the land uses are as they
should be.
Mr. Patton stated that he considered what they proposed a master plan.
Mr. Burn; stated that he felt the plan:; ware similar and felt that
they will hold on to their property becauso of the time feasibility
from i commercial standpoint.
Chairman Oahl stated that thev have a design to have hotel, motel and dinner
hou:;os romin7, in. Ho thou.;'nt they will be nccd,:d much sooner than what
the whers are will in; to co;ae in. Ha felt that the services will be
nr,edcd and was not sure that thou were wen considering them.
Mr. Burn:; atnted that ti.oir markotin, people did not think commercial was
fr:,,ible on chi;; property nn any lar,;v scale.
Pl.umin:; Cw:missinn Minutrs -1.- January 28, 1931 •
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C=missicner Sceranka responded by saving that there are two problems
• with Mr. Burns' plan: one has a park and no residential and the other
plan has no park.
Mr. Lan stated that the Commission was starting to get into areas and
scope beyond the General Plan.
Cbairaa Dahl asked `1r. Lam if the present designation along Archibald
and rourth carries hotels and motels being allowable.
'Ir. Lam replied that it did.
Commissioner Sceranka asked for a brief break.
10.55 p.m. The Planning Commission recessed.
11:05 p.m. The Planning Commission reconvened.
Notion: coved by Remoel, seconded by Tolstoy, carried unanimously, to
continue beyond the 11:00 p.m. curfew.
Chairman Dahl asked if there were anv further comments and there being
none, the public hearing portion was closed.
Ccrvissioner Sceranka stated that he did net want to see a 7 -11 store
or neighborhood shopping center on this site. Further, that he has been
• wor::i r.g on industrial and thinks that is what they want Co see on that
intersection. Mr. Sceranka felt that the entire area around the border
should be designated industrial park and the area directly adjacent to
the SEC of 6th and Hellman be residential.
Commissioner Rempel stated he felt that residential designation in this
area is wrong and that an industrial park designation is what this should
be throughout. He stated further that he suggested two changes:
1. That the industrial park directly follow the property line of
anv property that abuts Archibald and come across as shown
on 4th Street.
2. Change the residential designation leaving the park to the
,medium density desi; nation. All the infield and Ilellnan Avenue
have medium density.
Cor is5iongr Kin;- asked for clarification cc rases undur the industrial part:
d,•si::nati „n.
"r. Lin rcniieri that ro>arntrnnts, banks rand land uses you would find in i
and -;uponrr.(vc commrrllal, would be the typos of uses.
that t'u:, dvn; :nit.on would nrcclude a 7 -11 type store and
,p.n•rai retail 1151^.
• PI.an;;r Co:',a, i v: i. I `li m.it r•: -15- dnnunry 29, 1451
/ Commissioner King stated that he was in agreement with the comments of
Commissioners Sceranka and Rempel of the types of uses along Fourth and
Archibald and also the industrial park designation. He further stated
that lie was not thinking of a park line the Vanguard Center, but in
terms of what he would consider supporting uses like banks and restaurants.
Mr. .Ping continued that he would like to see that block be a regionally -
oriented type of use by businesses who use the airport. Further, that
he did not think residential appropriate anywhere within the block. For
the rest, he felt that it should be more along the lines of office and
believed that some sort of master plan would be nice in getting what the
Cornission wants in developing the 120 acres.
Chairman Gael. stated that along 4th there needs to be some commercial.
Further, than the City is losing dollars every day by commercial going
into 4th and 'Iineyard. lie stated that if that were in here, he would be
for it 100`` /.. He is for light industrial business park along Archibald
and 4th. He stated he would move the commercial over to the western-
most portion of 4th instead of the intersection. Mr. Dahl stated chat
he would like to see medium or .low- medium density as buffering for the
tract across the way. The rest of the area he would like to see industrial
park of office type application and it must be master planned. He felt
that some commercial was needed along the way.
Commissioner Tolstoy stated that he has a problem with commercial on the
corner only because he doesn't know what you will get. He stated that
he would like to see industrial park and office designation because you
can then have the kind of commercial that you want. That would preclude
the 7 -11 type commercial. He stated that he is for industrial park all
the wav around the site and that he has a real problem with residential.
He stated that it is unfortunate that it is there and did not want to
perpetuate it. lie felt that it might be possible to have residential
above 6th with buffering. He felt that if residential goes across 6th,
it must be special. He felt that the entire project should be planned
all at once and for the center section he would like an industrial use
of some type.
Chairman Dahl stated that he had to agree with what Commissioner Tolstov
said and that this site should have emphasis within the General Plan text
that this is a special area.
Motion: Moved by Secranka, to take the area of Sixth Street directly to
the northeast point of the park straight down to the tip of the industrial
park designation and everything to the right. industrial park with commercial
on the corner. The property to the west of this would be medium density
residential with planned development.
Chnirman Dahl said he would .second the motion if something were put in the
test to include motel, hotel and restnuront is this would be desirable for
the City.
Pl nnnine Comm lssien Min'Ito, -I6-
January 28, 19RI
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Commissioner Sceranka stated that he would prefer not to include that
in the - 4tion.
• Commissioner Renpel stated that he would second the motion because it
will go to the high end.
Coraissioner King stated he thought it would be appropriate for commercial
industrial at Hellman and Fourth and around Sixth. He felt that it needs
office and perhaps some type of residential on the northwest quadrant of
the site.
AYES: COMMISSIONERS: Sceranka, Rempel
NOES: COMMISSIONERS: King, Tolstoy, Dahl
ABSENT: COMMISSIONERS: None -failed -
Notion: ?loved by Hempel, seconded by Sceranka, to make the whole thing an
industrial park designation.
AYES: COMMISSIONERS: Hempel, Sceranka, Tolstoy
NOES: COMMISSIONERS: King, Dahl
ABSENT: COMMISSIONERS: None -carried -
• TURNER SOIJTll OF BASE LIME
Barr, i'.o;;on, City Planner, reviewed the staff report and recommendation.
Chairman Dahl opened the public hearing portion.
Mr. Roland Sanchez, property owner, spoke of alternative housing in the
area.
There being no further comments, the public hearing portion was closed.
Notion: 'loved by Sceranka, seconded by King, carried unanimously, to go
along with a medium density designation of 5 -8 dwelling units per acre
and that n requirement of the circulation following the staff recommendation
be followed for this site.
AST. S: COM ".IISSTW:ERS: Scorsnka, King, Renpe t, Tolstoy, Dahl
NOES: COMMIRSIOPFRS: None
ABS F.t :T: CO:DIISSIONERS: None - carried-
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• Plannin{ Cor..missicn minutes -17- January 28, 1981
Ca[y Council Minutes
HITO in, IsAl
Page k"h,
• beerY Wolfe, BatauRaao ache WnIfe, diteuSHd the 1I. —in4 Cammlseton
is
wear.teim and erpr... m his r .1cut cizculatlon.
that the effect of the nation(.[ terveen nulti -bvly and sin9len(aOIIy
1a .19nafica.e.
e
Charles Toole stated ha vu M(. Alexander's partner. An mdicatN they
bad contacted the Council for a Better fmn:um[y, vhO Had ad,. then
they had no Objections to their plane. He s ry
t they feel t have
addressed all of the problems they objected to to the proicct which
but Lee. appcoved to the north.
• William Runless stated He represented the homeower'a Association of the
Centennial Home Tract. He stated they found the Proposed develapeant to
the north of ohm totally offensive and requ< tod that Council
team Ann lopmn[ We stairs that if the pro'.. Gavelom<nt to ethea♦
rth v elaafoatN, udenn wind be in favor of altwung a nigher
density az in9 t the aid*' of [heir t , he a an. Thar he
residents did not wet to be ccgtlatetyablocked to W high density.
Council discussed the parcel In V..tlon, as Wall a s.
the adjacent parcel
After such disc -lien, the follovin9 notlanvaa .oade:
Metier.: W,ad by Son Mikels t o CNn9. pen-1 Huller 1 to c .ac,.
ore all Je signs( 1Nlav -md1:m la -BI rather than low deaaltyes
1] :j. seconeed by P.locon.
prior to voting on the notion discussion regarding cir. ^alatlan and tra...c
eontinuedulth public input.
• Willlm BwyeM .,.,ad 'hay had asked the Planning fmmisalon to
them with another Way out of their tract and referred to sow of the
problems stating Heavy raise.
•
batty Wolfe, Bamaklan and Wolfe, [elated come of the problems that could
Occur When A parcel 1A split.
• N[. Antmya c n ea
ted that by d[oppinW it dome to : -B, you have rlly
tP1 t the parcelsW Hampered devel.,ce.,
• Will'— Ale.ander a Aawnfol that i ary [ +ey reduce end acted they
are trying to provide aff...blr Inuvanx.
There veiny no further rani sae, the public hearing we CIosOd.
After fnrnar dieettrion, qa p arto•is action ar.1 c (
and w WabdcaWn Ina
dl acucnlon of IRIS item vas rontlnued until April 6,1981_ Mayor Schlouac
cal le.! a brief re s at Nis Point. 111:55 Y.e.1. The much, Was called
Wok to order at aL 10 a... With all City cowui::,eroerc Present.
ll -t W�A a s [W� +r t.el" tart loca�rl 1��
t
Tim I-1-1 r Wad the Planning Cnm.ISae o n'S [ endatlan for +n InJ::a-
trlal Pntk french. on Jth itreet and Ar cWbaldev ltll med1W density [
dentc:i coach �( 4th Stmet -111 r ]Y ate Park site located vlthin the
nesl:.a Uas tY mvdentu 1.
."I Schlosser opened It. mestln9 for public N¢ing:
• Gerry V hl, a eider.( on Haytdn Stme[, related WmroWnerb oblectiem to tha
PHann t 0 Aml' nton n Ile stated Ile PmI"ashe y«sented WHICh 1s
n111I o dlt.aa+tn vuu1J tq ry [ (acorahit Nc r slCounci
t,lte:l IHat [nay sal p+rventiJ i Iw cant �:Rth [ra Council to
:tidal In trus a a to cantnnre N¢ mslJ¢nual Jevel-
nPn¢Irt[hactic r.ortb of 6tb dtwe[, re
EXHIBIT G
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e3C/ Ceun =il .hen -tes
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Page Ysne
• Wn YagnOS related his oelections In the Pla nn lnq Condo — on
nnmunn and stated he relt n ics Strial development would talcum
away trm thew[ property 'aalues.
• [r.. werske disco setl 1us roawns for cppo.in, And —tr Ll Cevela Peen :.
• Collin Yei-0 discussed his ob)e ti- and stated that their
c givy
already felt aselated ! rest of Cucaawnga. he also noted the
lack of parks in :heir awa.
• Al Bl .... nt stated thAt to felt that properly landscaped Industrial
would ber 4::e1 then single I ... ly.
• mu. None stated that an industrial development with good design stanCarde
saws Ps,tr huf:er.nq mold a very attr fire.
• road, sadcli!f Stated lu caned Live of the tan a eufh of Al Bleaaant's
pro try And indicated that either way on the zoning waa Al",HI with
hL
there being or furUer ra5penee, Myer Schlosser closed the Public Hearin,
CoupeilMa Heed`s stated he had visited the area and felt that industrial
aevelopneoe old be a ninth :.u. a deetotble w as then nigher density r s
oucti —a and s sane of the mvantAges. He said that staff would insure
that the md',,rlul dev'awrront would 4 properly designed and l,ndecapad.
Councilran ffikels agtaed and cclated why fe `felt that industrial would to
the act Is,1 Ig1. as. for 11c area.
Barry Rue- .a. s cribed G.s rope of development, landscaping and Ggugn control
to city sAoddregulre.
I et(en: Moved by B[Ldge that the entice area be designated as lndusttlal
wish A pat. All. designated on the Ilan. b¢gneed by Nlkels.
Ayes: Bridge. Mlkel s. PaloNw, Schlosser
P s: reons
Absent: forks
bticn Wlia1 .
11 -IS tgCATSCtI: 5 a 5 I...... et ..... c of Church Btreet end
A c�,1:
Tin etedle discussed the Area end the Planninq Commission [¢covmenGa[{on
to des, -mete the property far WIlce ....
feyor Schlosser gpcned the seltinq 1 r Public nearind:
• Anne Cal{n:, rg .... led that tlw council deny the Planning Camusi -1.
recow.....utron for thg lo—: :s sbn had aired prawau..1Y.
non wl:y ha felt t cif xMuld uphold be Planvnl
C— : •nda t fan S tbcY do not feel [hat of fsce use is
enc +, LWI: cwI,h rcdiur..'tn +
L:uyd •',chant ,card Cho c. .nc it to I,N,.l 1'lann m9 co .,lon n
detenn.
I, ts chorea g'm .vaned whetln•r parse wa., i Weal aplasi tick.
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LEGEND
STORM GRAN
CONCRETE SWALE
14 DIRECTION OF FLOW
0 EXISTING CATCH BASIN
PROPOSED CATCH BASIN
OOO STREET FLOW
MASTER PLAN! SUB-
- CITY OF RANCHO CUC AMONGA
i H
I
TO DEER !
CREEK
DRMdOE AREA 1
DRAINAGE AREA 2
DRAINAGE AREA S
f
DRAINAGE AREA
--'•_
DRAINAGE AREA 5
8..ed on 100 Yeer elorm •,
AREA 16 r
,� EXHIBIT 4
J.
_
Slh STREET
• iii:;:'::': ii :....::::E:i :::.::.............
f
.�:.
..
...
;
o vw
t
elh STREET
L�
LEGEND
STORM GRAN
CONCRETE SWALE
14 DIRECTION OF FLOW
0 EXISTING CATCH BASIN
PROPOSED CATCH BASIN
OOO STREET FLOW
MASTER PLAN! SUB-
- CITY OF RANCHO CUC AMONGA
i H
I
TO DEER !
CREEK
DRMdOE AREA 1
DRAINAGE AREA 2
DRAINAGE AREA S
f
DRAINAGE AREA
--'•_
DRAINAGE AREA 5
8..ed on 100 Yeer elorm •,
AREA 16 r
,� EXHIBIT 4
I
TO DEER !
CREEK
DRMdOE AREA 1
DRAINAGE AREA 2
DRAINAGE AREA S
f
DRAINAGE AREA
--'•_
DRAINAGE AREA 5
8..ed on 100 Yeer elorm •,
AREA 16 r
,� EXHIBIT 4
R.O.W.
66'
Be'
100'
120'
EXHIBIT 3
LEGEND
NAME
DESIGNATION
IM m PROPOSED STREET
LOCAL STREET
-
®BINSTREET •nd
HELLMAN AVENUE
SECONDARY ARTERIAL
_
® ARCHIBALD AVENUE
UNDIVIDED MAJOR ARTERIAL
-
4th STREET
DIVIDED MAJOR ARTERIAL
PROPOSED POINT OF ACCESS PROJECT ENTRY
MASTER PLAN
CUB-AREA +6
CITY OF RANCHO CUCAMONGA
1.
t;
R.O.W.
66'
Be'
100'
120'
EXHIBIT 3
0
lJ
CITY OF RANCHO CCCAMONGA
STAFF REPORT
DATE: February 16, 1983
TO: Members of the City Council and City Manager
FROM: Jack Lam, AICP, Director of Community Development
BY: Tim J. Beedle, Senior Planner
SUBJECT: SAN BERNARDINO HOUSING REVENUE MORTGAGE BOND - All 1355
ABSTRACT: This report presents recommendations for Council
consideration on use of the San Bernardino County housing mortgage bond
issue in Rancho Cucamonga.
BACKGROUND: As in the past two previous years, the County of San
Bernardino is acting as an issuing agent for a 48.8 million dollar
single - family mortgage revenue bond issue. In the past the City has
agreed to enter into a cooperation agreement with the County to allow
project developers in Rancho Cucamonga the advantage of using this bond
issue. This issue is authorized under AB 1355, Rules and Regulations,
which are defined in the memo from the Office of Community Development
dated January 26. Essentially this issue can be used by developers in
the incorporated and unincorporated areas of the County to finance owner
occupied housing. The issue provides for a similar structure as our own
S8 99 bond issue, however, when combined with our own issue it can
provide for greater flexibility because the bond issue can be used
outside the redevelopment area and provides more money available for
projects within the redevelopment area.
Four projects in the City of Rancho Cucamonga have applied to the County
for use of this bond issue. These include Marlborough Homes on
Archibald and Church; Terra Vista, Haven and Baseline; Sunscape, 19th
and Carnelian; Mulberry, at Vineyard and Arrow. Both Marlborovah and
Terra Vista projects are within our redevelopment mortgage bond issue.
By having the opportunity for these two bond issues in Rancho Cucamonga
two problems may occur:
1. There exists the potential for oversaturation in the
housing market of units being financed within the $75,000-
95,000 price range,and
c. Participating developers in our issue may join the County
issue and reduce their request in the Rancho Cucamonga
issue to the extent that it may seriously jeopardize our
own program.
February 16, 1983
S.B. Mtge.Bond
Page 2
0
The advice of the bond consultants is to establish an overall ceiling
number of housing units in the $75,000- 95,000 range to be eligible for
the combined bond financing of not more than 50 percent of the overall
demand in Rancho Cucamonga. (This ratio is considered acceptable by
Standard and Poor's.) They have also advised that if developers wish to
Participate within both housing programs an amount be established for a
minimum participation by Marlborough and Lewis Homes in our own issue
that will not reduce our own request to less than is necessary to make
our issue work. This concept provides for participation of the City in
the County Bond issue while avoiding any negative impaction on our bond
issue
The Bond Counsel is developing an agreement which will be available for
those developers which choose to be within both City and County bond
issues. The developer agreement would provide for the following:
An overall ceiling of housing units within both bond issues
not to exceed 50 percent of the 3 -year housing demand
within Rancho Cucamonga in the price range of $75,000-
95,000.
2. For each development project a proportional share of that
overall ceiling would be defined subject to each developer
participation level. •
3. That each developer who participates within both the City
and County bond issue not reduce their request for City
Bond money below the amount necessary to maintain a viable
project.
Should the developers wish to participate within both issues then they
would need to enter into an agreement which would become an amendment to
the program deposit agreement. If, however, the developers feel the
agreement has too many limitations on their options then they can remain
solely within the City bond issue without any new agreements.
Execution of the cooperation agreement by the way is made subject to
execution of the developer agreement by developers in both the bond
issues.
Should the Council accept this agreement concept then adoption of the
developers s resolution would authorize on of
both programs and execution of the agreement
operation
Agreement with the County of San Bernardino.
•
February 16, 1983
S.B. tltge.Bond
Page 3
41 RECOh1MENDAT ION: That the City Council adopt a Resolution authorizing
execution of developer agreements and direct execution of a cooperative
agreement with the County of San Bernardino on the use of their Housing
Bond Program in Rancho Cucamonga.
•
Respectfully submitted,'
Jack Lam, AICP
Community Development Director
JL:TBB:jk
Enclosures: Letter from Office of Community Development - 1/26/83
Adopting Resolution
Cooperation Agreement
Agreement with Developers (to be forwarded)
OFFiCc' OF COMMUNITY DEVELOPMENT
606 East Mill Street • San Bernardino, CA 92415 - (7141 383-2745
•
,7anuary 26, 1983
mr. Lauren FlasserAlan
City of Rancho Cucamonga
P.O. Box 807
Rancho cuc�rcnga, California 91730
Dear Mr. Wasse=.:an:
The County of San Bernardino is in the process of organizing a $48.8 million
si.cle family mortgage revenue bond issue to provide below- market rate rcrtca�e
funds (currently about 11%) for cwner-occupied housing developments locates i^
the County. The program will be pursuant to the rules of the Mortgage Subsi,
Bond Tae Act of 1960 and Chapters 1 -5 of Part S. of - Division 31 of the Health
and Safety code of the state of California 1!3 1355'). -)4he significant
as: ects of tl.ese two pieces of legislation whrcn tnost directly affect the
Program paramters are:
1. Three Year Re irexent: The Act stipulates that the mortgagor
cannot have arced a horse in tl:e three years prior to purchasing a
. home financed by a housing bond issue. This restriction is not
applicable if the hcvie being purchased is in a "targeted area." It
will be possible, haver, to utilise up to 10 ^s of the bond proceeds
for non -first tir, hom buyers.
2. Owner The mortgagor mast intend to reside in the have
bein:j financed with bond prccecds as his or her principal residence
of two yearS.
3. Purcha se Price: The purchase price of each residence mist not exceed
1105 oz chc average purchase price of hares in the Riverside -51n
13=-irdino Standard Metropolitan Statistical Area. If the hcme teing
financed is located in a "targeted arcs.," the purchase price can to
1201 of the average area purchasc pricc. Based on a recent average
area purchase price study, the 1103 figtso for new cons=ction would
bo approxirhately $101,893 and the 1205 figure would be apprcxir,tely
Si 11, lib. For existing homes, the 1107. figure is ap p rom ately
$94,710, and the 120; figure is appro:cir•,atcly $103,320.
4. Z:care l.iritation: Approxiratcly $20 million of the mrtcage funds
my no avail.wic with an intone limitaticn of up to 1501 0: median.
inccre. F'cr any allocation above $20 million, there will be a I-0's
o: redian inccrae limit. At this tine, from information available
frcm =ccre studies recently completed, we anticipate such inccr,:e
lir.u.ts to be approxirately 540,695 and $32,556 respectively.
5. Tarnet iu'eas: Curront target areas include census tracts
• CF
ENVIRONMENTAL
PUBLIC WORKS AGENCY
lI '
�h?J1ry
DON NEWCtD %1S
Drnu"r
The County of San Bernardino is in the process of organizing a $48.8 million
si.cle family mortgage revenue bond issue to provide below- market rate rcrtca�e
funds (currently about 11%) for cwner-occupied housing developments locates i^
the County. The program will be pursuant to the rules of the Mortgage Subsi,
Bond Tae Act of 1960 and Chapters 1 -5 of Part S. of - Division 31 of the Health
and Safety code of the state of California 1!3 1355'). -)4he significant
as: ects of tl.ese two pieces of legislation whrcn tnost directly affect the
Program paramters are:
1. Three Year Re irexent: The Act stipulates that the mortgagor
cannot have arced a horse in tl:e three years prior to purchasing a
. home financed by a housing bond issue. This restriction is not
applicable if the hcvie being purchased is in a "targeted area." It
will be possible, haver, to utilise up to 10 ^s of the bond proceeds
for non -first tir, hom buyers.
2. Owner The mortgagor mast intend to reside in the have
bein:j financed with bond prccecds as his or her principal residence
of two yearS.
3. Purcha se Price: The purchase price of each residence mist not exceed
1105 oz chc average purchase price of hares in the Riverside -51n
13=-irdino Standard Metropolitan Statistical Area. If the hcme teing
financed is located in a "targeted arcs.," the purchase price can to
1201 of the average area purchasc pricc. Based on a recent average
area purchase price study, the 1103 figtso for new cons=ction would
bo approxirhately $101,893 and the 1205 figure would be apprcxir,tely
Si 11, lib. For existing homes, the 1107. figure is ap p rom ately
$94,710, and the 120; figure is appro:cir•,atcly $103,320.
4. Z:care l.iritation: Approxiratcly $20 million of the mrtcage funds
my no avail.wic with an intone limitaticn of up to 1501 0: median.
inccre. F'cr any allocation above $20 million, there will be a I-0's
o: redian inccrae limit. At this tine, from information available
frcm =ccre studies recently completed, we anticipate such inccr,:e
lir.u.ts to be approxirately 540,695 and $32,556 respectively.
5. Tarnet iu'eas: Curront target areas include census tracts
14, 48, 49, 56, 57, 60, 65, 69, 89.02, 91.01, and 96.03.
In order to provide this financing in your jurisdiction, your city must •
forrally participate with the County in its program. The formal vehicle for
this participation is the adoption of the attached resolution and cooperation
agreement by your city council.
The County wishes to issue the bonds by the end of March. Therefore, it is
important that the Office of Cc unity Development receive four copies of the
executed cooperation agreement and the adopted resolution as soon as possible
but not later than Fehr= 28, 1983. If your city does not wish to
participate, we would appreciatewrier— letter stating your decision. Please
notify Pam Newcomb at (714) 383 -3764 if you have any questions or cannot meet
the above deadline.
Thank you.
VIPO.' -ENMAL PUBLIC FORKS AGaNCY
OFi`ICD bFS.Ci•I•IINITY DEVMPMESWr
DC9 IM.CC1•E,' Director
ON:]]
Enclosures
-,
•
•
RESOLUTION NO.
• A RESOLUTION ADOPTING A HOUSING FINANCE REVENUE BOND
PROGRAM IN COOPERATION WITH THE COUNTY OF SAN BERNARDINO
AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE FOR
AND ON BEHALF OF THE CITY A COOPERATIVE AGREEMENT BETWEEN
THE COUNTY OF SAN BERNARDINO AND THE CITY
WHEREAS, there is a shortage in the County of San Bernardino (the
"County ") and in the City of Rancho Cucamonga (the "City ") of decent, safe and
sanitary housing, particularly of housing affordable by persons in the lower
end of the purchasing spectrum, and a consequent need to encourage the
construction of homes affordable by such persons and otherwise to increase the
housing supply in the County and in the City for such persons; and
WHEREAS, the Board of Supervisors of the County has adopted Ordinance
No. 2496 declaring its intent to engage in a Housing Finance Revenue Bond
Program (the "Program ") pursuant to Chapters 1 -5 of Part 5 of Division 31 of
the Health and Safety Code of the State of California (the "Act ") and to issue
bonds pursuant to the Act to provide funds for the Program; and
WHEREAS, this Council finds and determines that it is in the best
interest of the City to adopt the Program and to consent to the operation of
the Program by the County within the geographic boundaries of the City
• pursuant to the Act.
WHEREAS, the City of Rancho Cucamonga is engaged in a Housing Finance
Program pursuant to provisions of the "Costa /Marks Act" and "The Federal
Mortgage Subsidy Bond Tax Act of 1980" and does not want to cause jeopardy to
the good health effort and completion of this program while providing the
opportunity for other forms of other housing finance revenue bond programs in
this city.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Rancho Cucamonga, as follows:
The City hereby adopts the Program for the purpose of
increasing the housing supply in the County and in
the City and consents to the operation of the Program
by the County with respect to all property located
within the geographical boundaries of the City,
provided however, that the City can execute
agreements with any developers of projects
participating in Housing Finance Bond Programs of
both the City and the County to limit problems which
may in the opinion of the City cause harm to its own
Housing Fin "nce Bond Program.
11
Resolution No.
Page 2
I*
2. The cooperative agreement, dated as of March 1, 1983,
between the County and the City the "Agreement "), a
copy of which is attached hereto as Exhibit "A ", is
hereby approved, and the Mayor and City Clerk are
hereby authorized and directed to execute and deliver
said Agreement, for and in the name and on behalf of
the City. The Mayor, with the advice and consent of
the City Attorney, is authorized to approve any
additions to or changes in the form of said Agreement
which they deem necessary or advisable, their
approval of such additions or changes to be
conclusively evidenced by the execution by the Mayor
of, said Agreement as so added to or changed. The
Mayor, with the advice and consent of the City
Attorney, is further authorized to enter into such
additional agreements with the County, execute such
other documents and take such other actions as they
may deem necessary or appropriate to carry out the
purpose and intent of the Agreement or to cooperate
in the implementation of the Program.
PASSED, APPROVED, and ADOPTED this 16th day of February, 1983.
AYES: * •
NOES:
ABSENT:
ATTEST:
Lauren M. Wasserman, City Clerk
o D. Mike -- -Mayor
•
•
COOPERATIVE AGREEMENT
THIS COOPERATIVE AGREEMENT (The "Agreement "), made and entered into
as of March 1, 1983 by and between the County of San Bernardino, a political
subdivision of the State of California (the "County "), and the City of Rancho
Cucamonga, a political subdivision of the State of California (the "City "),
W I T N E S S E T H:
WHEREAS, the County has determined to engage in a housing finance
revenue bond program pursuant to Chapters 1 -5 of Part 5 of Division 31 of the
Health and Safety Code of the State of California (the "Act ") to make or
purchase, directly or indirectly, loans to finance the construction or
acquisition of homes in the County, all as provided for in the Act (the
"Program "); and
SlHEREAS, the County, pursuant to the Act, has adopted the Program by
Ordinance No. 2496 and has determined to cooperate with the city pursuant to
the Act in the exercise of its powers under the Act for purposes of the
Program.
• NO'd, THEREFORE, in consideration of the mutual covenants hereinafter
provided, the parties hereto agree as follows:
SECTION 1: The terms used in this Agreement shall, for all purposes
of this Agreement, unless otherwise defined herein, have the meanings assigned
to such terms in the Act.
SEC TION 2: The County agrees to undertake the Program and to issue
its Residential Mortgage Revenue Bonds, Issue of 1983 (the "Bonds ") therefor
pursuant to the act as soon as practicable.
SECTION 3: That the City has executed agreements with those
development firms within projects in the city which are in both the County
program and the City program. These agreements are attached hereto as Exhibit
A
SECTION 4: The City hereby agrees to cooperate with the County in
the exercise jointly or otherwise of their powers for the purpose of financing
home mortgages purs,ant to the Act from the proceeds of the Bonds by agreeing
that the County shall exercise such powers to make or purchase home mortgages
under the Program, all as more specifically set forth in the Act, with respect
to property located within the geographic boundaries of the City.
SECTi011 5: The City agrees to undertake such further proceedings or
actions as may be necessary in order to carry out the terms and the intent of
this Agreement. Nothing in this Agreement shall prevent the County from
entering into one or more agreements with other political subdivisions within
the County, if deemed necessary and advisable to do so by the County.
i`�
SECTION 6: This Agreement may be amended by one or more supplemental
agreements executed by the County and the City at any time, except that no
such amendment or supplement shall be made which shall adversely affect the
rights of the holders of any bonds issued by the County pursuant to the Act in
connection with the Program.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed and attested by their proper officers thereunto duly authorized,
and their official seals to be hereto affixed, all as of the day first above
written.
CITY OF RANCHO CUCAMONGA
By:
Mayor
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
City Attorney
(SEAL)
COUNTY OF SAN BERNARDINO
By:
Chairman, Board of
Supervisors
ATTEST:
Deputy Clerk,
Board of Supervisors
APPROVED AS TO FORM:
Deputy County Counsel
(SEAL)
0
•
0
CITY OF RANCHO CUCAMONGA
STAFF REPORT
F
DATE: February 16, 1983
TO: Members of the City Council and City Manager
FROM: Rick Gomez, City Planner
BY: Tim J. Beedle, Senior Planner
SUBJECT: RESOLUTION RECOMMENDING THE REGIONAL COUNCIL OF
GOVERNMENTS SCAG BE DELEGATED THE AUTHORITY TO REVIEW
LOCAL HOUSIM ELEMENTS
BACKGROUND: Currently, the California Department of Housing and
Community Development reviews all local Housing Elements as required by
California Planning Law. Local jurisdictions have had numerous problems
with this reviewing agency and the City of Upland has drafted a
Resolution which requests the State Legislature appoint this authority
to the Regional Council of Governments (in our case, SCAG). This
Resolution is being reviewed by all cities within the area and was
• reviewed and approved by the Planning Commission at their meeting of
January 26, 1983. Attached is a copy of the January 26, 1983 Planning
Commission staff report.
RECO:'4MENDATION: The Planning Commission recommends that the City
Council consider adoption of the attached Resolution recommending the
review of Housing Elements be delegated to the Regional Council of
Governments.
ectfully submitted,
• 1
Gomez
Planner
RG /TJB /jr
Attachments: January 26, 1983 Planning Commission Staff Report
City Council Resolution
CJ
0
`J
1 111' 11 n ♦ r -n iln IT 11 \ 11! 1'0 n
O, C
STAFF REPORT
�• � ifs
DATE: January 26, 1963
TO: Members of the Planning Commission
FROM: Rick Gomez, City Planner
BY: Tim J. Beadle, Senior Planner
SUBJECT: RESOLUTION TO RECOMMENDING THAT THE REGIONAL COUNCIL OF
GOVERNMENTS (SCAG BE pE�EGATEp THE AUTHORITY TO REVIEW
LOCAL HOUSING ELLMENTs
BACKGROUND: California Planning Law requires that every local agency
prepare with their General Plan a Housing Element addressing housing
needs, goals and programs for providing housing in their community.
California Law Article 10.6 of the Government Code provides the legal
requirements of the Housing Element and that California Department of
Housing and Community Development (HCD) are responsible to review the
housing element for its consistency with these legal requirements.
The experience with HCD by local jurisdictions have been less than
successful (a chronology of our own experience is attached). A
Resolution is being proposed by cities within the west end area to ask
the California State Legislature to remove the review authority of
Housing Elements from HCD and to deligate that review authority with the
Regional Council of Governments, in our case Southern California
Association of Governments (SCAG). Attached to this report is a draft
Resolution which was prepared by the City of Upland and it is
essentially being reviewed for approval by all cities within the area.
ANALYSIS: Our experience with HCD has been no different than other
cities wno have forwarded their Draft Housing Element for review. After
numerous conversations, letters and changes to the Draft Housing
Element, HCD is yet to accept our Housing Element as consistent with the
State Law. In general we have had considerable problems with their
staff and their process in the following areas:
The review process has continued with them over several months and
was subject to change in the review staff who often times reflected
different outlooks on the interpretation of the Housing Element
Law.
Often times staff recaived inconsistent interpretations on various
aspects within our draft Housing Element policies and objectives.
ITEM I
AUTHORITY TO REVIEW LOCAL HOUSING ELEMENTS
PLANNING COMMISSION AGENDA
January 26, 1983
Page 2
•
3. Poor communication occurred during the long period of time during
the review process on the part of HCD. Often times there would be
months without hearing a word from the review staff.
4. HCD staff at times did not exhibit adequate comprehension of other
materials in the General Plan nor their usefulness in the
implementation of overall housing policies. In general, their lack
of comprehension tended to narrow their focus to the intention
solely of Housing Policies.
5. HCO staff exhibits a lack of realistic attitudes or perceptions of
local government operation and therefore tended to portray
unrealistic goals and objectives to be utilized at the local level
for implementing Housing Policies. This more than any other
feature tended to shade the attitude and perception of the HCD
staff.
If passed, the Resolution will be forwarded to the State Legislative
Representative and will be timely in several ways. It tells the State
that cities are having a difficulty with HCD in effectively
administrating the laws dealing with Housing Elements. This request may
reach a sympathetic ear by either the Govenor or State Legislature
during the budgetary process and reexamination of the role of State •
Agencies. By vesting the review authority to the Local Regional
Government, SCAG would be an appropriate review authority because as
part of their overall function to project growth trends and regional
needs at the local level they prepare for the city's consideration
estimates of local housing needs. This change would provide a greater
opportunity for a more direct working relationship between the local
staff and the review authority.
RECOMMENDATION: It is recommended that the Planning Commission consider
a recommendation to the City Council of adoption of the attached
Resolution.
bmitted,
RICK GOMEZ
CITY PLANNER
RG /TJD /kep
Attachement: Draft City Council Resolution
Chronology of Events on Rancho Cucamonga Housing Element
'(-1
•
CHROSOLOGY OF EVENTS P.EGARDMG REVIEW OF DRAFT HOUSING ELEMENTS
CITY OF RANCHO CUCAFIONGA
NOVE7-18ER 5, 1980 - City received conditions from OPP indicating the
ability to use 1977 housing element guidelines on preparation of housing
element.
NO' /EMBER 27, 1980 - Screen draft of housing element delivered to H.C.D.
for preliminary review.
JA.'IUFRY 6, 1981 - City staff meets with N.C.D. staff in Sacramento to
discuss matter and answer any questions. Discussion during meeting
proved to be uneventful with no indications of any problems and few
questions from H.C.D. staff which would provide for opportunity to
further clarify matters within the housing element.
JANUARY 13, 1981 - Draft of General Plan with housing element and draft
Environmental Impact Report is complete and distributed to all agencies
and public for review and commont.
FEGROARY 11, 1981 - H.C.D. completes their comments on draft housing
ele:-.ent. Generally their torments request the need to specify in more
quantitative terms goals for programs and more detailed specific policy
and programs associated to those policies. Use of 1977 housing element
guidelines were found acceptable by H.C.D.
• M,c't C!i il, 1981 - Planning Commission reviews H.C.D. comments and makes
suc slan.tial revisions to the draft housing element based upon their coai,ments.
ARIL 6. 1981 - City Council adoption of General Plan with housing element
including recommendations for revisions based upon H.C.D. comments.
AUGUST 3, 1981 - Final General Plan with housing element is returned from
p r inttng.
AUGUST d. 1981 - City forwards to H.C.D. a final copy of General Plan with
housing element. Included with this is a letter indicating changes which
were made to the housing element as a result of H.C.D. comments per their
February 11, 1981 letter.
APRIL 19 1n82 - City receives request from H.C.D. staff, who is reviewing
fina lcouq, to indicatr, need for additional information regarding imple-
mentation of affordable housing in the planned community area. City forwards
text o` planned cem:nunities, indicating affordable housing policies.
JC.'IE lY 1982 - H.C.D. forwards crnrm.ents on final housing element. Coam,ents
indicate need for substantial changes including to prepare the housing element
under the revived housirrl element law and not the 1977 housing element guide-
lines. Generally, comments from their review indicate additional necessary
changes which were not previously rientioned in the February 11. 1981 review
memo by H.C.D.
1982 - Planning rormission reviews comments from H.C.D. and decides to
consider those at the tirie it prepares the revision to the housing element
in 1981.
• RESOLUTION NO. *
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA, CALIFORNIA, RECOMMNDING TO THE LEGISLATURE OF
SAID STATE THAT RESPONSIBILITY AND AUTHORITY FOR THE
REVIEW OF LOCAL HOUSING ELEMENTS BE DELEGATED TO REGIONAL
COUNCILS OF GOVERNMENTS WHEREVER EXISTING
WHEREAS, the California State Legislature has mandated all local
jurisdictions to adopt Housing Elements to their General Plans which are
consistent with State Housing Goals and Policies; and
WHEREAS, State Legislature policy pertaining to Housing Elements, as
set forth in Article 10.6 of the Government Code, recognizes that, in carrying
out their responsibilities to facilitate the improvement and development of
housing, each local government also has the responsibility to consider
economic, environmental, fiscal factors and community goals set forth in their
General Plan and to cooperate with other local governments and the State in
addressing regional Housing needs; and
WHEREAS, the State Legislature has also noted that it is their intent
to recognize that each locality is best capable of determing what efforts are
required by it to contribute to the attainment of the State Housing goal
(ref.: Sec. 66481(c), Art. 10.6 of the Government Code); and
. WHEREAS, the State Legislature has also acknowledged their awareness
that the capacity of cities and counties to respond to State planning laws
varies due to differences of population size and density, fiscal and
administrative capabilities, and legal differences (ref.: Art. 7.5 of the
Government Code); and
WHEREAS, the State Legislature has delegated the authority and
responsibility for the review of local Housing Elements to the State
Department of Housing and Community Development (HCO); the stated legislative
purpose for such reviews being to assist local governments in preparing
Housing Elements which are consistent with State Housing goals and policies;
and
WHEREAS, the State Legislature has mandated said Department of HOD to
review draft amendments to adopted Housing Elements submitted to it and to
report their findings thereon to the affected jurisdiction within forty -five
(45) days of their receipt of such draft for their review in order to
facilitate the local jurisdiction's adoption and implementation of effective
Housing programs; and
WHEREAS, the City of Rancho Cucamonga has diligently pursued the
preparation of the Housing Element in conformance with the California State
Law Article 10.6 of the State Government Code; and
WHEREAS, the City met and discussed on several occasions with staff
of HC,D matters concerning our revisions to the Housing Element; and
Resolution No.
Page 2
•
WHEREAS, the City changed the Housing Element prior to its adoption
in order to address comments as expressed by HCD.
WHEREAS, Drafts of such amendment were duly submitted to said
Department of HCD for its review and comment in strict pursuant to
requirements for such reviews; and
WHEREAS, said Department of HCD continues to find the City's Housing
Element to be not in conformity with State Housing Element requirements, as
said Department has also found the Housing Elements of more than three hundred
and fifty (350) of the nearly five hundred (500; total jurisdictioi in
California to be not in conformity with State Housing Element requirements;
and
WHEREAS, reasons set forth by said Department of HCD for findings of
inadequacy of local Housing Elements in meeting such requirements are
perceived by a substantial number of the affected jurisdictions to be more
reflective of the subjective opinion and administrative policies of said State
Department of HCD than of the stated intent and purpose of the State
Legislature pertaining to the content and context of local Housing Elements;
and
WHEREAS, said Department of HCD has continuously failed to provide •
positive guidance to the majority of local jurisdictions to assist them in
their preparation of Housing Elements and /or appropriate amendments thereto as
so charged by the State Legislature; and
WHEREAS, the staff of said Department of HCD appears to lack the
capacity and /or capability of reviewing local Housing Elements in context with
other regional and /or local social, economic, political and environmental
factors which influence the housing policies and programs of localities; and
WHEREAS, Regional Councils of Governments (COGs), where existing, are
presently charged with responsibilities for the determination of existing and
projected regional housing needs, the development of regional air, water and
transportation plans and program, and a myriad of other comprehensive planning
projects; and
WHEREAS, said Councils of Government have consistently evidenced
their capability to evaluate local plans and programs in context with a broad
range and variety of regional and local social, economic, political and
environmental factors, and their ability to successfully work with local
jurisdictions towards the achievement of regional plans and programs; and
u
1
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Resolution No.
Page 3
WHEREAS, in light of the evidence and opinions expressed
hereinbefore, it would appear to be in the best interests of both the State
and its localities to enact legislation which would transfer responsibilities
and authority for the review of Housing Elements and /or amendments thereto,
from the State Department of Housing and Community Development to Regional
Councils of Government, where such Councils of Government exist.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City
of Rancho Cucamonga to recommend to the California State Legislature that
responsibility and authority for the review of the Housing Elements of all
cities and counties in the State of California be transferred from the State
Department of Housing and Community Development to regional Councils of
Governments, where such councils of governments exist, in order to facilitate
the adoption of Local Housing Elements consistent with State Housing goals and
policies, as expressed by the State Legislature.
PASSED, APPROVED, and ADOPTED this 16th day of February, 1983.
AYES:
NOES:
• ABSENT:
ATTEST:
Lauren M. 'Wasserman, City Clerk
9
Jon D. Mikels, Mayor
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDION )
CITY OF RANCHO CUCAMONGA )
I, LAUREN M. WASSERMAN, City Clerk in and for the City of Rancho
Cucamonga, do hereby certify that the foregoing Resolution No. * was passed at
a regular meeting of the City Council of the City of Rancho Cucamonga on the
16th day of February, 1983, by the following vote to wit:
AYES:
NOES:
ABSENT:
Robert Dougherty, City Attorney
Date
0
Lauren M. Wasserman, City Clerk •
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STAFF REPORT
February 16, 1983 jy;p
TO: City Council.
FROM: Lauren Wassermanf-f-j-�cty-County City Manager
SUBJECT: Appeal from Cal Street Light Association for
Financial Assistance.
The California City- County Street Light Association for the past 20 months has
been sponsoring organizational meetings throughout the state to disseminate
information concerning inequities in street light energy policies as
administered by the utility companies in our state. As a result of these
activities, there have been a number of major achievements and a formal means
for cities to have representation at rate increase hearings heard by the State
Public Utilities Commission. In view of the fact that the city's street
lighting bill annually is approximately three quarters of a million dollars
and steadily increasing, it seems appropriate that Rancho Cucamonga
participate in the association. It has been suggested that the minimum
assessment for any agency be not less than $500 per year.
RECOMMENDATION:
The California City - County Street Light Association will directly benefit the
City of Rancho Cucamonga. It is, therefore, recommended that the city forward
the minimum contribution of $500 to the association for annual membership.
The city engineer will be the prime contact with the association in the
future. The first assessment will not be due until the next fiscal year,
therefore, no appropriation of funds is necessary at this time. The organiza-
tion has requested, however, that we confirm membership prior to March 31,
1983.
LMW:mk
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CALIFORNIA CITY- COUNTY STREET LIGHT ASSOCIATION
"v January 26, 1983
To: City and County Managers and
Street Lighting Officials
SUBJECT: APPEAL FOR FINANCIAL SUPPORT
P.W. FILE 2355
For the past 20 months the California City - County Street Light
Association (CAL -SLA) has been sponsoring organizational meet-
ings throughout the state disseminating information concerning
inequities in street light energy policies as pract:. ced by the
utility companies in our state. The major achievements of the
Association to date have been:
1) Sponsorship of six Energy Workshops statewide, attended by
approximately 100 agencies;
2) Initiated the "Solicitation of Relief" resolution campaign,
supported by 91 cities and counties statewide, calling upon
the State of California Public Utilities Commission, League
of California Cities, and County Supervisors Association of
California to equalize interests between the public utility
companies and local governmental jurisdictions;
3) Published an article, "What is a Fair Price for Street Light-
ing?" in the October 1982 issue of Western City Magazine;
4) Sponsored a discussion session last September 30, 1982 with
representatives from the major utility companies (Pacific
Gas and Electric, Southern California Edison and San Diego
Gas and Electric) and the CAL -SLA Executive Committee in
Fresno;
5) Initiated, sponsored and lobbied passage of compromise
Resolution 13 - Resolution Related to Otility Charges and
Costs for Street Lignt.ing before th tti it'T y Cooraination
•
•
-2-
• Subcommittee, Committee on Community Development and the
84th Annual Conference of the League of California Cities
last October, over verbal and written objections from the
utility companies in California; and
6) Selected the law office of McCracken and Antone of San
Mateo to represent CAL -SLA interests during rate increases
before the State Public Utilities Commission commencing
January -28, 1983, financed by contributions from interested
and participating local agencies statewide.
Throughout this organizational period the principal concerns
of the Association have been, and continue to be: (a) obtain-
ing the lowest possible street light rates for cities and
counties; (b) demonstrating that the method of allocating
costs discriminates against street light users; (c) standardiz-
ing street light acquisition procedures for uniform applica-
tion statewide; (d) evaluating eminent domain proceedings to
recognize advantages and disadvantages of such a tool for
local use; and (e) clarification of valuation procedures of
street light systems as practiced by the utility companies.
The law firm of McCracken and Antone will commence its work
• by focusing its initial efforts on realizing the lowest
Possible street light rates for local agencies from forth-
coming rate increases and complete a rate structure analysis
to determine if the present method of allocating costs is
equitable.
However, the Association's record of steady progress is in
jeopardy. To date only $21,625 of the 1982 -83 budget of
$75,000 has been collected. There are enough funds on deposit
to begin the initial tasks, but these monies are insufficient
to complete them. I request you consider the possibility of
your agency becoming a financial supporter of the Street
Light association. Only with your financial backing can the
CAL -SLA hope to follow through with its work program. Indi-
vidually, none of our local governmental units can match the
resources that the utility companies can bring to bear on any
one of us, on whatever issue. Collectively, however, we can
begin to equalize these interests.
To assist you in your evaluation, attached is Financial Con-
cept ;2 (Attachment 81) which is the basic formula used to
determine assessments, with a Membership confirmation Form.
i i
-3-
Assessments received
to date
have ranged
from $150
to $4,000,
depending on the financial ability of the
agency.
Should you
have any questions concerning the basic formula,
don't hesi-
tate to call any one
of the
following Executive
committee
members:
Russell Hamm
City of
Santa Rosa
(707)
576 -5358
Ramon A. Aguilar
City of
Redwood City
(415)
369 -6251
Ext. 270
Artie Wingfield
Citv of
-resno
(209)
488 -1240
Ric Gonzales
City of
Long Beach
(213)
590 -6147
Dave Wood
City of
San Diego
(714)
236 -5505
Without additional revenues the Association will be unable to
pursue an effective strategy on behalf of all local govern-
ments before the State Public Utilities Commission. Without
such intervention, utility company interests will continue
to rec ive a more substantive hearing than our own, and
Muni c' Fpal buds s will continue to reflect that discrepancy.
Sinc e17 �ir
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JA&ES M. SMITH
ClAy Manager
7tachments
c: Executive Committee
A
•
•
• FINANCIAL .O.iC =?'.' 2
7h: z recommendation assumes t.'Aat the f_st =AL -SL;, budget _.
'r_ll be f -r 575,000. "he .Association assessment would be based on each
acency's street light total as - a oercentace of the total Association
-t.eet _ -_ - tOta3.. ?inallY, the last assumption to be made mder this
alt=_rnati7e .s t^at the Tinimum assessment per agency can be no less
than 5500 ter vear.
+= an .xamcle cf :tow t.`us alte ^alive would work, we wy_1 assume -bat
al: 67 agenc_as who oar-icipated in Survey Questdonnaire #1 are con -
.r_ut-.a aembers to the CAL -SLA for the 1982 -a3 fiscal year. AssesS-
tent dues would be as folz.o :
.40. OP
S OP
AGc.IC!
ST. LzG s
TOTAL
ASSEcSSInTr
Alameda
4,500
1.1
s 825
Alameda, Couatl
4,335
1.0
750
A"-any
711
.2
500.
An -4 cch
2,00a
5
S00.
;,mama
645
•1
500.
3e lment
1,324
.3
500•
�erkeiey
6,180
1 -5
11125
_amcbell
1,944
.5
500•
Concord
6,328
1.5
1,125
Cantra Costa, Ccumtl
8,000
1 -9
1,425
C:pe^_nc
Z, 511
.E
Sco.
Cali = = =f
3,000
525
?a=r ield
3,490
.8
600
remcnt
10,830
2.6
11950
3ayazd
6,235
1.5
1,125
:.�vermcre
3,375
.8
60C
maz=' Ctun r
1,360
.3
500.
Nart::.ec
1,800
.4
500 -
Men!o Park
1,685
.4
500•
"11_;ma.
Z,500
.6
500•
mcunta:n 7iew
3,025
525
Naca
3,600
.a
600
>Tcvato
2,300
.5
500•
Cakiand
23, 0e1
5.5
4,125
Redwood Cirl
3,400
.9
625
i:ca_rond
5,000
1.2
d00
San Brim
11300
.4
500"
San _ose
38,000
3.9
6,675
San Leandro
5,500
1.3
975
an Mateo
4,669
'
°25
an Mateo, Jaunty
2,527
.6
4c0"
Santa Clara
7,109
-.,
_1275
Santa Rosa
-Marc, ::-=ty
301
._
500"
.ALI talcalat_cns above are based on a budcet of s75, JC0, but aool_ca"cn
-: =a ,..� assessment rule results In a total 'oudcec amount of 380,350.
Assessments mould be due the f_st quarter cf eat. `fiscal year.
• _ndicates =l=m assessment acplied.
1 ^'
P
C�
J
ace
,
__ __5c_
Va-
=r=_sno
22,000
5. <"
3,9C0
:<era, :.ou:.ty
5,030
1.2
900
:L' ^: , __unt7
325
._
So"
Sacramento
20,628
4.9
3.675
a1_.:as
3,886
.9
675
San 7cacaa
2,71'
.6
5JC•
= bcktcn
9,914
2.3
1,725
343
.2
500•
l�.ambra
5,400
1.3
975
Mab.eim
13,772
39
2,475
.Arcadia
3,660
.9
675
Buena ?arr
3,819
.9
675
'hula 7:sra
2,700
.6
500•
Ccmcton
5,000
1.2
900
Carona
3,900
.9
675
Costa mesa
6,000
1_4
1,050
Ccv- a
2,929
.7
525
Ocwnev
3,450
,.8
600
al Ca3 -n
2,242
.5
500•
Sl mcnte
OK
Soo•
?cuntaa.r. valley
3,698
.9
675
ler_cn
6,421
L.5
L,115
Carden Grove
7,452
L.8
1,350
Glendale
12,006
29
2,275
3awt!orne
2,944
.7
525
= akewcod
6,570
1.5
11125
La mesa
L,500
.3
500"
mcnterey ?ark
3,240
.8
600
:ceaaside
3,Z04
.8
600
?.-I,, Sor'mzgs
Soo
.1
5o0-
?_talto
2,200
.5
500+
San Olean
26,185
6.2
4,650
San. 31ago, Couaty
7, Son
L.8
L,350
Santa 3arbara
21656
.o"
Soo -
5aata 3arbara, Coasts
5,09L
L.2
900
^orrance
101120
2.4
1,800
'Tent•.1xa, Couat7
2,579
.6
5o0-
423,156
L00.0
80,350
.ALI talcalat_cns above are based on a budcet of s75, JC0, but aool_ca"cn
-: =a ,..� assessment rule results In a total 'oudcec amount of 380,350.
Assessments mould be due the f_st quarter cf eat. `fiscal year.
• _ndicates =l=m assessment acplied.
1 ^'
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CAL'= 02.vIA CITY- COUNTY STREET LIGHT ASSOCIATION
`tEMBERSHIP CONFIMiATION FORM
The City /County of has decided to
'become a su000rting member of the California City- Councy Street
Lig:t Association. Based on Financial Concept +-2, which was
agreed [o by the majority of those attending Energy SIorkshop
Sel on February 1, 1982 in E1 Segundo, California, our agency
:411 cccm,it cc a mutually agreed assessment for the 1992 -33
Fiscal Year. I further understand that this membership assess-
ment will be due the first quarter of the Fiscal Year, and will
be used solely for the purposes of engaging consultant services
to contest utility company street light increases and their
aquisitien policies before the State of California Public
U[i lit Commission.
The following agency representative has been designated as the
primary contact person between our City /County and the CAL -SL1
Executi•we Committee: ,
VANE:
TI ,E:
ADDRESS:
1:...E.:'iONE: AREA CODE ( )
RE ?IT T0:
=rank �. Addiego
)evartmenc )f Public Works
City of Redwood City
P.O. 3ox 391
Redwood City, California 96063
AUTHORIZING SIGNATURE
�CONF :R.`9ATIGiJ OF MEMRERSHT? REOU --SEED 3Y
rr• �.
TITLE
DAiZ
K4RCh 31, 1983 *
•.
i
RESOU:T 108 NO.- =}= 17 - -_.
I
RESOLUTION OF THE CITY OF SAN BEP,tIARO1i10 OPPOSING ANY Ai1EtID ?1ENTS
Tr THE MUNICIPAL ORGANIZATION ACT (pORGA) ALLOWING THE OETAChI!Uil` OF
•
2
11,NICIPAL TERRITORY.
3
1
WHEREAS, any detachment of territory from the City of San Bernardino
" ill
mould have a negative impact on its citizens as well as its commercial
5
establishments, and
6
WHEREAS, any loss of such territory without the specific permission
T
of the governing body could be of great negative consequences to the
S
whole City, and
9
I
WHEREAS, the orderly municipal processes requi—o that except in very
10
unusual circumstances, the integrity of municipal incorporation boundaries
_
11
should not be disturbed, and
12
WHEREAS, any arbitrary detachment of City territory can cause a loss
13
of assessed valuation, revenues as well as disrupt long range planning
1'1
goals; and,
•
15
NIHEREAS, San Bernardino County uses Genera, rurd monies to support
16
a full time lobhyist in Sacramento; and
17
FIHEREAS, the lobbyist could be utilized in activities directed
is
against the cities in San Bernardino mnty; and
r
19
WHEREAS, the County of San Bernardino has seen fit to seek legislation
i'
20
whereby LAAFCO can detach territory From cities if it deems desirable and
21
create new cities from the det,ched territory making very little sense;
22
and
23
4;H EREP.S, Hove rule can best decide th- destiny of a
24 ��
m,niicipality;
2s
N011, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COeIMON C0UI7CIL OF
26
THE CITY OF SAN BERNAROIHO that the City hereby opposes any attempt to
27 �
,•-�,,nd, modify or oth „r;ii se change. the Municipal Organization Act (MORGA)
2 y
which would allow the detachment or cth- ,rwise remove any municipal
I territory pursuant to a reorganization without the specific p permission
2 of the municipality's governing body.
i
3 1 HEREBY CERTIFY that the foregoing resolution was duly adopted by •
I'
5 the Mayor and Common Council of the City of San Bernardino at an adjourned
rejui.
5 thereof, held on the 25th _day of Janua r}_, 1983, by the
6 following vote to wit:
7 I!
S AYES: Councilmembers
Castaneda.
._a rkc
9 i
`r'ckler
I() NAYS:
11 ! ABSENT: __E2uncii �ie"!�r [+szatis
I
12
13
14 The foregoing resolution is hereb y approved this o� /r day of
15 1 January , 1983. •
16 J%
17
1S � ayor of the / /,C[i ty o an Bernardino
19 1 —
20 I' Approved as to form: 1
I
21
22 C; c�ttoney --
23
21
i
25
26
27
28 I •
E
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...mi. 11 n . wrnitn n,rr n Ilnw!r n
STAFF REPORT
February 16, 1983
TO: City Council
FROM: Lauren Wasserman, City Manager
SUBJECT: Parking Problems at Vineyard Park
may— _wyC
2� -r
1977
City Council has asked the staff to look into the feasibility of closing
Vineyard Park parking lot to students from Alta Loma High School during school
hours. The primary reason for this request by the counetl is as a result of
three pedestrian accidents, and two substantial lawsuits against the city, the
school district, and other affected entities.
The closing of the parking lot is strictly a policy question. The City
Council :gust determine whether the liability which results from students
parking across the street from the school outweighs other considerations.
If students are not permitted to use the Vineyard Park parking lot, it is
anticipated that some vehicles will be parked In school owned parking lots.
However, we may be assured that other vehicles will be parked either on Base
Line or on other side streets within the vicinity of the high school. This
may cause further problems with residents of the area, and in addition, there
is no guarantee that students will not continue to cross on Base Line to reach
the high school.
Another option which has been suggested as a means for minimizing the
pedestrian traffic across Base Line is to request the school to designate
teacher and staff parking at Vineyard Park. Since teachers normally arrive
earlier and leave later than students, traffic should not be as heavy at those
times. This may result in fewer accidents over a period of time. It is
anticipated that the teachers and staff may oppose this plan.
Council has also discussed the feasibility of posting time limits on vehicles
parked at Vineyard Park on weekdays. In addition to the inconvenience to
those citizens using the park, the city would incur additional problems and
expense to enforce the parking restrictions. If existing law enforcement
personnel are enforcing parking, it is anticipated that the staffing and
effectiveness of Sheriff's Department personnel will be less effective.
Yet another consideration is the fact that between now and the beginning of
the school year 1983, modifications will be completed on the present high
school parking lot in order to improve visibility and to provide greater
protection for traffic and pedestrians. In addition, the city will be
installing a traffic signal at Vineyard and Base Line, thus providing a
Protective crosswalk for pedestrians who wish to cross from the south side of
Base Line to the high school and Vineyard Avenue.
RECOMMENDATION:
The issue of whether or not the parking lot should be closed to students
and /or teachers of Alta Loma High School is really a policy question. Since
maJor traffic controls are scheduled for installation prior to the beginning
of the next school year, the City Council may wish to postpone a decision
until staff has evaluated the effectiveness of the modifications.
LMW: mk
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01M V nC D A TirUn OT Tr A nanwir A
STAFF REPORT
February 10, 1983
19'
TO: City Council
n
FRO11: Lauren M. Wasserman
City Manager
SUBJECT: Agreement with Chaffey
Humane Society
The staff and at least one member of the Council has met with representatives
of the Chaffey Humane Society in an effort to resolve the problems of the
Society. As Council is aware, the Humane Society proposed an operating
budget for fiscal year 1982 -83 which if adopted would have required a sub-
sidy of $239,679 from member cities of China, Montclair, Ontario, and
Rancho Cucamonga. The primary reason for the subsidy was to take care of
major capital improvements which over the years have been delayed. During
ensuing discussions, the City of Chino opted to contract with the Pomona
Valley Humane Society for animal control services while the remaining cities
elected to continue using the Chaffee Humane Society.
On January 28, 1983 the Humane Society notified the City of Rancho Cucamonga
and other public agencies of its intent to terminate services on February 1,
j 1983 unless the cities agreed to make a good faith commitment to resolve
the contractural differences. A commitment was given on January 31., and
services have not been interrupted. It is significant to note, however,
that the staff's of the three remaining cities within the Chaffey Humane
Society service area have been investigating the possibility of contracting
with San Bernardino County for animal control services.
Whether services are provided by the County or by the Chaffey Humane Society,
it is clear that we will need to kennel animals at Chaffey Humane Society
office on Mission Boulevard in Ontario. Therefore, improvements are essential
in order to correct long standing deficiencies. The City Managers of the
three communities have contacted the California Conservation Corp to deter-
mine whether that organization can provide the necessary labor to contract
major capital. improvements. At this point, based upon the estimates we have
received to complete the high priority capital improvements, it appears that
ihn ritir< working with the Chaffey Humane Society will be able to finance
most of the essential improvements.
After considerable discussion, the Chaffey Humane Society has agreed to
.accept the offer of the cities to utilize services provided by the California
Conservation Corp. In exchange for approximately $45,000 in CCC labor, the
Humane Society agrees to continue providing animal control services through
tho c.arrent fiscal year. In addition, the Humane Society will pay 2/3 of
rhoo capital cost for equipment, while the cities will be asked to pay the
remaining 1/3 of capital costs on a pro rated basis yet to be determined.
City Council
Agreement with Chaffey Humane Soc.
February 10, 1983
Page 2
Cities have also agreed to provide the necessary supervision, probably
building inspection services without charge to the Humane Society.
A secondary issue of importance during the next fiscal year is the
arrangements to be made by the cities for animal control services. The
Chaffey Humane Society has indicated a preference to continue providing
animal control services to cities. However, the cities are investigating
the feasibility of contracting with the County to handle the important
community services. If the cities elect to utilize the County for animal
control services, Chaffey Humane Society has agreed to handle up to
10,000 dogs and 5,000 cats at a cost to the County of $200,000 per year.
This is within, the cost estimates we have been working with in our
previous discussions with the County of San Bernardino.
1J
While there will always be debate as to which agency can provide the
highest level of service, the City is keeping its options open at this
time. Council is well aware of the negative feedback we have received
regarding the Chaffey Humane Society services. There is no assurance
that the City will see fewer complaints if we switch to the County. The •
nature of animal control is not conducive to praise. However, we do feel
that the public relations aspect of animal control could be improved
greatly no matter which agency handles the responsibility.
STAFF RECO,"ENDATION: It is recommended that the City Council agree to
participate with the Cities of Montclair, Ontario, and the Chaffey Humane
Society to request the California Conservation Corp. to participate in the
construction of major capital improvements. In exchange for that agree-
ment, the Humane Society has agreed to continue providing animal control
for the duration of the fiscal year. In addition the Humane Society will
pay 2/3 of the capital costs on a pro rated basis, and the cities will
furnish supervisory personnel and major equipment needed.
It is our view that the. interest of the cities and the Humane Society
are best served by this agreement at least for the remainder of the fiscal
year. It is anticipated that the City's share for capital improvements
will range between $5- 8,000. This is substantially below the requested
level of subsidy submitted to the city council some months ago.
1 -1.TW: b a.a
OARKrNC �.o.
I i
1
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I i I i r
HUMANE LOCK"
CHAFFEY COMMUNITY IRC,
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NU!:A!!_- SOCIETY OF THE CRAFFEY CO' KINITY, INC.
1010 1ission,.Ontario 91761 947 -3517
Capital investments, repairs, imurovements •
PARKING LOT
Seal, resurface, repair cracks, restriping
"Bumpers" and "no parici ng'signs against building
�p Correct drainage problems
Curb repair, east side
Finish block edging, west, side
(A) Y.IG1T BOXES
. Back door replacements, metal covered
. Painting, inside & out
. Dry -well drainage
(B) VAIN OFFICE
Iainting, inside & out
Carpet repair
3etail sales area (conversion)
Patio cover connecting to other buildings
. Rain protection, back door •
. 'Window awning, south window of license department
. Repair cracks, south wall
. (Drapery cleaning/replacement)
(C) 110 DING FE17S
. Finish expansion of 4th pen: roof, rain gutter
. Gate repairs /replacements
Resurface & the walls
Resurface, seal & paint floors
.
Paint inside vaccine room.• Equipment storage shelves
(D) ADCM ICN CATTERY
Replace F• waterproof doors
. Lcprove ventil ation quarantine area
. fain tins, insida 0 out
(E) ?U P?Y ADITII011 B11II31TTG
:ie;, Lace F, waterproof doors
. Renlace drain cover
. Painting, inside & out
(D & S) OUTSIDE DRAIN F-TOM CATTERY & PUPPY BUILDING
. Possible connection to existing drain
2. Chaffey Humane
PATIO
Walkway levels, drainage problem
• Lower gravel beds:drainage, keeping Gravel in place
1, Construction of "show cage" for "Pet of the Day" display
(F) STZAY /'QUARAt TINE BUILDING
Clean & paint inside walls
Drain covers for stall drains
Outside cement pads and runs
. Shade for runs
-xit doors to runs
Inside kennel gates
Additional lighting
. Rain gutters
. ;:eating - maintenance correction /inspection
Tm7rove ventilation
I,ouseuroofing as per Vector Control
. Viasher & dryer, hook -ups for same
(G) DOG ADOPi'ION BULLDIGG
. Clean, resurface inside /outside walls.
Clean & paint ceiling
icnnel Gates
Repair cracked cement pads, caps
Replace shade over outside runs
eReplace rain downspouts
(11) STORAGE BUILDING /,". (NE71 STRAY CATTERY)
i . Re- design - remove interior walls, add windows, awning
. Heat and a/c
. Paint inside '& out
Sink
. Lighting .
Cage
. Rain Gutters
Nursery; cement pad, fences. for 4 runs
(I) STCRACE BUILDING "2
. Storage chelvi.ng for shelter records
. Crocniiing /dipping room; pan cleaning
Cates
Sink, tub
JAI-htinE;
''.Lent and a/c
., Paint inside and out
. Rain gutters
. T'ot'al lining for food storage rooc,s
E
3. Chaffey Humane
(J) "PORTABLE" BUILD17G, (CONVE3SIOPi)
I . Roof repair
2 . Inside re— design _
3 . Shover, shelving, closet
y
'lot .,.,at er heater .
. Air conditioner
. Snace heater
(::) .,•ASIA BUILDING (STORAGE 41 3)
i ^,e ?air outside vial!
z e:.)ove inside walls
3 . 3cplace door(s)
y . Install safety /screen door
Ylindows and ventilation
nstall sink
-7 . Li'r.t ing
8
Paint inside & out '
Resurface interior walls, tile.
ro . ;resurface floor, paint
h atio cover and privacy screen fence
,z. Ca.cs or additional holding areas
��. %e,air, paint transport carts
y. Storac;e facility for first aid G equipment
I,. Check all drains
•
(L) C-,;-,F7:7 3T3AY CATTERY /CO''iVERSIOU TO 'HCUSII;G FOR
;:CTTC,3, '.;ILD AN11,ALS (RACOONS, POSS"I :S, ETC. )
I Rep_ace cover; rain gutters
I . D.ainaGe and slope
3 Sink hoo!cun to drain
y Enclosure Zfence) with locks
S Cates
(11) (PROPOSED) BARNYARD
. Pond and drain
F . Fencing
. Shelter for rabbits, chickens, fowl, etc.
(S) LI +°STJC: CORRALS, SHELTER, FEED & E:)UIPYENT STORAGE
. Pipe corrals, som.c with pij3 wire
z . ::ater outlets, .;aterin devices
? . Feeders
y . 3heiters
3?oc:vaall fence continued along south line to end
of corrals.
b Fecd ?, equipment storage
7 .:orae /livestock trailer •
(0) / BREA•£• i`! 1:AI;Q DRAI7 .0 }i 'BEST SIDE OF SHELTER To SEVER
4, Chaffey Humane
(P) SURFACE TURN-AROUND ROAD
• �. [seeded to accommodate large, heavy trucks for deliveries,
refuse, disposal (animal carcases)
(0 F)=—,D FENCING, CENTER SHELTER TO SOUTH LINE
i. From rear of Stray /Quarantine Building to confine
large livestock in- disaster or emergencies.
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INTER - OFFICE COMMUNICATION
CITY OF ONTARIO
DATE : February 8, 1983 coo FV •
TO : Roger D. Hughbanks, City Manager
FHOM : Michael E. O'Connor, Assistant to the City Manager
SUBJECT; Humane Society Briefing Paper
PURPOSE
This meworandum will give an update on the Humane Society of the Chaffey
Communities in preparation for the Thursday, February 10, 1983 meeting between
the city and the Society's Board of Directors.
BACKGROUND
In April, 1982, the Humane Society proposed an operating budget which required
a subsidy of $239,679 from its member cities of Chino, Montclair, Ontario, and
Rancho Cucamonga. (The Humane Society would contribute an additional $35,650
from its surplus.) The subsidy was necessary, according to the Humane Society, •
to accomplish capital improvements. During ensuing discussions, Chino opted
to contract with Pomona Valley Humane Society; and the remaining cities decided
to continue using the services of the Humane Society. The subject of capital
improvements continued as an unresolved issue for further negotiation.
On January 28, 1983, the Humane Society threatened to terminate its services
on February 1, 1983 unless the cities agreed to make a good faith commitment
to resolve the contractual differences. A commitment was given on January 31,
and services will continue for the time being. In the meantime, to address the
service problems of the Humane Society, staff has been investigating the use
of San Bernardino County Animal Control Services.
Because it is clear that we will need to kennel animals at the Humane Society,
an improvemunt program appears necessary. The current thinking is to use the
labor of the California Conservation Corps with the cities and the Society pay-
ing for materials on a joint basis. At this point, we do not have an estimate
of the cost of materials; but it should be well within our ability to contribute
in vi(Tw of the fact that the county will be kenneling our collective animals
there.
Before any such agreement can be made, the following assurances are necessary:
I. That the Humane Society will continue its animal control and kenneling
opur'ations through June 30, 1983 for the cities.
2. That the Humane Society is willing to provide kenneling services after •
July 1, 1983 for Ontario, Montclair and Rancho Cucamonga. Animal control
would be provided under contract with San Bernardino County.
/d
0 • •
HUMANE SOCIETY OF THE CHAFFEY COMMUNITIES
Budget +:ompa r i s on �
FY 1981 -82
Fy 1382 -83
FY 1982 -83
3udget-- Expenditures
Budget- - Original Proposal
Major Budget Cost Increases
$415,025
- *Anticipated Revenues -
$502.374
Facilities
Renovation - $)81,350
Requested City Subsidy -
239,679
Salary Increases - 67,4821,`^
$742,053
FICA /SDI 6,407
5275.239
.,Based on April 27, 1982 budget document submitted by :haffey Humane Society
*Includes license fee increases and $35,560 Society surplus
'" *Represents 37.5% salary increase
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9608 Edelweiss
Rancho Cucamonga,G.A 9173.0
Feb 15, 1983
Councilman Phillip D. Schlosser
P.G..Box 807
Rancho Cucamonga,CF 91730
RE: Sub -drea 16
Dear Councilman,
Our names are Randy and Wendy Damke. We have lived in the residence
north of Sixth Street in Rancho Cucamonga. When we had moved here in 1981,
we were informed by the realtors that our southern section would become a
development of family residential.
ue are opposed to the proposed development of an industrial
park plan. As former residents of West Covina and Glendora, we have
cherished the protection of property and surroundings of our neighborhood.
We hope that the city will reconsider its options f or the area of
development into a low to medium density single family residential.
Thank you,
i
Randy & Wendy Demke
_J� Obi G .r��'�; "mil'" y� ,e "� �'✓� �.j
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plus 61 &jc, acy;
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DEAR COUNCILMAN
I AM A RESIDENT OF RANCHO CUCAMONGA LIVING IN THE AREA JUST NORTH
OF SIXTH STREET. A FEW YEARS AGO I PURCHASED MY HOME WITH THE
UNDERSTANDING THAT THE LARGE AREA SOUTH, CALLED SUB -AREA 16, WAS
ZONED FOR LOW DENSITY SINGLE FAMILY RESIDENTIAL.
I AM OPPOSED TO INDUSTRIAL PARK DEVELOPMENT IN THAT AREA, EXCEPT
POSSIBLY ALONG ARCHIBALD AND FOURTH STREETS. OTHERWISE, I WOULD
REQUEST THAT THE ZONING BE LOW TO MEDIUM DENSITY SINGLE, FAMILY
RESIDENTIAL. IN ORDER TO PROTECT OUR PROPERTY VALUES, AND PREVENT
US FROM BEING TOTALLY SURROUNDED BY BUSINESSES.
WE ARE JUST AS MUCH A PART OF THIS GROWING CITY AS ANYONE LIVING
IN THE NORTHERN AREAS, AND THIS ZONING WOULD PERMIT OUR RESIDEN-
TIAL AREA TO GROW IN AN ORDE RyLLYj MANNER.
THANK YOU.
3 c�
u,y„c„m^�w, ce. vino
DEAR COUNCILMAN
I AM A RESIDENT OF RANCHO CUCAMONGA LIVING IN THE AREA JUST NORTH
OF SIXTH STREET. A FEW YEARS AGO I PURCHASED MY HOME WITH THE
UNDERSTANDING THAT THE LARGE AREA SOUTH, CALLED SUB -AREA 16, WAS
ZONED FOR LOW DENSITY SINGLE FAMILY RESIDENTIAL.
I AM OPPOSED TO INDUSTRIAL PARK DEVELOPMENT IN THAT AREA, EXCEPT
POSSIBLY ALONG ARCHIBALD AND FOURTH STREETS. OTHERWISE, I WOULD
REQUEST THAT THE ZONING BE LOW TO MEDIUM DENSITY SINGLE FAMILY
RESIDENTIAL. IN ORDER TO PROTECT OUR PROPERTY VALUES, AND PREVENT
US FROM BEING TOTALLY SURROUNDED BY BUSINESSES.
WE ARE JUST AS MUCH A PART OF THIS GROWING CITY AS ANYONE LIVING
IN THE NORTHERN AREAS, AND THIS ZONING WOULD PERMIT OUR RESIDEN-
TIAL AREA TO GROW IN AN ORDERLY MANNER.
THANK YOU.
/),ti
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/J
CITY OF RANCHO CUCAMONGA
STAFF REPORT
Date: February 14, 1983
Tco City Council and City Manager
From: Bill Holley, Director, Community Services Departure t
Subject: Terra Vista and the Park Plan:
The 13.2 Acres in "City Park'
_ liy
1977
At Council's Special Meeting of February 7, the 13.2 acres of parkland that
was not displayed on the Terra Vista Plan was directed by Council to be placed
into the 99 acre park north of Rase Line Road.
Subsequent to that meeting, inquiry was made by several Council members
regarding possible options for final placement of that 13.2 acres. In answer
to those inquiries find the following:
OPTION 1: DEVELOPED OR UNDEVELOPED?
Under Ordinance 105 Council has the option to determine where and bow park
dedication requirements are to be met ... in lieu fees only, land dedication
only, or, a combination of both.
In LieU Fees
where in lieu fees is the method to be employed, the following method would be
used. (Throughout the balance of this memorandum, as assumption of land value
will be made at $40,000 per acre. If any uncertainty surrounds this
assumption, it can easily be remedied through an appraisal process as outlined
in the Ordinance.)
Where:
Where:
Then:
N x S x P = 13.2 acres
1000
L + D = Land plus development cost
or
$40,000 + $48,000 = $88,000
N x S x P (L + D) = In lieu fee
1000
or
13.2 x $80,000 = $1,161,600
inued ..
If it were Council's determination that the public interest would be best
served through the in lieu fee method, the developer's requirement would be
$1,161,600 to satisfy his legal obligation.
Land Dedication
Or. the other hand, if Council, determined that public interest could be best
served by dedication of undeveloped land, the Ordinance directs that "the
minimum amount of land required shall be the amount which could be purchased
with the fee computed" from the formula. In other words, the land value would
also total $1,161,600. What then would this mean in terms of raw acreage?
(Keep in mind, that we are using an assumed $40,000 per acre land value on
both sides of the of the equation.)
$1,161,600 = 29.04 acres undeveloped
40,000
Combination
A third Council alternative exists ... combination of fee and land, which
would develop the 13.2 acres at a $48,000 per acre level. (In essence, this
is the method employed in the neighborhood parks and trail program in the
balance of Terra Vista, although the in lieu fees will not be through cash,
rather, will come in the form of development service.)
option 2: Location
Once the methods of dedication have been examined and a determination made by
Council, a location must be established.
In attachments A and 8, we present two 'non - precise' placement options
predicated on the combination method, where the developer dedicates and
improves 13.2 acres of parkland.
In attachments C and D, the alternatives presented depict options where
straight dedication of undeveloped land occurs.
(Keep in mind also, that the park plans illustrated are 'rough' concepts that
have not been refined. They serve only to show what types of activities
'could' occur within a site of this size and configuration.)
Summary
Council has two options ... to choose 13.2 acres developed or 29.04 acres
undeveloped , and, elect to start in the east at Milliken and work west
toward the Creek or vice versa.
If I can answer any questions by the Council on the above, please do not
hesitate to contact me at your convenience.
8M /mw
Attachments: "A" - 13.20 developed at Deer Creek
"B" - 29.04 undeveloped at Deer Creek
"C" - 13.20 developed at Milliken
"O" - 29.04 undeveloped at Milliken
i
13.2 acres �`$ �'- ♦ I agRa ^� \i r� Zi's��>G _ a, rK .� - ..
➢evelope� o ��,.` is ♦;�� �Y,a3.'t �Z V>'r .fi i.'t.�' -,� ; °�33'k?•�'?�
TRA n
f,'1 STO "c,3y4s d -Ip1ri'�A�a .`.w+h 'AMPHITHEAT E�'°
>a •c"`:.j�..�.;, ..x :,,, M °'�'} r,'�' PECIAL EVENT AREA 4!
dc
a2 .e�� t 11
R...r.C��i —i
I-At O p ♦ ����I �1�'
r < n > �'�' do .i , a�,� t - ♦ � � „J,
.j�!�.'1 l: � i -7w '.,.. .o—♦ �Ji'�3 �I ��,�t3�.,�v� �e�f= �'.fi'�� f e ali SI _I I l�� ��a
- s°y".: n4 S "-+c"` -. "_�ti- > if 9 - ��!% -'.� ?'1d 9ri•r '.,
. C -t�440 'in •.]�•:>
OnJ >i -> n � \1-o a 9`♦
(Note: This attachment is not 'precise', but 'conceptual') ATTACHMENT "A"
17.2 acres
Developed
I I__
T.ry 1It _.b.u.w
to >�
EVENT
q.D a.n.o
..• a - -n.a
• '9'04 D
a' "a
(Mote: This attachment is not 'precise', but 'conceptual') ATTACTIMENT "A"
7' >
1>
D
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I
TRAIL
�'- STOP ,
7�r C
i
- _ -'a
1,f 'rnn +T ♦q nnn
Lv�
ai i i f•' I
(Note: This attachment is not 'precise', but 'conceptual')
ATTACHMENT "B"
13.2 acres
Developed
AMPHITHEAT'
=_ $x9i
PECIAL EVENT
>.n p
5M 1
ATTACHMENT "B"
. J . .
29.04 acres
Undeveloped
�I
r>— e
x:.71' .,el'
.
AMPHITHEATRE
PECIAL EVENT AREA
e e...e T l t ?�- •� -I i .1,
CNv1t'WNIT y
(Note: This attachment is not 'precise', but 'conceptual') ATTACHMENT "C" '
TRAIL
;'STOP ;
-36�
,r
n l.,n , •w,'nw�C
W`PICN*; t 4
1 t A'c%������r s9 >+
� q..� b-• Sri �Ir"�G� „ —,�t.g
29.04 acres
Undeveloped
;Y
'XMPHITHEATREar,j 39,
'ECIAL EVENT AREA t - o'a
s e o C, a fl• 11 b�'
r
� Y
G�9�lI�IIJNIT .i^L. ���
(Note: This attachment is not 'precise', but 'conceptual') ATTACHMENT 'V'
O`a Pi DEPT.
,T LEWIS DEVELOPMENT CO.
as
Mounioln Aenue / V.O. Box 670/ upbnd. CA 91786 / 710 9850971 '- 1 ' a'�'
100 fN
February 11, 1983 7180 0i,ii1'iii21314016
DELIVER BY HAND
Mr. Rick Gomez
City Planner f
City of Rancho Cucamonga /4�/-c_-
9320 -C Base Line Road
Rancho Cucamonga, CA 91730
Re: Terra Vista Community plan
Redlined Copies for City Council
Dear Rick:
Since Mike Vairin is gone today, I am transmitting these 11 copies of the
redlined Terra Vista Community Plan to you. After our hearing on Monday,
we submitted this on Tuesday; Mike requested a few changes on Thursday.
The enclosed copies are for the Council and staff,
Most of the changes we have made are self - explanatory since they were
conditions of approval. However, a few things need to be pointed out.
1. Given the Council's action, we have eliminated all the references to
private open space throughout the text, not just in Chapter VI where
they specifically requested deletions. The exception is a few items
in the section on residential design guidelines, which Gruen felt
should remain, having to do with connecting private open space to
public open space.
2. The Council instructed us to show approximately 13 acres of park at
the southwest corner of the City park site. We have indicated a
specific 13 -acre parcel in the plan. This parcel is best located to
benefit the Terra Vista residents who will pay for it, and it is also
relatively compact so that our development of it will not interfere
with the overall plans for the rest of the City park. I have discussed
this site with Dill Holley and I think he agreed it was fine. At the
hearing we will have visual aids for the Council, to show them the
site more clearly. We will also have several different concepts for
the overall park, prepared by Gruen, to show how this site might fit
in with the eventual park plan.
3. It was necessary to adjust a few land uses in order to re- balance the
Plan to 8000 units after the neighborhood center was changed. Gruen
felt it was simplest to do this by simply changing the density of the
two LM parcels next to the railroad, north of the shopping center, from
LM to M. This is rather ironic in view of the various changes that
were suggested at the hearing; in practical terms, though, we feel it
will have little real effect. We are planning a mobile home subdivision
Mr. Rick Gomez
City of Rancho Cucamonga - 2 - February 11, 1983
at that location, as you know. Its density is about 7.5 units per acre,
SO it will fit in either the LM or the M category. We felt We might as
well make the adjustment here, so that the number of units We will
actually develop will not be too far different from the midrange
figures in the plan. I went over this with Mike and he had no problem
with this change.
4. The Planning Commission had recommended deletion of the section in
Chapter VI dealing with the Foran bill. This section also included
the chart showing how 55.8 acres had been arrived at. Mike Vairin
asked yesterday that the chart stay in, so we have included it. Some
of the figures had to be recalculated because of the land use changes
made by the Council and the additional minor adjustments we made to
balance the plan. The overall result was a total park requirement of
55.4 acres.
As you and I discussed, it would he awkward if the total park acreage
figure were to be changed now, since the Council used the specific
figure of 55.8 acres in its ordinance. We are willing to have the
total requirement stay at 55.8 acres; however, we would like to use
the 0.4 acres' difference to place a minipark in the lower triangle,
off Haven between Base Line and Church. Our reason is that this
particular area is relatively isolated from the City park as well as
the other parks. Unlike other residents of Terra Vista, these people
will have a bit of a hike to reach a park or school, and that is why
we think a small park area here would create a better environment for
them. Had we been allowed to distribute the 13 acres for Terra Vista's
benefit, this is one of the things we would have recommended.
This minor change is purely accidental; it results from the detailed
persons- per - household figures that apply under the park ordinance and
the fact that we had to upzone a small amount of land to balance the
plan. So, even though it has worked out that the City could only
require 55.4 acres, we are willing to donate the extra 0.4 acres if
we can put it in this location.
Since you and Mike have both said this change would be OK, we have shown
it in the text. As I told you, I did talk to Bill Holley about this
and he felt that mi,iparks are not the best idea because they are more
expensive to maintain. However, in this case, Terra Vista is paying
all the maintenance anyway. Also, the assessment district (or master
association) will already be maintaining a trail adjoining this minipark,
as well as street landscaping in that vicinity. So, they will already
be in the neighborhood to maintain these other areas, and the minipark
will not be much additional work. It is a small area.
As you said, this is a very minor thing. We have shown it this way
based on our discussions with you and Mike. If any question comes up,
I lope we can count on your support.
At Bill Holley's request, we changed the persons -per- household figures
in the Land Use Summary in Chapter III so that the total population
would match that in the chart in Chapter VI.
Mr. Rick Gomez
City of Rancho Cucamonga - 3 - February 11, 1983
I think that covers it. If you or Mike see any problems, please call me
before Wednesday. Thank you.
Cordially,
Kay Matlock
Project Manager
/km
Enc.(11)
P.S. Beverly Authelet will need 5 of these copies to send to the Council
on Monday.
iiuurb of OWtruisors
(fouutg of Sun Strunotno
February 10, 1983
Mayor and City Council
City of Rancho Cucamonga
P o. Box 807
0�
DAVID L. McKENNA
SUPERVISOR THIRD DISTRICL
JOHN LIGHTBURN
ADMINISTRATIVE REPRESENTATIVE
BARBARA RIORDAN
EIEm RE >nE S(n rnnvE
r E, p W
CITY Or RANCK CUCAMONGA
AtibUNi5 frt,CriON
FEB 14
Rancho Cucamonga, CA 91730 AM PM
71819110111(12)1)213141516
Dear Mayor, and City Council: - A
Mayor Holcomb's letter of January 11, 1983, urging all cities
in our county to adopt a resolution opposing any amendment to
the Municipal Reorganization Act (MORGA), concerns us greatly
as to the accuracy of the representations and statements made
therein.
Before you contemplate taking action on the City of San Ber-
nardino's request we strongly encourage you to consider, for
the record, Lhe following:
1. The County's legislative proposal to amend MORGA
will only affect the Highland Area situation. Ile
have indirect confirmation from the League of
Cities that no other city in the state will be
affected now or at any future date.
Therefore, contrary to Mayor Ho)comb's letter, the
county is not acting out of disregard for the
cities of San Bernardino County; nor, is there any
"threat" to the rights of cities throughout the
State.
2. Correctly stated, the County filed the petition
for the possible incorporation of the Highland
Area prior to January 1, 1983 in order to allow an
opportunity to pursue legislative relief from a
specific provision of MORGA, which would effective-
ly preclude a resolution to the service delivery
problems brought about by the City of San Bernar-
dino's historic piecemeal annexation program.
County Civic Building • 175 West Filth Street 6 Son Bernardino. CA 92415 • 17141 3832911
Mayor and City Council
February 10, 1983
Page Two
Perhaps a little background information as to the
nature of the problem would be helpful.
The attached map of the east San Bernardino/High-
land Area will illustrate clearly the chaotic dis-
array of boundary lines, unincorporated islands
and City islands. You should further note that all
parties, including LAFCO, agree that there is a
serious problem of providing orderly and efficient
urban -type services in this area.
Also attached, for your consideration, is a Sun
Company editorial (1- 31 -83), and a news article
(1- 27 -83), both reflective of our position on the
matter.
For over two years this office has been attempting
to bring all parties together in an attempt to
realize a positive, and comprehensive resolution
to the problems. Additionally, we have provided
you with a Chronological Sequence of Events out-
line.
At the close of the 1982 legislative session, we
have indirectly confirmed, that Mayor Holcomb,
without our knowledge, sneaked in a last minute
rider amendment to the MORGA revision bill, AB
3003.
The County was totally unaware of the City's tactic
until late December 1982. According to Assemblyman
Dominic L. Cortese, Chairman of the Local Government
Committee and author of AB 3003, had the County been
given the opportunity to testify, regarding the
detrimental implications of the City's amendment on
the Highland Area issue, it would have been most
unlikely that the City's last minute amendment would
have been reported out of committee.
In view of this, it is becoming more apparent as to why the
City has been reluctant to propose or affect legitimate annexa-
tions that would result in a balance of services to the tax
revenues taken.
Regarding the City of San Bernardino's Resolution Number 83 -18,
we urge you to consider the following:
Mayor and City Council
February 10, 1983
Page Three
The City suggests that a loss of territory "could
be of great negative consequence to the whole
city ". This statement is unsupported by facts at
this time. It is just as likely that a proper
reorganization, which includes annexed unincorpo-
rated land to the City, as well as possible
detachments, could result in greater service
dollar efficiencies and revenue benefits to the
City.
2. The City suggests "that except in very unusual
circumstances, the integrity of municipal bound-
aries should not be disturbed ". It is self -
evident that the Highland situation is an "unusual
circumstance ", as the attached map illustrates
clearly. Therefore, a proper justification for
reorganization does exist.
Any detachments subject to a LAFCO reorganization
plan will not be arbitrary as the City suggests.
The final proposed detachments will have to be
voted on by the residents in those areas. There
will have to be strong citizen support, evidenced
by signed petitions, before a proposed detachment
will be included in the prospective final reorgani-
zation plan.
Unfortunately, the City wrongly accuses the County
of seeking "legislation whereby LAFCO can detach
territory from cities........ and create new cities
from the detached territory............"
This statement grossly misrepresents the intent and
conduct of the County and cannot go unchallenged.
Let us be perfectly clear. The County's legislative efforts
and related activities affect only the Highland Area and those
respective parts of the City of San Bernardino.
A final point in closing.
Please understand, there are over forty thousand (40,000)
constituents in the Highland Area who simply seek the right
to determine their destiny and the right to "home rule ".
I am confident that you will agree that these are worthy
goals that we all support and enjoy.
Mayor and City Council
February 10, 1983
Page Four
In representing the majority of this constituency, I am
committed to making every legitimate effort to afford them
an opportunity to decide their own future.
To this end, we simply ask that before taking any action on
this matter you scrutinize the City's statements and repre-
sentations as well as ours.
Respectfully,
D In I R$NA
Supervisor
Third District
DLM :hc
cc: Mayor Bob Holcomb
City Council Members
Ralph Hernandez
Gordon puiel
John Hobbs
Jack Strickler
Robert Castaneda
Steve Marks
Jack Reilly
. . . . . . . .
....
:1 7.1i
411
SAN 0E N'A 2:11,
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14
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SAN SUZXARDM�i
...... . ....
UNINCORPORATED TERRITORY; M=CITY OF SAN BERNARDINO
51oriday, Jon. 31, 1983
!ooing:.Hig41an&,
'A distinct aura. of.unity pervaded the Saa Bernardino City
Hall as the City Council voted to.proceed with the idea of.
creating a; three-member council committee to join with the
mayor to develop policy on boundary reorganization. and
annesation.of land in the Highland area.` '
When the,issue originally was presented to the council.it'
;,seemed it-might lead.to disagreement because some coun -'
cilmen had criticized Mayor W.B. Holcomb for making public
statewents.on the Highland cityhood issue that have been
construed as representative of the city s oosition.
However, efforts obviously are being made on both sides to
{ try to achieve a unified policy on the issue. '
:. Councilman Steve Starks, who launched the idea of forming
' -the council committee, said he met with Holcomb to discuss it.
:; He called the Wks "friendly, informative, intelligent and with
-a. unity of purpose."
Holcomb •was -not at,the most recent'council meeting
because,hewak attending the United States Conference of
Mayors..' Nevertheless, =,the mayor co- signed .with }larks' a
memorandum emphasizing they were jointly er cursing the
,;.committee formation idea.
This kind of unity is desirable if the city-wishes to�suc-
.�cessfullyand harmoniously govern the people who live in the
.unincorporated areas east of its present borders.
As the area becomes urbanized; the question of providing
orderly urban -type governmental services to it is one that now
has to be resolved:
The b Vsolution,will be the one tbat' is most willingly
accepted by the residents of that area as the. one that they
believe is best suited to their long -run interests.
H San Bernardino wants to win that assent, it is good for it
to demonstrate a well-coordinated, constructive approach to
problems, as it has in dealing with the committee formation
Issue. t ` .: ,.
It is no secret that most of the area's residents traditionally
have shown an aversion toward being governed by San
Bernardino. However, if the city can solicit their acceptance
through positive methods, more power to it.
1 Consequently, it, is unfortunate that in a related action, the
l:council passed a resolution opposing,any amendments to a
I. state law giving . the city, veto power over any transfer of its
territoG� to a proposed.new city of Highland 4
If;the Legislature goes along with the cov^.cil's request, it
may give San Bernardino a-short -run victory. However,. by..
--arbitrarily cutting off the area residents'right to make a free
choice among all potential options, it could leave a legacy of
eibitterness and ill will that could make it difficult to address
'1`the area's governance problems successfully and in an orderly
,,manner for years to come. r.:.
If San Bernardino: is to woo the attentions of the eastern
residents; diplomacy,wili serve it better than a club.
Highland-city S I
kick off ztion, drive;
fie�
'r +,� By P,G.TORAE'L __ ,`U �a
ciiiveri petition tampai3n to j
-
backup the filing. '-
\V11 '- son sree wr .r
-
'Burfigather asked torah
HiGHf.ANU —In a bid to show .
res
neap to gather signatures to
'.broad support the incorpora-
play. public support, for the ity-
d,
delta[ Highland,
tto
hood p rat
"1t is WM
C- -
a petition ram-
nents.kie of[ a
10 w
the Board of Supervisors to know
rd of S
the goal of
paign Wednesday with g
the amount of support withal the
signatures
obtaining the signatures o[A2,000
community and we encourage you
voters within 60 days.
to energetically help us determine
Meeting at San Gorgonio High
the amount of that support
through this petition drive,' he
School, about 80 persons heard
said in a letter distributed to t:ie
Highland Chamber of Commerce
audience by his field represahta
audience
Vresident Ross 8. Jones say the
Barbara Riordan_..... ,. _ •'
signatures "are going to he cni -�'
vial" to Hngbland becoming a'city.
"So really-the-answer (to the city- -
Petitions will he circulated-in
-t6e area proposed to be t-in
V p
hood question). is' with - yon..peo- ,,
"'t f 'r: a':
..
boundaries of the new city_ The
pie -+ a c. _ ^r'- -
17.5-square•mile area extends we,A
" Signing a petition does not cam
as far as Del Rasa Avenue, north
note support for incorporation,
of Highland .Avenue,ind nearly -n)
hilt rather is intended to encour-
Waterman Avenue south of Mail-
age a Nov. B vote on the issue. Two
land. Avenue. It extends, east' to
different petitions will be eircu.
Church Street in East ilighlands ,
. lated in Highland'— one for per.
and generally south to Third
sons living in areas now within
Street and north to torest 6ollnda.
the bamdariesof San Bernardino
ri es; .
and the other for persons living in
°
the unincorporated areas.. •:
`, 'An estimated 60," people tide !
' I.- ' " ".. 1 ` '�
in the area with abort onPthird o[ '
'Jones said he expects about 2511
them registered voters.
persons to circulate petitions. The
biggest push will be in the next 30
'•' ° Jtrnes said the proponents are
days with the area west of Vicrn-
seeking to gather signatures of At
ria Avenue receiving priority, bee
least60 percent of the voters: -c
The petition campaign way in-
sligated after county Supervisor
'' As for keeping Highland unm-
corporated, . fones said the idea i
David L ficKenna pot the Board
"does not exist as a reality any
of Supervisors to sponsor High-
more." This is because San Bee-
land's incorporation filing with
nard {no is moving to annex the
the Local Agency Formation Com-
area and the county no longer can
oussion. the board's action on
afford adequately to provide Wa V-
Dec.l3eliminatedthenKessrtyof
ices to Highland, lie said.
CHRONOLOGICAL SEQUENCE OF EVENTS
IN EAST SAN BERNARDINO- HIGHLAND
1966 - Efforts were made to incorporate the Community of
Highland, this was denied by the LAFC because of
the lack of resources.
1975 - LAFC encourag_d an incorporation proposal for High -
dcommunity withinatheoSpherreoofd Influence of p the
ed
the
City of San Bernardino.
1979 -8D County Board of Supervisors initiated a City -
County -LAFC effort to realign boundaries (later
reEerred to LAFC for solution).
1980 - LAFC initiated a series of community meetings to
encourage boundary realignment by annexations to
the City of San Bernardino - the Community rejected
this solution.
1981 - A Citizens Committee conducted a Community question-
naire survey. Results:
1) Most people favored staying in the unin-
corporated area.
2) Next was support for a new city.
3) Next was annexation to existing City.
1982 - A Citizens Committee initiated a study to review the
feasibility a new City of Highland.
1982 - MORGA was changed to include City protest -- effective
1983.
1982 - December 29th, County Board of Supervisors filed
Highland Incorporation with the LAFC to preserve
every option of avoiding a City protest.
> 1C-
s
HISTORICAL REVIEW OF EFFORTS
TO REALIGN THE BOUNDARIES
OF THE EAST SAN BERNARDINO- HIGHLAND COMMUNITY
The East San Bernardino - Highland Community of approximately
60,000 people has a problem as to its delivery of public
services which is both confusing to local residents and
expensive.
As shown by the attached map, the City of San Bernardino has
(over time) infiltrated into the area so that it now has
within its boundaries about one /third of the territory, one/
half of the people, and three /fourths of the revenue. The
remainder is unincorporated County territory served by County
Departments, Special Districts, and the California Highway
Patrol.
There is confusion as to whether individual residents are in
the County or the City, and every service call as to planning,
roads, fire protection, and police service must be checked as
to the appropriate jurisdiction.
This problem is compounded by two elements: 1) The existence
of a small group of citizens who recall the days when "Highland"
was a separate small community, their roots are in this heritage
and they are committed to their community not being swallowed
by the growth of the larger City of San Bernardino; and
2) The East Valley Water District, an independent District
which fears that it will be taken over by the City of San Ber-
nardino when that City overlays 70% of the District's service
boundaries.
Both these groups resist a solution to the problem through
annexation to the City of San Bernardino.
The County, City, and the LAFC have sought solutions to this
mix of City- County territory for at least eight years.
In 1975- 76,the LAFC reviewed the area in connection with its
determination of a Sphere of Influence boundary for the City
of San Bernardino.
It determined that the East San Bernardino- Highland Community
should either be an integral part of the City of San Bernardino,
or separated off as an independent City of its own, and it
encouraged elements which opposed joining the City of San
Bernardino to consider incorporation.
-2-
After a period of review, it seemed evident that there was
neither the inclination nor the financial resources to form
a separate City so the LAFC drew the City of San Bernardino
Sphere of Influence to include the entire East San Bernardino-
Highland area. Annexations of the co=ercial and developing
areas to the City of San Bernardino have continued - -on the
basis that these areas (while nc'. always logical in terms
of directions of growth) needed City services, annexation
was requested by the property owner, and these additions
to the City were contiguous and within the City's Sphere
of Influence.
In 1979 -80, after Proposition 13 limited local governmental
revenues, the County initiated a County - City -LAFC consortium
to attempt to put the service delivery lines in some order.
After several meetings, the County and City agreed to leave
the matter with the LAFC.
In 1980, the LAFC initiated a series of community meetings
essentially to straighten boundary lines by annexing the
most confused and mixed areas to the City of San Bernardino.
After proposing many alternatives and finding no advocate
for any option, the LAFC dropped the study and encouraged
interested citizens to continue to study solutions.
In 1981, a Citizens Committee, anxious to preserve an inde-
pendent Community of Highland, proposed an LAFC financed
community questionnaire to see if there was any consensus.
Responses were received from some 9,380 people.
The results were: 1) Stay as an unincorporated community.
2) Establish a new city.
3) Annex to the City of San Bernardino.
Realizing that to remain as an unincorporated Community was
not a viable option with the Community as part of the San
Bernardino Sphere of Influence, a group of citizens initiat
a studv for incorporation considering several alternative
Note: It was at this time t
Municipal Organization Act d
in the event that a new city
detachments from an existing
at it was discovered that the
d not include a city protest
was proposed which included
city.
so it was presumed that if a new city boundary could be pro-
posed, which in the LAFC review was shown to be reasonable,
-3-
was financially viable, and did not do violence to the
existing city's revenues or service delivery, that detach-
ments from an existing city could be included in an Incor- '
poration- Reorganization proposal, under MORGA, and the
matter could be submitted to the voters with no "City
Protest" to deter it.'
In 1982, MORGA was changed to include an existing city's
right to protest detachments from its boundaries, if any
part of its boundaries were proposed to be detached in
order to form a new city. That change was effective on
January 1, 1983.
On December 29, 1982, the County Board of Supervisors filed
with the LAFC a proposal for the Incorporation of a new City
of Highland which included significant detachments from the
City of San Bernardino in order to make the boundaries of
the proposed City viable, and to make the new City economically
feasible.
The County filed prior to the effective date of changes in
MORGA to preserve every possible option to eliminate the
service provider confusion and create a new community.
The LAFC will continue its study of the Incorporation proposal,
and will recommend an action which in its considered judgement
will be in the hest interest of the entire area.
When that final decision reaches the Board of Supervisors as
the conducting authority - -under present law- -the City of San
Bernardino can exercise its "protest" provision and eliminate
from consideration any part of the area proposed for incor-
poration which is now in the City of San Bernardino and pro-
posed for detachment.
If the Incorporation proposal could have been finalized in
1982, or if the current law could be changed to exempt from
its provisions of city protest all incorporation proposals
filed but not completed prior to January 1, 1983, the existing
city could not block consideration of the voters by its protest.
LHH:cl
January 17, 1983
H11TMANE SOCIETY
�`1 OF THE
C11AFFEY CON11- 4UNITY, INC.
A NONPROFIT ORGANIZATION, INCORPORATED JUNE IYIA
1010 EAST MISSION BLVD. IHwy. 601
ONTARIO, CALIFORNIA
9t761
February 15, 1983
To: The City Councils of Ontario, Montclair, Rancho Cucamonga
From: Betty Fryman, General Manager
Following a meeting with members of our Board of Directors and representatives
of the three cities' administrators, the Board of Directors of the Humane Society
of the Chaffey Community have asked me to convey the following information to
you:
1. The Society is willing to accept the California Conservation Corps "package"
to implement needed capital improvements at the Shelter in return for performing
animal control services through June, 1983. We agree to contribute two - thirds
of the cost of materials to be used in completing the project. Services, however,
would not include preparing for and licensing for the 1983 -84 fiscal year. If
the cities desire to contract with the Humane Society for animal control during
the 1983 -84 year, preparations for licensing must begin in March of 1983.
2. Chaffey Humane Society prefers to continue performing animal control after
June 1983, properly funded, and it is the Society's opinion that such funding
should not exceed what using another agency, such as County Animal Control,
would cost.
3. Chaffey Humane is willing, if the cities contract with County Animal Control
for fiscal year 1983 -84, to provide kenneling services for the cities' animals
through a contract with County Animal Control .
Copies to all City Managers
CITY GfhkANt:KO CuCtimQ,% -cA
pr, ,;, .
AN PM
7t8i9i1911111 L''111:4301$16
LEWIS DEVELOPMENT CO.
1156 Noah MwMdn Aenoa r P D, Box 670 / UMW, CA W786, 714 985 -0071
February 16, 1983
City Council
City of Rancho Cucamonga
9320 -C Base Line Road
Rancho Cucamonga, CA 91130
Reference: Terra Vista Planned Community
Gentlemen:
We have received Bill Holley's staff report to you concerning the park
we have been required to provide on the site of the proposed City
park.
Regarding Mr. Holley's staff report, the options presented therein do
not, in our opinion, meet any test of law, reason, equity, or common
sense. If this additional park dedication is to be required, it, like
all other park dedications in Terra Vista, should be given in the form
of improved park. To require otherwise would be to deprive the people
who will pay for this park of any recreational benefit in return.
Both state law and a sense of fair play dictate that when a city
requires dedication of raw land, it must show exactly how and when
that land will be developed as a park. Under the present funding
situation, we do not believe the City is in a position to provide such
a development schedule now, nor will it be when the first park dedica-
tions in Terra Vista are made. The City has required all park dedica-
tions to include park improvements on the grounds that raw land is not
a park. To adopt the option presented by Mr. Holley would be directly
contrary to that principle.
Our primary concern is that if the residents of Terra Vista are going
to pay for this park - -even though it is explicitly intended to serve
the entire City - -then the least they should be able to expect is an
actual park in return, not merely bare dirt.
We further believe it is clear under state law that a city is not
empowered to require dedication in excess of three acres of land per
1,000 population. The option presented by Mr. Holley is for the City
to exact approximately six acres of land per 1,000 population. We
believe this would clearly contradict state law.
For all these reasons, we ask you not to pursue the proposal for dedi-
cation of raw land presented by Mr. Holley. We do not believe it
would serve anyone's interest and it would be extremely detrimental to
Terra Vista's interest.
Rancho Cucamonga City Council Page 2
February 16, 1983
Concerning the options as to where the additional park land will be
located, we have stated our position that it should be located within
Terra Vista proper rather than on the City Park Site. The Council has
required the opposite. If that condition is to be imposed, we believe
there are several good arguments for locating the park at the
southwest portion of the site, and no good arguments for locating it
anywhere else. First, the homes who will provide this park are
located near the southwest corner of the site. A park at the east and
would do them no good whatsoever. Second, it is a key principle of
the General Plan park and recreation element that all major parks be
located adjacent to the proposed Citywide trail system. If the park
were to start from the east end, it is quite possible that connection
would never be made -- particularly since there is now some discussion
of the entire park being less than 99 acres in size. Third, a loca-
tion at the east end would not be easily developable in the near
future as it lacks essential utilities and infrastructure which have
to be brought in from up to one mile away. The southwest end is near
our first developments and can be served by utilities, etc., that we
will install as we develop Terra Vista.
There are two other points which bear on Mr. Holley's report. First,
as explained in our letter to staff dated February 11, 1983, the total
park requirement has become 55.4 acres as a result of land use changes
made by the Council and consequent adjustments necessary to balance
the plan to 8,000 units. In the text as submitted, as we explained,
we have kept the total park area at 55.8 acres, consistent with your
previous action, but have shown a very small amount of this land in a
different location. The result is 12.8 acres on the City park site.
Second, the value of this land is not $40,000 per acre as assumed. It
is between $50,000 and $60,000 per acre, The "equivalent value" of
raw land, assuming $55,000 per acre land value, would be 24.7 acres
(based on 13.2 acres developed) or 24.0 acres (based on 12.8 acres
developed). However, we reject the notion that there is any equiva-
lence.
We would also like to state for inclusion in the record that we do not
agree that the City has the authority, under the law, to require the
dedication approved by the City Council on February 7, 1983 in that it
is in contravention of the provisions of state law regarding park
credit for private recreation facilities and credit against park
requirements for improvements provided by the subdivider. Further, we
do not agree that the placement of additional park land at the loca-
tion of the City park is consistent with statutory requirements and
planning principles requiring that park dedications be so located as
to reasonably serve the residents of the subdivision providing them.
Our position was explained at the February 7, 1983 meeting, as well as
at previous hearings.
We have submitted revisions to the text consistent with the require-
ments imposed by the City Council at the February 7 hearing. These
revisions themselves were also required by the Council. However, we
do not agree with those conditions and we urge the Council to
reconsider.
Rancho Cucanonga City Council
February 16, 1383
Page 3
As stated above, we do not feel the Council's decision to require
additional park and place it where it did was warranted, and we hope
the Council will reconsider those decisions. However, if the Council
stays with its previous decision, then we very strongly urge that the
changes presented in Ir. Holley's report not be made. I cannot state
too strongly that the "options" of requiring twice as much raw land
rather than a developed park, or locating this park or land at the
east end of the proposed City park site, would be extremely unaccept-
able to our company.
We respectfully urge the City Council to reject the alternatives pre-
sented in Mr. Holley's staff repo,,t.
Very truly yours,
/rnGt
Kay Matlock
Project Manager
20201
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Terra Vista
RANCHO CUCAMONGA, CAIIFORN(A
Community Plan
Lewis Development Co.
of 4;� 1.
Gruen Associates Planning Consultants
P.EDW461) FDR.
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MEMORANDUMS ,
Y �
DATE: February 16, 1983
TO: Members of the City Council
FROM: Tim J. Beedle. Senior Planner
SUBJECT: DOCUMENTATION OF THE MORTGAGE REVENUE BOND PROGRAM
A series of draft agreements and documents have been completed by the
consultant for review by the Agency prior to the time of the final
approval of the Housing Bond Issue. This memo briefly overviews those
agreements and other documentation provided by the Feasibility
Consultant as background information on the market area of demand and
average home price. The documentation provided for review contains
generally routine language used in all housing bond issues. Staff will
review these documents and any necessary additional language or changes
will be noted on the final documents to be reviewed by the .Agency. The
purpose of providing you with this information now is to give you ample
opportunity to review this material. At the Agency's meeting of March
2, 1983 Bond Consultants will be available to answer questions and to
discuss this material.
Final approval of these documents will occur sometime after the March 2
meeting. Once a Purchase Agreement has been completed the Financial
Advisor will review all documents and forward his recommendation to the
Agency prior to their approval. Should you have any questions or
comments, feel free to contact me any time prior to the next Agency
meeting.
The following is a summary of those documents and agreements included
with this memo:
Servicing Agreement. The servicing agreement is a three -party agreement
between a mortgage lender, the redevelopment agency and the trustee,
pursuant to which the mortgage lender agrees to promptly collect and
properly remit the monthly principal and interest payments upon the
mortgage loans. The servicing agreement further includes, among other
things, the compensation to be paid the servicer, the duties of the
servicer with respect to impound accounts, insurance policies, etc., the
obligations of the servicer in the event of a default in the repayment
of the mortgage loan and the rules relating to the assumption of the
mortgage loan.
Members of the City Council
February 10, 1983
Page 2
Mortgage Loan Purchase Agreement. The mortgage loan purchase agreement
is a three - party agreement between the redevelopment agency, the trustee
and a mortgage lender. The agreement provides, generally, that, upo the
completion by the mortgage lender of processing and closing of mortgage
loans, the mortgage lender will submit the mortgage loans to the trustee
for purchase on behalf of the redevelopment agency. The trustee and the
redevelopment agency agree that, if everything is in order with respect
to the mortgage loans, then the trustee will purchase the mortgage loans
on behalf of the redevelopment agency. This agreement also contains
warranties and representations of the mortgage lender and the agreement
of the mortgage lender to repurchase the mortgage loans in the event of
any breach of such warranties and representations.
Commitment Contract. The commitment contract is a three -party agreement
between the redevelopment agency, the developer and the mortgage
lender. The commitment contract generally provides as follows:
1. The redevelopment agency agrees to reserve sufficient of the bond
proceeds to provide funds to purchase the principal amount of
mortgage loans to be generated by the developer's development and
which are to be financed in the program.
2. The developer agrees to use its best efforts to generate the
necessary mortgage loans in accordance with an established schedule
and agrees to secure the developer's performance with cash or a
letter of credit to the extent that there may be a short fall in the
event the developer fails to perform. The developer's schedule
permits the redevelopment agency to invest the bond proceeds until
required under the schedule.
3. The mortgage lender agrees to process the mortgage loans generated
by the developer's building program.
Trust Indenture. The Trust Indenture establishes the rules which
governs the relationship of the Trustee within the Mortgage Bond
Program. The trustee has a dual role with respect to a Mortgage ! oan
Financial Program. The first role is the customary role of a trustee to
collect and disburse funds, to keep appropriate records and generally to
police the performance of bond covenants. The trustees second role is
to make certain that the mortgage loan documentation shows compliance
with all of the restrictions contained in federal and state law.
Market Feasibility Study. The Market Feasibility Study was prepared by
the Feasibility Consultant for review by the Bond Rating Agency. The
purpose of the study is to prepare a comprehensive analysis of all of
the various demographic, economic, financial and other housing related
factors which will influence the demand for housing in Rancho
Cucamonga. A summary of this document is provided with this memo. The
full text is available at city offices.
Members of the City Council
February 10, 1983
Page 3
Average Area Purchase Price Study. The Average Area Purchase Price
Study is prepared by the Feasibility Consultant. Its purpose is to
present an analysis of the average housing price in the San Bernardino
Riverside SMSA area. The results are used as the average home price
limit in Rancho Cucamonga Mortgage Bond. The study indicates the
average price of a new single family home is $92,174.00. A summary of
this document is provided with this memo. The full text is available at
city offices.
TB /kep
cc: Lauren 'Wasserman, City Manager
Jack Lam, Community Development Director
Rick Gomez, City Planner
8818C
SERVICING AGREEMENT
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
RESIDENTIAL MORTGAGE REVENUE BONDS
1983 SERIES A
JHHW:ACH:ea 01/17/83
:ea 01/21/83
This Servicing Agreement is made and entered into as of , 1983,
by and among the Rancho Cucamonga Redevelopment Agency (the "Agency "),
'Trustee "); _ (the "Servicer ") and (the
- - - -—
W I T N ES SETH:
WHEREAS, the Rancho Cucamonga Redevelopment Agency (the "Agency ") proposes
to issue, sell and deliver $ _ principal amount of Residential
Mortgage Revenue Bonds, 1983 Series A (the "Bonds ") for the purpose of providing
funds to purchase mortgage loans (the "Mortgage Loans ") made to provide permanent
financing for residences (the "Residences ") existing or to be constructed within
the boundaries of the Rancho Redevelopment Project Area of the Agency (the
"Residential Mortgage Financing Program ");
WHEREAS, to that end, the Agency on 1983, adopted a Resolution
entitled "A Resolution of the Rancho Cucamonga Redevelopment Agency Authorizing the
Issuance of $ _ Principal Amount of Rancho Cucamonga Redevelopment
Agency Residential Mortgage Revenue Bonds, 1983 Series A, Such Bonds to be Issued
Pursuant to a Trust Indenture Dated as of the Date of the Bonds, Authorizing the
Sale of Such Bonds and Authorizing the Execution of and Approving Implementing
Agreements, Documents and Actions" and, thereafter, entered into a trust indenture,
dated as of 1983, providing for the issuance and security f the
Bonds (the "Indenture "); y
WHEREAS, the Agency has appointed as Trustee
under the Indenture and the Trustee is empowered thereunderto purchase, with the
proceeds of the Bonds, Mortgage Loans on behalf of the Agency from the Lender,
subject, among other things, to certain of the terms and conditions hereinafter set
WHEREAS, the Agency has heretofore entered into agreements with developers
(the "Commitment Contracts ") which have been approved and accepted by the Trustee
and the appropriate Lenders, for the purpose of setting forth, among other things,
the terms and conditions pursuant to which developers of Residences and the Lenders
will deliver Mortgage Loans for purchase by the Trustee on behalf of the Agency and
the Agency will reserve proceeds of the Bonds to provide funds for such purpose;
and
WHEREAS, the Servicer has, as a Lender, heretofore entered into a Mortgage
Loan Purchase Agreement dated as of the date of this Servicing Agreement with the
Agency and the Trustee providing for the purchase of Mortgage Loans by the Trustee
on behalf of the Agency, and the Agency, the Trustee and the Servicer now desire to
provide for the servicing of such Mortgage Loans by the Servicer;
NOW, THEREFORE, in consideration of the terms, conditions and commitments
herein contained, the Agency, the Trustee and the Servicer agree as follows:
1. The Servicer shall service Mortgage Loans in compliance with guidelines
prepared by either the Federal National Mortgage Association ( "FNMA") or the
Federal Home Loan Mortgage Corporation ( "FHLMC ") for servicing the conventional
mortgages, except to the extent that such guidelines conflict with the provisions
of this Servicing Agreement, in which case the provisions of this Agreement shall
prevail. The Servicer shall comply with the requirements of either FNMA or FHLMC
with respect to the maintenance by the Servicer of errors and omission insurance
and fidelity bonds.
The capitaiized terms used in this Servicing Agreement shall have the
meanings provided for such terms in the Indenture unless otherwise herein defined.
In the event that the Servicing Agreement requires any action as of or on any day
which is a non - business day, then such action shall be performed as of or on the
next succeeding business day,
2. In accordance with the provisions contained in the Indenture and the
Agency's Rules and Regulations, the Servicer hereby agrees to use its best efforts
to collect the monthly principal and interest payments on Mortgage Loans purchased
by the Trustee on behalf of the Agency pursuant to the Mortgage Loan Purchase
Agreement heretofore entered into with the Servicer, as a Lender.
3. In consideration for servicing such Mortgage Loans, the Servicer shall
be entitled to retain from that portion, of each Mortgagor's monthly payment
allocable to interest an amount equal to one - twelfth (1 112) of one -fifth (1/5) of
one percent (.20 of 1 %) of the outstanding principal balance of each Mortgage Loan.
Each Mortgage Loan shall provide for a late charge penalty against the Mortgagor
for the monthly payments that are not collected by the Servicer by the 15th of the
month. The late charge shall not exceed 6% of the principal and interest which is
due or such other charge as shall be permitted by law. The Servicer is entitled to
retain the late charge as additional compensation for the Servicer's collection
efforts herein.
4. The Servicer shall exercise all reasonable efforts to collect all
payments due from Mortgagors with respect to such Mortgage Loans, including
insurance premiums and any taxes and similar items required, to the extent
permitted by law, to be deposited in an escrow deposit account. On the 5th day and
the 20th day of each month, the Servicer shall wire transfer to the Trustee all
Mortgage Loan receipts received respectively through the Ist day and through the
15th day of such month less the servicing fee and amounts to be promptly deposited
upon receipt into escrow deposit accounts. However, the Servicer must deposit all
prepayments, net mortgage insurance proceeds, net Hazard Insurance, and Special
Hazard Insurance proceeds and net Mortgage Loan foreclosure or Residence sale
proceeds received by the Servicer, to the extent any such proceeds are in excess of
$2,500, with the Trustee on the next business day following receipt (rather than by
the 5th or 20th day of the month). The Servicer shall be required to deposit all
Mortgage Loan receipts daily with the Trustee, unless the Servicer shall deposit
all Mortgage Loan receipts daily into a custodial account for the benefit of the
Trustee on behalf of the Agency collateralized by Permitted Investments or insured
by the Federal Deposit Insurance Corporation or by the Federal Savings and Loan
Insurance Corporation and at no time shall Mortgage Loan receipts in such account
exceed the insured amount.
5. Servicer shall, to the extent permitted by law, also bill for and
collect all premiums on Hazard Insurance as described in the Mortgage Loan Purchase
Agreement and shall deposit such premiums promptly into an appropriate escrow
deposit account. The Servicer shall pay when due the insurance premiums collected
from the Mortgagor.
When escrowed funds collected from the Mortgagor are insufficient to
pay insu,-ance premiums, when due, Servicer shall attempt to obtain the necessary
additional deposit from the Mortgagor before the last day on which such items may
be paid prior to penalty, lapse of insurance policies or other detriment. Servicer
shall, subject to reimbursement, pay such premiums to protect the Trustee's
interest on behalf of the Agency and, if such payments are made, shall reflect a
deficient balance in the Mortgagor's escrow deposit account.
6. The Servicer shall provide the Trustee and the Agency with a monthly
report by the 20th day of each month covering the financial activities during the
period commencing with the 16th day of the previous month up to and including the
15th day of the then current month of all Mortgage Loans serviced by the Servicer
pursuant to this Servicing Agreement. The monthly report must list delinquencies
and provide a status report on all foreclosure proceedings, if applicable.
7. The Servicer shall file, on or before April 1 of each year, a report for
the period ending on December 31 of the preceding year, with the Trustee and the
Agency showing the financial status of the Mortgage Loans, including principal
outstandina and a status report on any real property acquired by the Agency as a
result of foreclosure of a Mortgage Loan, or otherwise, and, on or before 120 days
after the fiscal year end of the Servicer, a copy of its financial statements for
such fiscal year, together with the report thereon of its independent accountants
and a report from such accountants relative to the examination of its mortgage loan
operations.
8. In order adequately to protect the Trustee's interest on behalf of the
Agency in a Mortgage Loan, Servicer shall, upon becoming aware of facts
constituting the basis of a claim, promptly present claims against insurers to
recover losses covered under Hazard Insurance, Special Hazard Insurance, and
Private Mortgage Insurance policies, and the Servicer shall pursue promptly the
equitable settlement of such claims.
9. In the event of damage to a Residence or losses due to any uninsured
cause, the Servicer may advance its own funds towards the restoration of the
damaged Residence if the Servicer should determine that such an advance will
increase the proceeds to the Trustee and Agency from any sale, after recovery of
such advance by the Servicer, and that such advance is recoverable through sale of
the Residence or insurance settlements.
10. In the event that the Servicer discovers, or is notified by the Agency or
the Trustee that either all or any portion of the Mortgagor's Affidavit executed
pursuant to the Mortgage Loan Purchase Agreement contains any materially incorrect
statement of fact or that the Mortgage Loan has been assumed in violation of
Section 16 hereof, the Lender shall provide notice of default to the Mortgagor,
declare the entire unpaid balance of the Mortgage Loan due and payable within ten
(10) days of said notice, and pursue foreclosure remedies on behalf of the Agency
if the Mortgagor does not pay in full the remaining balance of the Mortgage Loan,
together with accrued interest, within the aforesaid ten (10) day period. In the
event that litigation relating solely to the constitutionality or legality of any
acceleration clause arises from the exercise of such acceleration clause with
respect to a particular Mortgage Loan, the Agency, rather than the Lender, will be
responsible for pursuing said litigation and foreclosure proceedings pursuant to
said acceleration clause but only from Program Revenues available therefor.
11. In the event that a Mortgage Loan becomes a defaulted Mortgage Loan,
including, without limitation, the event of default described in Section 10,
hereof, the Servicer shall certify to the Trustee and to the Agency the name of the
mortgagor and identification number of such defaulted Mortgage Loan and the
principal amount then due on the Mortgage Loan. The Trustee shall, upon receipt of
an Officer's Certificate so directing, execute and deliver to the Servicer, if
required by law, an assignment far collection of the defaulted Mortgage Loan, duly
recorded and documentation, if any, as shall permit the Servicer to proceed,
together with the original promissory note of the Mortgagor, the deed of trust or
other lien instrument evidencing the lien of the Mortgage and the Mortgage
Insurance certificates for which documents the Servicer shall receipt to the
Trustee. The Servicer, at the direction of the Agency, and upon receipt of said
documents from the Trustee, shall diligently take all steps, actions and
proceedings necessary to assign such defaulted Mortgage Loan to the Private
Mortgage Insurer pursuant to the terms of the Mortgage Insurance policy, to
foreclose the lien of the Mortgage, and, upon such assignment or foreclosure,
collect the insurance (in cash) applicable to the defaulted Mortgage Loan. If the
Private Mortgage Insurer shall pay the insurance applicable to the defaulted
Mortgage Loan, but shall determine not to accept an assignment of the Mortgage
Loan, then the Servicer shall liquidate such Mortgage Loan (or, if applicable, the
mortgaged Residence) at the best price reasonably obtainable, including resale of
the Residence to an eligible Mortgagor upon such terms and conditions and with such
financing arrangements as shall be approved by the Agency.
12. If the Servicer shall fail to comply with the requirements of this
Servicing Agreement or with the rules and regulations of the applicable Private
Mortgage Insurer providing the Private Mortgage Insurance, the Trustee on behalf of
the Agency and the holders of the Bonds are entitied to all remedies provided by
law, including without limitation, the right of indemnification for any losses
caused by the Servicer's failure to so comply.
13. The Agency or the Trustee may terminate the Servicer, with or without
cause, following thirty (30) days' written notice, provided that, if termination is
without cause, the Agency shall pay a termination fee equal to one percent (1 %) of
the unpaid principal balance on all outstanding Mortgage Loans then being serviced
by the Servicer. In the event of a dispute with the Agency, the Trustee's decision
to terminate the Servicer •.hall control.
14. Upon the happening of any one or more of the following events this
Servicing Agreement siay be terminated for cause:
(a) Failure by the Servicer to deposit funds as required by this
Servicing Agreement.
(b) Failure by the Servicer duly to observe or perform in any material
respect any other covenant, condition or agreement in this Agreement to be observed
or performed, other than as referred to in subparagraph (a) of this paragraph, for
a period of thirty days after written notice, specifying such failure and
requesting that it be remedied, given to the Servicer by the Agency and the
Trustee, unless the Agency and the Trustee shall agree in writing to an extension
of such time prior to its expiration; provided, however, if the failure stated in
the notice cannot be corrected within the applicable period, the Agency and the
Trustee will not unreasonably withhold their consent to an extension of such time
if corrective action is instituted by the Servicer within the applicable period and
diligently pursued until the default is corrected.
(c) A decree or order of a court or agency or supervisory authority
having jurisdiction in the premises for the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceedings, or for the winding up or liquidation
of its affairs, shall have been entered against the Servicer and such decree or
order shall have remained in force undischarged or unstayed for a period of sixty
days.
(d) The Servicer shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceedings of or relating to Servicer or of or
relating to all or substantially all of its property.
(e) The Servicer shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any applicable
insolvency or reorganization statute, make an assignment for the benefit of its
creditors, or voluntarily suspend payment of its obligations.
(f) Either the Agency or the Trustee shall determine that any
representation of or warranty by the Servicer to the Agency or the Trustee is false
in any material respect,
15. Upon termination of the Servicer, with or without cause, the Trustee on
behalf of the Agency, shall terminate all the Servicer's rights and obligations
concerning the servicing of the Mortgage Loans and shall take whatever other legal
action is necessary to collect the amounts due the Agency from the Servicer.
During termination proceedings and following termination of this Servicing
Agreement with the Servicer, the Trustee shall succeed to all rights and
obligations of the Servicer regarding servicing of the Mortgage Loans. If the
Trustee is unwilling or unable to perform as Servicer, the Trustee shall appoint or
petition a court of competent jurisdiction to appoint a Servicer acceptable to the
Agency. The Agency co,enants and agrees to reimburse the Trustee, from surplus
revenues for any and all reasonable expenses incurred by the Trustee in either
appointing a substitute Servicer or undertaking the servicing function itself. In
the event that the then generally prevailing fee paid to servicers of conventional
single - family home mortgages in the area exceeds the servicing fee provided for
herein, the Agency agrees to pay the substitute Servicer or the Trustee, as the
case may be, the amount of such excess as additional compensation over and above
that which is provided for herein; provided, however, that the Agency's obligation
to make such payments shall he limited to the amount of surplus revenue, if any,
available to the Agency pursuant to the Indenture.
16. The Agency shall not approve an assumption of a Mortgage Loan, except
as hereinafter provided.
The Servicer agrees to (i) provide an applicant with a form of application
for approval of a Mortgage assumption; (ii) advise the applicant to complete and
return such form directly to Servicer; (iii) obtain information with regard to the
assumption including an executed copy of the contract of sale, written verification
of the applicant's current employment and income whenever the credit reporting
agency is unable to verify those items, and the income tax returns for the previous
three calendar years; (iv) advise an applicant of the information and approvals, if
any, Servicer must obtain or cause to be obtained in order for the application to be
evaluated; and (v) comply with the requ •�rements of any applicable law or
regulation, including the provisions of this Agreement relating to assumption.
The Servicer agrees to obtain promptly (i) a current credit report on the
applicant (ii) written approval of the Private Mortgage Insurer, or commitments to
insure, when applicable; and (iii) a verification or acceptable evidence of the
source and amount of the down payment and payment of prepaid items to substantiate
such information as shown in the application for approval c- a loan assumption.
Any costs and expenses incurred in connection with obtaining the foregoing shall be
borne by the applicant and Servicer may request reimbursement from the applicant
for costs and expenses incurred by Servicer in processing the request for
assumption.
The Servicer has the authority to approve an application for a Mortgage Loan
assumption only in the event that the Agency has approved such application and in
the event that the following conditions are met:
(1) Either the Residence is located within the limits of the Rancho
Redevelopment Project Area of the Agency and, if applicable,
the applicant constitutes an Income Qualified Person or Family
based on income limits in effect at the time of the assumption.
(2) The dwelling unit will be occupied by the Mortgagor as the
Mortgagor's principal place of residence within sixty (60) days
following execution of the Mortgage Loan and that the Mortgagor
intends to occupy the Residence so long as the Mortgage Loan is
outstanding.
(3) The Mortgagor has had no Present Ownership Interest in a
principal residence at any time during the three (3) year period
prior to the date on which the Mortgage is executed.
(4) The Acquisition Cost of the Residence does not exceed the
applicable Average Area Purchase Price limitation at the time
of assumption.
(5) The Mortgage Insurer providing Private Mortgage Insurance has
approved the assumption and commitments to insure are obtained.
(6) The credit report on the applicant and other information
possessed by Servicer reveal no adverse credit conditions which
would affect applicant's stable monthly income.
(7) There are no changes in the terms of the Mortgage Loan other
than the Mortgagor.
If an application conforms to the conditions outlined above in subparagraphs
(1) through (7) and Servicer approves the application for the Mortgage Loan
assumption, Servicer shall submit the application to the Agency for approval.
The Agency will evaluate applications for approval of a Mortgage Loan
assumption on an individual basis, and Servicer agrees to concur in, and implement,
the decision reached by Agency as to the assumption. The Agency will notify
Servicer of the decision reached by the Agency with regard to an application for
approval of a Mortgage Loan assumption, and Servicer agrees to notify the applicant
promptly of the Agency's decision and, if the assumption is not approved, of the
reasons for such decision. The Agency will return to Servicer to be retained by
Servicer as hereinafter provided all documents supplied by Servicer to the Agency
in connection with the application for Mortgage Loan assumption approval.
The Agency will consent and will direct the Trustee to consent to the
release of the original obligor upon assumption by a satisfactory Mortgagor.
The Servicer shall make any disclosure and perform any acts necessary to
comply with the requirements of any applicable law and regulation including, but
not limited to, the Truth in Lending Act. Servicer shall assure that all insurance
policies reflect the new ownership and take any action necessary to continue the
benefits of Private Mortgage Insurance without interruption.
As a part of the application, the Servicer shall obtain an affidavit of the
proposal of a Mortgagor substantially in the form described in Section 3(A) of
Exhibit A of the Mortgage Loan Purchase Agreement and an affidavit of the seller of
the Residence substantially in the form described in Section 3(B) of said Exhibit
A, and at the time of submission of the application to the Agency, the Servicer
shall provide the Statement of Representation and Warranty substantially in the
form referred to in Section 3(0) and Section 4 of said Exhibit A. At the time of
approval of said assumption, the Agency shall provide the foregoing to the Trustee,
together with an Officer's Certificate substantially in the form described in
Section 3(C) of Exhibit A.
IN WITNESS WHEREOF the parties hereto have caused this Servicing Agreement
to be executed in their names by an officer thereunto duly authorized on the dates
hereinafter set forth,
Date
THE SERUTCER
Date RANCHO CUCAMONGA REDEVELOPMENT AGENCY
By
Title
Date
—` THE TRUSTEE
Title
8868C
JHHW:ACH:ea 01/19/83
:ea 01/21/83
:ea 02/03/83
HOME MORTGAGE PURCHASE AGREEMENT
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
RESIDENTIAL MORTGAGE REVENUE BONDS
1983 SERIES A
RESIDENTIAL MORTGAGE FINANCING PROGRAM
This Mortgage Loan Purchase Agreement is made and entered into as of
1983, by and between the Rancho Cucamonga Redevelopment Agency
(the "Lender ") and
(the "Trustee ");
W-1 T NE S S E T H
WHEREAS, the Rancho Cucamonga Redevelopment Agency (the "Agency ") proposes
to issue, sell and deliver 5 principal amount of Residential
Mortoage Revenue Bonds, 1983 Series A (the Bonds ") for the purpose of providing
funds to purchase mortgage loans (the "Mortgage Loans ") made to provide permanent
financing for residences (the "Residences ") existing or to be constructed within
the boundaries of the Rancho Redevelopment Project Area of the Agency (the
"Residential Mortgage Financing Program ");
WHEREAS, to that end, the Agency on 1983, adopted a Resolution
entitled "A Resolution of the Rancho Cucamonga Redevelopment Agency Authorizing the
Issuance of b Principal Amount of Rancho Cucamonga Redevelopment
Agency Resiaential Mortgage Revenue Bonds, 1983 Series A, Such Bonds to be Issued
Pursuant to a Trust Indenture Dated as of the Date of the Bonds, Authorizing the
Sale of Such Bonds and Authorizing the Execution of and Approving Implementing
Agreements, Documents and Actions" and, thereafter, entered into a trust indenture,
dated as of , 1983, providing for the issuance and security of the
Bonds (the 1 Fn antur e ")t
WHEREAS, the Agency has appointed as Trustee
under the Indenture and the Trustee is empowered thereunder to purchase, with the
proceeds of the Bonds, Mortgage Loans on behalf of the Agency from the Lender,
subject, among other things, to certain of the terms and conditions hereinafter set
forth;
WHEREAS, the Agency has heretofore entered into agreements with developers
(the "Commitment Contracts "), which have been approved and accepted by the Trustee
and the appropriate Lenders, for the purpose of setting forth, among other things,
the terms and conditions pursuant to which developers of Residences and the Lenders
will deliver Mortgage Loans for purchase by the Trustee on behalf of the Agency and
the Agency will reserve proceeds of the Bonds to provide funds for such purpose;
and
WHEREAS, the Agency intends to purchase, with the proceeds of the Bonds
Mortgage Loans originated with respect to certain projects of developers;
NOW, THEREFORE, in consideration of the terms, conditions and agreements
herein set forth, the Agency, the Lender and the Trustee agree as follows:
1. Definitions. The capitalized terms used in this Mortgage Loan Purchase
Agreement shall have the meanings provided for such terms in the Indenture.
2. Agreement to Originate. The Lender will use its best efforts to
originate S principal amount of Mortgage Loans as described in the
Commitment Contracts, and present such Mortgage Loans to the Trustee for purchase
within a period terminating . The Agency and the Trustee agree to
reserve from the proceeds of the Bonds, moneys in said principal amount (subject to
any modification of said amount as may be permitted hereunder) in order to provide
funds with which the Trustee may purchase such Mortgage Loans on behalf of the
Agency.
3. Origination Procedure and Documents. Unless otherwise set forth in
this Agreement, Mortgage Loans shall be originated in compliance with underwriting
criteria and practice of either Federal National Mortgage Association ( "FNMA ") or
the Federal Home Loan Mortgage Corporation ( "FHLMC"). The Lender shall comply with
the requirements of either FNMA or FHLMC with respect to maintenance by the Lender
of the errors and omission insurance and fidelity bonds. In originating Mortgage
Loans the Lender shall obtain the documents and follow the procedures set forth in
Exhibit A attached hereto and by this reference incorporated herein.
4. Requirements Rega rding Mortgage Insurance. All Mortgage Loans shall be
insured by Private Mortgage Insurance in an amount equal to the initial principal
balance of the Mortgage Loan, Private Mortgage Insurance shall include advance
payment, attorneys' fees limit waiver, due- on-sale clause waiver and non - monetary
default amendatory endorsements as described in Exhibit A.
The premium for Private Mortgage Insurance shall be collected and paid
as provided in the Servicing Agreement to be executed with the Lender.
5. Stated Interest Rate. All Mortgage Loans purchased by the Trustee on
behalf of the Agencv shall hear an annual interest rate of % per annum and
shall be purchased at a price equal to % of the principal balance thereof.
Interest payable on a Mortgage Loan is subject to the "Buydown" provisions
contained in paragraph 9 of the Commitment Contract (and Reservation of Funds).
E. Mortgage Loan Term Optional Payment Penalties. Each Mortgage Loan
purchased by the Trustee from moneys in the Mortgage Loan Purchase Account shall
have an amortization period of thirty (30) years. Subject to the hereinafter
provided option to make an additional payT t at the time of origi,.ation of a
Mortgage Loan, each Mortgage Loan shall provide a prepayment penalty for principal
payments that accelerate the original amortization schedule of the Mortgage Loan.
During the first five years of the life of such Mortgage Loan, each mortgagor shall
be subject to a prepayment penalty on all principal paid in a twelve month period in
excess of twenty percent (20 %) of the original principal amount of the Mortgage
Loan Loan. The penalty to be collected from the mortgagor for any such prepayment
shall equal six months' interest calculated at the annual interest rate that such
Mortgage Loan bears and the penalty shall be applied against principal paid in
excess of the allowed 20- per year collected from the mortgagor. No prepayment
penalty is allowed after the fifth year of the Mortgage Loan. If concurrently with
the purchase of a Mortgage Loan the Trustee shall receive from the Lendet an
additional payment equal to of the initial principal amount of a
Mortgage Loan, then the Mortgage Loan shall not provide for the above described
prepayment penalty.
7. Compliance with the Act's Restrictions on Mortgage Loans.
The Trustee may only purchase Mortgage Loans which are secured by
Residences which have not been previously occupied.
With respect to $ principal amount of Mortgage Loans, the
Trustee may only purchase Mortgage Loans secured by Residences which have been
purchased by Income Qualified Persons and Families, namely persons and families
whose Household Income does not exceed 120% of the median
household income set forth in the applicable Commitment Contract.
8. _Down Payment Criteria. The Mortgagor shall pay a down payment in cash
of at least 5° of the purchase price of the Residence.
9. Assumption of Mortgage Loans. The Agency shall not consent to the
assumption of a Mortgage Loan unless there is filed with the Trustee, together with
a request from the Lender for such assumption, the documents described in the
applicable Servicing Agreement.
10. Origination Fee. The Lender shall charge the Mortgagor an origination
fee of not to exceed ( _%) of the principal amount of
the Mortgage Loan, plus customary closing costs, for example, title insurance,
credit reports, recording fees and other customary charges in an amount not in
excess of usual and reasonable amounts incurred in connection with mortgage loans
where financing is not provided through the use of qualified mortgage bonds, as
that term is used in Section 103A of the Code. Nothing herein shall prevent the
Lender from entering into a "warehousing" arrangement with the Developer with
respect to a Mortgage Loan, at the cost of the Developer, for a period not to exceed
six (6) months prior to the purchase of the Mortgage Loan by the Trustee.
11. "Re resentations Applicable on Delivery of Mortgage Loans. The following
representation shall be deemed to be made to the Agency and to the Trustee by the
Lender at the time the Trustee purchases the Mortgage Loan on behalf of the Agency,
namely, that no facts have come to the attention of the Lender which would cause the
Lender to disbelieve or doubt the truth of the following facts with respect to such
Mortgage Loan:
(A) The Mortgage Loan is secured by Mortgage upon a Residence which is
located within the boundaries of the Rancho Redevelopment Project Area and, if
applicable, the Mortgagor is an Income Qualified Person or Family as determined
from time to time by the Agency, as set forth in the Rules and Regulations.
(B) The Residence will be occupied by the Mortgagor as the Mortgagor's
principal place of residence within sixty (60) days following execution of the
Mortgage Loan and the Mortgagor intends to occupy the Residence so long as the
Mortgage Loan is outstanding.
(C) The Mortgagor does not expect to use the Residence in his or her trade
or business or as an investment property or as a recreational home, nor does the
Mortgagor expect that the land appurtenant to the Residence will provide, other
than incidentally, a source of income to the Mortgagor.
(0) Unless the Mortgage Loan is being purchased with the last 10% of a
developer's Reservation pursuant to the applicable Commitment Contract, the
Mortgagor has had no Present Ownership Interest in a principal residence at any
time during the three (3) year period prior to the date on which the Mortgage is
executed.
(E) The Acquisition Cost of the Residence does not exceed one hundred ten
percent (110 %) of the Average Area Purchase Price at the time the Mortgage Loan is
executed.
(F) The Mortgagor has not entered into any agreement with the developer of
the Residence, the contractor, or any other person pursuant to which the Mortgagor
has agreed to pay moneys in excess of the Acquisition Cost of the Residence (other
than rentals, in an amount not to exceed the fair rental value of the Residence as
determined by the Lender, pursuant to a temporary rental agreement with the seller
pending purchase by the Trustee on behalf of the Agency of the Mortgage Loan
secured by the Residence) or pursuant to which any portion of the Residence has
been left unfinished or any fixtures or other architectural appointments have been
omitted or removed from the Residence in order to reduce the Acquisition Cost.
(G) The Residence is not located on leased land or, if the Residence is
purchased subject to any ground lease, then the capitalized value of such ground
lease has been included in the Acquisition Cost.
(H) The Mortgagor has not been a party to a deed of trust, conditional
sales contract, pledge, agreement to hold title in escrow or any other form of
owner- financing (whether or not paid off) on the Residence at any time prior to
execution of the Mortgage Loan.
(I) The Mortgagor will not use any portion of the proceeds of the Mortgage
Loan to acquire or replace an existing mortgage or deed of trust, other than
construction or other temporary financing not to exceed two (2) years.
(J) The Mortgagor has read the affidavit submitted pursuant to paragraph
(A) of Section 3 of Exhibit A (the "Mortgagor's Affidavit ") and the definitions of
Present Ownership Interest, Acquisition Cost and Average Area Purchase Price
included in the Mortgagor's Affidavit.
(K) Authorized representatives of the Lender have conducted investigations
to assure the truth of the facts contained in the Mortgagor's Affidavit at the time
of execution of the Mortgage and the Mortgagor has provided such information or
access to such information, as deemed appropriate by the Lender in connection with
its investigation.
(L) For purposes of the foregoing, the Lenders'. investigation with
respect to the tax returns of the Mortgagor (excluding a Mortgage Loan purchased
with the last 10% of a developer's Reservation) shall be deemed to be sufficient if
the Lender complies fully with the requirements of Revenue Procedure 82 -16-. as
published in Internal Revenue Bulletin No. 1982 -9, the text of which is attached
hereto as Exhibit E, or any successor regulation, ruling or procedure promulgated
by the Internal Revenue Service.
(M) The Mortgagor has been informed that in the event that the Agency or
the Lender discovers that the Mortgagor's Affidavit contains any materially
incorrect statement of fact, the Mortgage Loan will be immediately due and payable
in full without further notice, grace period, extension of time or opportunity to
correct or cure.
(N) The Mortgagor has by oath before a notary public sworn (or affirmed) to
truth of the Mortgagor's Affidavit, has been informed that perjury is punishable by
imprisonment in the state prison, for up to four years and has been informed that
falsification of the Mortgagor's Affidavit may cause the Mortgagor to be liable in
a civil suit for monetary damages.
(0) The Residence is a single-family Residence, the construction of which
is complete. Unless the Lender shall have actual knowledge to the contrary, a
certificate of occupancy, or its equivalent, issued by the City of Rancho Cucamonga
shall be conclusive as to the completion of the Residence.
(P) All of the land being sold or leased with the Residence reasonably
maintains the basic livability of the Residence, and the land is not subject to
further subdivision.
(Q) The settlement and financing costs do not exceed the usual and
reasonable costs that would be paid by the Mortgagor where financing was not
provided through the Bonds.
(R) The seller of the Residence to be secured by the Mortgage Loan has read
the affidavit submitted pursuant to paragraph (B) of Section 3 of Exhibit A (the
Seller's Affidavit "), and the definitions of Acquisition Cost and Average Area
Purchase Price included in the Seller's Affidavit.
(S) Authorized representatives of the Lender have conducted investigations
to assure the truth of the aforementioned facts at the time of execution by the
seller of the Seller's Affidavit and that the seller has provided such information
or access to information, including but not limited to business records of the
seller, as the Lender deemed appropriate in connection with its investigation.
(T) The seller has by oath before a notary public sworn (or affirmed) to
the truth of the Seller's Affidavit, has been informed that perjury is punishable
by imprisonment in the state prison for up to four years and has been informed that
falsification of the Seller's Affidavit may cause the seller to be liable in a
civil suit for monetary damages.
(U) The Lender has no knowledge of any circumstances or conditions with
respect to the Mortgage Loan or the Mortgagor that could reasonably expect it to
cause private investors to regard the Mortgage Loan as an unacceptable investment,
cause the Mortgage Loan to become delinquent, or adversely affect the value or
marketability of the Mortgage Loan, except that the annual interest rate on the
Mortgage Loan may be a below-market interest rate.
(V) There has been full compliance with the relevant requirements of any
State or Federal laws, rules or regulations governing consumer credit and fair
housing.
(W) If any document required by Exhibit A is defective on its face in any
material respect, the Lender shall cure the defect within a period of sixty (60)
days from the time the Trustee notifies the Lender of the existence of the defect
and if such material defect cannot be cured within such sixty day (60) day period,
the Lender will, not later than ninety (90) days after the Trustee's notice to it
respecting such defect, repurchase such Mortgage Loan from the Trustee at a price
equal to one hundred percent (100°;) of the principal remaining unpaid on such
Mortgage Loan plus accrued and unpaid interest thereon to the date of repurchase.
(X) In the event that the servicer of the Mortgage Loan discovers, or is
notified by the Agency or the Trustee that either all or any portion of the
Mortgagor's Affidavit executed pursuant to the Mortgage Loan Purchase Agreement
contains any materially incorrect statement of fact, that the Mortgage Loan has
been assumed in violation of paragraph 9 hereof, the Lender shall provide notice of
default to the Mortgagor, declare the entire unpaid balance of the Mortgage Loan
due and payable within ten (10) days of said notice, and pursue foreclosure
remedies on behalf of the Agency if the Mortgagor does not pay in full the remaining
balance of the Mortgage Loan, together with accrued interest, within the aforesaid
ten (10) day period.
(Y) The Lender is aware that perjury by a representative of the Lender may
subject such representative to criminal prosecution and to imprisonment in the
state prison for up to four years and that falsification of any representation or
warranty may cause the Lender to be liable in a civil suit for monetary damages.
12. Representations Applicable in Execution of this Agreement. The Lender
represents and warrants to and covenants with the Agency and in order to induce
the underwriters for which Stone & Youngberg is acting as the Manager (the
"Purchasers ") to execute and deliver a purchase contract (the "Purchase Contract ")
relating to the Bonds, represents and warrants to and covenants for the benefit of
the Purchaser, as follows:
(a) The Lender has carefully reviewed the description of the Lender
and its mortgage loan origination and servicing operations contained in the
Preliminary Official Statement prepared by the Agency for use in distributing the
Bonds and heretofore presented to the Lender. Such description does not contain
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made, in light of the circumstances under
which they were made, not misleading.
(b) There has been no material adverse change in the financial
position, business, properties, or results of operations or mortgage loan
origination and servicing operations of the Lender since the dates as of which
information with respect thereto is given in the Preliminary Official Statement.
(c) Except as set forth in the Preliminary Official Statement, there
is no action, suit, proceeding, inquiry or investigation at law or in equity or
before or by any public board or body pending or to the knowledge of the Lender
threatened against or affecting the Lender or any basis therefor, wherein an
unfavorable decision, ruling or finding would adversely affect the transactions
contemplated on the part of the undersigned by the Preliminary Official Statement.
(d) The carrying out by the Lender of the transactions contemplated by
the Preliminary Official Statement will not violate the charter or bylaws of the
Lender, or any court order by which the Lender is bound, and such transactions will
not violate the provisions of, or constitute a default under, any agreement,
indenture, mortgage, lease, note or other obligation or instrument to which the
Lender is a party and, except as indicated in the Preliminary Official Statement,
no approval or other action by any governmental authority or agency is required in
connection therewith.
(e) The Lender will deliver or cause to be delivered all opinions,
letters and other documents required on its part under the Purchase Contract,
including a representation letter and an opinion of its counsel, both dated as of
the date of delivery of the Bonds to the Purchaser substantially in the forms set
forth respectively, as Exhibits C and D to this Mortgage Loan Purchase Agreement.
13. Termination of Lender. The Agency or the Trustee may terminate the
Lender for nonperformance of any provision of this Agreement upon ten (10) days
written notice to said Lender provided that at the time of termination the Agency
shall substitute a lender qualified in accordance with the requirements of the
Indenture. In the event of a dispute between the Agency and the Trustee with
respect to the termination of a Lender, the Trustee's decision shall control.
14. Pledge or Assi ng ment. The Agency may at any time assign or pledge for
the benefit and security of the holders of Bonds any or all of its rights under this
Agreement, and thereafter this Agreement shall not be terminated, modified or
changed by the Agency or the Lender except in the manner, if any, imposed by the
terms and provisions of such assignment or pledge. The Lender may not assign or
transfer any of its rights or interest pursuant to this Agreement without the prior
written consent of the Agency.
15. Governing Law. All questions with respect to the construction of this
Agreement, and the rights and liabilities of the parties hereto, shall be governed
by the laws of the State of California.
16. Paragraph Headings_and References. The headings of the several
hereof paragraphs shall 5e solely for convenience of reference and shall not affect
the meaning, construction or effect of this Agreement.
17. Severability. If any term or provision of this Agreement or the
application thereof shall to anv extent be invalid or unenforceable, the remainder
of this Agreement, or the application of such term or provision to circumstances
other than those to which it is invalid or unenforceable, shall not be affected
thereby, and shall be enforced to the extent permitted by law. To the extent
permitted by applicable law, the parties hereby waive any provision of law which
would render any of the terms of this Agreement unenforceable.
18. Waiver. No failure on the part of any party hereto to enforce any
covenant or provision herein contained, or any waiver of any right hereunder, shall
discharge or invalidate such covenant or provision or affect the right of such
party to enforce the same in the event of any subsequent breach or default; failure
to demand strict performance of any covenant or condition of this Agreement shrill
not be deemed a waiver of such covenant or condition.
19. Indemnity. The Lender..shall indemnify the Agency and hold it harmless of
and from any and all loss, penalty, fine, forfeiture, reasonable attorneys' fees,
damage or expense that any of them may sustain or incur as a result of any failure
on the part of the Lender to perform its services, duties and obligations under the
terms and provisions of this Agreement.
20. Time. Time is of the essence of this Agreement.
21. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, and such counterparts shall constitute one
and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Mortgage Loan
Purchase Agreement to be executed in their names by an officer unto duly authorized
on the dates hereinafter set forth.
THE LENDER
By _
Title
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
By —
Title
THE TRUSTEE
By
Ti
8
EXHIBIT A
1. Documents Pertaining to Compliance with the Act. Prior to application
of moneys in the Mortgage Loan Purchase Account to the purchase of any Mortgage
Loan, the Trustee shall have received an affidavit executed under penalty of
perjury by the Mortgagor, together with a Statement of Representation and Warranty
executed by an authorized representative of the Lender from whom the Trustee is
purchasing the Mortgage Loan, each stating, among other things, that, if
applicable, the Mortgagor constitutes an "Income Qualified Person or Family" and
that the Residence is located within the boundaries of the Rancho Redevelopment
Project Area of the Agency.
2. Documents Pertainino Princi ally to compliance with Other Applicable
State Laws. Prior to application of moneys in the Mortgage Loan Purchase Account
to the purchase of any Mortgage Loan, the Trustee shall have received with respect
to such Mortgage Loan and to the Residence securing repayment of such Mortgage
Loan:
(A) A final subdivision report applicable to the Residence issued by
the Department of Real Estate of the State of California; and
(B) A certificate of occupancy or its equivalent issued by the
appropriate City official stating that the Residence, or, if applicable, the
building within which such Residence is located has been finally inspected by
either the City of Rancho Cucamonga and is released for occupancy.
3. Documents Pertaining to Compliance with Tax Act. Prior to application
of moneys in the Mortgage Loan Purchase Account to the purchase of any Mortgage
Loan, the Trustee shall have received with respect to such Mortgage Loan and to the
Residence securing repayment of such Mortgage Loan:
(A) An affidavit, in the form attached hereto as Exhibit B, and hereby made
a part hereof, executed by the Mortgagor under penalty of perjury and following
oath or affirmation before a notary public.
(B) An affidavit, in the form attached hereto as Exhibit C, and hereby made
a part hereof, executed by the developer or other seller of the Residence under
penalty of perjury and following oath or affirmation before a notary public.
(C) An Officer's Certificate executed on a date prior to the date of
purchase of the Mortgage Loan by the Trustee stating:
(1) that he or she has read the affidavits referenced in paragraphs
(A) and (B) above and such affidavits are in form and substance required by the
provisions of this Mortgage loan Purchase Agreement;
(2) that he or she is informed that the applicable Lender has
conducted an investigation, as agent for the Agency, regarding the truth of the
facts set forth in said affidavits;
Exhibit A
1
(3) that no facts have come to the attention of the Authorized Officer
executing the Officer's Certificate which would cause him or her to disbelieve or
doubt the truth of the affidavit or of any portion thereof; and
(D) A Statement of Representation and Warranty executed by an authorized
representative of the Lender from whom the Trustee is purchasing the Mortgage Loan
stating, among other things:
(1) that he or she has read the affidavits referenced in paragraphs
(A) and (B) above and such affidavits are in form and substance required by the
provisions of this Mortgage Loan Purchase Agreement;
(2) that he or she has conducted or has caused to be conducted an
investigation regarding the truth of the facts set forth in said affidavits, which
investigation complies with the requirements of the Mortgage Loan Purchase
Agreement to which said Lender is a party and investigation included (unless the
Mortgage Loan is being purchased with the last 10% of a developer's Reservation) an
examination of copies of signed income tax returns which were filed with the
Internal Revenue Service and were provided by the Mortgagor and which returns
indicated that during the preceding three years, the Mortgagor did not claim
deductions for taxes or interest on indebtedness with respect to real property
constituting the principal residence of the Mortgagor or which investigation
otherwise complied with Revenue Procedure 82 -16 as required by the Mortgage Loan
Purchase Agreement - the text of Revenue Procedure 82 -16 is attached to this
Mortgage Loan Purchase Agreement as Exhibit E;
(3) that no facts have come to the attention of said authorized
representative as a result of said investigation or otherwise which would cause him
or her to disbelieve or doubt the truth of the facts set forth in such affidavits;
(4) that the Mortgage Loan has attached thereto as a part thereof the
"Riders" described in Exhibit F hereto; and
(E) A certificate of compliance relating to the applicable Mortgage Loan
provided in accordance with the Compliance Areement.
Procedures for Mortgage Loan Purchases and Disbursements.
(A) Mortgage Loan Application Pa ckage. With respect to each application
for a proposed Mortgage Loan submitted to the Lender by a developer pursuant to a
Commitment Contract (and Reservation of Funds), the Lender shall prepare a Mortgage
Loan application package (the "Application Package "), The Application Package
shall include, among other things, the analysis prepared by the Lender, the
appraisal report on the Residence, the credit report on the Mortgagor, the
Mortgagor's Affidavit, the Seller's Affidavit and a certificate or a form of
commitment of a Private Mortgage Insurer to insure the Mortgage Loan. The Lender
shall be entitled to charge a prospective Mortgagor an application fee of $100.00
at the time the Lender receives the initial application. Otherwise, the $100.00
application fee shall be credited to the percent ( _%)
origination fee referred to in paragraph 10 of the Agreement. The Lender agrees to
exercise its best efforts to expedite the preparation of the Application Package.
Exhibit A
2
Once the Lender has received the appropriate insurance certifications or
commitments and credit verifications necessary to complete the Application
Package, the Lender shall promptly determine whether or not to fund the Mortgage
Loan. Following the Lender's determination to fund a Mortgage Loan, the Lender
shall forward the Application Package to the Agency [and to the Compliance Agent?]
and shall notify the developer (seller) of its determination.
The Application Package shall be prepared in accordance with current
FNMA or FHLMC guidelines and practice which provide further criteria with respect
to eligible Mortgagors and Mortgage Loans.
(B) Devel°aer's Request for Closing Documents - Funding Date. Following
approval by the Lender of the funding of the Mortgage Loans the applicable
developer (seller) may request closing documents, and upon request of the
applicable developer (seller) for closing documents, the Lender shall notify the
Trustee to have available funds in an amount sufficient to purchase such Mortgage
Loan on the hereinafter described Funding Date, and shall prepare and the Lender
shall deliver the closing instructions described in subparagraphs (E) and (F) to
the escrow agent handling the sales escrow for the applicable Residence (the
"Escrow Company" - which may be the Title Company hereinafter referred to). The
developer (seller) is entitled to request closing documents from the Lender for an
estimated funding date (the "Funding Date ") for delivery of funds by the Trustee
for purchase of a Mortgage Loan on a date which is either the second Thursday or the
fourth Thursday of the month and which is not less than fifteen (15) business days
subsequent to the date of the developer's request for closing documents.
(C) Agency Review of Application. The Agency shall review the Application
Package and render its decision as to whether or not to purchase the applicable
Mortgage Loan within five (5) business days following receipt of the Application
Package, The Agency will approve the purchase of all applicable Mortgage Loans
which qualify under the requirements of the Indenture, the Residential Mortgage
Financing Program, the Commitment Contract (and Reservation of Funds), this
Mortgage Loan Purchase Agreement and the FNMA or FHLMC guidelines and practice.
Failure by the Agency to requisition the Trustee to purchase a Mortgage Loan by the
close of the fifth business day following the date of receipt of the Application
Package shall be deemed to be approval of the purchase of the Mortgage Loan by the
Agency. (Hereinafter, approval by the Agency means actual approval or approval by
reason of failure to disapprove by the close of the fifth business day.)
(D) A enc Requisition. Promptly following approval by the Agency of the
purchase of the Mortgage Loan, the Agency shall deliver to the Trustee, to the
Compliance Agent and to the Lender a Requisition identifying
(a) the Mortgagor, the Mortgage and the Residence to be subject to
the lien of the Mortgage;
(b) the Lender to whom payment is to be made for the purchase of the
Mortgage Loan pursuant to the Mortgage Loan Purchase Agreement;
Exhibit A
3
(c) the amount of such payment which shall be equal to % of the
principal amount of the Mortgage Loan, plus accrued interest to
the date of purchase of the Mortgage Loan by the Trustee; and
(d) the requested Funding Date on which such payment is to be made;
(e) together with an Officer's Certificate containing a statement
of compliance of the form and substance of the Mortgagor's
Affidavit and the Seller's Affidavit with the requirements of
this Mortgage Loan Purchase Agreement and with the Indenture.
(E) Lender Prepared Documents. The Lender shall deliver as closing
documents to the Escrow Company the following Mortgage Loan purchase documents:
(a) The form of the mortgage note and Mortgage which shall have
attached thereto as "Riders" the provisions set forth as Exhibit F
hereto permitting acceleration in certain cases of a non-monetary
default of the Mortgage Loan or an improper assumption of the
Mortgage Loan; and
(b) Other customary closing documents, including "Truth in Lending"
documents, a Mortgage Loan settlement statement and the Lender's
closing instructions to the Escrow Company.
F. Closing_Instructions. (1) The Lender's closing instructions shall
provide, among other things, that the Escrow Company shall not close the applicable
escrow and disburse funds unless and until the Escrow Company has received the
following documents:
(a) The Mortgagor's cash or check as the Mortgagor's down payment
upon the purchase price of the applicable Residence and the original
mortgage note to be secured by the lien of the Mortgage identified in
the Requisition, duly executed by the Mortgagor and endorsed by the
Lender to the Trustee, on behalf of the Agency.
(b) The Mortgage (deed of trust) fully executed in recordable form
by the Mortgagor and an assignment of such Mortgage executed in
recordable form by the Lender to the Trustee, on behalf of the
Agency, such Mortgage and assignment to be either (i) duly recorded
in the office of the County Recorder of the County in which the
Residence is located, as evidenced by a document stamped of record or
by certification of the Escrow Company or the Title Company, or (ii)
so executed in recordable form, accompanied by irrevocable
instructions of the Lender, Mortgagor and developer (seller)
authorizing the Escrow Company so to record such assignment upon
closing of the escrow and disbursement of funds.
(c) A current American Land Title Association Mortgagee title
insurance policy containing unmodified Indorsements 100, and 116
(with respect to single-family residences) or 116.2 (with respect to
condominium units), duly assigned to the Trustee by the terms of such
Exhibit A
4
policy or by endorsement of the title insurance company (the "Title
Company ") or the irrevocable agreement of the Title Company to so
endorse such assignment for the benefit of the Trustee, on behalf of
the Agency, insuring title to the mortgaged Residence as being vested
in the Mortgagor and insuring that the lien of the Mortgage is
subject only to Permitted Encumbrances (as defined in the
Indenture), and issued in the face amount of the Mortgage Loan by a
Title Company qualified to do business in the State and selected by
the Lender, or, in lieu of the foregoing described policy of
Mortgagee title insurance, a preliminary title report and
Irrevocable instructions to the escrow company only close the
Mortgage Loan with the Mortgagor when such Title Company is able to
and will issue the foregoing described policy of Mortgagee title
insurance, duly assigned by the terms of such policy or by
endorsement of the title insurance company. The Lender shall
instruct the escrow company to cause the original Mortgagee title
insurance policy to be delivered, when available, to the Lender for
delivery to the Trustee.
(d) A copy of a Hazard Insurance policy and a copy of an Earthquake
Mortgage Damage insurance policy, or appropriate certificates or
binders. The Hazard Insurance shall be Dwelling Building Special
Form all risk and shall be carried by the owner in the case of a
Residence other than a condominium unit, and, in the case of
condominium units, by the association of owners of the condominium
project. Such Hazard Insurance shall insure each Residence or, if
applicable, each condominium project in an amount at least equal to
ninety percent (90 %) of the insurable value based upon true
replacement cost of the Residence or condominium project, with an
inflation coverage endorsement and flood insurance coverage (if
applicable) in the amount required by the Special Hazard Insurance
Policy. Earthquake Mortgage Damage Insurance shall be carried by the
owner of each Residence and shall be in an amount at least equal to
the unpaid principal balance of the Mortgage Loan with a deductible
Clause of not to exceed five percent (5%) per occurrence. Such
Insurance shall insure the Trustee, the Agency and any other parties
in interest as their interests shall appear.
(e) Evidence that the Residence securing the Mortgage Loan is
insured under the coverage provided by the Special Hazard Insurance
Policy maintained by the Trustee on behalf of the Agency.
(f) A Mortgage Insurance Certificate in full force and effect duly
endorsed under a full coverage Master Policy, with advance payment,
attorneys' fees limit waiver, due -on -sale clause waiver and non -
monetary default amendatory endorsements, issued by a Private
Mortgage Insurer providing that the Mortgage Loan is insured in a sum
equal to the initial principal amount of the Mortgage Loan or a firm
commitment from the Mortgage Insurer that the Mortgage Loan will be
so insured. If applicable, the Lender shall deliver the original
Certificate to the Trustee immediately upon its becoming available.
Exhibit A
5
(g) The documents referred to in subparagraph G, below
(2) The Lender shall instruct the Escrow Company to deliver copies of all
of the documents listed in (1) above, certified as true and correct copies by..the
Escrow Company, to the Lender for its review, immediately upon the Escrow Company's
being able to comply with all closing instructions.
(3) The Lender shall instruct the Escrow Company, that upon approval by the
Lender of the documents described in subparagraph (1) above, the Escrow Company
shall deliver the executed Mortgage (deed of trust) and executed assignment of the
Mortgage to the Title Company, The Lender shall instruct the Escrow Company to
instruct the Title Company to notify the Lender and the Escrow Company when the
Title Company is prepared to issue its Mortgagee title insurance policy in the form
required by the Lender. The Lender shall instruct the Escrow Company that, upon
receipt of such notice from the Title Company, the Escrow Company shall then
request the Trustee to deliver the funds to the Title Company for purchase of the
applicable Mortgage Loan on the Funding Date specified by the Lender.
(4) The Lender shall instruct the Escrow Company to instruct the Title
Company that upon receipt of funds from the Trustee to purchase the applicable
Mortgage Loan, the Title Company shall record the applicable Mortgage (deed of
Trust) and assignment of Mortgage, issue its Mortgagee title insurance policy in
form required by the Lender (or its irrevocable commitment therefor) and deliver
the funds for purchase of the applicable Mortgage Loan, together with certified
copies of the recorded Mortgage (deed of trust) and assignment, to the Escrow
Company.
(S) The Lender shall instruct the Escrow Company to deliver to the Lender,
immediately upon closing of the escrow for funding of the applicable Mortgage Loan,
all of the documents described in subparagraph (1) above.
G. Additional Initial Documents. Prior to funding a Mortgage Loan, the
Lender shall have received from the applicable developer with respect to the
Residence securing repayment of such Mortgage Loan;
(1) A final Subdivision Report applicable to the Residence issued by
the Department of Real Estate of the State of California;
(2) A certificate of occupancy, or its equivalent, issued by the City
of Rancho Cucamonga verifying that the Residence or, if applicable, the building
within which such Residence is located has been finally inspected by the City and
is released for occupancy; and
(3) If the Residence is within a condominium project, a copy of the
declaration of covenants, conditions and restrictions applicable to such
condominium project whereby the homeowner's association is obligated to obtain
and continue in effect a policy of Hazard Insurance, including an earthquake
coverage endorsement and an inflation coverage endorsement, together with a copy of
a policy of Hazard Insurance insuring the condominium project, containing a
provision that said policy shall not be canceled or terminated, or permitted to
expire by its terms, without ten (10) days prior written notice to the Trustee, the
Agency and the Lender.
Exhibit A
6
H. Lenders Statement of Representation and Warranty. Upon compliance by
the Escrow Company with the instruction contained in subparagraph (2) of paragraph
F of this Exhibit A (requiring delivery of certified copies of all documents), the
Lender shall review all of the documents described in subparagraph 1 of paragraph F
and shall prepare, execute and deliver to the Trustee its Statement's of
Representation and Warranty that all of such documents are in accordance with the
requirements of the Mortgage Loan Purchase Agreement and that the escrow is ready
to close with respect to the applicable Mortgage Loan. The Lender shall include in
such Statement the representations and warranties required by subparagraph 0 of
paragraph 3 of this Exhibit A, and the Lender shall restate its agreement to
repurchase such Mortgage Loan as provided in subparagraph (W) of paragraph 11 of
the Mortgage Loan Purchase Agreement, The Lender shall also represent that the
Title Company is prepared to issue its Mortgagee title insurance policy, as
required. Finally, the Lender shall request the Trustee to deliver funds to the
Title Company to purchase the Mortgage Loan upon receipt by the Trustee of the
appropriate Requisition from the Agency and and the appropriate certificate of
compliance executed by the Private Mortgage Insurer in accordance with the
Compliance Agreement.
I. Trustee's Verification and Transfer of Funds. Upon receipt of the
Statement of Representation and Warranty described in subparagraph H above, the
Trustee shall review such Statement and verify that such Statement conforms with
the requirements of Section of the Indenture and with the requirements of
this Mortgage Loan Purchase Agreement. Upon completion of such verification to the
satisfaction of the Trustee and, if the Trustee shall have received the appropriate
Requisition from the Agency and shall have received the appropriate certificate of
compliance executed by the Private Mortgage Insurer in accordance with the
Compliance Agreement, the Trustee shall deliver funds to the Title Company to
purchase the applicable Mortgage Loan. It is understood that, upon the last to
occur of the requirements contained in the preceding sentence, the Trustee shall
wire transfer funds to the Title Company on the Funding Date. The Trustee shall
instruct the Title Company to forward the funds to purchase the Mortgage Loan to
the Escrow Company when the Title Company has made the required recordations and is
prepared to issue the required title insurance policy.
J. Failure to Fund on Funding Cate. Notwithstanding anything to the
contrary herein, if an escrow shall not close by the end of the business day set for
such closing in the notice given by the Lender to the Trustee as required in
subparagraph B of paragraph 4 of this Exhibit A, then either
(1) The Escrow Company (or, if applicable, the Title Company) shall on
the close of such business day return the funds to the Trustee for reinvestment and
the closing shall be rescheduled for a closing date not sooner than is acceptable
to the Trustee (and the Lender shall so notify the proper parties, including the
Trustee), or
(2) The Escrow Company shall be authorized by the Lender to hold the
escrow open for closing at a subsequent date to the extent that the Escrow Company
then has on deposit an amount of money sufficient to pay to the Trustee interest
accruing on a daily basis at an annual rate of % [insert Mortgage Loan
interest rate] (calculated on a 360 day year) on the amount obligated to purchase
Exhibit A
7
such Mortgage Loan as a penalty for late closing. The penalty for late closing
shall be paid by the Escrow Company to the Trustee at the time the Trustee purchases
the applicable Mortgage Loan.
K. Delivery of Documents to the Trustee. Upon closing of the escrow and
disbursement of funds by the Escrow Company and delivery by the Escrow Company of
the documents described in subparagraph 1 of paragraph F of this Exhibit A, to the
Lender, the Lender shall immediately deliver such documents to the Trustee,
together with the Mortgage Insurance Certificates or the commitments therefor (as
described in subparagraphs (f) and (g) of paragraph F). Upon receipt of such
documents by the Trustee, the Trustee shall review such documents and verify that
such documents conform on their face to the requirements set forth in Article V of
the Indenture. The Trustee shall have sixty (60) days within which to complete
such verification to the satisfaction of the Trustee. If the Trustee shall not be
satisfied that all such requirements have been met, then the Lender shall
repurchase such nortgage Loan as provided in subparagraph (W) of paragraph 11 of
the Mortgage Loan Purchase Agreement,
Exhibit A
8
EXHIBIT B
FORM OF AFFIDAVITS
MORTGAGOR'S AFFIDAVIT
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
RESIDENTIAL MORTGAGE REVENUE BONDS
The undersigned, as proposed mortgagors and purchasers (collectively "the
Mortgagor ") of a residence the permanent financing of which will be provided by the
Rancho Cucamonga Redevelopment Agency (the "Agency ") from the proceeds of its
Residential Mortgage Revenue Bonds, 1983 Series A, and to induce the private
mortgage insurer of the applicable Mortgage Loan to provide private mortgage
insurance does hereby declare and certify, under penalty of perjury that each of
the followina statements is true and correct:
(1) that the Mortgagor intends to occupy the Residence as his or her
principal residence within not to exceed sixty (60) days after final closing;
(2) that the Mortgagor intends to maintain the Residence as his or
her principal residence so long as the Mortgage Loan is outstanding;
(3) that the Mortgagor does not expect to use the Residence in his or
her trade or business or as an investment property or as a recreational home;
(4) that the Mortgagor does not expect that the land appurtenant to
the Residence will provide, other than incidentally, a source of income to the
Mortgagor;
(5) (unless the Mortgage Loan will be purchased with the last 1G% of
the developer's reservation) that the Mortgagor has had no Present Ownership
Interest in a principal residence at any time during the 3 —year period prior to the
date on which the Mortgage is executed;
(6) that the Acquisition Cost of the Residence does not exceed one
hundred ten percent (110 %) of the Average Area Purchase Price;
(7) that the Mortgagor has not entered into any agreement with the
seller of the Residence, the developer, the contractor, or any other person
pursuant to which the Mortgagor has agreed to pay moneys in excess of the
Acquisition Cost of the Residence (other than rentals, in an amount not to exceed
the fair rental value of the Residence as determined by the Lender, pursuant to a
temporary rental agreement with seller pending purchase by the Trustee on behalf of
the Agency of the Mortgage Loan secured by the Residence) or pursuant to which any
portion of the Residence has been left unfinished or any fixtures or other
architectural appointments have been omitted or removed from the Residence in order
to reduce the Acquisition Cost;
Exhibit 8
1
(8) that the Residence is not located on leased land or, if the
Residence is purchased subject to any ground lease, then the capitalized value of
such ground lease has been included in the Acquisition Cost;
(9) that the Residence is located within the boundaries of the Ra rtcho
Redevelopment Project Area of the Agency and, if applicable, the Mortgagor is an
Income Qualified Person or family;
(10) that the Mortgagor has not been a party to a deed of trust,
conditional sales contract, pledge, agreement to hold title in escrow or any other
form of owner - financing (whether or not paid off) on the Residence at any time
prior to execution of the Mortgage;
(11) that the Mortgagor will not use any portion of the proceeds of
the Mortgage Loan to acquire or replace an existing mortgage or deed of trust;
(12) that the Residence, if newly constructed, has not been previously
occupied, except pursuant to a temporary rental arrangement with seller pending
purchase by the Trustee on behalf of the Agency of the Mortgage Luan secured by the
Residence;
(13) that the Mortgagor has read and understood the affidavit and the
definitions of Present Ownership Interest, Acquisition Cost and Average Area
Purchase Price;
(14) that the Mortgagor has been informed and understands that
authorized representatives of the Lender intend to conduct investigations to assure
the truth of the aforementioned certifications at the time of execution of the
Mortgage and that the Mortgagor agrees to provide such information or access to
such information, including but not limited to copies of signed income tax returns,
as will assist the Lender in its investigation;
(15) that the Mortgagor has been informed and understands that in the
event that the Agency or the Lender discovers that the affidavit contains any
materially incorrect statement of fact, the Mortgage Loan will be immediately due
and ayp able in full without further notice, grace period, extension of time or
opportunity to correct or cure;
(16) that the Mortgagor has been informed and understands that perjury
is punishable by imprisonment in the state prison for up to four years and that
falsification of the affidavit may cause the Mortgagor to be liable in a civil suit
for monetary damages.
Mortgagors
Exhibit B
2
19 Subscribed and sworn to before me under oath this day of
Notary Public in and for the
County of
Exhibit 6
3
Acquisition Cost means the cost of acquiring a Residence from the developers
or other sellers as a completed residential unit. "Acquisition Cost" includes all
amounts paid, either in cash or in kind, by the Mortgagor (or a related party for
the benefit of the Mortgagor) to the developer or other seller (or a related party
for the benefit of the developer or other seller) as consideration for__ the
Residence. If the Residence is purchased subject to a ground lease then the term
"Acquisition Cost" includes the capitalized value of any ground rent payable with
respect thereto, capitalized at a discount rate equal to the yield of the Bonds.
If a Residence is incomplete, the term "Acquisition Cost" includes the
reasonable cost of completing the Residence whether or not the cost of completing
construction is to be financed with Bond proceeds. For example, where a Mortgagor
purchases a building which is so incomplete that occupancy of the building is not
permitted under local law, the term "Acquisition Cost" includes the cost of
completing the building so that occupancy of the building is permitted. As a
further example, where a Mortgagor agrees to purchase fixtures at a separate price
from the seller or otherwise, the term "Acquisition Cost" includes the price paid
for such fixtures.
The term "Acquisition Cost" does not include usual and reasonable settlement
or financing costs. "Settlement costs" include titling and transfer costs, title
insurance, survey fees, and other similar costs. "Financing costs" include credit
reference fees, legal fees, appraisal expenses, "points" which are paid by the
buyer or other costs of financing the Residence. However, settlement costs and
financing costs are excluded in determining Acquisition Cost only to the extent
that such amounts do not exceed the usual and reasonable costs which would be paid
by the buyer where financing is not provided through the Bonds. For example, if the
purchaser agrees to pay to the seller more than a pro rata share of property taxes,
such excess shall be treated as part of Acquisition Cost of a Residence. In
addition, if the purchaser agrees to pay to the seller an amount sufficient to pay
outstanding asessment liens, such payment shall be treated as part of Acquisition
Cost of a Residence.
The term "Acquisition Cost" also does not include the value of services
performed by the Mortgagor or members of the Mortgagor's family in completing the
Residence.
Average Area Purchase Price means, depending upon whether or not the
applicable Residence has been previously occupied or not within the meaning of the
Tax Act, the average area purchase price determined for homes which have been
previously occupied or the average area purchase price determined for those homes
which have not been previously occupied as most recently published by the United
States Treasury Department as applicable to the City of Rancho Cucamonga or, if
higher, such amount as shall be determined by the Agency, (based upon (i) a
comprehensive survey (which survey shall be based upon data in the relevant county
clerk's office) of residential housing sales in the appropriate statistical area,
and (ii) the opinion of nationally recognized bond or tax counsel that the purchase
price determined by the Agency shall not cause the interest on the Bonds to be
subject to Federal income taxation) as the average purchase price of all relevant
single - family residences in said statistical area for the most recent twelve (12)
month period for which sufficient statistical information is available.
Exhibit B
4
Present Ownership Interest includes (i) a fee simple interest; (ii) a joint
tenancy, a tenancy in common, or tenancy by the entirety; (iii) the interest of a
tenant — shareholder in the cooperative; (iv) a life estate; (v) a land contract
(i.e., a contract pursuant to which possession and the benefits and burdens of
ownership are transferred although legal title is not transferred until some later
time); and (vi) an interest held in trust for the Mortgagor (whether or not created
by the Mortgagor) that would constitute a present ownership interest if held
directly by the Mortgagor. The term "Present Ownership Interest" excludes (i) a
remainder interest; (ii) a lease with or without an option to purchase; (iii) a
mere expectancy to inherit an interest in a principal residence; (iv) the interest
that a purchase of a residence acquires on the execution of a purchase contract;
and (v) an interest in other than a principal residence during the previous three
(3) years.
Exhibit 6
5
SELLER'S AFFIDAVIT
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
RESIDENTIAL MORTGAGE REVENUE BONDS
The undersigned, as proposed seller of a residence to a Mortgagor, for a
residence the permanent financing of which will be provided by the Rancho Cucamonga
Redevelopment Agency (the "Agency ") from the proceeds of its Residential Mortgage
Revenue Bonds, 1983 Series A, and to induce the private insurer of the applicable
Mortgage Loan to provide private mortgage insurance, does hereby declare and
certify, under penalty of perjury that each of the following statements is true and
correct:
(1) that the Residence is a single - family Residence, the construction
of which is complete;
(2) that all of the land being sold or leased with the Residence
reasonably maintains the basic livability of the Residence, and the land is not
subject to further subdivision;
(3) that the Acquisition Cost of the Residence does not exceed one
hundred ten percent (110°.) of the Average Area Purchase Price;
(4) that the settlement and financing costs do not exceed the usual
and reasonable costs that would be paid by the Mortgagor where financing was not
provided through the Bonds;
(5) that the seller has not entered into any agreement with the
Mortgagor pursuant to which the Mortgagor has agreed to pay moneys in excess of the
Acquisition Cost of the Residence (other than rentals, in an amount not to exceed
the fair rental value of the Residence as determined by the Lender, pursuant to a
temporary rental agreement with seller pending purchase by the Trustee on behalf of
the Agency of the Mortgage Loan secured by the Residence) or pursuant to which any
portion of the Residence has been left unfinished or any fixtures or other
architectural appointments have been omitted or removed from the Residence in order
to reduce the Acquisition Cost;
(6) that the Residence is not located on leased land or, if the
Residence is purchased subject to any ground lease, then the capitalized value of
such ground lease has been incouded in the Acquisition Cost;
(7) that the Residence is located within the boundaries of the Rancho
Redevelopment Project Area of the Agency;
(8) that no portion of the proceeds of the Mortgage Loan will be used
to acquire or replace an existing mortgage or deed of trust;
(9) that the Residence, if newly constructed, has not been previously
occupied except pursuant to a temporary rental arrangement with seller pending
Exhibit B
6
purchase by the Trustee on behalf of the Agency of the Mortgage Loan secured by the
Residence;
(10) that the seller has read the affidavit and the definitions of
Acquisition Cost and Average Area Purchase Price attached to the affidavit;
(11) that the seller has been informed and understands that authorized
representatives of the Lender. intent to conduct investigations to assure the truth
of the aforementioned certifications at the time of execution by the seller of the
affidavit and that the seller agrees to provide such information or access to
information, including but not limited to business records of the seller, as will
assist the Lender in its investigation;
(12) that the seller :s informed and understands that perjury is
punishable by imprisonment in the state prison for up to four years and, in
addition, that falsification of the affidavit may cause seller to be liable in a
civil suit for monetary damages.
Subscribed and sworn to before me under oath this _ day of 19
Notary Public in and for the
County of
Exhibit 8
7
Acquisition Cost means the cost of acquiring a Residence from the developers
or other sellers as a completed residential unit. "Acquisition Cost" includes all
amounts paid, either in cash or in kind, by the Mortgagor (or a related party for
the benefit of the Mortgagor) to the developer or other seller (or a related.party
for the benefit of the developer or other seller) as consideration for the
Residence. If the Residence is purchased subject to a ground lease then the term
"Acquisition Cost" includes the capitalized value of any ground rent payable with
respect thereto, capitalized at a discount rate equal to the yield of the Bonds.
If a Residence is incomplete, the term "Acquisition Cost" includes the
reasonable cost of completing the Residence whether or not the cost of completing
construction is to be financed with Bond proceeds. For example, where a Mortgagor
purchases a building which is so incomplete that occupancy of the building is not
permitted under local law, the term "Acquisition Cost" includes the cost of
completing the building so that occupancy of the building is permitted. As a
further example, where a Mortgagor agrees to purchase fixtures at a separate price
from the seller or otherwise, the term "Acquisition Cost" includes the price paid
for such fixtures.
The term "Acquisition Cost" does not include usual and reasonable settlement
or financing costs. "Settlement costs" include titling and transfer costs, title
insurance, survey fees, and other similar costs. "Financing costs" include credit
reference fees, legal fees, appraisal expenses, "points" which are paid by the
buyer or other costs of financing the Residence. However, settlement costs and
financing costs are excluded in determining Acquisition Cost only to the extent
that such amounts do not exceed the usual and reasonable costs which would be paid
by the buyer where financing is not provided through the Bonds. For example, if the
purchaser agrees to pay to the seller more than a pro rata share of property taxes,
such excess shall be treated as part of Acquisition Cost of a Residence. In
addition, if the purchaser agrees to pay to the seller an amount sufficient to pay
outstanding asessment liens, such payment shall be treated as part of Acquisition
Cost of a Residence,
The term "Acquisition Cost" also does not include the value of services
performed by the Mortgagor or members of the Mortgagor's family in completing the
Residence.
Average Area Purchase Price means, depending upon whether or not the
applicable Residence has been previously occupied or not within the meaning of the
Tax Act, the average area purchase price determined for homes which have been
previously occupied or the average area purchase price determined for those homes
which have not been previously occupied as most recently published by the United
States Treasury Department as applicable to the City of Rancho Cucamonga or, if
higher, such amount as shall be determined by the Agency, (based upon (i) a
comprehensive survey (which survey shall be based upon data in the relevant county
clerk's office) of residential housing sales in the appropriate statistical area,
and (ii) the opinion of rationally recognized bond or tax counsel that the purchase
price determined by the Agency shall not cause the interest on the Bonds to be
subject to Federal income taxation) as the average purchase price of all relevant
single- family residences in said statistical area for the most recent twelve (12)
month period for which sufficient statistical information is available.
Exhibit B
8
Present Ownership Interest includes (i) a fee simple interest; (ii) a joint
tenancy, a tenancy in common, or tenancy by the entirety; (iii) the interest of a
tenant — shareholder in the cooperative; (iv) a life estate; (v) a land contract
(i.e., a contract pursuant to which possession and the benefits and burdens of
ownership are transferred although legal title is not transferred until some later
time); and (vi) an interest held in trust for the Mortgagor (whether or not created
by the Mortgagor) that would constitute a present ownership interest if held
directly by the Mortgagor. The term "Present Ownership interest" excludes (i) a
remainder interest; (ii) a lease with or without an option to purchase; (iii) a
mere expectancy to inherit an interest in a principal residence; (iv) the interest
that a purchase of a residence acquires on the execution of a purchase contract;
and (v) an interest in other than a principal residence during the previous three
(3) years.
Exhibit B
9
EXHIBIT C
(Letterhead of Lender)
(Date)
Rancho Cucamonga Redevelopment Agency
Stone & Youngberg
One California Street
28th Floor
San Francisco. California 94111
RE: Rancho Cucamonga Redevelopment Agency
Home Mortgage Revenue Bonds 1983 Series A
Dear Sirs:
We refer to the Mortgage Loan Purchase Agreement dated as of
1983, between the undersigned and the Rancho Cucamonga Redevelopment Agency.
We hereby reaffirm as of the date hereof and as though made at the date
hereof the representations and warranties made by us in said Mortgage Loan Purchase
Agreement except that, for purposes of this letter all references to the
Preliminary Official Statement shall be deemed to be references to the Final
Official Statement dated , 1983, of the Agency relating to the Bonds.
Very truly yours,
EXHIBIT D
(Letterhead of Counsel to Lender)
(Date)
Rancho Cucamonga Redevelopment Agency
Stone & Youngberg
One California Street
28th Floor
San Francisco, California 94111
RE: Rancho Cucamonga Redevelopment Agency
Residential Mortgage Revenue Bonds,
1983 Series A
Dear Sirs:
We have acted as special counsel for (name of Lender) (the "Lender ") in
connection with its participation in the Residential Mortgage Financing Program
(the "Program ") which is proposed to be financed with the proceeds of Residential
Mortgage Revenue Bonds, 1983 Series A (the "Bonds ") being issued by the Rancho
Cucamonga Redevelopment Agency (the "Agency ") pursuant to a trust indenture (herein
the "Indenture ") and delivered to a group of underwriters, for which Stone &
Youngberg is acting as Manager.
In that connection we have examined originals or copies identified to our
satisfaction of the Indenture, the Mortgage Loan Purchase Agreement between the
Lender, the Agency and , as trustee (the "Mortgage
Loan Purchase Agreement"), the parts of the Preliminary Official Statement relating
to the Bonds which describe the Lender and the Mortgage Loan Purchase Agreement and
such other documents we deemed necessary in order to render this opinion.
Based on the foregoing, we are of the opinion that:
(i) The Lender is a duly created and lawfully existing
(ii) The Mortgage Loan Purchase Agreement has been duly authorized,
executed and delivered by the Lender and constitutes a valid, legal and binding
instrument enforceable against the Lender in accordance with its terms.
the Official The
l Statement 9 will by he not vi o he t� s contemplated
violate the Charter or other releant
organizational documents of the Lender or any State or Federal statutes or
regulations to which the Lender is subject or any court order by which the Lender is
bound, and will not violate the provisions of, or constitute a default under,--any
agreement, indenture, mortgage, lease, note or other obligation or instrument to
which the Lender is a party and, except as indicated in the Official Statement, no
approval or other action of any governmental authority or agency is required in
connection therewith.
(iv) To our knowledge, except as set forth in the Official Statement,
there is no action, suit, proceeding, inquiry or investigation at law or in equity
or before or by any public board or body against or affecting the Lender or any
basis therefor, wherein an unfavorable decision, ruling or finding would adversely
affect the transactions on the part of the undersigned contemplated by the Official
Statement.
(v) To our knowledge, the Lender is not in default in any material
respect under any agreement, indenture, mortgage, lease, note or other obligation
or instrument to which it is a party and the consummation by it of the transactions
covered by this letter, the Purchase Contract or the Official Statement will not
conflict with, or constitute a default under, any such agreement, indenture,
mortgage, lease, note or other obligation or instrument.
We have reviewed the description of the Lender and its activities in the
Final Official Statement, dated 1963. Nothing has come to our
attention which would lead us to believe that such description contains any untrue
statement of a material fact or omits to state a material fact necessary in order to
make the statements contained therein, in light of the circumstances under which
they are made, not misleading.
Very truly yours,
EXHIBIT E
REVENUE PROCEDURE 82 -16
SECTION 1. PURPOSE
The purpose of this revenue procedure is to set forth procedures for
requesting certain income tax returns or income tax return information described in
section 6a.103A- 2c(1)(ii) of the Temporary Income Tax Regulations (concerning
mortgage subsidy bonds) published in the Federal Register on July 1, 1981 (46 FR
34311), 1981 -29 I.R.B. 4, as amended November 10, 1981 (46 FR 55513), 1981 -49
I.R.B. 6.
SEC. 2. BACKGROUND
.01 Section 103(a) of the Internal Revenue Code provides that gross income
does not include interest on (1) the obligations of a state or political
subdivision of a state, and (2) qualified scholarship funding bonds.
.02 Section 103A was added to the Code by the Mortgage Subsidy Bond Tax Act
of 1980, Pub. L. 96 -499, 1980 -2 C.B. 509, 512. Section 103(a) provides that, with
certain exceptions, any mortgage subsidy bond will be treated as an obligation not
described in section 103(a)(1) or (2). A mortgage subsidy bond is an obligation
that is issued as part of an issue a significant portion of the proceeds of which is
to be used directly or indirectly to provide mortgages on owner- occupied
residences.
.03 Section 103A(b)(2)(A) of the Code provides that any "qualified mortgage
issue" will not be treated as a mortgage subsidy bond. A qualified mortgage bond is
an obligation issued as a part of a "qualified mortgage issue." A qualified
mortgage issue is an issue by a state or political subdivision of a state of one or
more obligations in which all proceeds of the issue (exclusive of issuance costs
and a reasonably required reserve) are to be used to finance owner - occupied
residences and the issue meets the requirements of subsections (d), (e), (f), (g),
(h), (i), and (j) of section 103(A).
.04 An issue meets the requirements of subsection (e) of section 103(A of
the Code and section 6a.103A -2(e) of the temporary regulations if each mortgagor to
whom financing is provided under the issue had no present ownership interest in a
principal residence at any time during the 3 -year period prior to the date the
mortgage is executed.
.05 Section Ga.103A- 2(c)(1) of the temporary regulations provides that an
issue of qualified mortgage bonds that fails to meet one or more of the eligibility
requirements of paragraphs (d), (e), (f) and (j) of section 6a.103A -2 will be
treated as meeting such requirements if each of the following provisions is met;
(i) The issuer in good faith attempted to meet all such requirements before the
mortgages were executed; (ii) Ninety -five percent or more of the lendable
proceeds that were devoted to owner financing were devoted to residences with
respect to which, at the time the mortgages were executed or assumed, all such
EXHIBIT E
1
requirements were met; (iii) Any failure to meet such requirements is corrected
within a reasonable period after such failure is discovered.
.06 Section 6a.103A- 2(c)(1)(ii) of the temporary regulations provides that
an issuer will be deemed to have satisfied the 95 percent test if the issuer relies
on an examination by the issuer or loan originator, on behalf of the issuer, of each
mortgagor's copies of income tax returns that indicate, for the preceding 3 years,
the mortgagor did not claim deductions for taxes or interest on indebtedness with
respect to real property that was the mortgagor's principal residence. The
mortgagor must also provide the issuer or loan originator with an affidavit that
the requirements of section 6a.103A -2(e) and (f) are met. Copies of the income tax
returns may be provided by the mortgagor or obtained by the issuer or loan
originator in accordance with the procedures set forth in section 301.610(c) -1 of
the Regulations on Procedure and Administration.
.07 The facts in Example (1) of section 6a. 103A- 2(c)(1)(iv) of the
temporary regulations indicate that a bank, obtains copies certified by the Service
of the loan applicant's federal tax return for the preceding 3 years and examines
each return to determine if the applicant has claimed a deduction for taxes and
interest with respect to real property that was the applicant's principal
residence. In addition, the issuer, in order to satisfy the requirements of
section 6a.103A- 2(c)(1)(i), establishes procedures for ensuring compliance with
the requirements of Section 103A of the Code, and the relevant documents contain
restrictions that permit financing only in accordance with such requirements.
Example (1) states that these facts are sufficient evidence of good faitho of the
issuer and meet the requirements of section 6a.103A- 2(c)(1)(i) and (ii). The facts
in Example (4) of section 6a.103A- 2(c)(1)(iv) indicxate that the issuer requires
copies of the applicant's signed returns that were filed with the Service for the
preceding 3 years, but does not require that such returns be certified. Example
(4) concludes that if 95 percent of the lendable proceeds are devoted to owner
financing that according to the procedures meet the requrements of paragraphs (d),
(e), (f) and (i) of section 6a.103A -2, then the issue meets the requirements of
section 6a.103A- 2(c)(1)(ii).
.08 Section 301.6103(c)-1 of the regulations provides that a taxpayer may
request that a return or return information be disclosed to a person designated in
a written request for or consent to disclosure. The written document must be
signed and dated by the taxpayer who filed the return or to whom the return
information relates. The taxpayer must indicate in the written document the
following:
(1) The taxpayer's name, mailing address, and taxpayer identifying number;
(2) The identity of the person to whom disclosure is to be made;
(3) The type of return (or specified portion of the return) or return
information that is to be disclosed; and
(4) The taxable year covered by the return or return information. Form
4506, Request for Copy of Tax Form, should be used for requesting copies of tax
returns or tax return information.
EXHIBIT E
2
.09 Form 1040A, U.S. Individual Income Tax Return, does not provide for the
deduction of itemized deductions (such as taxes and interest attributable to a
taxpayer's principal residence) for purposes of computing taxable income.
Therefore, an examination of a loan applicant's copy of Form 1040A will indicate
that the applicant did not claim taxes or interest attributable to a principal
residence.
.10 The Service has become aware that some uncertainty exists among issuers
of qualified mortgage subsidy bonds and loan originators with respect to the type
of copy of the loan applicant's federal income tax return that must ge examined and
the manner in which such copy is to be obtained.
SEC. 3. PROCEDURE
.01 Examination by an issuer or loan originator of a mortgagor's retained
signed copies of the mortgagor's federal income tax returns filed with the Service
for the 3 tax years immediately preceding dthe date of the mortgage is executed
will satisfy the 95 percent test under section 6a.103A- 2(c)(I)(ii) of the temporary
regulations. The mortgagor is also required to provide an affidavit that the other
requirements of section 6a.103A -2 are met.
.02 In those situations where a mortgagor did not retain signed copies of
the federal income tax returns filed with the Service, copies may be obtained from
the Service upon submission of a written request by the mortgagor that complies
with the requirements of section 301.6103(c) -1 of the regulations. Form 4506,
Request for Copy of Tax Form, may be used to request such returns. When requesting
that copies of the tax returns be mailed to the issuer or loan originator, the name
of a designated individual recipient for the issuer or loan originator must be
inluded with the mailing address. The reference in Example (1) of section 6a.103A-
2(c)(1)(iv) to copies certified by the Service was intended to illustrate one type
of copy that may be used for examination. It was not intended to establish any
advantage to the examination of certified copies. Further, neither the examination
of certified returns nor the examination of uncertified returns, in and of itself,
meets the requirements of sections 6a.103A- 2(c)(1)(i) or 6a.103A- 2(c)(1)(ii).
.03 If a mortgagor filed Form 1040A but did no: retain a signed copy of the
return, the issuer or loan originator may satisfy the requirements that it examined
copies of the mortgagor's returns to determine that the mortgagor did not claim
deductions for taxes or interest on indebtedness with respect to real property
that was the mortgagor's principal residence by obtaining a letter from the Service
that the mortgagor filed Form 1040A for the year or years in question. The written
request for return information (signed by the mortgagor) must state that if a Form
1040A was filed, such information is to be furnished to the individual designated
to receive the information for the issuer or loan originator and that a copy of the
return is not to be mailed. If Form 4506 is used, the words "Form 1040A
Notification Requested" should be written across the top of the form. A statement
should be included in the appropriate items on the form indicating that a letter
verifying filing of Form 1040A is requested rather than a photocopy of the Form
1040A. It is anticipated that the Service will be able to process a request for a
letter indicating that a taxpayer filed a Form 1040A in a significantly shorter
period of time that a request for a copy of the taxpayer's income tax return.
EXHIBIT E
3
.04 If a mortgagor did not retain a copy of the income tax return filed with
the Service and does not recall whether a Form 1040A or Form 1040 was filed, the
procedures set forth in section 3.03 of this revenue procedure should be followed
in preparing a request for the income tax return information. In addition;. a
statement should be included in the request that in the event the taxpayer filed a
Form 1040, a copy of that return is to be mailed to the person designated to receive
the information or copy of the tax return for the issuer or loan originator,
EXHIBIT E
4
,1
EXHIBIT F
ADDENDA TO MORTGAGE AND MORTGAGE NOTE
1. MORTGAGE NOTE ASSUMABILITY RIDER
This Mortgage Note Assumability Rider is made this day of , 198
and is incorporated into and shall be deemed to amend and supplement the
Mortgage Note, dated of even date herewith, given by the undersigned (herein the
"Borrower ").
The obligation evidenced by the Mortgage Note may be assumed upon the
Borrower's sale, transfer or other disposition of the property securing the
Mortgage Note only if the Rancho Cucamonga Redevelopment Agency, approves in
writing such assumption, and the new obligor or obligors on the Mortgage Note, and
any other new holders of an interest in such property, meet the eligibility
requirements of the residential mortgage financing program of the Rancho Cucamonga
Redevelopment Agency.
IN WITNESS WHEREOF, the Borrower has executed this Mortgage Note
Assumabi)ity Rider.
2. MORTGAGE ASSUMABILITY RIDER
This Mortgage Assumability Rider is made this day of , 198
and is incorporated into and shall be deemed to amend and supplement the Bend of
Trust, dated of even date herewith, given by the undersigned (herein the
"Borrower ") to secure the Borrower's Mortgage Note to
(he refit the "8enef iciary) and covering the pro-p;- dtscrtbed to the Deed of
Trust and located at ._ �^ _ (the
"Residence ")
Upon assumption of the Mortgage Nete and Deed of Trust by a person
ineligible to receive a mortgage loan under the residential mortgage financing
program of the Rancho Cucamonga Redevelopment Agency, the Beneficiary may, by
written notice to the Borrower, as truster under the Deed of Trust, declare all
obligations secured by the Deed of Trust to be immediately due and payable, except
to the extent such is prohibited by law. The provisions hereof shall prevail
notwithstanding any contrary provisions in the Mortgage Note or in any other
Instrument which evidences the obligations secured by the Deed of Trust. The
Borrower, as truster under the Deed of Trust, shall notify the Beneficiary promptly
in writing of any transaction or event which may give rise to a right of
acceleration under the Deed of Trust. The Borrower, as trustor under the Deed of
Trust, shall pay to the Beneficiary all damages the Beneficiary sustains by reason
of any breach of the covenant set forth herein.
3. MORTGAGE FRAUD RIDER
This Mortgage Fraud Rider is made this day of , 198 and is
incorporated into and shall be deemed to amend and supplement the Deed of Trust,
dated of even date herewith, given by the undersigned (herein the "Borrower ") to
secure the Borrower's Mortgage Note to `
(herein the "Beneficiary' —,and
covering the property described in the Deed of Trust and located at
Upon discovery of fraud or misrepresentation by the Borrower with respect to
any information provided by the Borrower in the loan application or Buyer's
Affidavit executed by the Borrower in connection with the Borrower's Mortgage Note,
the Beneficiary may, at the Beneficiary's sole discretion, by written notice to the
Borrower, as trustor under the Deed of Trust, declare all obligations secured
hereby immediately due and payable, The provisions hereof shall prevail
notwithstanding any contrary provisions in the Mortgage Note or any other
instrument which evidences the obligations secured by the Deed of Trust. The
Borrower, as trustor under the Deed of Trust, shall notify the Beneficiary promptly
in writing of any transaction or event which may give rise to a right or
acceleration under the Deed of Trust. The Borrower, as trustor under the Deed of
Trust, shall pay to the Beneficiary all damages the Beneficiary sustains by reason
of any breach of the covenant set forth herein.
Borrower
G951C
JHHW:ACH:ea 11/23/82
:ea 12/18/82
COMMITMENT CONTRACT
(AND RESERVATION OF FUNDS)
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
RESIDENTIAL MORTGAGE REVENUE BONDS, 1983 SERIES A
RESIDENTIAL MORTGAGE FINANCING PROGRAM
This Commitment Contract (and Reservation of Funds) (the "Agreement ") is
dated as of the date shown below and is hereby entered into the and bbetween shown
Rancho Cucamonga Redevelopment Agency (the "Agency "), and
below.
The parties hereto hereby agree that the following terms, dates and amounts
are a part of this Agreement:
Date:
Name of Developer:
As of 1, 1983
(the "Developer ")
Project: (the Pte')
New Residence Purchase Price Limitation $
Mortgage Loan Amount Reserved net
of pro rata reserve funds and $ (the "Reservation ")
issuance expenses: —
Program Participation Fee:
Prepaid Deposit (Including 1983
Deposit Letter of Credit) $ paid
Complete Appropriate Spaces - A or B
A either remaining portion in
cash (cash plus prepaid portion
to equal % of Reservation)
B or remaining portion partially in
cash (cash plus prepaid portion
to equal % of Reservation)
plus deferred portion
Letter of Credit ( %)
Maximum Mortgage Loan Interest Rate:
Anticipated Draw Dates and Amounts:
Draw Periods
Prior to the Last Day of the Month of
$ _ paid , 1983
$ paid , 1983
To 6e delivered prior to closing
%; subject to adjustment downward
by written notice from Agency prior to
closing
Draw Cumulative
(Principal Amount) Maximum Amount
[TO BE PROVIDED
BY DEVELOPER]
i
APPROVED AND ACCEPTED upon the RANCHO CUCAMONGA REDEVELOPMENT AGENCY
terms and conditions set forth
LENDER
By
By
Executive Director
DEVELOPER:
APPROVED upon the terms By
and conditions set forth
TRUSTEE:
By _
Authorized Officer
In addition to the above terms, dates and amounts, the parties hereto hereby
agree that the terms, conditions, provisions and recitals contained in pages 2
through 9, inclusive, of this Agreement and in Exhibits A, B, C and D attached to
this Agreement are a part of this Agreement. For ease of reference the parties
hereto have executed this Agreement on this page by persons thereunto duly
authorized all as of the date set forth above.
A. Developer is in the process of subdividing land within the Rancho
Redevelopment Project Area of the Rancho Cucamonga Redevelopment Agency and
constructing and marketing residences thereon to the general public - -(the
"Development ").
B. The Agency is undertaking a Residential Mortgage Financing Program
(the "Program ") and, in implementation thereof, proposes to issue Residential
Mortgage Revenue Bonds, 1983 Series A (the "Bonds "), pursuant to a trust indenture
a draft of which has heretofore been furnished to the Developer (herein the
"Indenture "). Terms defined in the Indenture are used herein with the meanings
therein provided. The Bonds are being issued for the purpose of providing funds to
purchase mortgage loans (the "Mortgage Loans ") made to provide permanent financing
to eligible borrowers (the "Mortgagors ") for the single - family dwellings (the
"Residences ") to be constructed and marketed by Developer.
C. The Bonds are proposed to be sold to (the
"Purchasers "). The Purchaser will use an Official Statement approved by the Agency
to market the Bonds. A copy of the Official Statement has heretofore been
furnished to the Developer.
D. (the "Trustee ") will act as trustee for
the holders of Bonds under the Indenture and will use proceeds from the sale of the
Bonds during the Commitment Period to acquire Mortgage Loans from the Lender who
will enter into a Mortgage Loan Purchase Agreement and a Servicing Agreement with
the Agency.
Accordingly, in consideration of the above premises and for other valuable
consideration the parties hereto agree to the matters contained in this Agreement.
1. Reservation of B,nd Proceeds. The Agency shall reserve proceeds of the
Bonds to provide fur fo, purchase by the Trustee from Lender of Mortgage Loans
originated with resr�ct to r. Residences in Lice Development in the amount of the
Reservation on the dates on or prior to , as set forth on the
first page hereof. The Agency las, in the Indenture, reserved the right, under
certain circumstances, to provide for a date subsequent to , as
the last date for purchase of Mortgage Loans. Al purchases of Mortgage Loans will
be made on the "Funding Date" as that term is defined in the Mortgage Loan Purchase
Agreement . Principal amounts of Mortgage Loans shall not be delivered to the
Trustee for purchase in excess of the cumulative principal amount of Mortgage Loans
specified to be purchased on or before any date set forth on the front page of this
Agreement. There shall be penalty for late delivery of Mortgage Loans.
"Commitment Period" as used herein shall mean the period terminating
or terminating on such later date as the Agency may prescribe, as authorized by the
Indenture.
2. Construction and Marketing of Residences to Eligible Mortgagors. The
Developer will construct Residences within the Development in accordance with the
applicable standards of, and in compliance with the land use elements and the
housing element of the general plan of the City of Rancho Cucamonga. Developer
will (a) use its best efforts to market Residences which shall not, in any event,
exceed the Acquisition Costs (as defined in Exhibit A) permitted by the Mortgage
Loan Purchase Agreement, to purchasers thereof who have not had a Present Ownership
Interest (as defined in Exhibit A) during the 3 -year period prior to the date on
which the Mortgage Loan is executed and who are otherwise capable of being
qualified as Mortgagors and (b) cooperate with the Lender in order to permit it'to
originate and fund Mortgage Loans, in an aggregate principal amount equal to the
Reservation and in accordance with the further provisions of the Mortgage Loan
Purchase Agreement.
3. Income Qualified Persons or Families. Except as shown below, the
Mortgage Loan shall be secured by a Mortgage upon a Residence which is located
within the Project and the Mortgagor shall constitute an Income Qualified Person or
Family, as determined from time to time by the Agency in accordance with the
applicable law and as specified in the Agency's Rules and Regulations for the
Program.
(i) With respect to not more than $ principal amount
of Mortgage Loans purchased by the Trustee, there shall be no income restrictions;
and
(ii) With respect to the remaining principal amount of Mortgage Loans
purchased by the Trustee, Income Qualified Persons or Families means persons or
families which have a Household Income which does not exceed 120% of the San
Bernadino Countywide median household income (120% currently equals $ ).
4. Ag reements with Lenders. The Agency agrees to enter into Mortgage
Loan Purchase Agreements and Servicing Agreements (substantially in the form of the
drafts thereof heretofore furnished to Developer), with the Lender and the Trustee
prior to the delivery of the Bonds providing, among other things, for the purchase
by the Agency from the Lender of Mortgage Loans bearing interest at a rate not
exceeding the Maximum Mortgage Interest Rate at not less than
percent ( %) of their principal amounts, plus accrued interest, if any. The
Developer agrees to comply with all provisions of the applicable Mortgage Loan
Purchase Agreement and Servicing Agreement as well as all other applicable Program
documents. In this regard, the Developer shall, prior to purchase of a Mortgage
Loan pursuant hereto by the Trustee on behalf of the Agency, provide to the Lender
for delivery to the Trustee the following documents:
(A) If required by state law, a final Subdivision Report
applicable to the Residence securing such Mortgage Loan issued by the Department of
Real Estate of the State of California;
(B) A certificate of occupancy, or its equivalent, issued by the
City of Rancho Cucamonga verifying that tLc applicable Residence or, if
applicable, the building within which such Residence is located has been finally
inspected by the Agency and is released for occe :i,ancy; and
(C) If applicable, a copy of She declaration of covenants,
conditions and restrictions applicable to the Project whereby the homeowner's
association is obligated to obtain and continue in effect a policy of Hazard
Insurance, including an earthquake coverage endorsement and an inflation coverage
endorsement, together with a copy of a policy of Hazard Insurance insuring the
condominium project, containing a provision that said policy shall not be canceled
or terminated, or permitted to expire by its terms, without ten (10) days prior
written notice to the Trustee, the Agency and the Lender.
5. Program Participation fee, Application. On the date of execution by
the Developer of this Agreement, the Developer paid to the Agency the cash portion
of the Program Participation Fee (in full - in part, if in part Letter of Credit
must be delivered). A Letter of Credit securing the deferred portion of the
Program Participation Fee (equal to % of the principal amount of the
Reservation) shall be delivered to the Agency, together with the letters described
in Exhibits C and D, prior to the date scheduled for delivery of the Bonds to the
Purchasers. In the event the Bonds are hereafter sold and delivered at a cost to
the Agency which permits the funding of Mortgage Loans at or below the Maximum
Interest Rate, the cash portion and the deferred portion of the Program
Participation Fee shall be non - refundable by the Agency to the Developer. In the
event that the Bonds are not hereafter sold and delivered at a cost to the Agency
which will permit the funding of Mortgage Loans at or below the Maximum Interest
Rate, such Fee shall be refunded to the Developer less an amount equal to the
Developer's pro rata share of expenses theretofore incurred by the Agency. The
Developer's share of expenses shall be prorated based on the ratio of the
Developer's Reservation to all reservations of the proceeds of the Bonds. In the
event the Bonds are sold and delivered at a cost to the Agency which will permit the
funding of Mortgage Loans at an interest rate below the Maximum Interest Rate, the
Agency will on the date of purchase of the Bonds by the Purchasers mail written
notice to the Developer of the amount of such reduced interest rate.
6. Program Participation Fee - Deferred Portion (if Applicable), Letter
of Credit. (a) The Developer understands that the Agency has incurred and will
incur certain expenses in connection with the issuance of the Bonds a portion of
which must be recovered by the Agency from Developer at the time of purchase of
Mortgage Loans by the Trustee. The amount to be so recovered by the Agency
represents a deferred portion of the Developer's Program Participation Fee equal to
% of the Developer's Reservation, Accordingly, Developer agrees to pay the
deferred portion of the Program Participation Fee in cash for the account of the
Trustee concurrently with the purchase of each Mortgage Loan by the Trustee.
(b) To secure payment of the Deferred portion of the Program
Participation Fee, the Developer shall, at least three (3) business days prior to
the date scheduled for offering of the Bonds by the Purchasers to investment
bankers, tanking institutions and members of the general public, deliver to the
Agency the Letter of Credit to be posted with the Trustee on behalf of the Agency.
The Letter of Credit shall be irrevocable, shall name the Trustee as beneficiary,
shall authorize the Trustee to draw thereon by presenting a written statement that
payment is due (including a requirement that the Bank issuing the Letter of Credit
have a rating assigned by Standard d Poor's Corporation of "AA" or better) and
shall be substantially in the form attached hereto as Exhibit B.
The amount of the Letter of Credit may be reduced quarterly on January
1, April 1, July 1 and October 1 of each year, commencing 1, 1983. The
adjusted amount shall be equal to the then unpaid amount of the deferred portion of
the Program Participation Fee.
The Trustee shall draw on the Letter of Credit in an amount equal to
the then unpaid amount of the deferred portion of the Program Participation Fee (a)
at any date on which the Letter of Credit expires or (b) at the end of the
Commitment Period.
7. Developer Representations, Warranties and Covenants. The Developer
represents and warrants to and covenants with the Agency as a part of this
Agreement, and, in order to induce the Purchasers to purchase the Bonds, represents
and warrants for the benefit of the Purchasers, as follows:
(a) The Developer has reviewed the description of the Developer and
the Project contained in the Preliminary Official Statement. Such description does
not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements contained therein, in the light of
the circumstances under which they were made, not misleading.
(b) Except as described in the Preliminary Official Statement, (i) the
Developer holds good and marketable title in fee simple to the real property
described in the Preliminary Official Statement as constituting the Project or has
the right to acquire such title as described therein subject only to encumbrances
of the type defined in the Indenture as "Permitted Encumbrances" and the lien of
any construction financing and purchase money deeds of trust; and (ii) such real
property is currently zoned to permit the construction of single - family dwelling
units of the type proposed to be constructed thereon.
(c) The Residences to be constructed in the Project will be eligible
for private mortgage insurance and will be constructed in accordance with all
applicable building codes and regulations and with the land use element and housing
element of the general plan of the City of Rancho Cucamonga and will substantially
conform to the description thereof set out in the Preliminary Official Statement.
(d) The Developer is not in default in any material respect under any
agreement, indenture, mortgage, lease, note or other obligation or instrument to
which it is a party which would materially adversely affect the transactions
contemplated by this Agreement, the Purchase Contract or the Preliminary Official
Statement, and the consummation by it of the transactions covered by this
Agreement, the Purchase Contract or the Preliminary Official Statement will not
conflict with, or constitute a default under, any such agreement, indenture,
mortgage, lease, note or other obligation or instrument.
(e) To the knowledge of the Developer, there is no action, suit,
proceeding, inquiry or investigation at law or in equity, before or by any public
board or body pending or threatened against or affecting the Developer, or any
basis therefor, wherein an unfavorable decision, ruling or finding would adversely
affect the transactions on the part of the Developer contemplated by the
Preliminary Official Statement.
(f) The Developer has read and understands the intended application of
the provisions of the Mortgage Loan Purchase Agreement and the Servicing Agreement
referred to in Section 4 above and agrees to cooperate with the Lender fully in its
investigations and other duties described in the Mortgage Loan Purchase Agreement.
(g) Applicable provisions of the Mortgage Loan Purchase Agreement
require that, prior to the purchase of a Mortgage Loan by the Trustee on behalf of
the Agency, the Developer shall execute and deliver an affidavit (the "Seller's
Affidavit" - in form attached to the Mortgage Loan Purchase Agreement) duly sworn
affirming, among other things:
(1) that the Residence is a single - family Residence located
within the boundaries of the City of Rancho Cucamonga, the construction of which is
complete;
(2) that all of the land being sold with the Residence reasonably
maintains the basic livability of the Residence, and the land is not subject to
further subdivision;
(3) that the Acquisition Cost of the Residence does not exceed
one hundred ten percent (110%) of the Average Area Purchase Price (as defined in
Exhibit A);
(4) that the settlement and financing costs do not exceed the
usual and reasonable costs that would be paid by the Mortgagor where financing was
not provided through the Bonds;
(5) that the Developer has not entered into any agreement with
the Mortgagor pursuant to which the Mortgagor has agreed to pay monies in excess of
the Acquisition Cost of the Residence (other than rentals, in an amount not to
exceed the fair rental value of the Residence as determined by the Lender, pursuant
to a temporary rental agreement with the proposed Mortgagor pending purchase by the
Trustee on behalf of the Agency of the Mortgage Loan secured by the Residence) or
pursuant to which any portion of the Residence has been left unfinished or any
fixtures or other architectural appointments have been omitted or removed from the
Residence in order to reduce the Acquisition Cost;
(6) that the Residence is not located on leased land or if the
Residence is purchased subject to any ground lease, the capitalized value of such
ground lease is included in the Acquisition Cost;
(7) that the Residence has not been previously occupied, except
pursuant to a temporary rental arrangement with the proposed Mortgagor pending
purchase by the Trustee on behalf of the Agency of the Mortgage Loan secured by the
Residence;
(8) that no portion of the proceeds of the Mortgage Loan will be
used to acquire or replace an existing mortgage of deed of trust, other than
construction or other temporary financing.
8. Opinion of Developer's Counsel, Developer's Reaffirmation, The
Developer will, prior to the delivery of the Bonds to the Purchasers, furnish to
the Agency and to the Purchasers an opinion of Developer's counsel substantially in
the form of Exhibit C attached hereto. In addition, the Developer will furnish to
the Agency and the Purchasers a letter of the Developer dated as of the date the
Bonds are delivered to the Purchasers and substantially in the form of Exhibit D
attached hereto.
9. Interest Rate "Buydown ". The Developer shall be entitled to cause
certain of the monthly payments due from the Mortgagor on any Mortgage Loan to be
reduced by paying to the Trustee at the time of purchase by the Trustee of such
Mortgage Loan the total of the aggregate amount by which the monthly payments are
to be so reduced but only as follows:
(a) The payment -to- income ratio of the Mortgagor and the obligations -
to-income ratio of the Mortgagor (and of any guarantor) shall be not less than the
current underwriting requirements of FNMA or FHLMC and shall demonstrate
qualification of the Mortgagor for a Mortgage Loan on the basis of payments
applicable during the first year of the Mortgage Loan after taking into account the
reduction in the Mortgagor's monthly payments during the first year;
(b) the Developer must deposit money in a trust account for the
benefit of the Mortgagor with monthly releases scheduled which serve to reduce the
Mortgagor's payments during the early years of the term of the Mortgage Loan;
(c) the term of the "buydown" period may not be less than one year, but
may extend for the stated maturity of the Home Mortgage;
(d) the "buydown" may not have the effect of reducing the Mortgagor's
monthly payments by more than an equivalent of reducing the Maximum Mortgage
Interest Rate by three percentage points;
(e) any decrease in the amount of the "buydown" must occur annually
and no such decrease for any one year may exceed one percentage point;
(f) the trust account must be held by the Trustee and must be insured
by FDIC;
(g) the Mortgage Loan may make no reference to the "buydown" and the
interest rate and monthly payments provided in the Mortgage Loan may not take into
account the "buydown ";
(h) the trust agreement with the Developer must require the Trustee to
credit monthly payments to the Lender for the account of the Mortgagor;
(i) the trust agreement must provide for any interest on the trust
account to be paid to the Developer or remain in the trust and for reversion of
moneys held in the trust account to the Developer if the Residence is sold by the
Mortgagor or the Mortgage Loan is prepaid in full, whether voluntarily or
involuntarily;
(j) the moneys for the "buydown" must be placed in the trust account
prior to purchase of the Mortgage Loan by the Trustee and must be sufficient
(without interest unless interest is to remain in the trust account and the Trustee
agrees to a fixed rate of interest for the full term of the trust) to make all
monthly payments provided under the "buydown "; and
(k) the Mortgagor's only interest in the escrowed moneys is to have
them applied to payments due under the Mortgage Loan as provided in this paragraph
and such moneys may not be used to pay past due payments of the Mortgagor.
The Developer shall pay the amount referenced in this paragraph 9 at the
time of purchase by the Trustee of the Mortgage Loan on behalf of the Agency by
paying (or otherwise causing to be credited) into the escrow for such purchase
(referred to in Section 4 of Exhibit A of the Mortgage Loan Purchase Agreement)
such amount to the account of the Trustee on behalf of the Agency. The escrow
company shall disburse such amount directly to the Trustee upon the close of such
escrow. The Developer shall compensate the Trustee for any charges of the Trustee
in administering the trust account.
10. Transfer of Reservation. In the event that the Developer shall not
desire use of the total Reservation, such Developer may transfer such portion of
the total Reservation as the Developer shall determine appropriate to any other
developer which has, prior to the delivery of the Bonds, entered into a Commitment
Contract (and Reservation of Funds) with the Agency for use exclusively with
respect to a project described in such Commitment Contract (and Reservation of
Funds). The Developer shall not, however, in such event be entitled to a refund
from the Agency of any portion of the Program Participation Fee paid by the
Developer. Any developer accepting such transfer of a portion of the total
Reservation shall pay, and may only pay, to the Developer such pro rata portion of
the Program Participation Fee as shall represent the portion of the total
Reservation transferred pursuant to this paragraph 10. In addition, upon written
approval of the Agency, the Purchasers and any rating service which has assigned a
rating to the Bonds, the Developer may, subject to the same conditions, transfer
all or a portion of the Reservation to a developer which has not entered into a
Commitment Contract (and Reservation of Funds).
11. Bondholders. Neither the Developer nor any Lender approving and
accepting this Agreement shall become, directly or indirectly, holders of the
Bonds.
12. Equal Opportunity, No Discrimination. The Developer shall assure that
all contractors and subcontractors engaged in Residential Construction shall
provide equal opportunity for employment, without discrimination as to race, sex,
marital status, color, religion, national origin or ancestry. All contracts and
subconstracts for Residential Construction shall be let without discrimination as
to race, sex, marital status, color, religion, national origin or ancestry. It is
the policy of the Agency to encourage participation by minority contractors.
13. Pledge or Assignment. The Agency may at any time assign or pledge for
the benefit and security of the holders of Bonds any or all of its rights under this
Agreement, and thereafter this Agreement shall not be terminated, modified or
changed by the Agency or the Developer except in the manner, if any, imposed by the
terms and provisions of such assignment or pledge. The Developer may not assign or
transfer any of its rights or interest pursuant to this Agreement without the prior
written consent of the Agency.
14, Governing Law. All questions with respect to the construction of this
Agreement, and the rights and liability of the parties hereto, shall be governed by
the laws of the State of California.
15. Paragraoh Headings and References. The headings of the several
paragraphs hereof shall be solely for convenience of reference :.:d shall not affect
the meaning, construction or effect of this Agreement.
16. Severability. If any term or provision of this Agreement or-'the
application thereof shall to any extent be invalid or unenforceable, the remainder
of this Agreement, or the application of such term or provision to circumstances
other than those to which it is invalid or unenforceable, shall not be affected
thereby, and shall be enforced to the extent permitted by law. To the extent
permitted by applicable law, the parties herebv waive any provision of law which
would render any of the terms of this Agreement unenforceable.
17. Waiver. No failure on the part of any party hereto to enforce any
covenant or provision herein contained, or any waiver of any right hereunder, shall
discharge or invalidate such covenant or provision or affect the right of such
party to enforce the same in the event of any subsequent breach or default; failure
to demand strict performance of any covenant or condition of this Agreement shall
not be deemed a waiver of such covenant or condition.
18. Indemnity. The Developer shall indemnify the Agency and the Trustee
and hold them harmless of and from any and all loss, penalty, fine, forfeiture,
reasonable attorneys' fees, damage or expense that any of them may sustain or incur
as a result of any failure on the part of the Developer to perform its services,
duties and obligations under the terms and provisions of this Agreement.
19. Time. Time is of the essence of this Agreement.
20. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, and such counterparts shall constitute one
and the same instrument.
Acquisition Cost means the cost of acquiring a Residence from the Developers
or other sellers as a completed residential unit. "Acquisition Cost" includes all
amounts paid, either in cash or in kind, by the Mortgagor (or a related party for
the benefit of the Mortgagor) to the Developer or other seller (or a related -Varty,
for the benefit of the Developer or other seller) as consideration for the
Residence. If the Residence is purchased subject to a ground lease then the term
"Acquisition Cost" includes the capitalized value of any ground rent payable with
respect thereto.
If a Residence is incomplete, the term "Acquisition Cost" includes the
reasonable cost of completing the Residence whether or not the cost of completing
construction is to be financed with Bond proceeds. For example, where a Mortgagor
purchases a building which is so incomplete that occupancy of the building is not
permitted under local law, the term "Acquisition Cost" includes the cost of
completing the building so that occupancy of the building is permitted. As a
further example, where a Mortgagor agrees to purchase fixtures at a separate price
from the seller or otherwise, the term "Acquisition Cost" includes the price paid
for such fixtures.
The term "Acquisition Cost" does not include usual and reasonable settlement
or financing costs. "Settlement costs" include titling and transfer costs, title
insurance, survey fees, and other similar costs. "Financing costs" include credit
reference fees, legal fees, appraisal expenses, "points" which are paid by the
buyer (but not the seller, even though borne by the Mortgagor through a higher
purchase price) or other costs of financing the Residence. However, settlement
costs and financing costs are excluded in determining Acquisition Cost only to the
extent that such amounts do not exceed the usual and reasonable costs which would
be paid by the buyer where financing is not provided through the Bonds. For
example, if the Mortgagor agrees to pay to the seller more than a pro rata share of
property taxes, such excess shall be treated as part of Acquisition Cost of a
Residence. In addition, if the Mortgagor agrees to pay to the seller an amount
sufficient to pay outstanding assessment liens, such payment shall be treated as
part of Acquisition Cost of a Residence.
The term "Acquisition Cost" also does not include the value of services
performed by the Mortgagor or members of the Mortgagor's family In completing the
Residence.
Average Area Purchase Price means the average area purchase price
determined for homes which have not been previously occupied as published by the
United States Treasury Department for application to the jurisdiction within which
the Residence is located or, if higher, such amount as shall be determined by the
Agency, (based upon (i) a comprehensive survey (which survey shall be based upon
data in the relevant county assessor's office) of residential housing sales in the
appropriate statistical area, and (ii) the opinion of nationally recognized bond or
tax counsel that a purchase price determined by the Agency shall not cause the
interest on the Bonds to be subject to Federal income taxation) as the average
purchase price of all applicable single-family residences in said statistical area
for the most recent twelve (12) month period for which sufficient statistical
information is available.
EXHIBIT A
1
Present Ownership Interest (not applicable to last 10% of Developer's
Reservation) includes (i) a fee simple interest; (ii) a joint tenancy, a tenancy in
common, or tenancy by the entirety; (iii) the interest of a tenant - shareholder in
the cooperative; (iv) a life estate; (v) a land contract (i.e., a contract pursuant
to which possession and the benefits and burdens of ownership are transferred
although legal title is not transferred until some later time); and (vi) an
interest held in trust for the Mortgagor (whether or not created by the Mortgagor)
that would constitute a present ownership interest if held directly by the
Mortgagor. The term "Present Ownership Interest" excludes (i) a remainder
interest; (ii) a lease with or without an option to purchase; (iii) a mere
expectancy to inherit an interest in a principal residence; (iv) the interest that
a purchaser of a residence acquires on the execution of a purchase contract; and
(v) an interest in other than a principal residence during the previous three (3)
years.
EXHIBIT A
2
NO.
(LETTERHEAD OF ISSUING BANK)
LETTER OF CREDIT
January _, 1983
[Insert Name and Address of Trustee]
We establish our irrevocable Letter of Credit dated , 1983, in
your favor for the Account of [insert name of Developer] up to the aggregate sum of
[insert dollar amount equal to % of Reservation] available by your draft(s) at
sight drawn on us at our office insert issuing bank address] and accompanied by
the fallowing document:
A statement signed by [Insert name of Trustee], Trustee for the
Rancho Cucamonga Redevelopment Agency, Rancho Cucamonga, California,
certifying that the drawing amount represents payment due under
requirements specified in the Commitment Contract (and Reservation
of Funds) dated as of , 1983, as agreed by and between the
[Insert name of Trustee Trustee for the Rancho Cucamonga
Redevelopment Agency and [insert name of Developer], and constitutes
an amount equal to the unpaid portion of the Program Deposit payable
to [insert name of Trustee] for the Rancho Cucamonga Redevelopment
Agency.
The amount of this Letter of Credit may be periodically reduced upon receipt
by us of a statement jointly signed by the Trustee for the Rancho Cucamonga
Redevelopment Agency and [Insert name of Developer] specifying the amount of the
reduction and the effective date thereof.
Except as otherwise stated, this credit is subject to the Uniform Customs
and Practice Documentary Credits (1974 revision) International Chamber of Commerce
Publication No. 290,
This Letter of Credit expires at our counters on:
Very truly yours,
Authorized Signature Authorized Signature
EXHIBIT 8
1
(Letterhead of Counsel to Developer)
(Date)
Rancho Cucamonga Redevelopment Agency
Stone & Youngberg
One California Street
Suite 2800
San Francisco, California 94111
Rancho Cucamonga Redevelopment Agency
Residential Mortgage Revenue Bonds
1983 Series A
Dear Sirs:
We have acted as special counsel for (name of Developer) (the "Developer ")
in connection with its participation in the residential development, located in the
Rancho Redevelopment Project Area (the "Development "), the permanent financing for
which is proposed to be provided from proceeds of Residential Mortgage Revenue
Bonds, 1983 Series A (the "Bonds ") being issued by the Rancho Cucamonga
Redevelopment Agency (the "Agency ") pursuant to a resolution of the Agency. The
Bonds have been sold to Stone & Youngberg, as purchasers thereof.
In that connection we have examined originals or copies identified to our
satisfaction of the Commitment Contract (and Reservation of Funds) between the
Developer and the Agency (the "Commitment Contract (and Reservation of Funds) "),
the parts of the preliminary Official Statement relating to the Bonds which
describe the Developer and the Development and such other documents we deemed
necessary in order to render this opinion.
Based on the foregoing, we are of the opinion that:
(i) The Developer is a duly created and lawfully existing California
(corporation) (general partnership) (limited partnership).
(ii) The Commitment Contract (and Reservation of Funds) has been duly
authorized, executed and delivered by the Developer and constitutes a valid, legal
and binding instrument enforceable against the Developer in accordance with its
terms.
(iii) The carrying out by the Developer of the transactions
contemplated by the preliminary Official Statement will not violate the (Article of
Partnership) (Charter or Bylaws) of the Developer or any court order by which the
Developer is bound, and will not violate the provisions of, or constitute a default
EXHIBIT C
I
under, any agreement, indenture, mortgage, lease, note or other obligation or
instrument to which the Developer is a party and, except as indicated in the
preliminary Official Statement, no approval or other action of any governmental
authority or agency is required in connection therewith.
(iv) To our knowledge, except as set forth in the preliminary
Official Statement, there is no action, suit, proceeding, inquiry or investigation -
at law or in equity or before or by any public board or body against or affecting
the Developer or any basis therefor, wherein an unfavorable decision, ruling or
finding would adversely affect the transactions on the part of the undersigned
contemplated by the preliminary Official Statement.
(v) To our knowledge, the Developer is not in default in any material
respect under any agreement, indenture, mortgage, lease, note or other obligation
or instrument to which it is a party and the consummation by it of the transactions
covered by this letter, the Purchase Contract or the preliminary Official Statement
will not conflict with, or constitute a default under, any such agreement,
indenture, mortgage, lease, note or other obligation or instrument.
We have reviewed the description of the Developer and its activities in the
preliminary Official Statement dated 1983. Nothing has come to our
attention which would lead us to believe that such description contains any untrue
statement of a material fact or omits to state a material fact necessary in order to
make the statements contained therein, in light of the circumstances under which
they are made, not misleading.
Very truly yours,
(To be delivered to Agency prior to delivery of the Bonds
to the Purchaser)
EXHIBIT C
2
(Letterhead of Developer)
(Date)
Rancho Cucamonga Redevelopment Agency
Stone & Youngberg
One California Street
Suite 2800
San Francisco, California 94111
Rancho Cucamonga Redevelopment Agency
Residential Mortgage Revenue Bonds
1983 Series A
Dear Sirs:
We refer to the Commitment Contract (and Reservation of Funds) dated as of
1983, between the undersigned and the Rancho Cucamonga
Redevelopment Agency.
We hereby reaffirm as of the date hereof and as though made at the date
hereof the representations and warranties made by us in said Commitment Contract
(and Reservation of Funds) except that, for purposes of this letter all references
to the Preliminary Official Statement shall be deemed to be references to the Final
Official Statement dated , 1983, of the Agency relating to the Bonds.
Very truly yours,
(To be delivered to Agency prior to delivery of the Bonds
to the Purchaser)
EXHIBIT D
1
SELLER'S AFFIDAVIT
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
RESIDENTIAL MORTGAGE REVENUE BONDS
The undersigned, as proposed seller of a residence to a Mortgagor, for a-
residence the permanent financing of which will be provided by the Rancho Cucamonga
Redevelopment Agency from the proceeds of its Residential Mortgage Revenue Bonds,
1983 Series A, and to induce the private insurer of the applicable Mortgage Loan to
provide private mortgage insurance, does hereby declare and certify, under penalty
of perjury that each of the following statements is true and correct:
(1) that the Residence is a single - family Residence, the construction
of which is complete;
(2) that all of the land being sold or leased with the Residence
reasonably maintains the basic livability of the Residence, and the land is not
subject to further subdivision;
(3) that the Acquisition Cost of the Residence does not exceed one
hundred ten percent (110%) of the Average Area Purchase Price;
(4) that the settlement and financing costs do not exceed the usual
and reasonable costs that would be paid by the Mortgagor where financing was not
provided through the Bonds;
(5) that the seller has not entered into any agreement with the
Mortgagor pursuant to which the Mortgagor has agreed to pay moneys in excess of the
Acquisition Cost of the Residence (other than rentals, in an amount not to exceed
the fair rental value of the Residence as determined by the Lender, pursuant to a
temporary rental agreement with seller pending purchase by the Trustee on behalf of
the Agency of the Mortgage Loan secured by the Residence) or pursuant to which any
portion of the Residence has been left unfinished or any fixtures or other
architectural appointments have been omitted or removed from the Residence in order
to reduce the Acquisition Cost;
(6) that the Residence is not located on leased land or, if the
Residence is purchased subject to any ground lease, then the capitalized value of
such ground lease has been incouded in the Acquisition Cost;
(7) that the Residence is located within the boundaries of the City
of Rancho Cucamonga;
(8) that no portion of the proceeds of the Mortgage Loan will be used
to acquire or replace an existing mortgage or deed of trust, except for
construction or other temporary financing;
(9) that the Residence has not been previously occupied except
pursuant to a temporary rental arrangement with seller pending purchase by the
Trustee on behalf of the Agency of the Mortgage Loan secured by the Residence;
Exhibit E
1
(10) that the seller has read the affidavit and the definitions of
Acquisition Cost and Average Area Purchase Price attached to the affidavit;
(11) that the seller has been informed and understands that authorized
representatives of the Lender intent to conduct investigations to assure the truth
of the aforementioned facts at the time of execution by the seller of the affidavit
and that the seller agrees to provide such information or access to information,
including but not limited to business records of the seller, as will assist the
Lender in its investigation;
(12) that the seller is informed and understands that perjury is
punishable by imprisonment in the state prison for up to four years and, in
addition, that falsification of the affidavit may cause seller to be liable in a
civil suit for monetary damages.
Subscribed and sworn to before me under oath this _ day of 19
Notary Public in and for the
County of
Exhibit E
2
Q841C
JHHW:ACH:ea 01/18/83
TRUST INDENTURE
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
Trustee
Dated as of March 1, 1983
Relating to
$39,000,000
Residential Mortgage Revenue Bonds, 1983 Series A
TRUST INDENTURE
TABLE OF CONTENTS
(This Table of Contents is for convenience of reference only and is not a part
of the Trust Indenture.)
Page
Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Preambles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I
Granting Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
101. Authority for this Indenture . . . . . . . . . . . . 5
102. Indenture Constitutes Contract . . . . . . . . . . . . . . . . 5
103. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ARTICLE II
AUTHORIZATION AND ISSUANCE OF BONDS
201.
Authorization of Bonds . . . . . . . . . . . . . . . . . . . . 17
202.
Purposes . . . . . . . . . . . . . . . . . . . . . . 17
203.
Date and Maturities . . . . . . . . . . . . . . . . . . . . . 17
204.
Interest Payments. . . . . . . . . . . . . . . . . . 18
205.
Denominations, Numbers and Letters . . . . . . . . . . . . . . 18
206.
Place of Payment, Record Owner . . . . . . . . . . 18
207,
Conditions Precedent to Delivery of Bonds. . . . . . . . . . . 18
208.
Sale of Bands . . . . . . . . . . . . . . . . . . . . . . . . . 19
209.
Official Statement . . . . . . . . . . . . . . . . . . . . . . 19
210.
Delivery of Bonds. . . . . . . . . . . . . . . . 19
211.
Authority to Consummate Transaction . . . . . . . . . . . . . . 19
ARTICLE III
GENERAL TERMS AND PROVISIONS OF BONDS
301. Date of Bonds. . . . . . . . . . . . . . . . . . . 21
302. Principal Installment Date . . . . . . . . . . . . . . . . . . 21
303. Medium of Payment . . . . . . . . . . . . . . . . . . . . . . . 21
304. Form and Date . . . . . . . . . . . . . . . . . . . . . . . . . 21
0
Page
305.
Legends. . . . .
22
306.
Execution and Authentication . . . . . . . . . .
22
307.
Interchangeability of Bonds. . . . . .
22
308.
Transfer and Registry. . . . . . .
22
309.
Transfer of Fully Registered Bonds . . .
23
310.
Regulations with Respect to Exchanges and Transfers.
23
311.
Bonds Mutilated, Destroyed, Stolen or Lost
23
312.
Preparation of Definitive Bonds; Temporary Bonds . . . . .
. . 24
ARTICLE IV
REDEMPTION OF BONDS
401.
Privilege
of Redemption and Redemption Price . . . . .
. . . . 25
402.
Selection
of Bonds to be Redeemed by Lot . . . . . . .
. . . . 27
403.
Notice of
Redemption . . . . . . . . . . . . . .
. . . . 28
404.
Payment of
Redeemed Bonds . . . . . . . . . . . . . . .
. . . . 28
ARTICLE V
ESTABLISHMENT OF CAPITAL FUNDS AND ACCOUNTS AND
APPLICATION OF BOND PROCEEDS AND OTHER MONEYS
501.
Establishment of Bond Proceeds Fund. . . . . . . . .
30
502.
Application of Proceeds.
30
503.
Deposit Mortgage Loan Purchase Account, Letter of Credit
30
504.
Application of Issuance Expense Account. . . . . . . .
30
505.
Application of Mortgage Loan Purchase Account;
In General;.
31
506.
Documents Pertaining to Compliance with the Act.
32
507.
Documents Pertaining Principally to Compliance with
Other Applicable State Laws . . . . .
32
508.
Documents Pertaining to Compliance with Tax Act. .
33
509.
Documents Pertaining to Assurance of Adequacy of
Security. . . . . . . . . . . .
34
510.
Procedure for Disbursement . . . . .
35
511.
Closing of Mortgage Loan Purchase Account. . . . . . . . . .
. 37
ARTICLE VI
ESTABLISHMENT OF FUNDS AND
APPLICATION OF REVENUES AND OTHER MONEYS
601. Pledge of Pledged Revenues, Mortgage Insurance Proceeds,
Mortgages and Funds and Accounts, Nature of Obligations 38
ii.
Page
602.
Establishment of Funds and Accounts. . . . . . . . .
. . 38
603.
Deposit of Pledged Revenues and Escrow Payments. . . . . .
. . -.39
604.
Administration of the Revenue Fund . . . . . . . . . . . .
. . 39
605.
Application of Operating Fund. . . . . . . .
. . 40
606.
Application of Interest and Principal Funds. . . . . . . .
. . '40
607.
Application of Sinking Fund. . . . . . . . . . . .
. . 40
608.
Appliction of Prior Redemption Fund. . .
. . 41
609.
Deficiencies in Interest, Principal and Sinking Funds. . .
. . 42
610.
Application of Debt Service Reserve Fund . . . . . . . . .
. . 42
611.
Application of Escrow Payments . . . . . . . . . . . . . .
. . 42
612.
Call of All Outstanding Bonds . . . . . . . . . . . . . . .
. . 43
613.
No Unauthorized Transfers . . . . . . . . . . . . . . . . .
. . 43
614.
Quarterly Reports . . . . . . . . . . . . . . . . . . . . .
. . 43
ARTICLE VII
SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS
701. Security for Deposits. . . . . . . . . . . . . 44
702. Investment of Moneys Held by the Trustee . . . . . . . . . . . 44
703. Investment Yield Limitations . . . . . . . . . . . . 44
704. Report and Payment of Excess Investment Earning
to United States . . . . . . . . . . . . . . . . . . . . . . 45
ARTICLE VIII
THE TRUSTEE
801.
Trustee Appointment and Acceptance of Duties . . . . . . .
. . 46
802.
Responsibilities of Trustee . . . . . . . . . . . . . . . .
. . 46
803.
Funds Held in Trust. . . . . . . . . . . . . .
. . 46
804.
Evidence on Which Trustee May Act . . . . . . . . . . . . .
. . 47
805.
Trustee Reliance on Documents . . . . . . . . . . . . . . .
47
806.
Compensation and Expenses . . . . . . . . . . . . . . . . .
. . 48
807,
Permitted Acts and Functions . . . . . . . . . . . . . . .
. . 48
808.
Resignation of Trustee . . . . . . . . . . . . . . . . .
. . 48
809.
Removal of Trustee . . . . . . . . . . . . . . . .
. . 48
810.
Appointment of Successor Trustee . . . . .
. . 48
811.
Transfer of Rights and Property to Successor Trustee . . .
. . 49
812,
Merger, Conversion or Consolidation . . . . . . . . . . . .
. . 49
ARTICLE IX
COVENANTS OF THE AGENCY
901. Payment of Bonds . . . . . . . . . . . . . . . . 50
902. Extension of Payment of Bonds . . . . . . . . . . . . . . . . . 50
iii.
ARTICLE X
SUPPLEMENTAL INDENTURES
. , . 56
1001. Adoption and Filing.
1002. supplemental Indentures Effective with Consent of 56
Bondholders . 56
1003. General Provisions Relating to Supplemental Indenture. . . . .
ARTICLE XI
AMENDMENTS OF INDENTURE
Page
1101.
Powers of Amendment.
50
903.
Further Assurances . . . . . . . . . . . .
Power to Issue Bonds and Make Pledges. . . . . . . .
50
. . ' . . 51
904,
905.
906.
Accounts and Reports . . . . . . . . . . . •
Personnel and Servicing of Mortgage Loans. . . . . •
• . 51"
51
907.
Payment of Premiums . . . . . . . . . . . . . . . . •
. . • , 51
.
908.
909,
Waiver of Laws . . . " . . . • • • . . ' ' ' ' ' •
Compliance with Conditions Precedent . . . . . . .
' 52
. ' ; . 52
910.
Issuance of Additional Obligations . . . . . . .
. 52
911.
Program Covenants . . . . . . . . . . . . . . . . •
55
912,
Covenant Relating to Arbitrage . . . . . . . . .
. • 55
.
913.
Non -Arbitrage Certification . . . . . . . . . . . .
. . . .
ARTICLE X
SUPPLEMENTAL INDENTURES
. , . 56
1001. Adoption and Filing.
1002. supplemental Indentures Effective with Consent of 56
Bondholders . 56
1003. General Provisions Relating to Supplemental Indenture. . . . .
ARTICLE XI
AMENDMENTS OF INDENTURE
ARTICLE XII
DEFAULTS AND REMEDIES
. . 58
1101.
Powers of Amendment.
. 58
1102.
Consent of Bondholders . . . . . . . . . . . .
. . . 59
1103.
Modifications by Unanimous Consent . . . . . .
59
1104.
Mailing . . . . . . . . . . . . . . . . . . . .
. 59
1105.
Exclusion of Bonds . . . . . . . . . . . • .
.
. . , 60
1106.
Notation on Bonds . . . . . . . . . . . . . . .
.
ARTICLE XII
DEFAULTS AND REMEDIES
iv.
I i
. . 61
1201.
Events of Default.
,
61
1202.
1203.
Remedies . . . .
Priority of Payments After Default . . . . . . . . .
62
63
1204.
Termination of Proceedings . . . . . . . . . . • .
. ' 63
1205,
Bondholders' Direction of Proceedings.
63
1206.
Limitations on Rights of Bondholders . . . . . . • .
Not Required. . . .
. . 64
. .
1207.
Possession of Bonds by Trustee .
.
. . 64
1208.
Remedies Not Exclusive . . . . . • • . . .
, 64
,
1209.
No Waiver of Default . . . . . . . . . . . . . .
65
1210.
Notice of Event of Default . . . . . . . . . . . . .
iv.
I i
Page
ARTICLE %III --
EXECUTION OF INSTRUMENTS BY BONDHOLDERS AND PROOFS OF
OWNERSHIP OF BONDS
1301. Evidence of Signatures of Bondholders and Ownership
of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
ARTICLE XIV
DEFEASANCE
1401. Defeasance . . . . . . . . . . . . . . . . . . . . . . . . . . 67
ARTICLE XV
FORM AND EXECUTION OF BONDS
1501. Form of Bonds . . . . . . . . . . . . . . . . . . . . . . . . . 69
ARTICLE XVI
MISCELLANEOUS
1601.
Preservation and Inspection of Documents . . . . . .
. . . . . 79
1602.
Destruction of Bonds.. . . . . . . . . . . . . . .
. . . . . 79
1603.
Parties of Interest. . . . . . . . . . . .
. . . . . 79
1604.
No Recourse Under Indenture or on Bonds. . . . . . .
. . . . . 79
1605.
Survival of Covenants . . . . . . . . . . . . . . . .
. . . . . 79
1606.
Severability . . . . . . . . . . . . . . . . . . . .
. . . . . 79
1607.
Headings . . . . . . . . . . . . . . . . . . . . .
. . . . . 80
1608.
Conflict . . . . . . . . . . . . . . . . . . . . . .
. . . . . 80
v.
TRUST INDENTURE
THIS TRUST INDENTURE is made and entered into as of March 1, 1983, by and
between the Rancho Cucamonga Redevelopment Agency, a public body, corporate and
politic, organized and existing under, and by virtue of the laws of the State of
California ( "Agency "), and a national banking
association, duly organized and existing under the laws of the United States of
America and authorized to accept and execute trusts of the character herein set out
under and by virtue of the laws of the State of California with its principal
corporate trust office located in Los Angeles, California, as trustee ( "Trustee "),
W I T NESS E T H:
WHEREAS, the legislature of the State of California has authorized
redevelopment agencies to make long -term, low- interest loans through qualified
mortgage lenders to finance residential construction in redevelopment project
areas (and, under certain circumstances, outside of such areas) in order to
encourage investment and upgrading of such areas, and to issue bonds for the
purpose of financing such construction;
WHEREAS, for the purposes of financing residential construction within the
Rancho Redevelopment Project Area of the Agency, the Agency has developed a
program (the Residential Mortgage Financing Program" or the "Program ") with
respect to (i) the issuance by the Agency of its Residential Mortgage Revenue
Bonds, 1983 Series A (the "Bonds ") authorized by Resolution No. , adopted
by the Agency on 1983, to be issued and secured by this Trust
Indenture (the "Indenture "), and (ii) the use of the Bond proceeds by the Agency to
purchase without recourse from a lending institution (the "Lender ") certain
mortgage loans (the "Mortgage Loans "), made to finance single- family dwelling units
(the "Residences ") intended for use as the permanent place of residence by eligible
persons, which Mortgage Loans are to be originated and serviced by the Lender
pursuant to a Mortgage Loan Purchase Agreement and a Servicin g Agreement reement (the
"Agreements ");
WHEREAS, further to that end, the Agency and developers of the Residences
have heretofore entered into agreements (the "Commitment Contracts ") for the
purpose of setting forth, among other things, the terms and conditions pursuant to
which the developers and the Lender will deliver Mortgage Loans for purchase by the
Trustee on behalf of the Agency and the Agency will reserve proceeds of the Bonds to
provide funds for such purpose;
WHEREAS, the Agency, the Trustee and the Lender have entered into the
Agreements under which the Agency has agreed to purchase the Mortgage Loans and the
Lender has agreed to sell without recourse and to service the Mortgage Loans;
WHEREAS, the Agency has now determined to issue the Bonds and to enter into
this Indenture to secure the Bonds by a pledge and assignment of the Mortgage
Loans, the proceeds of the Bonds, certain insurance proceeds, certain reserve
funds, and its rights under the Commitment Contracts and the Agreements; and --
WHEREAS, all things necessary to cause the Bonds, when authenticated by the
Trustee and issued as in this Indenture provided, the valid, binding and legal
special obligations of the Agency according to the import thereof, and to
constitute this Indenture a valid assignment and pledge of the amounts pledged to
the payment of principal of and interest on the Bonds and a valid pledge and
assignment of the rights of the Agency in the Mortgage Loans and the Mortgages
securing the same, the Commitment Contracts and the Agreements; and the creation,
execution and delivery of this Indenture, and the creation, execution and issuance
of the Bonds, subject to the terms hereof, have in all respects been duly
authorized;
NOW, THEREFORE, THIS TRUST INDENTURE WITNESSETH:
GRANTING CLAUSES
Agency, in consideration of the premises and the acceptance by Trustee of
the trusts hereby created and of the purchase and acceptance of the Bonds by the
holders thereof, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, in order to secure the payment of the principal of
and interest on the Bonds according to their tenor and effect and to secure the
performance and observance by Agency of all the covenants expressed or implied
herein and in the Bonds, does hereby grant, bargain, sell, convey, mortgage, assign
and pledge unto, and grant a security interest in the following to
as Trustee, and its successors in trust and
assigns forever, for the securing of the performance of the obligations of Agency
hereinafter set forth:
GRANTING CLAUSE FIRST
All right, title and interest of Agency in and to the Commitment Contracts
and the Agreements, including all extensions and renewals of their terms, if any,
including, but without limiting the generality of the foregoing, the present and
continuing right to make claim for, collect, receive and receipt for any income,
revenues, issues, profits, insurance proceeds and other sums of money payable to or
receivable by Agency under the Commitment Contracts and the Agreements, whether
payable pursuant to the Commitment Contracts and the Agreements or otherwise, to
bring actions and proceedings under the Commitment Contracts and the Agreements or
for the enforcement thereof, and to do any and all things which Agency is or may
become entitled to do under the Commitment Contracts and the Agreements.
GRANTING CLAUSE SECOND
All right, title and interest of Agency in and to the Mortgage Loans,
including all extensions and renewals of any of the terms thereof, if any,
including, but without limiting the generality of the foregoing, the present and
continuing right to make claims for, collect, receive and receipt for any income,
revenues, issues and profits and other sums of money payable or receivable by
Agency or by any person, firm or corporation for or on behalf of Agency under the
Mortgage Loans and related Mortgages, whether payable pursuant to the Mortgage
Loans and related Mortgages or arising from the sale or disposition thereof or from
the proceeds of Mortgage Insurance thereon or otherwise, to bring actions and
proceedings under the Mortgage Loans and related Mortgages or for the enforcement
thereof, and to do any and all things which Agency is or may become entitled to do
under the Mortgage Loans and related Mortgages, exceoting, however, from the pledge
hereof all Excess Investment Earnings (as herein defined).
GRANTING CLAUSE THIRD
All moneys and securities and all other rights of every name and nature from
time to time hereafter by delivery or by writing of any kind pledged, assigned or
transferred as and for additional security hereunder or under the commitment
Contracts or Agreements to Trustee by Agency or by anyone in its behalf, or with its
written consent and to hold and apply the same, subject to the terms hereof.
TO HAVE AND TO HOLD all and singular the Trust Estate, whether now owned or
hereafter acquired, unto Trustee and its respective successors in trust and assigns
forever for the benefit of the Bondholders and such pledge shall constitute a lien
on and security interest in such Trust Estate;
IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for the
equal and proportionate benefit, security and protection of all present and future
holders of the Bonds issued under and secured by this Indenture without privilege,
priority or distinction as to the lien or otherwise of any of the Bonds over any of
the other Bonds;
PROVIDED, HOWEVER, that if Agency, its successors or assigns shall well and
truly pay, or cause to be paid, the principal of and interest on the Bonds due or to
become due thereon, at the times and in the manner mentioned in the Bonds according
to the true intent and meaning thereof, and shall well and truly keep, perform and
observe all the covenants and conditions pursuant to the terms of this Indenture to
be kept, performed and observed by it, and shall pay or cause to be paid to Trustee
all sums of money due or to become due in accordance with the terms and provisions
hereof, then upon such final payments or deposits as herein provided, this
Indenture and the rights hereby granted shall cease, determine and be void;
otherwise this Indenture shall remain in full force and effect.
In connection with the foregoing transfer, pledge and assignment, Agency
does hereby deliver to, and deposit with, Trustee for such purpose, and Trustee
hereby acknowledges receipt of, an original counterpart of the Agreements whereby
it has directed each Lender to make certain payments and deliver certain documents
to Trustee and the Trustee hereby agrees to each and all of the obligations, terms
and provisions set forth in the Agreement applicable to it.
AND, PROVIDED FURTHER, that Trustee agrees to accept receipt, subject to
review as stated herein, of the Mortgage Notes and the assignments referred to
herein, and shall cause such assignments to be duly recorded, and declares that it
holds and will hold for the sole benefit of the Bondholders such documents
delivered hereunder to it as Trustee. Trustee hereby acknowledges, approves and
agrees to the terms, conditions, appointments and agencies of the Agreements as
they relate to it and its participation in the transactions contemplated thereby.
THIS TRUST INDENTURE FURTHER WITNESSETH, and it is expressly declared, that
all Bonds issued and secured hereunder are to be issued, authenticated and
delivered, and all said property, rights and interests, including, without
limitation, the amounts hereby assigned and pledged, are to be dealt with and
disposed of, under, upon.. and subject to the terms, conditions, stipulations,
covenants, agreements, trusts, uses and purposes hereinafter expressed, and Agency
has agreed and covenanted, and does hereby agree and covenant, with the Trustee and
with the respective holders, from time to time, of the Bonds, or any part thereof,
as follows (subject, however, to the provisions relating to Excess Investment
Earnings herein):
ARTICLE I
STATUTORY AUTHORITY AND DEFINITIONS
101. Authority for this Indenture. Thi, Indenture is entered into
pursuant to the provisions of the Act and Resolution No. adopted by the
Agency on , 1983.
102. Indenture Constitutes Contract. In consideration of the purchase and
acceptance of any and all of the Bonds issued hereunder by those who shall hold the
same from time to time, this Indenture shall be deemed to be and shall constitute a
contract among the Agency, the Trustee and the Holders of the Bonds. The pledge
made in this Indenture and the provisions, covenants and agreements herein set
forth to be performed by or on behalf of the Agency shall be for the equal benefit,
protection and security of the Holders of any and all of the Bonds. All of the
Bonds, without regard to the time or times of their issuance or maturity, shall be
of equal rank without preference, priority or distinction of any of the Bonds over
any other thereof, except as expressly provided in or permitted by this Indenture.
103. Definitions. The following terms shall, for all purposes of this
Indenture, have thefollowing meanings unless the context shall clearly require
some other meaning:
Accountant's Certificate means a statement signed by an Independent
certified public accountant (who may be the accountant or a member of the firm of
accountants who regularly audits the books and accounts of the Agency) from time to
time selected by the Agency.
Acquisition Cost means the cost of acquiring a Residence from the developers
or other sellers as a completed residential unit. "Acquisition Cost" includes all
amounts paid, either in cash or in kind, by the mortgagor (or a related party or for
the benefit of the mortgagor) to the developer or other seller (or a related party
or for the benefit of the developer or other seller) as consideration for the
Residence. If the Residence is purchased subject to a ground lease then the term
"Acquisition Cost" includes the capitalized value of any ground rent payable with
respect thereto.
If a Residence is incomplete, the term "Acquisition Cost" includes the
reasonable cost of completing the Residence whether or not the cost of completing
construction is to be financed with Bond proceeds. For example, where a mortgagor
purchases a building which is so incomplete that occupancy of the building is not
permitted under local law, the term "Acquisition Cost" includes the cost of
completing the building so that occupancy of the building is permitted. As a
further example, where a mortgagor agrees to purchase fixtures at a separate price
from the seller or otherwise, the term "Acquisition Cost" includes the price paid
for such fixtures.
The term "Acquisition Cost" does not include usual and reasonable settlement
or financing costs. "Settlement costs" include titling and transfer costs, title
insurance, survey fees, and other similar costs, "Financing costs" include credit
reference fees, legal fees, appraisal expenses, "points" which are paid by the
buyer (but not the seller even though borne by the buyer through a higher purchase
price) or other costs of financing the Residence. However, settlement costs and
financing costs are excluded in determining Acquisition Cost only to the extent
that such amounts do not exceed the usual and reasonable costs which would be Paid
by the buyer where financing is not provided through the Bonds. For example, if the
purchaser agrees to Pay to the seller more than a pro rata share of property taxes,
such excess shall be treated as part of Acquisition Cost of a Residence. In
addition, if the purchaser agrees to pay to the seller an amount sufficient to pay
outstanding assessment liens, such payment shall be treated as part of Acquisition
Cost of a Residence.
The term "Acquisition Cost" also does not include the value of services
performed by the mortgagor or members of the mortgagor's family in completing the
Residence.
Act means Chapter 8 (commencing with Section 33750) of Part 1 of Division 24
of the Health and Safety Code of the State, as now enacted and as hereafter amended.
Authorized Officer means any one of the officers or employees of the Agency
authorized by resolution of the Agency to perform the act or sign the document in
question.
Average Area Purchase Price means the average area purchase price
determined for homes which have not been previously occupied within the meaning of
the Tax Act as published by the United States Treasury Department for application
to the Agency or, if higher, such amount as shall be determined by the Agency,
(based upon (i) a comprehensive survey (which survey shall include data in the
relevant Agency office) of residential housing sales in the appropriate statistical
area, and (ii) the opinion of nationally recognized bond or tax counsel that the
purchase price or prices determined by the Agency shall not cause the interest on
the Bonds to be subject to Federal income taxation) as the average purchase price
Of all applicable single - family residences in said statistical area for the most
recent twelve (12) month Period for which sufficient statistical information is
available.
Bond or Bonds means any Bond or Bonds, as the case may be, of the Rancho
Cucamonga Redevelopment Agency, Residential Mortgage Revenue Bonds, 1983 Series A,
duly authorized by and at any time Outstanding pursuant to this Indenture, and
includes Deferred Interest Bonds except where otherwise stated or the context
otherwise requires.
Bondholder or Holder or Holders of Bonds or any similar term, when used
with respect to Bonds, means any person who shall be the registered owner of any
Outstanding Bond or Bonds.
Bond Oblisation means the aggregate amount as of the Interest Payment Date
next prior to the date of calculation (unless the date of calculation is an
Interest Payment Date in which case as of such Interest Payment Date) of (i) the
principal of Outstanding Bonds and (ii) the aggregate Compounded Amount then
applicable to Outstanding Deferred Interest Bonds.
Bond Proceeds Fund means the Fund by that name established by Section 501.
Bond Purchase Contract means the Purchase Contract, dated as of
1983, by and between the Agency and Stone & Youngberg, the purchasers of the Bonds
wherein the Agency agrees to sell and the purchasers agree to purchase the Bonds.
Bond Register means the-books kept hereunder by the Trustee for registration
and transfer of the Bonds.
Bond Year means the twelve (12) month period commencing on March 1 of each
Year and continuing through the following February 28 (29).
Certificate of Excess Investment Earnings means the Trustee's determina-
tion of Excess Investment Earninas, as of any particular date, including
computations in such detail as will support the conclusion of Excess Investment
Earnings.
City means the City of Rancho Cucamonga, California.
Code means the Internal Revenue Code of 1954, as amended, and the
regulations promulgated thereunder.
Commitment Contract means the Commitment Contract (and Reservation of
Funds) between the Agency and each developer of each Project, and approved and
accepted by the Trustee and applicable Lender, whereby the Agency commits funds to
purchase and the developer and the Lender agree to provide Mortgage Loans for
purchase by the Trustee on behalf of the Agency.
Compliance Agreement means an agreement among the Agency, the Private
Mortgage Insurer and the Trustee pursuant to which the Private Mortgage Insurer
shall provide additional assurance that the Mortgage Loans are in compliance with
the Tax Act.
Costs of Issuance means items of expense payable or reimbursable directly
or indirectly by the Agency and related to the authorization., sale and issuance of
Bonds, which items of expense shall include, but not be limited to, printing costs,
costs of reproducing and binding documents, closing costs, filing and recording
fees, initial fees and charges of the Trustee, Bond (underwriters') discount, legal
fees and charges, including bond counsel and special tax counsel, professional
consultants' fees, including feasibility consultant fees, costs of credit ratings,
fees and charges for execution, transportation and safekeeping of Bonds, Special
Hazard Insurance premiums for the initial Bond Year or other insurance and other
costs, charges and fees in connection with the foregoing,
Counsel's Opinion means an opinion signed by any attorney or firm of
attorneys licensed to practice in the state in which said attorney or firm
maintains an office, selected by the Agency, including the Agency Counsel.
Debt Service means the sums obtained for any Bond Year after the computation
Is made, by totaling the following for each such Bond Year:
(1) The Principal Installment payable in such Bond Year; and
(2) The Interest Installment payable in such Bond Year on the
aggregate principal amount of Bonds which would be Outstanding in such Bond Year
if the Bonds Outstanding on the date of such computation were to mature or be
redeemed in accordance with the maturity schedule or schedules for Outstanding,
Serial Bonds and the schedule or schedules of Sinking Fund Installments for'
Outstanding Term Bonds ( including with respect to the Deferred Interest Bonds
interest in the year in which the Deferred Interest Bonds are to mature or be
redeemed). At the time and for the purpose of making such computation, the amount
of Term Bonds already retired due to optional or spec4al redemption in advance of
the above mentioned schedule or schedules shall be deducted from the remaining
amounts thereof in accordance with the pro rata reduction in Sinking Fund
Installments made pursuant to Section 401 hereof.
Debt Service Reserve Requirement means an amount equal to percent (
— %) of the aggregate unpaid principal balance of the Mortgage Loans and reducing
amounts to cause the amount on deposit in the Debt Service Reserve Fund which is
invested at a materially higher yield than the Yield on the Bonds to be equal to or
less than 150 of debt service on the Bonds for the current year.
Defaulted Mortgage Loan means any Mortgage Loan described in an Officer's
Certificate and stated to be in default in accordance with its terms or any
Mortgage Loan not so described in an Officer's Certificate on which payments are
sixty (60) days in arrears.
Deferred Interest Bonds means the Term Bonds maturing on 1, 20 _
Escrow Payments means all payments made in order to obtain or maintain
Private Mortgage Insurance, Hazard Insurance, including earthquake insurance, and
taxes or other governmental charges or other similar charges to a mortgagor
required or permitted to be escrowed in an impound account.
Estimated Excess Investment Earnings antl Excess Investment Earn in are
defined in Section 704.
Estimated Excess Investment Earninqs Account and Excess Investment Fund
mean the Account and Funtl by those names established by Section 602
Fair Market Value means the lower of (i) the value of the Residence as
determined by a qualified appraiser acceptable to the Lender, or (ti) the sale
price of the Residence.
Federal Securities means United States Treasury notes, bonds, bills or
certificates of indebtedness or those which are direct and general obligations of
and for which the full faith and credit of the United States are pledged for the
payment of principal and interest, including United States Treasury (book entry)
certificates, notes and bonds, state and local government series.
Financing means the lending of moneys or any other thing of value for the
purpose of facilitating Residential Construction pursuant to the Act and includes
the making of Mortgage Loans to purchasers of newly constructed Residences and the
purchase, servicing and selling of Mortgage Loans,
Fiscal Year means any twelve (12) consecutive calendar months commencing
with the first day of July and ending on the last day of the following June 30, or
such other twelve (12) consecutive months as shall be established, from time to
time, as the annual accounting period of the Agency.
Fully Registered Bonds means Bonds registered as to principal and interest
and payable to the registered owner.
Fund or Account means a Fund or Account established by this Indenture
Hazard Insurance means insurance, including earthquake insurance coverage
and flood insurance coverage in the amount, if any, required by the terms of the
Special Hazard Insurance Policy, issued by a person qualified to issue such
insurance in this State, the scope of coverage of which shall be Dwelling Building
Special Form all risk as more particularly described in Section 509(0).
Household Income means the current gross aggregate income as calculated by
the Lender for purposes of qualifying a mortgagor for a Mortgage Loan together with
such gross aggregate income of all persons who intend to reside permanently with
such person in one dwelling unit, regardless of whether such persons resided with
such person at any time in the past.
Income ualified Persons or Families means persons or families, as
determined from time to time by the Agency in accordance with the Act and as
specified in the Commitment Contracts and, from time to time, in the Rules and
Regulations of the Agency, as follows:
(a) With respect to S principal amount of Mortgage Loans
there shall be no income limitation for mortgagors; and
(b) With respect to the remaining principal amount of Mortgage Loans,
the term
(1) means persons or families who are the first occupants of the
Residence and who have a Household Income which does not exceed 120% of the
wide median household income (120% currently equals g ).
Indenture means this Indenture and all amendments or supplements hereto
entered into in accordance herewith.
Independent when used with terms defim ng any professional, means any person
or firm, respectively, appointed by the Agency in such capacity, and who, or each
of whom, has a favorable reputation in the field in which his opinion or
certificate will be given, and:
(I) is in fact independent and not under domination of the Agency; and
el
(2) is not connected with the Agency as an officer or employee of the
Agency, but who may be regularly retained to make reports to the Agency.
Interest Fund means the Fund by that name established by Section 602.
Interest Installment means, as of any particular date of calculation, the
amount equal to unpaid interest then due, if any, plus an amount which will on the
next succeeding Interest Payment Date be equal to the interest to become due on the
Bonds on such next succeeding Interest Payment Date. Interest shall be calculated
on the basis of a 30 -day month, 360 -day year for all purposes of this Indenture
(including for such purpose interest to be paid on Deferred Interest Bonds which
mature or are required to be redeemed on that date).
Interest Payment Date means the dates specified in Section 2.04 during
which interest is due and payable on the Bonds.
_Issuance Expense Account means the Account by that name established by
Section 501.
Issue Date means the date of the Bonds.
Lender means any state or national bank or trust company, savings and loan
association, or mortgage banker authorized to acquire, hold and deal in mortgages
and is approved by FNMA or FHLMC, as a seller /servicer of mortgages. Such Mortgage
Lender shall have a place of business in the State, shall be authorized to do
business in the State, shall be authorized by the Agency to do business with the
Agency and to aid in Financing pursuant to the Act on behalf of the Agency.
Mort age means a deed of trust or other instrument which constitutes a first
lien (subject to Permitted Encumbrances) on real property or a leasehold interest
therein and improvements thereon, together with a promissory note or similar
interest bearing obligation made by a mortgagor, the repayment of which is secured
by such a lien on real property located within the Redevelopment Project Area and
improved by a Residence financed with the proceeds of the Bonds.
Mortgage Insurance means insurance provided by full coverage Private
Mortgage Insurance with respect to each Mortgage Loan.
Mortgage Insurer means any entity licensed to insure mortgages in the State
approved by the Agency and qualified to provide private mortgage insurance on
mortgages purchased by FNMA or FHLMC and, in addition, to qualify for participation
in the Agency's Mortgage Loan Financing Program, a private mortgage insurance
company must be recognized by Standard and Poor's Corporation as a company whose
private mortgage insurance may elevate the credit rating of securities secured by a
pool of conventional single - family mortgages to a security rated AA.
Mortgage Insurance Proceeds means the proceeds of Mortgage Insurance.
Mortgage Loan means a Mortgage made and executed for the purpose of
Financing Residential Construction and secured by a Mortgage, the payment of which
is insured by Mortgage Insurance.
10
Mortgage Loan Purchase Account means the Account by that name established
by Section 501.
Mortgage Loan Purchase Ag reement means an agreement by and among the
Agency, the Trustee and a Lender providing for the origination and purchase of
Mortgage Loans by the Trustee on behalf of the Agency, in substantially the form of
such Agreements delivered in connection with the issuance of the Bonds.
Officer's Certificate means a certificate of the Agency signed by an
Authorized Officer and filed with the Trustee.
Outstandino, when used with reference to Bonds anc as of any particular
date, describes all Bonds theretofore and thereupon being delivered except (i) any
Bond canceled by the Trustee at or before said date; (ii) any Bond for the payment
or redemption of which either (a) moneys, equal to the principal amount or
Redemption Price thereof, as the case may be, with interest to the date of maturity
or redemption date, or (b) Federal Securities or moneys as described and required
under the provisions of subsection (B) of Section 1401, shall have theretofore been
deposited with the Trustee in trust (whether upon or prior to maturity or the
redemption date of such Bond) and except in the case of a Bond to be paid at
maturity, of which notices of redemption shall have been given or provided for in
accordance with Article IV and (iii) any Bond in lieu of or in substitution for
which another Bond shall have been delivered pursuant to Sections 307, 309, 311,
312, 404 or 1106.
Permitted Encumbrances when used with respect to Mortgage Loans, means
those liens, covenants, conditions, restrictions, easements, encroachments or
rights which are customarily waived or accepted by prudent lending institutions and
the existence of which will not prevent the conveyance of good title to a mortgaged
Residence if a claim for Mortgage Insurance benefits with respect thereto shall
thereafter be made by the Trustee or a Servicer on behalf of the Agency.
Permitted Investments means any of the following investments which at the
time are legal investments for the Agency under the laws of the State of
California: (1) direct obligations of the United States of America (including
obligations issued or held in book-entry form on the books of the Department of the
Treasury of the United States of America) or obligations the principal of and
interest on which are guaranteed by the United States of America; (2) obligations,
debentures, notes or other evidence of indebtedness issued or guaranteed by any of
the following: Federal Farm Credit Banks, Banks for Cooperatives, Federal
Intermediate Credit Banks, Federal Residence Loan Bank, System, Export- Import Bank
of the United States, Federal Financing Bank, Federal Land Banks, Government
National Mortgage Association, Farmers Residence Administration, Federal Residence
Loan Mortgage Corporation or Federal Housing Administration; (3) interest- bearing
demand or time deposits (including certificates of deposit) in banks (including the
Trustee) and savings and loan associations secured at all times, in the manner and
to the extent provided by law, by collateral security described in clauses (1) or
(2) above and of a market value of no less than the amount of moneys so invested;
(4) investment agreements with any person provided that the obligations of any such
person under any such agreement are fully secured both as to principal and interest
by an irrevocable unconditional letter of credit issued by a bank, the unsecured
I1
general obligations of which (or of the parent) are rated "AA" or better by
Standard 6 Poor's Corporation, or (5) investments pursuant to the Investment
Agreement with dated ,
1983.
Pledged Revenues means Revenues and Private Mortgage Insurance Proceeds.
Prepayment means any amount received or recovered which reduces or
eliminates the principal amount of any Mortgage Loan other than scheduled
amortization payments of the principal amount of any Mortgage Loan less the amount
retained by any Servicer of such Mortgage Loan, as additional compensation on
account of such prepayment.
Present Ownership Interest includes (i) a fee simple interest; (ii) a joint
tenancy, a tenancy in common, or tenancy by the entirety; (iii) the interest of a
tenant - shareholder in the cooperative; (iv) a life estate; (v) a land contract
(i.e,, a contract pursuant to which possession and the benefits and burdens of
ownership are transferred although legal title is not transferred until some later
time); and (vi) an interest held in trust for the mortgagor (whether or not created
by the mortgagor) that would constitute a present ownership interest if held
directly by the mortgagor. The term "Present Ownership Interest" excludes (i) a
remainder interest; (ii) a lease with or without an option to purchase; (iii) a
mere expectancy to inherit an interest in a principal home; (iv) the interest that
a purchase of a home acquires on the execution of a purchase contract; and (v) an
interest in other than a principal home during the previous three (3) years.
Principal Fund means the Fund by that name established by Section 602.
Pr ncipal Installment means, with respect to any particular Principal
Installment Date, an amount equal to the sum of (i) the aggregate principal amount
of Outstanding Bonds payable on such Principal Installment Date (but not including
Outstandirg Term Bonds) and; (ii) the aggregate of Sinking Fund Installments with
respect to all Outstanding Term Bonds payable on such Principal Installment Date,
Principal Installment Date means the date on which Principal Installments
are required to be made pursuant to Section 302.
Principal Office, when used with respect to the Trustee means the principal
or corporate trust or head or principal trust office of such Trustee situated in
the city in which such Trustee is described as being located.
Prior Redemption Fund means the Fund by that name established by Section
602.
_Private Mortgage Insurance means a mortgage guaranty insurance policy
which, upon certification, provides full coverage private mortgage insurance
coverage, such insurance to be issued by a private Mortgage Insurer under a policy
under which the private Mortgage Insurer, upon foreclosure or other recovery
proceedings and conveyance of a marketable title to the mortgaged property, must
pay a claim of not less than the unpaid principal of the Mortgage Loan, accrued
interest and expenses. The private mortgage insurance coverage shall include
12
advance payments, attorneys' fees limit waiver, due - on-sale exclusion waiver and
non - monetary default endorsements
Program means the Agency's Residential Mortgage Financing Program- of
purchasing Mortgage Loans pursuant to this Indenture, the Act, the Tax Act, the
Rules and Regulations and the other Program documents.
Project means Residences located within a subdivision developed or being
developed by a developer which has entered into a Commitment Contract, which
Residences are proposed to be financed directly or indirectly with the proceeds of
the Bonds, namely,
Developer Project Reservation
TO BE PROVIDED
Redemption Price means (i) the principal amount of any Bond redeemed prior
to maturity, together with the accrued interest thereon to the date fixed for
redemption, without premium or (ii) with respect to a Deferred Interest Bond, the
Compounded Amount set forth next to the date fixed for redemption of such Bond in
the Table of Compounded Amounts contained in the form of such Bond, without
premium.
Redevelopme =t Project Area means the Rancho Redevelopment Project Area of
the Agency the redevelopment plan for which was approved by Ordinance No.
_, adopted by the City Council on
Regular Record Date means the 15th day of the month next preceding an
Interest Payment Date.
Requisition means an order directing the Trustee to pay money from one of
the Funds or Accounts established herein, duly executed by an Authorized Officer.
Residence means real property improved with a residential structure and
located in the Project, the Financing of which is or may hereafter be permitted
under the Act and this Indenture. Residence includes single - family attached or
detached residential units, townhouse residential units and condominium
residential units.
Residential Construction means the construction or improving of Residences
meeting requirements of local codes and the land use element and the housing
element of the general plan of the City.
13
Resolution means Resolution No. adopted by the Agency on
, 1983, authorizing, among other things, the issuance of the Bonds
and the execution of this Indenture.
Revenue Fund means the Fund by that name established by Section 602.
Revenues means all payments, proceeds, charges, rents and all interest and
other income derived in cash by the Trustee or a Servicer by or for the account of
the Agency from or related to the Residential Mortgage Financing Program,
including, without limiting the generality of the foregoing, scheduled
amortization payments of principal of and interest on Mortgage Loans, Prepayments,
prepayment penalties and payments in lieu of prepayment penalties, the proceeds of
sale of Mortgage Loans, the proceeds of sale of Residences on foreclosure of or
other recovery proceedings with respect to defaulted Mortgage Loans (net of amounts
required to be paid to mortgagors or other owners of Residences), the proceeds of
resale of foreclosed Residences, the proceeds of Hazard Insurance and Special
Hazard Insurance (net of amounts required to be applied to the restoration of
Residences) and interest earned or income derived from the investment or deposit of
moneys held by the Trustee, but not including Escrow Payments, servicers' and
financing fees, Mortgage Insurance Proceeds and any interest earned which
constitutes Excess Investment Earnings.
Rules and Regulations means the rules and regulations adopted by the Agency
on 1983, by Resolution No. , as now in effect and as may
from time to time hereafter be amended or supplemented.
Semiannual Debt Service Period means the periods from March 1 to August 31
and from September 1 and February 28 (29), respectively.
Serial Bonds means Bonds so designated in this Indenture, maturing serially
on March I and September 1, commencing _ 1, 198 and ending
1, 19 _ , both inclusive.
Servicer means any Lender who shall, by Servicing Agreement with the Agency
and the Trustee, agree to service Mortgage Loans.
Servicing Agreement means a contractual agreement by and among the Agency,
the Trustee and a Servicer for the servicing of Mortgage Loans by the Servicer, in
substantially the form of such Agreements delivered in connection with the issuance
of the Bonds.
Sinking Fund means the Fund by that name established by Section 602.
Sinkin Fg_ and Installment means, with respect to any particular date, the
amount of money required by this Indenture to be paid by the Trustee on behalf of
the Agency on such date toward the retirement of Term Bonds prior to their
respective stated maturities.
Special Hazard Insurance means insurance, commonly referred to as
"Difference in Conditions" insurance, which shall protect from losses on Residences
caused by hazards, such as flood, mudslide and building collapse (but not
14
earthquake), to the extent not covered by Hazard Insurance, and losses resulting
from the application of a coinsurance clause in the Hazard Insurance policies.
State means the State of California.
Supplemental Indenture means an indenture supplemental to or amendatory of
this Indenture duly adopted by the Agency in accordance with Article X.
Tax Act means Section 103A of the Internal Revenue Code of 1954, as amended,
and regulations promulgated thereunder.
Term Bonds means Bonds so designated in this Indenture maturing on
1, 20 , and on 1, 20 ,_
Yield on the Bonds means % per annum.
Trustee means and its successor or
successors and any other bank or trust company or national banking association at
any time substituted in its place pursuant to this Indenture.
Words of the masculine gender include the feminine and neuter genders.
Words importing the singular number include the plural number and vice versa.
Words importing persons shall include corporations and associations, including
public bodies, as well as natural persons.
The terms "hereby ", "hereof ", "hereto ", "herein ", "hereunder ", and any
similar terms, as used in this Indenture, refer to this Indenture (including the
prior written approval of Municipal Bond Insurance Association).
104. Security and Nature of Bonds. The Bonds shall be and are limited
obligations of the Agency and, subject to the right of the Agency to apply moneys as
herein provided, are hereby secured by an irrevocable pledge of the Pledged
Revenues and the Mortgage loans, and Funds and Accounts held by the Trustee and are
payable as to principal, Redemption Price, if any, and interest from the Pledged
Revenues as herein defined. The Bonds are not secured by the taxing power of, and
are not an indebtedness of, or loan of credit of, the Agency, the City, the State of
California or any of its political subdivisions, and neither the Agency, the City,
the State, nor any of its political subdivisions is liable thereon, nor in any
event shall the Bonds be payable out of any funds or properties other than all or
any part of the Pledged Revenues and Funds and Accounts as in this Indenture set
forth. The Bonds do not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction. Neither the members of
the board of supervisors of the Agency nor any official or employee of the Agency
nor any persons executing the Bonds shall be liable personally on the Bonds or
subject to any personal liability or accountability by reason of the issuance
thereof.
The Bonds shall be and are equally secured by an irrevocable pledge of the
Pledged Revenues, the Mortgages and Funds and Accounts as herein provided, without
priority for number, date of sale, date of execution, or date of delivery, except
as expressly provided herein.
is
The validity of the Bonds is not and shall not be dependent upor. the
performance by anyone of his obligation relative to the Residential Mortgage
Financing Program.
16
ARTICLE II
AUTHORIZATION AND ISSUANCE OF BONDS
201. Authorization of Bonds. In order to provide funds for the Financing
of the Projects, bonds of the Agency to be known and designated as "Rancho
Cucamonga Redevelopment Agency, Residential Mortgage Revenue Bonds, 1983 Series A"
are hereby authorized to be issued in the aggregate principal amount of
$39,000,000.
202. Purposes. The purposes for which the Bonds are being issued are (i) to
pay the Costs of Issuance of the Bonds, (ii) to establish reserves for payment of
debt service on the Bonds, and (iii) to provide funds with which to purchase
Mortgage Loans, all to the extent and in the manner provided in Article V of this
Indenture.
203, Date and Maturities. The Issue Date of the Bonds shall be March 1,
1983, except that the Deferred Interest Bonds shall be dated the date the Bonds are
first authenticated and delivered. The Bonds shall mature on the dates and in the
principal amounts, and shall bear interest at the rates, set forth in the following
schedule;
Maturity Interest
Date Amount _Rate
To bo Provided
The Deferred Interest Bonds shall bear interest payable at maturity or upon
the date of earlier redemption in the amounts determined by reference to the
Table of Compounded Amounts set forth in the form of the Deferred Interest
Bond.
The Bonds maturing on 1, 2003, shall be Term Bonds; the Bonds
maturing on 1, 2015, shall be Deferred Interest Term Bonds; all other
Bonds shall be Serial Bonds.
17
204. Interest Payments, The Interest Payment Dates of the Bonds shall be
March 1 and September 1 of each year commencing 1, 198 .
205. Denominations, Numbers and Letters. The Bonds shall be issued as
Fully Registered Bonds without coupons in the denomination of $5,000, or any
integral multiple thereof, but in an amount not to exceed the aggregate principal
amount of Bonds maturing in the year of maturity of the Bond for which the
denomination is specified. Bonds shall be lettered alphabetically by year of
maturity (excluding, however, the letters "I" and "0 ") and each maturity shall be
numbered from (1) consecutively upwards in order of issuance.
" CUSIP" identification numbers shall be imprinted on the Bonds, but such
numbers shall not constitute a part of the contract evidenced by the Bonds and any
error or omission with respect thereto shall not constitute cause for refusal of
any purchaser to accept delivery of and pay for the Bonds. In addition, failure on
the part of the Agency to use such CUSIP numbers in any notice to Holders of the
Bonds shall not constitute an event of default or any violation of the Agency's
contract with such Holders.
206. Place of Payments Record Owner. The principal and Redemption Price
of Fully Registered Bonds shall be payable at the Principal Office of
the Trustee, in the City of Los Angeles, State of
California. Interest on Fully Registered Bonds shall be payable by check mailed to
the registered owner as of the Regular Record Date next preceding the applicable
Interest Payment Date.
207. Conditions Precedent to Delivery of Bonds. Except as provided in
Sections 307, 309, 311, 312, 404 and 1106, the Trustee shall authenticate and
deliver to the purchasers thereof the Bonds authorized to be issued pursuant to
this Indenture, but only upon receipt of the following:
(1) a copy of this Indenture and any Supplemental Indentures each
certified by an Authorized Officer;
(2) a Counsel's Opinion stating, in the opinion of such counsel, (i)
that the Indenture and all Supplemental Indentures authorizing the Bonds have been
duly adopted by the Agency; (ii) that the Indenture is valid and binding upon the
Agency and enforceable in accordance with its terms; (iii) that the Indenture
creates a valid pledge of that which the Indenture purports to pledge, subject to
the provisions of the Indenture, (such opinion may be qualified to the extent that
the enforceability of the Indenture may be limited by bankruptcy, insolvency and
other laws affecting the rights of creditors generally); (iv) that the principal
amount of Bonds which will be Outstanding after delivery will not exceed any limit
imposed by law; and (v) that the Trustee is duly authorized by the Agency to
authenticate and deliver Bonds as identified and described in the Indenture and in
said Counsel's Opinion;
(3) An Officer's Certificate directing the Trustee to authenticate and
deliver Bonds as authorized;
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(4) An Officer's Certificate stating that the Agency is not, at the
time of issuance of Bonds, in default hereunder, directing the Trustee to deliver
the Bonds as authorized; and stating the amounts to be deposited in the various
applicable funds and Accounts; and
(5) An Officer's Certificate indicating that the Agency has made the
election under Section 103A of the Internal Revenue Code of 1954, as amended, to
remit Excess Investment Earnings to the United States of America.
208. Sale of Bonds. In accordance with the provisions of the Resolution,
the Bonds authorized to be issued herein shall be sold to the purchasers on the
terms and conditions set forth in the Bond Purchase Contract and upon the basis of
the representations therein set forth. The President and the Secretary of the
Agency are hereby authorized to execute the Bond Purchase Contract evidencing the
acceptance thereof by the Agency, and to approve and insert into this Indenture and
the Bonds the maturities and interest rates which the Bonds will bear and the price
at which said Bonds shall be sold.
209. Official Statements. In accordance with the provisions of the
Resolution, the President of the of the Agency shall execute the final Official
Statement relating to the Bonds, with such changes, omissions, insertions and
revisions to the Official Statement in preliminary form, dated
1983, as he shall deem advisable and shall sign and deliver the final Official
Statement to the purchasers in the name and on the behalf of the Agency.
The Agency hereby determines that the assumptions, estimates and
expectations of the Agency set forth in the preliminary Official Statement were
accurate as of the date thereof and the assumptions, estimates and expectations of
the Agency set forth in the final Official Statement are accurate as of the date
thereof, and the Agency hereby adopts the preliminary and final Official Statements
as its own statements.
210. Delivery of Bonds. The Bonds shall be delivered to the purchaser
thereof, upon compliance with the provisions of Section 207 of this Indenture, at
such time and place as shall be determined by an Authorized Officer of the Agency,
subject to the provisions of the Bond Purchase Contract.
211. Authority to Consummate Transaction. The Chairman of the of the
Agency, the Secretary of the Agency and other proper officers of the Agency are
hereby authorized and directed to execute and deliver the Mortgage Loan Purchase
Agreements, the Commitment Contracts, the Servicing Agreements, any and all
documents and instruments, to authorize the payment of Costs of Issuance, and to do
and cause to be done any and all acts and things necessary or proper for carrying
out the transactions, including the delivery of the Bonds to the purchasers
thereof, contemplated by this Indenture, and to cause this Indenture and all of the
proceedings relating hereto to conform to such transactions as more particularly
described in said Official Statement.
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ARTICLE III
GENERAL TERMS AND PROVISIONS OF BONDS
301. Date of Bonds. Each Bond shall be initially dated as of its Issue Date
and shall bear interest as provided in Section 304,
302. Principal Installment Dates. The dates when each Principal
Installment with respect to the Bonds is payable shall be each March 1 and
September I after the Issue Date, commencing 1, 198 _.
303. Medium of Payment. The Bonds shall be payable, with respect to
interest, principal and Redemption Price, in lawful money of the United States of
America which at the time of payment is legal tender for the payment of public and
private debts.
304. Form and Date.
(A) The Bonds shall be issued solely in the form of Fully Registered
Bonds without coupons.
B) (1) Each Bond shall, except as otherwise provided in this
subsection, bear interest from March 1, 1983, or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, except that
Deferred Interest Bonds shall bear interest from the date the Bonds are first
authenticated and delivered. Nevertheless, when there is no existing default in
the payment of interest on the Bonds, each Bond authenticated after a Regular
Record Date but before the next Interest Payment Date shall bear interest from such
Interest Payment Date; provided, however, if and to the extent that the County
shall default in the payment of interest due on any Interest Payment Date, then
such Bond shall bear interest from the most recent Interest Payment Date to which
interest has been paid or duly provided for, unless no interest has been paid on the
Bonds, in which case from March 1, 1983.
(2) The person in whose name any Bond is registered at the
Regular Record Date with respect to an Interest Payment Date shall be entitled to
receive the interest payable on such Interest Payment Date (unless such Bond has
been called for redemption on a date prior to such Interest Payment Date)
notwithstanding the cancellation of such Bond upon any registration of transfer or
exchange thereof subsequent to such Regular Record Date and prior to such Interest
Payment Date
(C) Subject to the foregoing subsection (B), each Bond delivered under
this Indenture, upon transfer of or in exchange for or in lieu of any other Bond,
shall carry the rights to interest accrued and unpaid, and to accrue, which were
carried by such other Bond.
305. Legends. The Bonds may contain or have endorsed thereon such
provisions, specifications and descriptive words not inconsistent with the
provisions of this Indenture as may be necessary or desirable to comply with
20
custom, or otherwise, as may be determined by the Agency prior to the delivery
thereof.
306. Execution and Authentication.
(A) The Bonds shall be executed in the name of the Agency by the manual
or facsimile signature of the Chairman and the corporate seal of the Agency (or a
facsimile thereof) shall be thereunto affixed, imprinted, engraved or otherwise
reproduced, and attested by the manual or facsimile signature of the Secretary. In
case any one or more of the officers who shall have signed or sealed any of the
Bonds shall cease to be such officer before the Bonds so signed and sealed shall
have been actually delivered, such Bonds may, nevertheless, be delivered as herein
provided, and may be issued as if the persons who signed or sealed such Bonds had
not ceased to hold such offices. Any Bond may be signed and sealed on behalf of the
Agency by such persons as at the actual time of the execution of such Bond shall be
duly authorized or hold the proper office in the Agency, although at the Issue Date
of the Bonds such persons may not have been so authorized or have held such office.
(B) Only Bonds authenticated by the endorsement thereon of a
certificate substantially in the form hereinafter set forth and executed by an
authorized officer of the Trustee shall be valid and become obligatory for any
purpose under, be secured by, and be entitled to the benefits of, this Indenture;
and every such certificate of the Trustee upon any Bond purporting to be secured
hereby shall be conclusive evidence that the Bond so authenticated has been duly
issued hereunder, and that the Holder is entitled to the benefits of this Indenture
and to the benefit of the pledge and trust hereby created.
307. Interchangeability of Bonds. Fully Registered Bonds, upon surrender
thereof at the Principal Office of the Trustee in Los Angeles, California, with a
written instrument of transfer satisfactory to the Trustee, duly executed by the
registered owner or his attorney duly authorized in writing, may, at the option of
the registered owner thereof, be exchanged for an equal aggregate principal amount
of Fully Registered Bonds of the said maturity and of any other authorized
denominations.
308. Transfer and Registry. All the Bonds issued under this Indenture
shall be subject to the provisions for registration and transfer contained in this
Indenture and in the Bonds. So long as any of the Bonds shall remain Outstanding,
the Trustee shall maintain and keep, at its Principal Office, a Bond Register and,
upon presentation of Bonds for registration or transfer at its Principal Office,
the Trustee shall register or cause to be registered therein, and permit to be
transferred thereon, under such reasonable regulations as the Agency or the Trustee
may prescribe, any Bond entitled to registration or transfer. So long as any of the
Bonds remain Outstanding, the Agency shall make all necessary provisions to permit
the exchange of Bonds at the Principal Office of the Trustee.
309. Transfer of Fully Registered Bonds,
(A) Each Fully Registered Bond shall be transferrable only upon the
Bond Register of the Trustee, which shall be kept for such purpose at the Principal
Office of the Trustee, by the registered owner thereof in person or by his attorney
21
duly authorized in writing, upon surrender thereof together with a written
instrument of transfer satisfactory to the Trustee duly executed by the registered
owner or his duly authorized attorney. Upon the transfer of any such Fully
Registered Bond, the Trustee shall issue in the name of the transferee a new Fully
Registered Bond or Bonds of the same aggregate principal amount and maturity as the
surrendered Bonds.
(B) The Trustee may deem and treat the person in whose name any
outstanding Fully Registered Bond shall be registered upon the Bond Register of the
Trustee as the absolute owner of such Bond, whether such Bond shall be overdue or
not, for the purpose of receiving payment of, or on account of, the principal, or
Redemption Price, if any, of and interest on such Bond and for all other purposes,
and all such payments so made to any such registered owner or upon his order shall
be valid and effectual to satisfy and discharge the liability upon such Bond to the
extent of the sum or sums so paid, and neither the Agency nor the Trustee shall be
affected by any notice to the contrary.
310. Regulations with ResRect to Exchanges and Transfers. in all cases in
which the privilege of exchanging or transferring Fully Registered Bonds is
exercised, the Agency shall execute and the Trustee shall authenticate and deliver
Bonds in acccordance with the provisions of this Indenture. All Fully Registered
Bonds surrendered in any such exchanges or transfers shall forthwith be canceled by
the Trustee and delivered to the Agency. For every such exchange or transfer of
Bonds, whether temporary or definitive, the Agency or the Trustee may impose a
charge sufficient to reimburse it for any tax, fee or other governmental charge
required to be paid with respect to such exchange or transfer (other than such as
may have been imposed by the Agency), which sum or sums shall be paid by the person
requesting such exchange or transfer as a condition precedent to the exercise of
the privilege of making such exchange or transfer. Notwithstanding any other
provision of this Indenture, the cost of preparing each new Fully Registered Bond
upon the first such exchange or transfer, and any other expenses of the Agency or
the Trustee incurred in connection therewith (except any applicable tax, fee or
other governmental charge), shall be paid by the Agency from moneys in the Revenue
Fund. In the case of any proposed redemption of Bonds, the Trustee shall not be
obliged to make any such exchange or transfer of Bonds during the five (5) days next
preceding the date established by the Trustee for selection of Bonds for redemption
or to make any such exchange or transfer after the applicable Bond has been called
for redemption.
311. Bonds Mutilated, Destroyed, Stolen or Lost. In case any Bond shall
become mutilated or be destroyed, stolen or lost, the Agency shall execute and the
Trustee shall authenticate and deliver a new Bond of like maturity and principal
amount as the Bond so mutilated. destroyed, stolen or lost, in exchange and
substitution for such mutilated Bond, upon surrender and cancellation of such
mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or
lost, upon filing with the Agency and the Trustee evidence satisfactory to the
Agency and the Trustee that such Bond has been destroyed, stolen or lost and proof
of ownership thereof, and upon furnishing the Agency and the Trustee with indemnity
satisfactory to both, complying with such other reasonable regulations as the
Agency and the Trustee may prescribe and paying such expenses as the Agency and the
Trustee may incur. All Bonds so surrendered to the Trustee shall be canceled by it.
22
312. L ration of Definitive Bonds; Temporary Bonds. The definitive
Bonds shall be lithographed or printed on steel engraved borders, Until the
definitive Bonds are prepared, the Agency may execute, in the same manner as is
provided in Section 306, and the Trustee may authenticate and deliver, in lieu of
definitive Bonds, but subject to the same provisions, limitations and conditions as
the definitive Bonds, except as to the denominations thereof and as to
exchangeability for Fully Registered Bonds, one or more temporary Bonds (which
shall be registered as to principal and interest), substantially of the tenor of
the definitive Bonds in lieu of which such temporary Bond or Bonds are issued in
denominations of $5,000 or any integral multiple thereof authorized by the Agency,
and with such omissions, insertions and variations as may be appropriate to
temporary Bonds. The Agency at its own expense shall prepare and execute and the
Trustee upon the surrender of such temporary Bonds for exchange and the
cancellation of such surrendered temporary Bonds, without charge to the Holder
thereof, shall authenticate and deliver in exchange therefor, at the Principal
Office of the Trustee, definitive Fully Registered Bonds of the same aggregate
principal amount and maturity as the temporary Bonds surrendered, Until so
exchanged, the temporary Bonds shall in all respects be entitled to the same
benefits and security as definitive Bonds issued pursuant to this Indenture.
1.11 temporary Bonds surrendered in exchange for a definitive Bond or Bonds
shall be forthwith cancelled by the Trustee.
23
ARTICLE IV
REDEMPTION OF BONDS
401. Privilege of Redemption and Redemption Price.
(A) The Bonds are subject to (i) special redemption prior to maturity
pursuant to subsection (8), and (ii) mandatory sinking fund redemption prior to .
maturity pursuant to subsection (C).
(B) The Bonds are subject to special redemption in whole at any time
or in part on any Interest Payment Date commencing September 1, 1983, from funds in
the Prior Redemption Fund, as described in Section 608, at a Redemption Price equal
to the principal amount of Bonds to be so redeemed, plus accrued interest to the
redemption date, witnout premium.
In the event the Bonds are to be redeemed in part, from moneys
transferred pursuant to Section 511 from the Mortgage Loan Purchase Account or
pursuant to Section 604 from the Revenue Fund to the Prior Redemption Fund, the
Bonds to be redeemed shall be selected and redeemed on a reasonably proportionate
basis from among all the Principal Installments pertaining to the Bonds, including
for such purpose the aggregate Compounded Amount then applicable to the Outstanding
Deferred Interest Bonds, such basis to be determined and effectuated as nearly as
practicable by the Trustee by selecting from, each such Principal Installment and
from the aggregate Compounded Amount then applicable to Outstanding Deferred
Interest Bonds an amount equal to the result obtained by multiplying the total
amount of moneys to be available to redeem said Bonds on the Redemption Date by the
ratio which the principal amount of each such Principal Installment and the
aggregate Compounded Amount then applicable to Outstanding Deferred Interest Bonds
bears to the total principal amount of all Outstanding Bonds, including for such
purpose the aggregate Compounded Amount then applicable to the Outstanding Deferred
Interest Bonds; provided that Bonds shall be redeemed only in multiples of Five
Thousand Dollars ($5,000). Any amount in excess of the Five Thousand Dollars
(s5,000) multiple remaining after such selection shall be retained in the Prior
Redemption Fund.
If Deferred Interest Bonds are redeemed in whole, the Compounded Amount
shall be determined by adding to the Compounded Amount at the prior Interest
Payment Date interest at the rate of _ —% on such Compounded Amount.
(C) The Term Bonds maturing on _ 1, 20 , shall be subject
to redemption in part by lot by operation of Sinking Fund Installments as provided
in Section 607, upon notice as herein provided, on 1, 199 and on each
1 and 1 thereafter to and including 1, 20 all
as herein provided, and in each case at the Redemption price equal to the principal
amount of each Bond or portion thereof to be redeemed, together with accrued
interest to the date of redemption, without premium. Unless none of such Term
Bonds shall then be Outstanding, the Agency shall be required to pay on _ 1
and 1 of each year set forth in the following table, for the retirement
of such Term Bonds, the amount set opposite such year of said table, and the said
24
amount so to be paid on each such date is hereby established as and shall constitute
a Sinking Fund Installment for retirement of such Term Bonds.
The table with respect to the Term Bonds maturing on 1, 20 is
as follows:
Year Amount
[TO BE PROVIDED]
(D) The Deferred Interest Bonds maturing on 1, 20
shall be subject to redemption in part by lot by operation of Sinking Fund
Installments as provided in Section 607, upon notice as herein provided, on
1, 20 and on each 1 and 1 thereafter to and
including _ 1, 20 , all as herein provided, and in each case at the
Redemption Price equal to the Compounded Amount as of such date of each Bond or
portion thereof to be redeemed, as set forth in the Table of Compounded Amounts in
the form of the Deferred Interest Bond, without premium. Unless none of such Term
Bonds shall then be Outstanding, the Agency shall be required to pay on 1
and I of each year set forth in the following table, for the retirement
of such Term Bonds, the principal amount set opposite such year of said table, and
the said amount so to be paid on each such date is hereby established as and shall
constitute a Sinking Fund Installment for retirement of such Term Bonds.
The table with respect to the Compound Interest Bonds maturing on
_ 1, 20 _, is as follows:
25
Year Amount
[TO BE PROVIDED]
402. Selection of Bonds to be Redeemed by Lot. In the event of redemption
by lot of Bonds of like maturity, the Trustee shall assign to each Fully Registered
Bond of such maturity then Outstanding a distinctive number for each 55,000 of the
principal amount of such Bond and shall select by lot, using such method of
selection as it shall deem proper in its discretion and the numbers so assigned to
such Fully Registered Bonds, as many numbers as, at 55,000 for each number, shall
equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed
shall be the Fully Registered Bonds to which were assigned numbers so selected, but
only so much of the principal amount of each such Fully Registered Bond of a
denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each
number assigned to it and so selected. For the purposes of this Section, Bonds
which have theretofore been selected by lot for redemption shall not be deemed
Outstanding,
403. Notice of Redemption. When the Trustee shall be required or
authorized, or shall receive notice from the Agency of its election, to redeem
Bonds, the Trustee shall in accordance with the terms and provisions of the Bonds
and of this Indenture select the Bonds to be redeemed and shall give notice, in the
name of the Aaency, of the redemption of Bonds, which notice shall specify the
maturities of the Bonds to be redeemed, the redemption date and the place or places
where amounts due upon such redemption will be payable and, if less than all of the
Bonds of any like maturity are to be redeemed, the letters and numbers or other
distinquishing marks of such Bonds so to be redeemed, and, in the case of a Fully
Registered Bond to be redeemed in part only, such notice shall also specify the
portion of the principal amount thereof to be redeemed. Such notice shall further
state that on such date there shall become due and payable upon each Bond to be
redeemed the Rede; )cion price thereof, or the Redemption Price of the specified
portion of the principal thereof in the case of a Fully Registered Bond to be
redeemed in part only, together with interest accrued to such date, and that from
and after such date interest thereon shall cease to accrue and be payable. Such
notice shall be given by the Trustee by mailing a copy of such notice, postage
prepaid, not less than ten (10) days nor more than sixty (60) days prior to such
26
redemption date, to the registered owner of any Bond, all or a portion of which is
to be redeemed, at his last address appearing upon the registry books.
404. Payment of Redeemed Bonds. Notice having been given by mailing in..the
mminer pruv Ned in iuetion 403, the Bonds or portions thereof called for redemption
and specified in said notice shall become due and payable on the redemption date
specified in said notice at the Redemption Prices thereof applicable on such date,
plus unpaid interest on said Bonds or portions thereof accrued to such date, and,
upon presentation and surrender thereof at the place or places specified in said
notice together with a written instrument of transfer duly executed by the
registered owner thereof or by his attorney duly authorized in writing, said Bonds
or portions thereof shall be paid at the said Redemption Prices, plus unpaid
interest on said Bonds or portions thereof accrued to such date.
If there shall be so called for redemption less than all of a Fully
Registered Bond, the Agency shall execute and the Trustee shall authenticate and
deliver, upon the surrender of such Bond to the Trustee, without charge to the
owner thereof, for the unredeemed balance of the principal amount of the Fully
Registered Bond so surrendered, registered Bonds of like interest rate and maturity
in any of the authorized denominations, if, on such redemption date, moneys for
the redemption of all the Bonds or portions thereof of any like maturity to be
redeemed, together with interest thereon accrued and unpaid to such date, shall be
held by or on behalf of the Trustee so as to be available therefor on such date and
if notice of redemption thereof shall have been mailed as aforesaid, then from and
after such redemption date, interest on the Bonds or portions thereof of such
maturity so called for redemption shall cease to accrue and become payable and said
Bonds shall no longer be considered as Outstanding hereunder.
All moneys held by or on behalf of the Trustee for the redemption of
particular Bonds shall be held in trust for the account of the Holders of the Bonds
so to be redeemed.
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ARTICLE V
ESTABLISHMENT OF CAPITAL FUNDS AND ACCOUNTS AND
APPLICATION OF BOND PROCEEDS AND OTHER MONEYS
501. Establishment of Bond Proceeds Fund.
(A) The Agency hereby establishes the Bond Proceeds Fund which shall
be a special Fund held by the Trustee. Within the Bond Proceeds Fund the Agency
hereby establishes the following Accounts in the manner hereinafter provided:
(1) Issuance Expense Account;
(2) Mortgage Loan Purchase Account,
(B) Amounts in the Bond Proceeds Fund shall be applied in the manner
set forth in this Indenture.
502. A Dlication of Proceeds. From the proceeds of the Bonds there shall
be paid to the Trustee for deposit as follows:
(A) Into the Interest Fund, the amount of interest accrued, if any,
from _ 1, 1983, to the date of delivery of the Bonds.
(B) Into the Debt Service Reserve Fund, an amount equal to $
(C) Into the Issuance Expense Account the amount specified in an
Officer's Certificate delivered to the Trustee concurrently with the delivery of
the Bonds to the purchasers thereof.
(E) Into the Mortgage Loan Purchase Account, the balance of such
proceeds as specified in an Officer's Certificate delivered to the Trustee
concurrently with the delivery of the Bonds to the purchasers thereof.
503, Additional Deoosit Into Mortgage Loan Purchase Account Letter of
Credit, Concurrently with the delivery of the Bonds to the purchasers thereof, the
Agency shall cause the developers of the respective Projects to pay to the Trustee
participation fees aggregating $ ___ , which sum the Trustee shall deposit in
delivered Mortgage t the Trustee haLet Letter ofnCredit [insert, addition f app Agency ablel has
in the amount of
$ issued by First In Bank on behalf of Sheiter Systems Inc., a
developer of one of the Projects, which Letter of Credit secures payment by such
developer of the unpaid portion of such developer's participation fees in the
amount of $ The Trustee shall receive from such developer concurrently
with the purchase by the Trustee of a Mortgage Loan originated with respect to the
Project of such developer an amount equal to % of the principal amount of
sucr, Mortgage Loan as the additional participation fee payable by such developer
with respect to such Mortgage Loan. The Trustee shall deposit such additional
participation fee in the Mortgage Loan Purchase Account. If, and to the extent
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such developer shall fail to pay the total participation fee payable in accordance
with the provisions of the Commitment Contract between the Agency and such
developer, then the Trustee shall exercise its rights on behalf of the Agency to
obtain such participation fee in accordance with such Commitment Contract and-the
Letter of Credit.
504. Application of Issuance Expense Account.
(A) The Trustee shall apply the moneys in the Issuance Expense Account
to the payment of Costs of Issuance, including those costs described in the Bond
Purchase Contract, Such Costs of Issuance shall be paid by the Trustee upon
receipt by the Trustee of Requisitions identifying (i) the amount to be paid, (ii)
the payee, (iii) the service rendered or other basis for the obligation to pay, and
(iv) the date on which payment is to be made.
(B) Any moneys remaining in the Issuance Expense Account after payment
in full of all Costs of issuance shall be transferred into the Mortgage Loan
Purchase Account, upon receipt by the Trustee of an Officer's Certificate directing
such transfer.
505. Application of Mortgage Loan Purchase Account; In General.
(A) Except as otherwise provided in this Indenture for transfer of
moneys in the Mortgage Loan Purchase Account to the Principal Fund and the Sinking
Fund, the Trustee shall apply moneys in the Mortgage Loan Purchase Account to the
purchase of Mortgage Loans but only if and to the extent that there has been
compliance with this Section 505 and with Sections 506 through 510, inclusive.
(B) In addition, with respect to $ principal amount of
Mortgage Loans, the Trustee shall only purchase Mortgage Loans which have been made
to Income Qualified Persons and Families.
506. Documents Pertaining to Compliance with the Act. Prior to application
of moneys in the Mortgage Loan Purchase Account to the purchase of any Mortgage
Loan, the Trustee shall have received an affidavit executed under penalty of
perjury by the mortgagor, together with a Statement of Representation and Warranty
executed by an authorized representative of the lender from whom the Trustee is
purchasing the Mortgage Loan, each stating, among other things, that the Mortgagor,
if required by Section 5D5(B), constitutes an "Income Qualified Person or Family ".
507. Documents Pertaining Principally to Compliance with Other Applicable
State Laws, The Trustee shall receive:
(A) A final subdivision report applicable to the Residence issued by
the Department of Real Estate of the State of California; and
(B) A certificate of occupancy or its equivalent issued by the City to
the effect that the Residence, or, if applicable, the building within which such
Residence is located, has been finally inspected by the City and is released for
occupancy.
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508. Documents Pertaining to Compliance with Tax Act. The Trustee shall
receive with respect to each Mortgage Loan and to the Residence securing repayment
of such Mortgage Loan:
(A) An affidavit, in the form attached to the Mortgage Loan Purchase
Agreement as part of Exhibit B, and hereby made a part hereof, executed by the
Mortgagor under penalty of perjury and following oath or affirmation before a
notary public.
(B) An affidavit in the form attached to the Mortgage Loan Purchase
Agreement as part of Exhibit B, and hereby made a part hereof, executed by the
developer or other seller of the Residence under penalty of perjury and following
oath or affirmation before a notary public.
(C) An Officer's Certificate executed on a date prior to the date of
purchase of the Mortgage Loan by the Agency stating:
(1) that he or she has read the affidavits referenced in paragraphs
(A) and (B) above and such affidavits are in form and substance required by the
provisions of the Mortgage Loan Purchase Agreement;
(2) that he or she is informed that the applicable Lender has
conducted an investigation, as agent for the Agency, regarding the truth of the
facts set forth in said affidavits;
(3) that no facts have come to the attention of the Authorized Officer
executing the Officer's Certificate which would cause him to disbelieve or doubt
the truth of the affidavit or of any portion thereof; and
(0) A Statement of Representation and Warranty executed by an authorized
representative of the Lender from whom the Trustee is purchasing the Mortgage Loan
stating, among other things:
(1) that he has read the affidavits referenced in paragraphs (A) and
(B) above and such affidavits are in form and substance required by the provisions
of the Mortgage Loan Purchase Agreement;
(2) that he has conducted or has caused to be conducted an
investigation regarding the truth of the facts set forth in said affidavits, which
Investigation complies with the requirements of the Mortgage Loan Purchase
Agreement to which said Lender is a party and which investigation included, if the
Mortgage is not being purchased with the final 100 of a Reservation under the
applicable Commitment Contract, an examination of copies of income tax returns
which were filed with the Internal Revenue Service and were provided by the
Mortgagor and which returns indicated that during the preceding three years, the
Mortgagor did not claim deductions for taxes or interest on indebtedness with
respect to real property constituting the principal residence of the Mortgagor or
which investigation otherwise complied with Revenue Procedure 82 -16 as required by
the Mortgage Loan Purchase Agreement;
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(3) that no facts have come to the attention of said authorized
representative as a result of said investigation or otherwise which would cause him
to disbelieve or doubt the truth of the affidavits or of any portion thereof.
(E) A certificate of compliance relating to the applicable Mortgage Loan
provided in accordance with the Compliance Agreement.
509. Documents Pertaining to Assurance of Adequacy of Secures. The
Trustee shall receive with respect to each Mortgage Loan and to the Residence
securing repayment of the Mortgage Loan:
(A) The original promissory note evidencing the Mortgage Loan duly
executed by the mortgagor and endorsed by the Lender to the Trustee, on behalf of
the Agency and providing, in addition to customary matters, for a final maturity
date of thirty (30) years, for a stated interest rate provided for in the Mortgage
Loan Purchase Agreement and that the full principal amount of said promissory note
shall become immediately due and payable (together with accrued interest) in the
event that:
thereof; or (1) the Mortgage Loan is assumed in violation of the provisions
(2) the Agency finds that the affidavits executed in compliance
with Sections 506 or 50B(A) by the mortgagor at the time of execution of the
Mortgage contained any materially incorrect statement of fact (which affidavits
shall be incorporated by reference in the promissory note);
All such immediate payment in full shall be provided for by the provisions of
riders which the Trustee shall require to be attached to the applicable promissory
note and Mortgage,
(B) The deed of trust securing the Mortgage Loan fully executed in
recordable form by the mortgagor together with an assignment of said deed of trust
fully executed in recordable form by the Lender to the Trustee, on behalf of the
Agency, such deed of trust and assignment to be either (i) duly recorded in the
office of the appropriate County Recorder as evidenced by a document stamp of
record or by a certification of the appropriate escrow company or title insurance
company, or (ii) so executed in recordable form, accompanied by irrevocable
instructions of the Lender, the mortgagor and the developer of the applicable
project or other seller authorizing the appropriate escrow company or title
insurance company so to record such assignment upon closing of the escrow and
disbursement of funds.
(C) A current American Land Title Association Mortgagee title
insurance policy containing unmodified Endorsements 100 and 116 (with respect to
single - family attached and detached units) or 116.1 (with respect to condominium
units), duly assigned to the Trustee by the terms of such policy or by endorsement
of the title insurance company issuing such policy or by the irrevocable agreement
of the title insurance company to endorse such assignment for the benefit of the
Trustee, on behalf of the Agency, insuring title to the Residence as being vested
in the mortgagor and insuring that the lien of the deed of trust is subject only to
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Permitted Encumbrances and issued in not less than the face amount of the Mortgage
Loan by a title insurance company qualified to do business in the State of
California, or, in lieu of the foregoing described policy of Mortgagee title
insurance, a preliminary title report and irrevocable instructions to the escrow
company to only close the Mortgage Loan with the mortgagor when such title company
is able to and will issue the foregoing described policy of Mortgagee title
insurance, duly assigned by the terms of such policy or by endorsement of the title
insurance company; the Lender shall instruct the escrow company to cause the
original Mortgagee title insurance policy to be delivered, when available, to the
Trustee.
(0) A copy of a Hazard Insurance policy including earthquake
coverage, or appropriate certificates or binders. The Hazard Insurance shall be
Dwelling Building Special Form all risk and shall be carried by the owner in the
case of a Residence other than a condominium unit, and, in the case of condominium
units, by the association of owners of the condominium project. Such Hazard
Insurance shall insure each Residence or, if applicable, each condominium project
in an amount at equal to the greater of the unpaid principal balance of the Mortgage
Loan, or ninety percent (90"0) of the insurable value based upon true replacement
cost of the Residence or condominium project, with an inflation coverage
endorsement, and, if the Residence is located in a designated flood area, flood
insurance coverage in the amount of the required Hazard Insurance. Earthquake
coverage shall be obtained by the owner of each Residence, and thereafter
maintained if commercially available, and shall be in an amount at least equal to
the unpaid principal balance of the Mortgage Loan with a deductible clause of not
to exceed five percent (5A) per occurrence.
(E) A Certificate duly executed by the insurer or other appropriate
documentation evidenc'ng that the Residence securing the Mortgage Loan is insured
under the coverage provided by the Special Hazard Insurance Policy maintained by
the Trustee on behalf of the Agency.
(F) A Mortgage Insurance Certificate in full force and effect duly
endorsed under a policy of Private Mortgage Insurance, issued by a Private Mortgage
Insurer, providing that the Mortgage Loan is insured thereunder or, in lieu
thereof, a firm commitment from the Mortgage Insurer that the Mortgage Loan will be
so insured. The Lender shall deliver the original Certificate to the Trustee
immediately upon its becoming available.
(G) Appropriate closing instructions.
510. Procedure for Disbursement.
(A) Following receipt of the documents referenced in Sections 506
through 509, inclusive, the Trustee shall review such documents and verify that
such documents conform on their face to the requirements set forth in said
Sections, and upon being satisfied of said fact, shall apply moneys in the Mortgage
Loan Purchase Account to the purchase of Mortgage Loans by payment and disbursement
of such moneys to the title company designated by the Lender, all as set forth in
paragraph 4 of Exhibit A to the Mortgage Loan Purchase Agreement, provided that the
Trustee may, pending receipt of such documents, so apply such moneys upon:
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(1) Receipt from the Lender of:
(a) a representation and warranty of the Lender;
(i) that the documents referenced in said Sections
504 through 507 and submitted to the Trustee comply with the requirements of said
Sections and with the further requirements of the Mortgage Loan Purchase Agreement;
(ii) that, except as referenced in subparagraph (iii)
below, if any document required by said Sections 506 throuah 509 or by the Mortgage
Loan Purchase Agreement is defective in any material respect, the Lender shall cure
the defect within a period of sixty (60) days from the time the Trustee notifies the
Lender of the existence of the defect and if such material defect cannot be curad
within such sixty (60) day period, the Lender will, not later than ninety (90) days
after the Trustee's notice to it respecting such defect, repurchase such Mortgage
Loan from the Trustee at a price equal to one hundred percent (1000") of the
remaining principal amount of such Mortgage Loan plus accrued and unpaid interest
thereon to the date of repurchase; and
(iii) that in the event that the Lender discovers, or
is notified by the Agency or the Trustee that either all or any portion of the
affidavits executed pursuant to Sections 506 or 508(A) by the Mortgagor contained
any materially incorrect statement of fact, or the Mortgage Loan is assumed in
violation of the provisions of the Mortgage Loan, the Lender shall provide notice
of default to the mortgagor, declare the entire unpaid balance of the Mortgage Loan
due and payable within ten (10) days of said notice (or such period as required by
law) and pursue foreclosure remedies on behalf of the Agency if the mortgagor does
not pay in full the remaining balance of the Mortgage Loan, together with accrued
interest, within the aforesaid ten (10) day period (or such period as required by
law).
(b) a written statement stating that the sales escrow for
the Residence securing the repayment of the Mortgage Loan is ready to close and
instructing the Trustee to deliver funds to a designated title company for purchase
of the Mortgage Loan upon receipt of the documents referenced in paragraphs (2) and
(3) below;
(2) Receipt from the Agency, a Requisition identifying (a) the
Mortgagor and the Residence securing repayment of the Mortgage Loan, (b) the amount
of the Mortgage Loan, (c) the title company to whom payment is to be made for the
purchase of the Mortgage Loan pursuant to a Mortgage Loan Purchase Agreement, and
(d) the estimated date on which payment is to be made to said title company, which
Requisition shall constitute the commitment of the Agency to provide financing to
said mortgagor; and
(3) Receipt from the escrow company handling the sales escrow for
the Residence securing repayment of the Mortgage Loan, a request for funds
representing payment for the Mortgage Loan.
(8) Any interest accrued on a Mortgage Loan paid by the Trustee at the
time of purchase of such Mortgage Loan shall be paid by the Trustee from the Revenue
33
Fund or, if moneys therefore are not then available, then from moneys advanced from
the Mortgage Loan Purchase Account.
(C) Following disbursement of moneys in the Mortgage Loan Purchase
Account for the purchase of a Mortgage Loan, the Trustee shall give notice of such
purchase to the applicable Mortgage Insurer and to such others as may be entitled
to such notice by law or by the terms of the Mortgage Loan.
(0) All actions of the Trustee in purchasing of a Mortgage Loan under
this Section shall be accomplished by the Trustee in its capacity as Trustee acting
on behalf of the Agency and the Bondholders under the Indenture.
(E) Notwithstanding any other provision of this Section 510, the
Trustee may, together with the Agency and the Lender, develop such other or further
procedures for disbursement as shall assure the establishment of simultaneous
escrows with respect to the sale of a Residence to the mortgagor and the purchase of
the Mortgage Loan pertaining to such Residence by the Trustee.
511. Closing of Mortgage Loan Purchase Account. On 1, 198
the Trustee shall deposit moneys, if any, remaining in the Mortgage Loan Purchase
Account to the Prior Redemption Fund and apply such moneys to the redemption of
Bonds as provided in Article IV.
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ARTICLE VI
ESTABLISHMENT OF FUNDS AND
APPLICATION OF REVENUES AND OTHER MONEYS
601. Pledge of Pledged Revenues, Mortgage Insurance Proceeds, and Funds and
Accounts; Nature of Obligation.
(A) Subject only to the prior lien of the Trustee established by
Section 806 and subject to the rights of the Agency to apply moneys in accordance
with the provisions of this Indenture, all of the Pledged Revenues and all Funds
and Accounts held by the Trustee under the provisions of this Indenture, excluding
Excess Investment Earnings, are hereby pledged to secure the payment of the
principal or oedemption Price of and interest on the Bonds. This pledge hereby
made shall be valid and binding from and after the time of the delivery by the
Agency of the first Bond delivered under this Indenture. The Revenues, Funds and
Accounts and rights so pledged and then or thereafter received by the Trustee shall
immediately be subject to the lien of such pledge without any physical delivery or
further act, and the lien of such pledge and the obligation to perform the
contractual provisions hereby made shall have the priority over any or all other
obligations and liabilities of the Agency, and the lien of such pledge shall be
valid and binding as against all parties having claims of any kind in tort,
contract or otherwise against the Agency irrespective of whether such parties have
notice thereof.
IB) The Bonds shall not be deemed to constitute a debt or liability of
the Agency, the City or the State of California nor a pledge of the faith and credit
of the Agency, the City or the State of California but shall be limited obligations
of the Agency payable solely from the Revenue Fund and the other Funds, Accounts
and the other property herein pledged and provided. The issuance of Bonds under
this Indenture shall not directly, indirectly, or contingently obligate the Agency
to pledge any form of taxation whatever therefor or to make any appropriation for
their payment.
(C) Nothing in this Section shall be construed to prevent the Agency
from applying moneys in the various Funds and Accounts in the manner provided in
this Indenture.
602. Establishment of Funds and Accounts.
(A) The Agency hereby establishes the following Funds and Accounts
which shall be held by the Trustee:
(1) Revenue Fund and, within such Fund, an Estimated Excess
Investment Earnings Account,
(2) Operating Fund,
(3) Interest Fund,
35
(4) Principal Fund,
(5) Sinking Fund,
(6) Debt Service Reserve Fund,
(7) Prior Redemption Fund, and
(8) Excess Investment Fund
603. Deposit of Pledged Revenues and Escrow Payments.
(A) All Pledged Revenues collected by the Agency or by any of its
Servicers pursuant to a Servicing Agreement shall be deposited with the Trustee as
further provided in Section 911(K). Unless otherwise provided in this Indenture,
all deposits of Pledged Revenues shall be credited to the Revenue Fund.
(B) All Escrow Payments shall be paid to the Servicer for deposit in
the appropriate impound account for application in accordance with the Servicing
Agreement.
(C) In the event that the Trustee receives a single payment which it
knows to combine Revenues and Escrow Payments, the Trustee shall transmit that
portion of the payment representing an Escrow Payment to the Servicer for deposit
in the appropriate impound account.
604. Administration of the Revenue Fund. The Revenue Fund shall be
administered and transfers and disbursements made therefrom on and
, for application with respect to the then current Semiannual Debt
Service Period in the manner, in the order and with the priority progressively set
forth in subsections (A) to (G), inclusive, of this Section (except that interest
accrued on a Mortgage Loan at the time of purchase shall be paid or, if applicable,
reimbursed from the Revenue Fund as provided in Section 510(8).
(A) The Trustee shall deposit in the Estimated Excess Investment
Earnings Account an amount, if any, determined in accordance with the further
provisions of Section 704.
(B) The Trustee shall transfer, when available and to the extent
necessary from the Revenue Fund to the Operating Fund, moneys in an amount equal to
Po of the principal balance of Mortgage Loans on the last day of the prior
Bond Year for the purposes for which amounts in the Operating Fund may be applied in
accordance with Section 605. Any balance remaining in the Operating Fund on
November 30 of any year shall be transferred to the Revenue Fund.
(C) On the or next preceeding an Interest
Payment Date, commencing 1, 198 , the Trustee shall transfer the
Interest Installment due on such date from the Revenue Fund to the Interest Fund.
(D) After making the foregoing transfers, if moneys have been
withdrawn from the Mortgage Loan Purchase Account pursuant to Section 609(8) the
amount withdrawn shall be restored from available funds in the Revenue Fund.
36
(E) On the 15 or 15 next preceeding a
Principal Installment Date, commencing 1, 198 the Trustee shall
transfer the Principal Installment due on such date the Revenue Fund to the
Principal Fund or, if applicable, to the Sinking Fund.
(F) After making the foregoing transfers, if the balance in the Debt
Service Reserve Fund is less than the Debt Service Reserve Requirement, the
deficiency shall be restored from available funds in the Revenue Fund.
(G) Any surpluses remaining in the Revenue Fund on any I or
1 after making the transfers provided for in the preceding subsections
shall be immediately transferred to the Prior Redemption Fund,
605. Application of 0 era Ling Fund. Except as otherwise provided in this
Section, all amounts in the Operating Fund shall be first applied to the payment of
Trustee expenses and Special Hazard Insurance premiums and then to administrative
expenses of the Agency upon receipt by the Trustee of a Requisition or Officer's
Certificate directing such payment.
606. Application of Interest and Principal funds.
(A) The Trustee shall withdraw from the Interest Fund, prior to each
Interest Payment Date of the Bonds, an amount equal to the Interest Installment
payable on such Interest Payment Date, and shall cause the same to be applied to the
payment of said interest when due.
(B) The Trustee shall withdraw from the Principal Fund, prior to each
Principal Installment Date, an amount equal to the Principal Installment payable on
said Principal Installment Date and shall cause the same to be applied to the
payment of the principal of said Bonds when due.
(C) All transfers and withdrawals under the provisions of subsection
(A) or subsection (B) of this Section shall be made not earlier than one (1) day
prior to the Interest Payment Date or Principal Installment Date to which they
relate, and the amount so transferred or withdrawn shall, for the purposes of this
Indenture, be deemed to remain in and be part of the appropriate Fund until such
Interest Payment Date or Principal Installment Date.
607. Application of Sinking Fund
(A) The Trustee shall apply moneys in the Sinking Fund to the purchase
or the redemption of Term Bonds for which the applicable Sinking Fund Installment
has been established in the manner provided in this Section and to the payment of
the principal thereof at maturity, provided that no such Bonds shall be so
purchased during the period of thirty (30) days next preceding the date of a
Sinking Fund Installment established for such Bonds. The purchase price paid by
the Trustee (excluding accrued interest (which shall be paid from the Interest
Fund) but including any brokerage and other charges) for any Bond purchased
pursuant to this Section shall not exceed the Redemption Price of such Bond
applicable upon its redemption by operation of the Sinking Fund through application
of the moneys available for such purchase on the next date of a Sinking Fund
37
Installment established for such Bonds. Subject to the limitations hereinbefore
set forth or referred to in this Section, the Trustee shall purchase Bonds at such
times, for such prices, in such amounts and in such manner (whether after
advertisement for tenders or otherwise) as the Trustee in its discretion may
determine and as may be possible wih the amount of moneys available therefor in the
Sinking Fund. If on any date there shall be moneys in any such Sinking Fund and
there shall be no Outstanding Term Bonds, then such Sinking Fund shall be closed
and the Trustee shall transfer any moneys therein to the Revenue Fund.
(B) As soon as practicable after the sixtieth (60th) and before the
tenth (10th) day prior to the Principal Installment Date of each Sinking Fund
Installment, the Trustee shall call for redemption in the manner provided in
Article IV on the said Principal Installment Date of said Sinking Fund Installment
and by application of said Sinking Fund Installment such principal amount of the
Bonds entitled to said Sinking Fund Installment less such amounts of Bonds
purchased during the twelve (12) months prior to such Principal Installment Date
pursuant to subsection (A) of this Section, and on such redemption date the Trustee
shall apply the moneys in such Sinking Fund to the Payment of the Redemption Price
of the Bonds so called for redemption.
(C) Surplus, if any, remaining in the Sinking Fund following the date
of a Sinking Fund Installment shall be transferred to the Revenue Fund.
608. Application of Prior Redemption Fund.
(A) Moneys shall be deposited in the Prior Redemption Fund pursuant to
Sections 511 and 604(G).
(B) Moneys deposited into the Prior Redemption Fund shall first be
applied by the Trustee to make up any deficiency in the following Funds in the
following order of priority, provided that the Trustee shall not have theretofore
given notice of redemption of Bonds to which such moneys are to be applied:
FIRST: Interest Fund;
SECOND: Principal Fund;
THIRD: Sinking Fund; and
FOURTH: Debt Service Reserve Fund.
(C) Moneys deposited in the Prior Redemption Fund in excess of the
amounts required to make up the deficiencies in the Funds described in subsection
(B) above shall be used for special redemption of the Bonds in the manner provided
in Section 401(6) on the next practicable Interest Payment Date.
609. Deficiencies in Interest, Principal and Sinking Funds.
(A) In the event that on the day prior to any Interest Payment Date the
amount in the Interest Fund, after transfer to the Interest Fund of any available
funds in the Prior Redemption Fund, is insufficient to pay the interest due on the
38
Bonds on said Interest Payment Date, the Trustee shall withdraw from the Debt
Service Reserve Fund and deposit in the Interest Fund the amount of such
deficiency. In the event that there remains a deficiency in the Interest Fund
after withdrawing moneys from the Debt Service Reserve Fund, the Trustee shall
withdraw moneys from the following funds in the following order of priority in the
amount of such deficiency and transfer the same to the Interest Fund:
(1) the Principal Fund, and
(2) the Sinking Fund.
(B) In the event that on the day prior to the next succeeding
Principal Installment Date the amount in the Principal Fund or the Sinking Fund,
after transfer to the Principal Fund of any available funds in the Prior Redemption
Fund, is insufficient to pay the Principal Installment due on the Bonds to be paid
from such Fund on the next succeeding Principal Installment Date, the Trustee shall
forthwith withdraw from the following Funds in the following order of priority the
amount of such deficiency and transfer the same to the Principal Fund or Sinking
Fund, as the case may be:
(1) the Debt Service Reserve Fund, and
(2) the Mortgage Loan Purchase Account.
The amounts so withdrawn from the Mortgage Loan Purchase Account or the
Debt Service Reserve Fund shall be restored from available funds in the Revenue
Fund as provided in Section 604(E) and 604 (F), respectively.
610. Application of Debt Service Reserve Fund.
(A) If at any time there shall not be a sufficient amount in the
Interest Fund, Principal Fund or Sinking Fund to make payment of Principal
Installments of or interest on the Bonds, the Trustee shall withdraw from the Debt
Service Reserve Fund and pay into the appropriate Fund the amount of the deficiency
then remaining, as provided in Section 609.
(B) Any amount in the Debt Service Reserve Fund in excess of the Debt
Service Reserve Requirement shall, commencing 1, 1985, be transferred
to the Revenue Fund on each Interest Payment Date.
611. Application of Escrow Payments. Escrow Payments received by any
Servicer, whether separately or as a known part of some other payment, shall be
deposited in the applicable Escrow Payment account and shall be timely applied by
the Servicer to the purpose for which such payments were received, and any such
payments received by the Trustee, whether separately or as part of some other
payment, shall be paid by the Trustee to the Servicer, as provided in Section
603(C), and applied by the Servicer in the manner set forth above.
612. Call of All Outstanding Bonds. In the event that on or after
1, 198 . the amount in the Funds and Accounts created by this
Indenture and pledged to the payment of Bonds is sufficient to provide for the
39
special redemption of all Bonds Outstanding, the Trustee shall withdraw from such
Funds and Accounts an amount equal to the principal of all Bonds Outstanding and
deposit the same in the Prior Redemption Fund to be used for special redemption of
the Bonds pursuant to Section 401(8).
613. No Unauthorized Transfers. No amount shall be withdrawn or
transferred from or paid out of any Fund or Account except as in this indenture
expressly provided. In making any withdrawal or transfer from any Fund or Account,
the Trustee shall be entitled reasonably to rely on Requisitions, Officer's
Certificates, and otFnr cortificates delivered to Lhe Trustee by, or on behalf of,
the Agency which are in proper form.
614. Quarterly Reports. The Trustee, commencing with the period ending
June 30, 1983, shall within 30 days of the end of the applicable quarter, provide
the Agency with quarterly reports covering all receipts paid into and all
disbursements made from each Fund and Account held by the Trustee pursuant to the
provisions of this Article. Such reports shall be mailed by the Trustee to the
Agency.
40
ARTICLE VII
SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS
701. Security for Deposits. All moneys held hereunder by the Trustee shall
be continuously and fully secured by securities eligible by law to be held as
security for trust funds of a market value at least equal to the amount required by
law; provided, however, that it shall not be necessary for the Trustee to give
security for any moneys which shall be represented by obligations purchased under
the provisions of this Indenture as a Permitted Investment of such moneys, unless
such security is specifically required with respect to a Permitted Investment.
702. Investment of Moneys Held by the Trustee.
(A) Each of the Funds and Accounts held by the Trustee shall be a trust
fund for the purpose thereof. Moneys in each of said Funds and Accounts shall be
invested by the Trustee in Permitted Investments; provided, that the Agency may
direct the Trustee as to specific Permitted Investments by Officer's Certificate.
The maturity or redemption date of such investments shall coincide as nearly as
practicable with the times at which moneys in said Funds or Accounts will be
required for the purposes in this Indenture.
(B) Permitted Investments purchased as an investment of moneys in any
Fund or Account held by the Trustee shall be deemed at all times to be a part of
such Fund or Account until such amount is transferred in accordance with this
Indenture.
(C) Subject to the terms of any investment agreement, the Trustee
shall sell at the best price obtainable, or present for redemption, any Permitted
Investment whenever it shall be necessary in order to provide moneys to meet any
payment or transfer from the Fund or Account for which such investment was made.
703. Investment Yield Limitations. Beginning with the Bond Year
commencing March 1, 1983, at no time during any Bond Year shall the Trustee permit
the aggregate amount invested pursuant to this Article in investments having a
yield in excess of the Yield on the Bonds to exceed 150 percent of annual debt
service an the Bonds and, in addition, the Trustee shall assure that, beginning
with the Bond Year commencing March 1, 1984, said aggregate amount so invested
shall be reduced, by no later than the following March 1 of each Bond Year, by an
amount equal to the difference between the average scheduled monthly Mortgage Loan
payments for the Bond Year (excluding any receipts that were scheduled with respect
to Mortgage Loans that were prepaid in whole or in part in the preceding Bond Year)
and the average scheduled monthly Mortgage Loan payments for the preceding Bond
Year; provided, however, that the provisions of this Section shall not apply to
amounts in the Mortgage Loan Purchase Account prior to , 198
41
704. Report and Payment of Excess Investment Earnings to United States
(A) On or before February 1 and August I of each year the Trustee shall
estimate the maximum investment earnings on non- mortgage investments held under
this Indenture which may constitute Revenues ( "Estimated Maximum Investment
Earnings ") for the six months ending on the succeeding February 28 (29) and for the
year ending on the succeeding August 31, respectively. Estimated Maximum
Investment Earnings means the product of an interest rate equal to the Yield on the
Bonds multiplied by the average daily balance of amounts held (and estimated to be
held) under this Indenture for the appropriate period. Excess Investment Earnings
on non- mortga— investments in excess of Estimated Maximum Earnings shall be
deposited in the Estimated Excess Investment Earnings Account on the succeeding
March 1 or S =ntember 1. On or before April I of each year the Trustee will make a
final calculation as to the Excess Investment Earnings for the year ended February
28 (29). E,:cess Investment Earnings means earnings on non - mortgage investment held
under the Indenture (including unrealized gains and losses upon the retirement of
the last outstanding Bond) in excess of the sum of (i) Maximum Investment Earnings
(calculated on the basis of semiannual compounding), (ii) actual losses on Mortgage
Loans and (iii) the amount determined as specified by the Agency upon delivery of
the Bonds (to the extent not theretofore taken into account in determining Excess
Investment Earnings). Excess Investment Earnings, together with interest thereon
from February 28 (29), will be deposited in the Excess Investment Fund free and
clear of the lien of the Indenture and shall be remitted to the United States
Treasury. Amounts, if any, thereafter remaining in the Estimated Excess Investment
Earnings Account shall become available for the purposes of the Revenue Fund.
(B) In the event the calculations pursuant to subsection (A)
demonstrate that Excess Investment Earnings have resulted from investments during
the preceding Bond Year, the Trustee shall pay said Excess Investment Earnings,
together with interest thereon, to the United States (and the Agency hereby elects
to make such payment); provided, however, that such Excess Investment Earnings
shall be paid to the United States not less frequently than once each 5 years
following the date of delivery of the Bonds by paying an amount equal to 90 percent
of the aggregate Excess Investment Earnings earned during such period (and not
theretofore paid to the United States), and, not later than 30 days after the final
payment, by redemption or otherwise, of the Bonds, 100 percent of such aggregate
amount not theretofore paid to the United States.
(0) After payment, or provision for payment, by the Trustee of Excess
Investment Earnings to the United States, amounts, if any, remaining in the
Estimated Excess Investment Earnings Account or the Excess Investment Fund shall be
transferred to the Revenue Fund.
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ARTICLE VIII
THE TRUSTEE
801. Trustee Appointment and Acceptance of Duties. The Agency hereby
appoints , Los Angeles, California, as Trustee under
this Indenture. The Trustee shall signify its acceptance of the duties and
obligations imposed upon it by this Indenture by written instrument of acceptance
deposited with the Agency or by the execution of this Indenture. The property,
rights, powers and duties of the Trustee under this Indenture are hereby vested in
said Trustee in trust for the Bondholders. The Trustee (and any successor Trustee)
shall have a capital and surplus aggregating at least fifty million dollars
(550,000,000) and the Trustee (and any successor trustee) shall have a department
which is an FNMA or FHLMC approved seller /servicer.
802. Responsibilities of Trustee. The recitals of fact herein and in the
Bonds contained shall be taken as the statements of the Agency and the Trustee
assumes no responsibility for the correctness of the same. The Trustee shall not
be deemed to make any representations as to the validity or sufficiency of this
Indenture or of any Bonds issued thereunder or in respect of the security afforded
by this Indenture, and the Trustee shall not incur any responsibility or duty with
respect to the issuance of the Bonds for value or the application of the proceeds
thereof or the application of any moneys paid to the Agency. The Trustee shall not
be under any obligation or duty to perform any act which would involve it in expense
or liability or to institute or defend any suit in respect hereof, or to advance any
of its own moneys, unless properly indemnified to its satisfaction solely from
moneys available hereunder (as described in Section 104) or by the Holders of the
Bonds. The Trustee shall not be responsible for the validity, execution by other
parties thereto, or sufficiency of this Indenture, any Commitment Contract, any
Mortgage Loan Purchase Agreement, any Servicing Agreement or the Bonds. The
Trustee undertakes to perform such duties and only such duties as are specifically
set forth in this Indenture and no implied covenants or obligations shall be read
into this Indenture against the Trustee. In case an Event of Default has occurred
and has not been cured, the Trustee shall exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent investor would exercise or use under the circumstances in
the conduct of such investor's own affairs. The Trustee shall not be personally
liable with respect to (i) an error of judgment made in good faith by a responsible
officer (as defined in section 804) of the Trustee unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts, or (ii) any action
taken, suffered or omitted to be taken by it in good faith, in accordance with the
direction of Holders of not less than twenty -five percent (25%) in prinicipal
amount of the Outstandino Bonds, relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture.
803. Funds Held in Trust. All moneys held by the Trustee at any time
pursuant to th =t'e rms of this Indenture shall be and hereby are assigned,
transferred and set over unto such Trustee in trust for the purposes and under the
terms and conditions of this Indenture.
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804. Evidence on Which Trustee May Ac i. The Trustee shall be protected in
acting or refraining from acting upon any notice, resolution, request, consent,
order, certificate, report, opinion, bond, or other paper or document believed by
it to be genuine, and to have been signed or presented by the proper party or
parties. The Trustee may consult with counsel, who may with the consent of the
Agency, be counsel to the Agency, and the opinion or advice of such counsel shall be
full and complete authorization and protection in respect of any action taken or
suffered or omitted by it under this Indenture in good faith and in accordance
therewith.
Whenever the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering any action under this Indenture,
such matter (unless other evidence in respect thereof be therein specifically
prescribed) may be deemed to be conclusively proved and established by Officer's
Certificate and such Officer's Certificate shall be full warrant for any action
taken or suffered in good faith under the provisions of this Indenture upon the
faith thereof, but in its discretion the Trustee may in lieu thereof accept other
evidence of such fact or matter or may require such further or additional evidence
as to it may seem reasonable.
Except as otherwise expressly provided in this Indenture, any request,
order, notice or other direction required or permitted to be furnished pursuant to
any provision thereof by the Agency to the Trustee shall be sufficiently executed
if executed in the name of the Agency by an Authorized Officer.
Anything herein to the contrary notwithstanding, whenever it is provided
that the Trustee shall take any action, including the giving of any notice, or
refrain from taking any action upon the happening or continuation of a specified
event or upon the fulfillment of any condition or upon the request of the Holders,
the Trustee shall have no liability for failure to take such action or for failure
to refrain from taking such action unless and until a responsible officer of the
Trustee, who is a responsible officer at the Principal Office, has actual knowledge
of such event or continuation thereof or the fulfillment of such condition or shall
have received such request.
Responsible officer means, in the case of the Trustee, the chairman or vice
chairman of the executive committee of the board of directors or trustees, the
president, any vice president, the secretary, the treasurer, any trust officer, any
executive or senior or second or assistant vice president, or any other officer or
assistant officer customarily performing functions similar to those performed by
the persons who at the time shall be such officers, or to whom any corporate trust
matter is referred because of his knowledge of and familiarity with the particular
subject.
The Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder, either directly or by or through agents or attorneys.
805. Trustee Reliance on Documents. The Trustee may reasonably rely, as to
the truth of the statements and die correctness of the opinions expressed therein,
upon all Requisitions, certificates or other documents furnished to the Trustee
pursuant to this Indenture and believed by the Trustee to be genuine. All such
44
Requisitions, certificates and other documents shall be retained in the possession
of the Trustee, subject at all times during normal business hours to the inspection
of the Agency. The Trustee has no responsibility or liability for the correctness,
validity and genuineness of any such Requisition, certificate or other document
believed by the Trustee to be genuine, valid and correct. -.
806. Compensation and Expenses. The Agency shall pay to the Trustee from
time to time reasonable compensation for all services rendered under this
Indenture, and also all reasonable expenses, charges, legal and consulting fees and
other disbursements and those of its attorneys, agents and employees, incurred in
and about the performance of their powers and duties under this Indenture and the
Trustee shall have a lien therefor on moneys in all Funds and Accounts (excepting
Excess Investment Earnings) held by it under this Indenture which lier, shall be
prior and superior to the lien of the Bondholders. The Agency further covenants
and agrees to advance to the Trustee, from amounts available therefor in the
Revenue Fund, all amounts requested as the costs and expenses.
807. Permitted Acts and Functions. The Trustee may buy, own, hold and sell
any Bcnds or notes of the Agency, whether heretofore or hereafter issued or
created; and may engage or be interested in any financial or other transaction with
the Agency, including (subject to any law or regulation precluding or limiting any
relationships between Mortgage Loans and Bond purchase) serving as a Lender in the
Mortgage loan Financing Program with like effect and with the same rights it would
have if it were not such Trustee. The Trustee may act as depository for, and permit
any of its officers or directors to act as a member of, or in any other capacity
with respect to, any committee formed to protect the rights of Bondholders or to
effect or aid in any reorganization growing out of the enforcement of the Bonds or
this Indenture whether or not any such committee shall represent the Holders of a
majority in principal amount of the Bonds then Outstanding.
808. Resignation of Trustee. The Trustee may at any time resign and be
discharged of the duties and obligations created by this Indenture by giving not
less than sixty (60) days' written notice to the Agency and to all Bondholders as
their names and addresses are shown in the Bond Register. Such resignation shall
take effect on the date on which the appointment of a successor Trustee under
Section 810 becomes effective.
809. Removal of Trustee. The Trustee shall be removed by the Agency if at
any time so requested by an instrument or concurrent instruments, in writing, filed
with the Trustee and the Agency, and signed by the Holders of a majority in
principal amount of the Bonds then Outstanding or their attorneys -in -fact duly
authorized, excluding any Bonds held by or for the account of the Agency. The
Agency may remove the Trustee at any time, except during the existence of an Event
of Default as defined in Section 1201 hereof, for such cause as shall be determined
in the sole discretion of the Agency by filing with the Trustee an instrument
signed by an Authorized Officer. Such removal shall take effect on the date on
which the appointment of a successor Trustee under Section 810 become effective.
810. Appointment of Successor Trustee. In case at any time the Trustee
shall resign or shall be removed or shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of
45
the Trustee, or of its property or affairs is appointed, the Agency covenants and
agrees that it will thereupon appoint a successor Trustee. Prior to appointment,
any successor trustee shall first be approved in writing by the Municipal Bond
Insurance Association. The Agency shall cause the successor trustee to mail -such
notice to all Bondholders as their names and addresses are shown in the'Bond
Register, such mailing to be made within twenty (20) days after such appointment.
If in a proper case no appointment of a successor Trustee shall be made
pursuant to the foregoing provisions of this Section within forty -five (45) days
after the Trustee shall have given to the Agency written notice, as provided in
Section 808, or upon removal as provided in Section 809 after a vacancy in the
office of the Trustee shall have occurred by reason of its inability to act or other
reason set forth in this Section, the Trustee or the Holder of any Bond may apply to
any court of competent jurisdiction to appoint a successor Trustee. Said court may
thereupon, after such notice, if any, as such court may deem proper and prescribe,
appoint a successor Trustee.
811. Transfer of Rights and Property to Successor Trustee. Any successor
Trustee appointed under this Indenture shall execute, acknowledge and deliver to
its predecessor Trustee, and also to the Agency, an instrument accepting such
appointment, and thereupon such successor Trustee, without any further act, deed or
conveyance, shall become fully vested with all money, estates, properties, rights,
powers, duties and obligations of such predecessor Trustee, with like effect as if
originally named as Trustee; but the Trustee ceasing to act shall, nevertheless, on
the written request of the Agency, or of the successor Trustee, execute,
acknowledge and deliver such instruments of conveyance and further assurance and do
such other things as may reasonably be required for more fully and certainly
vesting and confirming in such successor Trustee all the right, title and interest
of the predecessor Trustee in and to any property held by it under this Indenture,
and shall pay over, assign and deliver to the successor Trustee any money or other
property subject to the trusts and conditions herein set forth. Should any deed,
conveyance or instrument in writing from the Agency be required by such successor
Trustee for more fully and certainly vesting in and confirming to such successor
Trustee any such estates, rights, powers and duties, any and all such deeds,
conveyances and instruments in writing shall, on request, and so far as may be
authorized by law, be executed, acknowledged and delivered by the Agency.
812. Mercer, Conversion or Consolidation. Any company into which the
Trustee may be merged or converted or with which it may be consolidated or any
company resulting from any merger, conversion or consolidation to which it shall be
a party or any company to which the Trustee may sell or transfer all or
substantially all of its corporate trust business, shall be the successor to such
Trustee without the execution or filing of any paper or the performance of any
further act; provided, that such Trustee shall be a bank or trust company organized
under the laws of the State or a national banking association and shall have an
office for the transaction of its business in the State, and shall be authorized by
law to perform all the duties imposed upon it by this Indenture.
46
ARTICLE IX
COVENANTS OF THE AGENCY
The Agency covenants and agrees with the Holders of the Bonds as follows
901. Payment of Bands. The Agency shall promptly pay, or cause to be paid,
any and all Pledged Revenues received by it to the Trustee for deposit and
application thereof to the payment of the principal or Redemption Price, if any, of
every Bond and the interest thereon, at the dates and places and in the manner
provided in the Bonds, according to the true intent and meaning thereof.
902. Extension of Payment of Bonds. The Agency shall not directly or
indirectly extend or assent to the extension of the maturity of any of the Bonds or
claims for interest by the purchase or funding of such Bonds or claims for interest
or by any other arrangement, and in case the maturity of any of the Bonds or the
time for payment of any claims for interest shall be extended, such Bonds or claims
for interest shall not be entitled in case of any default under this Indenture to
the benefit of this Indenture or to any payment out of any of the funds held by the
Trustee, except subject to the prior payment of the principal of all Bonds issued
and Outstanding the maturity of which has not been extended and of such portion of
the accrued interest on the Bonds as shall not be represented by such extended
claims for interest.
903. Further Assurances. At any and all times the Agency shall, so far as uth
it may be aorized or permitted by law, pass, make, do, execute, acknowledge and
deliver, all and every such further resolutions, acts, deeds, conveyances,
assignments, transfers and assurances as may be necessary or desirable for the
better assuring, conveying, granting, assigning, confirming and effecting all and
singular the rights, Pledged Revenues, the Mortgage Loans, Funds and Accounts and
other moneys, securities, funds and property hereby pledged or assigned or intended
so to be, or which the Agency may hereafter become bound to pledge or assign.
904. Power to Issue Bonds and Make led
es. The Agency is duly authorized
pursuant to law to authorize and issue the Bonds and to adopt this Indenture and to
pledge the Pledged Revenues, the Residence Montages and Funds and Accounts,
purported to be pledged by this Indenture in the manner and to the extent provided
in this Indenture. The Pledged Revenues, the Residence Montages and Funds and
Accounts so pledged are and will be free and clear of any pledge, lien, charge or
encumbrance thereon or with respect thereto prior to, or of equal rank with, the
pledge created by this Indenture, except for the lien in favor of the Trustee
provided in Section 806 hereof, and all corporate action on the part of the Agency
to that end has been duly and validly taken. The Bonds and the provisions of this
Indenture are and will be the valid and legally enforceable obligations of the
Agency in accordance with their terms and the terms of this Indenture. The Agency
shall at all times, subject to the limitations of Section 104, defend, preserve and
protect the pledge of the Pledged Revenues, the Mortgage Loans and Funds and
Accounts under this Indenture and all the rights of the Bondholders under this
Indenture against all claims and demands of all persons whomsoever.
47
905. Accounts and Reports.
(A) The Agency shall keep or cause the Trustee to keep proper books of
record and account in which complete and correct entries shall be made of. its
transactions relatina to the Mcrtgage Loans, the Pledged Revenues, and all Funds
and Accounts established by this Indenture, which shall at all reasonable times be
subject to the inspection of the Trustee and the Holders of an aggregate of not less
than five percent (51%) in principal amount of the Bonds then Outstanding or their
representatives duly authorized in writing.
(B) The Agency shall annually cause an accountant's examination of its
Mortgage Loan Financing Program (hereinafter in this subsection referred to as the
"Program ") for such Fiscal Year and within one hundred and twenty (120) days after
the close of such Fiscal Year, file with the Trustee a copy of the annual
examination accompanied by an Accountant's Certificate, setting forth in complete
and reasonable detail the following matters relating to the Program: (i) the
operations and accomplishments of the Program; (ii) receipts and expenditures of
the Program during such Fiscal Year in accordance with the categories or
classifications established by the Agency for its operating and capital outlay
purposes; (iii) the assets and liabilities of the Program at the end of such Fiscal
Year, including the status of the Funds and Accounts established by this Indenture;
and (iv) a schedule of its Bonds Outstanding at the end of such Fiscal Year,
together with a statement of the amounts paid, redeemed and issued during such
Fiscal Year. A copy of each such annual report and Accountant's Certificate shall
be mailed by the Agency to each Bondholder who shall have filed his name and address
with the Agency for such purpose. The expense of the annual examination and
Accountant's Certificate shall be paid by the Trustee from moneys in the Operating
Fund upon receipt of an appropriate Requisition from the Agency.
906. Personnel and Servicinq of Mortga oe Loans. The Agency shall at all
times appoint, retain and employ competent supervisory personnel for the purpose of
carrying out its Mortgage Loan Financing Program and shall establish and enforce
reasonable rules, regulations and standards for the construction and completion of
all Residential Construction and for servicing Mortgage Loans. All persons
employed by the Agency shall be qualified for their respective positions. Nothing
herein shall mean or be aeemed to be a prohibition against the Agency's contracting
for all or any part of such services.
907. Payment of Premiums. The Agency shall cause the Trustee to pay in a
timely manner from moneys in the Operating Fund (and, if there are insufficient
moneys in the Operating Fund, then from moneys in the Prior Redemption Fund) the
annual premiums on Special Hazard Insurance, except that the first annual premium
on Special Hazard Insurance may be paid from the Issuance Expense Account,
908. Waiver of Laws. The Agency shall not (to the extent then permitted by
law) at any time insist upon or plead in any manner whatsoever, or claim or take the
benefit or advantage of any stay or extension law now or at any time hereafter in
force which may adversely affect the covenants and agreements contained in this
Indenture or in any Supplemental Indenture or in the Bonds, and all benefit or
advantage or any such law or laws is hereby expressly waived by the Agency.
48
909. Compliance with Conditions Precedent. Upon the date of issuance of
any of the Bonds, all conditions, acts and things required by law or by the
Indenture to exist, to have happened or to have been performed precedent to or in
the issuance of such Bonds shall exist, have happened and have been performed, and
such Bonds, together with all other indebtedness of the Agency, shall be within
every debt and other limit prescribed by law.
910. Issuance of Additional Obligations.
(A) The Agency shall not hereafter create or permit the creation of or
issue any obligations or create any additional indebtedness which will be secured
by a charge and lien on or which will be payable from the Pledged Revenues, the
Mortgage Loans or Funds and Accounts except for the Bonds authorized herein.
(B) The Agency expressly reserves the right to adopt one or more other
bond resolutions for any of its programs, and reserves the right to issue other
obligations so long as same are not a charge or lien on the Pledged Revenues, the
Mortgage Loans or Funds and Accounts, or payable from the Funds or Accounts.
911. Procram Covenants.
(A) Exercise of Due Diligence. The Agency shall from time to time,
with all practical dispatch, due diligence and in a sound and economical manner
consistent in all respects with the Act and with the provisions of this Indenture,
use and apply the proceeds of the Bonds to the purchase of Mortgage Loans, and shall
do all such acts and things necessary to receive and collect or cause to be received
and collected Pledged Revenues, Mortgage Insurance Proceeds and Escrow Payments, as
may be consistent with sound banking practices and principles and shall diligently
enforce, and take all steps, actions and proceedings reasonably necessary in the
judgment of the Agency for the enforcement of all terms, covenants and conditions
of Mortgage Loans.
(B) Maintenance of Special Hazard Insurance. The Agency shall obtain
and cause the Trustee to maintain Special Hazard Insurance, The Special Hazard
Insurance shall insure each Residence and condominium project and which shall be in
the greater of an amount at least equal to one percent (lb) of the original
principal amount of all Mortgage Loans purchased by the Trustee on behalf of the
Agency or twice the original principal amount of the largest Mortgage Loan
purchased by the Trustee on behalf of the Agency. Pursuant to Section 907, the
Agency shall cause the Trustee to pay in a timely manner all premiums for Special
Hazard Insurance.
(C) Investigation as to Validity of Affidavits.
(i) The Agency shall cause the Lender, as agent of the Agency,
to investigate diligently the truth and validity of each affidavit executed by a
mortgagor pursuant to Section 506(A)(11) and 508(A) hereof and each affidavit
executed by the seller of a Residence pursuant to Section 508(8). Such
investigation shall include, but not be limited to, examination of copies of the
income tax returns of mortgagors filed with the Internal Revenue Service for the
three (3) years prior to execution of the affidavits or shall otherwise comply with
49
the requirements of Revenues Procedure 82 -16 as published in Internal Revenue
Bulletin No. 1982 -9 (or any successor regulation, ruling or procedure of the
Internal Revenue Service).
(ii) In the sent that the Trustee or the Aga)cy becomes aware,
or the Lender discovers, subsequent to the purchase of the Mortgage Loan that
either (a) one or more portions of an affidavit executed by the mortgagor pursuant
to Section 506( ,*) or SecO on 508(A) contains a materially incorrect statement of
fact, or (b) the Mor..9age Loan has been assumed in violation of the requirements of
subsection (G), the Trustee or the Agency shall by written notice direct the Lender
to, or the Lender shall (without such direction, in the event that the Lender
discovers one of said facts', provide written notice of default to the mortgagor,
declare the entire unpaid balance of the Mortgage Loan due and payable within ten
(10) days of said notice and does not pay in full the remaining principal amount of
the Mortgage Loan together with accrued and unpaid interest, within the aforesaid
ten (10) day period. A. copy of each notice provided hereunder shall be given to
each of the other of th-.Agency, the Trustee or the Lender.
(D) Effective Mortqaqe Interest Rate. No amounts which have been
deposited in a Mortgage Loan Purchase Account shall be used to purchase any
Mortgage Loan unless the "effective rate of interest" on the Mortgage Loan to be so
purchased is equal to or less than one and one-eighth (1 -1 /8) percentage point over
the Yield on the Bonds as said Yield on the Bonds is computed at the time of
delivery of the Bonds. "Effective rate of interest" as used herein shall have the
same meaning as is ascribed to such term in Section 103A(i)(2) of the Internal
Revenue Code of 1954, as amended, and regulations promulgated thereunder.
(E) Mortgage Loan Term. The Agency shall assure that each Mortgage
Loan purchased by the Trustee from moneys in the Mortgage Loan Purchase Account
shall have a final maturity date of not less than twenty -nine (29) years and not
more than thirty (30) years following the date of purchase of said Mortgage Loan by
the Trustee.
(F) Mortqage Loan Date z. No Mortgage Loan shall be purchased under
this Indenture unless it is dated and payable monthly on the first day of a month.
(G) Assumption of Mortgage Loans. The Trustee shall not consent to
the assumption of a Mortgage Loan unless there is filed with the Trustee, together
with a request from the Lender for such assumption, the documents described in
Sections 507(A) and (B), 508(A) through (F) and 509(A) through (D), except that the
term "mortgagor" in each of said Sections shall be deemed to refer to the person who
proposes to assume the Mortgage Loan.
(H) Mortgage,Insurance. No Mortgage Loan shall be purchased under
this Indenture unless it shall have been finally endorsed for insurance by Private
Mortgage Insurance to the extent required by the applicable Mortgage Loan Purchase
Agreement or firm commitments for such endorsements obtained. Private Mortgage
Insurance shall include advance payments, attorneys' fees, limit waiver, due -on-
sale exclusion waiver and non - monetary default endorsements.
50
(I) Enforcement of Agreements. The Agency shall diligently enforce,
and take all steps, actions and proceedings reasonably necessary in the judgment of
the Agency for the enforcement of all terms, covenants and conditions of Commitment
Contracts, Mortgage Loan Purchase Agreements and Servicing Agreements.
(J) No Prohibition of Repurchase. Nothing in this Indenture shall be .
construed to prohibit the Agency (or the Trustee acting for and on behalf of the
Agency) from causing a Lender to repurchase a Mortgage Loan at par in accordance
with the applicable Mortgage Loan Purchase Agreement.
(K) Delivery of Mortgage Loan Receipts. All Servicing Agreements
shall require the Servicer to deliver the proceeds of any Prepayment (including,
the proceeds of liquidation of a Mortgage Loan or the net proceeds of any Hazard
Insurance or Special Hazard Insurance) to the extent such proceeds are in excess of of such
Prepayment by the hServicer to business sTrustee for fits designee, a together receipt
with a written
statement setting forth the exact amount of any such proceeds to be credited to the
principal amount of a Mortgage Loan. In addition, the Servicer shall be required to
deposit all Mortgage Loan receipts daily with the Trustee, unless the Servicer
shall agree to deposit all Mortgage Loan receipts daily into a custodial account
for the Trustee on behalf of the Agency collateralized by Permitted Investments or
insured by the Federal Deposit Insurance Corporation or by the Federal Savings and
Loan Insurance Corporation and the Servicer shall further agree that at no time
shall Mortgage Loan receipts in such account exceed the amount of such insurance.
(L) CoaRliance with Rules and Regulations. The Agency shall require
Lenders and Servicers to comply with all rules and regulations of the Mortgage
Insurer issuing Mortgage Insurance for the applicable Mortgage Loan and shall
further require that Lenders and Servicers hold the Agency, the Trustee and the
Bondholders harmless for non - compliance with such rules and regulations.
(M) Deliver, of Insurance Proceeds. The proceeds of Mortgage
Insurance or foreclosure or sale of the Residence or liquidation of a Mortgage Loan
or the Net Proceeds of Hazard Insurance or Special Hazard Insurance paid to the
Trustee shall, if received, be deposited in the Revenue Fund.
(N) Optional _Prepayment Penalties. Subject to the hereinafter
provided option to make an addi tonal payment at the time of origination of a
Mortgage Loan, each Mortgage Loan shall provide a prepyament penalty for principal
payments that accelerate the original amortization schedule of the Mortgage Loan.
During the first five years of the life of such Mortgage Loan, each mortgagor shall
be subject to a prepayment penalty on all principal paid in a twelve month period in
excess of twenty percent (20 %) of the original principal amount of the Mortgage
Loan Loan. The penalty to be collected from the mortgagor for any such prepayment
shall equal six months' interest calculated at the annual interest rate that such
Mortgage Loan bears and the penalty shall be applied against principal paid in
excess of the allowed 20% per year collected from the mortgagor. No prepayment
penalty is allowed after the fifth year of the Mortgage Loan. If concurrently with
the purchase of a Mortgage Loan the Trustee shall receive from the Lender an
additional payment equal to .75 of 19; of the initial principal amount of a Mortgage
Loan, then the Mortgage Loan shall not provide for the above described prepayment
penalty.
51
(0) Proper Servicing. The Agency covenants to include provisions in
the Servicing Agreements adequate to assure proper servicing of the Mortgage Loans,
including (a) provisions to insure diligent action to foreclose or assign to the
Mortgage Insurer any defaulted Mortgage Loan; and (b) provisions to insure regular
collection of all payments due on the Mortgage Loans, and to insure all deposits
for insurance premiums and, if applicable, taxes and other similar items in an
Escrow Payment fund.
(P) Performance of Covenants. The Agency further covenants that it
will cause its staff and the Lenders, as agents of the Agency, diligently to
perform the covenants contained in this Section.
912. Covenant Relating to Arbitrage. The Agency hereby covenants that it
will make no use of the proceeds of the Bonds at any time during the term thereof
which, if such use had been reasonably expected on the date of the Bonds, would have
caused the Bonds to be arbitrage bonds within the meaning of Section 103(c) of the
Internal Revenue Code of 1954, as amended, and any applicable regulations
promulgated thereunder or would have caused the Bonds to be mortgage subsidy bonds
within the meaning of Section 103A(a) of the Internal Revenue Code of 1954, as
amended, and any applicable regulations promulgated thereunder.
913. No"Arbitraae Certification. The President of the Agency is
authorized and instructed to set forth in brief summary terms in a certificate the
facts, circumstances and estimates upon which the Agency's expectation that the
Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds
within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as
amended or to violate the requirements related to arbitrage set forth in Section
303A(i) of the Internal Revenue Code of 1954, as amended, is based. The
certification of the President of the Agency shall be included in a transcript
prepared at the time that the Bonds are delivered to the purchaser.
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ARTICLE X
SUPPLEMENTAL INDENTURES
1001. Adoption and Filing. The Agency may, without the consent of the
Holders of the Bonds, adopt, at any time and from ,ime to time, Supplemental
Indentures for any one or more of the following purposes, and any such Supplemental
Indenture shall become effective in accordance with its terms and upon filing with
the Trustee of a copy thereof certified by an Authorized Officer:
(1) to add additional covenants and agreements of the Agency for the
purpose of further securing the payment of the Bonds, provided such additional
covenants and agreements are not contrary to or inconsistent with the covenants and
agreements of the Agency contained in this Indenture;
(2) to prescribe further
issuance of Bonds and the incurring of
contrary to or inconsistent with the
theretofore in effect;
limitations and restrictions upon the
indebtedness by the Agency which are not
limitations and restrictions thereon
(3) to surrender any right, power or privilege reserved to or
conferred upon the Agency by the terms of this Indenture;
(4) to confirm as further assurance any pledge under and the
subjection to any lien, claim or pledge created or to Be created by the provisions
of this Indenture of the Pledged Revenues, the Mortgage Loans, Funds and Accounts
or of any other moneys, securities or funds;
(5) to conform with the provisions of Section 103(A) of the Internal
Revenue Code of 1954, as now or hereafter amended, and any applicable regulations
or rulings promulgated or issued thereunder if such modification or amendment, in
the opinion of nationally recognized bond or tax counsel, will assist in clarifying
the applicability of said Section 103(A) to the Mortgage Loans and to the Bonds or
will insure that the tax- exempt status of interest on the Bonds is not impaired; or
(6) with the consent of the Trustee, and provided the interests of the
Bondholders are not adversely affected, to cure any ambiguity or defect or
inconsistent provision in this Indenture or to insert such provisions clarifying
matters or questions arising under this Indenture as are necessary or desirable.
1002. Supp_1_eme n taI Indentures Effective with Consent of Bondholders. The
provisions of this Indenture may be modified, at any time and from time to time by a
Supplemental Indenture, subject to the consent of Bondholders in accordance with
and subject to the provisions of Article XI hereof, such Supplemental Indenture to
become effective upon the filing with the Trustee of a copy thereof certified by an
Authorized Officer,
1003, General Provisions Relating to Supplemental Indentures. This
Indenture shall not be modifiedor amended in any respect except in accordance with
and subject to the provisions of this Article X and Article XI. Nothing contained
53
in this Article X o- Article XI shall affect or limit the right or obligation of the
Agency to adopt, make, do, execute or deliver any resolution, act or other
instrument pursuant to the provisions of Section 903 or the right or obligation of
the Agency to execute and deliver to the Trustee any instrument elsewhere in this
Indenture provided or permitted to be delivered to the Trustee.
A copy of every Supplemental Indenture adopted by the Agency when filed with
the Trustee shall be accompanied by a Counsel's Opinion stating that such
Supplemental Indenture has been duly and lawfully adopted in accordance with the
provisions of this Indenture, is authorized or permitted by this Indenture and is
valid and binding upon the Agency and enforceable in accordance with its terms.
The Trustee is hereby authorized to accept delivery of a certified copy of
any Supplemental Indenture permitted or authorized pursuant to the provisions of
this Indenture and to make all further agreements and stipulations which may be
contained therein, and, in taking such action, the Trustee shall be fully protected
in relying on Counsel's Opinion that such Supplemental Indenture is authorized or
permitted by the provisions of this Indenture.
No Supplemental Indenture changing, amending or modifying any of the rights
or obligations of the Trustee may be adopted by the Agency without the written
consent of the Trustee.
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ARTICLE %1
AMENDMENTS OF INDENTURE
1101. Powers of Amendment. In addition to modifications and amendments
pursuant to Section 1001, any modification or amendment of this Indenture and of
the rights and obligations of the Agency and of the Holders of the Bonds thereunder
in any particular, may be made by a Supplemental Indenture, with the written
consent given as hereinafter provided in Section 1102, of the Holders of at least
two- thirds of the Bond Obligation at the time such consent is given. No such
modification or amendment shall (i) extend the stated maturity of any Bond or
reduce the amount of principal thereon, or extend the time of payment of interest
thereof, without the consent of the registered owner thereof, or (ii) reduce the
percentage of Bonds the consent of the registered owners of which is required to
effect any such modification or amendment, or permit the creation of any lien on
the Pledged Revenues and other assets pledged as security for the Bonds prior to or
on a parity with the lien created by the Indenture, or deprive the registered
owners of the Bonds of the lien created by the Indenture upon such Pledged Revenues
and other assets (except as expressly provided in the Indenture), without the
consent of the registered owners of all Bonds then outstanding, or (iii) modify any
of the rights or obligations of the Trustee, without the written consent thereof.
1102. Consent of Bondholders. The Agency may at any time adopt a
Supplemental Indenture making a modification or amendment permitted by the
provisions of Section 1101 to take effect when and as provided in this Section. A
copy of such Supplemental Indenture (or brief summary thereof or reference thereto
in form approved by the Trustee) together with a request to Bondholders for their
consent thereto in form satisfactory to the Trustee, shall be mailed by the Agency
to Bondholders and shall be published at least once a week for two (2) successive
weeks (but failure to mail such copy and request shall not affect the validity of
the Supplemental Indenture when consented to as in this Section provided). Such
Supplemental Indenture shall not be effective unless and until (i) there shall have
been filed with the Trustee (a) the written consent of Holders of the percentages
of Outstanding Bonds specified in Section 1101 and (b) a Counsel's Opinion stating
that such Supplemental Indenture has been duly and lawfully adopted and filed by
the Agency in accordance with the provisions of this Indenture, is authorized or
permitted by this Indenture, and is valid and binding upon the Agency and
enforceable in accordance with its terms, and (ii) a notice shall have been
published as hereinafter in this Section 1102 provided. Each such consent shall be
effective only if accompanied by proof of the holding, at the date of such consent,
of the Bonds with respect to which such consent is given, which proof shall be such
as is permitted by Section 1301. A certificate or certificates by the Trustee
filed with the Trustee that it has examined such proof and that such proof is
sufficient in accordance with Section 1301 shall be conclusive that the consents
have been given by the Holders of the Bonds described in such certificate or
certificates of the Trustee. Any such consent shall be binding upon the Holder of
the Bonds giving such consent and, anything in Section 1301 to the contrary
notwithstanding, upon any subsequent Holder of such Bonds and of any Bonds issued
in exchange therefor (whether or not such subsequent Holder thereof has notice
thereof), unless such consent is revoked in writing by the Holder of such Bonds
55
giving such consent or a subsequent Holder thereof by filing with the Trustee prior
to the time when the written statement of the Trustee hereinafter in this Section
1102 provided for is filed, such revocation. The fact that a consent has not been
revoked may likewise be proved by a certificate of the Trustee filed with the
Trustee to the effect that no revocation thereof is on file with the Trustee. At
any time after the Holders of the required percentages of Bonds shall have filed
their consents to the Supplemental Indenture, the Trustee shall make and file with
the Agency and the Trustee a written statement that the Holders of such required
percentages of Bonds have filed such consents. Such written statement shall be
conclusive evidence that such consents have been so filed. At any time thereafter
notice, stating in substance that the Supplemental Indenture (which may be referred
to as a Supplemental Indenture adopted by the Agency on a stated date, a copy of
which is on file with the Trustee) has been consented to by the Holders of the
required percentages of Bonds and will be effective as provided in this Section
1102, may be given to Bondholders by the Agency by mailing such notice to
Bondholders (but failure to mail such notice shall not prevent such Supplemental
Indenture from becoming effective and binding as in this Section 1102 provided) and
by mailing the same to Bondholders after the Holders of the required percentages of
Bonds shall have filed their consents to the Supplemental indenture and the written
statement of the Trustee hereinabove provided for is filed. The Agency shall file
with the Trustee proof of the mailing of such notice. A transcript, consisting of
the papers required or permitted by this Section 1102 to be filed with the Trustee,
shall be proof of the matters therein stated. Such Supplemental Indenture making
such amendment or modification shall be deemed conclusively binding upon the
Agency, the Trustee and the Holders of all Bonds at the expiration of thirty (30)
days after the filing with the Trustee of the proof of the mailing of such last
mentioned notice, except in the event of a final decree of a court of competent
jurisdiction setting aside such Supplemental Indenture in a legal action or
equitable proceeding for such purpose commenced within such thirty (30) day period;
provided, however, that the Agency and the Trustee during such thirty (30) day
period and any such further period during which any such action or proceeding may
be pending shall be entitled in their absolute discretion to take such action, or
to refrain from taking such action, with respect to such Supplemental Indenture as
they may deem expedient.
1103. Modifications by Unanimous Consent. The terms and provisions of
this Indenture and the rights and obligations of the Agency and of the Holders of
the Bonds hereunder may be modified or amended in any respect upon the adoption and
filing with the Trustee by the Agency of a Supplemental Indenture and the consent
of the Holders of all of the Bonds then Outstanding, such consent to be given as
provided in Section 1102, except that no notice to Bondholders either by mailing or
publication shall be required.
1104. Mailing. Any provision in this Article for the mailing of a notice or
other document to Bondholders shall be fully complied with if it is mailed postage
prepaid only to each registered owner of Bonds then Outstanding at his address, if
any, appearing upon the Bond peoister of the Trustee, and (ii) to the Trustee.
1105. Exclusion of Bonds. Bonds owned or held by or for the account of the
Agency shall riotb'e tleemed Outstanding for the purpose of consent or other action
or any calculation of Outstanding Bonds provided for in this Article, and the
56
Agency shall not be entitled with respect to such Bonds to give any consent or take
any other action provided for in this Article. At the time of any consent or other
action taken under this Article, the Agency shall furnish the Trustee a certificate
of an Authorized Officer, upon which the Trustee may rely, describing all Bonds so
to be excluded.
1106. Notation on Bonds, Bonds delivered after the effective date of any
action taken as in Article X or this Article provided may, and, if the Trustee so
determines, shall, bear a notation by endorsement or otherwise in form approved by
the Agency and the Trustee as to such action, and in that case, upon demand of the
Holder of any Bond Outstanding at such effective date and upon presentation of the
applicable Bond for the purpose at the Principal Office of the Trustee, suitable
notation shall be made on such Bond by the Trustee as to any such action. If the
Agency or the Trustee shall so determine, new Bonds so modified as in the opinion of
the Trustee and the Agency to conform to such action shall be prepared and
delivered, and upon demand of the Holder of any Bond then Outstanding shall be
exchanged, without cost to such Bondholder, for Bonds of the same maturity then
Outstanding, upon surrender of the Bonds.
57
ARTICLE 1(II
DEFAULTS AND REMEDIES
1201. Events of Default. Each of the following events is hereby declared
an "Event of Default ":
(1) if the payment of the principal or Redemption Price of any Bond is
not made when and as the same shall become due, whether at maturity or upon call for
redemption, or otherwise; or
(2) if the payment of interest on any Bond is not made when and as the
same shall become due and such default shall continue for a period of thirty (30)
days; or
(3) if the Agency shall fail or refuse to comply with the provisions
of the Act, or shall default to the performance or observance of any other of the
covenants, agreements, or conditions on its part in this Indenture, any
Supplemental Indenture, or in the Bonds contained, and continuance of such default
for a period of ninety (90) days after written notice thereof by the Trustee; or
(4) if the Agency shall file a petition or answer seeking
reorganization or arrangement under the federal bankruptcy laws or any other
applicable law of the United States of America, or if a court of competent
jurisdiction shall approve a petition, filed with or without the consent of the
Agency, seeking reorganization under the federal bankruptcy laws or any other
applicable law of the United States of America, or if, under the provisions of any
other law for the relief or aid of debtors, any court of competent jurisdiction
shall assume custody or control of the Agency or of the whole or any substantial
part of its property;
provided, however, that an Event of Default shall not be deemed to exist under the
provisions of paragraph (3) above upon the failure of any Servicer to enforce any
obligation undertaken by a mortgagor pursuant to the provisions of a Mortgage Loan,
including the making of the repayments required pursuant to such Mortgage Loan, so
long as the Servicer may be otherwise permitted by law and so long as the Agency
shall be provided with money sources, other than withdrawals from or reimbursements
of the Debt Service Reserve Fund, sufficient in amount to pay the Principal
Installments of and interest on all Bonds as the same shall become due during the
period for which the Servicer shall be permitted by law to abstain from enforcing
the obligations of mortgagors under the applicable Mortgage Loans.
1202. Remedies. Upon the happening and continuance of any Event of Default
specified in Section 1201, then, and in each case, the Trustee may proceed, and
upon the written request of the Holders of not less than twenty-five percent (25 %)
of the Bond Obligation shall proceed, in its own name, to protect and enforce its
rights and the rights of the Bondholders by such of the following remedies, as the
Trustee, being advised by counsel, shall deem most effectual to protect and enforce
such rights:
58
(1) by suit, action or proceeding, enforce all rights of the
Bondholders, including the right to require Servicers to collect payments required
pursuant to Mortgage Loans held by them adequate to carry out the covenants and
agreements contained in this Indenture and to require the Agency to perform its
duties under the Act;
(2) by bringing suit upon the Bonds or to enforce payment of other
sums payable to the Trustee;
(3) by action or suit, require the Agency to account as if it were the
trustee of an express trust for the Holders of the Bonds;
(4) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the Holders of the Bonds or to compel the Agency or
any Lender or Servicer to perform their respective duties under this Indenture and
any Commitment Contract, Mortgage Loan Purchase Agreement or Servicing Agreement;
and
(5) as otherwise provided in Section 1208.
1203. Priority of Payments After Default. In the event that the funds held
by the Trustee shall be insufficient for the payment of interest and Principal
Installments or Redemption Price then due on the Bonds and under this Indenture,
such funds and any other moneys received or collected by the Trustee acting
pursuant to this Indenture and this Article XII, after making provision for the
payment of any expenses necessary in the opinion of the Trustee to protect the
interests of the Holders of the Bonds, and for the payment of the charges and
expenses and liabilities incurred and advances made by the Trustee in the
performance of its duties under this Indenture shall be applied as follows:
payable, (1) Unless the principal of all the Bonds shall have become due and
First: To the payment to the persons entitled thereto of all
installments of interest then due in the order of the maturity of such
installments, and, if the amount available shall not be sufficient to pay in full
any installment, then to the payment thereof ratably, according to the amounts due
on such installment, to the persons entitled thereto, without any discrimination or
preference; and
Second: To the payment to the persons entitled thereto of the
unpaid principal or Redemption Price of any Bonds which shall become due, whether
at maturity or by call for redemption, in the order of their due dates and, if the
amounts available shall not be sufficient to pay in full all the Bonds due on any
date, then to the payment thereof ratably, according to the amounts of principal or
Redemption Price due on such date, to the persons entitled thereto, without any
discrimination or preference.
(2) If the principal of all of the Bonds shall have become due and
payable, to the payment of the principal and interest then due and unpaid upon the
Bonds without preference or priority of principal over interest or interest over
59
principal, or of any installment of interest over any other installment of
interest, or of any Bond over any other Bond, ratably, according to the amounts due
respectively for principal and interest, to the persons entitled thereto without
any discrimination or preference except as to any difference in the respective
rates of interest specified in the Bonds.
The provisions of this Section 1203 are in all respects subject to the
provisions of Section 902.
Whenever moneys are to be applied by the Trustee pursuant to the provisions
of this Section, such moneys shall be applied by the Trustee at such times, and from
time to time, as the Trustee in its sole discretion shall determine, having due
regard to the amount of such moneys available for application and the likelihood of
additional money becoming available for such application in the future; the deposit
of such moneys or otherwise setting aside such moneys in trust for the proper
purpose, shalt constitute proper application by the Trustee; and the Trustee shall
incur no liability whatsoever to the Agency, to any Bondholder, or to any other
person for any delay in applying any such moneys, so long as the Trustee acts with
reasonable diligence, having due regard for the circumstances, and ultimately
applies the same in accordance with such provisions of this Indenture as may be
applicable at the time of application by the Trustee. Whenever the Trustee shall
exercise such discretion in applying such moneys, it shall fix the date (which
shall be an Interest Payment Date unless the Trustee shall deem another date more
suitable) upon which such application is to be made and upon such date interest on
the amounts of principal to be paid on such date shall cease to accrue. The Trustee
shall give such notice as it may deem appropriate for the fixing of any such date.
The Trustee shall not be required to make payment to the Holder of any Bond unless
such Bond shall be presented to the Trustee for appropriate endorsement or for
cancellation as fully paid.
1204. Termination of Proceedings. In case any proceeding taken by the
Trustee on account of any Event of Default shall have been discontinued or
abandoned for any reason, then in every such case the Agency, the Trustee and the
Bondholders shall be restored to their former positions and rights hereunder,
respectively, and all rights, remedies, powers and duties of the Trustee shall
continue as though no such proceeding had been taken.
1205. Bondholders' Direction of Proceedings. Anything in this Indenture
to the contrary notwithstanding, the Holders of the majority in principal amount of
the Bonds then Outstanding shall have the right, by an instrument or concurrent
instruments in writing executed and delivered to the Trustee, to direct the method
of conducting all remedial proceedings to be taken by the Trustee hereunder;
provided that such direction shall not be otherwise than in accordance with law or
the provisions of this Indenture, and that the Trustee shall have the right to
decline to follow any such direction which in the opinion of the Trustee would be
unjustly prejudicial to Bondholders not parties to such direction.
1206. limitations on Rights of Bondholders. No Holder of any Bond shall
have any right to institute any suit, action or other proceeding hereunder, or for
the protection or enforcement of any right under this Indenture or any right under
law unless such Holder shall have given to the Trustee written notice of the event
60
of default or breach of duty on account of which such suit, action or proceeding is
to be taken, and unless the Holders of not less than twenty -five percent (25", of
the Bond Obligation shall have made written request of the Trustee after the right
to exercise such powers or right of action, as the case may be, shall have accrued,
and shall have afforded the Trustee a reasonable opportunity either to proceed to
exercise the powers herein granted or granted under law or to institute such
action, suit or proceeding in its name and unless, also, there shall have been
offered to the Trustee reasonable security and indemmnity against the costs,
expenses and liabilities to be incurred therein or thereby, and the Trustee shall
have refused or neglected to comply with such request within a reasonable time; and
such notification, request and offer of indemnity are hereby declared in every such
case, at the option of the Trustee, to be conditions precedent to the execution of
the powers under this Indenture or for any other remedy hereunder or under law. It
is understood and intended that no one or more Holders of the Bonds hereby secured
shall have any right in any manner whatever by his or their action to affect,
disturb or prejudice the security of this Indenture, or to enforce any right
hereunder or under law with respect to the Bonds or this Indenture, except in the
manner herein provided, and that all proceedings shall be instituted, had and
maintained in the manner herein provided and for the benefit of all Holders of the
Outstanding Bonds.
Anything to the contrary notwithstanding contained in this Section 1206, or
any other provision of this Indenture, each Holder of any Bond by his acceptance
thereof shall be deemed to have agreed that any court in its discretion may
require, in any suit for the enforcement of any right or remedy under the Indenture
or any Supplemental Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit of
an undertaking to pay the reasonable costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in any such suit, having due regard to the merits and
good faith of the claims or defenses made by such litigant; but the provisions of
this paragraph shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Bondholder, or group of Bondholders, holding at least twenty -five
percent (25'.) in principal amount of the Bond obligation, or to any suit instituted
by any Bondholder for the enforcement of the payment of the principal or Redemption
Price of or interest on any Bond on or after the respective due date thereof
expressed in such Bond.
1207. Possession of Bonds by Trustee Not Required. All rights of action
under this Indenture or under any of the Bonds, enforceable by the Trustee, may be
enforced by it without the possession of any of the Bonds or the production thereof
on the trial or other proceeding relative thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name and for the
benefit of all of the Holders of such Bonds, subject to the provisions of this
Indenture.
1209. Remedies Not Exclusive. No remedy herein conferred upon or reserved
to the Trustee or to Hol-de-Fsof—The Bonds is intended to be exclusive of any other
remedy or remedies, and each and every such remedy shall be cumulative and shall be
in addition to any other remedy given hereunder or now or hereafter existing at law
or in equity or by statute, including, upon the Event of Default, declaring all
61
Bonds due and payable, and if all defaults shall be cured, then, with the written
consent of the registered owners of not less than a majority in aggregate principal
amount of all Outstanding Bonds, by annulling such declaration and its
consequences.
1209. No Waiver of Default. No delay or omission of the Trustee or of any
Holder of the Bonds to exercise any right or power accruing upon any default shall
impair any such right or power or, shall be construed to be a waiver of any such
default or an acquiescence therein; and every power and remedy given by this
Indenture to the Trustee and the Holders of the Bonds, respectively, may be
exercised from time to time and as often as may be deemed expedient.
1210. Notice of Event of Default. The Trustee shall give to the
Bondholders notice of each (vent of Default hereunder known to the Trustee within
ninety (90) days after knowledge of the occurrence thereof, unless such Event of
Default shall have been remedied or cured before the giving of such notice;
provided that, except in the case of default in the payment of the principal,
Redemption Price, if any, or interest on any of the Bonds, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the
executive committee, or a trust committee of directors or responsible officers of
the Trustee in good faith determines that the withholding of such notice is in the
interests of the Bondholders. Each such notice of event of default shall be given
by the Trustee by mailing written notice thereof to all registered Holders of
Bonds, as the names and addresses of such Holders appear on the books of
registration and transfer of Bonds as kept by the Trustee.
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ARTICLE XIII
EXECUTION OF INSTRUMENTS BY BONDHOLDERS AND PROOFS OF
OWNERSHIP OF BONDS
1301. Evidence of Signatures of Bondholders and Ownership of Bonds. Any
request, direction, consent, revocation of consent, or other instrument in writing
required or permitted by this Indenture to be signed or executed by Bondholders may
be in any number of concurrent instruments of similar tenor, and may be signed or
executed by such Bondholders in person or by their attorneys or agents appointed by
an instrument in writing for that purpose or, in the case of Bonds, by any bank,
trust company or other depository of such Bonds. Proof of the execution of any such
instrument, or of any instrument appointing any such attorney or agent, and of the
holding and ownership of Bonds shall be sufficient for any purpose of this
Indenture (except as otherwise herein provided), if made in the following manner:
(1) The fact and date of the execution by any Bondholder or his
attorney or agent of any such instrument and of any instrument appointing any such
attorney or agent may be proved by delivery of a certificate, which need not be
acknowledged or verified, of an officer of any bank, trust company, or other
depository or of any notary public, or other officer authorized to take
acknowledgments. Where any such instrument is executed by an officer of a
corporation or association or a member of a partnership, on behalf of such
corporation, association or partnership, such certificate shall also constitute
sufficient proof of his authority.
(2) The ownership of registered Bonds shall be proved by the Band
Register held by the Trustee under the provisions of this Indenture.
Nothing contained in this Article shall be construed as limiting the Trustee
to such proof, it being intended that the Trustee may accept any other evidence of
the matters herein stated which it may deem sufficient. Any request or consent of
the Holder of any Bond shall bind every future Holder of the same Bond in respect of
anything done or suffered to be done by the Agency or the Trustee in pursuance of
such request or consent.
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ARTICLE XIV
DEFEASANCE
1401. Defeasance.
(A) If the Agency shall pay or cause to be paid, or there shall
otherwise be paid, to the Holders of the Bonds then Outstanding, the principal and
interest and Redemption Price, if any, to become due thereon, at the times and in
the manner stipulated therein and in this Indenture, then and in that event the
covenants, agreements and other obligations of the Agency to the Bondholders shall
be discharged and satisfied. In such event, the Trustee shall pay over or deliver
to all such Mortgagors all moneys or securities held by it pursuant to this
Indenture which are not required for the payment or redemption of Bonds not
theretofore surrendered for such payment or redemption. Such payments or
deliveries shall be pro rata based upon the unpaid principal balances of the
Mortgage Loans as shown in the most recently available reports from the Servicer.
Further, in such event, all Mortgage Loans then held by the Trustee shall be deemed
for all purposes to be then paid in full, and the Trustee shall enter on the face of
each applicable Mortgagor's promissory note a notation of such payment in full and
shall execute a request for full reconveyance applicable to each deed of trust,
shall deliver the promissory note and deed of trust to the Servicer and then shall
take such additional action as shall be necessary or convenient to vest title of
the applicable Residence in the Mortgagor free and clear of the lien of the
Mortgage Loan.
(B) Bonds or interest installments for the payment or redemption of
which moneys shall then be held by the Trustee (through deposit by the Agency of
funds for such payment or redemption or otherwise), whether at or prior to the
maturity or the redemption date of such Bonds, shall be deemed to have been paid
within the meaning and with the effect expressed in subsection (A) of this Section
1401. All Outstanding Bonds shall, prior to the maturity or redemption date
thereof, be deemed to have been paid within the meaning and with the effect
expressed in subsection (A) of this Section 1401 if (i) in case any of said Bonds
are to be redeemed on any date prior to their maturity, the Agency shall have given
to the Trustee, in form satisfactory to it, irrevocable instruction to mail as
provided in Article IV of this Indenture notice of redemption on said date of such
Bonds, (ii) there shall have been deposited with the Trustee either or both moneys
in an amount which shall be sufficient, or Federal Securities the principal and
interest on which when due will provide moneys which together with the moneys, if
any, deposited with the Trustee at the same time, shall be sufficient to pay when
due the principal or t,edemption Price, if applicable, and interest due and to
become due on said Bonds on and prior to the redemption date or maturity date
thereof, as the case may be, and (iii) in the event that said Bonds are not by their
terms subject to redemption within the next succeeding sixty (60) days, the Agency
shall have given the Trustee in form satisfactory to it irrevocable instructions to
mail, as soon as practicable, to all Bondholders as their names and addressed are
shown in the Bond Register a notice to the Holders of such Bonds that the deposit
required by (ii) above has been made with the Trustee and that said Bonds are deemed
to have been paid in accordance with subsection (A) of this Section 1401 and
64
stating such maturity or redemption date upon which moneys are to be available for
the payment of the principal or Redemption Price, if applicable, on said Bonds.
Neither Federal Securities nor moneys deposited with the Trustee pursuant to this
Section nor principal or interest payments on any such Federal Securities shall. be
withdrawn or used for any purpose other than, and shall be held in trust for, the
payment of the principal or Redemption Price, if applicable, and interest on said
Bonds; provided that any cash received from such principal or interest payments on
such Federal Securities deposited with the Trustee, if not then needed for such
purpose, shall, to the extent practicable, be reinvested in Federal Securities
maturing at times and in principal amounts sufficient to pay when due the principal
or Redemption Price, if applicable, and interest to become due on said Bonds on and
prior to such redemption date or maturity date thereof, as the case may be, and
interest earned from such reinvestments shall be paid over to the Agency as
received by the Trustea, `rye and clear of any trust, lien or pledge.
(C) Anything in this Indenture to the contrary notwithstanding, but
subject to the right of the Trustee to require the Agency to furnish an approving
opinion of counsel acceptable to the Trustee any moneys held by the Trustee in
trust for the payment and discharge of any of the Bonds which remain unclaimed for
four (4) years after the date when such Bonds have become due and payable, either at
their stated maturity dates or by call for earlier redemption, if such moneys were
held by the Trustee at such date, or for four (4) years after the date of deposit of
such moneys if deposited with the Trustee after the said date when such Bonds
became due and payable, shall, at the written request of the Agency, be repaid by
the Trustee to the Agency, free from trust, and the Trustee shall thereupon be
released and discharged with respect thereto and the Bondholders shall look only to
the Agency for the payment of such Bonds; provided, however, that before being
required to make any such payment to the Agency, the Trustee shall, at the expense
of the Agency, cause to be published at least twice, at an interval of not less than
seven (7) days between publications, in a newspaper of general circulation in the
City of Los Angeles, California, a notice that said moneys remain unclaimed and
that, after a date named in said notice, which date shall be not less than thirty
(30) days after the date of the first publication of such notice, the balance of
such moneys then unclaimed will be returned to the Agency.
65
ARTICLE XV
FORM AND EXECUTION OF BONDS
1501. Form of Bonds. Bonds in registered form, shall be of substantially
the following form and tenor with such additions thereto including but not limited
to, redemption schedules and prices, interest rates and place or places of payment,
all as otherwise provided for in this Indenture.
No
(FORM OF REGISTERED BOND OTHER THAN DEFERRED INTEREST BOND)
Rancho Cucamonga Redeveiopment Agency
[TO BE PROVIDED]
66
(FORM OF FACE OF DEFERRED INTEREST BOND)
Rancho Cucamonga Redevelopment Agency,
California
(TO BE PROVIDED]
67
ARTICLE %VI
MISCELLANEOUS
1601. Preservation and Inspection of Documents. All documents received by
the Trustee under the provisions of this Indenture shall be retained in its
possession and shall be subject at all reasonable times to the inspection of the
Agency, the Trustee, and, upon written request of not less than five percent (5 %)
in principal amount of the Holders of the Outstanding Bonds, Bondholders and their
agents and representatives, any of whom may make copies thereof.
1602. Destruction of Bonds. Any Bonds purchased or redeemed by the Trustee
under this Indenture shall be canceled by the Trustee. Whenever in this Indenture
provision is made for the cancellation by the Trustee and the delivery to the
Agency of any Bonds, including Bonds canceled under the first sentence of this
Section, the Trustee may, upon request of the Agency (evidenced by an Officer's
Certificate), in lieu of such cancellation and delivery, destroy such Bonds (in the
presence of an officer of the Agency, if the Agency shall so require), and deliver a
certificate of such destruction to the Agency.
1603. Parties of Interest. Nothing in this Indenture, expressed or
implied, is intended to or shall be construed to confer upon or to give any person
or party other than the Agency, the Trustee and the Holders of the Bonds any rights,
remedies or claims under or by reason of this Indenture or any covenants,
stipulations, promises, agreements or obligations hereof; and all covenants,
stipulations, promises, agreements and obligations in this Indenture contained by
or on behalf of the Agency shall be for the sole and exclusive benefit of the
Agency, the Trustee and the Holders from time to time of the Bonds.
1604. No Recourse Under Indenture or on Bonds. All covenants, stipula-
tions, promises agreements and obligations of the Agency contained in this
Indenture (as limited by Section 104) shall be deemed to be the covenants,
stipulations, promises, agreements and obligations of the Agency and not of any
member, officer or employee of the Agency in his individual capacity, and no
recourse shall be had for the payment of the principal or Redemption Price of or
interest on the Bonds or for any claim based thereon or on this Indenture against
any member, officer or employee of the Agency or any person executing the Bonds.
1605. Survival of Covenants. The obligations of the Agency under Section
806 shall survive resignation or removal of the Trustee under Article VIII and
payment and cancellation of the Bonds and defeasance pursuant to Section 1401.
1606, Severability. If any one or more of the covenants, stipulations,
promises, agreements orobligations provided in this Indenture on the part of the
Agency or the Trustee to be performed should be determined by a court of competent
jurisdiction to be contrary to law, then such covenant or covenants, stipulation or
stipulations, promise or promises, agreement or agreements, or obligation or
obligations shall be deemed and construed to be severable from the remaining
covenants, stipulations, promises, agreements and obligations herein contained and
shall in no way affect the validity of the other provisions of this Indenture.
68
1607. Headings. Any headings preceeding the text of the several Articles
and Sections hereof, and any table of contents or marginal notes appended to copies
hereof, shall be solely for convenience of reference and shall not constitute a
part of this Indenture, nor shall they affect its meaning, construction or effect'.
1608. Conflict. All resolutions or parts of resolutions, or other
proceedings of the Agency in conflict herewith shall be and the same are repealed
insofar as such conflict exists.
IN WITNESS WHEREOF, the Rancho Cucamonga Redevelopment Agency has caused
this Indenture to be signed on its behalf by the Chairman and attested by its
Secretary, and its corporate seal to be hereunto affixed; and
has caused this Indenture to be signed on its behalf, in
its corporate name, by one of its Assistant Vice Presidents, all as of the date and
year first above mentioned.
Attest
ry
RANCHO CUCAMONGA REDEVELOPMENT AGENCY
BY
rman
Assistant Ti ce President
69
(S EA L)
(S E A L)
ff
MARKET DEMAND STUDY FOR
SINGLE- FAMILY RESIDENTIAL
MORTGAGE REVENUE BONDS FOR
RANCHO CUCAMONGA
ISSUE OF 1983
(Draft)
EXECUTIVE SUMMARY
Prepared
for
Rancho Cucamonga
by
Empire Economics
Joseph T. Janczyk, Ph.D.
December 1982
EXECUTIVE SUMMARY
INTRODUCTION
Background
Rancho Cucamonga, based upon its concerns about the adverse
impacts that high levels of mortgage interest rates are having on
the affordability of housing, is attempting to resolve this
crisis through the use of mortgage revenue bonds. Since the
interest paid on the mortgage revenue bonds is tax - exempt (in the
opinion of Bond Counsel), the mortgage rates for households in
the program are expected to be significantly lower than FHA /VA or
conventional market rates. Consequently, many households that
are presently excluded from the housing market will, through the
lower interest rate that this program offers, be able to qualify
for loans, and thus purchase housing. Furthermore, the
development of these projects will generate employment
opportunities in the construction sector that will directly
benefit Rancho Cucamonga's citizens as well.
Purpose
The purpose of the market demand study is to perform a
comprehensive analysis of all of the various demographic,
economic, financial, and other housing - related factors that will
influence the demand for housing in Rancho Cucamonga during the
1983-85 period. Furthermore, this demand will be adjusted for
the special federal and state criteria that purchasers must
fulfill to qualify for the use of the mortgage revenue bond
funds. The study will commence with a general review of the
recent dynamic growth of San Bernardino County, as a whole, and
then proceed, in a systematic fashion, with the economic base
analysis as well as the housing market demand and supply factors
for each of the market regions, to arrive at the optimal
portfolio of projects that will maximize the success of the
Rancho Cucamonga mortgage revenue bond program.
Methodology
The market demand study will be based upon Empire Economics'
comprehensive data bank of demographic, economic, and housing
market conditions in San Bernardino County, in general, and
Rancho Cucamonga, in particular. While the data used in analysis
have been carefully reviewed in terms of accuracy and
reliability, they are not guaranteed as being such. Furthermore,
the economic and housing demand forecasts are based upon what is
presently regarded as being the most probable scenarios for the
future. However, the forecasts are not guaranteed since actual
events may vary significantly from this scenario, based upon a
variety of factors which are difficult to predict due to their
high degree of uncertainty.
Market Areas
Based upon a consideration of the demographic and economic
factors that will influence the success of the Rancho Cucamonga
mortgage revenue bond program, four market areas have been
delineated:
Los Angeles Metropolitan Region: The Los Angeles regional
economy includes not only Los Angeles County but also San
Bernardino - Riverside and Orange counties as well. While most of
the economic activity is concentrated in Los Angeles County,
there has been a substantial spillover of its economic activity
to San Bernardino- Riverside and Orange counties since 1970.
San Bernardino- Riverside Counties: Although San Bernardino
and Riverside are politically distinct, they are economically
interdependent and closely inter - related. Additionally, since
many statistics, such as those on employment, are published only
on a bi- county level, this facilitates various types of
statistical analysis as well.
San Bernardino County: This includes all of the various
cities communities within the geographical boundaries of the
county. While the mortgage revenue program is designed solely
for projects that are in Rancho Cucamonga, it is important to
consider the changes in economic and demographic factors in the
other areas as well, because there is a close inter - relationship
between these and Rancho Cucamonga.
Regional Markets: The western San Bernardino County area is
partitioned into various regions, according to their particular
demographic and economic characteristics, as follows:
Western Region: Upland, Ontario, Chino and Montclair
Central Region: Rancho Cucamonga
Eastern Region: Fontana and Bloomington
For additional information on the boundaries of the various
market areas, refer to Map A.
THE DYNAMIC GROWTH OF SAN BERNARDINO COUNTY
DURING THE PAST DECADE
During the past decade, San Bernardino County's dynamic growth
has placed it among the fastest growing counties in the state of
California. 4ccordi.ngly, the recent demographic, economic, and
housing market trends in the county are now reviewed, as a
background for the subsequent analysis, since these trends will
influence the marketability of the projects in the Rancho
Cucamonga mortgage_ revenue bond program.
The population of San Bernardino County, based upon the
1980 Census, amounted to some 893,000, an increase of
some 77% from 1960, and an increase of 31% since 1970.
According to the California Department of Finance, the
population of San Bernardino County increased by over
54 from mid -1980 to m4d -1981, to a 'level of 943,500.
During the past decade, employment in the San.
Bernardino- Riverside SMSA experienced significant
growth, attaining a record level of 453,000 in 1981.
This represents an increase of some 123,000 full -time
positions since 1972. The growth rate amounts to 37%
over the decade, or almost 4% annually.
The magnitude of housing activity in San Bernardino
County increased dramatically to an average level of
10,000 units annually during the 19701s, as compared to
an average level of less than 7,500 units annually
during the 19601s. Furthermore, most of this growth
has occurred recent'' -y: housing activity amounted to
12,850 units annually over the 1976 -81 period, almost
twice the level of 6,600 units annually during the
1970 -75 period.
Therefore, San Bernardino County, as a whole, has demonstrated a
dynamic rate of population growth as well as substantial
employment and residential growth over the past decade,
especially during the 1976 -81 period. The prospects for a
continuation of this depends upon the growth potential of San
Bernardino County's economic bases during the 19801s.
Accordingly, their growth prospects are assessed, since this will
determine the magnitude of housing demand and hence the
absorption of the projects in the Rancho Cucamonga mortgage
revenue program.
RECENT TRENDS AND FUTURE PROSPECTS FOR THE
EECONOMIC BASES UNDERLYING GROWTH IN SAN BERNARDINO COUNTY
Types of Economic Bases Underlying Growth
The future population and employment growth of San Bernardino
County, as a whole, and the western, Rancho Cucamonga, and
eastern regions, in particular, can be systematically related to
the growth of their primary sector, and the impact of this upon
the support sector. The primary sector represents the economic
base of the local economy: this is the "means" by which money is
injected into the local economy. While the economic base
typically consists of manufacturing firms that generate
employment locally, there are other facets of the economic base
as well. For instance, households that establish their
residences in a particular area but are employed outs' de of the
area are considered to be part of the area's economic base, since
they bring money into the local economy jus- as manufacturing
industries. Thus, both, of these are considered to be components
of the economic base or primary sector.
The primary sector, in turn, has a multiplier impact upon the
support sector. Specifically, households in the primary sector
bring money into the local economy, and through their
expenditures on retail products, professional services, housing,
etc., generate employment positions in the support sector.
Therefore, the composition of the primary sector, in terms of
local employment and commuters, along with its multiplier impact
on the support sector, must be assessed carefully to determine
the future population and employment growth that will occur in
San Bernardino County and Rancho Cucamonga during the 1990's.
Employment Trends by Economic Sector
The economic base analysis involves a comparison of the
employment growth in the primary and support sectors. The primary
sector is comprised of all of the firms and government
establishments that form the economic base, while the support
sector consists of those firms and government establishments that
are economically and functionally dependent upon the primary
sector. Specifically, the components of the primary and support
sectors are as follows: The primary sector includes industry
(durable and non durable manufacturing), government (federal and
state), decentralized industry (transportation and wholesale
trade), and agriculture. The support sector includes commercial,
financial, professional services, government (city and county as
well as school districts), public utilities, and construction.
The proportion of employment in the support as compared to the
primary sector reveals the specific inter - relationship between
these two sectors. This relationship is determined using
location quotients, which show the employment in the primary or
secondary sector as a percentage of total employment. For the Los
Angeles metropolitan regional economy, the location quotient for
the support sector is some 55% while the location quotient for
the primary sector is some 45 %, for the 1976 -81 period as a
whole. This results in a ratio of 1.20 for employment in the
support relative to the primary sector. Consequently, for each 45
employment positions in the primary sector, there are an
additional 55 employment positions in the support sector. For
instance, if a new manufacturing firm locates in the region and
hires some 45 new employees, then these employees, through their
expenditures, will generate an additional 55 positions in the
support sector. By comparison, the ratio of employment in the
support - primary sectors is 1,31 for San Bernardino - Riverside
counties, 1.28 for Orange County, and 1.17 for Los Angeles
County.
Recent trends in the ratio of employment in the support.- primary
sector are determined using a shift -share analysis, i,e., an
analysis of the recent employment changes in the primary and
support sectors for each of the counties relative to the recent
employment change for the Los Angeles metropolitan region as a
whole, as compared to San Bernardino - Riverside counties, over the
1975 -75 to 1980 -81 period. For the Los Angeles metropolitan
region, employment increased by 932,300 positions during this
period: 588,000 positions in the support sector and 744,300
positions in the primary sector. So the incremental or new
employment over this period has a support- primary ratio of 1.71.
The support- primary ratio for San Bernardino Riverside counties
was 2.71 which is significantly above the Los Angeles region.
The location quotient and shift -share analysis of the support -
primary employment ratios has revealed that San Bernardino-
Riverside counties' ratio has been significantly above that of
the Los Angeles metropolitan region as well as that of Los
Angeles and Orange counties. Consequently, while local
industrial and government (federal and state) employment growth
has contributed to San Bernardino - Riverside counties' recent
growth, another facet of primary sector has also contributed
significantly as well. Specifically, this includes commuters
who reside within San Bernardino - Riverside counties but are
employed elsewhere. So commuters are considered to be part of the
primary sector because they effectively bring money into the San
Bernardino- Riverside counties from outside of the counties.
Hereafter, they are referred to as non -local employees because
they have the same economic impact as employees in local
industries, except that their income is derived from non -local
sources.
The statistical analysis of these trends revealed that employment
growth in the primary sector during the 1976 -8? period amounted
to 42,335 primary employment positions within San Bernardino -
Riverside counties: 26,700 local and 15,635 non -local employment
positions. So, of the positions in the primary sector, 634 are
local while 374 are non - local. Finally, a comprehensive analysis
of the growth prospects of the various economic bases for western
San Bernardino County, as a whole, and Rancho Cucamonga, in
particular, demonstrated that the prospects for continued growth
of local industry and spillover from Los Angeles will he strong
during the 1980's.
Forecast of Population Growth
The forecast of population growth for western San Bernardino
County and also Rancho Cucamonga involves a consideration of the
following: the specific share of San Bernardino - Riverside
counties growth that will occur in western San Bernardino County
and Rancho Cucamonga, the growth path of the primary sector
employment, and the transformation of the primary sector growth
into population and household growth during the 1982 -90 period.
The market share of San Bernardino County amounts to 524 of all
the building activity in San Bernardino- Riverside counties. The
market share for the western San Bernardino area is 444 of all
the activity in San Bernardino County. 'di$hin western San
Bernardino County, the market share for the Rancho Cucamonga
region is 294 while the market shares for the western and eastern
regions amount to 54% and 16 %, respectively.
While the growth patterns for primary employment in each of the
western San Bernardino County regions during the early 1980's are
expected to be predominantly a continuation cf their recent
trends, their growth patterns during the latter 1980's are
expected to more closely resemble that of Orange County during
the later 1970's. The shift toward Orange County's pattern in the
mid- to latter- 1980's will reflect the maturation of industrial
development in western San Bernardino County. So,the most
probable growth for the primary sector in western San Bernardino
County amounts to 1,959 primary sector employment positions in
1982 and this increases during the 1980's reaching 2,277 new
Positions in 1990.
The population growth for western San Bernardino County as well
as the Rancho Cucamonga region can now be forecasted for the
1982 -90 period, based upon the most probable growth scenario for
the primary sector. First, the annual growth in total
employment, including local and non - local, is derived by adding
the employment growth in the primary sector to the employment
growth in the secondary sector, which is derived using the ratio
of support - primary sector employment of 1.71, and then
multiplying this total by the ratio of total employment to wage
and salary employment, 1.33• (Note: The multiplication by 1.33
is necessary to make an adjustment for self - employed people,
since the prior data cover wage and salary employment only.)
Next, population growth is derived using the proportion of the
population that is employed. The population of the Los Angeles
metropolitan region was divided by the total employment in the
region, based upon 1980 Census data, to derive the
population /employment ratio of the region of 2.21, i.e., there
are 2.21 people for each employment position. Finally, the
number of new households is derived by dividing the population by
the average household size of 2.77 people per household for San
Bernardino - Riverside counties. The number of new households also
represents the demand for housing. Based upon this methodology,
the demand for new housing in western San Bernardino County
amounts to 5,630 units in 1982 and increases to 6,541 units in
1990, and has an average of 6,085 units annually during the 1982-
90 period. The demand for new housing in the Rancho Cucamonga,
western and eastern regions averages some 1,779, 3,304 and 1,003
units annually, respectively, over the 1982 -90 period. For
additional information on employment, population, and household
growth or housing demand for western San Bernardino County and
Rancho Cucamonga as well as the western and eastern regions,
refer to Table 1.
DEMAND FOR HOUSING By
QUALIFIED PURCHASERS
The magnitude of housing demand by qualified purchasers is now
derived. First, the demand for new 'housing in the various
regions within western San Bernardino County is forecasted for
the 1083 -85 period, along with a breakdown of this demand by
product type and price range. Then, modifications to this demand
are made, based upon the various criteria that purchasers in the
mortgage revenue bond program must fulfill.
Housing Demand
The housing demand forecasts for western San Bernardino County
and also Rancho Cucamonga were derived, in the section above,
through an economic base analysis of coon of the regional
economies, along with the inter - relationships of the primary
sector employment to total employment, population and household
size. The results are as follows: For western San Bernardino
County, housing demand for newly constructed units amounts to an
average of some 5,800 units annually during the 1982 -85 period.
(Note: The demand for 1982 is included since the relatively high
levels of mortgage rates during 1982 resulted in a substantial
amount of pent -up demand.) For the Rancho Cucamonga region,
housing demand will average some 1,695 new units annually while
the western and eastern regions will have an average annual
housing demand of 3,149 and 956 units, respectively.
Next, the distribution of demand for various housing market
product types !s determined. The housing product types are
as follows: Detached units include entry - level, generally priced
around $80- 100,000; move -up, priced from $100 - 175,000 and custom,
priced above $175,000. Attached units include condos, priced
around $45- 55,000, condominiums, priced from $55- 65,000 and
townhomes, generally priced from $65- 80,000. The market shares
for each of the product types are based upon their market
absorption patterns for over the past several years. This time
period is chosen since it covers the most recent regional
economic cycle and also because it is lengthy enough to mitigate
the impact of annual statistical aberrations. The market shares
for detached units amounts to 761 in the Rancho Cucamonga region,
56% in the western region and 62% in the eastern region. While
the market shares for attached units amount to 21 %, 40 %, and 27%
for the Rancho Cucamonga, western and eastern regions,
respectively. The remaining portions of the market shares for
each region are for apartments.
By applying the product market shares to the forecast of regional
housing demand over the 1983 -85 period, the demand by product -
type is determined. The annual average demand for detached
housing products in the Rancho Cucamonga, western, and eastern
regions amount to 1,288, 1,764, and 593 units, respectively.
While the annual average demand for attached units amounts to 356
in the Rancho Cucamonga region, 1,260 in the western region
and 258 in the eastern region.
Demand by Qualified Purchasers
The Mortgage Revenue Bond Subsidy Act of 1980, Tax Equity and
Fiscal Responsibility Act of 1982, and Senate Bill #99
require that purchasers of housing under the mortgage revenue
bond program fulfill certain criteria, in order to ensure that
these funds are used properly. While some exemptions to the
criteria are allowed in targeted areas, there are no projects in
Rancho Cucamonga's mortgage revenue bond program located in such
areas, so these exemptions do not apply to the projects in the
program. Accordingly, the above forecasts of housing demand are
now adjusted for these special criteria, in order to arrive at an
accurate estimate of the magnitude and composition of housing
demand for projects in the Rancho Cucamonga mortgage revenue bond
program.
Federal Criteria
The maximum price for the housing units may not exceed 110% of
the average price for housing in the region. Based upon a
special study by Empire Economics, the average price for new
housing units in the San Bernardino - Riverside SMSA is estimated
to be $92,174: 110% of this amounts $101,391. For existing
housing units, the average price is $78,578: 110% of this is
$86,438. Consequently, the maximum price that applies to each of
the housing units in the program is $101,391 and $86,438 for new
and existing housing units, respectively. However, this criteria
is modified for targeted areas, also referred to as qualified
census tracts. Specifically, the allowable prices in such areas
are up to 120% of the median price for the San Bernardino -
Riverside SMSA. Consequently, the maximum housing prices are
$110,609 and $94,294 for new and existing units, respectively.
The maximum price criteria will have the following impacts on
housing demand. For non - targeted areas, the move -up and custom
market segments for detached units will not qualify for the
program, since their homes are generally priced above $100,000.
So only the entry -level purchasers will qualify in non - targeted
areas. While for targeted areas, a portion of the first -tier of
the move -up market segment will also qualify, since the maximum
price of units in these areas can be up to $110,609.
Additionally, in all cases, all of the attached products will
qualify.
"New" Homeowner: The "new" homeowner requirement means that
90% of the purchasers in the mortgage revenue bond program may
not have been homeowners at any time within the prior three
years. In general, most of the purchasers would fulfill this
requirement, since the housing products must be priced at less
than $100,000. Accordingly, for each region, the proportion of
purchasers that would fulfill this requirement (given the 10%
non -first time buyer allowance) is estimated, based upon the
profiles of the purchasers. -.
Owner Occupancy: The owner occupancy requirement means that
the purchaser must have the intention of residing in the housing
unit for a least two years after purchasing the unit. The above
adjustment for "new" homeowner automatically results in the
fulfillment of this criteria, since it eliminates investors, and
this leaves only those purchasers that are owner occupants.
Summary: The housing demand forecasts are now modified for
the criteria that purchasers must fulfill, by applying the
proportion of purchasers that qualify to the prior forecasts of
housing demand. The modified annual average demand forecasts for
the 1983 -85 period are as follows: 481 units annually in the
Rancho Cucamonga region, 1,501 units annually in the western
region and 548 units annually in the eastern region. So the
demand by qualified purchasers in western San Bernardino County
as a whole amounts to an average of 2,529 units annually over the
1983 -85 period.
State Criteria- Supplemental Funds
According to Senate Bill #99 , the maximum income for
purchasers in the mortgage revenue bond program is not allowed to
exceed a designated proportion of the median income level for
households or families. Specifically, Senate Bill #99
specifies three alternative measures of median income, as
follows: (1) statewide median household income; (2) county -wide
median household income; and (3) median family income for an area
(such as an SMSA) as determined by the Department of Housing and
Urban Development.
The three measures of median income for 1982 are as follows:
$23,868 for the statewide households, $22,516 for San Bernardino
County households, and $25,887 for San Bernardino - Riverside
families. Since the San Bernardino- Riverside SMSA median income
for families is the highest of the three, it is selected as the
measure of median income for the Rancho Cucamonga revenue bond
program. Next, the annual adjustment factors of 7 %, 8%, and 8%
for 1983, 1984, and 1985, respectively, were applied to the 1982
median income levels to derive the median incomes for 1983, 1984,
and 1985. Purchasers in the program can have up to 120% of the
median income level, if they are given supplemental funds.
So, the maximum income for purchasers with supplemental funds is
$33,239, $35,898, and 38,770 in 1983, 1984, and 1985,
respectively. There are no maximum income limits for the
purchasers that use entitlement funds. The number of households
that would qualify for housing under the mortgage revenue bond
program, i.e., not exceed the maximum income limit, is estimated
from an income distribution of households in the San Bernardino -
Riverside SMSA. Specifically, the number of households that
could qualify for housing in the
$45- 100,000 price range is estimated, given the following
conditions: a mortgage rate of 12 %, a downpayment of 5% and 'a
loan amortized period of over 30 years. The number of households
that could qualify for a loan under these conditions amount to
828 or some 49% of t'he total annual average demand in Rancho
Cucamonga for 1,695 housing units.
Conclusions
Therefore, the demand for housing in western San Bernardino
County has been adjusted for the various federal (maximum
purchase price and new homeowner) and state (maximum income)
criteria applying to purchasers. The average demand by qualified
purchasers in the western San Bernardino county during the 1983-
85 period amounts to 2,529 units annually, and this is
distributed in the following manner: 481 units annually in the
Rancho Cucamonga region, 1,501 units annually in the western
region, and 548 units annually in the eastern region. For further
information on the demand by qualified purchasers, including its
distribution by product type, refer to Table 2.
COMPETITIVENESS OF THE PROJECTS
IN THE MORTGAGE REVENUE BOND PROGRAM
Having established that housing demand by qualified purchasers
will be strong during the 1983 -85 period, the study now turns to
an analysis of the competitiveness of the projects in the Rancho
Cucamonga mortgage revenue bond program, as compared to the
projects that are not participating in the program, especially in
terms of the financing that they offer.
Supply of Housing
The Rancho Cucamonga region presently has an unsold inventory of
some 138 units: 10 detached and 128 attached. Of these, some 10
attached units offer special 30 year financing. These units are
in San Bernardino County's 1982 mortgage revenue bond program,
and have mortgage rates of 13.5 %. The western region, which
includes Ontario, Montclair, and Chino, currently has an unsold
inventory of 203 units: 42 detached and 161 attached. Of these
units, some 55 attached have special 30 year fixed rate
financing, since they also participated in San Bernardino
County's and Ontario's 19822 mortgage revenue bond program.
(Note: The Ontario mortgage revenue program had a total of 11
projects with 531 units; however, some of these have not yet
begun to market their units, so they are not reflected in the
above statistics.) The eastern region presently has an unsold
inventory of 119 units; 76 detached and 43 attached. Of these,
68 offer special 30 year financing at about 13.5 %, since they
participated in San Bernardino County's mortgage revenue bond
program.
one
Competitiveness of Projects
To determine the competitiveness of the projects in the Rancho
Cucamonga mortgage revenue bond program with the projects not
participating in the program, an evaluation was made of the
locations, product types, features, and amenities of the projects
that are on the market presently. In general, the particular
factor that emerged as the key determinant of a project's
competitiveness is the financing that it offers. Specifically,
the projects surveyed offer prospective purchasers a large array
of financing options, including 30 -year fixed rates (conventional
and FHA /VA) adjustable rate mortgages, various forms of 3 -7 year
buy - downs, loans with balloon payments, etc. Based upon an
analysis of the absorption rates of these projects over the past
year according to their various types of financing plans, two
distinct project groups emerged. The first consists of projects
that offer 30 -year fixed rates that are at or below 13.5 %; this
group is experiencing an absorption rate that is significantly
above the market average for all projects. The second group is
comprised of projects that offer prevailing rates or some other
type of creative financing; this group is experiencing an
absorption rate that is below the market average. Consequently,
the relationship between the financing or mortgage rate and the
absorption rate of a project is now analyzed, to determine the
competitiveness of projects in the Rancho Cucamonga mortgage
revenue bond program, as compared to the non - participating
projects.
General Demand Function of Housing
The demand for housing involves an analysis of the price of
housing and number of housing units purchased at each price. The
"true- price" of housing is based not only upon the market price
of the housing units but also upon numerous other factors as
well, such as the level of mortgage rates and tax deductions, the
tax deductibility of interest payments, among other factors. The
analysis of the "true- price" of housing and the level of housing
demand for California, as a whole, reveals that they follow the
basic law of demand: as the "true- price" increases, the number
of housing units demanded declines, and vice versa. Given the
average "true- price" and the average number of housing units over
the 1970 -80 period, the following relationship emerges: each 1%
decrease in the "true- price" generates a 1% increase in
absorption, and vice versa. This relationship is utilized to
determine the impacts of alternative financial scenarios on
housing prices and absorption rates.
Housing Prices and Absorption
Under Alternative Intevest Rate Scenarios
Although the mortgage rate offered by projects in the Rancho
Cucamonga mortgage revenue bond program has not yet been
established, the mortgage rate is presumed to be 11 % -12% for
pupose of the following analysis. By comparison, the market
FHA /VA or conventional rates may be either above or below this
level during the 1983 -85 period. Consequently, it is necessary to
assess how this may affect the absorption of projects
participating in Rancho Cucamonga mortgage revenue bond program.
Accordingly, the inter - relationships between housing prices and
absorption rates under various financial scenarios are now
analyzed. The following analysis is based upon the assumption
that the prevailing market mortgage rates would have to rise
above 12% before the projects in the mortgage revenue bond
program would realize a competitive financing advantage.
The above analysis of the "true - price" of housing and the
quantity of housing demanded revealed that if the absorption rate
for housing is to be maintained at a particular level, then the
monthly payment must remain constant. Consequently, if mortgage
rates should increase above 12 %, then the non - participating
projects would have to reduce their housing prices, to keep the
monthly payment levels, and hence their market absorption shares,
constant. Accordingly, the optimal housing prices for households
in each income group were derived for interest rate scenarios of
10% to 18 %, and the primary findings are as follows: If market
interest rates should rise from 12% to 74%, then the non-
participating projects would have to reduce their housing prices
by 13% to maintain their market absorption shares. However, such
a substantial price reduction is unlikely, so their market
absorption shares would decline significantly. Consequently, as
prevailing market mortgage rates increase above 12 %, then the
market absorption shares for projects in the mortgage revenue
bond program increases commensurately. For additional
information on the housing prices under alternative interest rate
scenarios, refer to Table 3.
Next, the analysis focuses upon the changes in absorption rates
that can be expected if housing prices remain constant when
interest rates change. An absorption rate of one hundred units
per year is used as a reference point. As expected, the impact
of higher prevailing market mortgage rates results in an increase
in monthly payments and hence a decline in absorption : from 100
units per year at 12% to 87 units per year at 14% and 76 units
per year at 16 %. Consequently, as the prevailing market mortgage
rates increase, then the projects that are participating in the
mortgage revenue bond program will experience higher absorption
rates, since their mortgage rates remain fixed at the original
level. Additionally, the housing products that households would
purchase under alternative financial scenarios were determined,
under the assumption that the prices of the housing products
remain constant. As expected, higher levels of mortgage interest
rates result in more and more households being forced to shift to
more economical housing products, such as townhomes and
condominiums as well as apartments.
Therefore, the potential impact that higher prevailing market
mortgage rates will have on the absorption of residential
projects in the mortgage revenue bond program depends upon the
differential between the market FHA /VA and conventional mortgage
rates as compared to the expected mortgage revenue bond rate of
12
some 11 % -12 %. For instance, if FHA /VA and conventional mortgage
rates rise to 14% then the market absorption shares of the
projects in the program will increase by some 13 %. If the
prevailing market mortgage rates should average 16 %, then the
market share absorption rate of projects in the program would
increase by 24 %, if the.housing prices of the non - participating
remained constant. In the event that the market FHA /VA and
conventional mortgage rates decline to 12% or less, then the
absorption rate of the projects in the mortgage revenue bond
program would be similar to that of the non - participating
projects. ..
Residential Arojects in Other
Mortg— age revenue Bond Programs
The Mortgage Bond Allocation Committee of the State of California
allocates the state's mortgage revenue bond funds among various
cities and counties in California. So, it is possible to
determine the specific cities /counties that may offer mortgage
revenue bond issues in the near future. Within San Bernardino
County, the only new mortgage revenue bond programs expected for
1982 is San Bernardino City. For 1983, San Bernardino County,
Ontario, and Montclair are expected to have mortgage revenue bond
programs. Finally, although Riverside County is expected to have
a mortgage revenue bond program in 1982, and Corona is expected
to have a program in 1983s -the projects in these program are not
considered to be competitive with those in Rancho Cucamonga's
issue, due to the distance between them.
OPTIMUM PROJECT PORTFOLIO
FOR THE RANCHO CUCAMONGA
MORTGAGE REVENUE BOND PROGRAM
The above findings on the expected population and employment
growth as well as the market demand and supply conditions in the
Rancho Cucamonga market area are now all utilized to derive the
optimal project portfolio for Rancho Cucamonga's mortgage revenue
bond program.
Description of the Candidate Projects
The participants in the Rancho Cucamonga mortgage revenue bond
program consists of two major developers: The William Lyon
Company and Marlborough Development Corporation. The William
Lyon Company's project is Victoria Village, a master planned
community that will feature a diversity of residential land uses.
There are four residential projects (tracts) within Victoria
Village that are in the mortgage revenue bond program. While all
of these projects offer single - family detached units, there are
variations in their prices and also the sizes of their housing
products. Specifically, Tract #11934 has 74 housing units in the
,u
bond program priced at $61,990 - $67,990 with 762 -915 square feet
of living area. Tracts 912044 -5 have 156 housing units in the
program priced at $72,990- 83,990 with 857 -1,150 square feet of
living area. Finally, Tracts 912044 -6 have 71 housing units
priced at $98,950 with 1,366 square feet of living area. Thus,
The William Lyon Company, has 286 housing units in the program,
and the mortgages on these units are expected to amount to
$20,048,000. Marlborough Development Corporation's Project will
offer townhomes priced at $75,990 - 89,990 with 936 -1,450 square
feet of living area. The project will also have a copious
amenity package including a recreation building, a large swimming
pool as well as spa and tennis court complex, and also two
satellite facilities consisting of swimming pools and spas.
There are some 129 units in the mortgage revenue bond program,
and their mortgages are expected to amount to $10,000,000. For
additional information on the projects, refer to Table 4.
Optimum Project Portfolio
The optimum project portfolio for the Rancho Cucamonga mortgage
revenue bond program was derived through the following algorithm:
Rancho Cucamonga's housing demand by qualified
purchasers was derived through a consideration of its
expected population and employment growth along with
adjustments for the various criteria that purchasers
must fulfill. The results of this analysis
demonstrated a demand for 203 detached and 191 attached
(priced above $60,000) housing units annually.
The competitive market analysis of the other projects
in the area revealed that the primary determinant of a
project's absorption rate is the financing that it
offers. Specifically, San Bernardino County and the
city of Ontario recently had mortgage revenue bond
issues, and the projects in these programs offer 30
year fixed rate mortgage of 13.55. Furthermore,
projects that offer FHA /VA financing are also
competitive presently, since the FHA /VA rate is at 125;
however, the competitiveness of the projects would
diminish if FHA /VA rates increase. Within the city of
Rancho Cucamonga, there are only two comparable
projects presently on the market: Haven Ridge by
Chevron Construction offers single - family detached
units priced from $89,000- 102,000 with either FHA /VA or
conventional financing. Rancho Villas offers attached
units priced from $76- 86,000 with FHA /VA or bond
financing at 13.55. Finally, Rancho Heights is
expected to offer duplexes priced at $76- 80,000 with
bond financing. Turning to the city of Ontario, which
is located just south of Rancho Cucamonga, there are a
total of 11 projects with 531 units in the Ontario bond
program, and 30 they have bond financing at 13.55.
Thusfar, only 6 of these projects have entered the
market, and they are offering primarily attached
14
housing products in the $65- 80,000 price range. For
additional information on the projects in the Ontario
and San Bernardino County mortgage revenue bond
programs, refer to Tables 5 and 6, respectively.
* The required capture rates for the absorption of the
projects in the Rancho Cucamonga mortgage revenue bond
program can now be determined based upon the above
market demand and supply conditions. The Willaim Lyon
Company and Marlborough Development Corporation have
212 detached and 203 attached housing units. (Note:
The Willaim. Lyon Campauy's homes in Tract 811934 are
treated as attached housing products due to their high
land use density,l.e., 8.2 units per acre,) Next, the
demand by qualified purchasers for 203 detached and 191
attached units is reduced by the unsold inventory of
housing units in competitively financed projects to
arrive at a conservative estimate of the net demand by
qualified purchasers - ,The only projects that are
presently regarded as offering competitive financing
are those that are located in Rancho Cucamonga and have
FHA /VA financing. The projects in the Ontario and San
Bernardino County mortgage revenue programs are not
regarded as being competitive since their financing
rate is 13.5 %, as compared to an expected 11 -12%
mortgage rate foe the Rancho Cucamonga mortgage revenue
bond program.` ^" Sin6e there-are only 4,detaehed and 10
attached unsold units. in Rancho Cucamonga with FHA /VA
financing, the next adjusted demand amounts to 199
detached units and 181 attached units. Comparing the
number of detached and attached units in the candidate
projects with the net demand by qualified purchasers
reveals the require capture rate for the complete
absorption of the housing products within a two year
period is 53% for the detached units and 45% for the
attached units. For additional information, refer to
Table 7.
Conclusions
Therefore, based upon a "comprehensive analysis of Rancho
Cucamonga's expected demographic - economic trends and housing
market demand - supply conditions as well as the characteristics
of the William Lyon Company and Marlborough Development
Corporation projects, we conclude that the housing products in
the Rancho Cucamonga mortgage revenue bond program can be
absorbed within an 18 -24 month period.
Joseph T. Janczyk, Ph.D.
Empire Economics
/c
H 00.1
ojz 0
16
TABLE 1
FORECAST OF THE GROFTH OF HOUSEHOLDS IN THE
WESTERN SAN BERNARDINO AREA
d 17
k.
WESTERN
RANCHO
EASTERN
WESTERN
REGION
CUCAMONGA
REGION
SAN.BERN.
1982
3057
1645
928
5630
1983
3119
1679
946
5744
1984
3180
1712
965
5857
1985
3242
1745
984
5971
1986
3304
1779
1003
6085
1987
3366
1812
1021
6199
1988
3428
1845
1040
6313
1989
3490
1878
1059
6427
1990
3552
1912
1078
6541
TOTAL
29737
16007
9024
54769
ANNUALLY
3304
1779
1003
6085
d 17
k.
TABLE 2
HOUSING DEMAND FOR WESTERN SAN BERNARDINO COUNTY
WITH MODIFICATIONS FOR FEDERAL CRITERIA
----------------------------------------------------------------------
RANCHO
WESTERN
PRODUCT TYPE:
WESTERN
CUCAMONGA
EASTERN
SAN.BERN.
----------------------------------------------------------------------
REGION
REGION
REGION
COUNTY
DETACHED:
ENTRY -LEVEL
485
203
323
"Oil
MOVE -UP 111
0
0
0
0
MOVE -UP 112
O
0
0
0
CUSTOM
0
0
0
0
TOTAL
485
203
323
1011
ATTACHED:
---- - - - - --
CONDO
157
.0
96
253
CONDOMINIUM
268
86
65
419
TOWNHOME
591
191
65
846
TOTAL
1016
277
225
1518
APARTMENTS
0
0
0
0
AGGREGATE:
---------------`---_---_--____----_-_-----
1501
481
548
----- -------------------
2529
----
18
TABLE 3
MAXIMUM HOUSING PRICES UNDER ALTERNATIVE INTEREST RATE SCENARIOS
(ABSORPTION RATE REMAINS CONSTANT)
_________________________________________________________________________________________
AVERAGE
INTEREST RATE
SCENARIOS
_______________________________
QUANTITY
INCOME
MONTHLY
___________________________________________________________
_______________________________
DEMANDED!
GROUP
PAYMENT
Iox
112
122
132
142
152
162
172
182
RANCHO
CODE
(1482)
CUCAMONGA
A
$ 69.29
$ 8773
$ 8082
S 7486
$ 6962
$ 6497
$ 6090
$ 5724
$ 5399
S 5107
0
3
180.17
22813
21017
19467
18103
16893
15635
14884
14040
13249
0
261.94
}3167
30556
28302
26319
24561
23023
21639
20412
19306
186
0
325.97
41 ?75
38025
35221
32753
30565
28651
26929
25402
24026
68
E
357.02
45206
41647
38576
35872
33476
31379
29493
27821
26314
66
F
388.06
49138
45269
41930
38992
36387
34108
32058
30241
28603
64
1
419.11
53069
48890
45285
42111
39298
36837
34623
32660
30891
62
H
450.16
57000
52512
48639
45231
42209
39566
37188
35079
33179
60
I
481.20
60931
56133
51994
48350
45120
42294
39752
37499
35467
60
G
530.54
67179
61889
57325
53308
49746
46631
43829
41344
39104
59
`- K
562.70
71250
65640
60800
56539
52761
49457
46485
43850
41474
58
L
594.86
75322
69391
64274
59769
55776
52283
49141
46355
43844
57
M
627.01
79394
73142
67748
63000
58791
55110
51798
46861
46214
55
N
659.17
83465
76893
71223
66231
61806
57936
54454
51367
48584
54
0
715.16
90555
83425
77273
71857
67057
62857
59080
55730
52711
53
P
748.42
94767
87305
80867
75200
70176
65781
61828
56322
55163
52
Q
781.69
98479
91185
84461
78542
73295
68705
64576
60915
57615
51
R
814.95
103191
95066
88055
81884
76414
71628
67324
63507
60066
50
S
848.22
107403
98946
91649
85226
79533
74552
70071
66099
62518
55
T
910.86
115335
106254
98418
91521
85407
80058
75247
70981
67136
O
945.23
119688
110264
102132
94975
88630
83079
78086
73659
69669
54
v
979.61
124040
114273
105946
98428
91853
66100
80926
76338
72203
54
M
1013.98
128393
118283
109560
101882
95076
89122
93765
79017
74736
53
X
1104.35
139835
128824
119324
110962
103549
97064
91231
86059
81397
51
Y
1193
-05
151067
139172
128909
119875
111866
104861
98559
92971
87934
49
Z
1286.19
162860
150037
138972
129233
120599
113047
106253
ID0229
94799
33
AA
1374.89
174092
160384
148557
138146
128916
120843
113581
107142
101337
33
AB
1509.34
191116
176067
163D93
151654
141522
132660
124687
117618
1$1246
32
AC
1600.81
202699
186738
172967
160845
150100
140700
132244
124747
111989
32
AD
1743.57
220775
203391
188392
175189
163485
153247
144037
135871
128511
31
AE
IB37.82
232709
214385
198576
184659
172322
161531
151823
143216
135457
31
RE
1940.40
245693
226352
209660
194966
181941
170547
160297
151210
143018
75
1695
0
TABLE 4
DESCRIPTION OF PROJECTS IN THE RANCHO CUCAMONGA MORTGAGE REVENUE BOND PROGRAM
DEVELOPER
LOCATION
TRACT
PRODUCT TYPE
DENSITY
PRICE RANGE
SQUARE FOOTAGE
UNITS - TOTAL
UNITS - BOND PROGRAM
MORTGAGE - AVERAGE
MORTGAGE REQUEST
MARLBOROUGH
THE
WILLIAM LYON COMPANY
ARCHIBALD /CHURCH
#11663
911934'
012044 -5
#12044 -6
TOWNHOMES
$FD-
SFD
rSFD
10 /ACRE
&.2 /AC
x.4'.3 /Ad
3.5 /AC
$T5,990- 89,990
$0,990- 67,990
-. $72,990- 83,990
$98,950
936 -1450
762 -915
857 -1150;
1366
383
123.
364
71
125 - 133
s74
156
56
$77,500
$56,000
$70,000
$89,000
$10,000,000
$4;144,000
$10,920,000
$4,984,000
$10,000,000
$20,048,000
TABLE 5
PROJECTS IN THE ONTARIO MORTGAGE REVENUE BOND PROGRAM
* Project is on the market.
21
UNITS TO BE
ESTIMATED
FINANCED BY
DEVELOPER
-----------------------------------------------------------------
NAME OF DEVELOPMENT
PRICE RANGE
THE BONDS
THE ANDEN GROUP*
CIMMARON^OAKS 2
$76 -84000
42
THE ANDEN GROUP*
CIMMARON OAKS IT
76 -84000
42
BARRATT OF S. CA.*
MOUNTAIN OAKS
60 -85000
52
BARRATT OF S. CA.
CREEKSIDE CONDOS
45 -72000
94
ONTARIO DUPLEX -- '-
ONTARID- DUPLEr --
- -79 -88000
16
ONTARIO PARKS
PARK FRANCIS
85 -89000
45
THE MCCARTHY CO.*
PARKCOURT PLACE
62 -76000
88
O'LEARY DEV.
MOUNTAIN VIEW
75 -89000
42
PRESLEY CO.*
PARK VISTA
66 -78000
46
PRESLEY CO.*
MAGNOLIA TERRACE
74 -81000
37
RAINTREE ASSOC.
RAINTREE HOMES
76 -88000
27
* Project is on the market.
21
TABLE 6
PROJECTS IN THE SAN BERNARDINO COUNTY
MORTGAGE REVENUE BOND PROGRAM
UNITS TO BE
'
ESTIMATED
FINANCED BY
DEVELOPER
----------------------
NAME OF DEVELOPMENT
-- - -- __- ------------------------------
PRICE RANGE
THE BONDS
ACACIA CONST.•
RANCHO VILLAS
$75 -80000
13
CHINO PARTNERS
LA COESTA CHINO
66 -68000
30
LEWIS DEV.*
SUNSCAPE II
48 -67000
29
_
•
LEWIS DEV. -� -
SUNFLOWER
:.7~.59 -68000
1
RICHARD H. MACLEOD*
RANCHO HEIGHTS
76 -80000
52
MARLBOROUGH DEV.•
MARLBOROUGH VILLAS
73 -90000
21
PEACHWOOD
PEACHWOOD'54
-70000
25
-----------------------------------------------------------------
• Located in Rancho
Cucamonga
N
t�
TABLE 7
ABSORPTION SCHEDULES FOR PROJECTS IN THE RANCHO CUCAMONGA MORTGAGE REVENUE BOND PROGRAM
PRODUCT TYPE CANDIDATE PROJECTS
DETACHED
THE WILLIAM LYON
COMPANY
TRACTS #12044 -5:
156
TRACTS 012044 -6:
56
TOTAL:
212
ATTACHED
MARLBOROUGH DEVELOPMENT
CORPORATION
TOWNHOMES:
129
ATTACHED
THE WILLAIM LYON
COMPANY
PATIO HOMES:
74
TOTAL ATTACHED:
203
UNSOLD
INVENTORY IN
DEMAND BY COMPETITIVELY
QUALIFIED FINANCED
PURCHASERS PROJECTS-
HAVEN RIDGE
4 UNITS
203 /YEAR 4 UNITS
RANCHO VILLAS
10 UNITS
191 /YEAR 10 UNITS
REQUIRED CAPTURE RATES
FOR COMPLETE ABSORPTION
NET DEMAND _ ______________________
BY QUALIFIED TWO THREE
PURCHASERS YEARS YEARS
199 531 361
181 451 30%
• The projects In the Ontario and San Bernardino County mortgage revenue bond programs are not regarded as being very
competitive since they have mortgage rates of 13.51 compared to the expected mortgage rates of 11 -12% for the
Rancho Cucamonga bond issue.
ASSUMPTIONS AND QUALIFICATIONS
The methodology underlying this study has been designed to take
into account all of the various demographic, economic, and
housing market factors that will influence the success of the
various projects in the mortgage revenue bond program.
Specifically, the data used in the analysis have been gathered
from sources that are regarded as being reliable. Furthermore,
the forecasts of housing demand are based upon the most probable
set of assumptions of the economic and housing market conditions
that are likely to prevail in the future.
While a high degree of conscientiousness has been exercised with
respect to the above factors, we nevertheless take special care
to state the assumptions and qualifications underlying the study.
Specifically, data presented in the study are not guaranteed in
terms of their accuracy or reliability_`: The forecasts of housing
demand are also not guaranteed, s2nce there are numerous
economic, physical and political factors that appear to be
inconsequential at the present time but may ultimately have a
substantial effect on the success of the program.
In particular, the success of the mortgage revenue b^nd program
depends upon some events which are completely beyond our control.
First, the competitiveness of the various projects in the
program, as compared to other projects that may come on the
market, depends upon their interest rate differential, estimated
to be approximately 2 -3 percentage points. Should mortgage rates
decline significantly after the issuance of the bonds, so that
the market rates are below the bond rates, then the financing
competitiveness of the projects in the program would diminish,
and so their absorption would require more time. Secondly, the
success of a particular project also depends upon the quality of
the housing products as well as the effectiveness of its
marketing program; this is also beyond our control.
24
RANCHO CUCAMONGA
MORTGAGE REVENUE BOND ISSUE:
AVERAGE AREA PURCHASE PRICE STUDY
s`
i
}
1
i
t
{t
t
1
RANCHO CUCAMONGA
MORTGAGE REVENUE BOND ISSUE:
AVERAGE AREA PURCHASE PRICE STUDY
Prepared
for
Mayor Jon D. Mikels
City of Rancho Cucamonga
by
Empire Economics
Joseph T. Janczyk
December 1982
TABLE OF CONTENTS
Page
INTRODUCTION
Background
Purpose
Methodology
I: MORTGAGE SUBSIDY ACT OF 1980 AND TREASURY 4
GUIDELINES
II: AN EVALUATION OF THE TREASURY GUIDELINES FOR 6
AVERAGE AREA PURCHASE PRICE
Methodology Underlying Treasury Estimates
Federal Home Loan Bank Board
Evaluation of the Treasury Estimates
III: ALTERNATIVE METHODS FOR COMPUTING AVERAGE 10
AREA SALES PRICE
Assessor
Real Estate Research Council
California Land Title Company
California Market Data Cooperative
IV: CONCLUSIONS -.... 79
Comparison of the Alternative Methods
Comparison of the California Market Data
Cooperative and Treasury Guidelines
INTRODUCTION
Background
According to the Martgage Subsidy'Act'of 1980, the maximum
price for housing units in the mortgage revenue bond program may
not exceed 110¢ of the average price for housing in the area.
According to the guidelinea..promulgated by the Treasury, the
suggested average sales price for new housing in the San
;i
Bernardino - Riverside SMSA is $89,300. Consequently, the maximum
price for new housing units in the program is $98,230. The
projects that have expressed-an interest inr being.in the Rancho
Cucamonga Mortgage~ Revenue Bond Program offer housing products
that fulfill this criteria. However, the Treasury is expected to
publish new guidelines in the near future, and there is some
indication that the average sales price for the San Bernardino -
Riverside SMSA may show a decline. If the maximum allowable
price is lowered, then the projects that are presently in the
program may be disqualified, since the prices of their housing
products would exceed the new maximum price limit. Furthermore,
these participants may incur the loss of their up -front fees that
they paid to participate in the program, since they would not be
able to utilize their mortgage funds.
1
Purpose
i -.
The purpose of this study is to perform a comprehensive,
professional analysis of the San Bernardino - Riverside SMSA
average area sales price, in order to ensure that most accurate
i
and reliable maximum price is provided to the participants in the
1 Rancho Cucamonga Mortgage Revenue Bond Program. Accordingly, the
particular topics which will be analyzed, along with the special
findings that will be derived, are as follows:
• The Mortgage Revenue Subsidy Act will be discussed, in
terms of the maximum purchase price that is allowed for
housing units in the Rancho Cucamonga Mortgage Revenue
Bond Program.
The methodology utilized by the Treasury in determining
their guideline average area purchase price will be
,
evaluated, in terms of the adequacy of the data base as
S
S well as the accuracy and reliability of the data
utilized.
* The average area purchase price for the San Bernardino -
Riverside SMSA will be computed using alternative data
sources, including California Market Data Cooperative,
l Society of Real Estate Appraisers, County Assessor
Residential Research Committee, and the Realtors's
Association.
» The various average area sales prices from the data
bases will be evaluated in terms of their sample sizes
as well as the accuracy and reliability of the data.
2
The primary result of this study will be a determination of the
most suitable and appropriate average area sales price for the
San Bernardino - Riverside SMSA. Thus, the prospective
participants in the Rancho Cucamonga bond issue will have more
precise information on the maximum allowable prices, and will
thereby be in a better position to make an informed judgement
i
regarding their participation in the program.
j Methodology
t
The computation of the average area sales price is
accomplished through the application of standard statistical
procedures to data that are believed to have been compile
conscientiously. However, the accuracy of the data utilized is
not guaranteed, since Empire Economics did not compile these
i directly. Furthermore, the final determination of whether or not
the average sales price computed herein will be regarded as
being superior to that provided by the Treasury Guidelines is a
function of the evaluation and review by various federal
agencies; this is beyond our control as well. Therefore, the
determination of the average sales price by Empire Economics
should be evaluated within these qualifications and limitations.
f
3
SECTION I
MORTGAGE SUBSIDY ACT OF 1980
AND TREASURY GUIDELINES
i
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t The Mortgage Subsidy Act of 1980 specifies various criteria
that must be fulfilled in order for the mortgage revenue bonds to
maintain their tax - exempt status, one of which is the maximum
price of the housing units in the program. Specifically, the
i
price of each housing unit in the program must not exceed a
j certain proportion of the average area purchase price. The term
"average area purchase price" is defined as follows:
r
the average purchase price of all single- family
residences in the statistical area in which the
residence being financed is located for the most
recent 12 -month period for which sufficient
statistical information is available.
(Source: Mortgage Subside Act of 1980,
Reg. 6a103A- 2(e)(3)
Based upon the average area purchase price, the allowable
maximums can be computed: for non- targeted areas, 110% of the
{ average sales price and for the targeted areas, 120% of the
1 average sales price. Therefore, the average area sales price is
1 the key to determining the maximum allowable prices under the
program.
'- The Treasury Department has published guidelines for the
average area sales price that an issuer may rely upon:
an issuer may rely upon the average area purchase
t price safe habor limitations published by the
Department of the Treasury for the statistical
area in which the residence is located.
(Source: Rev. Proc. 81 -36 Sec. 2 -.05)
4
For the San Bernardino - Riverside SMSA, the average area
purchase price, published in August 1981, was $89,300. However,
( the issuer need not rely upon the Treasury guidelines estimates
i
if more accurate and reliable data are available:
An issuer may use a limitation different from the
published safe habor limitation for an area if the
i issuer has more accurate and comprehensive data.
(Source: Rev. PrOc. 81 -36 Sec. 2 -0.5)
` Therefore, a comparative analysis will be made of the accuracy
Il and reliability of the Treasury guideline estimates relative to
f the alternative estimates from different data bases, to determine
which is more appropriate for the San Bernardino - Riverside SMSA.
1
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SECTION II
i
AN EVALUATION OF THE TREASURY GUIDELINES
FOR AVERAGE AREA PURCHASE PRICE
In this section, the methodology underlying the
i
computations of the average area sales price by the Treasury for
the San Bernardino - Riverside SMSA is presented and then evaluated
in terms of its accuracy and reliability.
Methodology Underlying Treasury Estimates
The cafe habor estimates are prepared by the Department of
! Treasury in conjunction with the Office of Housing Policy of the
t
Department of Housing and Urban Development. The methodology is
as follows:
The estimates are based primarily upon information
from the Federal Home Loan Bank Board's monthly
survey of "Terms on Conventional Home Mortgages ".
The survey contains sales price estimates for both
new and existing one - family, non -farm residences.
The sales price estimates are based upon data from
the 12 -month period between April 1, 1980 and
March 31, 1981. The sales price data are adjusted
for nonconventional (Federal Housing Administration
(FHA) and Veteran's Administration (VA) guaranteed)
home sales.
(Source: Rev. Proc. 81 -36 Sec. 3 -.01)
Therefore, the primary data base for the computation of the
- average area sales price is from the Federal Home Loan Bank
Board.
6
Federal Home Loan Bank Board
` The Federal Home Loan Bank Board (FHLBB), created by
Congress in 1932, has the following functions: (1) to charter
i
and supervise federally- chartered savings and loan institutions;
E (2) to provide a credit reservoir for federally chartered savings
and loans as well as mutual savings banks, insurance companies,
and other thrift and home financing institutions; and (3) to
idirect the Federal Savings and Loan Insurance Corporation. Thus
the FHLBB can influence the availability and amount of mortgage
j
funds.
The FHLBB compiles various types of statistical information
from its members, primarily on the mortgage funds, but also on
the average sales prices of the homes as well. Specifically, the
FHLBB receives information from its members on the prices of the
housing units. This is done for the housing units whose loans
iclose during the first five working days of each month.
Evaluation of the Treasury Estimates
The use of the FHLBB data in compiling the average area
1 sales price is subject to certain limitations, discussed below:
1. The purchase prices reflect the transactions handled
` only by those savings and loans and other financial
institutions that are members of the FHLBB. Although
there are numerous financial institutions that handle
1
mortgages in the San Bernardino - Riverside SMSA, the
cumber of institutions reporting to the FHLBB is only
15 -25.
<L
- 2. The participating institutions provide information on
i
the average sales price only for those transactions
that occur during the first five working days of each
month, so this severely limits their sample.
3. Given the above limitations, the statistical validity
of the sample declines &S the data are broken down from
i
the national to the state and then to the regional
levels. For instance, the sample size for the nation
( in April 1982 was 2,691 while for the San Bernardino -
E Riverside SMSA it was only 22.
Therefore, the reliability and accuracy of the FHGBB's method of
estimating the average area sales price for the San Bernardino-
; Riverside SMSA is unsatisfactory due to the small number of
reporting institutions and the short time period that results in
a small sample size. For additional information, refer to Table 1.
1
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TABLE 1
REPORTING INSTITUTIONS AND
NUMBER OF LOANS REPORTED
FOR THE SAN BERNARDINO— RIVERSIDE SMSA
1 Number of Number
Reporting of Loans
{ Time Period Institutions Reported
April
1981
25
50
May
198T
24
55
June
1981
25
58
July
1981
14
35
August
1981
20
31
September
1981
13
51
October
1981
14
75
November
1981
14
86
December
1981
13
70
January
1982
11
24
February
1982
14
30
March
1982
9
27
April
1982
10
22
16 47
(monthly (monthly
average) average)
Q
SECTION III
ALTERNATIVE METHODS FOR COMPUTING
AVERAGE AREA SALES PRICE
Since the Treasury's Guidelines for computing the average
area sales price have some methodological and sample size
i deficiencies when applied to relatively small geographical areas
such as the San Bernardino- Riverside SMSA, alternative data bases
are now investigated. Specifically, the data bases from the
Assessor's Office, Real Estate Research Council, California Land
Title Company, and the California Market Data Cooperative are all
i analyzed, to determine which provides the most appropriate
measure of the average area sales price.
4
Assessor
t
Since the Assessor compiles information on housing sales, in
order to determine their market values and levy property taxes,
the assessor's offices in San Bernardino- Riverside counties were
contacted in order to determine if information on the average
' sales price could be obtained. For San Bernardino County, the
Assessor has sales price information on their computer system,
but its retrieval is not possible, since the computer program, in
its present form, cannot perform the necessary functions to
1
_ compile the average sales price. Furthermore, since the data
include land parcels as well as small structures, they do not
provide an accurate assessment of comparable housing units to
L
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those that will be in the mortgage revenue bond program, i.e.,
new homes in tract type developments, and it would be difficult
to make the appropriate adjustments to the data. With respect to
Riverside County, the Assessor does not even provide any data on
housing sales. Therefore, although the Assessor offices have
enormous data bases, they cannot contribute to the compilation of
the average sales price due to the limitations inherent in their
data bases and retrieval systems.
Real Estate Research Council
The Real Estate Research Council of Southern California
conducts surveys of homes in Southern California to assess the
changes in housing prices. The surveys have been conducted semi-
annually since 'T950. Although the surveys cover the Southern
California area as a whole, they are also broken down by
counties, with San Bernardino - Riverside being on of these.
However, there are some significant limitations in this data
base, as stated by the Real Estate Research Council:
The reported prices are the average prices of the
existing homes in the Council's sample. They do not
represent the average price of all homes in the county,
nor do they represent the average price of all homes
actually sold. ' The end purpose of the reported
averages is to show the change taking place in the
market value of the same homes over a period of time.
With respect to the housing market price trends, the average
prices of the homes in the Council's sample for the San
Bernardino - Riverside region indicate that the housing prices have
increased consistently since 1970 without exception. Most
recently, the average prices for April 1982 were some 4% higher
than those for April 1981. So although the absolute levels of
11
prices do not have a direct interpetation, the comparison of
levels over time reveals that housing prices have continue to
appreciate in the San Bernardino - Riverside region. For
i
additional information, refer to Table 2.
California Land Title Company
California Land Title Company publishes quarterly reports
that provide various types of information an new housing sales in
tract -type developments in the San Bernardino - Riverside region.
However, the sample is limited in that the survey covers only
those projects having ten or more units, and thereby excludes
smaller types of subdivisions as well as custom homes.
Additionally, the prices that are published in the report are
median rather than average prices, as called for by the Mortgage
Subsidy Act. Nevertheless, a brief analysis of these prices was
performed, since they may provide some insight on housing price
trends in the San Bernardino - Riverside SMSA. The median price
for the San Bernardino - Riverside region was calculated using the
median prices for San Bernardino and Riverside counties, which
are published separately, weighted by the average amount of the
sales in each of the counties. The resulting median price for
the San Bernardino - Riverside SMSA is $88,078 for the April 1981 -
April 1982 period.
California Market Data Cooperative
The California Market Data Cooperative serves as a
clearinghouse for appraisers who desire information on the sales
12
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TABLE 2
HOUSING PRICE TRENDS IN
SAN BERNARDINO- RIVERSIDE SMSA
Time
1969 April
October
1970 April
October
1971 April
October
1972 April
October
1973 April
October
1974 April
October
1975 April
October
1976 April
October
1977 April
October
1978 April
October
1979 April
October
1980 April
October
1981 April
October
1982 April
14
.San Bernardino -
Riverside SMSA
$21,000
21,400
21,800
22,100
23,100
23,500
23,600
24,000
25,000
25,400
25,800
27,900
29,400
31,100
33,500
37,100
41,600
47,900
52,600
55,800
60,100
66,000
71,000
77,200
80,700
83,200
83,600
prices of new and existing homes throughout the state of
California. Virtually all appraisers belong to the organization
and they provide the cooperative with information on the various
i
! housing sales that they appraise. These appraisals are typically
i conducted for financial institutions who are considering
providing the prospective purchasers with loans, so they are
r
regarded as having a high degree of reliability and accuracy.
The information provided by the appraisers includes the sales
price, square footage of living area, lot size, type of loan,
k year the house was built, and the data of the transaction, among
i
some other thirty housing characteristics. For additional
information on these, refer to Table j.
To compute the average sales price on the new homes in San
Bernardino - Riverside region, the following algorithm was
utilized:
1. The relevant geographical area includes all of the
areas within San Bernardino and Riverside counties.
2. For new housing units, only those constructed in 1981
and 1982 were included, while for existing units there
was no such restriction, i.e., all other housing units.
3, Since the focus is on the most recent twelve month
period, only those sales from September 1981 to
} September 1982 are considered, i.e., September 1982 is
L not treated as a full month due to lags in publishing
the data.
The above algorithm was applied to the California Market Data
Cooperative data base, and the key results that emerged are as
Lfollows:
14
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TYPES OF INFORKATION PROVIDED
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• There were a total of 3,507 and 3,391 sales of new and
existing homes, respectively, in San Bernardino-
Riverside SMSA during the September 1981 - September
1982 period.
The average prices for new and existing home sales
amounted ta. �-
E42�;.�4 and t7 _,578q respectively, again
during the September 1981 - September 1982 period for
the San Bernardino - Riverside SMSA. For additional
information on the new and existing home sales in the
San Bernardino - Riverside SMSA, refer to Tables 4 and 5,
respectively.
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TABLE 4
CALIFORNIA MARKET DATA COOPERATIVE
NEW HOUSING SALES
'SAN BERNARDINO- RIVERSIDE SMSA
Average Number
Time Period Price of Sales
July- September 1982 $94,076 649
April -June 1982 91,710 972
January -March 1982 90,863 795
September- December 1981 92,411 1,091
TOTAL $92,174 3,507
(weighted
average)
17
TABLE 5
CALIFORNIA MARKET DATA COOPERATIVE
EXISTING HOUSING SALES
SAN BERNARDINO- RIVERSIDE SMSA
-----------------------------
Average Number
Time Period Price of Sales
July- September 1982 $82,928 860
April -June 1982 73,722 779
January -March 1982 77,828 670
September - December 1981 79,081 1,082
TOTAL $78,578 3,391
(weighted
average)
s
SECTION IV
CONCLUSIONS
The above analysis has described the methodology used for
establishing the Treasury guidelines as well as the alternative
data bases that can be utilized for calculating the average area
sales price for the San Bernardino- Riverside region. In this
section, the various alternative methods are first compared with
each other to determine which is the most accurate, and then this
one is compared to the Treasury's guidelines estimates.
Comparison of the Alternative Methods
The four alternative methods include the following:
Assessor, Real Estate Research Council, California Land Title
Company, and California Market Data 'Cooperative. Their
advantages and disadvantages for calculating average area sales
prices are as follows:
Source Advantages Disadvantages
Assessor's Office
Real Estate Research
Council
California Land Title
Complete sample
High degree of accuracy
Surveys of comparable
housing units since
1950.
Surveys of new homes
1
Average sales price
cannot be computed due
to data and computer
retrieval limitations.
Existing, rather than
new housing units
Excludes small sub-
divisions
Provides median rather
than average prices
California Market Data Comprehensive sample Some sales may not be
I Cooperative reported, but these
would be only. a minor
portion
I
Therefore, based upon a comparative analysis of the four data
sources, the most appropriate one, given the reliability and
accuracy of its data as well as the number of observations, is
the California Market Data Cooperative.
Comparison Of California Market Data
Cooperative and Treasury fuidellnes
Based upon a comparative analysis of the California Market
Data Cooperative data base with the Treasury's Federal Home Loan
Bank Board data base, the following results emerge:
" California Market Federal Home Loan
Criteria Data Cooperative Bank Board
Sample Size 3,507 (new) 614 (total)
(Sept. 1981 -Sept. 1982) 3,391 (existing)
Source of Data Virtually all FHLBB members only
appraisers
Conclusions
Therefore, based upon a comprehensive analysis of the
various data sources, the most appropriate source for the San
Bernardino - Riverside region is the California Market Data
iCooperative, and this is far superior to the Federal Home Loan
i Bank Board. Accordingly, the average area sales price for the
!- San Bernardino SMSA that should apply to the housing units in the
L
9 n
Rancho Cucamonga Mortgage Revenue Bond Program amounts to $92,174
and $78,578 for new and existing homes, respectively. Therefore,
the maximum price limits for housing units in the program are as
follows: 110% of the average area purchase price is $101,391 and
$86,438 for new and existing homes, respectively. For
additional information, refer.to Table 6. .
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TABLE 6
AVERAGE AREA PURCHASE PRICE
AND MAXIMUM HOUSING PRICES
FOR THE SAN BERNARDINO- RIVERSIDE SMSA
New Housing Existing Housing
Units Units
Average Area $ 92,174 $78,578
Purchase Price
Maximum Price $101,391 $86,438
21