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HomeMy WebLinkAbout85-72 - ResolutionsRESOLUTION NO. 85-72 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $53,727,000 PRINCIPAL AMOUNT OF HOME MORTGAGE REVENUE BONDS, 1985 SERIES A, SUCH BONDS TO BE ISSUED PURSUANT TO A TRUST INDENTURE DATED AS OF MARCH 1, 1985, AUTHORIZING THE SALE OF SUCH BONDS, SUBJECT TO CERTAIN TERMS AND CONDITIONS, AND AUTHORIZING THE EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENTS, DOCUMENTS AND ACTIONS HOME MORTGAGE REVENUE BONDS 1985 SERIES A RESOLVED, by the City of Rancho Cucamonga, as follows: WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State of California (herein called the "Act") authorizes cities and counties to issue revenue bonds for the purpose of financing home mortgages authorized by the Act, and the Act provides a complete, additional and alternative method for doing the things authorized thereby; and WHEREAS, pursuant to the Act, the City is authorized to carry out the public purposes described therein by issuing its revenue bonds to acquire home mortgages and by pledging such home mortgages as security for payment of the principal of and interest on such revenue bonds, and by entering into any agreements in connection therewith; and WHEREAS, to alleviate the shortage of affordable residential housing facilities, and to provide capital for investment in such facilities for low and moderate income families and persons within the City, the City has developed and implemented a home mortgage financing program (the "Program") with respect to (i) the issuance by the City of its Home Mortgage Revenue Bonds, 1984 Series A and the issuance of an additional series of bonds designated "Home Mortgage Revenue Bonds, 1985 Series A" (the "Bonds"), and (ii) the use of the proceeds of the Bonds by the City to purchase without recourse from one or more lending institutions (the "Lenders") certain home mortgages (the "Home Mortgages"), made to finance residential facilities intended for use as the permanent place of residence by persons of low and moderate income (the "Homes"), which Home Mortgages are to be originated and serviced by the Lenders pursuant to one or more Home Mortgage Purchase Agreements and one or more Servicing Agreements (together, the "Agreements"); and WHEREAS, the City and the developers of the Homes will enter into agreements (collectively, the "Commitment Contracts"), for the purpose of setting forth, among other things, the terms and conditions pursuant to which the developers will deliver Home Mortgages for purchase by a trustee on behalf of the City and the City will reserve proceeds of the Bonds to provide funds for such purpose; and WHEREAS, the City has now determined to issue the Bonds and to enter into a Trust Indenture (the "Indenture") to secure the Bonds by a pledge and assignment of the Home Mortgages, the proceeds of the Bonds, certain insurance proceeds, certain reserve funds, certain investment earnings on the proceeds of the Bonds and the revenues received from the Home Mortgages and its rights under the Commitment Contracts and the Agreements; and WHEREAS, Stone & Youngberg (the "Purchaser") has caused a draft of a Preliminary Official Statement relating to the Bonds to be submitted to the City, for approval for distribution to prospective purchases of the Bonds; and WHEREAS, the Purchaser has submitted an agreement for the purchase of the Bonds (the "Purchase Contract") and it is desirable that the Bonds be sold at this time only, however, on the terms and conditions heroinafter provided; and Resolution No. 85-72 Page 2 WEREAS, forms of the Indenture, the Agreements, the Commitment Contracts and the other necessary implementing documents have been presented to and reviewed by the City, with the aid of its staff, and such documents may now be conformed to the terms and requirements of the Purchase Contract and the final Official Statement for the Bonds and be approved for execution in final form. NOW, THEREFORE, IT IS HEREBY ORDERED BY THE CITY COUNCIL OF RANCHO CUCAMONGA as follows: 1. The City of Rancho Cucamonga Home Mortgage Revenue Bonds, 1985 Series A in an aggregate principal amount not to exceed $53,727,000 are hereby authorized to be issued pursuant to the Act and the Indenture, which Indenture shall be dated as of March 1, 1985. The indenture, substantially in the form as submitted to the City at this meeting, is hereby approved. The Mayor of the City, the City Clerk, to City Treasurer, the City Manager and other proper officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Indenture in substantially said form, with such additions thereto or changes therein as such officers may approve, such approval to be conclusively evidenced by the execution and delivery thereof. The date, maturity dates, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Indenture as finally executed. 2. The Preliminary Official Statement, substantially in the form as submitted to the City at this meeting, is hereby approved for distribution to prospective purchasers of the Bonds. The City Manager of the City is hereby authorized and directed, for and in the name and on behalf of the City, to execute a final Official Statement relating to the Bonds, setting forth such amendments and supplements to the Preliminary Official Statement as shall be necessary or convenient to accurately describe the Bonds in accordance with this Resolution, the Indenture, the Purchase Contract and the other Program agreements and documents. 3- The Purchase Contract for purchase of the Bonds, substantially in the form as submitted to the City at this meeting, is hereby approved. The City Manager of the City is hereby authorized and directed, for and in the name and on behalf of the City, to execute the Purchase Contract provided that all of the following conditions are met: (a) the purchase price of the Bonds shall be not less than ninety- seven percent (97%) of the principal amount of the Bonds; and (b) the Home Mortgage Revenue Bond interest rate for any maturity shall not exceed eleven and one-half percent (11.50%); and (c) the Home Mortgage interest rate shall not exceed eleven percent (11.00%) provided that the Purchaser may make provision for adjustment of maturing amounts of principal and the maturity dates thereof in a manner which does not increase the effective interest rate of all Bonds above the specified annual Home Mortgage interest rate limitation above set forth. The City Manager of the City shall approve the final interest rates on and the final purchase price of the Bonds, as conclusively evidenced by his execution of the Purchase Contract. 4. The Con~nitment Contracts with the developers proposing to participate in the Ctty's Program and the Home Mortgage Purchase Agreements and the Servicing Agreements to be entered into by and among the City, the trustee for the Bonds and the lenders proposing to participate in the City's Program, substantially in the forms of such documents as submitted to the City at this meeting, are hereby approved. The City Manager of the City, each acting along, is hereby authorized and directed, for and in the name and on behalf of the City to execute the foregoing documents with such additions thereto or changes therein as such officer executing the documents may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Resolution No. 85-72 Page 3 5- All actions heretofore taken by the officers and agents of the City with respect to the establishment of the Program and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and, upon execution of the Purchase Contract, the City Manager, the City Clerk, the City Treasurer, the Mayor of the City and other appropriate City officers are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions, including, but not limited to, conforming of the existing Rules and Regulations for the Program to the other Program documents, securing bond insurance insuring the payment of principal of and interest on the Bonds, selecting Developers and Lenders for participation in the Program, selecting a trustee for the Bonds, and to execute and deliver any and all certificates, requisitions or agreements, including, but not liminted to, an agreement for investment of the proceeds of the Bonds and of the Home Mortgages, a compliance agreement with a private mortgage insurer for the Program, those documents described in the Purchase Contract and Sections 207(C), (D) and (E) and Section 211 of the Indenture, and such other certificates, requisitions or agreements which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with the Purchase Contract, the Indenture, the Official Statement, this Resolution and all related documents and in order to carry out the Program. 7- This resolution shall take effect from and after its adoption. PASSED, APPROVED, and ADOPTED this 6th day of Msrch, 1985. AYES: Wright, Buquet, Mikels, Dahl, King NOES: None ABSENT: None ATTEST: Authelet, City Clerk