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HomeMy WebLinkAbout84-211 - ResolutionsRESOLUTION NO. 84-211 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, AUTHORIZING THE ISSUANCE OF $27,825,000 PRINCIPAL AMOUNT OF HOME MORTGAGE REVENUE BONDS 1984 SERIES A, SUCH BONDS TO BE ISSUED PURSUANT TO A TRUST INDENTURE DATED AS TO THE DATE OF THE BONDS, APPROVING OFFICIAL STATEMENT RELATING TO SUCH BONDS, AUTHORIZING THE EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENT, DOCUMENTS AND ACTIONS AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO 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 and Ordinance No. 229, adopted July 26, 1984, 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 determined to implement a program (the "Program") with respect to (i) the issuance by the City of its Home Mortgage Revenue Bonds, 1984 Series A, (the "Bonds"), and (ii) the use of the Bond proceeds by the City to purchase without recourse from 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 Home Mortgage Purchase Agreements and Servicing Agreements (together the "Agreements"); and WHEREAS, the Act requires the City to adopt Rules and Regulations with respect to the Program and such Rules and Regulations have been prepared and reviewed by the City Council with the aid of its staff; and WHEREAS, the City and the respective developers of the Homes, have entered into agreements (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 the trustee for the Bonds 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 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 Agreements; and WHEREAS, Stone & Youngberg, the Underwriter for the Program and the Bonds, has caused a Preliminary Official Statement, dated July 23, 1984, relating to the Bonds, to be submitted to the City for its review and approval for distribution in final form to purchasers of the Bonds; and WHEREAS, Stone & Youngberg (the "Underwriters") have submitted a form of agreement for the purchase of such Bonds (the "Purchase Agreement") and it is desirable that the Bonds be sold at this time; and WHEREAS, preliminary forms of the Trust Indenture, the Agreements, the Commitment Contracts and the other necessary implementing documents have been presented to and reviewed by the Council, with the aid of its staff, and such documents may now be conformed to the terms and requirements of the Purchase Agreement and the Official Statement and be approved for execution in final form. Resolution No. 84-211 Page 2 NOW, THEREFORE, IT IS ORDERED BY THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, as follows: 1. The City of Rancho Cucamonga, California, Home Mortgage Revenue Bonds, 1984 Series A, in a principal amount of $27,525,000, are hereby authorized to be issued pursuant to a Trust Indenture dated as of the date of the Bonds, in form substantially as submitted to the City at this meeting, which Trust Indenture is hereby approved and authorized and directed to be executed by the Mayor of the City on behalf of the City and his signature thereto to be attested by the City Clerk of the City who shall affix thereto the official seal of the City. 2. The City Manager of the City shall cause the execution of a Final Official Statement relating to the Bonds, setting forth such amendments and supplements to the Preliminary Official Statement, dated July 23, 1984, as shall be necessary or convenient to accurately describe the Bonds in accordance with this Resolution, the Trust Indenture, the Purchase Agreement and the other related agreements and documents. 3. The Purchase Agreement for purchase of $27,525,000 principal amount of City of Rancho Cucamonga Home Mortgage Revenue Bonds, 1984 Series A, in the form submitted to the City at this meeting is hereby approved and the City Manager of the City is authorized and directed to execute the Purchase Agreement on behalf of the City. 4. The Commitment Contract (and Reservation of Funds) with developers proposing to participate in the City's Program and the Home Mortgage Purchase Agreements and the Servicing Agreements to be entered into by and between the City with Lenders proposing to participate in the City's Program are hereby approved in substantially the forms presented at this meeting and the City Manager of the City is authorized and directed to execute the foregoing on behalf of the City with such amendments and supplements thereto as shall cause the foregoing to conform to the requirements of the City's Program as further described in the approved Official Statement, the Purchase Agreement and the Trust Indenture. 5. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and, upon execution of the Purchase Agreement, the Mayor, the City Administrator, the City Clerk, the City Attorney and the City Treasurer 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 and to execute and deliver any and all certificates, requisitions, agreements, including 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, the Rules and Regulations and other documents, including, but not limited to, those described in the Purchase Agreement and Section 211 of the Trust Indenture, 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 Agreement, the Trust Indenture, this Resolution and all related documents. 6- This resolution shall take effect from and after its adoption. Resolution No. 84-211 Page ATTEST: PASSED, APPROVED, and ADOPTED this 26th day of July, 1984. AYES: Wright, Buquet, Mikels, Dahl, King NOES: None ABSENT:None City Clerk