HomeMy WebLinkAbout83-160 - ResolutionsRESOLUTION NO. 83-160
A RESOLUTION AUTHORIZING APPLICATION FOR ALLOCATION OF
MORTGAGE SUBSIDY BONDS AND FILING OF NOTICE OF SALE
THEREOF WITH MORTGAGE BOND ALLOCATION CO~4ITTEE,
AUTHORIZING EXECUTION OF PROGRAM DEPOSIT AGREEMENTS AND
PROVIDING OTHER MATTERS PROPERLY RELATING THERETO
RESOLVED, by the City Council of the City of Rancho Cucamonga,
California, 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;
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;
WHEREAS, the City proposes to undertake a Home Mortgage Financing
Program (the "Program") to purchase loans (the "Home Mortgages") made to
finance new and existing single-family owner-occupied residential units (the
"Homes") within the City and to issue Home Mortgage Revenue Bonds (the
"Bonds") to finance the purchase of the Home Mortgages;
WHEREAS, to obtain an allocation to issue the Bonds within the
federally imposed limit upon the issuance of mortgage subsidy bonds, the City
must file, pursuant to the Costa-Marks Housing Bond Allocation Act of 1981, as
amended (the "Costa-Marks Act"), a notice of sale of the principal amount of
the proposed Bonds with the State Mortgage Bond Allocation Committee;
WHEREAS, in addition, in order for the City to obtain such an
allocation, the City must cause evidence of the deposit of an amount of money
or letters of credit securing such amount, which amount shall be subject to
forfeiture and application by the City to assist housing for persons of low
and moderate income within the City upon the failure to sell any or only a
portion of the Bonds; and
WHEREAS, developers within the City desire to provide the deposit
required to be made in order for the City to obtain such an allocation, such
deposit to be subject to the terms and conditions described in the Program
Deposit Agreement in form presented to and reviewed by the City Council with
the aid of its staff;
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED and ORDERED, as
follows:
1. Application to the State Mortgage Bond Allocation Committee for
an allocation for the Bonds under the Costa-Marks Act is hereby authorized and
approved.
2. A Notice of sale of $126,250,000 principal amount of Bonds is
hereby ordered to be filed by the City Clerk with the Mortgage Bond Allocation
Committee.
3. The Program Deposit Agreements in form presented at this meeting
are' hereby approved for execution and the Mayor is hereby authorized and
directed to execute the Program Deposit Agreements on behalf of the City with
the developers desiring to participate in the City's Program on the terms and
conditions therein provided.
Resolution No. 83-160
Page 2
4. At such time as the developers shall have complied with the
deposit requirements of the Program Deposit Agreements, the City Clerk shall
cause to be delivered to the Mortgage Bond Allocation Committee a certified
copy of this resolution, together with a certificate executed by the City
Manager and substantially in the form attached hereto as Exhibit A, and hereby
made a part hereof, to the effect that the City has on deposit in an interest-
bearing trust account or, to the extent applicable, has secured by letters of
credit an amount which equals 1/2 of 1% of the principal amount of the Bonds
requested for allocation.
5. The staff of the City is authorized and directed to commence
implementation of a home mortgage financing program in cooperation with
Fieldman, Rolapp & Associates, Financial Consultants; Jones Hall Hill & White,
A Professional Law Corporation, Bond Counsel; Stone & Youngberg, Underwriters;
and Empire Economics, Feasibility Consultants.
PASSED, APPROVED, and ADOPTED this 7th day of September, 1983.
AYES: Dahl, Buquet, Schlosser, Frost, Mikels
NOES: None
ABSENT: None
ATTEST:
· , City Cler~ ~
Resolution No. 83-160
Page 3
EXHIBIT A
CERTIFICATION REGARDING NOTICE TO THE
MORTGAGE BOND ALLOCATION COMaMITTEE
The City of Rancho Cucamonga hereby certifies to the Mortgage Bond
Allocation Committee pursuant to the requirements of Section 50191 of the
Costa-Marks Housing Bond Allocation Act of 1981 (the "Costa-Marks Act"), as
follows:
1. The City did by Resolution adopt on September 7, 1983, order the
filing with the Mortgage Bond Allocation Committee of a notice of sale and
request for grant to the City an allocation of mortgage subsidy bonds in the
amount of $126,250,000.
2. The City has on deposit in an interest bearing trust account or
has secured by appropriate letters of credit an amount equal to 1/2 of 1
percent of the dollar amount set forth in paragraph 1 hereof, which deposit is
subject to the forfeiture provisions of the Costa-Marks Act.
3- The City requests the grant of an entitlement allocation or
$20,000,000 and a supplemental allocation of $106,250,000.
4. The City Manager of the City of Rancho Cueamonga has been duly
authorized and directed to execute and deliver this Certification pursuant to
resolution of the City duly adopted on September 7, 1983- A certified copy of
said resolution accompanies this Certification.
CITY OF RANCHO CUCAMONGA
Lauren M. Wasserman, City Manager
Date:
September 8, 1983