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HomeMy WebLinkAbout2002-136 ',. . ~ . RESOLUTION NO. 2002-136 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ("CITY") (1) APPROVING THE CONTINUATION OF THE CITY IN THE SINGLE FAMILY HOME MORTGAGE REVENUE BOND AND RELATED HOME FINANCE PROGRAMS IN COOPERATION WITH THE COUNTY OF SAN BERNARDINO ("COUNTY") AND (2) AUTHORIZING THE MAYOR TO EXECUTE ON BEHALF OF THE CITY A COOPERATION AGREEMENT BETWEEN THE CITY AND THE COUNTY. 3 4 5 6 7 8 WHEREAS, there is a need in the County of San Bernardino (the "County") and in the 9 City to provide decent, safe, sanitary and affordable housing by persons in the low/moderate 10 income purchasing spectrum, and a consequent need to encourage the development or 11 preservation of homes affordable by such persons and otherwise to increase the housing supply 12 in the County and in the City of San Bernardino (the "City") for such persons; and 13 WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the 14 State of California (the "Financing Act") (commencing with Section 52000 of the Health and 15 Safety Code authorize counties and cities under the Act to issue revenue bonds for the purpose 16 of financing home mortgages authorized by the Act, and Article II of Chapter 3 of Part I of 17 Division 2 of Title 5 of the Government Code of the State of California (the "Refunding Act," 18 and, together with the Financing Act, the "Act"), commencing with Section 53570 of the 19 Government Code, authorizes the County to issue bonds to refund its revenue bonds previously 20 21 issued to finance home mortgages under the Act; and 22 WHEREAS, the County has determined to engage in a home financing program within 23 the geographic boundaries of the County and certain cooperating cities pursuant to the Act, in 24 connection with the construction, acquisition, rehabilitation or improvement of homes in the 25 County, all as provided for in the Act; and SB2002, I 0641.1 -1- .' 2002-136 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREAS, the Board of Supervisors of the County adopted Ordinance No. 2496 on November 17, 1980, declaring its intent to engage in a home mortgage finance program (the "Program") pursuant to the Financing Act and to issue indebtedness pursuant to the Act in furtherance of the Program; and WHEREAS, pursuant to the Act and other laws of the State of California, the County has (a) created The Extra Credit Teacher Home Purchase Program (the "Teacher Program") that provides home mortgages to qualified teachers or principals who meet certain conditions and issued $14,235,000 of bonds (the "Teacher Bonds") after providing notice to the City; (b) with the consent of all participating cities the County on its behalf and on behalf of the participating cities entered into a joint powers agreement ("JPA") under the Marks-Roos Local Bond Pooling Act of 1985 (Government Code 6584 et seq.)with the California Cities Home Ownership Authority (CCHOA) thereby permitting an existing CCHOA Lease Purchase Program to be available in the County; and (c) issued $500,000 of its Taxable Single Family Home Mortgage Revenue Notes (Fannie Mae Down Payment Assistance Program), 2001 Series A (the "2001 Notes") to create a down payment assistance program (the "DPAIN Program") that provides supplemental funds that may be used toward down payment and closing costs in conjunction with other mortgage programs, including the Program, the Teacher Program, as well as the County's HOME Program Homeownership Assistance Program (HAP), and to provide down payment assistance for households with incomes up to 140% of statewide median (higher than the income limits of those three programs) (collectively, the "Additional Programs") when used in conjunction with any other mortgage program, subject to the income limits of such mortgage program; and WHEREAS, the City on February 6, 1995, previously authorized the County to issue Bonds with respect to the implementation of the Program and has agreed to and consented to expansion of the Program pursuant to certain letters (the "Extension Letters"); and S82002: 1 0641.1 -2- . .' 2002-136 2 3 4 5 6 7 8 WHEREAS, the County has presented the City a form of new Cooperation Agreement (the "Cooperation Agreement") between the County and the City whereby the City consents to participate in the Program and the Additional Programs pursuant to the terms of such Cooperation Agreement; and WHEREAS, the Common Council finds and determines that it is in the best interest of the City to consent to its continued participation in the Program and to its participation and/or continued participation of the Additional Programs pursuant to the terms and conditions of the Cooperation Agreement between the County and the City; and 9 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF 10 SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 11 FOLLOWS: 12 Section 1. Each of the foregoing recitals is true and correct. 13 Section 2. The City hereby adopts the Program for the purpose of increasing the 14 housing supply in the County and in the City and consents to the operation of the Program and 15 the Additional Programs by the County with respect to all property located within the 16 geographical boundaries ofthe City, 17 Section 3. The Cooperation Agreement between the County and the City (the 18 19 20 21 22 23 24 25 "Cooperation Agreement"), in substantially the form attached hereto as Exhibit A, is hereby approved, and the Mayor and City Clerk are hereby authorized and directed to execute and deliver said Cooperation 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 Cooperation Agreement which they deem necessary or advisable, their approval of such additions or changes to be conclusively evidenced by execution by the Mayor of said Cooperation Agreement as so added to or changed. The Mayor, with the advice S82002010641.1 -3- .' 2002-136 2 3 4 5 6 7 and consent of the City Attorney, is further authorized to enter into such additional agreements with the County, execute such other documents or take such other actions as they may deem necessary or appropriate to carry out the purpose and intent of the Cooperation Agreement or to cooperate in the implementation of the Program or Additional Programs, Section 4. The officcs and employees of the City and the Redevelopment Agency of the City of San Bernardino are hereby authorized and directed, jointly and severally, to do any and all things necessary or advisable in order to effectuate the purposes of this Resolution and 8 9 the Cooperation Agreement. 10 fill II fill 12 fill 13 fill 14 fill 15 fill 16 fill 17 fill 18 fill 19 fill 20 fill 21 fill 22 23 fill 24 fill 25 fill S82002,10641.1 -4- I," .. 2002-136 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ("CITY") (1) APPROVING THE CONTINUATION OF THE CITY IN THE SINGLE FAMILY HOME MORTGAGE REVENUE BOND AND RELATED HOME FINANCE PROGRAMS IN COOPERATION WITH THE COUNTY OF SAN BERNARDINO ("COUNTY") AND (2) AUTHORIZING THE MAYOR TO EXECUTE ON BEHALF OF THE CITY A COOPERATION AGREEMENT BETWEEN THE CITY AND THE COUNTY. 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 3 4 5 6 Section 5. This Resolution shall take effect from and after its adoption. 8 Common Council of the City of San Bernardino at a j t. regu. ar meeting thereof, held on the 9 6th day of May , 2002, by the following vote to wit: 10 Council Members: Ayes Nays Abstain Absent 11 ESTRADA LIEN MCGINNIS DERRY SUAREZ ANDERSON MC CAMMACK ~ x 12 ~ -1L 13 x 14 x 15 ~ 16 17 18 ~~ /;J. C_~~ Rachel G. Clark 19 20 The foregoing resolution is hereby approved this '6~ day of Ma 21 22 23 Judith V es, Mayor Cit~7n Bernardino 24 al Content: 25 SB2002:!0641.! -5- ,2002. ~CIt : 2002-136 COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO CONCERNING THE COUNTY OF SAN BERNARDINO SINGLE FAMILY HOME MORTGAGE REVENUE BONDS AND RELATED HOME FINANCE PROGRAMS " 2002-136 COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO THIS COOPERATION AGREEMENT ("Cooperation Agreement") made and entered into as of May 6 , 2002, by and between the County of San Bernardino, a political subdivision of the State of California (the "County"), and the City of San Bernardino (the "City"). WITNE S SETH: WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Financing Act") (commencing with Section 52000 of the Health and Safety Code authorize counties and cities under the Act to issue revenue bonds for the purpose of financing home mortgages authorized by the Act, and Article 11 of Chapter 3 of Part 1 of DiviSlon-zofTitle 5 of the Government Code of the State of California {the "Refunding Act," and, together with the Financing Act, the "Act"), commencing with Section 53570 of the Government Code, authorizes the County to issue bonds to refund its revenue bonds previously issued to finance home mortgages under the Act; and WHEREAS, the County is authorized pursuant to the Act to finance home mortgages with respect to property located within the geographic boundaries of said counties and cities; and WHEREAS, the County has determined to engage in a home financing program within the geographic boundaries of the County and the City pursuant to the Act, in connection with the construction, acquisition, rehabilitation or improvement of homes in the County and the City, all as provided for in the Act; and WHEREAS, the Board of Supervisors of the County adopted Ordinance No. 2496 on November 17, 1980, declaring its intent to engage in a home mortgage finance program (the "Program") pursuant to the Financing Act and to issue indebtedness pursuant to the Act in furtherance of the program; and WHEREAS, the County has determined to finance the Program by, among other actions, the issuance of "County of San Bernardino Single Family Home Mortgage Revenue Bonds" or "Refunding Bonds" (collectively, the "Bonds"), in one or more series and in such amounts, to be determined at a later date as authorized by the Act and the Internal Revenue Code of 1986 (the "Code") and by taking any other actions necessary to support the Program, including the implementation of the Additional Program(s) as defined herein; and WHEREAS, prior to the effective date of this Cooperation Agreement, on February 6, 1995, and subsequently thereafter, the City previously authorized and approved the County to issue Bonds and implement the Program in the City; and P:\Clcrical Servie.. Depl\SlCphoaic\AFDdll4-1 $-02 COOPERA nON AGREEMENT .doc 2 2002-136 WHEREAS, the City, pursuant to the Act, has adopted the Program and the Additional Programs pursuant to Resolution No. 95-39, dated February 6, 1995, and has detenuined to cooperate with the County pursuant to the Act in the exercise of its powers under the Act for purposes of the Program and the Additional Programs; and NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: Section 1. The tenus used in this Cooperation Agreement shall, for all purposes of this Cooperation Agreement, unless otherwise defined herein, have the meanings assigned to such tenus in the Act. Section 2. The County agrees to undertake the Program and the Additional Program, and to issue securities therefore pursuant to the Act and the Code from time to time to the extent that the County receives allocations from the State, or in order to refund certain outstanding Bonds, or as otherwise legally penuitted. SeCtion 3; 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 under the Program and the Additional Programs, by agreeing that the County shall exercise such powers to make or acquire home mortgages under the Program, or perfonu related actions under the Additional Programs, or to refund such securities, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City. Section 4. The City, pursuant to Section 8869.85(d) of the Government Code of the State of California and solely with respect to single family home mortgage bond allocation, hereby assigns to the County any portion of the State ceiling for private activity bonds allocated to the City by the California Debt Limitation Allocation Committee ("CD LAC") pursuant to Section 146 of the Internal Revenue Code of 1986 and Section 8869.85 of the Government Code, to the extent such allocable amount is allocated directly or indirectly to the City either in conjunction with an application filed by the City, or an application filed by the County. Such assignment is solely for use by the County to provide financing for properties located within the territory of the City. Section 5. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the tenus and the intent of this Cooperation Agreement. Nothing in this Cooperation 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. Section 6. This Cooperation 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 the Bonds issued by the County pursuant to the Act in connection with the Program. P:lC1crical Services DepllSltpblnielAaenda\4-1 S-02 COOPER^- TION AGREEMENT.<!Ix 3 .' 2002-136 " In addition to the Program, this Cooperation Agreement is intended to include any additional home financing programs (the "Additional Programs") that the County elects to implement pursuant to the laws of the State of California, provided (a) that prior to the implementation of any such Additional Programs, the County shall provide the City written notice of its intent to include such Additional Program under the terms of this Cooperation Agreement and (b) the County shall not have received written notice from the City rejecting the inclusion of such Additional Programs within 20 days of such notice, or terminating this Cooperation Agreement as provided herein. The programs listed below shall be deemed to be Additional Programs included under the terms of this Cooperation Agreement: I. The Extra Credit Teacher Home Purchase Program (the "Teacher Program") which is a home mortgage finance program that provide mortgages to qualified teachers or principals who meet certain conditions. In December 2000, the County issued $14,235,000 of such Teacher Bonds after providing notice to the City. 2. In February of 2000, all participating cities executed letters approving the County to act on their behalf in joining the California Cities Home Ownership Authority (CCHOA) in order to make an existing CCHOA Lease Purchase Program available Countywide. During the year 2000, CCHOA purchased approximately 85 residences within the County of San Bernardino on behalf of lease-purchasers. On January 23, 2001, the County Board of Supervisors approved the County's continued participation in the CCHOA Program. On June 21, 2001, CCHOA issued $55,000,000 in bonds to provide ongoing financing for its Lease Purchase Program. 3. In January of 2001, the County issued $500,000 of its Taxable Single Family Home Mortgage Revenue Notes (Fannie Mae Down Payment Assistance Program), 2001 Series A (the "2001 Notes"). The proceeds of the 2001 Notes are available for a down payment assistance program (the "DP AIN Program") that was developed by the County and Fannie Mae. The DPAIN Program provides supplemental funds that may be used toward down payment and closing costs in conjunction with other mortgage programs, including the Program, the Teacher Program, as well as the County's HOME Program Homeownership Assistance Program (HAP), and to provide down payment assistance for households with incomes up to 140% of statewide median (higher than the income limits of those three programs) when used in conjunction with any other mortgage program, subject to the income limits of such mortgage program. Section 7. The term of this Cooperation Agreement shall extend (i) with resoect to anv Bonds issued in conjunction with the rights provided in the Cooperation Agreement (including any refunding of such Bonds), until the Bonds issued or refunded under the terms of this Cooperation Agreement, are fully paid and retired; (ii) with resoect to the Countv's right to aooly for and receive allocation in conjunction with the rights provided in the Cooperation Agreement, until the terms of this Cooperation Agreement have been terminated in writing by the City; provided (a) that prior to an application by the County requesting an allocation the County shall P:\CIerical Senicel Dept\Slepllanie\Apda\4-l5-02 COOPERATION AGREEMENT.doc 4 2002-136 provide the City notice of its intent to continue the terms of this Cooperation Agreement and (b) the County shall not have received with 10 days of such notice written notice from the City terminating the provisions of this Cooperation Agreement applicable to such application; (iii) with respect to any Additional Programs in conjunction with the rights provided in this Cooperation Agreement, until County receives written notice from the City terminating such Additional Programs; and (iv) until the County receives written notice of termination of this Cooperation Agreement on a date that is at least 10 business days from the day of such notice, provided the other provisions of this Cooperation Agreement are not violated. Section 8. This Cooperation Agreement shall take effect from and after its adoption. IN WITNESS WHEREOF, the parties hereto have caused this Cooperation Agreement to be executed and attested by their proper officers there under fully authorized, and their official seals to be hereunto affixed, all as of the day first above written. Attest: By: APPROVED AS TO FORM BY ALAN K. MARKS, COUNTY COUNSEL By b. ~j_~ By: P:lClerlcal Se..,kes Dept\StephanieIAge'\da\H5..02 COOPERATION AGREEMENT .doc COUNTY OF SAN BERNARDINO By: Jt.- Tho s R. Laurin, Director Departm t of Economic and Community Development CITY OF SAN BERNARDINO By 5 2002-136 provide the City notice of its intent to continue the terms of this Cooperation Agreement and (b) the County shall not have received with 10 days of such notice written notice from the City terminating the provisions of this Cooperation Agreement applicable to such application; (iii) with respect to anv Additional Programs in conjunction with the rights provided in this Cooperation Agreement, until County receives written notice from the City terminating such Additional Programs; and (iv) until the County receives written notice of termination of this Cooperation Agreement on a date that is at least 10 business days from the day of such notice, provided the other provisions of this Cooperation Agreement are not violated. Section 8. This Cooperation Agreement shall take effect from and after its adoption. IN WITNESS WHEREOF, the parties hereto have caused this Cooperation Agreement to be executed and attested by their proper officers there under fully authorized, and their official seals to be hereunto affixed, all as of the day first above written. Attest: COUNTY OF SAN BERNARDINO By: By: J. Renee Bastian, Clerk of the Board Thomas R. Laurin, Director Department of Economic and Community Development APPROVED AS TO FORM BY ALAN K. MARKS, COUNTY COUNSEL By Michelle D. Blakemore, Deputy Attest: CITY OF SAN BERNARDINO Rachel Clark, City Clerk By Judith Valles, Mayor ttomey P:IClerkal Serv;ces DepllStephanie\Agcnda\4-IS-Q2 COOPERATION AGREEMENT.do< 5