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HomeMy WebLinkAboutMC-483 ~. 2,232-2/1113S/jm 10/30/85 ORDINANCE NO. MC-483 AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO ESTABLISHING A HOME MORTGAGE FINANCE PROGRAM FOR LOW- AND MODERATE-INCOME FAMILIES PURSUANT TO PART 5 OF DIVISION 31 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND AUTHORIZING CITY OFFICERS TO IMPLEMENT THE PROGRAM WHEREAS, there is a shortage in the City of San Bernardino, California (the "City"), of housing which is affordable by persons on the lower end of the purchasing spectrum, and there exists a consequent need to encourage the construction of homes affordable by such persons and otherwise to increase the housing supply in the City for such persons; and WHEREAS, the Mayor and Common Council of the City (the "Council") intends to issue bonds, pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act"), to provide financing for the acquisition of housing in the City. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Vital Importance of Housing. The California State Legislature has declared that the subject of housing is of vital importance to the health, safety and welEare of the residents of the State of California for the following reasons: - 1 - . MC.-483 (i) Decent housing is an essential in helping people achieve self-fulfillment democratic society. motivating force In a free and (ii) Unsanitary, unsafe, dwelling accommodations constitute overcrowded or congested conditions which cause an increase in, and spread of, disease and crime. (iii) A healthy housing market is one In which residents of this State have a choice of housing opportunities and one in which the housing consumer may effectively choose within the free marketplace. Section 2. Authority to Undertake Home Mortgage Finance Program. The Council hereby affirms and concurs with the findings of the California State Legislature that: (a) there exists within the State a serious shortage of decent, safe and sanitary housing which is affordable to many persons in the State; (b) this shortage is exacerbated during periods of high interest rates, particularly as high interest rates have the effect of diminishing the number of otherwise creditworthy buyers from qualifying for private sector mortgage capital sources; and (c) in order to remedy this adverse effect on potential homebuyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for single-family purchases for those persons unable to compete for mortgage financing In the conventional mortgage market. The Act confers the authorization - 2 - . MC-483 upon cities and counties to undertake a home mortgage finance program and to issue revenue bonds to fund such program. Section 3. Findings and Declaration of Public Purpose. In accordance with Section 52031 of the Act, the Council hereby finds and declares that it is necessary and essential that the City be authorized to undertake a home mortgage finance program and this Ordinance is being adopted pursuant to the powers granted by Part 5 of Division 31 of the Health and Safety Code. The Council further finds and declares that within the City there is a shortage of decent, safe and sanitary housing, particularly of housing affordable by persons in the lower end of the purchasing spectrum, and that there is a public need to encourage the construction of homes affordable by such persons and otherwise to increase the housing supply for such persons. Section 4. Adoption of Home Mortgage Finance Program. The Council hereby adopts this Ordinance, pursuant to the powers granted by Part 5 of Division 31 of the Health and Safety Code of the State of California, and hereby establishes a Home Mortgage Finance Program of the City for the public purposes set forth in the Act. All financial provisions and other precise terms of the Home Mortgage Finance Program of the City shall be hereafter approved by resolution of the City which shall be those provisions and terms as shall be set forth in the Trust Indenture, the Origination, Servicing and Administration Agreement and the several Developer Agreements. - 3 - . MC-483 Section 5. Com~liance with Land Use and Housing Elements. The Home Mortgage Finance program of the City shall comply with the land use element and the housing element of the general plan of the City for the developments to be financed in the City. Section 6. Liberal Construction. The provisions of this Ordinance, being necessary for the welfare of the City and its inhabitants, shall be liberally construed to effectuate the purposes of the Home Mortgage Finance Program. Section 7. Authorization of Officers. The proper officers of the City are hereby authorized and directed to perform any acts and enter into and execute any agreements or other documents that they may deem necessary or appropriate to implement the Home Mortgage Finance Program. Section 8. Effective Date. This Ordinance shall take effect immediately upon adoption following the second reading thereof as provided in Section 52031 of the Act for the purpose of increasing the housing supply in the City. The City Clerk is hereby authorized and directed to cause this Ordinance to be published in the City within ten (10) days after its adoption. - 4 - KC-483 . . I HEREBY CERTIFY adopted by the Mayor San Bernardino at a held on the 18th the following vote, to that the foregoing and Common Counci 1 reqular day of wit: Ordinance of the meeting November l was duly City of thereof, 1985 , by AYES: Council Members Estrada, Reilly, Hernandez, Marks, NAYS: ABSENT: Quiel, Frazier, Strickler None None ~/?////74/~4I Ci tyClerk - 5 - . Me.,.483 ,. . , The approved this foregoing Ordinance 20th day of has been duly passed, adopted November , 1985. ~ L (i '-fA "'-"At /{J::r// yor of ~ne Cl y of San Bernardino Approved as to form: r ~J~~ City Attorney - 6 - and .