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. CITY OF SAN BER~ARDiNoI1)REQUEST FOR COUNCIL ACTION
Dept:
Ccmununi. ty Develc:pnent
REC11-!bjMlr\I~. ofii:n..B FAMILY ~
REV.ENtlB IlCH) ~
\3Su M~R 15 V~ 7: ~j
From:
Kenneth J. Herrlerson, Director
Date:
March 14, 1990
Synopsis of Previous Council action:
None.
Recommended motion:
AUl'R)RIZE STAFF '!O ppt'Y"F.F.n WITH THE ISSUAH::B AND SALE OJ' APPR)XIM1\TELY 18.8
MILLION DOI.JARS OF TAX EmoIPl' SnmB FAMILY M:>Rl'm\GB REVENUE BONrB.
~f~~
Signature
Contact person:
Ken Herrlerson
Phone:
5065
Supporting data attached:
staff Report
Ward:
1-7
FUNDING REQUIREMENTS:
Amount: N/A
Source: (Acct. No.) N/A
(Acct. Description) N/A
Finance:
Council Notes:
75-0262
Agenda Item No
S-;L
CI_TV OF SAN BER~ARDINO - REQUEST II:OR COUNCIL ACTION
STAFF REPORT
Miller ani Schroeder Financial, Im., with the assistarx::e of the law
finns of Jones, Hall, Hill ani White, San Francisco, ani Haynes ani
Miller, W~n D.C., have develcp3d a program to replace a portion
of the escru..r established with the issuaooe of the 34 million dollars
collateralized Ilk)rtgage obligations last Noveuber with the p~s of
a new 18.8 million dollar tax exenpt sin;Jle family Ilk)rtgage revenue
bom issue. '!be result will be 18.8 million dollars of new Ilk)rtgage
Ilk)ney with the followin;J provisions:
(a) Based on current rrarket corrlitions, a thirty (30) year fixed rate
Ilk)rtgage at approxiJrately 8.0 percent;
(b) No need for an allocation fran the state for authority to issue
the new borrls as it required for all new Ilk)rtgage revenue borrls
nationwide;
(c) '!be furrls may be used entirely to finarx:e existin;J hoosin;J if the
City chooses, contrasted with the other programs developed in the
state whidl require at least a mininum sixty percent (60%) of the
proceeds be used for new construction;
(d) Other than HUD-designated targeted areas, the nonies will be re-
quired to be utilized by first-time harel:uyers;
(e) '!be new borrls are not subject to the alternative minimum tax,
which results in a l~ interest rate of awroxilnatelyone-half
percent (1/2%);
(f) '!he City may receive from surplus of the program, approxiJrately
three-foorths percent (3/4%);
g) '!he 1990 p.rrd1ase price limits for each hate will be $113,130 for
existin;J halsin;J arrl $128,700 for new construction, am adjusted
annually;
h) Except for targeted areas, an incx:me limitation of $38,500 arrl
$44,275 for a family of three (3) or Ilk)re, arrl;
i) Awroxilnately thirty-nine (39) Ilk)nths to originate the new
Ilk)rtgage loans.
If this prcxJraIll is to be inpleIOOnted, the borrls nust be issued prior
to June 1, 1990. No other City or Redevelcpoont kJen:::y furrls are
obligated to pay the bonds arrl all costs of the program are assum::rl by
the Ilk)rtgagors.
March 14, 1990
75-0264
SINJIE F1\MILY M:lR'ro1lGE REVENUE OOND FroGRAM
staff Report Conf led...
Page -2-
Afproximately one-hurx:1red, forty-six (146) mortgages for newly-<XXl-
structed hanes cx:W.d be financed fran the borrl prooeeds, arrl one-
hurrlred, sixty-six (166) mortgages for existin;J hanes. A ClCIllbination
of new versus existin;J hares walid result in a number sanewhere bet-
loIeeIl those ooted above.
This item was placed on the supplemental aaenc1a at the reauest ot the
Mavor. inasmuch as the P~"Q1l1'S features were unavailable prior to
the reqular aqenda deadline.
I recommerrl adoption of the fonn motion.
elopnent
KJHjlab/3755
March 14, 1990