HomeMy WebLinkAboutR36-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Deputy Director/Director
Housing & Community Development
COUNTY AND CITY OF SAN
BERNARDINO COOPERATION
AGREEMENT EXTENSION.COUNTY
WIDE MORTGAGE ASSISTANCE
PROGRAMS
SUBJECT:
DATE:
April 24, 2002
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SvnoDsis of Previous Commission/Council/Committee Action(s):
On April 4, 2002, the Redevelopment Committee recommended that this item be sent to the Mayor and Common
Council for approval.
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Recommended Motion(s):
MOTION:
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ("CITY"): (I) APPROVING THE CONTINUATION OF THE CITY'S
PARTICIPATION 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 NEW COOPERATION AGREEMENT BETWEEN THE CITY AND
THE COUNTY.
Contact Person(s): Gary Van OsdellMaggie Pacheco
Project Area(s) 1 - 11
Phone:
Ward(s):
(909) 663-1044
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Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Reports
FUNDING REQUIREMENTS
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N/A
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Source:
Amount:
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SIGNATURE:
ggie Pa heca, Deputy Director/Director
Housing & Community Development
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Commission/Council Notes:
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MP:sj :5-6-02 County & City MAP Programs
COMMISSION MEETING AGENDA
Meeting Date: 05/06/02
Agenda Item Number: P. 3(,
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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County and Citv Cooperatiou Al!reement Extension-Home Mort~al!e Finance Pro~rams
BACKGROUND:
Under Federal and State Law, Cities and Counties have the authority to issue bonds that provide a public
benefit, including the provision of housing ownership opportunities which enable low- to moderate-
income households to acquire their own home with a minimum down payment and at an affordable
monthly payment. Under these laws, eligible cities and counties may join together under cooperative
agreements or form joint powers authorities which allow a single entity to issue bonds and/or otherwise
fund, as well as administer homeownership programs that serve income-eligible households in all
participating member cities and in all unincorporated areas of the participating County.
Mortgage funding generated in this manner poses no risk to the funds, assets or taxing power of the
issuing and participating cities. The proceeds of the monthly payments that are made by the homebuyers
for whom mortgages are originated with bond funds, are used to repay the bond investors the principal
amount of the funds generated through the sale of bonds, plus accrued interest on the bonds.
The County has been issuing mortgage revenue bonds under its Single Family Home Mortgage Revenue
Bond (SFHMRB) Program since 1980. All of the incorporated cities within the boundaries of the County
have participated with the County in its SFHMRB Program since it was implemented in 1980. The
Cooperative Agreements allow for the assignment of the cities' share of applicable SFHMRB allocations
to the County. The City of San Bernardino, and all of the incorporated cities/towns within the County of
San Bernardino have executed successor Cooperative Agreements and/or extensions to existing
agreements annually.
In 1995, the County' s cities, including the City of San Bernardino, entered into updated Cooperative
Agreement. During the past two years, the County has implemented additional homeownership
programs, which are now available countywide based on the terms of the existing Cooperative Agreement
that was executed in 1995, and which has been extended and expanded through subsequent annual
amendments. The new programs covered under the existing Cooperative Agreement and extensions
include a Lease Purchase Program administered by the California Cities Home Ownership Authority
(CCHOA) and the Extra Credit Teacher Home Purchase Program, which is a variation of the SFHMRB
program. Under the existing Cooperative Agreement and amendments, all cities within the County
currently participate in the SFHMRB, Teacher Program and CCHOA Lease-Purchase Program.
CURRENT ISSUE:
On January 9, 2001, the County Board of Supervisors approved a Resolution to update and expand the
existing Cooperative Agreements. Therefore, Economic and Community Development (ECD) sent a
copy of that resolution to each of the participating cities, along with a draft Letter of Intent to Continue to
Participate with the understanding that a new Cooperative Agreement would be provided to each City by
the County to be executed by each City in late 200 I calendar year. The draft resolution and draft
cooperative agreement provided by the County were developed by Philip Lee, Esq., of Fulbright &
Jaworski, L.L.P., acting as private Bond Counsel for the County. Both draft documents were reviewed
and approved by Deputy County Counsel, Michelle Blakemore, prior to being provided by ECD to the
Cities. The Agreement is subject to the approval of the City Attorney.
MP:sj:5-6-02 County & City MAP Programs
COMMISSION MEETING AGENDA
Meeting Date: 05/06/02
Agenda Item Number: 1J3 b
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The changes to the Cooperative Agreement will authorize the following: 1) allow the Cooperative
Agreement to be renewed automatically each year upon written notification to the City by the Director of
ECD; 2) add clarification that the Cooperative Agreement will automatically apply to any additional
homeownership programs to be developed by the County, ifnot otherwise restricted by applicable federal
or state program regulations; and 3) will require the County to advise the City of any new programs that
may be offered countywide under the extended and expanded Cooperative Agreement.
ENVIRONMENTAL IMPACT:
None. The County of San Bernardino ECD will be responsible for insuring that all environmental
requirements are met under the California Environmental Quality Act (CEQA).
FISCAL IMPACT:
This action has no fiscal impact on the City General Fund, the Agency Fund or any other funds
administered by the City of San Bernardino.
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Maggie Pacheco, De Dire orIDirector
Housing & Community Development
MP:sj:5-6-02 County & City MAP Programs
COMMISSION MEETING AGENDA
Meeting Date: 05/06/02
Agenda Item Number: ~
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RESOLUTION NO.
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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.
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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
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WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the
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State of California (the "Financing Act") (commencing with Section 52000 of the Health and
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Safety Code authorize counties and cities under the Act to issue revenue bonds for the purpose
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of financing home mortgages authorized by the Act, and Article 11 of Chapter 3 of Part I of
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Division 2 of Title 5 of the Government Code of the State of California (the "Refunding Act,"
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and, together with the Financing Act, the "Act"), commencing with Section 53570 of the
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Government Code, authorizes the County to issue bonds to refund its revenue bonds previously
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issued to finance home mortgages under the Act; and .
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WHEREAS, the County has detennined to engage in a home financing program within
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the geographic boundaries of the County and certain cooperating cities pursuant to the Act, in
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connection with the construction, acquisition, rehabilitation or improvement of homes in the
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WHEREAS, the Board of Supervisors of the County adopted Ordinance No. 2496 on
2 November 17, 1980, declaring its intent to engage in a home mortgage finance program (the
3 "Program") pursuant to the Financing Act and to issue indebtedness pursuant to the Act in
4 furtherance of the Program; and
5 WHEREAS, pursuant to the Act and other laws of the State of California, the County
6 has (a) created The Extra Credit Teacher Home Purchase Program (the "Teacher Program") that
7 provides home mortgages to qualified teachers or principals who meet certain conditions and
8 issued $14,235,000 of bonds (the "Teacher Bonds") after providing notice to the City; (b) with
9 the consent of all participating cities the County on its behalf and on behalf of the participating
10 cities entered into a joint powers agreement ("IPA") under the Marks-Roos Local Bond Pooling
11 Act of 1985 (Government Code 6584 et seq.)with the California Cities Home Ownership
12 Authority (CCHOA) thereby permitting an existing CCHOA Lease Purchase Program to be
13 available in the County; and (c) issued $500,000 of its Taxable Single Family Home Mortgage
14 Revenue Notes (Fannie Mae Down Payment Assistance Program), 2001 Series A (the "2001
15 Notes") to create a down payment assistance program (the "DPAIN Program") that provides
16 supplemental funds that may be used toward down payment and closing costs in conjunction
17 with other mortgage programs, including the Program, the Teacher Program, as well as the
18 County's HOME Program Homeownership Assistance Program (HAP), and to provide down
19 payment assistance for households with incomes up to 140% of statewide median (higher than
20 the income limits of those three programs) (collectively, the "Additional Programs") when used
21 in conjunction with any other mortgage program, subject to the income limits of such mortgage
22 program; and
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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
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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
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NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
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Section 1.
Each of the foregoing recitals is true and correct.
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Section 2.
The City hereby adopts the Program for the purpose of increasing the
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housing supply in the County and in the City and consents to the operation of the Program and
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the Additional Programs by the County with respect to all property located within the
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geographical boundaries of the City.
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Section 3.
The Cooperation Agreement between the County and the City (the
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"Cooperation Agreement"), in substantially the form attached hereto as Exhibit A, is hereby
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approved, and the Mayor and City Clerk are hereby authorized and directed to execute and
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deliver said Cooperation Agreement, for and in the name and on behalf of the City. The Mayor,
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with the advice and consent of the City Attorney, is authorized to approve any additions to or
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changes in the form of said Cooperation Agreement which they deem necessary or advisable,
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their approval of such additions or changes to be conclusively evidenced by execution by the
25 Mayor of said Cooperation Agreement as so added to or changed. The Mayor, with the advice
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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 offices 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
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SB2002:10641.1
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RESOLUTION OF THE MAYOR ANI) 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.
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Section 5.
This Resolution shall take effect from and after its adoption.
7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
8 Common Council of the City of San Bernardino at a
meeting thereof, held on the
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day of
, 2002, by the following vote to wit:
Ayes
Navs
Abstain
Absent
10 Council Members:
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ESTRADA
LIEN
MCGINNIS
DERRY
SUAREZ
ANDERSON
MC CAMMACK
Rachel G. Clark
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The foregoing resolution is hereby approved this
day of
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By:
t./lSS/fil City Attorney
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Judith Valles, Mayor
City of San Bernardino
SB2002: 10641.1
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 5 -b ~()d Item # 12-6(" Resolution #
Vote: Ayes 1-;) I .1\ - " Nays A--- Abstain-8-
Change to motion to amend original documents:
d 00,;)- \(\ (,
Absent , ~
Reso. # On Attachments: --===--- Contract term:
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NulVVoid After:
Note on Resolution of Attachment stored separately:-=
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTV By:
Date Sent to Mayor: 5 - 'I - 0 ;J-
Date of Mayor's Signature: 5-8-0;;l-
Date of ClerklCDC Signature; 5" -'1 -0 if
Reso. Log Updated; v"
Seal Impressed: tv"
Date MemolLetter Sent for Signature: bOA l',tTl'Nll(\)
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached; - Date Returned;
See Attached;
See Attached:
Request for Council Action & Staff Report Attached;
Updated Prior Resolutions (Other Than Below);
Updated CITV Personnel Folders (6413, 6429, 6433,10584,10585,12634);
Updated CDC Perso,nnel Folders (5557):
Updated Traffic Folders (3985, 8234,655,92-389):
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Copies Distributed to:
City Attorney /
Parks & Rec.
Code Compliance
Dev. Services
EDA
II'"
Finance
MIS
Police
Public Services
Water
Others;
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
VEARL V RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc,)
Ready to File: _
Date:
Revised 0 II 12/0 1