HomeMy WebLinkAboutR07-Redevelopment Agency
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I REA". OPl -...,. AGI!NCY.....SY FOR ~/COWCL AQ-ION
· From: Glenda Saul, Executive Director
Ot:
Redevelopment Agency
Subject: ORDINANCE ESTABLISHING A HOME
MORTGAGE FINANCE PROGRAM FOR THE
CITY OF SAN BERNARDINO - SECOND
READING
Date: November 8, 1985, 1985
Synopsis of Previous Commission/Council lCtion:
12/17/84 Resolution 84-552 authorized submission of an application to the Mortgage
Bond Allocation Commitee for Single Family Bonda in 1985.
9/85 Notified by the State that San Bernardino had been allocated $36,000,000
for the issuance of single Family bonds in 1985.
11/4/85 First reading of the Ordinance.
11/4/85 Approved current structure of the proposed 1985 issue.
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SECOND READING
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 PAin' 5 OF DIVISION 31 OF THE CALIFORNIA HEALTH AND SAFETY CODE AND
AUTHORIZING CITY OFFICERS TO IMPLEMENT THE PROGRAM
f!)Cl{fJ
Mayor and CoaDOIl Council
Recommended motion:
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Signature
GLENDA SAUL
Contact person:
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
N/A
Ward:
N/A
Project :
Date: November 18, 1985
Supporting data attached:
YES
No edverse Impact on City:
cncil Notes:
0774K/EB
Agenda Item No, t< 1
, CIII OF SAN BERNARDl8>> - RBQU.9r FOR COUNCIL dN
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75-0264
STAFF REPORT
At the meeting of November 4, 1985, the Mayor and Common Council had the first reading
of the Ordinance.
The City of San Bernardino has received a *36,000,000 allocation from the state to
issue a Single Family Mortgage Revenue Bond in 1985.
In order for the city to issue the bond, the Ordinance establishing a Home Mortgage
Finance Program must be adopted. The Mayor and Council adopted a aimilar Ordinance
last year as a Joint Powers Authority with the City of Indio. However, that Ordinance
would not be applicable to this year's issue since the City is planning to issue its
own bond.
The Ordinance stresses the need and importance of affordable housing in California.
San Bernardino is in an enviable position in the state. Most cities use Single Family
bonds to create low- and moderate-income housing for their cOlllllunities. Because the
cost of housing is less in San Bernardino, the City may use this enhancing financing
tool to develop up-scale housing projects and also to upgrade current housing stock.
At the meeting of November 4, Council also adopted a motion approving the current
structure of the 1985 Single Family Mortgage Revenue Bond.
Following is a recap of the proposed issue:
SINGLE FAMILY 1985
D~v~lftD~r 6IDRwI1 II of Unih. Loc:ation Pr; C:~ Rana~
1. Wnlow Woods $ 5,000,000 86 Pepper & Randall $73,990-$93,990
Rialto
2. Shadow Meadows 500,000 137 condo units SW corner of Olive & $81,900-$93,900
Irvingtonl 5.8.
3. NuTech 8,400,000 16 townhOOM!s 9th & Oel Rosa $55,500-$64,500
56 single San Bernardi no $81,900-$95,900
4. Security Pacific 360,000 7 W. Loyol. & Windsor $75,000
San Bernardino
5. Southpointe 5.000.000 Barton & W.te~n $89,900-$108,900
$19,260,000
IIDA
In-F; " 2,000,000 Enterpr; se Zone
Rehab-Remodeling 2.000 000 City Wide
$23,260,000
First Interstate
of Colorado 8.000.000 Existing
$31,260,000
The buyer .vst be a first time hOOM! buyer except for target area hOMeS and except for ten percent
of the aggregate amount of MOrtgage loans. Eligible incOOM!s ..y range frOM $27,000 to $49,000 for
buyers.
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2,232-2/11l3S/jm
10/30/85
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ORDINANCE NO.
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
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WHEREAS, the Mayor and Common Council of' the Ci.ty (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
o vital importance to the health, safety and welfare of the residents
of the State of California for the following reasons:
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(i) Decent hous ing
in helping people achieve
democratic society.
is an essential motivating force
self-fulfillment in a free and
(ii) Unsanitary, unsafe, overcrowded or congested
dwelling accommodations constitute conditions which cause an
increase in, and spread of, disease and crime.
(Hi) 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.
:0 Section 2. Authoritv 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
4C) mortgage market. The Act confers the authorization
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upon cities and counties to undertake a home mortgage finance
program and to issue revenue bonds to fund such program.
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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.
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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
4:) Agreements.
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Sect-ion 5.
Co~lianc@ wit.h Land Ose and RouRin~
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
c:> 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.
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I HEREBY CERTIFY that the foregoing
adopted by the Mayor and Common Counci 1
San Bernardino at a
held on the day of
the fOllowing vote, to wit:
Ordinance was duly
of the Cl ty of
meeting thereof,
, 1985, by
AYES:
Council Members
NAYS:
ABSENT:
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City Clerk
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The foregoing Ordinance has been duly passed, adopted and
approved this day of , 1985.
Approved as to form:
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City Attorney
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Mayor of the City of
San Bernardino