HomeMy WebLinkAboutR12-Redevelopment Agency
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REb..:VELOPMENT AGENCY. F\..QUEST FOR ",OMMISSION/COUNCIL ACTION
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From: Glenda Saul, Executive Director
Subject: JOINT PUBLIC HEARING
1985 YEAREND HOUSING REPORT
'__pt: Redevelopment Agency
Date: November 12, 1985
Synopsis of Previous Commission/Council action:
11-4-85
Mayor and Common Council adopted resolution setting the Public Hearing.
11-4-85
Community Development Commission adopted resolution setting the Public
Hearing.
Recommended motion: MAYOR AND COMMON COUNCIL
OPEN PUBLIC HEARING.
CLOSE PUBLIC HEARING.
a' MOVE TO ADOPT RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ACCEPTING A CERTAIN 1985 YEAREND REPORT OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
REGARDING HOUSING DEVELOPMENT AND LOW-INCOME HOUSING ASSISTANCE POLICIES AND
AUTHORIZING THE PUBLICATION THEREOF.
COMMUNITY DEVELOPMENT COMMISSION
b)
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO
ACCEPTING A CERTAIN 1985 YEAREND REPORT OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REGARDING HOUSING
DEVELOPMENT AND LOW-INCOME HOUSING ASSISTANCE POLICIES AND AUTHORIZING THE
PUBLICATION THEREOF.'
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Ignature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
N/ A
Ward:
Project: N/A
Date: November 18, 1985
Supporting data attached:
YES
No adverse Impact on City:
.' ...cil Notes:
0084G/EB
Agenda Item No. 6 J? ~
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CI\-/ OF SAN BERNARDI. ~O - REQUl.JT FOR COUNCIL AC .-'ON
I
STAFF REPORT
The Tax Reform Act of 1984 amends Section 103A of the Internal Revenue Code of 1954
and requires the preparation and consideration of a report which includes a statement
of strategies with respect to housing) development and low-income housing assistance
to be followed by goJernmental units issuing qualified mortgage bonds.
The Code requires both the City and the Agency to submit a copy of the report to the
U. S. Treasury Department before the end of the year.
The report is required in order for the City to request an allocation from the state
to issue a Single Family Mortgage Revenue Bond in 1986.
The Public Hearing was advertised in The Sun and a copy of the report is available for
public inspection in both the Redevelopment Agency and City Clerk's office. Copies of
the report were distributed to the Mayor and Common Council.
Staff anticipates submitting the report to the Treasury Department by the end of
November in order to submit our application for a Single Family Mortgage Revenue Bond
in 1986 to the state by early December. In this way San Bernardino will be higher up
on the allocation list for 1986.
0084G/EB
11-18-85
75.0264
".
SBEOOl-83(1,010-83)/1156S/cb
11/08/85
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF ,SAN BERNARDINO, CALIFORNIA, ACCEPTING A
CERTAIN 11985 YEAREND REPORT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, AND THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO REGARDING
HOUSING DEVELOPMENT AND LOW-INCOME HOUSING
ASSISTANCE POLICIES AND AUTHORIZING THE
PUBLICATION THEREOF
WHEREAS, the Tax Reform Act of 1984 amends Section 103A of
the Interna 1 Revenue Code of 1954, as amended (the "Code"), and Code
Section 103A(j) (5) (8) requires the preparation and consideration of
a report which shall include a statement of policies with respect to
housing,
development and low-income housing assistance to be
followed by governmental units in issuing qualified mortgage bonds
and certain other matters (the "Report"); and
WHEREAS, Code Sect ion 103A( j) (5) (A) requi res the Ci ty of
San Bernardino, California (the "City"),
and the Redevelopment
Agency of the City of San Bernardino (the "Agency") to submit a copy
of the Report to the United States Secretary of the Treasury on or
before the last day of the year preceding the year in which
qualified mortgage bonds are issued; and
WHEREAS, Section l.103A-2(1) of the Treasury Regulations
(the "Regulations") contains certain provisions pertaining to the
information which must be included in the Report and the applicable
procedures for the consideration and approval of the Report by the
City and the Agency including the requirement that the final form of
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the Report be published or made available to the public following a
public hearing thereon and that a copy of said Report be submitted
and received by the United States Secretary of the Treasury on or
before December 31, 1985; and
WHEREAS, the City Staff and the Agency Staff have submitted
to the Agency Secretary a copy of the Report as prepared ln
accordance with the Temporary Regulations; and
WHEREAS, the City Clerk has published notice setting a
public hearing for the review and consideration of the Report by the
City ln accordance with Code Section 103A(j)(5) and the Mayor and
Common Council of the City of San Bernardino, California (the "Mayor
and Common Council") has conducted said public hearing on
November 18, 1985; and
WHEREAS, it is appropriate
Council to consider the acceptance of
publication thereof in accordance with
the Regulations.
at this time for the City
the Report and authorize the
Code Sect ion 103A( j) (5) and
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. The notice
Mayor and Common Council regarding
of the public hearing of the
the Report as required pursuant
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to Code Section 103A(j)(5)(B) and the Regulations has been duly
published as prescribed by said Section.
Section 2. The Mayor and Common Council has considered
all oral and written comments at the public hearing held on this
date for the consideration and receipt of the Report by the City.
Section 3. The Mayor and Common Council hereby approves
the Report and accepts the receipt thereof. A copy of the Report is
attached hereto as Exhibit "A" and incorporated herein by this
reference. The Mayor and Common Council hereby authorizes and
directs City Staff and Agency Staff to prepare a summary of the
public comments and testimony which have been received by the City
in connection with the preparation, review and approval of this
Report and to include such summary in the Report as shall be made
available to the public on or before December 20, 1985, by the City
Clerk and the Agency Secretary on behalf of the Mayor in accordance
with Section 5 of this Resolution.
Section 4. The Mayor and Common Council constitutes the
elected legislative body of the City and the Mayor of the City is
hereby designated by the Mayor and Common Council to serve as the
applicable elected representative of the City. The Mayor and Common
Council hereby requests the Mayor ln cooperation with the Agency
Secretary and the City Clerk to cause the Report to be made
available for public inspection as required pursuant to Code
Section 103A(j)(5)(B) and the Regulations.
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Section 5.
The City Clerk,
in cooperation with the
Agency Secretary on behalf of the Mayor of the City, is hereby
authorized and directed to cause the Report to be made availabe for
public inspection on or before December 20, 1985. The City Clerk in
cooperation with the Agency Secretary is further authorized and
directed to submit a true and correct copy of the Report to the
Secretary of the United States Department of the Treasury and to
verify that said Report has been received by the Secretary on or
before December 20, 1985.
Section 6.
This
Resolution
sha II
take
effect
upon
adoption.
I HEREBY
adopted by the
San Bernardino at
held on the
the following vote,
CERTIFY
Mayor
a
that
and
the foregoing
Common Counci 1
resolution
of the
meeting
was duly
Ci ty 0 f
thereof,
1985, by
day of
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
day of
The foregoing resolution is hereby approved this
, 1985.
Mayor of the City of
San Bernardino
Approved as to form:
~1J4,',:"v
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss.
CITY OF SAN BERNARDINO )
I, SHAUNA CLARK, City Clerk
Bernardino, DO HEREBY CERTIFY that the
of San Bernardino: City Resolution No.
correct copy of that now on file in this
in and for
foregoing
is
office.
the City of San
and attached copy
a full, true and
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City of San Bernardino this day of
, 1985.
City Clerk
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EXHIBIT "A"
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1985 YEAREND REPORT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, AND THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO
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SBE 001-84/1,010/1166S/cb
11108/85
RESOLUTION NO.
I
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO
ACCEPTING A CERTAIN 1985 YEAREND REPORT OF THE
CITY OFI SAN BERNARDINO,. CALIFORNIA, AND THE
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO REGARDING HOUSING DEVELOPMENT AND
LOW-INCOME HOUSING ASSISTANCE POLICIES AND
AUTHORIZING THE PUBLICATION THEREOF
WHEREAS, I the Tax Reform Act of 1984 amends Section 103A of
the Internal Revenue Code of 1954, as amended (the "Code"), and Code
Section 103A(j) (5) (B) requires the preparation and consideration of
a report which shall include a statement of policies with respect to
housing,
development and low-income housing assistance to be
followed by governmental units in issuing qualified mortgage bonds
and certain other matters (the "Report"); and
WHEREAS, Code Section 103A(j)(5)(A) requires the City of
San Bernardino, California (the "City"),
and the Redevelopment
Agency of the City of San Bernardino (the "Agency") to submit a copy
of the Report to the United States Secretary of the Treasury on or
before the last day of the year preceding the year in which
qualified mortgage bonds are issued; and
WHEREAS, Section 1.103A-2(1) of the Treasury Regulations
(the "Regulations") contains certain provisions pertaining to the
information which must be included in the Report and the applicable
procedures for the consideration and approval of the Report by the
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City and the Agency including the requirement that the final form of
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the Report be published or made available to the public following a
public hearing tJereon and that a copy of said Report be submitted
. I .
and received by the Uni ted St a tes Secreta ry of the Treasury on 0 r
I
before December 31, 1985; and
,
WHEREAS, I City Staff and Agency Staff have submitted to the
I
Agency Secretary a copy of the Report as prepared in accordance with
,
, .
the Temporary Regulations; and
I
WHEREAS, I the Agency Secretary has published notice setting
,
a public hearing for the review and consideration of the Report by
I
the Agency in accordance with Code Section 103A(j)(5) and the
,
Community Development Commission of the City of San Bernardino (the
"Commi ss ion"), on' beha If of the Agency, has conducted sa id public
I
hearing on November 18, 1985; and
,
WHEREAS, it is appropriate at this time for the Commission
on behalf of the Agency to consider the acceptance of the Report and
authorize
the
publication
thereof
in
accordance
wi th
Code
Section 103A(j)(5) and the Regulations.
I
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING
,
,
ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,
I
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
,
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Section 1. The notice of the public hearing of the
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Agency regarding, the Report as required pursuant to Code
,
Section 103A(j)(5~(B) and the Regulations has been duly published as
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prescribed by said Section.
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,
Section 2.
The Commission on behalf of the Agency has
considered all oral and written comments at the public hearing held
on this date for the consideration and receipt of the Report by the
Agency.
,
Section 3 . The Commission on beha lf of the Agency
I
hereby approves the Report and accepts the receipt thereof. A copy
of the Report 1S attached hereto as Exhibit "A" and incorporated
herein by this reference.
The Commission on behalf of the Agency
hereby authorizes and directs City Staff and Agency Staff to prepare
a summary of the public comments and testimony which have been
received by the Agency in connection with the preparation, review
and approval of this Report and to include such summary in the
Report as shall be made available to the public on or before
December 20, 1985, by the City Clerk and the Agency Secretary on
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behalf of the Mayor in accordance with Section 5 of this Resolution.
,
Section 4. The City Council of the City of
San Bernardino, C~lifornia (the "City Council"), constitutes the
elected legiSlatiJe body of the Agency and the Mayor of the City is
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hereby designated Iby the Commission on behalf of the Agency to serve
as the applicab~e elected representative of the Agency. The
Commission on behalf of the Agency hereby requests the Mayor 1n
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cooperation with the Agency Secretary and the City Clerk to cause
the Report to be I made avai lable for public inspection as required
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pursuant to Code Section 103A(j)(5)(B) and the Regulations.
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Section 5. The Agency Secretary in cooperation with the
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City Clerk on behalf of the Mayor of the City, is hereby authorized
,
inspection on or
,
cause the Report to
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before December 20,
be made avai lable for public
and directed to
1985.
The Agency Secretary in
cooperation with the City Clerk is further authorized and directed
to submit a true and correct copy of the Report to the Secretary of
the United States Department of the Treasury and to verify that said
Report has been received by the Secretary on or before December 20,
1985.
Section 6.
This
Resolution
shall
take
effect
upon
adoption.
ADOPTED:
Approved as to Legal
Form and Adequac~:
jf-t:-E/f![ Y CO#,/f/S.c- L.
~~K~~
Counsel to the Co
By
slon
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or
.
I EXHIBIT "A"
I
1985 YEAREND REPORT OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, AND THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO
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SECTION 103A COMPLIANCE REPORT
I November 3D, 1985
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A. GENERAL
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On July 18, 1984, Congress enacted into law the Tax Reform Act of
1984. This 'Act imposes certain requirements on issuers of qualified
single famify mortgage bonds and mortgage credit certificates. One of
these requirements is that issuers publish a statement of their policies
with respect to housing, development. and low-income housing assistance
and report on their compliance, for the one-year period preceding the
date of the 'report, with the intent of Congress that qualified mortgage
bond issues 'and mortgage credit certificates assist lower income families
to afford home ownership before assisting higher income families. As the
Redevelopment Agency of the City of San Bernardino plans to issue
qualified single family mortgage bonds in 1 981f. the following report is
being published In order to comply with the requirements of the Tax
Reform Act of 1984 and the Regulations thereunder.
The City of San Bernardino was Incorporated on August 10, 1886. The
City operates under a charter form of government, directed by an elected
Mayor and Common Council. The Redevelopment Agency was established in
1952 pursuant to the Community Redevelopment law, codified as Part 1 of
Division 24 'of the California Health and Safety Code. The Redevelopment
Agency includes all redevelopment, economic development and community
development Ifunctlons administered by the City.
The City is authorized to provide financing for the construction and
occupancy of low and moderate Income housing. Accordingly, it operates
both single~family and multi-family programs, administers Federal housing
subsidies including Section 8 housing payments assistance under a -
cooperative lagreement with the Housing Authority of the County of San
Bernardino, IparticiPates in State housing programs, renders technical
assistance, ,and conducts other activities to promote an affordable supply
of decent, safe and sanitary housing in the City.
8. POLICIES AND GOALS
1. Housinq Policies and Goals
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The California State Legislature has found and declared that it
is necessary and essential that redevelopment agencies be authorized to
make long-term, low-interest loans through qualified mortgage lenders to
finance residential construction In order to encourage investment and
upgrade redevelopment project areas and Increase the supply of housing.
Unless redevelopment agencies intervene to generate mortgage funds and to
provide some form of assistance to finance residential construction, many
redevelopment areas will stagnate and deteriorate because owners and
investors are not able to obtain loans from private sources. (California
Health and Safety Code Section 33750.)
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The California State Legislature has additionally found and
declared that a program to provide residential construction financing
would accomplish the following:
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a.! Facilitate increasing the supply of urban housing and ease
the housing :shortage that exists in many parts of the state. (California
Health and Safety Code section 33751.)
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The Redevelopment Agency plans to issue qualified single family
mortgage bonds in 1985 in furtherance of the above-stated policies of the
California State Legislature and in conformance to the following policies
and goa 1 s : I
a. Use of Proceeds. The proceeds of the Bonds will be used
to finance new homes, refinance existing loans, and provide rehab home
improvement loans.
b. Targeting of Proceeds to Housing Type. The proceeds of
the Bonds will not be targeted specifically to new housing but will
include existing housing as well.
c. Determination of Need for Targeting. Due to the need to
provide mortgage revenue financing for (1) new developments, (2) infi11
housing, and (3) refinancing and/or rehabilitation of existing housing,
it was determined that the proceeds from bond financing should not be
targeted to only one type of housing.
d.
that no more
housing.
Method of Targeting Proceeds. Will conform to requirement
than 40 percent of the proceeds will be targeted to existing
e. Other Pertinent Information. None.
I
f. Relationship of Agency's Housing Policies to its
Development and Low-Income Housing Assistance Policies. One of the
Agency's primary missions is to provide decent, safe and sanitary housing
to low and moderate income families. Housing programs administered by
the City through the Redevelopment Agency are designed to finance the
construction and rehabilitation of housing to remedy code deficiencies,
to finance the purchase of new and existing homes by first time
homebuyers, 'and to assure the occupancy of decent, safe and sanitary
housing by families with lower incomes. Other Agency programs are
designed to meet special housing needs, e.g., elderly and handicapped.
According to the U. S. Department of Housing and Urban
Development, the San Bernardino area is one of t-he fastest growing
metropolitan areas of the natIon. Because of increasing need for new
homes, and the continuing Shortage of housing in San Bernardino, the
Agency has targeted over 80 percent of its financing in recent years to
new construction. Other housing programs have been targeted for
single-family housing rehabilitation (funded by HUD's Community
Development Block Grant program) and rental housing rehabilitation
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(funded by HUD's Rental Rehabilitation Program). Both of these are
entitlement grants applied for and administered locally by the Agency.
These programs themselves are targeted to serve primarily families of low
and moderatel income.
The bond financing provided through the issuance of
single-family mortgage revenue bonds complements the other housing
programs described above and all are reflected in the City's Housing
Assistance Plan approved by the U. S. Department of Housing and Urban
Deve10pment.1
2. Development Policies and Goals.
I
The California State Legislature has found and declared that it
is necessary, and essential that redevelopment agencies be authorized to
make long-term, low-Interest loans through qualified mortgage lenders to
finance residential construction in order to encourage investment and
upgrade redevelopment project areas and increase the supply of housing.
Unless redevelopment agencies intervene to generate mortgage funds and to
provide some! form of assistance to finance residential construction, many
redevelopment areas will stagnate and deteriorate because owners and
Investors are not able to obtain loans from private sources.
,
The Legislature further finds and declares that financing of
rehabilitation, as provided in this chapter, serves an essential public
purpose for the economic renewal of our cities. (California Health and
Safety Code Section 33750.)
The California State Legislature has additionally found and
declared that a program to provide residential construction financing
would accomplish the following:
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(a) Facilitate increasing the supply of urban housing and ease
the housing shortage that exists in many parts of the state.
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{b)~ Reduce pressures for suburbanization and thereby mitigate
many of the problems caused by urban migration, including
inefficient use of scarce energy resources and urban sprawl.
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(C)~ Stimulate urban building and construction activity and
thereby increase urban employment and improve the urban tax
base. (California Health and Safety Code Section 33751.)
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I~ is the intent of the Legislature, in enacting this chapter,
to strengthen the vitality and promote the completion of urban
redevelopment for the general public benefit. (California Health and
Safety Code Section 33752.)
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The Redevelopment Agency plans to issue qualified single family
mortgage bonds in 1985 in furtherance of the above-stated policies of the
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California State Legislature and in conformance to the following policies
and goals: 1
a.1 Targeting of Proceeds to Areas. $2,000,000 of the
proceeds of the Bonds will be targeted to specific areas.
b.1 Description of Target Areas. Targeted areas of the City
of San Bernardino include census tracts #4B, 49, 54, 55, 56, 57, 58, 59,
60 and 65.
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c. Selection of Target Areas. The target areas represented
by the census tracts enumerated above were selected based on census data
and housing 'data which indicated that these census tracts constitute the
areas where there is the greatest concentration of low and moderate
income families and where need for affordable housing and housing
rehabilitation is the greatest.
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d.1 Use of Targeted Proceeds. The proceeds of the Bonds whi ch
will be targeted to the areas described in b. above will be used in the
financing of, new homes built under the City's infill housing program and
for existing housing.
e. Other Pertinent Information. None
f.1 Relationship of the Redevelopment Agency's Development
Policies to its Housing and Low-Income Housing Assistance Policies.
Through the targeting of certain census tracts in the City of San
Bernardino, ~pecial programs are made available on a priority basis to
serve these ~reas, including single-family and multi-family housing
rehabilitation programs funded by HUD and the development of an overall
Housing Assi~tance Plan, as described above.
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The targeting of an amount of mortgage revenue bond proceeds to
these censusl tracts is a direct complement to these other programs.
3. Low-Income Housing Assistance Policies and Goals.
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The California State Legislature has found and declared that a
program to provide residential construction financing would accomplish
positions to reinhabit urban areas, thereby rendering these areas more
socially balanced and economically self-sufficient. (California Health
and Safety Code Section 33751.)
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The construction of federally assisted housing for low- and
moderate-income households is not a primary purpose of this chapter.
However, nothing in this chapter shall be deemed to prohibit financing of
federally assisted housing for low- and moderate-income households when
such housing' is consistent with the redevelopment plan and the loan is
director or indirectly insured. (California Health and Safety Code
Section 33752.)
In! order to issue qualified single family mortgage revenue
bonds, the Redevelopment Agency must apply to California Mortgage Bond
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Allocation Committee (CMBAC) for an entitlement and/or supplementary
allocation. I The entitlement allocation cannot exceed $20 million per
year and imposes no income restrictions on prospective mortgagees. For
bond issues 'over this amount, the Agency must apply for a supplementary
allocation which imposes the following income restrictions on prospective
mortgagees. I
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Proceeds of qualified mortgage bonds issued with supplementary
allocation must be used to provide mortgages to persons and families
whose incomes do not exceed 120 percent of median household income for
mortgagors who will be the first occupant of a home and median household
income for mortgagors who will not be the first occupant (except that the
issuer shall assure that no more than half of such funds shall be for
households whose income does not exceed 80 percent of such median
household income, and provided that this limit may be increased to 90
percent ofmedian household income if the legislative body of the issuer
finds that there are insufficient numbers of creditworthy persons whose
income does :not exceed 80 percent of median household income).
(California Health and Safety Code Section 50189(b).)
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The Redevelopment Agency plans to issue qualified single family
mortgage bonds in 1 986;'i n furtherance of the above-stated pol i ci es of the
California State Legislature and in conformance to the following policies
and goa 1 s : I
a. Tarqeting of Proceeds According to Income. $2,000,000 of
the proceeds of the Bonds will be targeted to the City's Enterprise Zone
area which Includes census tracts numbered 48, 49, 54, 55, 56, 57, 58,
59, 60 and 65. The remaining proceeds will be targeted to moderate and
median income families.
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The City's moderate and median incomes~ less
cities located in southern California making the majority of
stock within the city in the "affordable" range.
than other
housing
Low-income families means families earning 50 percent or less
of median income; moderate income families means families earning between
50 percent and 80 percent of median income. Median income is determined
by the Secretary of Housing and Urban Development and means $26,000 as of
May 1984.
b. Method of Targeting Proceeds. Under the Bond, the infill
housing program will be targeted to the Enterprise Zone which includes
the targeted census tracts described in a. above. 8y limiting this
program to this area, the proceeds of the bond financing will be targeted
to families of low or moderate income.
Proceeds for existing housing and/or rehabilitation will not be
targeted to any specific income group. Housing costs and incomes in the
City of San Bernardino are considerably lower than the median for this
particular ~egjon in the State of California.
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c. I Other Pertinent Information. Previous single family
Mortgage Revenue Bonds have been issued for the purpose of increasing
affordability of home ownership to families of lower income. However,
present highlinterest rates and high construction costs continue to make
it difficult for lower income families to qualify for mortgages even at
reduced interest rates.
ThJ Agency serves lower income families considering who is
eligible forla mortgage given those high costs and correspondingly high
qualification requirements. For example, it currently requires an income
in excess ofllOO percent of median to purchase a new moderately priced
home in San Bernardino. The City imposes limitations on prices which can
be charged for homes in developments funded by Mortgage revenue Bonds and
imposes limitations on incomes of mortgagors in compliance with
California law. Even with these limitations, serving lower Income
families below 80 percent of median is not always possible. To continue
to serve low~income families, the Agency may consider other types of
assistance in the future (i.e., downpayment assistance).
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d) I Relationship of the Redeveloment Agency's Low-Income
Housing Assistance Policies to its Housing and Development Policies ~
~_ . -I T r_ HI ill [,10.. Targeting housing assistance to those
areas of thelCity where a majority of low and moderate income families
live is consistent with the City's Housing Assistance Plan, its other
programs for housing rehabilitation assistance, and its Enterprise Zone
designation. The concentration of resources and assistance together with
a portion of the bond revenue from single-family mortgage revenue
financing constitutes a consistent and mutually supportive strategy for
neighborhood1revitallzation.
C. COMPLIANCE WITH PREVIOUS REPORT
The Redlvelopment Agency is in compliance with Its previous Housing,
Policies Report dated November 30, 1984.
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As discussed above, the Agency establishes income and sales price
limitations in all of its MRB programs based on an analysis of the
availabilitylof housing in various price ranges and on affordability
criteria. The affordability criteria take,into account current housing
prices and interest rates in effect at the time. The limits imposed meet
all legal requirements and are sufficient to serve those families who are
currently priced out of the non-tax exempt market. In recent years, this
approach has]resulted in the Agency generally serving families earning
less than $25,000 per year. This is the lower end of the homeowner
market as the State average home buyer is estimated to be earning a
substantially higher amount.
Last year the cities of San Bernardino and Indio issued under a
joint powers I agreement approximately $23,445,000 in single family
mortgage revenue bonds. Proceeds from the bonds are being used by the
Trustee to purchase, on behalf of the cities. mortgage loans secured by
first liens on residences located within the boundaries of either city.
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The origination period will end on November 1, 1986, with the option for
a one-year extension. Mortgage loans must be originated in general
conformity with the underwriting criteria of Verex Assurance. In
addition, noj secondary financing or refinancing will be allowed.
In keeping with the guidelines of the program, mortgage loans must
be made to first-time homebuyers, with the exceptions that: (i) mortgages
may be made to non-first-time homebuyers on homes that are located within
targeted areas (see locations of targeted areas above), and (ii)
mortgages may be made to non-first-time homebuyers provided that, as of
the day of funding, at least 90 percent of the aggregate amount of loans
purchased byl the Trustee from all Participants were made to first-time
homebuyers (Lender to certify). Residences must be occupied by the the
Mortgagor asl their principal place of residence within 60 days following
execution of the loan, and the Mortgagor must intend to occupy the
residence so, long as the loan is outstanding, which in no event shall be
less than two years.
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D. COMPLIANCE WITH INTENT OF CONGRESS
As discussed above, on December 21, 1984, the Redevelopment Agency
and the Cityl of Indio under a joint powers agreement issued Single-Family
Mortgage Revenue Bonds in the aggregate principal amount of $23,445,000
(the "1984 Bonds") in an effort to assist lower-income families to afford
home ownership. As of November 30, 1985, $23,142,150 of the Bond
proceeds remain available for use. The following information is provided
wi th respectl to the 1984 Bonds:
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1. Method of Distributinq 1984 Bond Proceeds. The Bond proceeds
were distributed by allocation to participating developers. Each
developer has a drawdown schedule of two years. ~ 20 percent of the
total amountlof mortgages,be used in target areas.
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2. Assistance to Lower-Income Families. The proceeds of the 1984
Bonds assisted lower-income families before assisting higher-income
families by:1 restricting the income of eligible participants to 120
percent of the county median income and by requiring of a five percent
down payment'.
That the home:
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a.1 Is a single family, attached or detached structure, a
single family condominium unit, or a single family unit in a planned unit
development., the construction of which is 100 percent complete. A
Certificate of Occupancy or its equivalent, issued by the City, shall be
conclusive as to the completion of the home.
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b. Has an Acquisition Cost not exceeding
Non-targeted areas: new $121,660
existing $129,470
targeted areas: new $132,720
existing $141,240
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If the home is subject to a ground lease, then the capitalized
value (at ~ discount rate equal to the yield on the bonds) of the ground
lease has been included in the Acquisition Cost.
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I c. Is located within the boundaries of the Cities of San
Bernardino or Indio, and the land does not provide, other than
incidentally, a source of income to the borrower, and is not subject to
further subdivision.
3. Income Levels.
For mortgagors purchasing new homes, the total aggregate
incomes of all adult persons that will reside in the subject property
does not exceed $40,714. For mortgagor's purchasing existing properties,
at least 20 percent of the total principal amount of mortgages must have
been made to Mortgagors whose household income does not exceed $29,857.
The remainder of the Lender's allocation for existing homes must be made
to mortgagors whose household income does not exceed $32,572.
E. SUMMARY OF HEARING COMMENTS
A public hearing on the proposed Policy Report was duly noticed and
held on November 18, 1985. The following comments were received:
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This report is submitted by the undersigned elected representative
of the Redevelopment Agency.
[Applicable Elected Representative)
[Tit 1 e]
[SEAL]
ATTEST:
[Title]
EB:def:0747K
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