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HomeMy WebLinkAboutS4- Economic Development Agency •'s ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION FROM: BARBARA J.LINDSETH SUBJECT: SINGLE-FAMILY MORTGAGE Acting Director REVENUE BOND DATE: February 1, 1995 --------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On January 31, 1995,the Housing Committee approved participation in the County of San Bernardino's application to the State of California for a Single-Family Mortgage Revenue Bond and recommended forwarding same to the Conuuunity Development Commission. --------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Mayor and Common Council) MOTION: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA,AUTHORIZING APPLICATION TO THE, CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE TO PERMIT THE ISSUANCE OF QUALII IED MORTGAGE BONDS. Administrator BARBARA J.LINDSETH Acting Director --------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s):Barb ara J.Lindseth/Adam 13.Eliason Phone: 5081 Project Arca(s): Ciri-xwide Ward(s): All Supporting Data Attached: Statl'Reporl:Resolution FUNDING Rf:QUIREMENTS: Amount:$ N/A Source: N/A Budget Authority: N/A --------------------------------------------------------------------------------------------------------------------------------------------- Council Notes: ---------------------------------------------------------------------- BJL:ABE:paw:rvenubnd.cdc COUNCIL MEETING AGENDA Meeting Date: 02/06/0 ,li!5 Agenda Item No: 6 41 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------------- SINGLE-FAMILY MORTGAGE REVENUE BOND The County of San Bernardino Department of Economic and Community Development is pursuing an innovative program for first-time home buyers. The County has requested the City of San Bernardino to participate in the application to the State for a $80,000,000 Single-Family Mortgage Revenue Bond. The bond is to be issued in the Spring of 1995 and is being underwritten by the investment banking firms of Kinsell, ONeal, Newcomb and De Dios, Inc., and George K. Baum& Company. The County and its participating cities can request from the State of California, up to $20,000,000 each and hopes to receive a total allocation of$80,000,000. The following is the list of incorporated cities which will be adopting a Resolution, Cooperative Agreement and/or assignment of allocation as scheduled as agenda items between January 23, 1995 and February 14, 1995: Barstow Montclair Chino Apple Valley Upland San Bernardino 29 Palms Fontana Yucaipa Colton Chino Hills Rialto Grand Terrace Victorville Highland Big Bear Lake Hesperia Yucca Valley Needles Ontario Redlands Loma Linda Adelanto Rancho Cucamonga This allocation will be utilized throughout the entire County and within all the participating cities. All costs of issuance will be provided through a premium pricing on the bonds and, if necessary, a small fee from participating lenders. The County will issue the bonds and act as the Administrator along with the firm of Urban Futures. The payment for the administration of the program will come from the home buyer and will be for reimbursement of staff time and not for revenue generation. There will be no cost to the City of San Bernardino for our participation. Under Federal guidelines a portion of the bond proceeds will be reserved to the City of San Bernardino for low income target areas for a certain period of time. The amount of the reservation depends in large measure upon the amount of the final allocation and upon a formula for the low income target areas. ---------------------------------------------------------------------- BJL:ABE:paw:rvenubnd.cdc COUNCIL MEETING AGENDA Meeting Date: 02/06/94 Agenda Item No: STAFF REPORT SINGLE-FAMILY MORTGAGE REVENUE BOND January 31, 1995 PAGE - 2 - ------------------------------------------------------------------------------------------------------------------ The proceeds of the bonds will be provided for a thirty (30)year fixed rate mortgages to low- moderate income families. The mortgages will be below market rates and the bond structure also allows for down payment assistance in the form of a contribution of four percent (4%). This can be used to fund either the down payment, temporary buy down or allowable closing costs. As of the week of January 9, 1995, the following examples applies: Premium Loans Par Loans Conventional Loan Rate 8.65% 8.00% 9.25% Down Payment Assistance 4.00% N/A N/A Thus, if a homeowner wanted a contribution for a down payment assistance they would receive a loan rate of 8.65%. If, however, they did not want the contribution they would have an 8.00% loan rate. The bond structure also offers an option to reduce the loan rate on bond proceeds which are not yet funded into loans, if the prevailing market interest rates decline. This is an important option which enhances the usefulness of the bond proceeds during the entire origination period. Lenders will reserve funds for loans on a first-come first-served basis. The following lenders have signed offers to participate: North American Mortgage Guild Mortgage Crossland Mortgage Kaufman&Broad Mortgage Countywide Funding Neighborhood Housing Services Directors Mortgage Norwest Mortgage CTX Mortgage Hammond Company Weyerhaeuser Mortgage Funders Mortgage Southwest Colonial Mortgage The City benefits in its participation with the County in three (3) distinct ways: 1. Lower percentage costs of issuance are achieved with a larger bond issue than if the ---------------------------------------------------------------------- BJL:ABE:paw:rvenubnd.cdc COUNCIL MEETING AGENDA Meeting Date: 02/06/94 Agenda Item No: STAFF REPORT SINGLE-FAMILY MORTGAGE REVENUE BOND January 31, 1995 PAGE- 2 - ------------------------------------------------------------------------------------------------------------------ City of San Bernardino attempted an exclusive $20,000,000 bond measure. 2. Potentially greater availability of loan proceeds with the City(i.e., it can draw the entire $80,000,000.. 3. No City staff costs or time are required for the administration of this program. Based upon the significant heretofore mentioned benefits to the community, Agency staff recommends adoption of the form motion. BARBARA J. LINDSETH, Acting Director Development Department ---------------------------------------------------------------------- BJL:ABE:paw:rvenubnd.cdc COUNCIL MEETING AGENDA Meeting Date: 02/06/94 Agenda Item No: PFR-19-2001 17:09 SECO ECD 909 388 0920 P.02i08 Planning Affordable • Housing, January 24, 1995 Inc. Cities listed; �Y Agreements listed FROM: THOMAS R. LAURIN, Director Department of Economic and Community Development SUBJECT: RESOLUTION AUTHORIZING APPLICATION TO THE STATE" OF CALIFORNIA DEBT LIMIT ALLOCATION COMMITME RECOMMENDATION. Adopt resolution approving and authorizing application to the state of California Debt Limit Allocation Committee to permit the issuance of Qualified Mortgage Bonds; approving Bond Counsel and Investment Bankers; authorizing publication of notice of public hearing regarding issuance of Qualified:Mortgage Bonds; and approving and authorizing the execution of Cooperative Agreements between the County of San Bernardino and the following cities:.. 'AGREEMENT 'N0. AGREEMENT N0. Town of Apple Valley 95-31 Needles 95-43 Barstow 95-32 Ontario 95-44 Big Bear Lake 95-33 Rancho Cucamonga 95-45, Chino 95-34 Redlands;; 95-46 Chino Hills 95-35 Rialto 95-47 Colton 95-36 San Bernardino 95-48 Fontana 95-37 Twentynine Palms 95-49 Grand Terrace 95-38 Upland 95-50 Hesperia 95-39 VictorvMe 95-51 Highland. 95-40.,. Yucaipa,, 95-52 Loma Linda 95-41 Town of Yucca Valley 95-153 Montclair 95-42 BACKGROUND INFORMATION: Beginning'in 1980 the Counry issued its first Single- Family Mortgage Revenue Bond issue which provided below market interest rate financing for over 400 bouseboldi Subsequent to the 1980 financing, the County issued bonds in 1982, 1983, 1984, 1985, 1988, 1989 and 1990. After 1990 conventional mortgage interest rates declined to a level whereby Single-Family Mortgage Revenue Bonds were no longer as attractive as in previous years. However, with the recent rise in interest rates, lenders and developers have requested that the County sponsor a Single-Family Mortgage Revenue Bond Issue. Preliminary indications of interest from lenders and developers are in excess of 100 million dollars. With Resolution: Action of the Board of Supervisors cc: ECD-Julie Hemphill RESOLUTION NO. 95-09 State. Debt Limit Allocation APPR•OV F SUPERVISORS Committee c/o BCD Bond Counsel c/o BCD , CO . r� RDINO County Counsel-St. ' John' MOTION ` �' O JJECOND GSG 6 File EARLENE' S OARD . Wf DATED : 'N TLU 4-kin 0 C0 ITEM 11 APR-19-2001 17: 10 SBCO ECD 909 388 0920 P.03i08 RESOLUTION AUTHORIZING APPLICATION TO THE STATE OF CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE January 24, 1995 Page 2 of 2 REASON FOR RECOMMENDATION: The adoption of the resolution is required under Section 8869.80, Cbapter 11.8 of Division I of Title 11 of the Government Code. REVIEW BY OTHERS: The resolution was prepared by.Bond Counsel (Kutak Rock) and was reviewed by Deputy County Counsel Paul St. John on January 12, 1995. FINANCIAL DATA: The application fee of 1016 of the allocation requested will be provided by the lenders and developers. Thus, this action has no impact on the County General Fund or the Community Development Block Grant. PRESENTER: Thomas R. Laurin, Director, Ext. 4594. JANUARY 24, 1995 ITIH 11 APR-19-2001 17: 10 SBCO ECD 909 388 0920 P.04i08 COUNTY OF SAN BERNARDINO wr RESOLUTION NO. 95- 09 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO APPROVING AND AUTHORIZING APPLICATION TO THE CALIFORNIA, DEBT LIMIT ALLOCATION COMAMTEE TO PERMIT THE ISSUANCE OF QUALIFIED MORTGAGE BONDS; APPROVING BOND COUNSEL, AND RpMTMENT BANKERS; AUTHORIZING PUBLICATION OF NOTICE OF pUBLdC HEARING REGARDING ISSUANCE OF QUALIF= MORTGAGE . BONDS; AND APPROVING AND AUTHORIZING THE EXECUTION COOPERATIVE AGREEMENTS BETWEEN THE COUNTY OF SAN BERNARDINO AND VARIOUS CITIES On Tuesday, January 24, 1995, on motion of Supervisor Riordan , duly seconded by Supervisor Eaves ,and earned,the following resolution is adopted. RESOLVED,by the Board of Supervisors (the 'Board')of the County of San Bernardino (the or ounty) that; •j WHERF,AS, there is a shortage in the County._Qf. San Bernardino (the 'County') of decent, safe and sanitary housing particularly of housing afforded by persons in the lower end of the purchasing spectrum, and a consequent need to encourage the construction of homes affordable by such persons and otherwise to increase the housing supply in the County for such persons; and WHEREAS, the Board of Supervisors of the County has adopted Ordinance No. 2496 on November 17, 1980, declaring its intent to engage in a home mortgage finance program (the -Program-) pursuant to Chapters 1 through-5 of Part 5,of.Division 31 of the Health and Safety Code of the State of California (the 'Act-) and to issue bonds and mortgaggSredit certificates pursuant to the Act i furthemce of the Program; and WHEREAS, County's Department of Economic.,and Community,DeYelopment (the -Department) has requested cities within the boundary of the County of San Bernardino that are interested in participating in the Program (the "Cities,") express such interest by finding and determining that it is in the best interest of such Cities to,adopt the Program and to consent to the operation of the Program by- the County,within the geographic boundaries of the Cities pursuant to the Act and the Department expect such Cities to participate in the Program; and aurobs:ccrssus __ APR-19-2001 17: 10 SECO ECD ti0y 05� ���� r•��i�)�i RESOLUTION NO. January 24, 1995 Page 2 of 5 WHEREAS, Section 146 of the Internal Revenue Code of 1986 (the 'Code') limits the amount of qualified mortgage bonds that may be issued in any calendar year by entities within a state and authorizes the legislature of such state to provide the inethod of allocating authority to issue qualified mortgage bonds within such state; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986 acquires that the County bold a public hearing prior to giving public approval of the issuance of the qualified mortgage bonds. vjHERFAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of California governs the allocation in the State of California (the 'State') of the state ceiling established by Section 146 of theme a among governmental units in the having the authority to issue qualified mortgage bonds, WHEREAS,, 8869.85 of the Government Code requires a local agency to Me an application for a portion of the state ceiling with or upon the direction of the California Debt Limit Allocation Committee ('CDL.AC") prior to the issuance of qualified mortgage bonds or mortgage credit certificates; and WHEREAS,.it•is expected that various Cities will determined to assign to the County pursuant to Section 8869.85(d) of the Government Code,any:portion of the.State ceiling for private activity bonds which.will be allocated to each of them on or prior to December 31, 1995 by CDLAC for qualified mortgage bonds; and NOW, TkMREFORE, BE TT ORDERED by the-Board of Supervisors-of the County of San Bernardino as follows: : Section 1. The Cooperative Agreements, dated as of January 1, 1995, between the County and the Cities (the 'Agreements'), in the form presented to this meeting, are hereby approved and the Chairman of the Board of Supervisors (the"Chairman'), or the Director of the Department of Economic and Community Development(the"Director'), or the Deputy Director of the Department of Economic and Community Development, Housing Development and F'uMce Division, (the 'Deputy Director"), is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Agreements. The Chairman, the Director or the Deputy Director, with the advice and consent of County Counsel, is authorized to approve any additions to or changes in the f prms`othe.Agreements deemed necessary or advisable, approval of such additions or changes to be raonclusively evidenced-by execution by the Chairman, the Director,_or the Deputy Director of the Agreements as so added to or changed. pull/pbS96Rili2 �s PFR-19-2001 17: 11 SECO ECD 909 Oc 09'20 P.06/08 RESOLUTION NO. 95-09 January 24, 1995 Page 3 of 5 The Chairman, the Director or the Deputy Director, with the advice and consent of County Counsel, is further authorized to enter into such additional agreements with the Cities, execute such other documents or take such other actions as such official may, deem necessary or appropriate to carry out the purpose and intent of the Agreements. The final selection of cities cog with the County in connection with the Program, including the addition of additional cities as cooperating cities, shall be made in consideration of the homes being financed under the program, and the Chairman, the Director and the Deputy Director is authorized to enter into or continue cooperative agreements with such participating cities in substantially'the form of the Agreement with such changes or additions as approved by the Chairman, Director or Deputy Director, with the advice and consent of County Counsel. Section 2. The Lender Deposit Agreement in the form presented to this meeting is hereby approved and the Chairman, or the Director, or the Deputy Director, is hereby authorized and , directed, for and in the name and on behalf of the County, to execute and deliver an agreement in substantially said form with such changes or additions as approved by the Chairman, Director or Deputy Directof vwith the advice and consent of County Counsel, with each lender desiring to participate in the Program and making deposit referred to therein. Section 3. The Chairman, or the Director, or the-Deputy.Director, is hereby authorized and directed, for and in the name and on behalf of the County, to submit an application, and such other documents as may be required, to CDLAC pursuant w Government Code Section 8869.85 for the maximum allocation permitted to a local agency for qualified mortgage bonds. Section 4. ' The Chairman, or the Director, or the Deputy Director, is hereby authorized and directed, for and in the name and on behalf of the County, to accept the assignment by the Cities of any allocation for qualified mortgage bonds which the Cities receive on or before December 31, 1995 from CDLAC pursuant to Section 146 of the Code, Section 8869.85 of the Government Code and Section 4 of the Agreements. Section S. An amount up to one percent(I%)of the requested allocation is hereby authorized to be placed on deposit, and the Director, or the Deputy Director, on behalf of the County, is authorized to certify to CDLAC that such funds are avallable. Section 6. Philip Nelson Lee of Kutak Rock is hereby appointed as bond counsel ("Bond Counsel') for the County in connection with the issuance, sale and delivery of the Bonds. auosrnsu 3 nh k-iy-Gbbl 1 �: l2 SECO ECD 509 386 0920 P.07/08 RESOLUTION NO. 9 5-09 January 24, 1995 Page 4 of 5 - - ,T= on 7. ICinsell, O'Neal, Newcomb & De Dios is hereby appointed as the investment banker (the -investment Bankers') for the County in connection with the issuance, sale and delivery of the Bonds. Section & The Chairman, or the Director, or the Deputy Director, is hereby authorized and directed, for and in the name and on behalf of the County, to publish a notice of public hearing concern the approval of the issuance of the qualified mortgage bonds in the form presented herewith pursuant to the terms and conditions set forth in Section 147(fl of the.Internal Revenue Code of 198& Section 9 Officers and employers of the County are hereby authorized and directed,jointly and severally, for and in the name and on behalf of the County, to do any and all things necessary or advisable in order to consummate the issuance of the mortgage credit certificates and the issuance, sale and delivery of the qualified mortgage bonds and otherwise to effectuate the purposes of this resolution, and an actions previously taken by such officers and employees in connection with tie establishment of the Program and-the issuance of the:mortgage credit certificates and the issuance, sale and delivery of the qualified mortgage bonds, including the submission of applications to CDLAC and the acceptance of deposits from lenders, are hereby ratified and approved. Section 10. This Resolution shall take effect immediately upon its adoption. o�iuobs:ou�tt� 4 APR-19-2001 17: 13 SBCO ECD r.ejolVio RESOLUTION NO. January 24, 1995 Page 5 of 5 The foregoing resolution was passed and adopted by the Board of Supervisors on January 24, 1995, by the following vote: AYES: SUPERVISORS: Mikels Riordan, Walker, Eaves, Turoci NOES: SUPERVISORS: None ABSENT: SUPERVISORS: None s s t • • r ' STATE OF CALIFORNIA ) )ss COUNTY OF SAN BERNARDINO) I, EARLF.•NE SPROAT, Clerk of the Board of Supervisors a f dw County of an Ber , California, hereby certify the foregoing to be a full, true an copy 2th 1995. record action as the sama appears in the Official Minutes at its meeting of January EARLENE SPROAT, Clerk of the Board of Supervisors of San Bernardino County By: eputy Approved as to form: 9 og S trp$�D e� rs ALAN K. MARKS a� COUNTY COUNSEL.... cn BT.149524.�, Paul }m, 1 �'�Rt�IISO G.3 Date' oifU06S:o6rt�yi.Z t . . "' TOTAL P.08