HomeMy WebLinkAboutS02-Community Development
CITO OF SAN BERNARDIO - REQUEO" FOR COUNCIL AC'ryN
From:
Kenneth J. Hen3ersal, ~OMIH. OFiJbject:
C'nmInrl.ty Devel"l-"""'/t 1988 J1130 All 8: 04
APPR:NAL OF APPLICATIQ{ '10 KRl'-
Gl\GE AND 'l?X U<9JlT AU.OCA'l'IQ{
CXMfiTI'EE AND 'lRANSFER OF suaI
=~ '10 CXXlNlY OF SAN p.-/
Dept:
Data:
June 28, 1988
Synopsis of Previous Councilection:
None
Recommended motion:
Adopt Resoluticn
Contact person:
Ken Henderson/MaUrice Oliva
Phone:
5065
Supporting data attached:
staff Report
Ward:
1-7
FUNDING REQUIREMENTS:
Amount: N/A
Source: (Acct. No.! N/A
(Acct. DescriDtionl . N/A
Finance:
Council Notes:
75-0262
Agenda 'tern No S - ~
CI10 OF SAN BERNARDI(J) - REQUU FOR COUNCIL AC'())N
STAFF REPORT
Evmy year the state Ibrtgage and Tax Credit Allocatial O:mIIittee allocatE
partialS of the state bcniin;J cap to political subdivisiaw of the state.
For 1988, the state has allocated up to $20,000,000 each to loc:al
govemments with pqW.atiaw of 250,000 or less. '!he alloc:atiat can be used
to finance m'ivate activity I:x:lrDs for IY"OIWIlArcial, hnJstrial and resident:ia1
p.u:pcsas. A loc:al gcvemment IIIJSt reserve a partim or all of its
allocatim within a specified timeframe.
To date, the City has not received any ~icatiaw for martgage bcni
financin]' or for IY"OIWIlArcial and imustria1 uses, meanin;J the City allocatim
of $20,000,000 will be reallocated to ather jurisdictiaw which can use the
bon:ting authority i.........ni"tely. Last~, staff received a request fran the
<bmty of san Bemardino asJdn;J the City to transfer to the <bmty its 1988
allocatim for use by the <bmty within the COl:),">L..tel:JcAJmarles of the
City. 'nio bane h,i' Mn, Forecast Haoes and C<:ex Haoes are in
oanstruc:ticn or iIL~ to I:lui1d hcmes in the City. A third entity,
Califomia Financial Cmpolatim, ilL' ",ses to use a portim of the
allocatim to make "spot" mortgage loans t:hroogha1t the City.
It is iDportant: to note that unlike the III1ltifamily martgage reverue bcni
P-Vlp-CIIU ~ bcni I='-~ are used traditimally for ccnrtzuct:i.m or
permanent financiIg, the bcni ilL' ",-.-1.. under the siIgle family J:'LVlp-CIIU are
used for martgage financlrq which provides below marlcet interest ratE to
first-time ~JyeI'S. 'Ibis type of :reveme soorce makes it III.Ich ......ier for
first-time Jv-1WllerS or hooseholds which have not owned a bane in three (3)
years to c;pUify for mortgage financlrq.
As a ClClI'rlitim of transferrin]' its allocatim to the County, the City has
stipllated in the attadled Cocperative ~..........It that the <bmty and each
developer "':lL -T to OCIIply with the draft general plan and Interim Policy
1h-o,'"""'It. FUrther, the City has additimally Fipuated that the O:unty and
each developer agree to OCIIply with the devel~1t stamards ClCIltained in
the VerdEm:lnt Area Plan (pages 95-156) and SIWIElllet1ted by acti.m of the
Mayor and 0.,.,.., cnmcil m May 23, 1988.
'!he ............... this it-...... has been Dl""""'" m the !'ll......,_", ~ is that the
state Mnrt-",.,.". Bcn:i and Tax CrAt'lit Allocatim lhmli++.... is meetina Drior to
the JUlv 19. 19~8 meetina of the Mavor and n .....1'\ Ch1\'1t'!i1. FUrther. if the
state ~line is not met b\T the Citv and thmt-v. as nnt-M .......1'1-. the Citv
will ,...... its riaht to use its $20,000.000 al,IY">Ot-i...... 'Ibis itsn _.. the
rean;.ErlllClJt:s for 51"""''''''''''*''' 1laenda items as set forth inSectim NCB) of
n..n... LllCllt Direct T ..t+..... Number 5.
I re........1ICl"Xi adc:ptim of the attached resolutim.
~~
Director ~f Chml1rrl.ty el~lt
KJlJ,llab/1046
6-28-88
75~0264
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
o
o
o
RESOWTION NUMBER
RESOWTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
APPLICATION TO THE MORTGAGE BOND AND TAX CREDIT ALLOCATION
COMMITTEE FOR AN ALLOCATION FOR THE ISSUANCE OF QUALIFIED
MORTGAGE BONDS AND THE TRANSFER OF SUCH ALLOCATION TO THE COUNTY
OF SAN BERNARDINO, APPROVING A HOME MORTGAGE FINANCE PROGRAM IN
COOPERATION WITH SUCH COUNTY AND AUTHORIZING THE MAYOR, CITY
ATTORNEY AND CITY CLERK TO EXECUTE FOR AND ON BEHALF OF THE CITY
A COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND
THE CITY.
WHEREAS, there is a shortage in the County of San Bernardino
(the "County") and in the City of San Bernardino (the "City") of
decent, safe and sanitary housing, particularly of housing
affordable 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 and in the city for such persons;
and
WHEREAS, the Board of Supervisors of the County has adopted
an ordinance declaring its intent to engage in a home mortgage
finance program (the "Program") pursuant to Chapters 1-5 of Part
5 of Division 31 of the Health and Safety Code of the State of
California (the "Act") and to issue bonds pursuant to the Act to
provide funds for the Program; and
20
WHEREAS, the Common Council of the City of San Bernardino
21
determines that it is in the best interest of the City to adopt
22
the Program and to consent to the operation of the Program by the
23
County within the corporate boundaries of the City pursuant to
24
the Act; and
25
26 WHEREAS, Section 146 of the Internal Revenue Code of 1986, as
27 amended (the "Code") limits the amount of qualified mortgage
bonds that may be issued in any calendar year by entities within
28
6-28-88 1
o
o
o
o
1 a state and authorizes the governor or the legislature of such
2 state to provide the method of allocation within such state; and
3 WHEREA~, Chapter 11.8 of Division 1 of Title 2 of the
4 Government Code of the state of California (the "Government
5 Code") governs the allocation of the state ceiling (as that term
6 is defined in the code) among governmental units in the state of
7 California having the authority to issue qualified mortgage
8 bonds; and
9 WHEREAS , Section 8869.85 of the Government Code requires a
10 local agency to file an application with the Mortgage Bond and
11 Tax Credit Allocation Committee prior to the issuance of
12 qualified mortgage bonds; and
13 WHEREAS, the city has determined to assign to the County
14 pursuant to Section 8869.85(d) of the Government Code, the total
15 amount, if any, of authority to issue qualified mortgage bonds
16 allocated to the City from the state ceiling; and
17 WHEREAS, one percent (1%) of the amount of the allocation to
18 be requested by City is to be held in an escrow account, pursuant
19 to Section 8869.84 of the Government Code and the regulations of
20 the Mortgage Bond and Tax Credit Allocation Committee.
21 NOW, THEREFORE, BE IT RESOLVED by the Mayor and Common
22 Council of the City of San Bernardino, as follows:
23 SECTION 1. Each of the foregoing recitals is true and
24 correct.
25 SECTION 2. The Director of Community Development is hereby
26 authorized, on behalf of the City, to submit an application, and
27 such other documents as may be required, to the Mortgage Bond and
28 Tax Credit Allocation Committee for an allocation up to
6-28-88 2
o
o
o
o
1 $20,000,000 for application towards the issuance of qualified
2 mortgage bonds.
3 SECTION 3. It is hereby authorized that, upon receipt, the
4 allocation authorized to be requested hereby be transferred to
5 the County, which will issue qualified mortgage bonds and use the
6 proceeds thereof in order to induce the origination of home
7 mortgage loans for qualifying persons residing within the
8 corporate boundaries of the City. The Mayor of the City of San
9 Bernardino or designee, is hereby directed to take such steps and
10 execute such documents as are necessary to effect the transfer of
11 any allocation of the state ceiling received by the City pursuant
12 hereto to the County.
13 SECTION 4. The City hereby adopts the Program for the purpose
14 of increasing the housing supply in the County and in the City
15 and consents to the operation of the Program by the County with
16 respect to all property located within the geographical
17 boundaries of the City.
18 SECTION 5. The Cooperative Agreement between the County and
19 City (the "Agreement"), in substantially the form attached hereto
20 as Exhibit "An, is hereby approved, and the Mayor, City Attorney
21 and City Clerk are hereby authorized and directed to execute and
22 deliver said Agreement, for and in the name and on behalf of the
23 City. The Mayor, with the advice and consent of the City
24 Attorney, is authorized to approve any additions or changes in
25 the form of said Agreement which they deem necessary or
26 advisable, their approval of such additions or changes to be
27 conclusively evidenced by execution by the Mayor of said
28 Agreement as so added to or changed. The Mayor, with the advice
6-28-88 3
o
o
o
o
1
2
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
3
4
5 the Agreement or to cooperate in the implementation of the
6
7
8
necessary or appropriate to carry out the purpose and intent of
Program.
SECTION 6. This Resolution shall take effect from and after
its adoption.
I HEREBY CERTIFY that the foregoing resolution was duly
9
adopted by the Mayor and Common Council of the City of San
10
Bernardino at a
11
12
meeting thereof, held on the
, 1988, by the following vote, to wit:
day of
13
14
15
16
17
18
19
20
21
22
23
Councilpersons
AYES:
NAYES:
ABSENT:
CITY CLERK
The foregoing resolution is hereby approved this
, 1988.
day of
24 Approved as to form
and legal content:
25 . /i.N.u.~.4.1~. 1
26 ~~;~~~
27 KJH/lab/1044
28
Mayor, City of San Bernardino
6-28-88
4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
o
o
o
~XH~.D~:I ~
COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO
AND THE CITY OF SAN BERNARDINO.
THIS COOPERATIVE AGREEMENT (this "Agreement"), made and
entered into as of July 1, 1988 by and between the County of San
Bernardino, a political subdivision of the State of California
(the "County"), and the city of San Bernardino, a political
subdivision of the state of California (the "City").
H.I:IH~~~~~H
WHEREAS, the County has determined to engage in a home
mortgage finance program pursuant to Chapters 1-5 of Part 5 of
Division 31 of the Health and Safety Code of the State of
california (the "Act") to make or acquire, directly.or
indirectly, loans to finance the acquisition of homes in the
County, all as provided for in the Act (the "Program"); and
WHEREAS, the County, pursuant to the Act, has adopted the
Program by Ordinance Number 2496 and has determined to cooperate
with the City pursuant to the Act in the exercise of its powers
under the Act for purposes of the Program;
NOW, THEREFORE, in consideration of the mutual co~venants
hereinafter provided, the parties hereto agree as follows:
SECTION 1. The terms used in this Agreement shall, for all
purposes of this Agreement, unless otherwise defined herein, have
the meanings assigned to such terms in the Act.
SECTION 2. The County agrees to undertake the operation of
the Program within the boundaries of the City, including the
issuance by it of revenue bonds therefore pursuant to the Act as
soon as practicable.
28
6-28-88
1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
o
o
o
SECTION 3. The City hereby agrees to cooperate with the
County in the exercise jointly or otherwise of their powers for
the purpose of financing home mortgages pursuant to the Act by
agreeing that the County shall exercise its powers to make or
acquire home mortgages under the Program, all as more
specifically set forth in the Act, with respect to property
located within the corporate boundaries of the City.
SECTION 4. The City agrees to undertake such further
proceedings or actions as may be necessary in order to carry out
the terms and the intent of this Agreement. Nothing in this
Agreement shall prevent the County from entering into one or more
agreements with other political subdivisions within the County,
if deemed necessary and advisable to do so by the County.
SECTION 5. The County agrees, and shall require that each
developer participating in a bond program pursuant hereto shall
agree, that all homes built within the corporate boundaries of
the City will comply with the city's draft general plan and
Interim Policy Document and regulations promUlgated pursuant to
such documents. The County agrees, and shall require that each
developer participating in a bond program pursuant hereto shall
agree, that all homes built anywhere within the corporate
boundaries of the City will comply with development standards of
the Verdemont Area Plan (pages 95-156) adopted by the Mayor and
Common Council in November 1986 and supplemented by action of the
24
25 Mayor and Common Council on May 23, 1988, except those projects
having gone through the plan review and approval process and
26
having building permits issued on or before June 28, 1988. The
27
appropriate sections of the Verdemont Area Plan and the action
~ \
6-28-88 2
0
1
2
3
4
5
6
7
8
9
10
o
o
o
11
12
13
14
15
16
17
18
19
20
21
~
23
24
25
26
27
28
taken by the Mayor and Common Council of the City of San
Bernardino on May 23, 1988, are incorporated by reference as
though fully set forth at length.
SECTION 6. This Agreement may be amended by one or more
supplemental agreements executed by the County and the City at
any time, except that n9 such amendment or supplement shall be
made which shall adversely affect the rights of the holders of
any bonds issued by the County pursuant to the Act in connection
with the Program.
SECTION 7. County agrees to hold the city, its agents,
employees, and officers harmless from any claim or litigation
that may arise from the exercise of this Agreement~ and, further,
County agrees to defend City in any litigation that may arise
from the County's exercise of its authority under this Agreement.
City shall not be responsible for any damage or liability
occuring by reason of anything done or omitted to be done by
County under or in connection with this Agreement. It is also
agreed that, pursuant to Government Code Section 895.4, County
shall fully indemnify and hold city harmless from any liability
imposed for injury (as defined by Government Code Section 810.8)
occuring by reason of anything done or omitted to be done by
County under or in connection with this Agreement.
SECTION 8. The County agrees to exercise a good faith effort
to expend within the geographical boundary of the City, those
funds made available to County pursuant to this Agreement. County
hereby agrees to notify City in writing of any proposed
expenditures of such funds outside the boundaries of City.
SECTION 9. This Agreement represents the entire Agreement
6-28-88 3
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
o
o
o
between the parties and no other written and/or oral Agreements
exist between the parties hereto. Any and all changes,
amendments and addenda to this Agreement shall be in writing,
signed by all parties.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed and attested by their proper officers
thereunto duly authorized, and their official seals to be hereto
affixed, all as of the date and year first written above.
COUNTY OF SAN BERNARDINO
CITY OF SAN BERNARDINO
BY:
BY:
ATTEST:
ATTEST:
BY:
BY:
Approved as to form and
legal content:
Approved as to form and
legal content:
17 BY:
Deputy
18 KJH/lab/l045
19
20
21
22
23
24
25
26
27
28
6-28-88 4
BY:~)
/ C ty torney
o
o
o
o
OIlllNANCI NO. _
0RDtNANa ADOPTING A HOUSING IINANCEMVlNUlIONO PlOGMIl
AND AUTHOlUZlNG COUNll OffICEIlS TO IllPUI1lNT THE PlOGMIl.
WHWAS. ..... io. ......... in "" '- aI loo......... ("" .'C_")
aI-."".........,.........pIIliolIIIIrol"""""_Ilr............
_ ... aI .... ,.....".. ......... ... . _ ... to ..... ....
_...~aI-_Ilr.............._to
_dlt""""".......In""'-rlor...........'...
WHWAS. "" .....aI.....,aldlt,-("" """'.iC td
to In.",,,,",, _ ___.....,_ ..,..,.... to
"" -r: ~ JI aI dlt _ ... SoIKy C04t t:.. SarO aI . (11Io
"Aa11or.........."",,_ ""---Ilr""Aa......
.......... to iIuo _ _ _ to "" Aa to ,.- .... lor dlt
~ lOAN) Of SUPUYIlOIlS Of THE COUNTT Of SAN IlRNARDINO
DO 0lIDAIN. . _
I. Tllt '- hnIlr.......... ""....... __ to "" Aa'" ""'"
__toiluo __ _to IlidAato,.-_Iordlt
Prop..
2. Tllt'-hnIlr.......-..""'''''.........._dltpolllc
aI__~Ior-. ""...IIIliUrt.......""',..,..ildlt
I::':., 01 "" ~........ eM"'" ... 0I1ncnooiot dlt """"".......
J. _dltc-.iol""dl..___"".........lI1it
........ dlt ....... .... .. .,.,..... Ilr .... '- _ "" .......,
........ 01""_-...... _ "" _,..........oIiIIe'-.
4. Tllt___-.0I0ct0II0r17.19IO._....
'-'" "" - 01-.. _. CIlilo. -. Gnnd T....... lAIn
Unlk. _, -. 00I0ri0. __ """-' -... ... y_
... UpIond~ "ClIleo'1. it ..........., "" ..... _ to dlio -. (11Io
"~ iohmllr"""""""'''''__oIdlt'-..'''''''
Illdiori.od. dIrIcIodto_..._tlid.-...-,lor...il...._
... OIl"" oIdlt '-.... to _""........ to or""""'itdlt....oI
1Iid~_to""'-._",.,...._or-.
dloir ......... 01_ _ or ....... to .. ........., -.. Ilr dltir
_oIlIid~.lOllIdedtoor.......Tllt_.....oI....
'-..-_to_illo...._..........wiIIldltCilils,
_....__or........__.",.,..,...._
orljlpnlpriole toCInJ'" dlt _....... oIdlt Aa-- or.._
.che~_lIt/.."'oI.PtopIL
5. 'IIlo '- .... odojt Ilr _ .... ... ..- -.
olIfIIiIilJ-1or Ionclot _.. porIidpole il dlt.............
........Ior....... to _ _ .... _ dlt ........ ......._
........-.........Ilr....Aa.
,. Tllt__oIdlt'-"'hmIlrlUlhortred...........
peofomt""...........,ioIo..._""..........or__"'"
",., .., .... _ or _ to ......- "" ........
7. 'IIlo,.-oIdlisO"-....._Ior""-.oI""
C_...i1s_.............,_..olIealls_
.. T1lis........ bot.... _..,.""',........ _ 15'"
01,.... .......pullishod.... wiIIl "" _01..,......., IOIioC lor""'.....
ioln""loo _s.........,.,.,pullishod In "",,-.
JAI1ES L MAYfiELD. Choinnon
_alSupe......
ATTIS7:
ANDREI DISHAROON. Clort< aI
"" Ioonf aI Su,.........
STATE Of CAUfORNlA }
COUNTY Of SAN IUNAIlOINO H.
I. ANDREE DISHAROON. Clort< aI "" Ioord of Su,......... of "" C_ aI
loll "mrino. s.... aI CaIiIomiI. hmIlr ""'" II", .. . ....... -me aI ""
Ioord aI Su,......... aI .... C_ ond luu. held OIl "" 17th <by aI _.
1910. . _ -me .... ,...... luperriIon )omes L Mop""'. CI.oi"..., '"
-: Denoio HonsIletpr, _ O. T.........: ond "" CIert<. "" ~
........ wu JlISl'd ond odopled Ilr "" IoIowin& _. to wi.,
AYES, Su,......... I1tElwoin. HonsIit<pr. T.......... 110"""'.
NOES: Nooe.
ABSENT, Supmisor HoIMlOd.
IN W1TN155 WHEREOf. I h... he.-. Ie! "" hind ond oIIixtd the oIficill tal
althe _ alSu,......... "'" 17th dot aI N_. 1910.
ANDREE DISHAROON.
Clort< aI dlt Ioonf aI Supenison
aldlt'-falSon_.
luu alCoIiIomio.