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HomeMy WebLinkAboutR28 EDAECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Ronald E. Winkler SUBJECT: CITY PARTICIPATION IN THE Development Director INDEPENDENT CITIES LEASE FINANCE AUTHORITY ( ICLFA) DATE: October 5, 1998 ORIGINAL FRESH RATE (101% HOME MORTGAGE) PROGRAM Synopsis of Previous Commission /Council /Committee Action(s): On October 12, 1998, the Redevelopment Committee referred this item to the Community Development Commission for approval. Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission authorize the Economic Development Agency to participate in the ICLFA Fresh Rate (101% Home Mortgage) Program. Contact Person(s): Ronald E. Winkler/ Phone: 5081 Project Area(s) N/A Ward(s): N/A Supporting Data Attached: L7 Staff Report ❑ Resolution(s) ❑ Agreement(s) /Contract(s) ❑ Map(s) ❑ Letter/Memo FUNDING REQUIREMENTS Amount: $ N/A Source: Budget Authority: -> 7 SIGNATURE: , ary Osdel, xecutive irector Ecoromic Development Agency N/A N/A onald E. inkier, Director Development Department - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Commission /Council Notes: IMPORTANT NOTE - Resolution 98 -307 is null and void because it was not executed within time specified. COMMISSION MEETING AGENDA Meeting Date: 10/19/1998 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Ci . Participation in the Independent Cities Lease Finance Authority I( CLFA) Fresh Rate (101% Home Mortgage) Program Background ICLFA, which was created in 1998 as a spin -off of the Independent Cities Association (ISA), has, since its inception, sponsored successful lease finance programs for its members and other public entities. In the past, they have successfully financed equipment purchases on behalf of member cities. A list of participating cities is attached. After six months of study, on May 21, 1998, the ICLFA Board of Directors, which is comprised of one City Council Member from each of its thirteen member cities, unanimously approved a home mortgage program (the Fresh Rate Program) to be offered in all member cities. On the same date, the Board decided to offer associate memberships (non- voting) to other cities to enable individuals and families in those cities to obtain Fresh Rate loans. In general terms, this program will provide 101% home mortgage financing through traditional lenders to families and individuals who can qualify for loans but do not have down payments to purchase a home. The mortgages are funded through proceeds from a taxable Mortgage Revenue Bond Issue. The participating cities will not be required to pay any fees, expend any staff resources or assume any liability. No downside to this program has been identified. ICLFA serves solely as a conduit issuer and assumes no liability on the bond issue or the underlying home mortgages. The member cities assume no liability either. The Fresh Rate program is sponsored by Banc One, which assumes all liability for the program. While a detailed description of the program is contained in enclosures to this staff report, key aspects are summarized as follows: The purpose of the program is to provide assistance to a large but under - served segment of the prospective home buyer population -those families and individuals who, for whatever reason, have not been able to save all of the mortgage loan down payment and closing costs, but can qualify and make the payment for a market rate loan. 2. The program delivers 4% down payment and closing costs assistance for low and moderate income home buyers. In conventional home financing, the minimum down payment is 3% while closing costs average an additional 4 %. Consequently, the cash required at closing is reduced by over one -half by the Fresh Rate program. REW:1ag:10- 19- 07.cdc COMMISSION MEETING AGENDA Meeting Date: 10/19/1998 Agenda Item Number: Economic Development Agency Staff Report Fresh Rate Program October 13, 1998 Page Number 2 -------------------------------- •----------------- - - - - -- Participating cities will be required to be a member of ICLFA but will not pay any fees or incur any liability or costs and will not be required to expend any staff resources. The program costs of I% will be paid by the originating lenders and loan servicer. Marketing will be performed by the originating lenders and ICLFA. 4. Eligible properties include new or existing single - family detached or attached homes, manufactured housing, condominiums and town homes which are owner occupies and located within the jurisdiction of any ICLFA member city. 5. The taxable bond issue will receive a "AAA" (GNMA Securities) rating from Standard & Poor's. 6. The home mortgage interest rates will be fixed for thirty years. The actual interest rate for the mortgages is set at the time mortgages are originated. Consequently, the program remains competitive in the market, regardless of market conditions at the time the bonds are issued. Home buyers will be qualified under FHA and VA underwriting standards. Home sale prices may not exceed FHA ($170,362) or VA ($203,000) mortgage loan limits. 9. Home buyer income may not exceed 120% of the State or County wide area median (the current Statewide area median income is $52,600). 10. No State of California bond allocation is required as the mortgage bonds will be taxable. ICLFA has selected a credible team of professionals to work with Banc One representatives to formulate, market and facilitate the program. They are: Independent Cities Association; Burke, Williams & Soresen; Jones Hall; Project Finance Associates; and Ken Spiker and Associates, Inc. Banc One has implemented similar programs in the states of Arizona, Illinois and Oklahoma. Banc One is the only financial institution offering the program at this time. Banc One is a large AA rated financial institution headquartered in Columbus, Ohio with branches throughout the Midwest, South and rocky, Mountain Region. REW:1ag:10- 19- 07.cdc COMMISSION MEETING AGENDA Meeting Date: 10/19/19998 Agenda Item Number: 0 Economic Development Agency Staff Report Fresh Rate Program October 13, 1998 Page Number 3 There is no obligation of Agency or City funds required or commitment of staff resources. Recommendation: Attached is further detail regarding the program. Also included is an Associate Membership Agreement and a form of Resolution authorizing memberships. At its meeting of October 12, 1998, the Redevelopment Committee forward this item to the Community Development Commission for approval. Ronald . Winkler, Director Development Department -------------------------------------------------------------------------------------------------------------------------------------------- REW:lag:10- 19- 07.cdc COMMISSION MEETING AGENDA Meeting Date: 10/19/1998 Agenda Item Number:�� CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM CITY CLERK'S OFFICE RECORDS & INFORMATION MANAGEMENT (RIM) PROGRAM DATE: October 20, 1998 TO: Ron Winkler, Economic Development Agency FROM: Rachel Clark, City Clerk by Melanie Miller, Senior Secretary RE: Transmittal for signature — Res 98-307 Documents Attached is the following: One (1) original associate membership agreement with the Independent Cities Lease Finance Authority. Please obtain signatures as appropriate. Please return the executed original to the City Clerk's office as soon as possible, to my attention. Be advised that the resolution and agreement will be null and void if it is not executed within sixty (60) days — December 18, 1998. If you have any questions, please do not hesitate to contact me at ext. 3212. Thank you. Rachel Clark City Clerk By: Melanie Miller I hereby acknowledge receipt off ,the the above mentioned documents. Signed 41 Date: z r '5/ RC:mam . �a V C z7" 1 L . 98 -307 ASSOCIATE MEMBERSHIP AGREEMENT by and between the INDEPENDENT CITIES LEASE FINANCE AUTHORITY and the CITY OF SAN BERNARDINO, CALIFORNIA THIS ASSOCIATE MEMBERSHIP AGREEMENT dated as of october 19,E 1998 by and between the INDEPENDENT CITIES LEASE FINANCE AUTHORITY, a joint powers authority duly organized and existing under the laws of the State of California (the "Authority ") and the CITY OF SAN BERNARDINO, CALIFORNIA, a municipal corporation and charter city duly organized and existing under the laws of tie State of California (the "City "); WITNESSETH: WHEREAS, certain cities of the State of California (collectively, the "Members "), have entered into a Joint Powers Agreement, creating the Independent Cities Lease Finance Authority, establishing the Authority and prescribing its purposes and powers (the "Agreement "), as amended by an Amendment No. 1 thereto providing, among other things, for associate members of the Authority (an "Associate Member")-, and, WHEREAS, the Authority has been formed for the purpose, among others, of assisting its Members and Associate Members in the participation in home Mortgage Financing Programs (as defined in the Agreement) and in financing the acquisition, construction, improvement and/or equipping of public capital improvements; and, WHEREAS, the City desires to become an Associate Member of the Authority; and, WHEREAS, the Board of Directors of the Authority has determined that the City should become an Associate Member of the Authority; NOW THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Authority and the City do hereby agree as follows: SECTION 1. P=ose. The purpose of this Associate Membership Agreement is to assist its Associate Members in the participation in Home Mortgage Financing Programs (as defined in the Agreement) and in financing the acquisition, construction, improvement and/or equipping of public capital improvements; SECTION 2. Associate Member Status. The City is hereby made an Associate Member of the Authority for all purposes of the Agreement and the Bylaws of the Authority, the provisions of which are hereby incorporated herein by reference. From and after the date of execution and HTC /js [INDEPENDENT.AGR] Z NrJd'IN3(IN3d3GK fl Sf /J.LH ,C.��aioaS :lsaud SOXPW ' SOTTPA 447pRr TaPSO IMA A-TV9 VIMI03IIVD `ONIG"d' VNN3g NVS d0 AID , Jvj coos :lsaud ail ?1 ,Cg 3DNVNI3 3Sd3'I S3I.I.IO LN3QN3d3QNI •anoqu glzoj has isig juz))( pun ,pup agi uo `pozuoglnu XInp oluna.zagl siaa jVo zadozd zioLp Xq palsauu put' painooxo aq of luou-mo2d digs.zaqu ;)IN aiu?oossd s?gl posnuo annq oiazau sa?jiud agl `3032I3HM SS3N _L IM NI •sjuauiano.zduzi Imiduo o?Ignd 3o Ou?ddmba io/puu juauzano .Tdwi `uoiloniisuoo `uotlismbou aqp Su ?ouuug 03 ,�uogjnV acp Xq Sur. jupopun iaglo Xuu ui put' u .IOO -Id 5u ?ouuu'A 02u21101N auiobl Xuu u? 14tD xp -Aq uoiludioiliud jo3 A4pogjnV aql jo smLIXU ag13o IX alo?ljv puu juauzaaiOV oqj Jo LZ alo?jjV 3o sluowaiinbai aqp Xjs?jus Ilt'gs luauiaoj2V digsjagt uojN alu?oossd siq; 3o uo ?inoaxg •luauuaa.z d aql jo uo?inoaxg •S NOI.LD3S • )4?D agljo suo?luS?Igo pun sa?} ?liqu ?I `sjgap agp aq jou Ilt'gs /4uoglnd oqi jo suo?luB?Igo puu sa?j ?I ?qt' ?I `slgap aql • l ?D aqT jo suo!IL ?Iq0 oN •t, NOILD3S •,Ljumpnd aip jo ioloa.i ?p so nogjo uu auiooaq 01 1112u ,cut' ant'q Ilt'gs XI?D aql jo aA?juluosoidai .io aaXoldwo `iaogjo ou `uou?ppn uI •,iluoglnd 041 Xq zo siolowiCl jo pjuog a p Kq ua7i uo ?you Xuu uo aJOA 01 `,C4uoLpnd aql jo iagwiIN aiuioossd uu su `jq2?t aql snug you Ilt'gs 4CIlD aqZ ?� a11 Jo slq rd pun suo ?loulsag •E NOI MS •IuauzaaiSV age Jo L alo?uV of Joafgns `Xluoglnd aLp jo iaquzaW ait'?oossd up ureuzaj put' aq llugs Xj?D oql `,44uoglnd aql puu ,Cj?D aql Xq juouzaaii?d digsiagTuz)w aauioossd sTLP Jo ,CiaAtlap LOE -86 �coG� CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM CITY CLERK'S OFFICE RECORDS & INFORMATION MANAGEMENT aU" PROGRAM DATE: December 29, 1998 TO: Sandra Medina, Administrator Operations Supervisor FROM: Melanie Miller, Senior Secretary RE: Expired Resolutions Status Report CC: Rachel Clark, City Clerk The following is a status report on resolution attachments not executed prior to their expiration dates from July 1, 1998 through December 29, 1998. MEETING RESOLUTION EXPIRATION DEPARTMENT WHAT DATE /# DATE 07/20/1998 98 -205 90 days Development Svcs Agreement with property owners on Pioneer 08/03/1998 98 -229 11/01/1998 Development Svcs 03/17/1998 98 -243 90 days Facilities Mgmt 09/21/1998 98 -270 11/20/1998 Development Svcs 10/05/1998 98 -291 60 days Mayor's Office Street (Orange Show Rd extension) for the installation of a retaining wall and appurtenant facilities on their properties. Program Supplement No. 001 -M STPLX 5033 (001) for barrier rails on Rialto Ave at BNSF Railroad bridge No. 54C -0378, and on Highland Ave over Del Rosa Channel Bridge No. 54C- 0227. (See Memo of 10/29/1998 regarding this matter) Contract with the State of California, through its Department of General Services- Energy Assessments (DGS /EA) and City and Commonwealth Energy for the purchase of electricity for 1 year. License Agreement with Edison for non- electrified attachments and appurtenances to Edison street lights. Authorizing the execution of an agreement with the Black Culture Foundation relating to financial assistance from the civic and promotion fund for FY 1998/1999. 1 MEETING RESOLUTION EXPIRATION DEPARTMENT WHAT DATE # DATE 10/19/1998 98 -307 12/18/1998 EDA _ City participation in the Independent Cities Lease Finance Authority (ICLFA) fresh rate (101%) HOME Mortgage) Program. This notice has been placed on the following documents to clarify their status: 1. Original resolution, 2. Original staff report, 3. Original resolution log. "IMPORTANT NOTE - Resolution 98 -xxx: Resolution is null and void because it was not executed within time specified." Just let me know if you have any questions. LGGG�L�GGGs' GG'L e< 114i Melanie Miller Senior Secretary It 1 4 6 A 7 10 12 1� 14 15 16 17 13 19 20 21 23 ,4 25 -16 -17 2s RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AN ASSOCIATE MEMBERSHIP AGREEMENT WITH THE INDEPENDENT CITIES LEASE FINANCE AUTHORITY AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO. WHEREAS, certain cities of the State of California (collectively, the "Members ") have entered into a Joint: Powers Agreement Creating the Independent Cities Lease Finance Authority (the "Joint Powers Agreement "), establishing the Authority and prescribing its purposes and powers, as amended by an Amendment No. 1 thereto providing, among other things, for associate members of the Authority (an "Associate Member "); and, WHEREAS, the Authority has been formed for the purpose, among others, of assisting its Members and Associate Members in the participation in Home Mortgage Financing Programs (as defined in the Joint Powers Agreement) and in financing the acquisition, construction, improvement and /or equipping of public capital improvements; and, WHEREAS, the City of San Bernardino desires to become an Associate Member of the Authority as provided in the Associate Membership Agreement, in substantially the form on file with the City Clerk: NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Council hereby approves and authorizes the Mayor to execute and the City Clerk to attest the Associate Membership Agreement pursuant to which the City shall become an Associate Member of the Independent Cities Lease Finance Authority, in substantially the form on file with the City Clerk, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference in its entirety. SECTION 2. The authorization granted hereunder shall expire and be void and of no further effect if the Associate Membership Agreement is not executed by both parties and returned to the Office of the City Clerk within sixty (60) days following the effective date of the resolution. HTC /js [AGREEIVtENT.RES] #�.as �o %ql9p 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AN ASSOCIATE MEMBERSHIP AGREEMENT WITH THE INDEPENDENT CITIES LEASE FINANCE AUTHORITY AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of 1998, by the following vote, to wit: COUNCIL M . 3ERS: AYES NAYS ABSTAIN A N1T ESTRADA LIEN ARIAS SCHNETZ DEVLIN ANDERSON MILLER CITY CLERK The foregoing Resolution is hereby approved this day of Approved as to form and legal content: JAMES F. PENMAN, Cit Im HTC /js [AGREEMENT.RES] JUDITH VALLES, Mayor City of San Bernardino 1998.