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HomeMy WebLinkAbout1983-06-21; City Council; Resolution 7259RESOLUTION NO. 7259 A RESOLUTION OF THE CITY CO~NCIL OF THE CITY OF CARLSBAD APPROVING CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE AUTHORIZATION, SALE AND ISSUANCE OF ITS SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS, ISSUE OF 1983 WHEREAS, there is a shortage in the City of Carlsbad (the "City") of decent, safe and sanitary housing which is 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 City for such persons; and WHEREAS, the City has determined to engage in a home mortgage finance program (the "Program") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") for persons and families within the income limits established by the Act, and wishes to issue revenue bonds pursuant to the Act to provide funds for the Program; and WHEREAS, the City Council finds and determines that the Program complies with the Land Use Element and the Housing Element of the City's General Plan; and WHEREAS, all acts, conditions and things required by the Act, and by all other laws of the State of California, to exist, to have happened and to have been performed precedent to and in connection with the issuance of the aforesaid revenue bonds exist, have happened, and have been performed in regular and due time, form and manner as required by law, except only that the California Mortgage Bond Allocation Committee (the "Committee") has not yet approved an allocation of mortgage revenue bonds for the City, and, upon the Committee's approval of such an allocation, the City will be duly authorized and empowered, pursuant to each and every requirement of law, to issue such revenue bonds for the purpose, in the manner and upon the terms herein provided; and WHEREAS, said revenue bonds are to be issued hereunder in an aggregate principal amount not to exceed $21,000,000 for the purpose, among others, of providing moneys to purchase loans pursuant to the Program, and are to be designated as the "City of Carlsbad, California, Single Family Residential Mortgage Revenue Bonds, Issue of 1983" (the "Bonds"); NOW, THEREFORE BE IT RESOLVED this City Council does hereby FIND, DETERMINE, RESOLVE, AND ORDER as follows: 1. The above recitals, and each of them, are true and correct. 2. The Rules and Regulations Establishing Eligibility Criteria for Mortgagors and the Rules and Regulations Establishing Eligibilty Criteria for Lending Institutions, each in the form presented at this meeting, are hereby approved and adopted for the Program and for mortgage loans purchased pursuant thereto. 3.. Pursuant to the Rules and Regulations Establishing Eligibility Criteria for Mortgagors and based upon a study presented to the City by Empire Economics Inc., the City hereby establishes $26,612 as the Median Household Income for the Program. Said Median Household Income may be adjusted from time to time by the City. 4. Based upon a study prepared for the City by Empire Economics Inc., the average area purchase price in the San Diego Standard Metropolitan Statistical Area is determined to be $125,378.00 for single family residences of which the purchaser will be the first occupant and $109,866.00 for other single family residences. 5. There are no qualified census tracts (within the meaning of that phrase set forth in Section 103A of the Internal Revenue Code of 1954, as amended) located within the City. 6. The Director of Building and Planning, or such other person as the City Council may from time to time designate, is hereby designated to administer the Program, to be assisted by the firm designated in Section 9 hereof. 7. The proposed form of developer agreement presented at this meeting (the "Developer Agreement") is hereby approved; and the Mayor and City Clerk are hereby authorized and directed, for and in the name of the City, to execute such agreements with the developers selected or to be selected by the Director of Building and Planning on the basis of the extent to which their respective developments will implement the goals and objectives of the Program. Said agreements shall be executed in substantially the form hereby approved, with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. 8. The proposed form of mortgage sale and service agreement presented at this meeting (the "Mortgage Sale and Service Agreement") is hereby approved; and the Mayor and City Clerk are hereby authorized and directed, for and in the name of the City, to execute such agreement with Wells Fargo Mortgage Company, which is -2- hereby designated as the Lending Institution for the purposes thereof. Said agreement shall be executed in substantially the form hereby approved, with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. 9. Investors Mortgage Financial Services Inc. is hereby appointed as the Administrator under the Mortgage Sale and Service Agreement; and Investors Mortgage Insurance Company shall supply private mortgage insurance for the Program. 10. The proposed form of Indenture presented at this meeting (the "Indenture") is hereby approved, and the Mayor and City Clerk are hereby authorized and directed for and in the name and on behalf of the City to execute, acknowledge and deliver to the trustee hereinafter mentioned an indenture in said form with such additions thereto and/or changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. 11. The form of the Bonds and the various provisions relating thereto set forth in the Indenture (as the Indenture may be modified pursuant to the preceding section hereof) are hereby approved; and upon the sale thereof as hereinafter authorized the Mayor and the City Clerk are hereby authorized and directed to execute, in the name and behalf of the City and under its seal, such Bonds in the aggregate principal amount set forth hereinbelow in accordance with the Indenture. 12. Security Pacific National Bank, Los Angeles, California, is hereby appointed as Trustee for the City and the owners of the Bonds, with the duties and powers of such trustee as set forth in the Indenture. 13. The form of preliminary official statement presented at this meeting hereby is approved, subject to any modifications thereof determined necessary by the Director of Building and Planning in order to make such preliminary official statement more accurate and complete; and the distribution thereof by the underwriters hereinafter named is hereby authorized. 14. The form of bond purchase contract between the City and Blyth Eastman Paine Webber Incorporated and the other underwriters represented thereby (collectively, the ffUnderwritersff) presented at this meeting is hereby approved; and the Mayor is hereby authorized and directed, for and in the name of the City, to accept the offer of the Underwriters to purchase the Bonds contained therein (when such offer is made) and to execute and deliver the bond purchase contract provided that: (i) the Committee has approved an allocation of mortgage revenue bonds for the City, (ii) the principal amount of -3- *, Bonds to be sold to the Underwriters does not exceed the lesser of $21,000,000 or the amount of the approved allocation, and (iii) the terms upon which the Bonds are sold will provide funds for the purchase of mortgage loans the interest rates, terms, and other provisions of which will conform in all respects to the provisions of the Developer Agreements and the Mortgage Sale and Service Agreement. 15. The Director of Building and Planning is hereby authorized and directed to execute one or more requisitions authorizing Security Pacific National Bank, as Trustee under the aforesaid Indenture, to pay the costs of issuing the Bonds from the program fund established under and pursuant to the Indenture. 16. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things to execute and deliver any and all documents (including, but not limited to, a final official statement relating to the Bonds) which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, and otherwise to effectuate the purposes of this Resolution; and such actions previously taken by such officers are hereby ratified and confirmed. APPROVED AND ADOPTED this 2lStday of June , 1983. %dL the City of Carlsbad ATTEST : f City Clerk, City of Carlsbad -4- STATE OF CALIFORNIA COUNTY OF SAN DIEGO ) ) ss. 1 I, ALETHA L. RAUTENKRANZ. City Clerk of the City of Carlsbad, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of said City Council held on the me , 1983, by the following roll call vote: 21st day of AYES : COUNCI LMEMBERS Casler, Lewis, Kulchb, Chick and Prescott NOES: COUNC I LMEMBERS : None ABSENT : COUNCILMEMBERS : None ( SEAL ) -5- , '" .- STATE OF CALIFORNIA COUNTY OF SAN DIEGO 1 ) ss. ) I, ALETHA L. RAUTENKRANZ, City Clerk of the City of Carlsbad, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. City of Carlsbad, and that the same has not been amended or repealed. 7259 , of the City Council of the DATED: June 22, , 1983. ( SEAL -6-