HomeMy WebLinkAbout1983-06-21; City Council; 7404-1; AUTHORIZATION OF THE ISSUANCE OF SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS, ISSUE OF 19836 v LL w (2 I! ~ .. ,
CIT F CARLSBAD - AGENDA-BILL L
AB#M
MTG. 6/21/83
DEPT. HD& TITLE:AUTHORIZATION OF THE ISSUANCE OF
CITY MGRG DEPT. BLD
CITY ATTYX SINGLE FAMILY RESIDENTIAL MORTGAGE
REVENUE BONDS, ISSUE OF 1983.
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RECOMMENDED ACTION: d\
City Council adopt Resolution No. Taauthorizing the issuance
of its Single Family Residential Mortgage Revenue Bond, issue of 1983; making certain findings and determinations in connection therewith; and authorizing the execution of certain documents and certain other actions.
ITEM EXPLANATION
By City Council action on September 21 f 1982f an official request was submitted to the State of California for a Mortgage Revenue
Bond allocation. This program assists developers in providing affordable housing. Three housing projects have been approved for inclusion in the single family project: Tamarack Shores in northeast Carlsbad, Sea Pointe and Meadow Ridge in southeast Carlsbad. These developers have made a $50,000 good failth deposit with the City.
The City has been advised that we will receive the allocation
from the State before July lst, 1983. At this time several actions are necessary. These actions will prepare the bonds to be marketed upon receipt of the allocation. The attached resolution provides details of the following actions:
a) Find that the program adopted by the ordinance complies with the land use element of the City's General Plan;
b) Approve the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and the Rules and Regulations Establishing Eligibility Criteria for Lending Institutions;
c) Approve the form of the Developer Agreement to be used in connection with developers;
d) Fix the Median Household Income and the Average Area
Purchase Price based upon the findings and conclusions
of Empire Economics, Inc.;
e) Find and determine that there are no qualified census tracts ("targeted areas") within the City; I
f) Approve the proposed form of Mortgage Sale and Service
Agreement and authorize the execution thereof with the lending institution, Wells Fargo Bank;
g) Identify the Private Mortgage Insurer and Administrator, Investors Mortgage Insurance Company;
I h) Appoint the Trustee, Security Pacific National Bank;
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i) Approve the proposed form of Indenture and authorize
the execution and delivery thereof;
j) Authorize the issuance of bonds pursuant to the
Indenture;
k) Approve the form of bonds set forth in the Indenture
and the execution thereof as provided in the Indenture;
1) Designate the Director of Building and Planning as a
person authorized to sign certificates, statments,
requests, requisitions and orders of the City under and pursuant to the Indenture;
m) Approve the Preliminary Official Statement prepared by
Orrick, Herrington & Sutcliffe as underwriter's counsel and authorize the distribution thereof in connection
with the sale of the bonds;
n) Approve the form of a Bond Purchase Contract with Blyth Eastman Paine Webber Incorporated (the document prepared
by Orrick, Herrington & Sutcliffe) and authorize the sale of the bonds as provided for therein if Blyth Eastman Paine Webber Incorporated submits a bid which
will produce a mortgage rate which is consistent with
the rates set forth in the Developer Agreements; and
0) Generally authorize any other steps necessary or advisable in order to consummate the issuance, sale and
delivery of the bonds.
The lending institution and mortgage insurer were selected
because their participation would result in the highest possible bond credit rating and the most efficient bond structure.
FISCAL IMPACT
Mortgage Revenue Bond issuance not to exceed $21 million. No fiscal impact to the City. All City costs to be paid out of proceeds and/or developer's deposits.
EXHIBITS ~~ ~~ ~
1 - Resolution No. '7asy .
2 - Mortgage Revenue Bond documents (on file with City Clerk).
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RESOLUTION NO. 7259
A RESOLUTION OF THE CITY CO~~NCIL OF THE CITY OF CARLSEAD APPROVING CERTAIN DOCUMENTS AND
AUTHORIZING CERTAIN ACTIONS IN CONNECTION-
ITS SINGLE FAMILY RESIDENTIAL MORTGAGE
REVEWE BONDS, ISSUE OF 1983
WhTH THE AUTHORIZATION, SALE AND ISSUANCE OF
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
housing supply in the City for such persons; and homes affordable by such persons and otherwise to increase the
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
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WHEREAS, the City Council finds and determines that the
Program complies with the Land Use'Element and the Housing
Element of th.e City's General Plan; and
WHEREAS, all acts, conditions and things required by the
exist, to have happened and to have been performed precedent to
bonds exist, have happened, and have been performed in regular
and due time, form and manrrer 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 a1location;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
. Act, and by all other laws of the State of California, to
and in connection with the issuance of the af,oresaid revenue
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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") ;
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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,baseci upon a study presented
to the City by Empire Economics Inc., the City hereby establishes $26,612 as the Median Household Income for the Irogram. Said Median
Household Income may be adjusted from time to time by the City.
4. Ba.sed 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, fcr 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 the-rein 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
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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 execution and delivery thereof.
. the same may approve, such approval to be conclusively evidenced by
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 th.e duties and powers of such trustee as set forth in
the Indenture;
13. The form of preliminary official statement ?resented 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 "Underwriters") presented at
this meeting is hereby approved; and the Mayor is hereby authorized
and directed, fbr 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 .
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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
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.
. terms upon which the Bonds are sold will provide funds for the
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.
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Mayor 0. the City of Carlsbad
ATTEST : RQu . -8
' ALETHA L. RAUTENKRANZ
City Clerk, City of Carlsbad 7
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STATE OF CALIFORNIA 1
COUNTY OF SAN DIEGO 1 ) ss.
1, 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 21st day of
Jyne , 1983, by the following roll call vote:
AYES : COUNC I LMEMBERS Casler, Lewis, Kulchin, Chick and Prescc
NOES : COUNC I LMEMBERS : None
ABSENT : COUNCILMEMBERS : None .
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(SEAL)
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STATE OF CALTFORNIA ).
COUNTY OF SPAN 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. 7259 , of the City Council of the
City of Carlsbad, and that the same has not been amended or repealed
DATED : June 22, , 1983.
( SEAL 1
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