HomeMy WebLinkAbout1984-04-03; City Council; 7699; Single Family Residential Mortgage Revenue Bonds-1 " / -, ,.
CIT~F CARLSBAD - AGEND~ILL E i'
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CITY MGR.~ DEPT. RE D REVENUE BONDS ISSUE OF 1983 CITY ~m.$ SINGLE FAMILY RESIDENTIAL MORTGAGE MTG. 4/3/84
TITLE: TRANSFER OF $1.6 MILLION OF CITY
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RECOMMENDED ACTION:
City Council approve the transfer of $1.6 million of City of
Carlsbad single F'amily Residential Mortgage Revenue Bonds Issue
of 1983 from DSL Service Company to Pacific Scene, Inc.
ITEM EXPLANATION:
On June 21, 1983, the City Council authorized the issuance of the
Single Family Residential Mortgage Revenue Bond issue of 1983.
This $20,000,000 bond program produced a desirable mortgage rate
for first time home buyers in Carlsbad. Three housing developers
participated in the program. Two of these developers, Pacific
Scene and Downey Savings and Loan (DSL) have agreed to transfer
a portion of D.S.L.'s allocation to Pacific Scene, Inc.
Pacific Scene has entirely expended its original allocation,
whereas D.S.L. has not. Pacific Scene is confident the additional
bond funding, which D.S.L. does not anticipate using, will provide
even more first-time buyers affordable housing in Carlsbad.
This transfer is permitted under the terms of the bond issue.
Council is asked to approve this transfer of Mortgage Revenue
Bond funds .
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1 FISCAL IMPACT :
No fiscal impact to the City. All expenses of this program are paid out of the bond proceeds.
EXHIBITS:
1 - Letter to Director of Building and Planning dated March 13, 1s
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DSL SERVICE COMPANY
21 791 LAKE FOREST DRIVE - SUITE 200 8 P.0. BOX 5004 @ EL TORO, CAS2630 e (71 4) 859-0050
March 13, 1984 1) ->-.: . n?> - ..- ~ I" ; f :; $2 y -- . -28 '.,$ ", . . ! 2.. , .- < :~T $&? .E-:,: v -d ...?.,~.,'
Mr. Martin Orenyak
Building Official
CITY OF CARLSBAD
1200 Elm Road
Carlsbad, California 92008
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Dear Mr. Orenyak:
Pacific Scene, Inc. and D.S.L. Service Company mutually agree
to the transfer of $1,600,000 of City of Carlsbad Single Family Residential Mortgage Revenue Bonds Issue of 1983 from
D.S.L. Service Company to Pacific Scene, Inc.
The above parties consent to the transfer as being beneficial to the intended participants and consistent with the spirit
of the bond issue. Due to unanticipated vagaries, Pacific Scene, Inc. has entirely expended its original commitment,
whereas D.S.L. Service Company has not. Pacific Scene, InC. is
confident the additional bond funding, which D.S.L. Service
Company does not anticipate using, will provide first-time
buyers affordable housing as quickly as the original commitment
was used within the terms of the agreement.
The undersigned hereby agrees that Pacific Scene, Inc. will
reimburse D.S.L. Service Company 4-1/2 points of the $1,600,000
which is $72,000.00.
AGREED :
D . S . L. SERVICE COMPANY
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BY : 6.f- /
R.' F. Driscoll - Senior Vice President
By: -4 F" -c William F. Thrston - Asst. Secretary
PACIFIC SCENE, INC.
BY :
BY :