HomeMy WebLinkAbout1985-06-04; City Council; 8199; AUTHORIZATION OF THE ISSUANCE OF SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS, ISSUE OF 1985b CIYI)OF CARLSBAD - AGEN~BILL / ;$
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AB#* TITLE: AUTHORIZATION OF THE ISSUANCE OF SINGLE DEPT. HD.!!!!!!
MTG. 6/4/85
DEPT. BLD
CITY AmU FAMILY RESIDENTIAL MORTGAGE REVENUE
BONDS, ISSUE OF 1985 CITY MGR~ I I I-
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RECOMMENDED ACTION:
City Council adopt Resolution No. ,@s/ authorizing the issuance of its
Single Family Residential Mortgage Revenue Bond, issue of 1985, making
certain findings and determinations in connection therewith; and authorizing
the execution of certain documents and certain other actions.
ITEM EXPLANATION ma
By City Council action of July 7, 1984, 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:
Highland Company in north east Carlsbad, Woodward Company at Tamarack and
El Camino Real and The Anden Group in south east Carlsbad. These three projects
have received final discretionary approval by the City.
The City received a $15 million dollar allocatiorn (I;?. j'?>ru:lry 13, 1985. kt
this time several actions are necessary. These actions will prepare the bonds
to be marketed. The attached resolution provides details of the following
actions:
a) Find that the program adopted by the redolutioncomplies with the land use element of the City's General Plan;
b) Approve the Rules and Regulations Establishing Eligibility Criteria for Mortgagors and 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
f> Approve the proposed form of Mortgage Sale and Service Agreement
g) Identify the Private Mortgage Insurer and Administrator.
("targeted areas") within the City;
and authorize the execution thereof with the lending institution.
h) Appoint the Trustee;
i> Approve the proposed form of Indenture and authorize the execution
and delivery thereof;
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A ZT j) Authorize the issuance of bonds pursuant to the Indenture;
k) Approve the form of bonds set forth in the Indenture and the *
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execution thereof as provided in the Indenture;
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PAGE 2 AGENDA BILL NO. L
1) Designate the Director of Building and Planning as a person authorized to sign certificates, statements, 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 co.unse1 and authorize the distribution thereof in connection with the sale of the bonds;
n> Approve the form of Bond Purchase Contract with PaineWebber Incorporated
(the document prepared by Orrick, Herrington & Sutcliffe) and authorize
the sale of the bonds as provided for therein if PaineWebber
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 of 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 $15 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. g&/
2 - Mortgage Revenue Bond documents (on file with City Clerk).
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1 RESOLUTION NO. 8051
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RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AUTHORIZING THE
ISSUANCE OF ITS SINGLE FAMILY RESIDENTIAL
MORTGAGE REVENUE BONDS, ISSUE OF 1985;
MAKING CERTAIN FINDINGS AND DETERMINATIONS
IN CONNECTION THEREWITH; AND AUTHORIZING
THE EXECUTION OF CERTAIN DOCUMENTS AND
CERTAIN OTHER ACTIONS.
WHEREAS, the City Council of the City of Carlsbad, Californ:
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pursuant to Part 5 of Division 31 of the Health and Safety Code ( 9
wishes to engage in a home mortgage finance progrsm (the "Progral
the incomelimitsestablished by the Act and wishes to issue reve 11
the State of California (the "Act") for persons and families wit1
12 bonds pursuant to the Act to provide funds for the Program: and
13 WHEREAS, allacts,,conditions and other things required by t
14 Act, and by all other laws of the State of California to exist,
15 have happened and to have been performed precedent to and in
16 connection with the issuance of such revenue bonds exist, have
17 happened, and have been performed in regular and due time, form !I
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l9 ,/empowered, pursuant to each and every requirement of law, to isE
/manner as required by law, and the City is now duly authorized a
2o il such revenue bonds for the purpose, in the manner, and upon the
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terms herein provided;
does find, determine, resolve and order as follows: 23
NOW, THEREFORE, the City Council of the City of Carlsbad he
24 I 1. The above recitals, and each of them, are true andcor
25 2. The Program complies with the Land Use Element and tht
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Criteria for Mortgagors and the Rules and Regulations Establish 28
3. The Rules and Regulations Establishing Eligibility 27
Housing Element of the City's General Plan.
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1 Criteria for Lending Institutions, each in the form presented at
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3 for mortgage loans purchased pursuant thereto.
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5 this meeting is hereby approved; and the Mayor and the City Clerl
6 are hereby authorized and directed, for and in the name of the t!!
to execute such agreements with the developers determined by the
this meeting, are hereby approved and adopted for the Program and
4. The proposed form of Developer Agreement presented at
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Director of Building and Planning to most benefit the Program.
agreements shall be executed in substantially the forms hereby
approved, with such changes therein as the officers executing thl
same may approve, such approval to be conclusively evidenced by
execution and delivery thereof.
5. Based upon a study prepared for the City by Empire
Economics Inc, , it is hereby found and determined that (i) the
median household income for the purposes of the Program, and for
the purposes also of the City's previous issue of Single Family
Mortgage Revenue Bonds, is $28,735, and (ii) the "Average Area
Purchase Price" for "New Residences" and for "Existing Residencc
(as said terms are defined in the form of Developer Agreement
approved by Section 5 hereof), for purposes of the Program are
$123,300 and $130,100 respectively.
6. Based upon the information set forth in Revenue
Procedure 83-51, it is hereby found and determined that there a.
no qualified census tracts (within the meaning of that phrase SI
forth in Section 103A of the Internal Revenue Code of 1954, as
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Agreement presented at this meeting is hereby approved; and the 28
7. The proposed form of Mortgage Sale and Servicing 27
amended) located within the area covered by the Proyram.
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Mayor and the City Clerk..are hereby authorized and directed, for
and in the name of the City, to execute sgch agreement with such
lending institution or lending insitutions as the Director of
Building and-Planning determines to most benefit the Program, SE
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
execution and delivery thereof.
8. United Guaranty Residential Insurance Company of Iowa
hereby designated as the Compliance Agent for purposes of the
Mortgage Sale and Service Agreement and approved as the Private
Mortgage Insurer for the Program.
9. The proposed form of indenture presented at this meeti
(the "Indenture") is hereby approved, and the Mayor and the City
Clerk of the City Council are hereby authorized and directed fo~
and in the name of the City to execute, acknowledge and deliver
the trustee hereinafter mentioned the Indenture is said form wil
such changes therein as the officers executing the sane may app~
such approval to be conclusively evidenced by the execution and
delivery thereof.
10. First Interstate Bank of California (the "Trustee") i
hereby appointed as trustee for the City and the owners of the
Bonds, with the powers and duties set forth in the Indenture ar
the Mortgage Sale and Service Agreement. The Trustee is hereby
requested and directed! to authenticate the Bonds by executing t
Trustee's certificate of authentication and registration appear
thereon and to deliver the Bonds, when duly executed and authel
cated, to the parties named in the Purchase Contract hereinaftc
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mentioned in accordance with written instructions executed on
to the Trustee. Such instructions shall provide for the deliver; 5
and in the n&e and on behalf of the City, to execute and delive~ 4
instructions said officer is hereby authorized and directed, for 3
behalf of the City by the Director of Building and Planning, whic
6 of the Bonds in accordance with the Purchase Contract, upon paym
7 of the purchase price thereof. The Trustee is also designated a
8 paying agent under the Indenture.
9 11. Pursuant to the Act, revenue bonds (the "Bonds") shall
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principal amount not to exceed $15,000,000. The purpose for whi 11
be sold and issued, as hereinafter provided, in an aggregate
I.2 I! the proceeds of the-Bonds shall be expended are the acquisition
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1 the Indenture. 19
name and on behalf of the City and under its seal in accordance 18
are hereby authorized and directed to execute such Bonds in the 17
hereby approved. The Mayor and the City Clerk of the City Counc 16
12,' The forms of the Bonds as set forth in the Indenture i 15
Indenture. 14
mortgage loans and such other purposes as are set forth in the
20 13. The Director of Building and Planning is hereby autho
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14. The form of Purchase Contract presented at this meet: 28
the Bonds. 27
are available for such purpose from the proceeds of the sale of 26
for the payment of any fee to such firm except to the extent an 25
mically, provided, however, that the City shall have no liabili 24
determines will provide such report most effectively and econo- 23
required by Health and Safety Code Section 52032.5 such firm as 22
and directed to select as the investment firm to prepare the re
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at an interest rate equal to or less than the lowest such rate ‘4
thereon shall permit the purchase of mortgage loans for the Prog: 3
provided that the purchase price of the Bonds and rates of inter€ 2
and the sale of the Bonds pursuant thereto are hereby approved,
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5 spec~~~e~ in 4ke Developer Agreements hereinabQve appr~v~d an6
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the Board are hereby authorized and directed to evidence the Cit g
and, subject to such conditions, the Mayor and the City Clerk of 8
received and approved the report referred to in Section 14 hereo 7
provided further that the Director of Building and Planning has.
10 acceptance of the offer made by siad Purchase Contract by execut
11 and delivering to Paine Webber-Incorporated said Purchase Contrz
12 in said form with such changes therein as the officers executinc
13 same may approve, such approval to be conclusively evidenced by
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specifically authorized and directed to execute one or more 19
and orders of the City in connection with the Program, and is 18
sign all approvals, certificates, statements, requests, requisi 17
to administer the Program on behalf of the City, is authorized 16
15. The Director of Building and Planning is hereby desig: 15
such execution and delivery.
with the sale of the Bonds is hereby authorized. The Director 28
distribution of such Preliminary Official Statement in connect 27
Director of Building and Planning and the City Attorney; and t 26
form presented with such changes thereto as may be approved by 25
presented at this meeting is hereby approved in substantially 24
16’. The Preliminary Official.Statement relating to the Bo1 23
the Indenture. 22
the Bonds from the Program Fund established under and pursuant 21
requisitfons authorizing the Trustee to pay the costs of issuj 20
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and deliver to Paine Webber Incorporated a final Official Stateme 2
Building and Planning hereby is authorized and directed to execut
3 // relating to the Bonds in such form as said officer may approve.
4 I1 17. Any document the execution of which by the Mayor is
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act of the Mayor, be executed by the Mayor Pro Tempore. 6
authorized by this Resolution may, in the absence or inability tc
7 18. The officers of the City are hereby authorized and
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execute and deliver any and all documents which they may deem g
directed, jointly and severally, to do any and all things and to
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of this resolution (including arrang.ing for a policy of municipa 12
and delivery of the Bonds and otherwise to effectuate the purposi 11
necessary or advisable in order to consummate the issuance, sale
bond insurance with respect to the Bonds if Paine Webber
14 Incorporated shall have so recommended, provided that the City s
15 have no liability for the premium applicable thereto except to t
16 extend bond proceeds and/or revenues are available therefor); an
17 such actions previously taken by such officers are hereby ratifi
18 and confirmed.
19 PASSED, APPROVED AND ADOPTED by the City Council of the Cit
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day of June , 1985, by the following vote, to wit: .21
of Carlsbad, California, at a regular meeting held on the 4th
22 AYES: Council &k.nbers Casler, lewis, Kulchin, Chick and Pettine
23 /j NOES : None
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ABSENT : None
ATTEST: 26 /I
vl A ,_ I/. &?&?/
R, Mayor
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ALETHA L. RAUTENKRANZ, City jtlerk
(SEAL)
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