HomeMy WebLinkAbout1999-07-08; Housing Commission; Minutes_- HOUSING COMMISSION AGENDA
THURSDAY, JULY 8,1999
6:OO P.M. CAdSbAd, CAhfORNiA 92008
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HOUSING COMMISSION AGENDr .
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' JULY 8,1999
NEW BUSINESS:
I. LEASE-PURCHASE AFFORDABLE HOUSING PROCRAM HC RESONO: 99-006
RECOMMENDATION OF APPROVAL TO THE CITY VOTE:
ACTION: COUNCILOF THE AGREEMENT BY AND BETWEEN THE
CITY OF CARLSBAD AND THE SAN DIEGO AREA
HOUSING AND FINANCE AGENCY, A JOINT POWERS
AUTHORITY, FOR THE PURPOSE OF CREATING A
LEASE-TO-OWN AFFORDABLE HOUSING PROGRAM,
STAFF RECOMMENDATION: APPROVAL
STAFF: CRAIG RUlZ
MANAGEMENT ANALYST
ANNOUNCEMENT'S
CHAIRPERSON REPORT
DIRECTOR REPORT rc-
ADJOURNMENT TIME:
TkE Chy of CnRkbAd Howirq ,wd REdwElopMErn DEPARTMENT A REPORT TO T~E HousiNc, COMMiSSiON
hff: Cwiq biz MANAC~I~UT ANA~YST
ITEM NO. 1
DATE: JULY 8,1999
SuBpECT: LEASE-PURCHASE AFFORDABLE HOUSING PROGRAM -
RECOMMENDATION OF APPROVAL TO THE CITY COUNCIL OF THE
AGREEMENT BY AND BETWEEN THE CITY OF CARLSBAD AND THE SAN
DIEGO AREA HOUSING AND FINANCE AGENCY, A JOINT POWERS
AFFORDABLE HOUSING PROGRAM.
AUTHORITY, FOR THE PURPOSE OF CREATING A LEASE-TO-OWN
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RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 99-006, recommending
APPROVAL to the City Council of the agreement by and between the City of Carlsbad
and the San Diego Area Housing and Finance Agency, a Joint Powers Authority for the
purpose of creating a Lease-to-Own Housing Program.
PROJECT BACKGROUND
The City of Carlsbad has been invited to participate in the San Diego Area Housing and
Finance Agency (SDAHFA), a joint powers authority. The purpose of the Agency is to
create a residential Lease-to-Own Program ("Program"). As proposed, the agency will
create a pool of money to provide homebuying opportunities for households earning a
maximum of 140% or less than area median income (AMI). The money to purchase
homes would be established through the issuance of tax exempt bonds. The Agency is
in the process of being formed and no bonds have yet been issued.
PROGRAM DESCRIPTION
The Program allows families to initially lease a house with a 2% (of the sales price)
program participation fee and then assume a conventional 30-year fixed rate mortgage
after three years in the program to purchase the home. Up to one-half of the
participation fee may come from a gdt or grant. The maximum income of home buyers
would be limited to 140% of the AMI. The Program is not limited to first time home
buyers. The maximum purchase price would be limited to $240,000.
_- LEASE-PURCHASE AFFORDABLE HOUSING PROGRAM
JULY 8,1999
PAGE 2
The Program will be available to home buyers in participating jurisdictions. To date,
the Cities of El Cajon, National City, Santee, Vista and the County of San Diego have
approved the concept and formation of the Agency. In the upcoming month, the cities
of Escondido, Poway and San Diego will also consider participation.
IV. PROGRAM OPERATION
The Program provides down payment and closing costs for home purchasers. The
Program takes out a mortgage on behalf of the Participant at current mortgage rates,
and participants build equity in the home during a three-year lease period, then assume
the mortgage from the Program.
For the first three years, the home purchaser makes monthly lease payments to the Program’s non-profit corporation rather than payments to a mortgage lender. After
three years, lease payments are paid directly to the mortgage company. The lease-to-
own conversion takes place without increases in monthly payments under a traditional
30-year conventional fixed rate mortgage established at the time the purchaser commits
to the house. Upon conversion, the home owner would make the monthly mortgage
payments for the remaining 27 years.
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The program wilt require that tenants be requalified by the lender immediately prior to
mortgage assumption to ensure the tenant continues to meet its creditworthiness standards including credit and employment. The lender typically charges an-
assumption fee of approximately $250 and process the assumption agreement. If the
tenant does not quahfy, the lease can be extended in order to allow the tenant to correct
those items that caused the non-approval, or the tenant can be removed since he or she
did not continue to meet the conditions of the lease.
During the first three years, a program participant must demonstrate the ability to make
payments by meeting the home lease financial obligation. A participant who fails to do
so will be evicted and replaced by another family desiring home ownership. The new
family benefits from the program costs and amortization already met by the prior
participant. In order to enhance success rates, purchasers will be required to complete
home ownership education.
The above information states the general operating procedures of the Program.
However, the program may be designed to meet the requirements of each particular
jurisdiction. Should it choose to do so, the Housing Commission could recommend that
specific requirements be placed upon the Program for its use within the City of
Carlsbad. Examples of such requirements could include revised income requirements
(e.g. 120% of AMI vs. 140% of AMI) or residency requirements.
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LEASE-PURCHASE AFFORDABLE HOUSING PROGRAM
JULY 8,1999
PAGE 3
V. STAFF RECOMMENDATION
The City's Housing Element states that the City will establish programs that will meet
the needs of lower and moderate income households. It is staff's opinion that the Lease-
to-Own Program will provide valuable home ownership opportunities. Therefore, staff
recommends that the Housing Commission recommend to the City Council that the
City of Carlsbad participate in the subject program with a modification to limit
participation to households at 120% or less of AMI.
VI. EXHIBITS
1. Housing Commission Resolution No. 99-006
2. Draft Joint Exercise of Powers Agreement
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HOUSING COMMISSION RESOLUTION NO. 99-006
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL TO
THE CITY COUNCIL OF THE AGREEMENT BY AND BETWEEN
THE CITY OF CARLSBAD AND THE SAN DIEGO AREA
HOUSING AND FINANCE AGENCY, A JOINT POWERS
OWN AFFORDABLE HOUSING PROGRAM.
AUTHORITY, FOR THE PURPOSE OF CREATING A LEASE-TO-
WHEREAS, the City of Carlsbad seeks to promote home ownership to improve the City’s
housing stock and to further economic development for the welfare of its residents; and
WHEREAS, the Housing Element seeks to provide a variety of housing opportunities for
households of all income levels; and
WHEREAS, there is growing need for the City to find new cooperative ways to develop
programs that will increase home ownership opportunities and improve community life; and
WHEREAS, the San Diego Area Housing & Finance Agency is a cooperative approach
between cities that will increase home ownership and thereby improve the quality of community life
for those cities participating in the Authority; and
WHEREAS, the City of Carlsbad will further its goal of home ownership within the
community through membership in the San Diego Area Housing and Finance Agency; and
WHEREAS, the San Diego Area Housing and Finance Agency provides for home ownership
programs individually tailored for each member city;
WHEREAS, on July 8, 1999, the Housing Commission held a public meeting to consider the
Lease-to-Own Program to provide home ownership opportunities to households earning up to 140% of
:he Area Median Income in the City of Carlsbad; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
3ersons desiring to be heard, said Commission considered all factors relating to the Lease-to-Own
Program;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of
zarlsbad, California, as follows:
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The above recitations are true and correct.
The Program is consistent with the goals and objectives of the City of Carlsbad's Housing
Element, the Consolidated Plan, the Inclusionary Housing Ordinance, and the Carlsbad
General Plan.
As recommended by the Commission, the project will provide a minimum of homebuying
opportunities to household earning up to 120% of the Area Median Income. The Program,
therefore, has the ability to effectively serve the City's housing needs and priorities as
expressed in the Housing Element.
That based on the information provided within the Housing Commission Staff Report and
testimony presented during the public meeting of the Housing Commission on July 8, 1999,
the Housing Commission ADOPTS Resolution No. 99-006, recommending APPROVAL to
the City Council of the agreement by and between the City of Carlsbad and the San Diego
Area Housing and Finance Agency, a Joint Powers Authority for the purpose of creating a
Lease-to-Own Affordable Housing Program, with a modification to limit participation in the
Program to those households with a gross annual income equal to or less than 120% of the
Area Median Income adjusted for household size.
That the Housing Commission recommends that the City Manager or his designee be
authorized to execute all documents related to the Lease-to-Own Housing Program,
including but not limited to the Joint Exercise of Powers Agreement creating the San Diego
Area Housing and Finance Agency, subject to review and approval by the City Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission
Jf the City of Carlsbad, California, held on the 8* day of July, 1999, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROY LATAS, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
DEBORAH K. FOUNTAIN
HOUSING AND REDEVELOPMENT DIRECTOR
YC RESO. NO. 99-006
DAGE 2
Dated as of March 1,1999
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JOINT EXERCISE OF POWERS AGREEMENT
CREATING THE SAN DIEGO AREA HOUSING & FINANCE AGENCY
SA99070004 1
JOINT EXERCISE OF POWERS AGREEMENT .
CREATING THE SAN DIEGO AREA HOUSING & FINANCE AGENCY
This Joint Exercise of Powers Agreement (the “Agreement”), dated for convenience as
March 1, 1999, is made and entered into by the signatories hereto, each a public entity duly
organized and existing under the Constitution and laws of the State of California (each a
“Member” or a “City” or Tounty” and, collectively, the “Members“).
RECITALS
WHEREAS, the Members are each authorized and empowered to provide home mortgage
loans to qualified persons and families; finance the construction, rehabilitation, acquisition, lease,
and sale of housing; promote economic development; finance other capital improvements; and
issue revenue bonds to provide the funds’ therefor; and
WHEREAS, Chapter 5 of Division 7 of Title 1 of the California Government Code
(commencing at Section 6500) (the “Act”) provides that two or more public agencies may by
agreement jointly exercise any powers common to the parties to the agreement and may by that
agreement create an entity which is separate from the parties to the agreement; and
WHEREAS, the parties to this agreement have each determined (1) that the public
interest and economy will be served by, and require, the joint exercise of their common powers
and (2)that a separate agency shall be created which shall have and exercise those powers
common to the Members;
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NOW, THEREFORE, for and in consideration of the mutual benefits and premises
contained herein, the Members agree as follows:
ARTICLE 1
DEFINITfONS AND INTERPRETATION
Section 1.01. Definitions. Unless the context otherwise requires, the terms defined in
this Section shall have the meanings herein specified for all purposes of this Agreement.
APencv
The term “Agency” shall mean the San Diego Area Housing & Finance Agency created
by this Agreement.
A meement
- The term “Agreement” shall mean this Joint Exercise of Powers Agreement as it now
exists or as it may fiom time to time be amended, supplemented or modified by the addition of
SR99070004 I
- signatory parties or by any supplemental agreement or amendment entered into pursuant to the
provisions hereof.
Associate Member
The term “Associate Member” shall mean those Members identified as such in Section
3.03, and which shall not be entitled to appoint a representative to serve on the Board.
- Board
The term “Board” shall mean the governing board of directors of the Agency as described
in Article 8 hereof.
Bonds
The term “Bonds” shall mean revenue bonds, notes, certificates of participation, or other
evidences of indebtedness of the Agency, authorized and issued pursuant to law.
Members
The term “Members” shall mean the governmental entities jointly exercising power
through, and which are signatory to, this Agreement, and shall include both Voting Members and
Associate Members. The Members may also be referred to as the “Cities” or “Counties”. -
Program
The term “Program” shall mean the Agency’s activity of furthering home ownership in
the geographical area of the Members signatory to this Agreement and of financing other capital
improvements, through the sale of revenue bonds, the purchase, construction or rehabilitation of
housing or other capital improvements, the entering into of leases, the sale of housing, the
provision of low-down-payment mortgages for buyers, and the exercise-of any other powers
available to the Agency under Article 2 or Article 4 of the Act.
Voting; Members
The term “Voting Members” shall mean those Members identified in Section 3.02 as
such, and which shall be entitled to appoint a representative to serve on the Board as a voting
member.
Section 1.02. CaDtions and Headings. Captions and headings used herein are for
convenience of reference only, do not define or limit the scope of any provision hereof, and are
not to be considered in construing this Agreement.
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ARTICLE 2
PURPOSE
Section 2.01. Purposes of Ameement and Agency. This Agreement is made pursuant to
the Act for the joint exercise of certain powers common to the Members. The Members are
empowered by the laws of the State of California to exercise powers as specified in the Recitals.
It is also the purpose of this Agreement to provide for the inclusion at a subsequent date of such
additional Members as may desire to become signatories to this Agreement and members of the
Agency. The purpose of the Agency is to cany out the Program for the public good and for the
residents who will benefit from the increased availability of housing affordable for purchase by
them.
ARTICLE 3
MEMBERSHIP; WITHDRAWAL,
Section 3.01. Contract With All Other Members. Each Member certifies that it intends
to and does contract with all other Members which are signatories to this Agreement and with
such other Members as may later be added as signatories to this Agreement. Each Member also
certifies that the deletion of any Member as a party to this Agreement, except as a joint effort to
terminate the Agreement pursuant to Section 7, shall affect neither this Agreement nor its intent
to contract with the remaining Members to cany out the purpose of this Agreement. All
Members to this Agreement acknowledge and agree that additional parties may become
Members to this Agreement without formal amendment hereof, by the execution of a counterpart
signature page.
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Section 3.02. Voting Members. The Voting Members of the Agency are listed on
Exhibit A, attached hereto, and shall be entitled to appoint a City Councilmember, a member of
the Board of Supervisors or a staff member to serve on the Board.
>Section 3.03. Associate Members. The Associate Members of the- Agency are listed on
Exhibit B, attached hereto, and shallnot be entitled to appoint a City Councilmember, a member
of the Board of Supervisors or a staff member to serve on the Board, and shall not have voting
power on such Board.
Section 3.04. Withdrawal. Members of the Agency may withdraw fiom membership in
the Agency at any time upon thirty (30) days' advance written notice, subject to the followkg
exceptions:
(a) the restriction on withdrawal contained in Section 7.01 hereof; and
(b) a Member may not withdraw for so long as bonds or other obligations of
the Authority issued pursuant to and under the Program are outstanding, but only if the proceeds
of such bonds or other obligations were used to make loans or finance a project within the
jurisdiction of such Member.
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ARTICLE 4
CREATION OF THE AGENCY
Section 4.0 1. Creation of the Agency. There is hereby created a joint exercise of powers
authority to be known as the San Diego Area Housing & Finance Agency. The Agency shall be
a public entity separate from the Members. The debts, liabilities, and obligations of the Agency
shall not constitute debts, liabilities, or obligations of any Member.
ARTICLE 5
POWERS OF THE AGENCY; RESTRICTION UPON EXERCISE
Section 5.01. Powers of the Agency. The Agency shall have all powers common to the
Members and is hereby authorized to do all acts necessary for the exercise of said common
powers, including, but not limited to, the following:
(a) the power to make and enter into contracts;
(b) the power to accept the assignment of contracts which relate to the
purposes of the Agency and which were entered into by the Members prior to formation
of the Agency;
(c) the power to incur debts, liabilities, or other obligations which are not
debts, liabilities or obligations of the Members, or any of them;
(d) the power to employ agents and employees;
(e) the power to acquire, construct, manage, maintain, and operate any
building, works or improvements; -
(0 the power to acquire, hold, lease (as lessor or lessee), or dispose of
property, including property subject to home mortgages;
(g) the power to sue and be sued in its own name;
@) the power to incur debts, liabilities or other obligations to finance the
Program and any other powers available to the Agency under Article 2 or Article 4 of the
Act; and
(i) all powers necessary and proper to carry out the terms and provisions of
this Agreement, or otherwise authorized by law.
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Section 5.02. Membership Agreements. The Agency shall have the power to enter into
membership agreements with any public agency upon the approval of the Board.
Section 5.03. Other Powers. Each Member agrees that:
(a) all of its powers to acquire, construct, rehabilitate, finance, lease, or
dispose of property may be exercised by the Agency;
(b) the Agency may originate or acquire home mortgages with respect to
properties within its geographical boundaries to further the Agency’s Program; and
(c) its grant of power to the Agency is to further the purposes of the Agency
and this Agreement and shall not be deemed to limit its power to act independently of the
Agency.
Section 5.04. Restrictions. The powers of the Agency shall be exercised subject only
to the restrictions upon the manner of exercising such powers as are imposed upon the City of , California, as provided in Section 6509 of the Act.
Section 5.05. Investments. Subject to the applicable provisions of any indenture or
resolution providing for the investment of moneys held thereunder, the Agency shall have the
power to invest any money in the treasury that is not required for the immediate necessities of the
Agency, as the Agency detennines is advisable, in the same manner as local agencies pursuant to
California Government Code Sections 53601 et seq.
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ARTICLE 6
COOPERATION
Section 6.01. Additional Proceedings and Actions. Each Member agrees to undertake
such additional proceedings or actions as may be necessary in order to cq-out the terms and the intent of this Agreement. -
Section 6.02. Actions Affecting Ratings. Each Member further agrees to refrain from
taking any actions which would, to its knowledge, tend to adversely affect the rating on any
Bonds sold or to be sold to Mer the Program of the Agency. The exercise by any Member of
its independent power to issue bonds or other indebtedness shall not be within the restrictions of
the preceding sentence.
ARTICLE 7
TERMINATION OF POWERS; DISTRIBUTION OF ASSETS
Section 7.01. Termination. The Agency shall continue to exercise the powers herein
conferred upon it until the earlier of March 1, 2049 or such time as all Members shall have
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mutually agreed to terminate this Agreement. However, if any Bonds shall have been issued and
are outstanding, then neither this Agreement nor the powers granted hereunder shall terminate,
and Members benefiting from such Bonds, directly or indirectly, shall not withdraw from the
Agency, until all such Bonds and the interest thereon shall have been paid or provision for such
payment shall have been made,
Section 7.02. Distribution of Assets.
(a) In the event that Bonds are not issued, upon termination of this Agreement, all
assets of the Agency shall be distributed to the respective grantors or assignors in proportion to
their respective contributions.
(b) In the event that Bonds are issued and following payment of all principal and
interest on the Bonds, or following the provision therefor, upon termination of this Agreement,
one half of all assets of the Agency shall be divided equally among the Voting Members, and the
other half of the Agency’s assets shall be divided pro rata among all Members, based on
participation in the Program.
Section 7.03. Continued Existence of Agency. Upon termination, this Agreement and
the Agency shall continue to exist for the limited purpose of distributing the assets of the Agency
and all other functions necessary to close out the affairs of the Agency.
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ARTICLE 8
GOVERNING BOARD
Section8.01. BoardofDirectors. The Agency shall be governed by a Board of
Directors consisting of one City Council member, member of the Board of Supervisors or staff
member (each, a “Director,” and collectively, the “Board”) from each of the Voting Members.
Each of the initial Directors shall be approved by their respective city councils forthwith upon
approvd of this Agreement, and each shall serve at the pleasure of his or her respective city
council or board of supervisors. -
Section8.02. Alternates. The city council or board of supervisors of each Voting
Member shall appoint one alternate to the Board of Directors, who shall be a member of the city
council or the board of supervisors or of the staff of such city or county. When the Director fiom
any Voting Member is not present at a Board meeting, the alternate director appointed by such
Voting Member may serve in his place with the same authority as a Director.
Section 8.03. ComDensation and Expenses. Directors may receive compensation for
their services pursuant to an authorizing resolution of the Board providing therefor. Each
member may be reimbursed for actual expenses, including travel incident to service as a
Director, pursuant to an authorizing resolution of the Board.
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ARTICLE 9
MEETINGS OF THE BOARD
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Section 9.01. Remlar Meetings. The Board shall hold at least one regular meeting each
fiscal year and, by resolution, may provide for the holding of regular meetings at more fiequent
intervals. The regular meetings of the Board shall be held in the ofices of one of the Voting
Members or at such other place and upon a date and hour as may be fixed fiom time to time by
resolution of the Board.
Section 9.02. Suecial Meetings. Special meetings of the Board may be called in
accordance with the provisions of California Government Code Sections 54950 et seq. All
meetings of the Board shall be called, noticed, held and conducted subject to the provisions of
the Ralph M. Brown Act, being Sections 54950 et sea. of the California Government Code.
Section 9.03. Minutes. The Secretary of the Agency shall cause minutes of all meetings
of the Board of Directors to be kept and shall, as soon as practicable after each meeting, cause a
copy of the minutes to be distributed to each member of the Board and to each Member.
Section 9.04. Ouonun. The attendance of a majority of the Board shall constitute a
quorum for the transaction of business. A majority vote of those in attendance shall be necessary
to take Board action, except that less than a quorum may adjourn a meeting fiom time to time.
Section 9.05. Voting. Each member of the Board shall have one vote.
ARTICLE 10
OFFICERS; DUTIES
Section 10.01. Chaimerson, Vice-Chaimerson and Secretarv. The Board shall elect a
Chairperson, a Vice Chairperson, and a Secretary of the Agency from among its members, who
shall each serve a term of two years. -
(a) The Chairperson shall preside at all meetings, sign documents as may be
necessary for the proper functioning of the Agency, and perform such other duties as may
be imposed by the Board of Directors.
(b) The Vice Chairperson shall take the place of the Chairperson in the
absence of the Chairperson and perform such other duties as may be imposed by the
Board of Directors.
(c) The Secretary shall cause minutes to be kept of all meetings and to be
distributed to the Members and each of the members of the Board of Directors and
perform such other duties as may be imposed by the Board of Directors.
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Section 10.02. Treasurer-Controller. The Treasurer-Controller of the Agency shall be
, California, or such other person or entity designated by the Treasurer of the of
the Board.
(a) Subject to the applicable provisions of any Bond indenture or resolution
providing for a trustee or other fiscal agent, the Treasurer-Controller shall have custody
of all the money of the Agency, from whatever source, and, as such, shall have the
powers, duties and responsibilities specified in Section 6505.5 of the California
Government Code.
(b) The Treasurer-Controller of the Agency is designated as the public officer
or person who has charge of, handles, or has access to any property of the Agency, and as
such, shall file a fidelity bond with the Secretary of the Agency in an amount to be fixed
by the Board. The cost of such bond shall be a proper charge against the Agency. To the
extent permitted by an existing fidelity bond, the Treasurer-Controller may satisfy this
requirement by filing a fidelity bond obtained in connection with another public office, if
the amount of that bond equals or exceeds the bond amount established by the Board of
Directors.
ARTICLE 11
FISCAL YEAR
The fiscal year of the Agency shall be the period from July 1 of each year through and
including the following June 30; provided, however, that if the date of this Agreement is other
than any July 1, the first fiscal year shall be the period from the date of this Agreement through
and including the following June 30.
ARTICLE 12
ADMINISTRATION -
Section 12.01. Administrative Entity. In accord with Section 6506 of the California
Government Code, the initial administrative entity of the Agency shall a California nonprofit
corporation established or selected for such purpose.
Section 12.02. Duties of Administrative Entity; Delepation. The administrative entity
shall be responsible for implementation of the Program of the Agency. In carrying out its
responsibilities for administration of the Program, the administrative entity may contract with
others, deemed by it to be qualified, to perform some or all of the administrative functions
required for implementation of the program.
Section 12.03. Redacement of Administrative Entity. The Board may change the -- administrative entity at its discretion.
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Section 12.04. Amointment of Underwriter. J. K. Chilton & Associates, Inc. is hereby
appointed as underwriter of the Bonds issued by the Agency.
ARTICLE 13
BONDS
Section 13.01. Issuance of Bonds. The Agency shall have the power to issue Bonds or
other forms of indebtedness authorized by law, at any time, for the purpose of raising funds
necessary to carry out its powers and purpose under this Agreement.
ARTICLE 14
AGREEMENT NOT EXCLUSIVE
Section 14.01. Aneement Not Exclusive. This Agreement is not the exclusive means
by which the Members may perform duties relating to housing imposed by law. Each of the
Members reserves the right to carry out other housing financing programs, to issue other
obligations, and to form other joint powers authorities to perform such duties.
Section 14.02. Affect On Other Aureements. This Agreement does not alter or modify
the terms of other agreements which may exist between the Members except as expressly
provided herein. .-
ARTICLE 15
CONTRIBUTIONS, ADVANCES, PRIOR EXPENSES
Section 15.01. Contributions and Advances. Contributions or advances of public funds
and of personnel, services, equipment or property may be made to the Agency by any Member
for any of the purposes of this Agreement. Funds collected from pkcipating developers,
lenders, or others may be used to defiay the cost of any such contribution. An advance may be
made subject to repayment and in such case shall be repaid if subsequently approved by the
Agency. If the repayment is approved by the Agency, the manner of repayment shall be as
agreed upon by the contributing Member and the Agency at the time of the advance.
Notwithstanding any other contrary provision of this Agreement, no Member shall be obligated
to make contributions to the Agency, except as may be required pursuant to Section 16.02 or
Section 18.02 hereof.
Section 15.02. Exuenses. Expenses incurred prior to a Bond sale, such as the costs of a
Bond rating, printing an official statement and a preliminary official statement, a market study, a
feasibility study, attorneys’ fees, or other prior expense, shall be charged as costs of issuance of
the bonds, payable from the proceeds of the sale of such Bonds. -
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ARTICLE 16
ACCOUNTING AND REPORTING
Section 16.01. Accounting: Inspection bv Members. The Agency shall establish and
maintain such funds and accounts as may be required by generally accepted accounting practice
and by any provision of any resolution or indenture securing the Bonds of the Agency. The
books and records of the Agency shall be open to inspection by the Members at a reasonable
times.
Section 16.02. Annual Audit. The Agency shall be responsible for the strict
accountability of all funds and the reporting of all receipts and disbursements. Pursuant to
Section 6506 of the Act, the Agency shall cause an independent audit by a certified public
accountant to be made of its books and accounts each year. The minimum requirements of the
audit shall be those prescribed by the State Controller for special districts under Section 26909 of
the California Government Code or its successor statute and shall conform to generally accepted
auditing standards. The audit shall be provided to the Members within five months after the
close of each fiscal year. Any cost of the audit, including contracts with certified public
accountants, shall be borne by the Agency and shall be a charge against any unencumbered funds
of the Agency available for such purpose. To the extent that the Agency does not have adequate
hds to pay the cost of the audit, the Members shall bear the cost of any such deficiency equally.
Section 16.03. Inspection by Bondholders. All the books, records, accounts and files
referred to in this Section shall be open to the inspection of holders of the Bonds to the extent
and in the manner provided in any resolution or indenture providing for the issuance of Bonds.
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ARTICLE 17
DEFAULT AND REMEDIES
Section 17.01. Default. If any Member shall default on any covenant contained in this
Agreement, such default shall not excuse the defaulting Member fiom f;lfilling its obligations
under this Agreement and all Members shall continue to be liable for the performance of all
conditions and covenants of the Agreement.
Section 17.02. Enforcement of Agreement. The Members declare that this Agreement
is entered into for the benefit of the San Diego Area Housing & Finance Agency and grant to the
Agency the right to enforce, by whatever lawfd means the Agency deems appropriate, all of the
obligations of each of the Members.
Section 17.03. Remedies Cumulative. Each and all of the remedies given to the
Agency by this Agreement or by any law now or hereafter enacted are cumulative, and the
exercise of one right or remedy shall not impair the right of the Agency to exercise any or all
other remedies.
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c
- ARTICLE 18
DEBTS AND LIABILITIES, INSURANCE AND INDEMNIFICATION
Section 18.01. Debts and Liabilities. No Member shall be liable for any indebtedness
of the Agency except that which is consented to by his or her City Council or Board of
Supervisors. All persons dealing with or having a claim against the Agency are hereby notified
that no Member is liable for the debts of the Agency.
.
Section 18.02. Insurance. The Board shall maintain appropriate insurance to protect the
Members from such liabilities and obligations. The cost of such insurance shall be paid by the
Agency to the extent sufficient funds are available therefor. To the extent that the Agency does
not have sufficient funds available to maintain such insurance, the cost thereof shall be borne
equally by the Members.
Section 18.03. Indemnification. Each of the Members shall defend, indemnify and hold
each of the other Members and the Agency harmless fiom any and all claims, losses, suits,
injuries, deaths, damages, costs and expenses (each, a "Claim"), including reasonable attorney
fees, arising from or as a result of (in whole or in part), any acts, errors or omissions of the
indemnifying Member or its officers, agents, servants, employees or contractors during the
course of carrying out this Agreement, to the extent of such indemnifying Member's negligence
or willful misconduct. The Agency shall defend, indemnify and hold harmless each of the
Members from any and all Claims, including reasonable attorney fees, arising from or as a result
of (in whole or in part), any acts, errors or omissions of the Agency or its officers, agents,
servants, employees or contractors, to the extent of the Agency's negligence or willful
misconduct. The indemnities granted under this Section shall extend to the officers, agents,
servants, employees and contractors of each indemnified party.
ARTICLE 19
MISCELLANEOUS PROVISIONS
Section 19.01. Severability. If any part, term, or provision of this Agreement is
determined by a court of law to be illegal or in conflict with any law of the State of California or
otherwise unenforceable, the validity of the remaining parts, terms or provisions shall not be
affected.
Section 19.02. Binding Effect. This Agreement shall be binding upon and shall inure to
the benefit of the successors of the parties.
Section 19.03. Assignment and Delegation. Except to the extent expressly provided in
this Agreement, a Member may not assign any right or delegate any obligation hereunder without
the consent of the Board.
Section 19.04. Amendment and Modification of the Agreement. This Agreement may
be amended by a supplemental agreement executed by all Members at any time (1) prior to the
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issuance of Bonds, or (2) after the issuance of Bonds but subject to the conditions and restrictions
set forth in the resolution or resolutions authorizing the issuance of Bonds and in any indenture.
Additional Members may be added as parties to this Agreement by the appropriate execution of a
signature page, and no formal amendment or modification of this Agreement shall be required to
accomplish such purpose.
Section 19.05. Amrovals. Whenever an approval is required by this Agreement, unless
the context specifies otherwise, it shall be given by resolution duly and regularly adopted by the
City or County whose consent is required. Whenever an approval is required by the Agency, it
shall be by resolution duly and regularly adopted by the Board unless such approval can be given
by the administrative entity.
Section 19.06. Goveminp Law. This Agreement shall be governed by, and construed
under and in accordance with, the laws of the State of California.
Section 19.07. Countemarts. This Agreement may be executed in one or more
counterparts, and such counterparts, taken together, shall constitute but one and the same
Agreement.
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IN WITNESS WHEREOF, the Members identified in Section 3.02 have caused this
Agreement to be executed as of the date set forth below by the signatures of their respective
authorized officers.
Dated:
CITY OF
City Clerk
Approved as to form:
City Attorney
Mayor
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IN WITNESS WHEREOF, the Members identified in Section 3.02 have caused this
Agreement to be executed as of the date set forth below by the signatures of their
respective authorized officers.
Dated:
CITY OF
, City Clerk
Approved as to form:
, Mayor
, City Attorney
IN WITNESS WHEREOF, the Members identified in Section 3.02 have caused this
Agreement to be executed as of the date set forth below by the signatures of their respective
authorized officers.
Dated:
COUNTY OF
Clerk of the Board of Supervisors Chair
Approved as to form:
County Counsel
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EXHIBIT A
Voting Members of the Agency .
SA990700041
EXHIBIT B
Associate Members of the Agency
SR59070004 I