HomeMy WebLinkAbout1985-06-04; City Council; Resolution 80514
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RESOLUTION NO. 8051
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALPFORNIA, 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, California,
dishes to engage in a home mortgage finance progrsm (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 incomelimitsestablished by the Act and wishes to issue revenue
Donds pursuant to the Act to provide funds for the Program; and
WHEREAS, allacts,,conditions and other things required by the
4ct, and by all other laws of the State of California to exist, to
nave happened and to have been performed precedent to and in
zonnection with the issuance of such revenue bonds exist, have
nappened, and have been performed in regular and due time, form and
nanner as required by law, and the City is now duly authorized and
mpowered, 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;
NOW, THEREFORE, the City Council of the City of Carlsbad herebl
3oes find, determine, resolve and order as follows:
1. The above recitals, and each of them, are true andcorrect
2. The Program complies with the Land Use Element and the
Housing Element of the City's General Plan.
3. The Rules and Regulations Establishing Eligibility
kiteria for Mortgagors and the Rules and Regulations Establishing
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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.
4. The proposed form of Developer Agreement presented at
this meeting is hereby approved; and the Mayor and the City Clerk
are hereby authorized and directed, for and in the name of the City
to execute such agreements with the developers determined by the
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 the
same may approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
Sai
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 Residences"
(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 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 area covered by the Program.
7. The proposed form of Mortgage Sale and Servicing
Agreement presented at this meeting is hereby approved; and the
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Mayor and the City Clerk are hereby authorized and directed, for
and in the name of the City, to execute such agreement with such
lending institution or lending insitutions as the Director of
Building and Planning determines to most benefit the Program. 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.
8. United Guaranty Residential Insurance Company of Iowa is
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 meeting
(the "Indenture") is hereby approved, and the Mayor and the City
Clerk of the City Council are hereby authorized and directed for
and in the name of the City to execute, acknowledge and deliver to
the trustee hereinafter mentioned the Indenture is said form with
such changes therein as the officers executing the same may approve,
such approval to be conclusively evidenced by the execution and
delivery thereof.
10. First Interstate Bank of California (the "Trustee") is
hereby appointed as trustee for the City and the owners of the
Bonds, with the powers and duties set forth in the Indenture and
the Mortgage Sale and Service Agreement. The Trustee is hereby
requested and directe2 to authenticate the Bonds by executing the
Trustee's certificate of authentication and registration appearing
thereon and to deliver the Bonds, when duly executed and authenti-
cated, to the parties named in the Purchase Contract hereinafter
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ientioned in accordance with written instructions executed on
)ehalf of the City by the Director of Building and Planning, which
xstructions said officer is hereby authorized and directed, for
ind in the name and on behalf of the City, to execute and deliver
:o the Trustee. Such instructions shall provide for the delivery
)f the Bonds in accordance with the Purchase Contract, upon payment
If the purchase price thereof. The Trustee is also designated as a
laying agent under the Indenture.
11. Pursuant to the Act, revenue bonds (the "Bonds") shall
)e sold and issued, as hereinafter provided, in an aggregate
xincipal amount not to exceed $15,000,000. The purpose for which
the proceeds of the Bonds shall be expended are the acquisition of
nortgage loans and such other purposes as are set forth in the
Indenture.
12.' The forms of the Bonds as set forth in the Indenture are
The Mayor and the City Clerk of the City Council nereby approved.
me hereby authorized and directed to execute such Bonds in the
name and on behalf of the City and under its seal in accordance wit
the Indenture.
13. The Director of Building and Planning is hereby authorize
and directed to select as the investment firm to prepare the report
required by Health and Safety Code Section 52032.5 such firm as he
determines will provide such report most effectively and econo-
mically, provided, however, that the City shall have no liability
for the payment of any fee to such firm except to the extent amount
are available for such purpose from the proceeds of the sale of
the Bonds.
14. The form of Purchase Contract presented at this meeting
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and the sale of the Bonds pursuant thereto are hereby approved,
provided that the purchase price of the Bonds and rates of interest
thereon shall permit the purchase of mortgage loans for the Program
at an interest rate equal to or less than the lowest such rate
specified in the Developer Agreements hereinabove approved and
provided further that the Director of Building and Planning has
received and approved the report referred to in Section 14 hereof:
and, subject to such conditions, the Mayor and the City Clerk of
the Board are hereby authorized and directed to evidence the City's
acceptance of the offer made by siad Purchase Contract by executing
and delivering to Paine Webber Incorporated said Purchase Contract
in said form with such changes therein as the officers executing tht
same may approve, such approval to be conclusively evidenced by
such execution and delivery.
15. The Director of Building and Planning is hereby designate(
to administer the Program on behalf of the City, is authorized to
sign all approvals, certificates, statements, requests, requisition:
and orders of the City in connection with the Program, and is
specifically authorized and directed to execute one or more
requisitions authorizing the Trustee to pay the costs of issuing
the Bonds from the Program Fund established under and pursuant to
the Indenture.
16. The Preliminary Officialstatemen-trelating to the Bonds
presented at this meeting is hereby approved in substantially the
form presented with such changes thereto as may be approved by the
Director of Building and Planning and the City Attorney; and the
distribution of such Preliminary Official Statement in connection
with the sale of the Bonds is hereby authorized. The Director of
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3uilding and Planning hereby is authorized and directed to execute
2nd deliver to Paine Webber Incorporated a final Official Statement
relating to the Bonds in such form as said officer may approve.
17. Any document the execution of which by the Mayor is
mthorized by this Resolution may, in the absence or inability to
3ct of the Mayor, be executed by the Mayor Pro Tempore.
18. The officers of the City are hereby authorized and
2irected, jointly and severally, to do any and all things and to
Zxecute and deliver any and all documents which they may deem
necessary or advisable in order to consummate the issuance, sale
md delivery of the Bonds and otherwise to effectuate the purposes
Df this resolution (including arranging for a policy of municipal
bond insurance with respect to the Bonds if Paine Webber
Incorporated shall have so recommended, providedthat the City shal
have no liability for the premium applicable thereto except to the
extend bond proceeds and/or revenues are available therefor); and
such actions previously taken by such officers are hereby ratified
and confirmed.
PASSED, APPROVED AND ADOPTED by the City Council of the City
of Carlsbad, California, at a regular meeting held on the 4th
day of June , 1985, by the following vote, to wit:
AYES: Council Menhers Casler, Lewis, Kulchin, Chick and Pettine
NOES : None
ABSENT : None
ATTEST :
(SEAL 1
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