HomeMy WebLinkAbout1996-11-14; Housing Commission; Resolution 96-0141
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HOUSING COMMISSION RESOLUTION NO. 96-01 4
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF
CARLSBAD, CALIFORNIA TO RECOMMEND APPROVAL OF AN
AFFORDABLE HOUSING AGREEMENT BETWEEN THE CITY OF
CARLSBAD AND THE REAL ESTATE COLLATERAL MANAGEMENT,
INC., A SUBSIDIARY OF BANK OF AMERICA, ESTABLISHING A
CITY-WIDE PROGRAM ASSISTING LOWER-INCOME CARLSBAD
RESIDENT HOUSEHOLDS WITH FIRST-TIME HOME PURCHASES.
APPLICANT: REAL ESTATE COLLATERAL MANAGEMENT, INC.,
A SUBSIDIARY OF BANK OF AMERICA
WHEREAS, Bank of America, the owner/developer of the Arroyo La
Costa Master Plan, is required to provide assistance to the City of Carlsbad to
develop affordable housing opportunities for lower income households within the City
of Carlsbad; and
WHEREAS, Bank of America, through a subsidiary company known as
Real Estate Collateral Management, Inc., has offered to establish, fund and operate a
"Carlsbad Homeownership Assistance Program (CHAP)"; and
WHEREAS, the proposed program serves to meet key Housing Element
goals of the City of Carlsbad while taking advantage of the role of the Bank of
America in the future development of La Costa; and
WHEREAS, said Housing Commission did, on the 14th day of
November, 1996, hold a public meeting to consider said homeownership purchase
assistance program; and
WHEREAS, at said public meeting, upon hearing and considering all
testimony, if any, of all persons desiring to be heard, said Commission considered all
factors relating to the proposed program.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing
Commission of the City of Carlsbad, California, as follows:
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1. The above recitations are true and correct.
2. The project is consistent with the goals and objectives of the City of
Carlsbad's Housing Element, Consolidated Plan, and the lnclusionary
Housing Ordinance.
3. That based on the information provided within the staff report dated
November 14, 1996 and testimony presented during the public meeting of
the Housing Commission on November 14, 1996, the Commission
RECOMMENDS APPROVAL of the Carlsbad Homebuyer Assistance
Program proposed by Bank of America to be operated by a subsidiary
company known as Real Estate Collateral Management Inc. subject 'to the
conditions outlined herein.
CONDITIONS:
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2.
3.
4.
5.
The Applicant shall fund the Carlsbad Homebuyer Assistance Program
(CHAP) in the amount of $3.2 million paid into the fund in installments as
the various phases of Arroyo La Costa receive final map approval. For every
100 units in the Master Plan, an approximate contribution of $300,000
shall be made to the CHAP Fund.
The funds deposited into the CHAP Fund will be used to make deferred
payment second mortgage loans and to pay reasonable costs of loan
servicing. The loans shall be deferred for a period of five (5) years with a
repayment of the principle amount only over the next ten (IO) years. The
loan must be repaid upon transfer of the property. The loans shall provide
for a sharing of any appreciation between the City of Carlsbad and the
homeowner based upon proportionate contributions to the initial purchase. ~ '
The Applicant shall be required to originate CHAP loans for an initial period
of five (5) years and service those loans until they are retired. The
Applicant and the City may mutually agree to extend the term.
The CHAP shall assist households earning no greater than 80% of the Area
Median Income for San Diego County at the time of purchase. Households
participating in the program may not have owned a home for three (3)
years prior to the purchase and must reside and/or be an employee of a
licensed business within the City of Carlsbad.
The maximum purchase price for a home in Carlsbad shall not exceed the
price established by the U.S. Department of Housing and Urban
Development/FHA limits.
HC RES0 NO. 96-014
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6. There shall be no price restrictions on the resale of the homes purchase(
through the CHAP. Any balance remaining on the CHAP loan and a share of
any appreciation shall be recaptured and returned to the CHAP Fund to be
reused for other loans.
7. The Applicant shall enter into an Affordable Housing Agreement with the
City of Carlsbad which is in substantial conformance with the draft
agreement presented to the Housing Commission on November 14, 1996.
The agreement shall be binding to all future owners and successors in
interest. The Applicant shall also enter into an Operating Agreement with
the City of Carlsbad and the Bank of America Community Development
Bank which will implement the Affordable Housing Agreement.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
Housing Commission of the City of Carlsbad, California, held on the 14th day of
November, 1996, by the following vote, to wit:
AYES: Chairperson Calverley, Commissioners: Escobedo, Noble,
Sato, Scarpelli, Schlehuber, Walker & Wellman.
NOES: None.
ABSENT: Commissioner Rose.
ABSTAIN: None.
ATTEST:
EVAN E. BECKER
Housing and Redevelopment Director
HC RES0 NO. 96-014
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