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HomeMy WebLinkAboutMINUTES - 07241984 - T.1 CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY MET IN ALL ITS CAPACITIES PURSUANT TO PROVISIONS SET FORTH IN RESOLUTION 84/296 AND THE JOINT EXERCISE OF POWERS AGREEMENT WITH THE CITY OF ANTIOCH AT 10: 50 A .M. TUESDAY JULY 249 1984 IN ROOM 107 COUNTY ADMINISTRATION BUILDING. MARTINEZ , CALIFORNIA PRESENT: HONORABLE TOM TORLAKSON CHAIRMAN , PRESIDING VERNE L . ROBERTS VICE CHAIRMAN SUPERVISOR TOM POWERS SUPERVISOR NANCY C . FAHDEN SUPERVISOR ROBERT I . SHCRODER ABSENT: SUPERVISOR SUNNE W . MCPEAK SECRETARY: Represented by Jeanne 0 . Maglio , Assistant Secretary After the adoption of Resolution No . 84-2 , the Contra Costa Mortgage Finance Authority adjourned at 11: 05 a .m. TOM TORLAKSON , CHAIRMAN ATTEST: A sistant Secretar , Contra Costa Mortgage Finance Authority CCHMFA1 c;2- CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY GOVERNING BOARD RESOLUTION NO. 84-2 RESOLUTION OF THE CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY ADOPTING FEASIBILITY STUDY; ADOPTING RULES AND REGULATIONS ESTABLISHING ELIGIBILITY CRITERIA FOR MORTGAGORS; ESTABLISHING AVERAGE AREA PURCHASE PRICE FOR EXISTING RESIDENCES; MAKING CERTAIN FINDINGS WITH RESPECT TO NUMBERS OF CREDITWORTHY PERSONS; MAKING CERTAIN FINDINGS WITH RESPECT TO AMOUNTS REQUIRED TO BE SET ASIDE FOR TARGETED AREAS; APPROVING ESTABLISHMENT OF AN ESCROW; AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY 1984 HOME MORTGAGE REVENUE BONDS; APPROVING THE PURCHASE CONTRACT AND AUTHORIZING THE CHAIRMAN AND VICE-CHAIRMAN TO EXECUTE SAID PURCHASE CONTRACT; APPROVING A PRIVATE MORTGAGE INSURANCE CARRIER; APPROVING A TRUSTEE, AN INDENTURE, ORIGINATION, SERVICE AND ADMINISTRATION AGREEMENT, DEVELOPER AGREEMENT, AND OFFICIAL STATEMENT; ADOPTING A SEAL; AND AUTHORIZING THE EXECUTION AND DELIVERY OF BONDS AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH WHEREAS, Chapters 1-5 of Part 5 of Division 31 of -the Health and Safety Code of the State of California (herein called the "Act" ) authorizes agencies which have been created by a joint powers agreement entered into by counties and cities pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California for the express purpose of the joint exercise of the powers of said counties and cities under the Act to issue revenue bonds for the -purpose of acquiring home mortgages as authorized by the Act, and the Act provides a complete, additional and alternative method for doing the things authorized thereby; WHEREAS, the Governing Board (the "Board" ) of the Contra Costa Home Mortgage Finance Authority (the "Authority" ) hereby finds and declares that it is necessary, essential and a public purpose for the Authority to acquire home mortgages pursuant to the Act, in order to increase the housing supply in the jurisdictions of the parties to the Joint Exercise of Powers Agreement Creating the Contra Costa Home Mortgage Finance Authority (the "Joint Exercise of Powers Agreement" ) and the Cities of Antioch, Brentwood, E1 Cerrito, Hercules, Martinez, Moraga, Pinole, Pleasant Hill, Richmond, and San Ramon (the "Participating Cities" ) for persons and families within the income limitations established by the Act; 000 6C15 WHEREAS, this Board hereby finds and declares that this resolution is being adopted pursuant to the powers granted by the Act; . WHEREAS, this Board has, by Resolution No. 84-1, adopted on June 12 , 1984, established a home mortgage finance program (the "Program" ) for such purpose,. and has determined to borrow money for such purpose by the issuance of revenue bonds as authorized by the Act; WHEREAS, the Participating Cities have agreed, pursuant to the Act, to cooperate in the Program and that the Authority shall exercise powers to acquire home mortgages pursuant to the Act with respect to property located within the geographic boundaries of such cities; WHEREAS, each qualified lending institution- which transacts business in the jurisdiction of the parties to the Joint Exercise of Powers Agreement has been permitted the opportunity to participate in the Program on an equitable basis with other participating lending institutions; WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the Bonds (hereinafter defined) and implementation of the Program as contemplated by this resolution and the documents referred to herein and in Resolution 84-1 exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act; NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the. Contra Costa Home Mortgage Finance Authority, as follows: 1. The report prepared by The Land Economics Group with respect to demand and feasibility of mortgage revenue bonds in the County of Contra .Costa is hereby approved and adopted. 2 . The Rules and Regulations Establishing Eligibility Criteria for Mortgagors and Home Mortgages, in substantially the form submitted to . this meeting, are hereby approved and adopted. Pursuant to said Rules and Regulations, this Board hereby finds and determines that the median household income for 1984 for the area identified in Section 6 are as set forth in said Section 6, subject to adjustment from time to time by this .Board by resolution in accordance with said Rules and Regulations. 2 040511-0012-188-4530s 3. Based upon the opinion letter of The Land Economics Group this Board hereby finds and determines that, in accordance with United States Treasury Regulation § 6a. 103A-2 (f) , the average area purchase prices of all single family residences for the Oakland, California primary metropolitan statistical area (the "PMSA" ) for the periods March 1, 1983 through February 29, 1984, which, with respect to such PMSA, is the most recent 12-month period for which sufficient statistical information is available, is $123, 142 for existing residences. This Board further finds and determines that the above average area purchase price for existing residences is based on more accurate and comprehensive data than the average area purchase price limitations published by the Treasury Department for the San Francisco, California standard metropolitan statistical area and that no such average area purchase price limitations have been published for the PMSA. The above average area purchase price are subject to adjustment from time to time by this Board by resolution in accordance with the Rules and Regulations referred to in Section 2 hereof. 4. This Board hereby finds and declares that there are insufficient numbers of creditworthy persons whose income does not exceed 80% of countywide median household income to allocate no less than half the remainder of funds allocated for home mortgages where the purchaser will not be the first occupant for households whose income does not exceed 80% of such countywide median household income. This Board therefore determines that no less than half the remainder of funds allocated for such home mortgages will be used for households whose income does not exceed 90% of countywide median household income. This Board hereby finds and declares that there are insufficient numbers of creditworthy persons whose income does not exceed 100% of countywide median household income to allocate no less than twenty percent of the remainder of funds allocated for home mortgages where the purchaser will be the first occupant for households whose income does not exceed 100% of such countywide median household income. This . Board therefore determines that no less than twenty percent of the remainder of funds allocated for such home mortgages will be used for households whose income does not exceed 110% of countywide median household income. 5. Based on the opinion letter of The Land Economics Group this Board hereby finds and determines that, in accordance with United States Treasury Temporary Regulation §6a. 103A-2(h) (2)-(3) , the portion of the lendable 3 040511-0012-188-4530s 000 6rr proceeds of the Bonds required to be made available for home mortgages with respect to residences in targeted areas is equal to $865, 983, being 40% of the average annual aggregate principal amount of mortgages executed during the immediately preceding three calendar years for single-family, owner-occupied residences in targeted areas (as defined in §6a. 103A-2(b) (4) and (5) of said Temporary Regulations and as of the date three months prior to the date of issuance of the Bonds) within the jurisdiction of the parties to the Joint Exercise of Powers Agreement and the Participating Cities. This Board hereby further directs the Trustee (as hereinafter defined) and the Administrator to make any additional amount of lendable proceeds of the Bonds available for home mortgages with respect to residences in targeted areas to the extent necessary to fully comply with the provisions of the Indenture. 6. The Authority hereby authorizes Manufacturers Hanover Trust Company of California to establish and maintain on behalf of the Authority escrow accounts, into which certain deposit fees and commitment fees received from developers participating in the Program are to be deposited. 7. Pursuant to the Act and the Indenture (hereinafter defined) , revenue bonds of the Authority, designated as "Contra Costa Home Mortgage Finance Authority 1984 Home Mortgage Revenue Bonds, " in the aggregate principal amount of not to exceed $59 . 5 million (the "Bonds" ) , are hereby authorized to be issued; provided, however, that in no event shall the aggregate principal amount of Bonds issued exceed the sum of the allocations of the parties to the Joint Exercise of Powers Agreement which have been approved by the Mortgage Bond Allocation Committee pursuant to Sections 50189 and 50191, and assigned to the Authority pursuant to Section 50193, of the Health and Safety Code of the State of California. 8. The proposed form of purchase contract between the Authority and Dean Witter Reynolds Inc. , as underwriter (the "Underwriter" ) , in substantially the form presented to this meeting, and the sale of the Bonds pursuant thereto, are hereby approved. The Chairman and Vice-Chairman of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the offer of the Underwriter to purchase the Bonds substantially in the form contained in said purchase contract and to execute and deliver said purchase contract in substantially said form, with such additions thereto or changes therein as such officers may require or approve, such approval to be 4 040511-0012-188-4530s doQ��� conclusively evidenced by the execution and delivery thereof (as finally executed, the "Purchase Contract" ) . 9. Verex Assurance, Inc. is hereby designated as private mortgage guaranty insurer for home mortgages. 10. The proposed form of indenture dated as of August 1, 1984, between the Authority and Manufacturers Hanover Trust Company of California as trustee (the "Trustee" ) , presented to this meeting, is hereby approved. The Chairman or Vice Chairman and Secretary or Assistant Secretary of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver an indenture in substantially said form, with such additions thereto or changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The date, maturity dates, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in said indenture as finally executed, and may or may not include municipal multiplier bonds; (the "Indenture" ) ; provided, however, that the terms of the Bonds shall be such as to result in a true interest rate on the Bonds not to exceed eleven and one-half percent ( 11 . 5%) per annum and in a stated rate of interest on the Home Mortgages not to exceed eleven and one-half percent ( 11 . 5%) per annum, excluding private mortgage insurance. 11. The proposed form of origination, service and administration agreement dated as of August 1, 1984, among the Authority, the County of Contra Costa, as administrator of the Program (the "Administrator" ) , Verex Assurance, Inc. (the "Compliance Agent" ) , the Trustee and the lending institutions identified in Exhibit A hereto, with such additional lending institutions (and omitting such lending institutions) as may be approved by the Chairman and/or Vice Chairman of the Authority (the "Lending Institutions" ) , in substantially the form presented to this meeting, is hereby approved. The Chairman and/or Vice-Chairmari of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver an origination, service and administration agreement with said Lending Institutions (or any or each of them) in substantially said form, with such additions thereto or changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. 5 040511-0012-188-4530s 000OPQ 12 . The proposed form of developer agreement, dated as of July 1, 1984, among the Authority, the Trustee, the Administrator and the developers identified in Exhibit B hereto, with such additional developers (and omitting such developers) as may be approved by the Chairman and/or Vice Chairman of the Authority (the "Developers" ) , in substantially the form presented to this meeting is hereby approved. The Chairman. and/or Vice Chairman of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver a developer agreement with said Developers (or any or each of them) in substantially said form, with such additions thereto or changes therein as such officers may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. 13 . The proposed form of final official statement relating to the Bonds, in substantially the form presented to this meeting, is hereby approved. The Chairman of the Authority is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute a final official statement in substantially said form, with such additions thereto or changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution thereof. The Underwriter is hereby authorized to distribute copies of the preliminary official statement and said official statement, as finally executed, to persons who may be interested in the purchase of Bonds and are directed to deliver copies of said official statement to all actual purchasers of Bonds. Distribution heretofore by the Underwriter of the Preliminary Official Statement relating to the Bonds, is hereby approved, confirmed- and ratified. 14. The seal impressed in the margin hereto is hereby adopted as the official seal of the Authority. 15. Bonds in the aggregate principal amount of not to exceed $59. 5 million shall be executed by the facsimile signature of the Chairman of the Authority, the facsimile of the seal of the Authority shall be reproduced thereon and attested by the facsimile signature of the Secretary of the Authority, in the form set forth in and otherwise in accordance with the Indenture. Such Bonds may be delivered in temporary form pursuant to the Indenture, if in the judgment of the Chairman of the Authority delivery in such form is necessary or appropriate until Bonds in definitive form can be prepared, in which case the foregoing signature.s shall be manual and the seal of the Authority shall be impressed on such Bond or Bonds in temporary form. 6 040511-0012-188-4530s 0O0n 16. The Bonds, when so executed, shall be delivered to the Trustee for authentication. The Trustee is hereby requested and directed 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 authenticated, to the Underwriter in accordance with written instructions executed on behalf of the Authority by the Chairman, Vice Chairman or Secretary of the Authority, which instructions said officer is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver to the Trustee. Such instructions shall provide for the delivery of the Bonds to the Underwriter in accordance with the Purchase Contract, upon payment of the purchase price thereof. 17. All actions heretofore taken by the Authority and by the officers and agents of the Authority (including, but not limited to, the Administrator), with respect to the formation of the Authority, the establishment of the Program and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, including but not limited to the selection of the Lending Institutions and the Developers and allocation. thereto of moneys to be made available by the sale of the Bonds for the acquisition of home mortgages ( subject to such changes in such selections and allocations as such officers and agents may deem necessary or advisable prior to issuance and delivery of the Bonds) . The Chairman or other officers of the Authority are hereby authorized, as they see fit, for and in the name and on behalf of the Authority, to obtain bond insurance, insuring the payment of principal and interest on the Bonds, on such terms as such officers may approve. The Chairman or other officers of the Authority are hereby authorized to obtain insurance on the home mortgages as such officers, and on such terms, as such officers see fit, including but not limited to pool insurance and special hazard insurance. The Chairman or other officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents, including but not limited to those described in the Indenture, the Purchase Contract and the other documents approved herein and in Resolution No. 84-1, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this resolution and Resolution No. 84-1 heretofore adopted by the Authority and in order to carry out the Program. 18. The Administrator is hereby authorized to approve on behalf of the Authority the reallocation of any and all moneys under the Origination, .Service and 7 040511-0012-188-4530s 0002 7 Administration Agreement to Lending Institutions and under the Developer Agreement to Developers, in accordance with the provisions of such agreements. 19. This resolution shall take effect immediately upon its adoption. ADOPTED this 24th day of July, 1984, by the following votes: Ayes: Noes: Absent: L Chairman ATTEST: B y: Assistant 4recretary 8 040511-0012-188-4530s 00027P EXHIBIT A Lending Institutions Participating in the • • 1984 Contra Costa Home Mortgage Finance Program Alta Mortgage City Bond & Mortgage First California Mortgage • International Mortgage Investors Mortgage Lindsey and Company Mission Bay Mortgage Statewide Mortgage Wells Fargo Mortgage s.. 3. pQ0?"� t f , .t r t C c c c c c c c c C c C c C C c c c c c c c c c c- c c C c c P Pcc cv , Inc cPPc c c c c CIf, c c P C G C P P J v C •/-,P P P C c P P G C C P J C P C C , P T V d N ^ n C J N cc ,C c J N v, v1 C C a ucc , c P Q C c ^ P ^ J n C C N P— P N P C N �•• ••� ^ ^ .� • �• R 1 1 1 1 1 1 1 1 C 1 c 1 c 1 C 1 'c t C I C I C1 , t7 C C C t7 .P PPC C C v, V1 V1•/' C C P P C C C C C C .n C C. c G C C P c C P P PPG G PPC C C n v C C C C ' C P ,C J K a V, c N cc C c cc L^ P N J P u'•N N ✓� �!' 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O i C ttc -= C S L ' C ej > to Ln v a > •.•� v w C O O d a7 > Oc u ft w M w • z w u bc r c G c to O ' L c v tr. x v 4. a 1` u In u r i c u i . V. c w u v Q r .c c to c of o c v. v. ¢ v. c 'O ar _G C E G C � u u . u Oc fY^ S 2 S I T d W O C •� X x X w w u R al • c u a a w r_. ar a > d u u C L E O I > ^ •— C C C C •— r C c 1 d tr. V. G C C C r u 0' tr R u u ci u 3 W. F 000�� , I ASSISTANT SECRETARY' S CERTIFICATE I , eaa e . ( , s /;o Assistant Secretary of he Contra Costa Home Mortgage.. inance Authority, hereby certify as follows: The foregoing is. a..full., true,.and correct copy of_a resolution duly adopted by 'a vote of a majority of' the ' members of the Governing Board of said Authority, at;,a meeting ° duly, regularly and legally held at the Board of' Superviso.rs' " Chambers, Room 107, 651 .Pine:. Street;, Martinez; California, thereof on July 2L1, /y��, of which meetingz 'ail of said, ' members had due-noti:ce� as, follows,.:.-. _..., Ayes: 1��ree �vhs �o'wers /-��ide,� ScHaa/er Noes: Absent: I have carefully compared the foregoing with;�the_,_ n original minutes of said meeting on .file. ,and of, record in my ` . office, and the foregoing is a full, true and correct"copy 'of ` the original resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect. Dated: Assistant Secretdry of the Contra Costa Home Mortgage Finance Authority [ SEAL] 11 040511-0012-188-4530s 00 �. � T 1 1. CC Home Mortgage. Fin. Auth,. Gov Bd, Res 84-2 2. Feasibility Study apprvd 3. Same as 1 4. Rules & Regulations estbd eligibility criteria 5. Same as 1 6. Purchase,!price/average area for exist residences 7. Same as 1 8 . Findings. re nos of creditworthy persons 9. Same as 1 10. Findings amounts required targeted areas 11. Same as 1 12. Escrow estbd 13. Same as 1 14. Revenue bonds issuance/sale/delivery 15. Same as 1 16. Dean Witter Reynolds purchase contract apprvd 17. Same as -1 18. Verex Assurance mortgage insurer apprvd 19. Same as 1 20. Manufacturers Hanover Trust Co apprvd 21. Same as 1 22. Developer agrmt form apprvd 23. Same as 1 24. Seal of Authority apprvd