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HomeMy WebLinkAboutMINUTES - 07281987 - T.7 ` F ; 7 CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY RESOLUTION NO. RESOLUTION OF THE CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF CONTRA COSTA HOME MORTGAGE FINANCE AUTHORITY 1987 HOME MORTGAGE REVENUE BONDS, AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE, BOND PURCHASE CONTRACT, ORIGINATION, SERVICING AND ADMINISTRATION AGREEMENT, DEVELOPER AGREEMENT, COOPERATIVE AGREEMENTS AND OFFICIAL STATEMENT, ADOPTING RULES AND REGULATIONS, AMENDING RULES AND REGULATIONS, ESTABLISHING MEDIAN HOUSEHOLD INCOME, APPROVING A FEASIBILITY STUDY AND AUTHORIZING THE EXECUTION AND DELIVERY OF 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 (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 financing home mortgages 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 finance home mortgages pursuant to the Act, in order to increase the housing supply in the County of Contra Costa (the "County" ) and the City of Antioch (the "City" ) for persons and families within the income limitations established by the Act; WHEREAS, this Board has, by Resolution No. 84-1, adopted on June 12, 1984, adopted 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, certain cities within the County have agreed or may agree with the Authority, pursuant to the Act, to cooperate in the Program and have agreed or may agree that the Authority shall exercise powers to finance home mortgages pursuant to the Act with respect to property located in the geographic boundaries of such cities; 6036d WHEREAS, this Board has previously approved and the Authority has previously issued Contra Costa Home Mortgage Finance Authority 1984 Home Mortgage Revenue Bonds; WHEREAS, this Board has determined that the purposes of the Program will be furthered by the issuance of additional revenue bonds in connection .with the redemption or payment at maturity of a portion of the Authority' s 1984 Home Mortgage Revenue Bonds; WHEREAS, qualified lending institutions which transact business in the County have been permitted the opportunity to participate in the Program on an equitable basis with other qualified lending institutions; WHEREAS, this Board hereby finds and determines that the Program complies with the land use element and the housing element required to be included in the general plan of the County and the City by Section 65302 of the California Government Code; WHEREAS, this Board hereby finds and declares that this resolution is being adopted pursuant to the powers granted by the Act; and 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 the implementation of the Program as contemplated by this resolution and the documents referred to herein 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 Board does hereby find and declare that the above recitals are true and correct. 2 . Pursuant to Section 9(f) of the Joint Exercise of Powers Agreement Creating the Contra Costa Home Mortgage Finance Authority, dated as of May 1, 1984, the following persons are hereby appointed officers of the Authority: the Director of Community Development of the County of Contra Costa is hereby appointed Director of-Community Development of the Authority, the Chief, Development Finance Programs of the County of Contra Costa is hereby appointed Chief, Development Finance Programs of the Authority and the Director of 2 6036d Redevelopment of the County of Contra Costa is hereby appointed the Director of Redevelopment of the Authority. 3 . Pursuant to the Act and the Indenture (hereinafter defined) , revenue bonds of the Authority, designated as "Contra Costa Home Mortgage Finance Authority 1987 Home Mortgage. Revenue Senior Bonds" (the "Senior Bonds" ) in an aggregate principal amount not to exceed $23, 750, 000 and "Contra Costa Home Mortgage Finance Authority 1987 Home Mortgage Revenue Subordinate Bonds" (the "Subordinate Bonds" ) in an aggregate amount not to exceed $1, 250, 000 (the Senior Bonds and the Subordinate Bonds together are herein referred to as the "Bonds" ) , are hereby authorized to be issued. The Bonds shall be executed by the manual or facsimile signature of the Chair of this Board and the facsimile of the seal of the Authority shall be reproduced thereon and attested by the manual or facsimile signature of the Secretary of the Authority, in the forms set forth in and otherwise in accordance with the Indenture (hereinafter defined) . The amounts made available by the issuance of the Bonds shall be used to acquire home mortgages, pursuant to the Program, and for such other purposes as are set forth in the Indenture. 4. The proposed form of indenture presented to this meeting is hereby approved. The Chair, the Vice Chairman, the Secretary, the Director of Community Development, the Chief, Development Finance Programs and the Director of Redevelopment of the Authority (the "Designated Officers" ) are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the indenture in substantially said form, with such additions thereto, or changes therein as are approved by the officer executing said indenture (provided that such additions or changes shall not authorize an aggregate principal amount of Bonds in excess of $25, 000, 000 or result in a stated interest rate on the Home Mortgages in excess of 9 . 75% per annum) , the approval of such officer to be evidenced conclusively by the execution and delivery of such indenture. The Designated Officers of the Authority are hereby authorized to select a qualified financial institution to act as trustee under the . indenture (the "Trustee" ) . The trustee, 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 (the ""Indenture" ) . 5 . The proposed form of bond purchase contract between the Authority and PaineWebber Incorporated, Miller & Schroeder Financial, Inc. and Pacific Securities, Inc. , as representatives of the several underwriters (the 3 6036d "Underwriters" ) , presented to this meeting, is hereby approved. Any one of the Designated Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the offer of the Underwriters to purchase the Bonds contained in said bond purchase contract (when such offers are made and if such offers are consistent with Section 4 hereof) and to execute and deliver said bond purchase contract in said form, and to approve any additions to or change in the form of said bond purchase contract (consistent with the final Official Statement approved by the Chair of the Board or other Designated Officer in accordance with section 10 hereof) which such officer may deem necessary or advisable, approval of such additions or changes to be conclusively evidenced by such officer' s execution of said blond purchase contract as so added or changed. 6. The proposed form of origination, servicingand administration agreement presented to this meeting is hereby approved. Any one of the Designated Officers 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, servicing and administration agreement (the "Agreement" ) with the lending institutions identified in Exhibit A hereto, with such additional lending institutions (and omitting such lending institutions) as may be approved by the Designated Officers as being in furtherance of the interests of the Program, in substantially said form, with such additions thereto or changes therein as are approved by the officer executing said origination, servicing and administration agreement, the approval of such officer to be evidenced conclusively by the execution and delivery of the Agreement. If, in the opinion of the Designated Officers of the Authority, it is desirable to enter into Agreements with other qualified lenders, such officers shall enter into Agreements with such other qualified lenders. The final selection of qualified lenders and the final allocation thereto of the moneys to be made available by the sale of the Bonds for the purchase of Home Mortgages shall be made on a fair and equitable basis considering the factors set forth in the Rules and Regulations (hereinafter described) and considering the public purposes of the Program. The proper officers of the Authority are hereby authorized and directed to establish and maintain such account or accounts as may be necessary to hold the commitment fees paid by the lenders. 7. The proposed form of developer agreement presented to this meeting is hereby approved. Any one of the Designated Officers 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 each of -the developers identified in Exhibit B hereto, with such 4 6036d additional developers ( and omitting such developers) as may be approved by the Designated Officers as being in furtherance of the interests of the Program, substantially in said form, with such additions thereto or changes therein as the officer executing such developer agreement may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The final selection of developers and the final allocation thereto of the moneys to be made available by the sale of the Bonds for the purchase of Home Mortgages shall be made on a fair and equitable basis considering the factors set forth in the Rules and Regulations (hereinafter described) and considering the public purposes of the Program. The Designated Officers of the Authority are hereby authorized and directed to establish and maintain such account or accounts as may be necessary to hold the commitment fees paid by the developers. 8. General Electric Mortgage Insurance Company, Mortgage Guaranty Insurance Corporation and United Guaranty Residential Insurance Company of Iowa are approved as providers of Mortgage Guaranty Insurance Policies (as that term is defined in the Agreement) , and the proper officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver such instructions or instruments as may be necessary to obtain such insurance coverage for the appropriate Home Mortgages; provided, however, that if the use of such mortgage insurers does not result in a bond rating satisfactory to said officers of the Authority or said officers of the Authority determine that it would further the purposes of the Program to not use such mortgage insurers or to allow other qualified mortgage insurers to participate in the Program, other qualified mortgage insurers may be designated by said officers of the Authority to provide such insurance. 9 . The proposed form of cooperative agreement between the Authority and such cities within the County as shall offer to enter into cooperative agreements with the Authority is hereby approved. The Designated Officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver cooperative agreements with such cities as such officers determine to be in furtherance of the interests of the Program, in substantially said form, with such additions thereto or changes therein as are approved by such officers, the approval of such officers to be evidenced conclusively by the execution and delivery of such agreements. The final . selection of cities cooperating with the Authority in connection with the Program, including the addition of additional cities as cooperating cities, shall be made in 5 6036d n 1 1 consideration of the developers selected for participation in the Program. 10. The proposed form of official statement relating to the Senior Bonds and the proposed form of offering memorandum relating to the Subordinate Bonds presented to this meeting are hereby approved. The Chair of this Board and each of the other Designated Officers are hereby authorized and directed, for and in the name and on behalf of the Authority, to execute a final official statement and final offering memorandum in substantially said form, with such additions thereto or changes therein as the executing officer may require or approve, such approval to be evidenced conclusively by the execution and delivery of such official statement and offering memorandum. The Underwriters are hereby authorized to distribute copies of said official statement and offering memorandum, as finally executed, to persons who may be interested in the purchase of the Senior Bonds or Subordinate Bonds, as applicable, and are directed to deliver copies of such official statement and offering memorandum to all actual purchasers of the Senior Bonds or Subordinate Bonds, as applicable. The Underwriters are hereby authorized to distribute the Preliminary Official Statement relating to the Senior Bonds and the Preliminary Offering Memorandum related to the Subordinate Bonds. 11 . The Rules and Regulations Establishing Eligibility Criteria for Lenders, in the form submitted to this meeting, are hereby approved and adopted. 12 . The Rules and Regulations Establishing Eligibility Criteria for Mortgagors and Home Mortgages, in the form submitted to this meeting, are hereby approved and adopted. Pursuant. to said Rules and Regulations, this Governing Board hereby finds and determines that median household income for the County is currently $45, 500, subject to adjustment from time to time by this Governing Board in accordance with said Rules and Regulations. Section 2 (D) , Section 6 and Section 7 of the Rules and Regulations Establishing Eligibility Criteria for Mortgagors and Home Mortgages with respect to the Contra Costa Home Mortgage Finance Authority 1984 Home Mortgage Revenue Bonds are hereby amended to read in their entireties as follows: 6 6036d Section 2 Eligibilty Criteria. (D) Intent to Occupy Home. Each Mortgagor shall certify his or her intention to occupy the Home as his or her principal place of residence within sixty days after the closing of the Home Mortgage and thereafter to maintain the Home as his or her principal place of residence for at least two years. Each Home must be occupied as the Mortgagor' s principal place of residence for a period of two years from the date of origination of the Home Mortgage, except as consented to by the Administrator pursuant to Section 52020 of the Act. This owner-occupancy requirement may, however, be waived by the Administrator. The following residences shall not be considered' to be a principal place of residence: a residence more than fifteen percent (15%) of the total area of which is reasonably expected to be used in a trade or business, a residence used as investment property or a recreational home. Section 6. Median Household Income. For purposes of the Program, Median Household Income is the countywide median household income which is currently $45, 500. Section 7. Average Area Purchase Price. For purposes of the Program, the Average Area Purchase Price for residences which have not been previously occupied and for residences which have been previously occupied shall be the amount specified by the United States Department of Treasury as the "safe harbor" for residences which have not been previously occupied and the amount specified by the United States Department of Treasury as the "safe harbor" for residences which have been previously occupied, respectively. 13 . The Board hereby finds and determines that there are insufficient numbers of creditworthy persons whose income does not exceed eighty percent (80%) of countywide median ,household income to allocate no less than fifty percent (50%) of the funds allocated for Home Mortgages from the proceeds of the Bonds where the purchaser will not be the first occupant for households whose income does not exceed eighty percent (80%) of such median household income. This Board therefore determines that no less than fifty percent (SO%) of the funds allocated for such Home Mortgages from the proceeds of the Bonds will be allocated for households whose income does not exceed ninety percent (90%) of countywide median household income. 6036d 14. The Bonds, when executed by the Authority pursuant to Section 3 hereof, 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 Underwriters in accordance with written instructions executed on behalf of the Authority by the Chair of this Board or other Designated Officer, which instructions each of 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 Underwriters in accordance with the bond purchase contract, upon payment of the purchase price thereof. 15. The draft report entitled "Market Feasibility Study, " prepared by Spear Street Advisors, Inc. , is hereby approved and adopted. 16. Caine Gressel Midgley Slater Inc. is hereby designated as financial advisor to the Authority, Orrick, Herrington & Sutcliffe is hereby designated as bond counsel for the Authority and Spear Street Advisors, Inc. is hereby designated feasibility consultant for the Authority with respect to the issuance of the Bonds. The proper officers of the Authority are hereby authorized to enter into contracts for and in the name and on behalf of the Authority with said financial advisor, bond counsel and feasibility consultant for such services and on such terms as such officers may deem necessary or advisable. Such officers may, in place of executing contracts with any firm, accept the assignment of a contract entered into between the County and such firm. 17 . The Chair or other Designated Officers of the Authority are hereby authorized to select one or more Compliance Agents in furtherance of the purposes of the Program. 18. This Board appoints the County of Contra Costa to act as Administrator of the Program, and directs the Community Development Department of the County to administer the Program on behalf of the Authority pursuant to Section 52020(e) of the California Health and Safety Code. 19. All actions heretofore taken by the officers and agents of the Authority with respect to the establishment of the Program and the sale and issuance of the Bonds are hereby approved, confirmed and ratified. The Designated Officers and other officers of the Authority are hereby authorized, for and in the name and on behalf of the 8 6036d Authority, to obtain bond insurance insuring the payment of principal and interest on the Senior Bonds on such terms as such officers may approve. The Designated Officers and other proper 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 bond purchase contract and the other documents herein approved, 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 resolutions heretofore adopted by the Authority and in order to carry out the Program. 20. The Administrator is hereby authorized to approve on behalf of the Authority the reallocation of any and all moneys under the Origination, Service and Administration Agreement to Lenders and under the Development Agreement to Developers, in accordance with the provisions of such agreements. 21. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 28th day of July 1987, by the following vote: AYES: Directors Powers , Fanden, Schroder, Torlakson, Keller, McPeak NOES: None ABSENT: None Chair of the Governing Board ATTEST: J-e-A-f-� Aftistant Secreta4rry 9 6036d Exhibit A Qualified Lenders (P M I Program) Commonwealth Mortgage First California Mortgage IMCO Realty Services International Mortgage Medallion Mortgage Exhibit B Preliminary Developer Allocations (P M I Program) Preliminary Developer Allocation* Developments Barnett Range $ 500,000 Oakley Ranch, Oakley Emerald Homes 1,750,000 Lynbrook, West Pittsburg Rivershore, West Pittsburg Garrow & Cardinale 500,000 Gateway, Oakley Kaufman & Broad 59200,000 California Cove, West Pittsburg California Harvest, Brentwood California Isle, Oakley California Harbor, Oakley McBail Company 750,000 Almondridge III & IV, Antioch Northwood Homes 1,000,000 Northwood Downs, Antioch Shea Homes 2,500,000 Bay Pointe, Hercules Mandalay, Hercules Seeno Construction 29000,000 Mira Vista, Antioch MS 20-84, Antioch Christina Hills, Antioch Brooktree, Oakley First California Mortgage 2,000,000 Existing and Scattered Sites * SUBJECT TO CHANGE