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HomeMy WebLinkAboutRESOLUTIONS - 07281987 - 87-463 s COUNTY OF CONTRA COSTA RESOLUTION NO. RESOLUTION OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF COUNTY OF CONTRA COSTA 1987 HOME MORTGAGE REVENUE BONDS, AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE, BOND PURCHASE CONTRACT, ORIGINATION, SERVICE 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, APPROVING THE ISSUANCE OF BONDS 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 counties to incur indebtedness 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 Board of Supervisors (the "Board" ) of the County of Contra Costa (the "County" ) hereby finds and declares that it is necessary, essential and a public purpose for the County to finance home mortgages pursuant to the Act, in order to increase the housing supply in the County for persons and families within the, income limitations established by the. Act; WHEREAS, this Board has, by Ordinance No. 82-5, adopted on January 5, 1982, 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 County, pursuant to the Act, to cooperate in the Program and have agreed or may agree that the County shall exercise powers to finance home mortgages pursuant to the Act with respect to property located in the geographic boundaries of such cities; WHEREAS, this Board has previously approved and the County has previously issued County of Contra Costa 1985 Home Mortgage Revenue Bonds; WHEREAS, this Board has determined that the purposes of the Program will be furthered by the issuance of additional 6035d revenue bonds in connection with the redemption of a portion of the County' s 1965 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 participating 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 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; WHEREAS, the Internal Revenue Code of 1986, as amended, requires that prior to issuance, mortgage revenue bonds be approved by the applicable elected representatives of the governmental unit issuing such bonds, after a public hearing held following reasonable public notice; WHEREAS, there was published, on July 14, 1987, in the Contra Costa Times, a notice that a public hearing . regarding the issuance of bonds by the County and/or by the Contra Costa Home Mortgage Finance Authority (the "Authority" ) would be held by this Board on July 28, 1987; WHEREAS, this Board is the applicable elected representative of the County and an applicable elected representative of the Authority; WHEREAS, this Board has held the public hearing described above; 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 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 Board of Supervisors of the County of Contra Costa, as follows: 1 . The Board does hereby find and declare that the above recitals are true and correct. 2 6035d 2 . Pursuant to the Act and the Indenture (hereinafter defined) , revenue bonds of the County, designated as "County of Contra Costa 1987 Home Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities Program) " in an aggregate principal amount not to exceed $45, 000, 000 (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 County shall be reproduced thereon and attested by the manual or facsimile signature of the County Administrator and Ex-Officio Clerk of this Board, in the forms set forth in or otherwise in accordance with the Indenture (hereinafter defined) . The amounts made available by the issuance of the Bonds shall be used to acquire mortgage-backed securities, backed by pools of home mortgages (the "Home Mortgages" ) and guaranteed by the Government National Mortgage Association ( "GNMA Securities" ) , pursuant to the Program, and for such other purposes as are set forth in the Indenture. 3 . The proposed form of indenture presented to this meeting is hereby approved. The Chair of this Board, the County Administrator, the Director of Community Development, the Chief, Development Finance Programs or the Director of Redevelopment (the "Designated Officers" ) is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver an indenture in substantially said form, "with such additions thereto or changes therein as the officer executing said indenture may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. The Designated Officers of the County are hereby authorized to select a qualified financial institute 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" ) ; provided, however, that the terms of the Bonds shall be such as to result in a rate of interest on the Home Mortgages not to exceed 9. 75% per annum. 4. The proposed form of bond purchase contract, between the County and PaineWebber Incorporated, Miller & Schroeder Financial Inc . , and Pacific Securities, Inc . , as representatives of the several underwriters (the "Underwriters" ) , in substantially the form presented to this meeting, and the sale of the Bonds pursuant thereto, is hereby approved. Any one of the Designated Officers of the County is hereby authorized and directed, for and in the name and on behalf of the County, to accept the offer of the Underwriters to purchase the Bonds contained in said bond purchase contract 3 6035d r (when such offers are made and if such offers are consistent with Section 3 hereof) and to execute and deliver said bond purchase contract in said form, and to approve any additions to or changes 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 9 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 bond purchase contract as so added to or changed. S . The proposed form of origination, servicing and administration agreement presented to this meeting is hereby approved. Any one of the Designated Officers of the County, as issuer of the Bonds and as' Administrator (as defined in said agreement) , is hereby authorized and directed, for and in the name and on behalf of the County, as issuer of the Bonds and as Administrator, to execute and deliver an origination, servicing and administration 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 the officer executing such origination, servicing and administration agreement may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. If, in the opinion of the Designated Officers of the County, it is desirable to enter into origination, servicing and administration 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 GNMA Securities 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 County 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. 6. The proposed form of developer agreement presented to this meeting is hereby approved. Any one of the Designated Officers of the County is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver a developer agreement with the developers identified in Exhibit B hereto, with such additional developers (and omitting such developers) as may be approved by the. Designated Officers as being in furtherance of the interests of the Program, in substantially said form, with 4 6035d 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 GNMA Securities 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 County 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. 7. The proposed form of cooperative agreement between the County and such cities within the County as shall offer to enter into cooperative agreements with the County is hereby approved. The Designated Officers are hereby authorized and directed, for an in the name or on behalf of the County, 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 the Designated 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 County in connection with the Program, including the addition of additional cities as cooperating cities, shall be made in consideration of the developers selected for participation in the Program. 8. The proposed form of official statement relating to the Bonds presented to this meeting is hereby approved. The Chair of this Board and each of the other Designated- Officers are hereby authorized and directed, at the time of the sale of the Bonds, for and in .the name and, on behalf of the County, to execute a final official statement in substantially said forms, with such additions thereto or changes therein as the executing officer may require or approve, such approval to be conclusively evidenced by the execution thereof. The Underwriters are hereby authorized to distribute copies of said official statements, as finally executed, to persons who may be interested in the purchase of the Bonds and are directed to deliver such copies to all actual purchasers of the Bonds. The Underwriters are hereby authorized to distribute the Preliminary Official Statement relating to the Bonds. 9. The Rules and Regulations Establishing Eligibility Criteria for Lenders, in the form submitted to this meeting, are hereby approved and adopted. 5 6035d i 10. 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 Board of Supervisors hereby finds and determines that median household income for the County is currently $45, 500, subject to adjustment from time to time by this Board by resolution or in accordance with said Rules and Regulations referred to in this section 10. Section 5 and Section 6 of the Rules and Regulations Establishing Eligibility Criteria For Mortgagors and Home Mortgages with respect to the County of Contra Costa 1982 Home Mortgage Revenue Bonds are hereby amended to read in full as follows: Section 5. Median Household Income. For purposes of the Program, Median Household Income is the countywide median household income which is currently $45, 500. Section 6. 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. 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 County of Contra Costa Home Mortgage Revenue Bonds, 1983 Issue A are hereby amended to read in full as follows: Section 2 . Eligibility 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 6 6035d u �1 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. Residences subject to Home Improvement Loans do not have to satisfy Average Area Purchase Price requirements. Section 2 (D) , Section 5 and Section 6 of the Rules and Regulations Establishing Eligibility Criteria for Mortgagors and Home Mortgagees with respect to the County of Contra Costa 1985 Home Mortgage Revenue Bonds are hereby amended to read in full as follows: Section 2 . Eligibility 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. 7 6035d Section 5. Median Household Income. For purposes of the Program, Median Household Income is the countywide medium household income which is currently $45, 500. Section 6. 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. 11. 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 of the 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 allocated for households whose income does not exceed 90% of countywide median household income. 12 . The Bonds, when executed by the County pursuant to Section 2 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 County by the Chair of this Board or other Designated Officer, which instructions said officer is hereby authorized and directed, for and in the name and on behalf of the County, 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. 13 . The draft report entitled "Market Feasibility Study, " prepared by Spear Street Advisors, Inc. , is hereby approved and adopted. 14. Caine Gressel Midgley Slater Inc . is hereby designated as financial advisor for the County, Orrick, Herrington & Sutcliffe is hereby designated as bond counsel for the County and Spear Street Advisors, Inc . is hereby ' designated feasibility consultant for the County with respect 8 6035d } to the issuance of the Bonds. The proper officers of the County are hereby authorized for and in the name and on behalf of the County to enter into contracts with said financial advisor, bond counsel and feasibility consultant for such services and on such terms as such officers may deem necessary or advisable. Contracts heretofore entered into with any of such firms are hereby approved, ratified and affirmed. 15 . The Chair or other Designated Officers of the County are hereby authorized to select a Compliance Agent in furtherance of the purposes of the Program. 16. This Board appoints the County to act as Administrator of the Program, and directs the Community Development Department of the County to administer the Program on behalf of the .County pursuant to Section 52020(e) of the California Health and Safety Code. 17 . As the applicable elected representative of the County, this Board hereby approves the issuance of the Bonds. As an applicable elected representative of the Authority, this Board hereby approves the issuance by the Authority of Contra Costa Home Mortgage Finance Authority 1987 Home Mortgage Revenue Senior Bonds and Contra Costa Home Mortgage Finance Authority 1987 Home Mortgage Revenue Subordinate Bonds (the "Authority Bonds" ) , in aggregate principal amount not to exceed $25, 000, 000. The aggregate principal amount of the Bonds and the Authority Bonds shall not exceed $65, 000, 000. 18. The payment by the County of up to $60, 000 for an allocation under the home financing program financed by the Bonds and/or the home financing program financed by Contra Costa Home Mortgage Finance Authority 1987 Home Mortgage Revenue Bonds to provide financing for the purchase of homes that have been the subject of rehabilitation or other existing homes is hereby approved. The appropriate officers of the County are hereby authorized to take such action as is necessary or desirable to obtain such allocation or allocations. 19 . All actions heretofore taken by the officers and agents of the County with respect to the establishment of the Program and the sale and issuance of the Bonds are hereby approved, confirmed and ratified. The Chair of this Board, the County Administrator, the Director of Community Development, the Chief, Development Finance Programs and the Director of Redevelopment are hereby authorized and directed, for and in the name and on behalf of the County, 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 9 6035d F 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 County 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. ADOPTED this 28th day of July., 1987, by the following votes: AYES: Supervisors Powers , Fanden, Schroder, Torlakson, McPeak NOES: None ABSENT: None Chair of the Board of Supervisors ATTEST: Phil Batchelor, County Administrator and ex officio Clerk of the Board of Supervisors By: /9 Depu 10 6035d