HomeMy WebLinkAboutMINUTES - 11102009 - C.62RECOMMENDATION(S):
ADOPT Resolution No. 2009/515 approving the issuance of single family mortgage revenue
bonds in one or more series in an aggregate amount not to exceed $50 million to first time
homebuyer mortgage assistance; and AUTHORIZE submittal of an application to the
California Debt Limit Allocation Committee to obtain the required allocation of private
activity volume cap for the bonds.
FISCAL IMPACT:
No General Fund obligation is involved. In the event bonds are issued, the County is
reimbursed for costs associated with issuance of bonds. The bonds to be issued will be
solely secured by a pledge of revenues (mortgage payments, reserves, etc.) pledged under
the bond documents. No County funds are pledged to secure the bonds.
BACKGROUND:
The Obama Administration recently announced a new federal Housing Initiative designed to
stimulate the economy and stabilize neighborhoods. Under the initiative the Treasury will
be authorized to purchase single family bonds issued by state and local housing finance
authorities
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/10/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Jim Kennedy,
335-7225
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: November 10, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.62
To:Board of Supervisors
From:Catherine Kutsuris, Conservation & Development Director
Date:November 10, 2009
Contra
Costa
County
Subject:Single Family Mortgage Revenue Bond Program -- Inducement Resolution and Section 147(f) Approval
BACKGROUND: (CONT'D)
to provide first time homebuyer mortgage assistance at below market rates. The
recommended actions will permit the County to secure the necessary authority to issue
single family mortgage revenue bonds and to participate in the Temporary New Issue
Bond Program implemented by the federal Housing Finance Initiative.
Eighty percent (80%) of the bonds proposed to be issued would be sold to the Federal
Housing Finance Agency and/or Fannie Mae and Freddie Mac at below-market rates
allowing the County to loan the bond proceeds to eligible households at an affordable
mortgage rate. The remaining allocation of bonds will be sold in the public market. A
minimum of 40% of the loans will be made to households earning up to 80% of the area
median income (approximately $93,856). The remainder of the funds must be used for
first time homebuyers with household incomes not exceeding 120% of area median
income (approximately $140,784). The County’s program increases the supply of
housing available to qualified homebuyers. It will primarily focus on providing assistance
to first time homebuyers purchasing foreclosed homes in order to stabilize the local
housing market. A portion of the funds may also be made available to homebuyers
purchasing new homes from developers with standing inventory.
In order for the County to receive an allocation of private activity bonds from the
California Debt Limit Allocation Committee (CDLAC) an application must be submitted
to CDLAC including evidence of a public hearing and Board of Supervisor approval in
accordance with the requirements of Section 147(f) of the Internal Revenue Code.
Allocations will be made at the CDLAC meeting scheduled to be held on December 16,
2009.
The recommended action is the adoption of a Resolution by the Board of Supervisors, as
the legislative body of the County, approving the issuance of bonds in one or more series
in an amount not to exceed $50 million. The Board’s action acknowledges that a public
hearing has been held by the Deputy Director – Redevelopment as required by Section
147(f) of the Internal Revenue Code. The action also authorizes execution and submittal
of the CDLAC application.
The recommended action of the Board is not the Bond Sale Resolution. Such actions
would come back to the Board after receipt of an allocation from CDLAC for Private
Activity Bond Authority. Expected timing for a Bond Sale Resolution would be in
March, 2010.
ATTACHMENTS
Resolution No. 2009/515