HomeMy WebLinkAboutRESOLUTIONS - 11091982 - 82/1346THE BOARD OF SUPERVISORS OF C 10NTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on November 16, 1982 ·----------, by the following vote:
AYES: Supervisors Po·wers, Fahden., Torlakson, Schroder.
NOES: None.
ABSENT: Supervisor McPeak.
ABSTAIN: None.
RESOLUTION NO. 82/1346
SUBJECT: Authorizing Amendments to Certain Documents Relating to the County of
Contra Costa 1982 Home Mortgage Revenue Bonds, Including the Origination,
Service and Administration Agreement, the Home Mortgage Finance Program
Rules and Regulations Establishing E"ligibility Criteria for Mortgagors
and Home Mortgages, and the Developer Agreements .
WHEREAS, the Boa rd of Supervisors ( the II Boa rd") of the County of Contra
Costa (the "County") did, by Resolution No. 82/531, adopted on May 11, 1982,
as amended by an Order of the Board dated June 8, 1982, authorize the proper
officers of the County to enter into an Origination, Service and Administration
Agreement with lending institutions and a Developer Agreement with developers
(collectively, the "Agreements"), and did adopt certain Home Mortgage Finance
Program Rules and Regulations Estab l ishing Eligibility Criteria for Mortgagors
and Home Mortgages (the "Rules and Regulations"), all with respect to the
issuance on June 15, 1982 of $62,400,000 principal amount of County of Contra
Cos ta 1982 Home Mortgage Revenue Bonds ( the "Bonds 11 ); and
WHEREAS, subsequent to the issuance of the Bonds certain revisions were
made to t he laws and regulations applicable to the Agreements and the Rules and
Regulations; and
WHEREAS, subsequent to the issuance of the Bonds the parties to the
Agreements and the County have determined that it is necessary and desirable
to modify the terms of the Agreements;
NOW, THEREFORE, IT IS BY THE BOARD ORDERED as follows:
1. Amended Rules and Regulations, in the form submitted to this meeting
and attached to this Resolution, are hereby approved and adopted.
2. The Director of Planni ng of the County of Contra Costa is hereby
directed to authorize and execute such amendments to the Agreements as are
necessary and desirable to conform the Agreements to the current provisions of
Section 103A of the Internal Revenue Code of 1954, as amended and regulations
promulgaged thereunder, the provisions of the Health and Safety Code pursuant
to which the Bonds were issued, and the terms of the amended Rules and Regula-
tions, and to make such other changes as are acceptable to the Director of
Planning and permitted under the Program; provided, however, that no amendment
to the Agreements sha 11 be effective wit hout the written consent of PMI Mortgage
Insurance Co. or its designated representative, in addition to such consents as
may be required from the other signatory parties to such agreements .
3. The methodology for allocating the non-first time homebuyer as out-
lined in the Director of Planning 1 s November S, 1982 memorand um to the County
Administrator is accepted.
4. This Board Order shall take effect immediately upon its adoption.
Orig. Dept.: Planning Dept.
cc: County Administrator
I her,eby cel'llfy that this Is a true and correct copy of
an a1ctlon taken and entered on the minutes of the
Board of Supe~=te shown'.
AT~'ESTED: ~ ~~ /?:,) /CJ 8~
J.R. OLSSON, COUNTY CLERK
and ex officio Clerk of the Board
By ·. e ~ , Deputy
RESOLUTION NO. 82/1346
r
COUNTY OF CONTRA COSTA
HOME MORTGAGE FINANCE PROGRAM
RULES AND REGULATIONS
:ESTABLISHING ELIGIBILITY CRITERIA
FOR MORTGAGORS AND HOME MORTGAGES
(Adopted May 11, 1982,
pursuant to Resolution No. 82/531 ,
as amended
pursuant to Board Order of June 8 1982 ,
and as further amended November l:_6, 1982 ,
pursuant to Resolution No. 82/ 13/-1-6.
TAB LE OF CONTENTS
Section
Preface
1
2
3
4
5
6
7
8
9
Definitions
Eligibility Criteria for Mortgagors
Assumption of Horne Mortgages.
Participating Cities .
Median Household Income
Average Area Purchase Price
Program Implementation.
Designation of Targeted Areas
Miscellaneous
Exhibit A -Targeted Areas
REsoLur10N Ne>. r ;i.j 1 3 L/b
DRAFT
11/4/82
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P R E F A C E
These Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages are
made pursuant to Chapters 1-5 of Part 5 of Division 31 of the
Health and Safety Code of the State of California and relate
to the County's home mortgage finance program of acquiring
Home Mortgages, made to qua lified persons and families, from
qualified L~Qding Institutions. In order to be eligible to
become a Mortgagor under this Program, a person or family
must comply with the criteria set forth in these Rules and
Regulations. These Rules ·and Regulations also establish
certain criteria for the origination of Home Mortgages under
the Program. In developing these criteria, the County has
considered, on a countywide basisj factors such as the amount
of personal or family income available for housing needs,
household size , costs and condition of available housing and
eligibility of potential Mortgagors for federal housing
assistance.
Section 1 . Definitions. Unless the context
otherwise requires , the terms defined in this section shall
for all purposes of these Rules and Regulations have the
meanings herein specified, to be equally applicable to both
the singular and plural forms of any of the terms herein
defined .·
Acquisition Cost. The term "Acquisition Cost"
means the cost of acquiring a Home from the seller as a
completed residential unit. The Acquisition Cost shall be
determined as set forth in the Agreements.
Act. The term "Act" means Chapters 1-5 of Part 5
of Division 31 of the Health and Safety Code of the State of
California, as now in effect or as it may from time to time
hereafter be amended or supplemented.
Administrator. The term "Administrator" means the
administrator under the Program. and the Agreements.
Agreement. The term "Agreement" means an
Origination, Servicing and Administration Agreement , dated as
of May 1, 1982, by and a mong the County, the Trustee, the
Administrator and one or more Lending Institutions, as
originally executed or as it may from time to time be amended
in accordance with its terms, together with any subsequent
agreement, contract or binding commitment entered into by the
County with one or more qualified Lending Institutions for
RESO f-UTION NO. f J-/f ,il/£
the acquisition of Home Mortgages through and the servicing
of Home Mortgages by such qualified Lending Institution.
Average Area Purchase Price. The term "Average
Area Purchase Price" means the average purchase price of all
single-family (one-unit) residences, determined separately
with respect to residences which have not been previously
occupied and residences which have been previously occupied,
in the area in which the County is located for the most
recent twelv·e,-month period for which statistical information
is available, as such respective prices are specified in
Section 6 as such Section may be amended from time to time.
Bonds. The term "Bonds" means the County of Contra
Costa 1982 Home Mortgage Revenue Bonds, authorized by , and at
any time outstanding pursuant to, the Indenture.
County. The term "County" means the County of
Contra Costa, a county and subdivision of the State of
California.
Home . The term "Horne" means the property being
acquired by a Mortgagor through the borrowing of money
pursuant to a Home Mortgage.
Horne Mortga~. The term "Horne Mortgage" means a
loan purchased by the County from · or acquired by the County
through a Lending Institution with respect to a Home pursuant
to and in accordance with the Act and the Program.
Household Income. The term "Household Income"
means the current adjusted gross income as calculated for
federal income tax purposes of a Mortgagor together with the
aggregate adjusted gross income similarly calculated of all
other adult persons who intend to reside permanently with t h e
Mortgagor in the Horne.
Indenture. The term "Indenture" means the
indenture ~ dated as of June 1, 1982, between the County and
the Trustee, providing for the issuance of the Bonds, as
originally executed or as it may from time to time be amended
in accordance with its terms.
L ending In s titut i on. The term "Le nding
Institution" means any or all, as the case may be, of the
qualified mortgage lenders who execute an Agreement, or their
successors duly qualified under an Agreement.
Median Household Income. The term "Median
Household Income" me a ns the highest of (i) s tatewide median
hou sehold income , (ii ) countywide me d ian hou sehold income as
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determined from time to time by the County, or (iii) median
family income for the standard metropolitan statistical area
in which the County is located as determined by the United
States Department of Housing and Urban Development, as such
amount is specified in Section 5 as such Section may be
amended from time to time.
Mortgagor. The term "Mortgagor" means the mak.er of
a Note in connection with the acquisition of a Ho me through
the bo r rowin~ of money pursuant to a Home Mortgage and shall
also include any other individual with an ownership interest
in such Home and, where appropriate, a subsequent owner of a
Home who, in connection with the purchase of such Home,
assumed such Note or purchased such Home subject to such Home
Mortgaqe. The term "Mortgagor" shall not include a person
who is liable under a Note secured by a Home Mortgage but who
does not have a present ownership interest in the Home
subject to such Home Mortgage.
Note. The term "Note" means the promissory note or
other document or documents evidencing the obligation to
repay a Home Mortgage.
Participating Cities. The term "Participating
Ci ties 1' means those cities within the County entering into
cooperative agreements with the County pursuant to the Act,
authorizing the County to carry out the Program within the ·
boundaries of such cities, as such cities are specified in
Section 4.
Program. The term "Program" means the County's
program of acquiring Home Mortgages pursuant to the
Indenture, the ordinance of the County establishing the
Program, the Act, the Agreements , these Rules and
Regulations, and all other rules and regulations adopted
pursuant to the Act, as such docume~ts may from time to time
be amended in accordance with their terms.
Rules and Regulations. The term "Rules and
Regulations" means these Rules and Regulations Establishing
Eligibility Criteria for Mortga:gors and Home Mortgages , as
the y may be supplemented or amended from time to time.
Substantial Rehabilit a ti o n. "Sub s tantial
Rehabilitation" means rehabilitation in which the costs of
rehabilitation equal or exceed 20 percent of the value of the
structure. after rehabilitation.
Trust e e. The term "Trustee" means the tru s tee
under the Indenture .
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RESO~UTION NO. J J-/13 i../ {,
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Section 2. Eligibility Criteria for Mortgagors.
An individual shall not be eligible to become a Mortgagor
under the Program unless all of the following requirements
are met. An individual or individuals who comply with the
following criteria are deemed by the County to be a person or
family of low or moderate income and unable to pay the
amounts at which unassisted private enterprise is providing
suitable, decent , safe and sanitary housing.
(A) Maximum Household Income. The aggregate
Household Income of all adult persons who intend to reside
permanently in the Home, calculated as set forth in the
definition of Household Income in Section 1 hereof, shall not
exceed
(1) with respect to Home Mortgages originated
in an aggregate amount not to exceed the amount of Home
Mortgages funded by the proceeds of Bonds in the
principal amount of $22.4 million (after a pro rata
allocation of commitment fees, costs of issuance,
underwriter's discount and payment to the Capital
Reserve Fund, as such fund is defined in the Indenture ),
(a) 150% of Median Household Income with
respect to Home Mortgages for Homes where the
Mortgagor will be the first occupant, for Homes
which will undergo Substantial Rehabilitation, or
for Homes which are resold if financing was
originally provided pursuant to this
Secti~n 2(A)(l)(a) or
(b ) 120% of Median Household Income with
respect to Home Mortgages where the Mortgagor will
not be the first occupant, provided that no less
than 20% of the aggregate amount of Home Mortgages
made pursuant to this Section 2(A)(l)(b) shall be
for households whose Hous~hold Income does not
exceed Median Hou s ehold Income;
provided that $11.2 million (less the pro rata
allocation described abov&) of such $22.4 million shall
be used only with respect to Home Mortgages on Homes
within the City of Martinez (e xcept that the $11.2
million may be used anywhere in the County if and to the
extent that, after issuance of the Bonds and for r e asons
beyond the control of the County, the County is unable
to use any portion of the proceed s of the Bonds to
_provide financing for Homes located within the City of
Martinez) and the remaining portion of the $22.4 mill i on
shall be allocated in the sole discretion of the County;
and
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RESOLUTION NO. 8 J-/;3 (/b
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{2) With respect to the remainder of the Horne
Mortgages originated,
(a) 120% of Median Household Income with
respect to Horne Mortgages for Hornes where the
Mortgagor will be the first occupant, for Hornes
which will undergo Substantial Rehabilitation, or
for Homes which are resold if financing was
originally provided pursuant to this
Section 2(A)(2)(a) or
(b) Median Household Income with respect to
Home Mortgages where the Mortgagor will not be the
first occupant, provided that at least half of the
aggregate amount of proceeds of the Home Mortgages
made pursuant to this Section 2(A){2)(b) shall be
for households whose Household Income does not
exceed 80% of Median Household Income.
If a Home is resold and the related Home Mortgage
is assumed, the limitation on maximum Household Income shall
be the same as that limitation which applied at the time
financ i ng was provided pursuant to the Program to the initial
Mortgaqor.
(B ) Prior Ownership Interest in a Principal
Residence.
(1) Horne Mortgages originated prior to
September 3, 1982,
(2) Home Mortgages originated on or after
September 3, 1982 in an aggregate principal amount equal
to the principal amount of Horne Mortgages for which
Commitment Letters had been issued, but which had not
been originated, as of September 3, 1982, and
(3) at least 90% of the principal amount of the
Horne Mortgages originated on or after September 3, 1982
after excluding an amount equal to the principal amount
of Horne Mortgages for which Commitment Letters had been
issued, but which had not been originated, as of
September 3, 1982 and after excluding the principal
amount of Home Mortgages for Homes located in Targeted
Areas
shall have been or shall be , as of any date, for Hornes of
Mortgagors who had not had a present ownership interest in a
principal residence (examples of which are set forth in the
Agreements) at any time during the three-year period prior to
the date on which the Horne Mortgage is executed. This
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requirement sha l l not apply to a Mortgagor acquiring a Home
in a Targeted Area.
If a Home is resold, each Mortgagor who assumes the
related Home Mortgage must not have had a present ownership
interest in a principal residence at any time during the
three-year period prior to the date on which the Home
MortgacJe is assumed if the first-time homeowner requirement
applied as ~foresaid to the original Mortgagor of such Home.
(C) 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. This owner-occupancy requirement may,
however, be waived with the written consent of the County,
provided that the opinion of counsel referred to in
Section 9(A) of these rules and regulations has been received
by the County and remains effective. The following
residences shall not be considered to be a principal place of
residence: a residence more than 15% of the total area of
which is reasonably expected to be used in a trade or
business (i.e., qualifying for a deduction for expenses for
business use of home under Section 280A of the Internal
Revenue Code of 1954, as amended), a residence used as
investment property or a recreational home.
(D) Acquisition Cost . The Acquisition Cost
of a Home shall not exceed 90% of the Average Area Purchase
Price. In each case, the Average Area Purchase Price shall
be determined as of the date of mortgage commitment or the
date of purchase of the Home , whichever is earlier.
(E) Mortgagor Affidavit. Each Mortgagor
shall make the representations and warranties contained in
the Mortgagor Affidavit (or Assumer 'Affidavit in the case of
a Mortgagor who assumes a Home Mortgage upon the resale of a
Home) as provided in the Agreements.
(F) Credit Qualifications. Each Mortgagor
shall meet Program requirements established by the County,
and credit standards established by the Lending Institution~
and any private mortga g e guaranty ins urer participating in
the Progra m.
(G) Purchase of Bonds. Each Mortgagor shall
certify his or her agreement not to purchase or own a ny
Bond~. Such certification shall be made as set forth in the
Agreements.
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(H) Martinez Funds. Home Mortgages funded by
the proceeds of Bonds in the principal amount of $11.2
million shall be originated within the geographical
boundaries of the City·of Martinez unless, after issuance of
the Bonds and for reasons beyond the control of the County,
the County is unable to use any portion of the proceeds of
the Bonds to provide financing for Homes located within the
City of Martinez.
(I) Additional Requirements. Each Mortgagor
shall comply with any and all additional requirements
established by the Agreements. ·
Section 3. Assumption of Home Mortgages. Home
Mortgaqes may be assumed upon the Mortgagor's sale, transfer
or other disposition of the Home, provided that:
(1) the County or its agent approves in writing
such sale, transfer or other disposition;
(2) the transferee agrees that he or she will not
purchase or own any Bonds;
(3) the transferee meets applicable credit
standards to assume the Home Mortgage; and
(4) the transferee meets the eligibility
requirements se.t forth in Section 2 hereof and such
assumption otherwise complie:3 with the requirements of the
Program.
Section 4. Participating Cities. The following
cities are Participating Cities:
Antioch, Brentw~od, Clayton , El Cerrito,
Hercules, Martinez, Pinole, Pittsburg,
Pleasant Hill and Richmond.
Section 5. Median Household Income. For purposes
of the Program, Median Household Income is the countywide
median household income which is $36,930.
Section 6. Average Area Purchas e Price. For
purposes of the Program, the Average Area Purchase Price is
$126,900 for residences which have not been previously
occupied and $107,400 for residences which have been
previously o6cupied.
Section 7. Program Implementation. In
implementing the Program, the County will act wi th due regard
f or the securi ty of the Bonds is s u ed in connecti on with the
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040511-0001-114-2050b ll/04/82 A
g,~/,.J s'"
.
Program, the County's goals for the Program and the terms and
conditions of the Indenture, the Agreement, these Rules and
Regulations and all other rules and regulations pertaining to
the Program.
Section 8. Designation of Targeted Areas.
For purposes of the Program, the Targeted Areas
shall be those areas of chronic economic distress as approved
by the Secret?ry of Housing and Urban Development and the
Secretary of the Treasury as set forth in Exhibit A.
Section 9. Miscellaneous.
(A) Waiver. To the extent permitted by the Act,
subject to the written opinion of nationally recognized bond
counsel that the exemption from federal income tax of
interest on the Bonds will not be adversely affected, the
County shall have the right to waive any rule or regulation
herein contained, and any failure on the part of the County
to enforce any rule or regulation herein shall not affect the
validity of any Agreement or Home Mortgage entered into
pursuant to the Program.
(B) Governing Law. All state law questions with
respect to the construction of these Rules and Regulations
shall be governed by the laws of the State of California.
(C) Section Headings. The headings of the several
sections of these Rules and Regulations and the table of
contents appended hereto shall be solely for convenience of
reference and shall not affect the meaning, construction or
effect hereof.
(D) Severability. If any one or more of the
provisions contained in these Rules and Regulations shall £or
any reason be held to be invalid, illegal or unenforceable in
any respect, then such provision or provisions shall be
deemed severable from the remaining provisions hereof, and
such invalidity, illegality or unenforceability shall not
affect any other provision hereof, and these Rules and
Regulations shall be construed as if such invalid, illegal or ·
unenforceable provision had never been contained herein.
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CLERK'S CERTIFICATE
I , J. R. Olsson , Clerk of the Board of
Supervisors of the County of Contra Costa , hereby certify as
follows:
The copy of the Rules and Regulations Establishing
Eligibility Criteria for Mortgagors and Home Mortgages (the
"Rules and Regulations") attached hereto is a full, true and
correct copy of the Rules and Regulations adopted by the
Board of Supervisors of the County of Contra Costa on
November 16, 1982 pursuant to Resolution No. 82/ 134~) ·
Said Rules and Regulations have not been further
amended, modified or rescinded since the date of their
adoption and the same are now in full force and effect.
Dated: November 16, 1982
[Seal ]
040511 -0001-114-2050b
9
J. R. Olsson
Clerk, Board of Supervisors,
County of Contra Costa
By : (j_ flrr.ut£RL4?
Deputy Clerk
l l/04/82A
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, u.s.1 >ARTMENT OF HOUSING AND URBAN DEVE 'MENT
WASHINGTON, O.C. 20410
OFFICE OF THI: ASSISTANT SECRETARY FOR
. HOUSING-FEOF.F.AL J,()USING COMMISSIONER
,,u.rn;A ~csr,. our..T,
PL~/;~l l '-iC ,·f U 1 "1£'lT
AuG . ~ to Jo aM '82
--
JUL 21 \98?.
Mr. Michael Gagan
Chief Deputy Treasurer
Office of the 'lreasury
P.O. Box 1919
Sacramento, California 95809
Dear Mr. Gagan:
We are pleased to infonn you that your prcposal of June 4, 1982 to
designate Areas of Chronic Econanic Distress in the State of california
has been apprOV'ed am conrurre::J in by the Secretary of the 'Ireasury pursuant
·to 26 CFR 6a.103A-2, the 'Iemporary Incane Ta.x Regulation implementing the
requirenents of the Mortgage Subsidy Born Tax Act of 1980.
'lbrough this designation, the State of california will be able to
offer h:>meawnership am prq:>erty rehabilitation loans tmder the special
corrlitions permitted by the 1980 Tax Act to lower income citizens in the
cities of San Francisco, Martinez arrl Pittsburgh.
We appreciate the opportunity to assist with your efforts to provide
lower cost h:>meowne1(Ship financing to the citizens of the State of California.
** EXHIBIT A*~"
.,,,
f;J//..31/lo
3
PASI
4
------lt/0/fTHERN
A.1.H .,. It.A .
1982
CONTRA COSTA Ca.INTI
HOUSING REVENUE BOND PROGRAM
PITTSBURG
Area of Chronic
Economic Distress
(Target ,Area)
5 6
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