HomeMy WebLinkAboutRESOLUTIONS - 12091997 - 97-664 COUNTY OF CONTRA COSTA
RESOLUTION NO. 97/664
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF
CONTRA COSTA APPOINTING TWO MEMBERS OF THE GOVERNING
BOARD OF THE DELTA COUNTIES HOME MORTGAGE FINANCE
AUTHORITY, APPROVING AND AUTHORIZING THE SALE OF
MORTGAGE-BACKED SECURITIES AND THE REDEMPTION AND
ISSUANCE OF REVENUE BONDS BY SUCH AUTHORITY, APPROVING
THE COUNTY ACTING AS ADMINISTRATOR FOR SUCH AUTHORITY'S
PROGRAM AND APPROVING CERTAIN OTHER MATTERS IN
CONNECTION THEREWITH
WHEREAS, pursuant to the provisions of Article 1 of Chapter 5 of Division 7 of
Title 1 of the Government Code of the State of California(commencing with Section 6500
thereof), two or more public entities may enter into a joint exercise of powers agreement to carry
out the powers common to each entity; and
WHEREAS, the County of Contra Costa(the"County"), the County of
Sacramento ("Sacramento") and the City of Vallejo ("Vallejo") are each empowered by Chapters
1 through 5 of Part 5 of Division 31 of the Health and Safety Code of the State of California(the
"Act") to incur indebtedness for the purpose of financing the construction, acquisition,
improvement and rehabilitation of homes for the benefit of the residents thereof, and
WHEREAS,the County, Sacramento and Vallejo have each adopted an ordinance
establishing a home mortgage finance program pursuant to the Act; and
WHEREAS, the County, Sacramento and Vallejo have entered into that certain
Joint Exercise of Powers Agreement Creating the Delta Counties Home Mortgage Finance
Authority(the "Agreement") creating the Delta Counties Home Mortgage Finance Authority(the
"Authority") and authorizing the Authority to exercise certain powers pursuant to the Act to
proceed pursuant to the Act for the purpose of financing home mortgages with respect to
property within the boundaries of the Authority; and
WHEREAS, pursuant to the Agreement,the County is authorized to appoint two
members to the governing board of the Authority; and
WHEREAS, the Authority has heretofore issued its "Delta Counties Home
Mortgage Finance Authority Single Family Mortgage Revenue Bonds (Fannie Mae and Ginnie
Mae Mortgage-Backed Securities Program), 1992 Series A"(the "1992 Bonds") and has applied
the proceeds of the 1992 Bonds to purchase mortgage-backed securities guaranteed by the
Federal National Mortgage Association and the Government National Mortgage Association(the
"Certificates"); and
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WHEREAS,market conditions may allow for the sale of the Certificates and the
redemption in whole of the 1992 Bonds; and
WHEREAS, in connection with such redemption,the Authority may issue
additional single family mortgage revenue bonds (the "Bonds")to purchase additional mortgage-
backed securities in order to finance additional home mortgages with respect to property within
the boundaries of the Authority(the "Program"); and
WHEREAS, in order to achieve such public purpose, the County desires to
approve the sale of the Certificates, the redemption of the 1992 Bonds and the issuance of the
Bonds by the Authority; and
WHEREAS, the Authority may request the County to serve as an administrator
for the Program and the County is willing to serve as an administrator for the Program;
NOW, THEREFORE,BE IT RESOLVED by the Board of Supervisors of the
County of Contra Costa, as follows:
1. The above recitals,and each of them, are true and correct.
2. Pursuant to Section 7 of the Agreement, the Board of Supervisors hereby
appoints the Supervisor, District 4 and the Supervisor, District 5, each to serve a three-year term,
as a member of the governing board of the Authority. It is hereby recognized by this Board of
Supervisors that Government Code Section 7 authorizes a member of this Board of Supervisors
to delegate to another person the power and duty to act for such member in the capacity of
member of the governing board of the Authority; and it is hereby declared to be the policy of this
Board of Supervisors that such delegation is appropriate and encouraged in this case and that
such delegation be to persons associated with the housing activities of the County.
3. The County hereby approves the sale of the Certificates, the redemption of the
1992 Bonds and the issuance of the Bonds.
4. Pursuant to Section 13 of the Agreement, the County hereby consents to the
use of the proceeds of the Bonds by the Authority (and other moneys related thereto) to make or
purchase home mortgages secured by homes within the jurisdiction of the County,without
limitation as to type of home mortgage other than as required by the indenture pursuant to which
Bonds are issued.
5. The County is hereby authorized to act as an administrator for the Program.
The Director of Community Development and/or the Deputy Director Redevelopment are hereby
authorized and directed to execute and deliver such agreements as shall be necessary in
connection therewith.
6. The officers of the County are hereby authorized and directed,jointly and
severally, to do any and all things to execute and deliver any and all documents which they may
deem necessary or advisable in order to consummate the sale of the Certificates, the redemption
of the 1992 Bonds,the issuance, sale and delivery of the Bonds, and otherwise to effectuate the
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. purpose of this Resolution; and such actions previously taken by such officers are hereby ratified
and confirmed.
7. This Resolution shall take effect immediately upon its adoption.
ADOPTED this 9th day of December, 1997,by the following votes:
AYES: Supervisors Rogers, Uilkema, Gerber, DeSaulnier
NOES: None
ABSENT: Supervisor Canciamilla
Chair of the Board of Supervisors
ATTEST: December 9, 1997
Phil Batchelor, County Administrator
and Clerk of the Board of Supervisors
By:
Deputy
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-^ Contra
Costa
TO: BOARD OF SUPERVISORS ' County
r cuh J
FROM: Dennis M. Barry, AICP
Community Development Director
DATE: December 9, 1997
SUBJECT: Issuance of Single Family Mortgage Revenue Bonds
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ADOPT Resolution (1)APPROVING and AUTHORIZING the sale of Single Family Mortgage
Revenue Bonds by the Delta Counties Home Mortgage Finance Authority; (2) APPOINTING
two members to the Delta Counties Home Mortgage Finance Governing Board; and (3)
APPROVING the County to act as Administrator for said Authority's mortgage program.
FISCAL IMPACT
No General Funds are involved. The County would be compensated for its role as
Administrator. The bonds to be issued would be entirely secured by a pledge of mortgage
backed securities guaranteed by the Federal National Mortgage Association (FNMA) or the
Government National Mortgage Association (GNMA). No legal or moral obligation of County
funds are used to secure the bonds. The bonds to be issued would be AAA rated.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1992 the County entered into a Joint Powers Authority with Sacramento County and the City
of Vallejo to undertake the issuance of single family mortgage re enue bonds fo first time
CONTINUED ON ATTACHMENT: XX YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR AR ECOMME pTION OF 7D
COMMITTEE APPROVE OTHER /
J
SIGNATURE(S):
ACTION OF, BOARD ON I� -0 9 - 19 9 e7 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
f UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Source: Jim Kennedy
335-1255
orig: Community Development ATTESTED .,. ., ct
cc: County Administrator PHIL BATCHELOR, CLERK OFe
County Counsel THE BOARD OF SUPERVISORS
Auditor-Controller AND COUNTY ADMINISTRATOR
via CDD
Orrick Herrington & Sutcliffe
George K. Baum & Associates BYLU A.4,), DEPUTY
Litten Financial Consulting
JKAh
sra27/sfmrb.bos
homebuyers. The JPA - the Delta Counties Home Mortgage Finance Authority - issued
its 1992 bonds in the amount of $47.7 million. Approximately $41 million in mortgages
were made, of which $15 million were in Contra Costa County. The origination period for
the 1992 loans has terminated.
An opportunity exists to refund the 1992 Delta Counties Bonds and, in so doing, create the
capacity to make additional single family mortgages. Approximately $37 million of first time
homebuyer assistance is achievable, of which about $13 million (35%) would be available
in Contra Costa County. It is expected that much of this mortgage assistance would be
directed to new home developments that are providing homeownership opportunities for
lower income households, e.g., Parkway Estates in North Richmond. The program would
include an element of downpayment assistance for approximately 50% of the mortgages.
This is accomplished through the sale of premium bonds that generate funds internal to
the program. Loans with downpayment assistance would have a slightly higher interest
rate than those without. Loan rates would be below the prevailing market mortgage rates
at the time of issuance.
It was contemplated that the 1992 bonds were subject to redemption upon the sale of the
underlying mortgage backed securities. This fact was disclosed when the 1992 bonds
were sold.
The Delta Counties.Home Mortgage Finance Authority is governed by a five member board
- two from Sacramento County, two from Contra Costa County, and one from the City of
Vallejo. The Governing Board members are from the respective legislative bodies, with
provision made for the appointment of alternates. The Contra Costa County Alternates,
who have been the Deputy Director- Redevelopment and the Principal Planner - Housing
(Jim Kennedy and Kathleen Hamm, respectively), have attended all the Board meetings.
No additional time commitment of members of the Board of Supervisors is expected.
The issuance of new bonds, 'and the refunding of the existing bonds, is sensitive to
prevailing rates in the secondary market for mortgage backed securities, Treasuries,
investment rates, and the rate on tax exempt bonds. Currently, the schedule would
contemplate a January issuance of bonds, subject to the interest rates cooperating.