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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 DOCSSF1:206801.1 4fkh01!.doe 40511-80-SAS-12/4/97 3:30 PM 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 DOCSSP 1:206801.1 4fkh011.doc 40511-80-SAS-12/4/97 3:30 PM 2 . 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 DOCSSF1:206801.1 4fkh01!.doc 40511-80-SAS-12/4/97 3:30 PM 3 -^ 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.