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HomeMy WebLinkAboutMINUTES - 05191992 - 1.52 Contra TO: BOARD OF SUPERVISORS Costa � ; � FROM: Harvey E. Bragdon �'�� _..,;�� County Director of Community Development DATE: May 19, 1992 SUBJECT: 1992 Single-Family Mortgage Revenue Bonds SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Adopt resolution approving and authorizing the execution of a Joint Exercise of Powers Agreement to create the Delta Counties Home Mortgage Finance Authority and actions related thereto. FISCAL IMPACT None. The County will receive compensation for administrative services provided to the Home Mortgage Finance Authority. BACKGROUND/REASONS FOR RECOMMENDATIONS On March 10, 1992 the Board of Supervisors authorized the submittal of an application to 'the California Debt Limit Allocation Committee for Authority to issue Single-Family Mortgage Revenue Bonds. The County submitted its application for $13 .7 million in Authority on April 24, 1992 . The amount requested, which reflected developer demand, is insufficient to proceed with an issuance of bonds alone. Sacramento County and the City of Vallejo were in similar circum- stances; therefore, the creation of a Joint. Powers Authority amongst the three entities provides benefits to each. Together the three entities have approximately $40 million in allocation requ t. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECO DATION ^71 BOARD CO ITTEE APPROVE OTHER / SIGNATURE(S) ACTION OF BOARD ON o'� 9 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X 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. cc: Community Development CAO ATTESTED County Counsel PHIL BATCHELOR, CLERK OF via Community Development THE BOARD OF SUPERVISORS Orrick, Herrington & Sutcliffe AND COUNTY ADMINISTRATOR Paine Webber CGMS BY , DEPUTY Sacramento County City of Vallejo SRA25/92sfmrb.bos The Delta Counties Home Mortgage Finance Authority would be empowered to issue the Home Mortgage Revenue Bonds. The County of Contra Costa and Sacramento County would share administrative :responsibilities. The governing board of the Authority will consist of five members - -two from Contra Costa County, two from Sacramento County and one from the City of Vallejo. The Chair of the Board of Supervisors and the Supervisor District V are the designated representatives to the Authority. The resolution provides for the delegation of Authority to the Deputy Director - Redevelopment and the Senior Housing Planner., Therefore, attendance at the Authority meetings will not be required by Board members, unless desired. The schedule contemplates that Allocation Authority would be :received on May 21, 1992. The Authority would proceed to price :bonds and potentially sell bonds during the week of June 1, 1992. The. bond issue would close on June 25, 1992 . This schedule is :required due to the impending expiration of the Authority to issue Single-Family Mortgage Revenue Bonds. The Federal Authority expires on June 30, 1992 . is, COUNTY OF CONTRA COSTA RESOLUTION NO. 92/332 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA APPROVING AND AUTHORIZING THE EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT TO CREATE THE DELTA COUNTIES HOME MORTGAGE FINANCE AUTHORITY, APPOINTING TWO MEMBERS OF THE GOVERNING BOARD OF SUCH AUTHORITY, AND MAKING CERTAIN DETERMINATIONS WITH RESPECT TO BONDS TO BE ISSUED BY SUCH AUTHORITY 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" ) and the other proposed parties to the joint exercise of powers agreement described below 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, each such proposed party has adopted or will adopt an ordinance establishing a home mortgage finance program pursuant to the Act; and WHEREAS, this Board of Supervisors has found and determined, and hereby finds and determines, that it is in the best interests .of the County of Contra Costa that the County enter into a joint exercise of powers agreement creating the Delta Counties Home Mortgage Finance Authority (the "Authority" ) to exercise certain powers pursuant to the Act and for the Authority to proceed pursuant to the Act for the purpose of financing home mortgages with respect to property within the boundaries of the County; and WHEREAS, in order to achieve such public purpose, the County desires to approve the Authority' s issuance of Single Family Mortgage Revenue Bonds (Fannie Mae and Ginnie Mae Mortgage-Backed Securities Program) , 1992 Series A (the "Bonds" ) in an aggregate principal amount not to exceed $50, 000 , 000; and RESOLUTION N0. 92/332 2981Z WHEREAS, the County has applied to the State of California Debt Limit Allocation Committee ( "CDLAC" ) for allocation to issue qualified mortgage bonds in accordance with the Internal Revenue Code of 1986, as amended (the "Code" ) and Chapter 11 . 8 of Division 1 of Title 2 of the Government Code of the State of California in an amount equal to $13 , 700, 000; and WHEREAS, this Board of Supervisors has determined that it is in the best interest of the County for the County to assign to the Authority pursuant to Section 8869 . 85(d) of the Government Code any portion of the State ceiling for private activity bonds allocated to the County by CDLAC for the Bonds; and WHEREAS, the County has advised CDLAC of its intention to transfer its allocation to the Authority; and WHEREAS, the Internal Revenue Code of 1986, as amended, requires that prior to issuance, qualified mortgage bonds be approved by the applicable elected representative of the governmental unit issuing such bonds after a public hearing is held following reasonable public notice; and WHEREAS, the County caused a notice that a public hearing regarding the issuance of the Bonds would be held by the Deputy Director-Redevelopment. on May 14 , 1992 , to appear in the Contra Costa Times, the West County Times and the Antioch Ledger, which are newspapers of general circulation in the County, not less than fourteen days prior to the date of such hearing; and WHEREAS, the Deputy Director-Redevelopment has held the public hearing described above, and an opportunity was provided for interested parties to present arguments for and against the issuance of the Bonds and the nature and location of the program to be financed by the issuance of the Bonds; and WHEREAS, this Board of Supervisors is the applicable elected representative of the County; 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 . The proposed form of agreement, dated for convenience as of May 1, 1992 , entitled "Joint Exercise of Powers Agreement Creating the Delta Counties Home Mortgage Finance Authority, " in substantially the form presented to . 2 29812 this meeting, is hereby approved. The Chair, the County Administrator and the Clerk of this Board of Supervisors are hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver said agreement in substantially said form, with such additions thereto or changes therein as said officers may approve or recommend upon consultation with County Counsel, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of such agreement . 3 . Pursuant to Section 7 of said , agreement, the Board of Supervisors hereby appoints the Chair of the Board of Supervisors 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, such as the Director of Community Development, the Deputy Director-Redevelopment and the Senior Housing Planner . 4 . The proposed form of agreement, dated for convenience as of May 1, 1992 , entitled "Origination, Servicing and Administration Agreement, " is substantially the form presented to this meeting, is hereby approved. The Director of Community Development and/or the Deputy Director-Redevelopment are hereby authorized and directed to act as an Administrator under said agreement and to execute and deliver said agreement in substantially said form, with such additions thereto or changes therein as said officer may approve or recommend upon consultation with County Counsel, the approval of such additions or changes to be evidenced conclusively by the execution and delivery of such agreement . 5 . Pursuant to Section 13 of said agreement, this Board of Supervisors 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. 6 . As the applicable elected representative of the County, this Board, for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, hereby approves the issuance of the Bonds in an aggregate amount not to exceed $50, 000, 000 . . 3 2981Z 7 . 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 issuance, sale and delivery of the Bonds, and otherwise to effectuate the purpose of this Resolution; and such actions previously taken by such officers are hereby ratified and confirmed. 8 . This Resolution shall take effect immediately upon its adoption. ADOPTED this 19th day of May , 1992 by the following votes : AYES: SUPERVISORS Powers , Fanden, Schroder, Torlakson, McPeak, NOES: SUPERVISORS None ABSENT: SUPERVISORS None Chair of the Boar,d., bfSi4pervisors ATTEST: r Phil Batchelor, County Administrator ' and Clerk of the Board of Supervisors Irer' By: Deputy 4 2981Z