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HomeMy WebLinkAboutMINUTES - 03211995 - 1.52 Contra r Costa TO: BOARD OF SUPERVISORS County FROM: Harvey E. Bragdon Director of Community Development DATE: March 21, 1995 SUBJECT: Single Family Mortgage Revenue Bonds SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT RESOLUTION authorizing the Director of Community Development and the Deputy Director- Redevelopment to prepare and submit necessary applications and certifications to the California Debt Limit Allocation Committee for up to $100 million in private activity bond authority to be used in the issuance of the County's 1995 Home Mortgage Revenue Bonds. FISCAL IMPACT None. No General Fund dollars are involved. All costs associated with the issuance and administration of this program are paid for from bond proceeds. BACKGROUND/REASONS FOR RECOMMENDATIONS The Federal Government has placed a limit on the volume of"private activity bonds" (single and multi-family bonds, Mortgage Credit Certificates, Industrial Development Bonds, etc.) CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR R COMMEND TION OF BOAR COMMITTEE: _ APPROVE OTHER SIGNATURE(S):- ACTION OF BOARD ON `T 9S APPROVED AS RECOMMENDED OTHER IT IS BY THE BOARD ORDERED that Resolution 95/125 is ADOPTED. VOTE OF SUPERVISORS /UNANIMOUS I HEREBY CERTIFY THAT THIS IS A ✓ 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 510-646-4076 cc: Community Development ATTESTEDcc 021 , 195th County Administrator PHIL BATCHELOR, CLERKtiF County Counsel THE BOARD OF SUPERVISORS via Community Development AND COUNTY ADMINISTRATOR OHS CGMS CDLAC BY , DEPUTY JK:Ih sra17/sfmrb.bos • v ti '♦ which may be sold in each state. In California, the task of apportioning this limit among issuers is assigned to the California Debt Limit Allocation Committee, a unit of the State Treasurer's Office. Staff has completed a survey of home builder and lender interest in a new issuance of Single Family Mortgage Revenue Bonds. Required monetary deposits equal to 1% of requested amounts have been submitted in order to allow the County to make necessary certifications to the State when the County accepts any authority. Contra Costa County has issued over $400 million in single family bonds over the past decade. These bond proceeds provided funds sufficient to finance over 4,000 mortgages for low and moderate income first time homebuyers. In addition, the County currently uses Mortgage Credit Certificates to provide low and moderate income first time homebuyers with access to below market rate financing. Over $220 million in Mortgage Credit Certificates have provided financing for approximately 1,800 first time homebuyers. COUNTY OF CONTRA COSTA RESOLUTION NO. 95/125 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE TO PERMIT THE ISSUANCE OF QUALIFIED MORTGAGE BONDS WHEREAS,there is a shortage in the County of Contra Costa(the "County") of decent, safe and sanitary housing, particularly of housing afforded by persons in the lower end of the purchasing spectrum, and a consequent need to encourage the construction of homes affordable by such persons and otherwise to increase the housing supply in the County for such persons; and WHEREAS, the Board of Supervisors of the County has adopted an ordinance declaring its intent to engage in a home mortgage finance program (the "Program") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California(the "Act") and to issue bonds pursuant to the Act in furtherance of the Program; and WHEREAS, Section 146 of the Internal Revenue Code of 1986 (the "Code") limits the amount of qualified mortgage bonds that may be issued in any calendar year by entities within a state (the "Ceiling Amount") and authorizes the legislature of such state to provide the method of allocating authority to issue qualified mortgage bonds within such state; and WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of California governs the allocation in the State of California, of the state Ceiling Amount established by Section 146 of the Internal Revenue Code, among governmental units in the State of California having the authority to issue qualified mortgage bonds; and WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an application for a portion of the state Ceiling Amount with or upon the direction of the California Debt Limit Allocation Committee ("CDLAC")prior to the issuance of qualified mortgage bonds; and WHEREAS, CDLAC procedures require an applicant for a portion of the state Ceiling Amount to certify to CDLAC that the applicant has on deposit an amount equal to one percent (1%) of the amount of allocation requested (not to exceed $250,000). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA: 1. The submission heretofore by the Deputy Director - Redevelopment of the County of an application to CDLAC for an allocation of a portion of the state ceiling (as that term is defined in the Government Code)in an amount equal to $90,650,000 for application toward the issuance of qualified mortgage bonds by the County, is hereby approved, confirmed and ratified. The Deputy Director - Redevelopment of the County, or his designee, is hereby authorized, on behalf of the County,to submit all such other documents as may be required to CDLAC pursuant to Government Code Section 8869.85 in furtherance of the application. 2. An amount equal to $250,000 is hereby authorized to be placed on deposit, and the Deputy Director- Redevelopment is authorized to certify to CDLAC that such funds are available. 3. The deposit referred to in Section 2 shall consist-of those amounts deposited with the County pursuant to deposit and escrow agreements with lenders and developers. RESOLUTION N095/125 4. The officers and employers of the County are hereby authorized and directed,jointly and severally, to do any and all things necessary or advisable in order to consummate the issuance, sale and delivery of the qualified mortgage bonds and otherwise to effectuate the purposes of this Resolution, and all actions previously taken by such officers and employees in connection with the establishment of the Program and the issuance, sale and delivery of the qualified mortgage bonds, including the submission of applications to CDLAC and the acceptance of deposits from developers and lenders, are hereby ratified and approved. 5. This Resolution shall take effect immediately upon its adoption. ADOPTED this 21st day of March, 1995 by the following vote: AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop NOES: None ABSENT: None Chair dthe Board of pervisors ATTEST: Phil Batchelor, County Administrator and Clerk of the Board of Supervisors By: Deputy nc:m =17Und&ra RESOLUTION NO. 95/125 2