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HomeMy WebLinkAboutCC 5 O.C. HSNG BOND 03-21-88 '='"'~ '":"':: .... ~,~ :i"'=:,=, "~ ': CONSENT CALENDAR ' . '.:-"- . .t : ~ :i~ ,.- ~ NO. ' Inter- Com DATE. NARC~ ~1, 1988 TO: FROM: SUBJECT: HILLIAM A. HUSTON, CITY MANAGER COIqMU. NITY DEYELOPMENT DEPARTMENT COUNTY OF ORANGE SINGLE FAMILY HOUSING BOND PROGRNq - COOPERATIVE AGREEMENT RECOHRENDATION Adopt Resolution No. 88-31 and the accompanying Cooperative Agreement between the City of Tustin and the County of Orange, for participation in a Home Mortgage Finance Program. DISCUSSION The County of Orange has operated a mortgage revenue bond financing program for newly constructed single family and multi-family housing units in the County since 1980. Mortgage .revenue bonds provide an alternative method of financing low-interest fixed rate mortgages for new and existing single family and mul ti-fami ly housing uni ts. · In July 1987, the County sold $32,194,540.65 in single family mortgage revenue bonds. This program provides mortgages at an 8.15% interest rate for approximately 310 new units (located in specified developments) and 95 existin9 units (located coun---~y-wide) to be purchased by first time homebuyers (see Attachment I). Previous offers from the County to participate in the mortgage revenue bond program applied only to newly constructed units, but did not include existing units. The new attached Cooperative Agreement would provide for inclusion of existing single family units. Participation in the program could allow qualified first-time home buyers of existing single family units in the City of Tustin to purchase their first home at more affordable interest rates than would be normally available. The program would be administered by the County at no cost to the City. The City Attorney's office has reviewed the attached Resolution and Cooperative Agreement, and has determined that participation in the County's program, would in no way affect the City's ability to sponsor its own mortgage revenue bond County of Orange Single Family Housing Bond Program - Cooperative Agreement March 21, 1988 Page two program for the same purpose if it should choose to do so {State law impowers the City to sponsor its own program within State estabished limits). Section 5 of the Cooperative Agreement was added by the City Attorney to protect the City from any potential liability arising through the County's Administration of the program. CONCLUS ION Mortgage revenue bond financing programs are one method by which a municipal agency can increase the affordability of home purchasing to qualified first-time buyers. Participation in this program would affect only existing single family units in the City, and would not prohibit the City from sponsoring its own program should it choose to do so. Steve Rubin, Senior Planner Christine A. Shi~igleton~_~Y Director of Community Development SR-CAS'ts'pef Attachments: Memo from City Attorney Resolution No. 88-31 Cooperative Agreement Attachment I Community Development Department ~ TO: STEVE RUBIN, COMMUNITY DEVELOPMENT DEPARTMENT FROM: CITY ATTORNEY SUI}JFCT: SINGLE FAMILY MORTGAGE REVENUE BOND PROGRAM v : We have reviewed the information-from the County of Orange about the County's Single Family Mortgage Revenue Bond Program and the County's desire to provide mortgages to new and existing units within the City of Tustin under this program. In this regard we have reviewed the proposed ReSolution for the City's adoption of the Home Mortgage Finance Program in cooperation with the County of Orange and the CoUnty's propose'd. Cooperative Agreement. Our comments are shown on the enclosed markups of the Resolution and the Cooperativ~greement. / City Attorney LOIS E. JEFFREY Deputy City Attorney LEJ: lw:D:3/7/88(21) cc: Christine Shingleton William Huston Enclosures 6 7 8 9 10 11 12 13 14 15 17 ,18 19 2O 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-31 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN~ .ADOPTING A HOME MORTGAGE FINANCE PROGRAM IN COOPERATION WITH THE COUNTY OF ORANGE. WHEREAS, there is a shortage in the County of Orange {the "County") and in the City of Tustin (the "City") of decent, safe and sanitary housing, particularly of housing affordable by persons in the lower end of the purchasing spectrum, and a consequent need to encourage the construction, purchase and rehabilitation of homes affordable by such persons and oth~erwise to increase the housing suply in the City and in the County for such persons; and WHEREAS, the Board of Supervisors of the County has resolved to engage in a home mortgage finance program {the "Program") pursuant to the Zenovich-Moscone-Chacon Housing and Home Financing Act, Part 5 of Division 31 of the Health and Safety Code of the State of California, Sections 50,000 et.seq. {the "Act") for persons and families within the income limits established by the Act and has determined to issue revenue bonds pursuant to the Act to provide funds for the Program; and WHEREAS, this City Council finds and determines that it is in the best interest of the City to adopt the Program and to consent to the implementation of the Program by the 'County within the geographic boundaries of the City pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin as follows: SECTION 1. The City hereby adopts the Program for the purpose of increasing the housing supply in the County and in the City and consents to the implementation of the Program by the County with respect to all property located within the geographic boundaries of the City pursuant to the Act. SECTION 2. The agreement, dated as of , between the County and the City (the "Cooperative Agreement"), in substantially the form submitted to this meeting, is hereby approved; and the proper officers of the City are hereby authorized and directed to execute and deliver the same, for and in the name and on behalf of the City, and to approve any additions to or changes in said form thereof which they deem necessary to be conclusively evidenced by their execution of the Cooperative Agreement as so added to or changed. The proper officers of the City are further authorized to enter into such additional agreements wi th the County, execute such other documents and take such other actions as they may deem necessary or appropriate to carry out the purpose and intent of the Cooperative Agreement or to cooperate in the implementation of the Program. 1 2 3 4 5 6 8 10 11 12 13 14 1.5 16 17 18 19 ~0 21 22 23 26 27 28 Resolution No. 88-31 Page two SECTION 3. This Resolution shall take effect immediately upon its a dop ti on. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the day of , 1988. Ronald B. Hoesterey, Mayor Mary Wynn, City Clerk COOPERATIVE AGREEHENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF TUSTIN THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby made and entered into as of , 1988 by and between the County of Orange, a legal subdivision and body corporate and politic of the State of California (the "County"), and the City of Tustin, a municipal corporation of the State of California (the "City"). WITNESSETH WHEREAS, the County has determined to engage a home mortgage finance program {the "Program") pursuant to the Zenovich-)4oscone-Chacone Housing and Home Finance Act, Part 5 of Division 31 of the Health and Safety Code of the State of California, Sections 50,000 et.seq. {the "Act") to make or acquire, directly or indirectly, long-term loans to finance the construction and acquisition of homes in the County, all as provided for in said Act; and WHEREAS, the County has determined to borrow money to finance the Program by the issuance of revenue bonds (the "Bonds") as authorized by the Act; and WHEREAS, the City has adopted the Program and detemined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for .the purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1. The words and phrases' of this Cooperative Agreement shall, for ill purposes hereof unless otherwise defined herein, have the meanings assigned to such words and phrases' in the Act. SECTION 2. The County agrees to use its best efforts to undertake the Program and has issued the Bonds therefor pursuant to the Act. SECTION 3. The City represents and warrants to the County that: (1) the City has heretofore adopted a general plan for the City in conformance with the provisions of the Planning Zoning Law of the State of California (Government Code Sections 65,000 et. seq.), (ii) said general plan includes a land use element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 4. The City agrees that the County may make or acquire home mortgages under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City and further agrees that the County may exercise any or all of the City's powers for the purpose of financing home mortgages pursuant to the Act with respect to property located within the geographic boundaries of the City. SECTION 5. County agrees to assume liability and defend and hold the City harmless from all loss, costs, damages, claims or expenses arising from the negligent or wrongful acts or ommissions of County officers, agents and employees in the performance of this Agreement to the extent that such liability is imposed on the City by reason of the provisions of Section 895.2 of the Government Code of the State of California. SECTION 6. The City agrees to undertake such further proceedings or actions as may be n~cessary in order to carry out the terms and the intent of this Cooperative Agreement; and the City further agrees to refrain from taking any action which would to its knowledge tend to adversely affect the rating on the bonds. SECTION 7. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements wi th other political subdivisions within the County, if deemed necessary and advisable to do so by the County. SECTION 8. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the Bonds. SECTION 9. This Cooperative Agreement shall expire and be of no further force and effect if no portion of the Bonds is applied to the benefit of property wi thin the City. IN WITNESS WHEREO~, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the date · first above written. COUNTY OF ORANGE SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OF SUPERVISORS By Chairman of the Board of Supervisors Clerk of the Board of Supervisors APPROVED AS TO FORM: County Counsel (SEAL) ATTEST: CITY OF By Mayor City Clerk APPROVED AS TO FORM City Attorney Z ":::C Z ~ O C) :3 Z >.-. u...i Z Z:) ~ II ATTACHMENT