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EJC:ar 7/11/80 RESOLUTION NO. 80-123 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE ISSUANCE OF $18,000,000.00 PRINCIPAL AMOUNT OF RESIDENTIAL REHABILITATION MORTGAGE REVENUE BONDS WHEREAS, this City Council has heretofore taken official action toward the issuance of up to Eight Million Dollars ($8,000,000.00) principal amount of residential rehabilitation mortgage revenue bonds, pursuant to the pro- visions of the Marks-Foran Residential Rehabilitation Act of 1973; and WHEREAS, it is in the public interest, for ~he public benefit, and in the furtherance of the public pur- poses of this City, that this body authorize the issuance of an increased principal amount of bonds for the purpose of carrying out the residential rehabilitation programs of the City; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: 1. Pursuant to the Marks-Foran Residential Re- habilitation Act of 1973, the City is legally authorized to issue bonds, and to use the proceeds thereof to purchase mortgage loans on residential property made through a qual- ified mortgage lender. 2. This body constitutes the City, and is legally authorized issuance of bonds by the City. the governing body of to provide for the 3. The City's Residential Rehabilitation Mortgage Financing Program (the "Program"), as adopted by Resolution No. 79-217, includes the funding of mortgage loans for the rehabilitation and, when permitted by law, the acquisition of residences located within the jurisdiction of the City. 4. Mortgage revenue bonds of the City (the "Bonds"), are hereby authorized to be issued in the total principal amount of Eighteen Million Dollars ($18,000,000.00) (being the sum of $8,000,000.00 principal amount referred to hereinabove, and an additional $10,000,000.00 principal amount), for the purpose of funding mortgage loans origin- ated with respect to the Bonds, and for the establishment of a mortgage reserve fund and a debt service reserve fund to provide for the further security of the Bonds; provided, however, that such Bonds, or portions of the said principal amount thereof, shall be sold only if: (i) the interest thereon will be excludable from the gross incomes of the holders thereof for federal income tax purposes, and (ii) this City Council determines that the demand for such loans within the City at the time of such sale(s) requires that the Bonds be sold. 5. The Bonds shall be payable from the revenues received by the City with respect to certain mortgage loans the City intends to purchase from participating lending institutions, including without limitation, payments re- ceived from policies of insurance on such mortgage and con- struction loans, and from the investment earnings of the