HomeMy WebLinkAbout80-123EJC: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
RESOLUTION NO. 80- 123
PAGE TWO
proceeds of the Bonds.
6. The Bonds shall be, and are, special obli-
gations of the City and, subject to the right of the City to
apply moneys as provided, are hereby secured by an irre-
vocable pledge of the mortgage loans and revenues and funds
and accounts to be held by the trustee, and are payable as
to principal, redemption price, if any, and interest from
the revenues of the City as herein described. The Bonds are
not a debt of the State of California or any of its politi-
cal subdivisions; and neither the State, nor any of its
political subdivisions is liable thereon; nor in any event
shall the Bonds be payable out of any funds or properties
other than all or any part of the revenues, mortgage loans,
and funds and accounts as in this resolution set forth. The
Bonds do not constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or re-
striction. Neither the members of the City Council nor any
persons executing the Bonds shall be liable personally on
the Bonds, or subject to any personal liability or account-
ability by reason of the issuance thereof.
7. The aforesaid total principal amount of Eigh-
teen Million Dollars ($18,000,000.00) of the Bonds consti-
tutes the aggregate face amount of obligations to be issued
for the funding of mortgages originated with respect to the
Program.
8. The appropriate officers and employees of the
City hereby are authorized and directed to provide for the
sale of the Bonds, and to take such steps as shall be
appropriate to implement such sale and the delivery of the
Bonds.
9. This resolution constitutes a proper exercise
of the powers of this body, and conforms to State and local
legal requirements relating to the issuance of residential
rehabilitation mortgage revenue bonds by a municipal cor-
poration of this State.
ADOPTED this 21st day of July , 1980,
by the following vote:
AYES:
NOES:
COUNCILMEN: BRICKEN, GRISET, LUXEMBOURGER,
SERRATO, WARD, YAMAMOTO
COUNCILMEN: MARKEL
ABSENT:
ATTEST:
c. GuY /
k/CLERK OF THE COUNCIL
COUNCILMEN: NONE
RD, MAYOR
APPROVED AS TO FORM:
EDWARD J. COOFER
CITY ATTORNEY