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HomeMy WebLinkAbout85-083JHHW/TEC: dl v 6-27-85 RESOLUTION 8543 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $20,000,000 AGGREGATE PRINCIPAL AMOUNT OF ITS HOME MORTGAGE REVENUE BONDS, 1985 SERIES A AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE AND SALE OF SAID BONDS WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") authorizes cities to incur indebtedness for the purpose of financing home mortgages authorized by the Act; and WHEREAS, the City Council of the City of Santa Aha hereby finds and declares that it is necessary, essential and a public purpose for the City of Santa Ana (the "City") to finance home mortgages pursuant to the Act, in order to increase the housing supply in the city for persons and families within the income limitations established by the Act; and WHEREAS, the City Council of the City of Santa Ana finds and determines that it is in the best interest of the City to engage in a home financing program (the "Program") pursuant to the Act for persons within income limits estab- lished by the Act for purpose of encouraging the construction of homes affordable by such persons; and WHEREAS, the City Council of the City of Santa Ana finds and determines that the Program complies with the land use element and housing element of the general plan of the City; and WHEREAS, the City Council of the City of Santa Ana hereby finds and declares that this Resolution is being adopted pursuant to the powers granted by the Act; and WHEREAS, the Mortgage Bond Allocation Committee of the State of California has, on February 13, 1985, authorized the City to issue its home mortgage revenue bonds (the "Bonds") in an aggregate principal amount not to exceed $27,000,000 in accordance with the Act and the Program of the City; and Resolution 85-83 Page 2 WHEREAS, certain lending institutions and certain de- velopers of residential housing have agreed to participate in the Program and have made deposits of cash and have agreed to deposit letters of credit to evidence their commitment thereto; and WHEREAS, to implement the Program in 1985, there have been made available to the City Council of the City the following documents: 1. Rules and Regulations Establishing Eligibility Criteria for Lending Institutions (the "Lending Institution Rules and Regulations"); 2. Rules and Regulations Establishing Eligibility Criteria for Mortgagors and Home Mortgages (the "Mortgagor Rules and Regulations"); 3. Proposed form of Trust Indenture (the "Indenture") by and among the City and Security Pacific National Bank, as trustee (the "Trustee"); 4. Proposed form of Origination, Service and Administration Agreement, by and among the City, the Trustee, Verex Mortgage Corporation (the "Administrator") and each participating lending institution (the "Agreement"); 5. Proposed form of Developer Agreement by and among the City, the Trustee, the Administrator and each developer of single family homes who is participating in the Program (the "Developer Agreement"); 6. Proposed form of Developer Agreement-City by and among the City, the Trustee and the Administrator (the "Developer Agreement-City"); 7. Proposed form of Bond Purchase Contract (the "Purchase Contract"), by and between the City and Salomon Brothers, Inc. and Stone & Youngberg, as Underwriters (the "Underwriters"); and 8. Proposed form of Preliminary Official Statement respecting the issuance of the aforesaid home mortgage revenue bonds of the City (the "Preliminary Official Statement"). NOW, THEREFORE, the City Council of the City of Santa Ana resolves as follows: Resolution 85- 83 Page 3 Section 1. The Lending Institution Rules and Regulations and the Mortgagor Rules and Regulations, in the forms presented to and considered at this meeting are hereby adopted and approved. Section 2. The form, terms and provisions of the In- denture are hereby approved, and the City Manager is authorized and empowered to execute and deliver, on behalf of the City, and the City Clerk is authorized to attest as to such execution of, the Indenture in substantially the form presented to and considered at this meeting of the City Council, with such changes therein, however, as may be approved by the City Manager executing the same, such ap- proval to be conclusively evidenced by his execution thereof. Section 3. The form, terms and provisions of the Agree- ment and the Developer Agreement are hereby approved, and the City Manager is authorized and empowered to execute and deliver, on behalf of the City, the Agreement and the De- veloper Agreement in substantially the form of each such agreement presented to and considered at this meeting of the City Council, with such changes therein, however, as may be approved by the City Manager executing the same, such approval to be conclusively evidenced by his execution thereof. Section 4. The forms, terms and provisions of the Developer Agreement-City are hereby approved, and the City Manager is authorized and empowered to execute and deliver, on behalf of the City, the Developer Agreement-City in substantially the form presented to and considered at this meeting of the City Council, with such changes therein, however as may be approved by the City Manager executing the same, such approval to be conclusively evidenced by his execution thereof. Pursuant to the terms of the Developer Agreement-City, the reservation by the City of a Developer Allocation (as said term is defined in the Developer Agreement-City) in the amount of $3,970,000, and the payment by the City of a cash fee to the Trustee, constituting the City's Developer Commitment Fee (as said term is defined in the Developer Agreement-City), in an amount not greater than six percent (6%) of the City's Developer Allocation, are hereby approved. Resolution 85-83 Page 4 Section 5. The City does hereby create an issue of its Home Mortgage Revenue Bonds, 1985 Series A in an aggregate principal amount not to exceed $20,000,000 (the "Bonds"), and resolves that the Bonds shall be issued under, executed in accordance with, and secured by the Indenture; provided that, prior to such issuance and execution, each of the following shall occur: (a) The Mortgage Bond Allocation Committee shall have authorized the City to issue Bonds in an aggregate principal amount at least equal to the aggregate principal amount of Bonds authorized to be issued pursuant to this Resolution; and (b) The City shall have adopted a resolution, after a public hearing following reasonable public notice, approving a policy statement as described in Section 103(j)(5)(B) of the Internal Revenue Code of 1954, as amended, and directing publication of such policy statement. Section 6. The interest rate or rates to be borne by the Bonds shall be as established in the Indenture. Section 7. Verex Mortgage Company is hereby designated pursuant to Section 52020(b) of the California Health and Safety Code as administrator of the Program with respect to the Bonds. Section 8. The form, terms and provisions of the Purchase Contract are hereby approved and the City Manager of the City is hereby authorized and directed on behalf of this City and in its name to execute and deliver to the Underwriters the Purchase Contract in substantially the form presented to and considered at this meeting of the City Council, with such changes therein, however, as may be approved by the City Manager executing the same, such approval to be conclusively evidenced by his execution thereof. The City Manager is authorized and empowered to fix, by agree- ment with the Underwriters, the terms and conditions upon which the Bonds shall be sold to the Underwriters pursuant to the Purchase Contract. Section 9. The City Manager, who shall sign by facsimile signature, is hereby authorized and directed to execute, in the name of the City and on its behalf, and the City Clerk, who shall sign by facsimile signature, is hereby authorized and directed to impress the City seal or a facsimile thereof Resolution 85-83 Page 5 and attest, the Bonds and to deliver the Bonds to the Trustee for authentication and delivery to the Underwriters. Section 10. The Preliminary Official Statement, and the distribution thereof on behalf of the City by the Under- writers, are hereby authorized and approved. Section 11. The final official statement (the "Official Statement"), and the distribution thereof by the Underwriters, with such changes to the Preliminary Official Statement reflected therein as may be directed by the City Manager or the City Attorney of the City, is hereby authorized and approved. The City Manager shall, on behalf of the City and in its name, execute the Official Statement in such final form as he, with the advice of the City Attorney, may approve. Section 12. Pursuant to the authorization contained in Section 50189(b)(2) of the California Health and Safety Code and based on the requirements for eligibility for participation in the City's Program as set forth in the Mortgagor Rules and Regulations, it is hereby found that there are insufficient numbers of creditworthy persons whose incomes do not exceed eighty percent (80%) of the median household income applicable to the Program and, accordingly, the income limitation applicable to not less than fifty percent (50%) of the home mortgages on previously occupied homes financed under the Program from any supplementary allocation of qualified mortgage bonds from the Mortgage Bond Allocation Committee shall be increased to ninety percent (90%) of the applicable median household income for the Program. Section 13. The City Clerk, the City Manager and any other appropriate officers or agents of the City shall execute such other certificates, instruments and agreements, and do or cause to be done any and all other acts and things as may be necessary or advisable in order to effect the purposes of this Resolution including, but not limited to, obtaining insurance with respect to the Bonds, providing for "put" features with respect to the Bonds, and executing and deliv- ering any and all certificates and documents required in connection with the issuance of the Bonds and the making of the mortgage loans under the Program. Section 14. Ail actions heretofore taken by the officers and agents of the City with respect to the establishment of Resolution 85-83 Page 6 the City's Program and the sale and issuance of the Bonds are hereby ratified, confirmed and approved. Section 15. The findings, declarations and determin- ations set forth in the recitals of this Resolution are hereby adopted. ADOPTED THIS 15t day of July , 1985. ATTEST: Daniel E. Griset Mayor ~ni~e C. Guy~ /-- // Clerk of the CoUncil/ COUNCILMEMBERS: Griset Aye Johnson Absen% Acosta Aye Hart Luxembourger b-~t McGuigan Young APPROVED AS TO FORM: Eawa-r~/J( eo~er City Att~