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HomeMy WebLinkAboutAG RPTS 1994 0907 RDA REG ."uorAIEN\ BUMMED Next Res. 94-29 * WAIN it INF * REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA 56,A44100 WEDNESDAY, SEPTEMBER 7, 1994 '414aro, 7:00 P.M. park Community Center 799 Moorpark Avenue 1. CALL TO ORDER: 2. ROLL CALL: 3. PROCLAMATIONS, COMMENDATIONS, AND SPECIAL PRESENTATIONS: 4. PUBLIC COMMENT: 5. CONSENT CALENDAR: A. Consider Approval of the Warrant Register. Fiscal Year 1993/94 : Warrants 182 & 183 24, 986.90 Staff Recommendation: Approve the Warrant Register. B. Consider Status Report on Tax Increment Revenues and Pass Through Payments to Affected Taxing Agencies. Staff Recommendation: Rdceive and file the report. Any member of the public may address the Agency during the Public Comments portion of the Agenda, unless it is a Public Hearing or Discussion/Action item. Speakers who wish to address the Agency concerning a Public Hearing or Discussion/Action item must do so during the Public Hearing or Discussion/Action portion of the Agenda for that item. Speaker card must be received by the Agency Secretary for Public Comment prior to the beginning of the Public Comments portion of the meeting and for Discussion/Action items prior to the beginning of the first item of the Discussion/Action portion of the Agenda. Speaker Cards for a Public Hearing must be received prior to the beginning of the Public Hearing. A limitation of three minutes shall be imposed upon each Public Comment and Discussion/Action item speaker. Copies of each item of business on the agenda are on file in the office of the City Clerk and are available for public review. Any questions concerning any agenda item may be directed to the City Clerk/529-6864 . Moorpark Redevelopment Agency Agenda September 7, 1994 Page 3 5. CONSENT CALENDAR: (Continued) C. Consider Single Family Mortgage Revenue - Backed Bond Program. Staff Recommendation: Approve Agency participation in the program and designate $10,000,000 as our estimated portion of the program, subject to review and acceptance of the JPA. 6. ACTION/DISCUSSION: 7. CLOSED SESSION: A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (pursuant to Government Code Section 54956.8) Property: APN 511-0-080-19, 511-0-080-20, 511-0- 080-21, 511-0-080-31, and portions of 511-0-080- 25 and 511-0-080-26 (North Side of Los Angeles Avenue and South Side of Poindexter Avenue contiguous to Mission Bell Plaza) Negotiating Parties: City of Moorpark and Ventura Pacific Capital Group Under Negotiation: Terms B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (pursuant to Government Code Section 54956. 8) Property: APN 511-0-050-09 Negotiating Parties: City of Moorpark and Kirk Aikens Under Negotiation: Terms C. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (pursuant to Government Code Section 54956.8) Property: APN 511-0-050-014 Negotiating Parties: City of Moorpark and John and Stephanie Casillas Under Negotiation: Terms D. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (pursuant to Government Code Section 54956.8) Property: 18 High Street Negotiating Parties: City of Moorpark and " Charles Abbott & Associates Under Negotiation: Price and Terms , - Moorpark Redevelopment Agency Agenda September 7, 1994 Page 3 7. CLOSED SESSION: (Continued) E. CONFERENCE WITH REAL PROPERTY NEGOTIATOR (pursuant to Government Code Section 54956.8) Property: 226 High Street Negotiating Parties: City of Moorpark and Kenneth Moss Under Negotiation: Price and Terms S. ADJOURNMENT: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 529-6864. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-35. 104 ADA Title II) k CITY OF MOORPARK ) COUNTY OF VENTURA ) ss STATE OF CALIFORNIA ) I, Lillian E. Hare, duly appointed Secretary of the Redevelopment Agency of the City of Moorpark, County of Ventura, State of California, do hereby certify under penalty of perjury, that I posted a copy of the Moorpark Redevelopment Agency agenda on September 2, 1994 for the meeting of September 7, 1994 at the following location: Moorpark Community Center 799 Moorpark Avenue Moorpark, California 93021 Said notice shall remain in place until after the meeting so that it is available for public review for at least 72 hours pursuant to Section 54954 et. seq. of the California Government Code. p •MEN 7. Lillian E g re, Secretary F Dated: November 16, 1994 ' ESTABLISHED * MARCH 18.1987 *. 90 04IIFORN QQ V FOitr of �oa� ITEM �b MOORPARK REDEVELOPMENT AGENCY AGENDA REPORT TO: The Chairman and Members of the Moorpark Redevelopment Agency FROM: Richard Hare, Finance Director/Agency Trea-• -r DATE: August 22, 1994 (MRA Meeting of 09/07/94) SUBJECT: Single Family Mortgage Revenue - Backed Bond Program Urban Futures Incorporated, our financial advisors for bond financing, with Miller & Schroeder and Magnus Capital, Inc. , have forwarded the attached explanation of their proposed bond pool program for redevelopment agencies. This program has several advantages worth further exploration by the Agency. This program could assist us in meeting our affordable housing needs. It could also be applied in the sale of homes in our new housing project planned for the area between Poindexter and Lassen Streets. Staff has identified twenty (20) existing houses which are currently listed and are eligible for this program. It is also likely that within the next three years, over 100 homes and townhomes will be built that fall within the program price limits. Having this program in place would provide an additional financing option for the first time home buyer. The time frame for participation is outlined on page 3 of Urban Futures' correspondence. Staff is requesting Agency support of the concept which satisfies the first required step. We would then receive the Joint Power Agreement (JPA) for our review. The JPA would be reviewed by staff and presented to the Agency at the meeting of September 21, for review and approval. RECOMMENDATION Approve Agency participation in the program and designate $10, 000, 000 as our estimated portion of the program, subject to review and acceptance of the JPA. MOORPARK, CALIFORNIA c:\wpwiN60\cc.REp\BoND.mRA REDEVELOPMENT AGENCY MEETING OF 199 , ACTION: URBAN . �3 RECEIVED AUG 18 1994 CITY OF MOORPARK MEMORANDUM TO: Steve Kueny Executive Director Moorpark Redevelopment Agency FROM: Marshall F. Linn Douglas P. Anderson SUBJECT: Explanation of Single Family Mortgage Revenue-Backed Bond Program DATE: August 11, 1994 OVERVIEW Urban Futures, Inc., with Miller & Schroeder and Magnus Capital, Inc. is sponsoring a new Single Family Mortgage Revenue Bond Program which will make available to redevelopment agencies mortgage loan funds at below-market interest rates for first time home buyers under the auspices of a Joint Powers Authority (JPA) which we are currently forming. We have decided to implement this program because of renewed interest in the marketplace for single family development after the long hiatus brought about by the recent recession. Additionally, we feel this program can be very helpful to our clients as they seek to meet the recently enacted performance requirements regarding the provision of affordable housing in their communities. This new program has two major benefits to recommend it to redevelopment agencies over the more traditional mortgage revenue-backed bond programs which were popular during the 1980's. In the first place, the program guarantees that the tax exempt financing will always be available at rates below taxable rates during the life of the program. As you may recall, the older tax exempt bonds were sold at fixed rates which were vulnerable to falling taxable rates. Secondly, the program is available to agencies for substantially less "up front and at-risk" money than were the older bonds. We have decided to use redevelopment agencies instead of municipalities because, by doing so, agencies may be able to take credit against their requirements to produce affordable housing if they elect to marry this program with additional agency subsidies. State law allows agencies to receive credit for and become a party to real estate transactions either inside or outside project areas if the transactions are to provide affordable housing. Each individual redevelopment agency can attach additional programs (such as additional soft seconds or other forms of subsidy) as it wishes without any need to accommodate other redevelopment B.MP.0894-SFMRBBP Crestview Corporate Center-3111 N.Tustin Avenue,Suite 230,Orange,CA 92665 Tel:(714)283-9334 Fax:(714)283-9319 agencies in the JPA. CURRENT PROGRAM COMPARED WITH FORMER PROGRAMS Mortgage revenue-backed bond programs which were popular several years ago and with which you are no doubt familiar, were structured such that when the bonds were issued the rate was fixed. In a stable or ascending market the tax exempt interest rate remained attractive to users. Agencies had no problem in disbursing bond funds. However, as taxable interest rates fell below tax exempt rates, bonds proceeds, for which agencies had paid substantial up-front costs, were left languishing and had eventually to be used to defease bonds. The current program takes advantage of our ability to remarket the bond proceeds on a weekly basis prior to their disbursement as long-term mortgages. As a consequence, tax exempt interest rates always trail taxable interest rates. At such time as a bundle of mortgages of sufficient size is originated, a like amount of proceeds will be removed from the bond pool and used to purchase the loans. HOW THE PROGRAM WORKS • The criteria for selection will be a first time home buyer, as defined, with household income and purchase price maximums based on the guidelines for the State CHFA program. For loans originated within the City of Moorpark, the following income and purchase price restrictions would apply: 1-2 persons 3+ persons I. Maximum Household Income = $57,900 $66,600 New Homes Existing Homes II. Maximum Purchase Price = $231,120 $174,420 • Bond proceeds may be used for mortgage loans on either new construction or existing dwelling units. • A JPA is being created to include invited redevelopment agencies. • The break-even point for this bond issue is approximately $50,000,000. We believe that when all is said and done, we will generate a bond program with a $70,000,000 principal amount. • Redevelopment agencies will join a JPA subject to documents which are now being prepared by Richards, Watson & Gershon, and Stradling, Yocca, Carlson & Rauth as co-counsel. • Urban Futures is drafting the application to CDLAC for submittal by October 15, 1994, for its November 17th meeting. We are confident that we can generate at least a $70,000,000 allocation from CDLAC. B.MP.0894-SFMRBBP 2 • • Although each redevelopment agency will reserve its amount of money from the pool, agencies may swap allocations as the need arises. • The loan origination period will be up to 3%z years. • As bonds are sold the proceeds will be invested in taxable securities with some additional security in the event that taxable rates ever dip below non taxable rates. As described above, the tax exempt rates will float below the taxable rates. • Bond administrator can remove funds from the bond pool in increments of at least $1,000,000. We estimate that since this amount will probable equal somewhere between 8 and 11 loans, we should not have a problem in removing funds. • Bond administrator will post the tax exempt rate for the month at the first of each month and will request draws upon the bond pool to be made by some date certain within each month. • There will be a select number of qualified lenders who can participate in the program. Bond administrator will be sure to select lenders on a state-wide scale such that there are sufficient lenders for each city to provide access and competition. • The bond program has a very attractive item whereby purchasers will only need to put down 1 Y2% of the total price as a down payment. The first trust deed will comply with FHA requirements and can be equal to 97% of the value of the property. The bond program will then generate a soft second trust deed which will be paid from with proceeds and can equal 11/2% of the value of the property creating a total mortgage (first and second TD) equal to 98.5% of the value of the property. The property and the mortgage will have to be FHA insurable. In effect the redevelopment agency will act as a conduit for the financing of first time home buyer mortgages. NEITHER THE AGENCY OR THE CITY WILL HAVE ANY LIABILITY AS TO REPAYMENT OF THESE MORTGAGES, NOR WILL THE AGENCY OR THE CITY HAVE ANY ADMINISTRATIVE COSTS OR RESPONSIBILITIES. DEADLINES FOR PARTICIPATION It is our intention to issue the bonds prior to the end of 1994. To accomplish this, we will need to submit our completed application to CDLAC by October 15, 1994. In order for Moorpark to participate in the program, it is important that the Agency take its actions in accordance with the following time schedule. Action Deadline 1 . Approve the program in concept and designate the amount of funds required Immediately 2. Approve JPA documents & join JPA By 2nd Mtg. in September 3. Approve Bond documents By 2nd Mtg. in November B.MP.0894-SFMRBBP 3 dl In conclusion, we believe this is an excellent opportunity for the Moorpark Redevelopment Agency to encourage the construction and purchase of affordable housing in the City and to make certain that the existing housing stock, which in some cases is just beyond the reach of families, becomes affordable to these families by reducing their interest carry on their mortgages. cc: Richard Hare B./42.0894-SFMRBBP 4