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HomeMy WebLinkAboutAGENDA REPORT 1985 0419 CC ADJ ITEM 05AALBERT PRIETO Mayor JAMES D. WEAK Mayor Pro Tern THOMAS C. FERGUSON Councilmember DANNY A. WOOLARD Councilmember LETA YANCY - SUTTON Councilmember DORIS D. BANKUS City Clerk JOHN C. GEDNEY City Treasurer MOORPARK M E M O R A N D U M TO: The Honorable City Council FROM: Steven Kueny, City Manager DATE: April 24, 1985 SUBJECT: Single Family Residential 1-4ortgage Revenue Bonds STEVEN KUENY City Manager CHERYL J. KANE City Attorney NIALL FRITZ Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police Enclosed are the cover letter explaining the subject process and accompanying resolution and ordinance prepared by the Bond Counsel. The interest rate amounts will be reviewed at the meeting. It appears that the interest rate for mortgages may be 100 or less. The referenced Trust Indenture, Mortgage Sale and Service Agreement, and Compliance and Administration Agreement for the proposed Issue are on the Council's desk adjacent to your mail boxes, if you desire to review these documents. The City Attorney's office has reviewed them on our behalf. In addition to the City Attorney, the Bond Counsel, Dave McEwen, and Underwriter, Pamela Wiget, will be in attendance at the April 29 meeting to review the documents and the remaining steps for issuance of the bonds. SK: ddb enclosures 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 FRITZ R. STRADLING NICK E. YOCCA C. CRAIG CARLSON WILLIAM R. RAUTH 111 K. C. SCHAAF RICHARD C. GOODMAN JOHN J. MURPHY THOMAS P. CLARK, JR. BEN A. FRYDMAN DAVID R. MCEWEN PAUL L. GALE RUDOLPH C. SHEPARD ROBERT J. KANE M. D. TALBOT BRUCE C. STUART DOUGLAS F. HIGHAM E. KURT YEAGER ROBERT J. WHALEN ROBERT E. RICH PETER J. TENNYSON THOMAS A. PISTONE STRADLING, YOCCA, CARLSON & RAUTH A PROFESSIONAL CORPORATION SCOTT E. MCCONNELL RENA C. STONE RANDALL J. SHERMAN BRUCE FEUCHTER MARK J. HUEBSCH KIRK F. MALDONADO PEGI A. GROUNDWATER DONALD J. HAMMAN JOHN J. SWIGART, JR. NEILA R. BERNSTEIN TONY L. LOWE CHRISTOPHER J. KILPATRICK NANCY RADER WHITEHEAD LEWIS G. FELDMAN SYLVIA D. LAUTSCH CLARK H. LIBEN50N ERNEST W. KLATTE III LAWRENCE B. COHN ANN D. CATRON ATTORNEYS AT LAW 660 NEWPORT CENTER DRIVE, SUITE 1600 POST OFFICE BOX 7680 NEWPORT BEACH, CALIFORNIA 92660-6401 TELEPHONE (714) 640.7035 Steven Kueny City Manager City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 April 23, 1985 JOHN E. BRECKENRIDGE DARYL H. CARLSON OF COUNSEL Re: $20,000,000 City of Moorpark Single Family Residential Mortgage Revenue Bonds, Issue of 1985 Dear Mr. Kueny: TELECOPIER (714) 640-7332 Enclosed herewith are the latest drafts of the Trust Indenture, Mortgage Sale and Service Agreement, Developer Agreement and Compliance and Administration Agreement for the proposed $20,000,000 City of Moorpark Single Family Residential Mortgage Revenue Bonds, Issue of 1985. I have included one set marked to show changes from the last draft which you received as well as an unmarked set for distribution to the council for their consideration. Also enclosed is an Ordinance which is required by statute for the purpose of adopting a home mortgage financing program for the City. This Ordinance enables the City to originate loans anywhere within the City boundaries. The program is set forth in two sets of rules and regulations which are attached; one governing the eligibility criteria for lending institutions and one governing the eligibility criteria for mortagors. These two sets of rules and regulations follow the terms set forth in the basic Bond documents. The Resolution which is included in this package approves each of the Bond documents as well as authorizes the issuance of the Bonds. As you will note in the Resolution, there are blanks in which we will insert the proposed purchase price for the Bonds to be paid by the underwriters as well as the maximum interest rate on any maturity of the Bonds and the Steven Kueny April 23, 1985 Page Two maximum interest rate for the mortgage loans. The final interest rates which will be inserted in the Bond documents will be determined upon pricing of the Bonds by Stone & Youngberg. The Resolution contemplates that these interest rates may not be known by the time of the Council's meeting on Monday, April 29, 1985, and therefore provides that the authority for inserting the correct interest rate and determining whether or not the Bonds are to be sold subject only to a rating or whether they are to be sold subject to insurance provided by FGIC is delegated to the City Manager subject of course to the maximum interest rate limitations set forth in the Resolution. This delegation of authority will enable the Bonds to be sold in an expeditious manner so as to obtain the lowest possible interest rate. I will be present at the meeting on the 29th should there be any additional questions that need to be addressed. In the meantime, if you have any questions concerning any of the documents or the Ordinance or Resolution, please give me a call. Very truly yours, STRAD NG, CCA, CARLSON & RAUTH David R. McEwen DRM : pmm Enclosures cc: Neil Yeager ORDINANCE NO. AN ORDINANCE OF THE CITY OF MOORPARK ADOPTING A HOME MORTGAGE FINANCE PROGRAM AND AUTHORIZ- ING AGENCY OFFICERS TO IMPLEMENT THE PROGRAM WHEREAS, there is in the City of Moorpark (the "City ") a shortage of affordable housing and a consequent need to encourage the construction of affordable homes and otherwise to increase such housing supply in the City of Moorpark; and WHEREAS, the City Council of the City intend to issue bonds, pursuant to Part 5 of Division 31 of the Health and Safey Code of the State of California (the "Act "), to provide financing for the acquisition and construction of housing in the City of Moorpark; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City hereby establishes a home mortgage finance program (the "Program ") pursuant to the Act, approves the Rules and Regulations Establishing Eligibility Criteria for Lending Institutions and the Rules and Regulations Establishing Eligibility Criteria for Mortgagors, copies of which are on file with the City Clerk and hereby determines to issue revenue bonds pursuant to said Act to provide funds for the Program. Section 2. The City hereby finds and declares that the Program will serve the Public purposes of increasing the housing supply and of providing financing for decent, safe and sanitary housing which is affordable by people on the lower -end of the purchasing spectrum. Section 3. The proper officers of the City are hereby authorized and directed to take all actions necessary or appropriate to implement the Program in accordance with the Act. Section 4. The provisions of this ordinance, being necessary for the welfare of the City and the inhabitants of the City of Moorpark shall be liberally construed to effect its purpose. Section 5. The City Clerk shall cause this ordinance to be published or posted in the manner provided for other ordinances of the City of Moorpark, within fifteen (15) days after its passage, in accordance with Section 36933 of the Government Code; shall certify to the adoption of this ordinance and shall cause the ordinance and this certification, together with proof of publication or posting, to be filed in the office of the City Clerk. Section 6. This ordinance shall become effective immediately after passage pursuant to Health & Safety Code Section 52031, this day of April, 1985. AYES: NOES: ABSENT: ATTEST: By City Clerk Mayor 04 -24 -85 4696p/2441/01 -2- RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK AUTHORIZING THE ISSUANCE OF $20,000,000 PRINCIPAL AMOUNT OF SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS, ISSUE OF 1985, SUCH BONDS TO BE ISSUED PURSUANT TO A TRUST INDENTURE DATED AS OF THE DATE OF THE BONDS, AUTHORIZING THE SALE OF SUCH BONDS, SUBJECT TO CERTAIN TERMS AND CONDITIONS, AND AUTHORIZING THE EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENTS, DOCUMENTS AND ACTIONS WHEREAS, Chapter 1 -5 of Part 5 of Division 31 of the Health and Safety Code of the State of California (herein called the "Act ") authorizes cities to issue revenue bonds for the purpose of financing home mortgages authorized by the Act, and the Act provides a complete, additional and alternative method for doing the things authorized thereby; WHEREAS, pursuant to the Act and an Ordinance adopted by the City, the City is authorized to carry out the public purposes described therein by issuing its revenue bonds to acquire home mortgages and by pledging such home mortgages as security for payment of the principal of and interest on such revenue bonds, and by entering into any agreements in connection therewith; WHEREAS, to alleviate the shortage of affordable residential housing facilities, and to provide capital for investment in such facilities for low and moderate income families and persons within the City, the City Council has developed and determined to implement a program (the "Program ") with respect to (i) the issuance by the City of its Single Family Residential Mortgage Revenue Bonds, Issue of 1985 (the "Bonds "), and (ii) the use of the Bond proceeds by the City to purchase without recourse from lending institutions (the "Lenders ") certain home mortgages (the "Loans "), made to finance residential facilities intended for use as the permanent place of residence by persons of low and moderate income (the "Residences "), which Loans are to be originated and serviced by the Lenders pursuant to Mortgage Sale and Service Agreements (the "Agreement "); WHEREAS, the City and the respective developers of the Residences, have entered into agreements (the "Developer Agreements ") for the purpose of setting forth, among other things, the terms and conditions pursuant to which the developers and the cities will deliver Loans for purchase by the trustee for the Bonds on behalf of the City and the City will reserve proceeds of the Bonds to provide funds for such purpose; WHEREAS, the City has now determined to issue the Bonds, and to enter into a Trust Indenture to secure the Bonds by a pledge and assignment of the Loans, the proceeds of the Bonds, certain insurance proceeds, certain reserve funds, certain investment earnings on the proceeds of the Bonds and the revenues received from the Loans and its rights under the Developer Agreements and the Agreements; WHEREAS, Stone & Youngberg, the Underwriter for the Program and the Bonds, has caused a Preliminary Official Statement, dated April , 1985, relating to the Bonds, to be submitted to the City for its review and approval for distribution to prospective purchasers of the Bonds; WHEREAS, Stone & Youngberg (the "Underwriters ") have submitted a form of agreement for the purchase of such Bonds (the "Purchase Agreement ") and it is desirable that the Bonds be sold at this time on the terms and conditions hereinafter provided; and WHEREAS, preliminary forms of the Trust Indenture, the Agreements, the Developer Agreements and the other necessary implementing documents have been presented to and reviewed by the City Council, with the aid of its staff, and such documents may now be conformed to the terms and requirements of the Purchase Contract and the Official Statement and be approved for execution. NOW, THEREFORE, IT IS ORDERED BY THE CITY COUNCIL OF THE CITY OF MOORPARK, as follows: 1. The City of Moorpark, Single Family Residential Mortgage Revenue Bonds, Issue of 1985, in a principal amount of $20,000,000, are hereby authorized to be issued pursuant to a Trust Indenture dated as of the date of the Bonds, in form substantially as submitted to the City Council at this meeting which Trust Indenture is hereby approved and authorized and directed to be executed by the Mayor and his signature thereto to be attested by the City Clerk who shall affix thereto the official seal of the City. 04 -22 -85 4693p/2441/01 -2- 2. The Mayor shall cause the execution of a Final Official Statement relating to the Bonds, setting forth such amendments and supplements to the Preliminary Official Statement as shall be necessary or convenient to accurately describe the Bonds in accordance with this Resolution, the Trust Indenture, the Purchase Agreement and the other related agreements, and documents. 3. The Purchase Agreement for purchase of $20,000,000 principal amount of City of Moorpark Single Family Residential Mortgage Revenue Bonds, Issue of 1985, substantially in the form submitted to the City at this meeting is hereby approved and the City Manager is authorized and directed to execute the Purchase Agreement on behalf of the City, provided that all of the following conditions are met: (a) than The purchase price of the Bonds shall not be less percent ( %) of the principal amount of the Bonds; (b) The Residential Mortgage Revenue Bonds interest rate for any maturity shall not exceed %; (c) The Residential Mortgage interest rate shall not exceed %; provided that the Underwriters may make provisions for adjustment of maturing amounts of principal and the maturity dates thereof in a manner which does not increase the effective interest rate of all Bonds above the annual interest rate limitation for the % annual Mortgage Loan Interest Rate limitation above set forth. The City Manager shall approve the final interest rate and the final purchase price and such other matters as may be necessary to insure prompt delivery of the Bonds prior to delivery of the Bonds. 4. The Developer Agreements with developers proposing to participate in the City's Program, the Mortgage Sale and Service Agreements, to be entered into by and between the City and Lenders proposing to participate in the City's Program and the Compliance and Administration Agreement to be entered into with Urban Futures, Incorporated are hereby approved in substantially the forms presented at the meeting and the Mayor is authorized and directed to execute the foregoing on behalf of the City with such amendments and supplements thereto as shall cause the foregoing to conform to the requirements of the City's Program. 5. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and upon 04 -22 -85 4693p/2441/01 -3- execution of the Purchase Contract, the Mayor, the City Manager and /or the City Clerk are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions and to execute and deliver any and all certificates, requisitions, agreements, including an agreement for investment of the proceeds of the Bonds and of the Loans, and other documents, including, but not limited to, those described in the Purchase Agreement and Section 211 of the Trust Indenture, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with the Purchase Agreement, the Trust Indenture, this Resolution and all related documents. 6. This resolution shall take effect from and after its adoption. I hereby certify that the foregoing is a full, true and correct copy of a resolution duly passed and adopted at a regular meeting of the City Council of the City of Moorpark held on the day of April, 1985, by the following vote: AYES: NOES: ABSENT: CITY OF MOORPARK Mayor ATTEST: City Cler (SEAL) 04 -22 -85 4693p/2441/01 -4-