HomeMy WebLinkAbout3878_CCv0001.pdf RESOLUTION NO. 3878
A RESOLUTION ADOPTING A HOUSING FINANCE REVENUE BOND PROGRAM IN
COOPERATION WITH THE COUNTY OF SAN BERNARDINO AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE FOR AND ON BEHALF OF THE CITY A
COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE
CITY
WHEREAS, there is a shortage in the County of San Bernardino
and in the City of Redlands of decent, safe and sanitary housing,
particularly of housing affordable by persons in the lower end of
the purchasing spectrum, and a consequent need to encourage the
construction of homes affordable by such persons and otherwise to
increase the housing supply in the County and in the City for such
persons; and
WHEREAS , the Board of Supervisors of the County has adopted
Ordinance No. 2496 declaring its intent to engage in a housing
finance revenue bond program (the "Program") pursuant to Chapters
1-5 of Part 5 of Division 31 of the Health and Safety Code of the
State of California (the "Act") and to issue bonds pursuant to the
Act to provide funds for the Program; and
WHEREAS, this City Council finds and determines that it is in
the best interest of the City of Redlands to adopt the Program and
to consent to the operation of the Program by the County of San
Bernardino within the geographic boundaries of the City pursuant to
the Act.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City
of Redlands, as follows :
1. The City of Redlands hereby adopts the Program for the pur-
pose of increasing the housing supply in the County and in the City
and consents to the operation of the Program by the geographical
boundaries of the City of Redlands.
2. The cooperative Agreement, dated as of March 1 , 1983, between
the County and the City (the"Agreement") , a copy of which is attached
hereto as Exhibit A, is hereby approved, and the Mayor and City Clerk
are hereby authorized and directed to execute and deliver said Agree-
ment, for and in the name and on behalf of the City of Redlands. The
Mayor, with the advice and consent of the City Attorney, is authorized
to approve any additions to or changes in the form of said Agreement
which they deem necessary or advisable, their approval of such addi-
tions or changes to be conclusively evidenced by the execution by
the Mayor of said Agreement as so added to or changed. The Mayor,
with the advice consent of the City Attorney, is further authorized
to enter into such additional agreements with the County, execute
such other documents and take such other actions as they may deem
necessary or appropriate to carry out the purpose and intent of the
Agreement or to cooperate in the implementation of the Program.
ADOPTED, SIGNED AND APPROVED by the City Council of the City
of Redlands, State of California, at its regular meeting held on the
15th day of February, 1983, by the following vote of the Council :
AYES: Councilmembers DeMirjyn, Martinez, Gorman; Mayor Roth
NOES: None
ABSENT: Councilmember Johnson
Maydr of the City of Redlands
ATTEST;
C y-:.clerk ; ;
FROM THF OFFICE OP -1 FIE
CITY CLERK
30 CAJON STREET
P.O.E307C280 (714) 793-2641
Rf DILANDS.CA 92373-0629
CITY OF REDLANDS, CALIFORNIA
February IG , 1983
Mr. Don Newcome, Director
Environmental Public Works Agency
Office of Community Development
606 East Mill Street
San Bernardino, California 92415
Dear Mr. Newcome:
Enclosed are four copies of the executed cooperation agreement
and Resolution No. 3878, a resolution of the City of Redlands
adopting a Housing Finance Revenue Bond Program in cooperation
with the County of San Bernardino.
Resolution No. 3878 was adopted by the City Council at its
regular meeting held on February 15, 1983 .
Sincerely,
L� rie Poyz
City Clerk
Enclosures
COUNTY OF SAN BERNARDINO
OFFICE OF COMMUNITY DEVELOPMENT �'`� : PUBLICiRONMENTAL WORKS AGENCY
606 East Milli Street - San Bernardino,CA 92415 ° 1,714) 383-2745 ' EWCOME
fOC
P,
January 26, 1983 �N ' �•
F �
fiIr. Chris Christiansen k
City of Redlands
P.Q. Box 280
Redlands, California 92373
Dear Mr. Christiansen:
The County of San Bernardino is in the process of organizing a $48.8 million
single family mortgage revenue bond issue to provide below-market rate mortgage
funds (currently about 11%) for owner--occupied housing developments located in
the County. The program will be pursuant to the rules of the Mortgage Subsidy
Bond Tax Act of 1980 and Chapters 1-5 of Part 5 of Division 31 of the Health
and Safety Code of the State of California ("AB 1355") . The significant
aspects of these two pieces of legislation which most directly affect the
program parameters are:
1. Three Year Requirement: The Act stipulates that the mortgagor
cannot have owned a home in the three years prior to purchasing a
home financed by a housing bond issue. This restriction is not
applicable if the hone being purchased is in a "targeted area." it
will be possible, however, to utilize up to 10% of the bond proceeds
for non-first time homebuyers.
2. Owner Qccupa cy: The mortgagor must intend to reside in the hone
being financed with bond proceeds as his or her principal residence
of two years.
3. Purchase Price: The purchase price of each residence must not exceed
110% of the average purchase price of hones in the Riverside-San
Bernardino Standard P%Ietropolitan Statistical Area. If the home being
financed is located in a "targeted area," the purchase price can be
120% of the average area purchase price. Based on a recent average
area purchase price study, the 110% figure for new construction would
be approximately $101,893 and the 120% figure would be approximately
$11.1,156. For existing homes, the 110% figure is approximately
$94,710, and the 120% figure is approxdrately $103,320.
4. Income Limitation: Approximately $20 million of the mortgage funds
may be available with an incarfe limitation of up to 1500 of median
income. For any allocation above $20 million, there will be a 120%
of median income limit. At this time, from information available
from income studies recently completed, c�;e anticipate such income
limits to be approximately $40,695 and $32,556 respectively.
5. Target Areas: Current target areas include census tracts
14, 48, 49, 56, 57, 60, 65, 69, 89.02, 91.01, and 96.03.
In order to provide this financing in your jurisdiction, your city must
formally participate with the County in its program. The formal vehicle for
this participation is the adoption of the attached resolution and cooperation
agreement by your city council.
The County wishes to issue the bonds by the end of March. Therefore, it is
important that the Office of Ccinity Development receive four copies of the
executed cooperation agreement and the adopted resolution 'as soon as possible
but not later than February 28, 1983. If your city does not wish to
participate, we would appreciate a brief letter stating your decision. Please
notify Pam Newcomb at (714) 383-3764 if you have any questions or cannot meet
the above deadline.
Thank you.
AL PUBLIC WORKS AGENCY
O E O TY DECTEI�C7PMENT
DON NEWK:Ck','IE, irector
DN:jj
Enclosures