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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