HomeMy WebLinkAboutCity Council - 5238 RESOLUTION NO. 5238
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE
ISSUANCE OF $20,000,000 PRINCIPAL AMOUNT OF HOME MORTGAGE REVENUE
BONDS, 1983 SERIES A, 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 AUTHORI-
ZING THE EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENTS, DOCU-
MENTS AND ACTIONS
HOME MORTGAGE REVENUE BONDS, 1983 SERIES A
WHEREAS, Chapters 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 and counties
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, 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 connec-
tion therewith;
WHEREAS, to alleviate the shortage of affordable residential housing facili-
ties, and to provide capital for investment in such facilities for low and moderate
income families and persons within the City, the City has developed and determined
to implement a program (the "Program") with respect to (i) the issuance by the
City of its Home Mortgage Revenue Bonds, 1983 Series A (the "Bonds"), and (ii )
the use of the Bond proceeds by the City to purchase without recourse from lend-
ing institutions (the "Lenders") certain home mortgages (the "Home Mortgages") ,
made to finance residential facilities intended for use as the permanent place
of residence by persons of low and moderate income (the "Homes") , which Home
Mortgages are to be originated and serviced by the Lenders pursuant to Home Mort-
gage Purchase Agreements and Servicing Agreements (together the "Agreements");
WHEREAS, the City and the respective developers of the Homes, will enter
into agreements (the "Commitment Contracts") for the purpose of setting forth
among other things, the terms and conditions pursuant to which the developers
will deliver Home Mortgages 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 Home
Mortgages, 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 Home Mortgages and its rights under the Commitment Contracts
and the Agreements;
WHEREAS, Stone & Youngberg (the "Underwriters") have caused a Preliminary
Official Statement, dated February 24t 1983, relating to the Bonds, to be sub-
mitted to the City for review by the City with the aid of its staff and for
approval for distribution to prospective purchasers of the Bonds; and
WHEREAS, the Underwriters have submitted an agreement for the purchase of
such Bonds (the "Purchase Agreement") and it is desirable that the Bonds be sold
at this time only, however, on the terms and conditions hereinafter provided;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON
BEACH, as follows:
1. The City of Huntington Beach Home Mortgage Revenue Bonds, 1983 Series
A, in a principal amount of $20,000,000, are hereby authorized to be issued pur-
suant to a Trust Indenture dated as of the date of the Bonds, in form substantially
as submitted to the City at this meeting, which Trust Indenture is hereby approved
and authorized and directed to be executed by the City Administrator of the City
on behalf of the City and his signature thereto to be attested by the City Clerk
of the City who shall affix thereto the official seal of the City.
2. The Preliminary Official Statement, dated February '24, 1983, relating
to the Bonds, substantially in the form presented to the City at this meeting, is
hereby approved as distributed to investment banking firms, banking institutions
and other prospectivepurchasers of the Bonds and the City Administrator of the
City shall cause its execution, and the execution of a Final Official Statement
relating to the Bonds, together with such amendments and supplements thereto 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 the $20,000,000 principal amount
of City of Huntington Beach Home Mortgage Revenue Bonds, 1983 Series A, in the form
submitted to the City at this meeting is hereby approved and the City Administrator
of the City is authorized and directed to execute the Purchase Agreement on behalf
of the City, provided that all of the following conditions are met:
(a) The Purchasers agree to purchase not more than $20,000,000 or
less than $15,000,000 of the Bonds;
li b The purchase rice of the Bonds shall be not less than ninety six
( ) P P
and one-half percent (96.5%) of the principal amount of the Bonds;
(c) The annual interest rate for the Term Bonds described in the Pre-
liminary Official Statement shall not exceed:
Bonds maturing March 1, 1998 . . . . . 9.750%
Bonds maturing March 1, 2008 . . . . . . . 9.875%, and
Bonds maturing March 1, 2014 . . . . . . . . . . 10.000%;
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provided that the Purchasers may make provision 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 pursuant to the foregoing annual interest
rates; and
(d) The annual interest rate on Mortgage Loans to be purchased with
the proceeds of the Bonds shall not exceed 9.95% per annum.
4. The Commitment Contract (and Reservation of Funds) with developers
proposing to participate in the City's Program, the Home Mortgage Purchase Agree-
ments and the Servicing Agreements to be entered into by and between the City
with Lenders proposing to participate in the City's Program are hereby approved
in substantially the forms presented at this meeting and the City Administrator
of the City is authorized and directed to execute the foregoing on behalf of
the City with such amendments and supplements thereto as shall cause the fore-
going to conform to the requirement 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 execution of the Purchase Contract, the Mayor, the City Ad-
ministrator, the City Clerk and the City Treasurer 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 Home Mortgages, a compliance agreement with a private
mortgage insurer for the Program and other documents, including, but not limited
to, those described in the Purchase Agreement and Section 211 of the Trust Inden-
ture, 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.
PASSED AND APPROVED this 28TH day of February 1983.
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: INITIATED AND APPROVED AS TO CONTENT:
City Attorney Director, Business & Industrial Enterprise
APPROVED:
City Administrator
Res. No. 5238
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Cldrk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of more than a majority of all the members of said City Council
at a regular Adjourned meeting thereof held on the 28th day
of February , 19 83 by the following vote:
AYES: Councilmen:
Pattinson, MacAllister, Mandic, Finley, Bailey, Kelly
NOES: Councilmen:
None
ABSENT: Councilmen:
None
NOT VOTING: Thomas
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California