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HomeMy WebLinkAboutCity Council - 5266 RESOLUTION NO. 5266 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH STATING ITS INTENTION TO ISSUE MORTGAGE REVENUE BONDS WHEREAS, the Legislature of the State of California has authorized cities and redevelopment agencies to make long-term, low-interest loans through qualified mortgage lenders to finance residential construction, rehabilitation, and resale of existing housing stock within the local jurisdiction; and The Legislature, in Health and Safety Code Sections 52000 et seq. , has esta- blished parameters by which a City may issue mortgage bonds for the purpose of financing such construction, rehabilitation and resale; and The City of Huntington Beach (the "CITY") believes that it is in its best interest to utilize mortgage revenue bonds to increase the supply of housing in Huntington Beach; and Expanding housing opportunities through the issuance of mortgage revenue bonds is a valid public purpose; and In order to issue the bonds successfully, the City requires the advice of qualified investment bankers and bond counsel , NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that: 1. It hereby approves and authorizes the issuance of mortgage revenue bonds, pursuant to Health and Safety Code Sections 52000 et seq. , in an amount not to exceed $20,000,000, and hereby applies to the Mortgage Bond Allocation Committee for an entitlement allocation ._to sell such bonds. 2. The bonds will be payable solely out of revenues and other amounts derived by the City or its Redevelopment Agency (the "AGENCY") from mortgage loans, the funds in the debt service reserve fund, and other funds and accounts created by the trust indenture establishing the program and the earnings thereon. The bonds will not be a general or moral obligation of the City or Agency within the meaning of any con- stitutional or statutory provisions, nor a charge against its general credit. 3. Neither the members of the City Council , Redevelopment Agency, nor any official or employee of the City, nor any person executing the bonds issued under the program, shall be liable personally on the bonds or be subject to any personal liability of accountability by reason of the issuance thereof. 4. It is hereby found and determined that the issuance of such bonds is a valid and lawful public purpose. 5. Bond proceeds shall be used for either, one, two, or all of the following purposes: sale of newly constructed residences, sale of existing homes, or sub- stantial rehabilitation of existing residences. I 6. The City Administrator will cause to be delivered to the Mortgage Bond Allocation Committee a certified copy of this resolution, together with a certificate signed by the City Administrator, substantially to the effect that the City has on deposit in an interest-bearing trust account an amount which equals one-half of one percent of the principal amount of the bonds re- quested for allocation, which amount shall be subject to forfeiture and appli- cation by the City to assist housing for persons of low and moderate income within the City upon the failure to sell any or only a portion of the bonds, all in accordance with the Costa-Marks Housing Bond Allocation Act of 1981, as amended. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of May 1983. ATTEST: 1ty Clerk Major INITIATED AND APPROVED: APPROVED AS TO FORM: I Director, Business & Industrial City Attorney Enterprise I APPROVED: City Administra or Res. No. 5266 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk 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 meeting thereof held on the 16th day of May 19 g3 , by the following vote: AYES: Councilmen: Pattinson, Thomas, Kelly, MacAllister, Bailey, Mandic NOES: Councilmen: None ABSENT: Councilmen: Finley �*- jr • V/ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California