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HomeMy WebLinkAboutCity Council - 5416 RESOLUTION NO. 5416 A RESOLUTION OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE ISSUANCE OF $20,000,000 PRINCIPAL AMOUNT OF HOME MORTAGE REVENUE BONDS 1984 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 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 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; Pursuant to the Act and Ordinance No. 2612, adopted March 7 , 1983, 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 be entering into any agreements in connection therewith; 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 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, 1984 series A, (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 "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 1 . originated and serviced by the Lenders pursuant to Home Mortgage Purchase Agreements and Servicing Agreements (together the "Agreements" ) ; The City and the respective developers of the Homes have entered into agreements (the "Committment 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 i of the City, and the City will reserve proceeds of the Bonds to provide funds for such purpose; 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; Stone & Youngberg, the Underwriter for the Program and the Bonds, has caused a Preliminary Official Statement, date July 18 , 1984, relating to the Bonds , to be submitted to the City for its review and approval for distribution to prospective purchasers of the Bonds; 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 only, however, on the terms and conditions hereinafter provided; and Preliminary forms of the Trust Indenture, the Agreements, the Commitment Contracts, and the other necessary implementing documents have been presented to and reviewed by the Council , with the aid of its staff, and such documents may now be conformed to the terms and requirements of the Purchase Contract the and the Official Statement and be approved for execution in final form; 2 . NOW, THEREFORE, IT IS ORDERED BY THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH as follows: The City of Huntington Beach, California, Home Mortgage Revenue Bonds , 1984 Series A, 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 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. The Mayor of the City shall cause the execution of a Final Official Statement relating to the Bonds , setting forth such amendments and supplements to the Preliminary Official Statement, dated July 18, 1984, 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 . The Purchase Agreement for purchase of $20,000,000 principal amount of City of Huntington Beach Home Mortgage Revenue Bonds , 1984, Series A, in the form submitted to the City at this meeting is hereby approved, and the City Administrator of the City and the City Attorney are authorized and directed to execute the Purchase Agreement on behalf of the City, provided that all of the following conditions are met: (a) The purchase price of the Bonds shall be not less than ninety seven percent (97% ) of the principal amount of the Bonds; (b) The Home Mortgage Revenue Bond interest rate for any maturity shall not exceed eleven percent (11%) ; (c) The Home Mortgage interest rate shall not exceed eleven point forty five percent (11.45% ) ; provided that the Underwriters may make provision for adjustment of maturing amounts of principal and the maturity 3 . dates thereof in a manner which does not increase the effective interest rate of all Bonds above the eleven percent (11%) annual interest rate limitation or the 11.45% annual Home Mortgage interest rate limitation above set forth. The City Administrator and the City Attorney shall insert and initial the final interest rate and the final purchase price in the space provided next to the signature lines on the execution page of the Purchase Contract. The Commitment Contract (and Reservation of Funds) with developers proposing to participate in the City's Program, the Home Mortgage Purchase Agreements, 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 foregoing to conform to the requirement of the City's Program. 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 Administrator, the City Clerk, the City Attorney, 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 Indenture, which they, or any of them, 4. 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 . 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 Huntington Beach held on the 16th day of July, 1984, the foll wing vote: r ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIE APPROV i y Administrator 5. Res. No. 5416 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) as: CITY OF HUNTINGTON BEACH ) 1, 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 16 th day of July 19 84 by the following vote: AYES: Councilmen: Thomas, MacAllister, Kelly, Finley, Mandic NOES: Councilmen: None ABSENT: Councilmen: Pattinson, Bailey City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California