HomeMy WebLinkAboutWILSON, MORTON, ASSAF & McELLIGOTT - 1980-10-20STAT
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FUND
P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 941 1
October G, 1982
CERTIFICATE OF WORKER'S COMPENSATION INSURANCE
POLICY NUM DER'
.._4.10_214--82.
CERTIFICATE EXPIRES 10-1-83
City of luntington
Risk Manager
P 0 Box 711
Huntington Beach,
Bead,
CA 92648
This is to certify that we have issued a valid Worker's Compensation insurance policy in a form approved by the California
Insurance Commissioner to the employer named belo•,r: for the policy period indicated.
This policy Is not subject to cancellation by the Fund except upon ten days' advance ,yritten notice to the employer.
We will also give you TEN days' advance notice should this policy be cancelled prior to its rnrrral expiration
This certificate of insurance Is not an Insurance policy and does not aTienq, catend or alter the cavrr,agp afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of ant conlract of other document pith
respect to which this certificate cl inswance ma; be issued or +ray, verfain. the insuranCe afforded by the policies
described herein is subject to all the terms. exctusions and conditions of sucn policies
10-i-82/83 ___� C&x
EMPLOYER �t.•' . PRESIDENT
Wilson Morton Assaf E, McElligotl:.`t' ti�N�:
630 N San :Mateo Dr. S'•� '�i
San Mateo, CA 94401
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5fir ronv .`$VG MEY to fV 1i
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COMPENSATION
INSUPANCE
FUND
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P 0..4OX H07. SA F it A14CISCO
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CAllf Ot{NIA 9-1101
Se,pta ker 25, 1981
CERTIFICATE OF WORKERS' COMPENSATION INSURANCE
l"LICY NUMHErr
CERliFICATE EXPIRES
City of Huntington Beach
P.O. IK& 711
Huhtingten Beach, C7-. 92648
Attn: Risk Mamger
410214-81
10-1-81/82
This is to certify that we have issued a valid WorEers' Umilwnsation imurance policy in a form approved by the California
Insurance Commissioner to the employer named d►clow fur the policy per-od indicated
This policy is not subject to cancellation by the Fund except upon ten days' advance written notice to the ernpinyet
%Ve will also give you TEN days' advance nohr.e should this policy be cancelled prior to its normal expiration
This certificate of insurance is not an insuranr:e.• pi•�hcy ancd dices not amend, e■teri;; of alter the cove+ale afforder. ay the
policies listed herein Notwithstandirx) any re•iluirement, term, nr condition of any contract or other document with
respect to which this certificate of insurance may bra issued or may pettam, the insurance afforded by the lw!ii.c-t
described herein is Subject !o all the terms, exclusions and cunt tcons of Bach policies
C- f•..3�.a-(�C t
EMPLOYER 'PRE SIt7E NT
wilaan Murton �t%ssaf
630 N. San Mateo Dr.
Sari Mateo, CA 94401
SCrr r'onM 26.'A lat:v I? en1
6 t,V: Elligott
CONTRACT BY AND BETWEEN THE
CITY OF HUNTINGTON BEACH AND
WILSON, IdORTON, ASSAF & McELLIGOTT
FOR BOND C014SULTAIIT SERVICES
THIS AGREEMENT is entered into the JO AL, day
of re� 1 —, 1980, by and between the CITY OF
HUIITI14GTON BEACH, a municipal corporation of the State of
California (the "City") and WILSON, 1;ORTON1, ASSAF & ,.icELLIGOTT,
Attorneys at Law (the "Consultant").
R E C I T A L S:
WHEREAS, the City intencis to issue tay-exempt
t,.,.nicipal bonds pursuant to Di visic.r. -)I, Part 5 of the California
Health and Safety Code, commiencini wl to Sect ion ::2000, for the
purpose of providing; lower lrit:erest. rate Mor•t.:.;es on residential
structures ' ! Fun., :: H ach (the "or,o iect") . located in the �i � of 'r: i ��-tc�n e � � ,
and
> >n r- , , r..
a orc er to L'.�. wo:':t? i., a�, .. ;� .:...�,� �.i,., . W , . _ .� . e��.. i es . he
advice and assi5'l-ance oi* qual 1 f led Woad, co-_msC'I ; and
Cit:y has determined that. C nsu1tant is c;ualit led by
training; and experience to perforri the services of bond counsel
and Ccnsultant- is willinG tc provide such services;
follows:
NOW, THEREFORE, Tr{E PARTIEES HERETO DO ► UTUALLY AGREE as
1. CONSULTANT RESPOISIBILITIES.
Consultant shall do, carry out, and perform all of the
following services as are necessary for the issuance of bonds for
CM: z m 1.
.10/29/8O
n
•
the Project:
I �J
A. Preparation of all legal proceedings for the authori-
zation, issuance and sale of any bonds; including preparation
of the re-enlution authorizing the issuance of bonds, fixing; the
date, denominations, numbers, maturities and interest rates,
providing the form of the bonds and authorizing their execution,
authentication and registration; certifying the terms and condi-
tions upon which the same are to be issued; providing for the
setting up of special funds for disposition of proceeds of the
sale of the bonds, including, creation of a reserve fund, if any,
and such other funds as may be advisable, and providing all
other details in connection th.!rew.itli, including special ck-)ve-
pants and clauses for the protection of the interest of the bond-
holders ; providing remedies of the bondholders and appropriate
provisions for amendments of the bones and the resolut ions;
preparation on :he I'esolutici: i eclari''it.,, tali' iliteIlti 7n cf' '[:he
City to sell all or, al,y part of the autiicri: ed :issuance; Torepara-
tion of the resolution awal•dinr bonds ~o the buyer and filing
the defsnitive interest rates; prej-,aI•ation o:' all other, proceed-
ings incidental to or in connection with the issuance anri sale
of the bonds; including the examination of other appropriate
contract or, commitments of the City, and includle"10.; any refunding
features; preparation of the Loan Agreements as required; parti-
cipate in negotiations with the selected lending institutions;
attend all City Council meetings dealing with the Project :.nd
other meetings deemed by Consultant to be necessary for the
2.
success of the Project.
B. The rendering; of the usual final opinion on the
validity of the bonds.
C. Such other and further services as are normally
performed by bond counsel.
D. Consultant will not be responsible for the prevara--
Lion or, content of the official statement or memorandum of sale
to be prepareL by the bond underwriter.
2. COIZPENSAT.1014.
For the services of Col;sul;:ant, City will parr the
fol.lU;:ins fee: 10,000 flat fee per fir:ancink,, plus ."I.00 per
$1, 000. 00 of the bonds issued acid s:.,ld up to a principal amount
of a20,000,000, plus a0.65 per, Zi,l000.00 of ':he next!10,000,C00
principal arr:ount of bonds Issued and sold, plus per
$1,000.00 of the next Z-:0,000,0Cn prt.zclpa' amount of bonds
Issued and sold, plus per �1,1000.00 o: any 1 amount
of bonds issued any i solid at)(� :,e Z40,000,000. Pay ent o,.' the fee
to Consultant shall bt, tidae anon :.he lssila; ct-, cf he bonds and
the _liver; of the proceeds ther'eo:' the i;it;'.
in aad'tion c `h e a') ov n h e d :.tee, Cit, shall :.z1so
reimburse Ce:,sultant for out -car' -pocket •-xpenses inc::rred by
Consultan: in the performance o' the services described in this
Agreement, in an amount not to exceed $1,000.00. Consultant
shall present to the City vouchers for such expenses. However,
City ,;hall not be responsible for the following; expenses of
Consultant: (1) Long distance phone calls made by Consultant;
3•
(2) in -state travel 1.,xpenses incurred by Consultant; and
(3) reproduction cf documents if. such -eproducti.on is for the
office use of the Consultant.
3. LEGAL REPRESENTATION.
The services to be provided by Consultant pursuant to
Section I do not include representation of the City of Huntington
Beach in any legal action challenging the validity of the trans-
action; provided, however, that Consultant will provide such
services on the basis of its current hourly rates at the request
of the City.
4. ADDITIONAL SERVICES.
In the event Consultant is requested by City to perform
additional services not set for•;h in Section I of this Agreement,
such additional services shall be performed for additional compen-
sation as set forth above as specifically authari..ed in w:ViLing
by the City.
�. E .PED1T1,QUS GOI�IPi, '±'IOI:.
The services of Consultant aIe i.o Uor;mence uporl the
execution of this Agreement by theme Cit;; and shall be undertal•eri
and completed in such sequence as to assure their expeditious
completion in light of the purrposes of this Agreyerrient.
6. CITY RESPONSIBIL[TY.
City shall cooperate with Consultant and shall furnish
Consultant with certified copies of all proceedings taken by the
City Council or any of 1+1-s commissions, or others deemed necessary
by Consultant in order to render an opinion upon the validity of
such proceedings. City shall be responsible ror all costs and
expenses incurred by it incident to the actual deliverance and
delivery of bonds, including the cost and expense of preparing
certified copies of proceedings required by Consultant in con-
nection with the Issuance of the bonds, the cost of preparing
the bonds for execution and delivery, all printing costs and
publication costs, and any other expenses incurred by City in
connection with the issuance of the bonds, including fees and
expenses of £inancia? consul tant s or bond underwriter, employed
by the City.
During the performance- ,r) ' this A. ,ree:-lent, Consul'.:a11%
further agrees as follows:
Consultant will no.. at;i ,st any employee
or applicant for er:lployrrent becaust= r)f race, ;` )lo:', re-ligion, sex,
or national origin. Consultant wi 11 take ac Iarl to
insure that; applicants are employed and that- employees are treated
duI'ing; employ'chent wit hol2ti. h'd.gaI'd t.c their Vac,.?, color, reliE,ion,
s.ex, or national origin. Such pact len shall include, but not be
limited to the follow n : Employment, upgrading, de:aot ion,
transfer, recruitment , or recruit -meth; advert ising , la;; of*'k or
termination, rates of pay or other forms of compensation, and
selection for training;,, including-, apprenticeship. Consultant
agrees to post in conspicuous places available to employees and
applicants for employment notices to be provided by the City
setting forth the provisions of this non--discriraination clause.
5.
8. TERMINATION.
This Agreement may be terminated by City at any time
by giving written notice to Consultant with or without cause.
In the event of such termination by City, Consultant shall be
reimbursed for any and all out--of--pocket expenses incurred by
Consultant in the performance of the services herein described.
9. WORKERS' COMPENSATION.
Consultant shall comply with all of the provisions of
the Workers' Compensation Insurance and Safety Facts of the State
of California, the applicable provisions of Division 4 and 5 of
the California Labor Code and all amendments thereto; and all
similar State or Federal acts or laws applicable. Consultant
shall furnish to City a certificate of Workers' Compensation
insurance. The insures* shall not cancel or codify the policy
without thirty ( 0) days' prior tti•ritten notice to the City. In
the alternative, the Consultant may show prod; of a certificate
of consent, to self --insure by "ire Director of Industrial Relations
according to California .,abor Code 3ect.lon 3300.
10. INDEMNIFI CA`I MN, DEF E1oSE, HOLD HARIMLESS .
Consultant shall defend, indemnify any: hold harmless
City, its officers, agents and employees, from and against any
and all liability, judgments, damages, costs, losses, claims,
including Workers' Compensation claims, and expenses resulting,
from'r ^� Consultant's negligence or other tortieus
h.
Acting City Adm nistr'ator
conduct in the per£crmance of this Agreement.
IN WITNESS WHEREOF, the City and Consultant have
executed this Agreement as of the date first above written.
ATTEST:
t y
REVIEWED AND APPROVED: ..ILSON, .iOR1ON, ASSAr (yF McELL..GOTT,
Attorneys at -1,aw
-Partner
'tConf-u1 t-an --
CITY OF HUNTINGTON BEACH,
a municipal corporation
By
Mayor
APPROVED AS TO FORIM:
7•
City Attorney
5;7 L'5l1: 7.2Ott
1 NVITATI014 TO
LENIDING INS'PITuT,IONS
TO PARTICIPA'IE IN THE'
CITY OF HUNTTNGTON BEACH
HOME F i NAIJC I NG PROGRAM
The City, of Huntington Beach (the "City") is planning to issue
its 1980 home Mortgage Revenue Bonds ( the "Bonds") and to use the
proceeds to purchase home mortgages (the "Home Mortgages") on newly
constructed, existing and, in designated rehabilitation and renewal
areas, substantially t_ehabilitated reside-nces located within the City.
The home Mortgages will be purchased from eligible lending institut-.)ns
(the "Participants") which desire to participate in the: Program anr'.
which transact business in Huntington Beach (other than in conr._:ction
with the Program).
THE PROGRAM
The Home Mortgages shall he marle :?v Participants to eligible
persons and families of low and moderate income for the purposes of
financing the Purchase of ne:rl.y contructed and existinq owner -occupied,
single dwelling unit residential. housing (includinca condominiums) and
the refinancing of existing rnortyage loans in canes in which
Substantial Rehabilitation (i . e. , where the co.,t , of rehabil it:rtior.
equal or exceed 20Z of the after -rehabilitation vdltrr� of the : truc'-ure)
of such housing units is to b,, undertaken in connection with the home
Mortgages. All Home Mor.tgacye, are to be originated by Participants in
accordance with the terms and conditions of the Origination, Service
and Administration Agreewent (the_ "Agrr'ement") to bf, executed by each
Participant substantially in the form enclosed herewith. Capitalized
Words in this Invitation which are not otherwise tierinerl herein shall
have the same meanings as set forth in the Agreement.
Pursuant to the requirernents of. Part 5 of Division 31
(commencing with Section 52000) of the Health and Safety Code of
California (the "Act") , the City willadopt rules and regulations
estabilshing criteria for the cjualif Lcat ion of Mort(agors under the
Program. A copy of the Ci ty's proposed rules and regulations is
enclosed herewith. Such proposed rules and regulations are subject to
change. To be eligible for a IEorne Mortgage under the Act, a Mortgagor
must satisfy, among other requirements, the income limitations set
forth in the Act. The maximum household income of a Mortgagor may not
exceed (i) 1.20% of U.-c Orange County -Wide Median household Income with
respect to Home Mortyages relating to newly constructed Homes or home
with Substantial Rehabilitation and (ii) County -tide Median household
Income with respect: to Home Mortgages relating to Existing homes ( i.e. ,
where the purchaser will not be the i.itst occupant and where there has
been no rehabilitation under the Program) provided that at least 50% of
the aggregate principal amount of home Mortgages relating to Existing
Homes sold by Participant as of any date shall be for Mortgagors whose
income does not exceed 80% of.County-Wide Median household Income.
County -Wide Median Household Income is currently estimated to be
$26,200. No more.than 15% of the aggregate principal amount of Home
Mortgages to be sold by Participant as of any date may be with.respect
to Existing 'homes.
The interest rate on the home Mortgage will depend on the
interest rate payable on the Bonds and will. be set at the time of tr►L
sale of the Bonds. If: the final interest rate on the home Mortgages
exceeds 12-3f410' per annum, the Program will not proceed.
The program is subject to review and approval by the housing
Bond Credit Committee of the State of California and by a bond rating
agency.
ELIGIBILITY AND SELECTION CRITERIA
Pursuant to the requirements of the Act, the City has adopted
Rules and Regulations establishing eligibility an(] selection criteria
for Participants in the 11 ograin. A copy of such Rulris and Regulations
is enclosed herewith. Among the requirements established are that
Participants must commit to originating and servicing Home Mortgages in
an original. aggregate principal amount of not less than $10,000,000,
and that Participants mast: maintain an Errors and 0imission Insurance
Policy, a Fidelity Bond Lnd a Mortgage Servicer Performance Eond, all
as more specifically set forth in the Af,-jrvemen; . The Rules and
Regulations provide that Participants will lie selectod to participate
in the Program on the basis of the minimtim standards set forth in such
Rules and Regulations, their demonstrated ability to originate and
service conventional single family mortmige loans an(] their ultimate
acceptability to the underwriter of the Bonds and that preference will
be given to lending institutions which have participated in other
tax-ex"mpt mortgage revenue hond programs.
THE AGREEMENT
All home Mortgages mu�*.t be originated in accordance with the
terms and conditions of the Agreement which incorporates the minimum
underwriting standard!; of the Federal. !tome Loan MorLaage Corporation
and the Federal National Mortgage Association unless otherwise
specifically provided therein. Each Participant must service all Home
Mortgages which it sells to the City in accordance with the provisions
of the Agreement.
THE AGREEMENT SHOULD 13I, ifE:IIU CAt EOPULLY IN ITS ENTIRETY. Your
attention is directed particularly to the following provisions of the
Agree-nent: Section 81 regar.dina the originaLion of the home Mortgages;
Section 9, regarding the sale of the .tome Mor,;gaqus to
, the trustee for the Bondholders ( the "T,,ustee") and
including certain representations, warranties and covenants of the
Participant with respect to each home Mortgages; Section 10, regarding
the repurchase of dome Mortgages by each Participant from the Trustee
in the event that the documentation relating to a }tome Mortgage is
defective; Section 11, regarding the servicing duties of the
Participants with respect to the dome Mortgages; and Exhibit G,
regarding the determination of a Mortgagor's household income.
Administration. 'rile Program will be administered
by as Administrator (the "Administrator") in
accordance with the provisions of the Agreemr-nt. The Administrator
will notify lending institutions of their acceptance as Participants in
the Program, will notify Participants of any changes in County -Wide
!Median Vousel,old Income, will assist the Trustee in making any
reallocp Lion of HomoL Mortgage funds and will review and evaluate
Participants' reports and performance.
Home Mortgages. home Mortgages must ineet the foll.owina
conditions, among others:
1 . 'rho Home ttorLgages mast ho in do with respect to single
dwelling unit, owner -occupied Hotaes ,in(] to mortrjagors whose maximum
household income determined ..s set forth on Fxhii)it G to Lhe Agreement
does not exceed (i) aiLh resj)(.--c:t to nearly constructed Hanes or homes
With Scibatantial Rehabilitation, 12.t',9, of C0unt•,►-*4ide ;Ic-than Household
Income ($31,440) , and (ii) with re::pect to Existing Ho;aes, County -hide
Median Household income (S216, 200) provided t hat 5()'� of the aggregate
principal amount of Homf.! sold L-y o Participant as of any date
shall be for i•tortgagors who.ne maximum household incur::+e determined as
set forth on Exhibit G to the Ayreeril nt. does not exceed 80% of
Cot' .ty-Wide Median Household Income (N 20, O(0) .
2.. The dome Mort(jages must be made (i) for the purpo;;e of
financina newly constructed Homes or i;xistiny Homes located within the
City or (ii) for the purpose of reinancinq an vyistiny mortgage loar
in the case of a home with litiostanti<al Rehabi 1 iLtttion, which home is
situated in an area or neighborhood in which ri housinzl rehabilitation
or code enforcement program is heing conducted, a n��ic;hhorhood
preservation area or conce_ntrater_l rehabilitation area designated
pursuant to Division 31 of. the California Health and Safety Code, an
area for which federal f:undr. are being made available. or a renewal area
or residential rehabilitation area as specified in tale Act, and located
within thc- City.
-3-
3. The maximum amount of: the llome Mortgage may not exceed 95%
of the appraised value or the purchase price of the property to be
..mortgaged, whichever is less.
4. All home Mortgages are required to be insured under a policy
of Private Mortgage Guaranty Insurance acceptable to the Administrator.
Home Mortgages may not be insured by the Federal Housing Administration
or guaranteed by the Veterans Administration.
5. All Home Mortgages must have a term of not- greater than 30
years, must :bear interest at the home Mortgage Rate, an•l, except in the
case of Homes with Substantial Rehabilitation, must be made for the
purpose of, purchasing the property and not for the purpose of
refinancing, and must have substantially level. payments.
6. Borne Mortc ages will be purchased by the Trustee at a
purchase price of 1.00% of. the Outstanding Principal Amount thereof,
plus accrued interest.
7. No more than l5u of the ag(ji-egate principal amount of all
Home Mortgages sold b! a Participant to Trustee as of any (late may be
with respect to Kxistiny tiomes.
A1.1 fund.5 i-Wailahle to Participant for the purchase of Home
Mortgages must be committed pursuant to a Cormmitm(,nt Latter to the
Mortgagor on or before a date twelve months fro., -,I tho date of the
issuance of the Bonds (currently scheduled for Uecember 23 , 1990) .
Commitment. Fees. Each I'art-icipant is rc!cluirfd to del.iv—r P.
Commitment Fee in an amount not loss than 3-1./2% and not greater than
4-1/2% of the Florae t.lort(jage fund.s, allocated to such Participant with
respect Lo Existinq llom.!s land Homes Frith Suhstantial Rehabilitation.
Each Developer constructing Marne!; to be SLJIIJ(rct. to Home Mortgages is
required to deliver a Developer Commitment Fee in an amount not less
than 3--1/2% and not (greater than 4-1./2L of the Home tMortyage funds
allocated to Participant with respect to such nowly constructed Homes.
The Commitment Fee and the Developer Commitment Fee shall be delivered
to Administrator upon execution of the Agreement and shall be a
certified or cashier's check drawn in favor of. 'Trustee or an
irrevocable letter of credit drawn in favor of Trustee upon a bank
rated IAA (unless the rating it; waived in writincl by the Administrator)
payable at any time up to 1B months after the issuance of the Bonds.
The Commitment Fee and the Developer Commitment Fee will, be held lay a
custodian in accordance with the provisions of Section 7(c) of the
Agreement. Participants will be notified of the exact amount of such
fees at such time as they are notified of the acceptance of their
application.
0
_4-
If a lending instituion or a developer delivering homes to such
lending institution proposes to deliver a letter of credit pursuant to
the requirements of Section 7(c) of the Agreement, then at the time
such lending institution submits Us application to participate in the
Program, such lending institution shall deliver to Administrator a
letter from each bank -proposing to issue a letter of credit for such
lending institution or such developer stating that such bank is
prepared to issue upon five clays' notice a letter of credit as required
by Section 7(c) of the Agreement.
Participants will also be required to deposit one-half (i.e.,
one percent) of: the origination frees which they receive from a
Mortgagor or Developer with a custodian to he held by such custodian,
pursuant to the provisions of Section 7(c) of: the Agreement.
Participants Cornpenwition. Each Participant will be compensated
for the origination of home Mortgages through the payment- of an
origination fee of 2% of the original Outstanding Principal Amount of
the Home Mortgage by the Mortgagor or by the Developer of the property
to be morgaged and through payment or re imbur serncnt of closing e:.:penses
pursuant to the Agreement. Each Participant will also collect a
monthly servicing fee equal. to 1/12 of. 3/8 of 1% of. the Outstanding
Principal Amount of each home Mortgage which is being serviced and may
retain late payment charges anti assurnl)tion fees, all as and to the
extent set forth in the Agreement.
Ilea 1..l_ocation. Six months after the del.ivc-ry of the Bonds
(currently scheduled for Dccvrriber 23 , 1980) , Lhe Administrator and the
Trustee have the right to r(:-allocate to another Participant any funds
allocated initially to it -ar. t icipant for the f)urchase of home Mortgages
from such Participant: during such six ruonL1r s that has riot been
committed by such Participant: to make home MorLgage:; pursuant to
Commitment Letters with Mor.t(ac;ors. Additionally, the Administrator
and the Trustee may reallocate all funds allocated to a Participant
that are not committed by such 11articil7ant within nine months after the
delivery of the Bonds pursuant: to Commitment: Fee or Developer
Commitment Fee will be returned to a Participant or Developer as a
result: of any such reallocation of Home Mortgage funds, and at the time
of such reallocation, Administrator may require any Participant or
Developer receiving additional (tome Mortgage funds to pay an additional
Commitment Fee or Developer Cotntni tment Fee.
PROCEDURE FOR PI1RTICIPATTUG IN THE PROGf A.M
If you wish to participate in the Program, please complete and
execute two copies of the enclosed Application to Originate, Sell and
Service Home Mortgages (the "Application") and return both copies to
Stephen V. Kohler, Community Development, City of Huntington Beach,
: City Hall, 2000 Main Street, P. O. Box 190, Huntington Beach,
-5-
California 92648, to be received on or before 5:00 P.M. on Oeto'ber 30,
1980, together with (i) an app) ication fee ( the "Program Application
Fee") in the amount of 1/10 of 1% of the total aggregate principal
amount of Home t4ortgages offered to be originated for sale in the
Application and (ii) if letters of credit are to be delivered pursuant
to Section 7(c) of the Agreement, letters from each bank proposing to
issue such letters of: credit, stating that such bank is prepared to
issue a letter of credit in accordance with the provisions of the
Agreement upon five clays' notice. The Program Application Fee should
be paid by a certified or cashier's check payable to "The City,of
Huntington Beach."
The Program Application Fee i, nonrefundable except (i) if the
Bonds are not issued by the City, the Program Application Fee will be
refunded without interest and (ii) to the extent that the Application
is not accepted in full, the Program Application Fee will he refunded
without interest Dn a pro rata basis as soon as practicable after the
execution of the Bond purchase agreement.: between the City and the
underwriters of the Bonds (tile "Bond Purchase Agreement") .
If the City determine:, Lhat it has received offers to sell more
Home Mortgages than it is practical for the City, to purchase, it will
reduce the amount of some or all of. the Applications to an lggregate
amount it deems practical. Reductions will ► e hased on a combination
of evaluation of the Applications by they Administrator, pro rata
reduction and in accordance, with the fallowing priorities of the City:
first, new construction (lone Mortgagv s-�cond, dome 1-11ortgage s for
Substantial Rehabilitation; and la.stly, Home ►•Sort.ga(l'>:, for t.xist.ing
Homes. In addition, preference will he caiv, n to llarticip:ants
committing themselves to early delivery of Homo Mortgages.
Upon your acceptance as a P arLicip ant in the Program, you will
receive a Notification of Acceptance (tile "Acceptance") and copies of
the final. Agreement, two of which mu:yL be executed and returned by you
upon five days' notice, to the Administrator, toyr.ther with (i) the
Commitment Fee and the Developer Commitmer t, Fee required by Section
7(c) of the Agreement, and (ii) an opinion of counsel at, required by
Section 3(1) of the Agreement.
As soon as practicable after eXeCLIt_i011 Of the Bond Purchase
Agreement (currently scheduled for December 2, 1.980) , the Administrator
will notify PtarLicipants of the Home Mortgk-i(jr_ Hate and Participants may
commence receiving and processing Home Mortcja�le Applications, subject
in any event to delivery of the Bonds by the City. Upon clel i.very oL
the E:onds (currently scheduled for December 18, 1.980) , the proceeds of
the Bonds will he available to '.1rust.ee for purchase of the }tome
Mortgages as provided in the Acceptance.
-G-
THE APPLICA'PION IS IRREVOCAI3I,11. UNTIL DI::CI:MBER �18, 1980. UPON
'TIiE MAILING OF THE ACCEPTANCE, THE APPLICATION SHAW, BECOMF A C:ONTRA"T
.BINDING UPON THE PARTICIPANTe SUBJECT ONLY TO THE DI.LIVERY OF AND
PAYMENT FOR THE BONDS. EXCEPT AS EXPRESSLY INDICATED IIEREItd OR IN THE
.AGREEMENT, 140 VARIATION IN OR MODIFICATION OF THE TERI-IS AND C01-1DI'I'IONS
OF THIS 114VITATION OR OF THE AGREF.MEWP WILL BEA MADIO WITH RESPECT TO ANY
LENDING INSTITUTION'S PAIZTICIPATIO14 IN THE PROGRAM.
Any questions with respect to the foregoing terms of the Program
should he directed . to and extra copies of any of the documents referred
,to herein and of the proposed resolution authorizing issuance of the
Bonds by the City may rae obtained from Stephen V. Kohler, community
Development, City of IiunL•ingtor. Beach, City Hall., P. 0. Box 190,
Huntington Beach, California 92648, Tel— No. (71.4) 536-5542, Stephen
Kark, Birr, Wilson Fr Co., 155 Sansome Street, S-in Francisco,
California 9,I111, Tel. No. (415) 983-793,I, or. Charl.e-s Terranella,
Lehman Bros. Kuhn Loeb, 55 ;dater Street, New York, Ne1-1 York, Tel. 11o.
(212) 5 ,8-2838.
Dated: October 20 , 1980
-7-
THE CITY Of HUNITI I:GTON BEt-.CII
� D
Mayr►r
77
11
r� 1 taA-AI.oa
CITY OF HUNT'INGT'ON BEACH
APPLICATION TO ORIGINATE, SELL AND SI'RVIC:E HOME MORTGAGES
IN ORDER TO BE CONSIDERED, TWO COPIES OF
THIS APPLICATION MUST 13E RECEIVED BY THE
CITY OF HUNTI NGTON BEACH OE -I OR BEFORE•. 5 : 00 P.M.
ON OCTOBVER .30, 1.980, AND ALL INFOriMATION
REQUIRED MUST BE FURNISHED IN FULL.
Stephen V. Kohler
City of. Huntington Beach
Community Development
City Hall - 2000 Main Street
P. 0. Box 190
Huntington Beach, California 92648
Dear Sir:
The undersigned (the "Lending Institution") submits this
application (the "Application") to originate, sell and service home
mortgages pursuant to the City of. Huntington Beach's Invitation to
Lending Institutions to Participate in the City of Huntington Beach
Home Financing Program, dated October 13, 1980 (the "Invitation"), and
in accordance with tale City':: Rules and Regulations adopted by the City
on October 13, 1980 (the "Regulations") and the Origination, Service
and Mministr.ation Agreement, to he entered into among the
City, , as Trustee (the "Trustee"),
as Administrator (the "Administrator") and the undersigned and certain
other lending institutions (the "Agreement"). The Lending Institution
acknowledges receipt of (i) a copy of the Regulations, (i i) the
Invitation, (iii) a copy of the Agreement and (iv) access to such
additional information as has been requested by Lending Institution.
The Lending Institution encloses herewith (i) it, Application
Commitment Fee in an amount equal to 1/1.0 of 1% of the aggregate
principal amount of Home Mlortga�Ies off.ereo to he originated for sale
pursuant to paragraph 1 of this Application and (ii) if applicable,
Letters from the bank- proposing to issue the letters of credit
required by Section 7(c) of the Agreemen::, stating their willingness to
issue such letters of credit in compliance with the Agreement:..
THE: I,1:14DING INSTITUTION UNDERSTANDS THAT, UPON ACCEPTANCE 'jY THE'
CITY PRIOR 1
'O OCT'OBE'll 30, 1980 AS SET PORT11 IN PARAGRAPH S HEARE-07", THIS
APPLIACT'ION SHALL BL:COME A BINDING AGItL•'I•ME:NT OBLIGATING THE LI:NUING.
INSTITUTION TO SELL HOME MORTGAGES `I'l' THE C1111Y ON THE TERMS AND SUBJECT
ONLY TO ISSUANCE AND DELIVERY OF TIFF ►IONDS BY THE CITY AND TO TEIE
CONDITIONS SET FORTES HEREIN, IN THE NOTICE OF ACCEPT'ANC Z AND IN THE
AGREEMENT.
Capitalized terms which are used in this Application shall. have
the same meanings as :et forth in the Invitation and the Agreement,
unless such terms are otherwise defined herein.
1. The Lending Institution hereby applies to originate, sell
and service Home Mortgages in accordance with the terms and. conditions
set forth below, in the Notice of Acceptance and in the Agreement, as
follows:
A Amount, Timing, Type and Location of Home Mortgages Committed By
Lending Institution:
(The following information should be completed for each project with
respect to newly constructed }Homes in the City with respect to Existing
Homes or Homes with Substantial. Rehabilitation. Attach supplemental
sheets in the following form to Application as necessary.)
(1) New Constructed }comes:
Project:
Developers:
Developer's Experience:
Number of Units:
Estimated Sales Price of Units:
Location of Project:
Commitment Schedule*:
Month
November 1.980
December 1980
January 1901.
February 1981
March 1981.
April 1981
May 1981
June 1981
July 1981
Total
Delivery Schedule:
Month
November 1980
December 19BO
-2-
Principal Amount
EL
Principal Amount
1.2
January 1.981
February 1981
March 1981
April 1981
May 1981
June 1981
July 1981
August 1981
September 1981
October 1981
November 1981
December 1981
January 1082
February 1982
Total
(2) Existing home,:
City or Other Location in County:
Number of..Units:
Estimated Sales Price of Units:
Commitment Schedule*:
Month
November 1980
December 1.980
Jantia ry 1.981
February 1.98.1
March 1981
April 1981
1.1 a y 1 !I 8.1
June 1981.
July 1981
Total
Delivery Schedule:
Month
November 1980
December 1980
January 198.1.
February 1981
March 1981
April 19111
May 1981
s
I'rinqiL:)al Amount
»
I,r incipal Amount
June 1981
July 1981
August 1981
September 1981.
October 1981.
November 1981
December 1981
January 1982
February 1982
`total �
(3) homes With Sub-stantial Rehabilitation:
City of Other Location in County, Including
Identification of Permitted Renewal or
Rehabilitation Area:
Number of Units:
Commitment Schedule:
Month Princiwal Amount
November 1980
December 1.980
January 1.981
February 1981
t-la rch 1981
April. 1.981.
May 1981
June 1981
July 1981
TOtaI
Delivery Schedule:
Month
tJovember 1980
December 1980
January 1.9131
February 1981
March 1. 981.
April .1981
May 1961.
June 1981
July 1981
August 1981
September 1981
-4-
w
Pritic iPa1 Amount:
y
0
October 1981
November 1981
December 1981
January 1982
February 1982
Total $
*Pursuant to the Agreement, funds available for the purchase of Home
Mortgages by the City will be (i) reserved for the purchase of Home
Mortgages from each Lending Institution in its allocated amount for a
.period of six months after the Issuance Date (currently anticipated to
be December 18, 1980), subject to reallocation thereafter as provided
in the Agreement and (ii) committed to make home Mortgages on or before
the date 12 months after the Issuance Date.
B. Nature and Amount of Estimated Closing Costs for Home Mortgages:
C. Name of Private Mort(jage Guaranty ",hich Fending Institution
Proposes to Use and Such Insurer's Fee Scnedti l e :
D. Name of Insu►:er and Amount. of: Coverage of Lending Institution's
Errors and Omissions Insurance:
Fidelity Bond:
mortgage Servicer Performance Bond:
-5-
2. To induce the City to pi�r.chase such Home Mortgages, the
Lending Institution furnishes the following inforrr.ation which it
represents to be true and correct:
A. Name of Lendiny Institution:
B. Jurisdiction of Organization and date of incorporation:
C. Date of qualification to do business in the State of California:
D. Address and telephone number of principal office:
E. Name, title, address, and telephone number of person to whom
Correspondence with regard to this Program should br! addressed:
F. Check: designation applicable to your institution:
FDIC insured VA approved anortgage-v
FSI.,IC insured � P14,141 approved Seller/Servicer
FIIA-approved
mortgagee
FIMMC-approved Seller/Ser.vicer
Trust powers in the State
-6-
0
:'G. Are servicing activities audited? By whom and on what kind of
basis?
H.. Description of any relationships, agreement or arrangements
between Lending Institution and any official, employee or agent
of the City.
I. Are delinquency and foreclosure loss levels for the last three
years representative of your experence over the last five years?
If not, how are they different?
(In providing the information requested in subparagraph J, K, or L,
please Lise figures from latest audited financial statements and most
recent unaudited quarterly update:
J. To he corrr)lr-Led In,. Savings and Loan
Tssociations: As Of As Of
1.
Total assets
a.
$
2.
Conventional mortgage loans
3.
FHA --CIA mortgage loans
4.
Cash
$
$
5.
U.S. Gov't. obligaLlons
( including Agencies)
$
� $
G.
Net worth
$
$
7.
Scheduled items
a$
8.
Savings capital
$,
9.
Advances -- Federal Home Loan Bank
$
10.
Other borrowed money
$
0
-7-
K.
L.
To be com )leted y Commercial Banks:
1. Total assets
2. Conventional mortgage loans
3. FHA -VA mortgage loans
9. Cash
5. U.S. Gov't. obligations
(including Agencies)
6. Total capital accounts (equity)
7. Total capital notes cutstanding
8. Total deposits
9. Net Worth
To ',e completed by Mortgage Bankers:
1. Total assets
2. Conventional mortgage loans
3. F11A-VA mortgage loans
4. Cash
5. U.S. Gov't. obligations
(including Agencies)
6. Net: worth
7. Borro%ged money
•
M. The Lending Institution is participating in the following
cane -to --four family residential mort.ga('le proyr:Ims financed with
the proceeds of tax-exempt ohl igat ions, and, ill connection
therewith, was intially alloc,-:Ated the folloe intt amounts, has
entered into commitments with mor. tgagot-s to inn!-.e mortgage loans
in the follo%..ing amount:.; and has closed mortgage loans in the
following amounts:
Name of Issuer
A111 oun t
Allocated
* As of August 1, 1980.
MOM
AmUUnC
Comm i t t C!d
Amount
Disbursed*
0
N. Total Past mortoage
loin or.igini-ition
and servicing
experience for
entire
institution:
From
I;nd of
Next
Last
fiscal
Last:
Preceding
Preceding
Year
to End of
Fiscal
Fiscal.
FiscaI
I.a tes t Quarter
Year
Year
Year
Number C.nd
Dollar Amount
140.
No.
No.
No.
of Single --
Family Mortgage
Loans Originated
and Closed
a
$
$
$
Number and
IJO .
No.
140.
No.
Dollar Amount
of Single -
Family Mortgage
Loans Being Ser-
viced for Own
Account and for
Account of Others
at End of Period
i
$
$1
31-69 days
deliriquent*
1'.
fir. .
%
I
6 1 - 9 0 days
delinquent
%
More than 90
daj,s delinquent
71
Net: Poreclosu.
v
Losses
4.%
$
w
»
y
Percentages are ratios cf outstanding principal amount of
martgaye loans than are delinquent as to principal or interest to
outstanding principal amount of mor. tr ago loans that are being serviced.
-9-
O.
Past mortgage loan origination and servicing information for
Huntington Beach:
From January 1, For Calendar Year
1980, to June 30,
1980 1979 1978 1977
Number and
Dollar Amount
of Single -Family
Mortgage Loans in
Huntington Beach*
Originated and
Closers
No.
At June
30, 1.980
Number and
Dollar Amount
of Single -Family Vo.
Mortgage Loans in
HantinQLon leach*
Being Serviced
31-60 days
delinquent
61-90 days
delinquent
t-tore than 90
days delinquent
Net Foreclosure
Losses $
No. 140. 140.
At End
At End
At End
of
of Next
Of Last
Preceding
Preceding
Fiscal
Fiscal.
Fiscal.
Year.
Yerir
Year
* I£ the foregoing information is not available for Huntington
Beach, please provide origination information with respect to offices
located in Orange County and servicing information with respect to the
geographical area of the
(Footnote continued on following page)
0
..3. The Lending Institution hereby agrees that, in accordance
with paragraph 5 hereof, the City may accept this Application at any
time on or prior to October 30, 1980 (the "Acceptance Date"), by
mailing to the Lending Institution the City's notice of acceptance of
this Application (the "Notice of Acceptance" or. "Acceptance"). The
Acceptance may specify a principal amount of: Borne I•;ortgages of any
category lower than the respective amount applied for in the
Application and will nonetheless constitute an acceptance thereof and
not a counter. offer. The City reserves the right to reduce the
principal amount of the Bonds to be issued by the City and to specify
for any Lending Institution a principal, amount of home Mortgages of any
category lower L•han the amount set forth in the Acceptance.
A. The Program Application Fee accompanying this Application
may be deposited by the City and shall be refundable only to the extent
and under the circumstances set forth in the Invitation.
5. The Lending Institution's commitment made hereby is in
consideration of the City's efforts to sell the Bonds at an interest
rate and in a principal amount sufficient to eninble the City to
purchase home Mortgages from the Lending Institution and other lending
institutions. This Application may be revoked or withdrawn by the
Lending Institution without the prior written consent of the City until
October 30, 1,980. If the City mail, to the Lending Institution its
Notice of Acceptance, (i) this Application may not be revoked or
withdrawn by the [,ending Institution and shall, from and after the time
of such mailing, he an agreement between, and binding on, the Lending
Institution and the City (subject to the provisions of the Notice of
Acceptance and the Agreement and :subject to the delivery of and payment
for the Bonds) and (ii) the Landing Institution shall thereafter be
obligated (a) to execute the Agreement in substantially the form
attached to the Invitation, (f)) to deliver the Commitment: Fee and the
Developer Commitment Fee as required by Section 7(c) of the Agreement,
(c) to deliver the opinion of counsel rCgaired by Section 3(1) of the
Agreement, (d) to pay any additional Commitment Fee required by the
Administrator as described in the Invitation in connection with an
increase in the amount of Graduated I,ayment Home Mortgages to be made
by Lending Institution and ((-,) to sell to the City home tMortyages which
satisf,,i the commitment accepted by the City in the Notice of Acceptance
and all requirements set forth in the Agreement.
(Footnote continued from previous page)
Stage (or the area in closest pr(� (imit:y
Beach) for which records are mai.twined
records and description of such area on
-11-
to the boundaries of Huntington
and explain the basis of such
a separate sheet of paper.
G.. If any term, covenant, condition or provision of this
Application, or the application thereof to any circumstance, shall, at
any time or to any extent, be determined by a court of competent
jurisdiction to be invalid or unenforceable, the remainder of this
Application, or the application thereof to circumstances other than
those as to which it is held invalid or unenforceable, shall not be
'affected thereby and each term, covenant, condition and provision of
this Application shall be valid and enforceable to the fullest extent
permitted by law.
7. This Application shall be construed in accordance with the
laws of the State of. California.
B. This Application and all. obligations and rights arising
hereunder shall be binei.ng upon and inure to the benefit of the Lending
Institution and the City and their respective successors in interest.
The Lending Institution may riot assign this Application or any rights
hereunder.
9. The undersigned undertakes to provide such additional
information or documentation as is reasonably requested by the
Administrator.
1.0. The undersigned hereby certifies that it meets all the
eligibility requirements for a lending institution as set forth in the
Regulations.
114 ; ITNESS VONI :W-MP, the undersigned has caused this Application
to be duly executed on this day of , 19110.
(Name of Lending Institution)
BY
(Authorized Signature)
('rit.10)
-12-
0
572 uA-220a
CITY OF HUNTINGTON BEACH
HOME FINANCING PROGRAM
RULES AND REGULATIONS ESTABLISHING
ELIGIBILITY CRITERIA
FOR 14ORTGAGORS
(Adopted October 20, 1980 )
PREFACE'
There Rules and Regulations are made pursuant to Part 5 of
Division 31 of the Health and Safety Corte of the State of California
and relate to the City's home financing Program of purchasing home
mortgages, made to qualified persons and families, from qualified
lending institutions, as hereinafter defined. In order to be eligible
to become a mortgagor under this Program, a person or family must
comply with the criteria set forth in these Mules and Regulations.
In developing the criteria, the City has considered, on a
county -wide basis, factors such as the amount of personal or family
income available for housing nerds, household sire, costs and condition
fo available housing, and eligibility of potential mortgagors for
federal housirn7 assistance.
E
Section 2. Definitions. Unless the context otherwise requires,
the terms defined in this section shall for all purposes of these Rules
and Regulations have the meanings herein specified, to be equally
applicable to both the singular and plural forms of any of the terms
herein defined. Unless otherwise defined, all terms used in these
Rules and Regulations shall have the meanings assigned to such terms in
the Act.
Act. "Act" means Fart 5 of Division 31 of the health and Safety
Code of the State of California, as now in effect and as it may from
time to time hereafter be amended or supplemented.
Bonds. "Bonds" means the City of Huntington Beach 1980 Home
Mortgage Revenue Bonds authorized by, and at any time outstanding
pursuant to, the Resolution.
City. "City" means City of Huntington Beach.
Count "County" means Orange County.
COUnty-I ide Median Houneho..Id Income. "County -Wide Median
Household Income" means, the median household income figure for the
County, as identified by the City and as may be adjusted from time to
time by the City.
Home. "'Home" means real property and improvements consisting of
a single dwelling unit, including a condominium unit, owned by a
Mortgagor who occupies or intends to occupy such unit.
Horne Mortgage. "Home Mortgage" means a loan purchased by the
City from a Lending Institution with respect to a Home pursuant to and
in accordance with the Act and the Program.
-2-
Lending Institution.
•
"Lending Institution" means any bank,
trust company, savings hank, national banking association, savings and
loa"n association, building and loan association, mortgage banker, or
other financial institution or governmental agency which customarily
provides service or otherwise aids in the financing of home mortgages,
or any holding company for any of the foregoing.
Mort act gor. "Mortgagor" means a Person or Persons who meets the
requirements of the Program and has received a !tome Mortgage.
Oriqination and Servicing Agreement. "Origination and Servicing
Agreement" means a contract entered into by the City with ` Lending
Institution for the purchase of !tome Mortgages by the City from such
qualified Lending Institution, which may, but need not, be combined in
a single instrument with one or more other agreements with one or more
other Lending Institutions.
Person. "Person" means can individual, corporation, firin,
association, partnership, trust or other legal. entity or group of
entities, including a governmental agency or any agency or political
subdivision thereof.
Pro ram. "Program" means the Cit:y's program of purchasing Home
Mortgages pursuant to the Resolut-i.on, the Act, these Rules and
Regulations, and all other rules and regulations adopted pursuant to
the Act with respect to the purchase of Home Mortyages pursuant to the
Resolution.
-3-
h
1•
Resolution. "Resolution" means the resolution providing for the
issuance of the City of Huntington 'Beach 1980 Home Mortgage Revenue
Bonds, as the same will. be adopted by the City under the Act or as it
may from time to time thereafter be supplemented, modified or amended
by any supplemental resolution in accordance with the terms and
provisions thereof.
Substantial Rehabilitation. "Substantial Rehabilitation" means
rehabilitation in which the cost of rehabilitation equals or exceeds
20% of the value of the structure after rehabilitation.
Rules and Regulations. "Rules and Regulations" means these
rules and regulations establishing eligibility criteria for mortgagors
adopted by the City on October 20, 1980 _ J)UrSL ant to Resolution
No. 4927 , or as they m.-iy be supplemented or amended from time to
time.
Section 2. Eligibility Criteria for Mortgaclors. A Person or
Persons that complies with the following cirteria is deemed by the City
to be a.person or family of low or moderate income and unable to pay
the amounts at which unassisted private enterprise is providing
suitable, decent, sale and unitary housing and shall be eligible to
become a Mortgagor under the Program.
(A) The maximum household income of the Mortgagor,
as determined pursuant to Section s" of. these Rules and
Regulations shall not exceed:
-4-
r
•
•
1) 120; of County -Wide Median Household
Income with respect to Home Mortgages for
newly constructed Ilomes or for Homes with
Substantial Rehabilitation, or
2) The County --Wide Median Household Income
with respect to home Mortgagees for
existing Homes; provided that at least
half of the proceeds of Bonds disbursed
to make Home Mortgages under the Program
for existing Homes must be for households
where income does not exceed 80% of
County --Wide Median Income.
(B) Each Mortgagor shall certify his or her intention to
oceupay the home as his or her principal place of residencc, for a
minimum of two years after the home: Mortgage has been made. Such
certification shall be made as set forth in the Origination and
Servicing Agreement.
(C) Each Mortgagor shall certify his or her agreement not
to purchase or own any Bonds. Such certification shall be made as set
forth in the Origination and Servicing Agreement.
(D) The Mortgagor shall meet credit standards established
by the City, the Lending Institutions, and any private mortgage
guaranty insurer participating in the Program.
0
-5-
Section 3. Determination of: Household Income. For purposes of
determining whether a potential Mortgagor meets the maximum household
income eligibility requirements set forth in Section 2 of these Rules
and Regulations, household income shall mean and include the current
arnil.al aggregate income of a potential Mortgagor, together with the
current annual aggregate incomes of all persons who intend to reside in
the Home for which the Home Mortgage is made as their principal place
of residence, regardless of whether such persons resided with such
Mortgagor at any time in the past.
Such current annual aggregate income shall be computed pursuant
to standards set forth in the Origination and Servicing Agreement.
Section 4. Assumption of home Mortgages. Any home Mortgage may
be assumed upon the Mortgagor's sale, transfer or other disposition of
the Home provided that the purchaser of such Home is an eligible
Mort-gagor under the Program.
• Section 5. Mi scQ11aneous.
(A) Waiver. To the extent permitted by the Act, the City
shall have the right to waive any rule or regulation herein contained,
and any failure on the part of the City to enforce any rule or
regulation herein shall not affect the validity of any contract entered
into between the City and a Lending Institution pursuant to the Program.
-6-
(II) Governing Law. All questions with respect to the
construction of these Rules and Regulations shall be governed by the
laws'of the State of California.
(C) Section headings. The headings of the several
sections of these Rules and Regulation,, and any table of contents
appended hereto, shall be solely for convenience of reference and shall
not affect the meaning, construction or effect hereof.
(D) Severability. If any one or more of the provisions
contained in these Rules and Regulations shall for any reason be held
to be invalid, illegal or unenforceable in any respect, then such
provision or provisions shall. be deemed severable from the remaining
provisions hereof and such invalidity, illegality or unenforceability
shall not affect any other provision hereof, and these Hules and
Regulations shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.
0
fi71 A--frUA
�1
CITY OF HUNTINGTON BEACH
HOME FINANCING PROGRAM
RULES AND REGULATIONS ESTABLTSH11JG
ELIGIBILITY CRITERIA
FOR LENDING INSTITUTIONS
(Adopted October 20 , 1980)
P R E F A C E
va f7(I G /A-+"R..
These Rules and Regulations are made pursuant to Part 5 of:
Division 31 of the Health and Safety Code of. the State of California
and related to the City's hom(! financing Program of purchasing home
mortgages, made to qualified pers-ns and f amilio s, from gUali; ied
lending institutions, as h�-reinaf::r defined. In ordc..r to he eliginle
to originate and service home mortgages under this Program,, a lending
institution must comply with the criteria set forth in these Rules and
Regulations.
Section 1. Definition,. Unless the context otherwise req,lires,
the terms defined in this se::tion shall for all purpose, of these Rules
and Regulations have the meanings herein specified, to be equally
applicable to Moth the singular and plural form, of any of the terms
herein defined. Unless otherwise; defined, all. terms used in these
Rules and llegular:ions shell have the meanings assigned to such terms in
the Act.
Act. "Act" means Pert 5 of Division 31 of the heal;::, and Safety
Code of the State of L'alifornia, as now in effect and as it may from
time to time hereafter be emended or supplemented.
Bonds. "Bonds" means the City of Huntington Beach 19801lome
Mortgc.ge revenue Bonds authorized by, and at any time outstanding
pursuant to, the Resolution.
Ci tv. "City" means tl�r: City of Huntington Beach.
Ilomcy. "home" means real property and improvements consisting of
a single dwelling unit, including a condominium unit or a unit in a
stock
cneperU:. •.-V where
the occupant
is a shareholder, owned by a
Mortgagor
who occupie.,;
or intonds to
occupy SUCH unit.
Home Mort ii-icie. "llome iiortyi.ge" means a loan purchased by the
City from a Lending InsLitut.ion with respect to a home pursuant to and
in accordance with the Act and the Program.
Lending Institution. "I.c.ndivri InsLiteltiOn" means any bank,
trust company, savings bank, national Nanking accociation, savings and
loan association, bu i ld inq and loan association, mortgage banker, or
other financial institution or governmental. agency which customarily
provides service or otherwije aids in the financing of home mortgages,
or any holriing company for any of the, foregoing.
Mo r t9ag or. "t•lortgagor" mean, any Person or Persons who meet the
requirements of the Program and have received a home Mortgage.
Origination and Servicinq Agreement. "Origination and Servicing
Agreement" means an agreement, contract or binding commitment entered
into by the City with a qualified Lending Institution for the purchase
of home Mortgages by the City and servicing of such Home t-Iortgages by
such qualified Lending Institution.
Person. "Person" means any individual, partnership,
copartnership, firm, company, corporation, lending institution,
association, joint stock company, trust, estate, political subdivision,
state agency or any other legal entity, or its legal representatives,
agents or. assigns.
Program. "Program" means the City's program of purchasing home
Mortgages pursuant to'the Resolution, the Act, these Rules and
Regulations, and all other rules aricl r-egulaLionS adopted pursuant to
the Act with respect to the purchase of Nome t;ortyayes pursuant to the
Resolution.
Re Solution. "Resolution" mvanf; the resolution providing for the
issuance of. the City of Huntington Bench 1980 home llortgaye Revenue
Bonds, as the sawem will. be adopted by t1;r! City undr. r the Act or as it
may from time to time thereafter be :.supplemented, modified or amended
by any supplemental resolution in accordance with the terms and
provisions thereof.
Trustee. "Trustee" means the trustee appointed by the City
pursuant to the Resolution, or its successor.
Rules and Regulations. "Rules and Regulations" means these
rules and regulations estalAishing eligibility criteria for lending
institutions adopted by the City on October 20 , 1980 pursuant to
-3-
e
Resolution No. 80--4927, or as they may be supplemented or amended from
time to time.
Section 2. Eligibility Criteria for Lending Institutions. In
order to be eligible to originate and service Home Mortgages under the
program, a Lending Institution shall. comply with the following criteria:
(A) The Lending Institution shall be authorized to do business
in the State of California and shall. have full legal authority to
originate and service home Mortgages under the Program.
(B) The Lending Institution sh, 1 1 be approved by the Federal
National Mortgage Association or tile- Federal. dome Loan Mortgage
Corporation to sell and service the type of. Home Mortgages purchased
under the Program.
(C) The Lending Institution shall have- a minimum net worth of
$250,000.
(D) 'file Lending Institution's del.incluency ratios for all
mortgage loan contracts of 60 days or more sha, 1 not exceed ttte average
as reported by the San Francisco Federal dome Loan Bank Board.
(L) The Lending Institution shall be one which transacts
business in the City (other than in connection with the Program).
(F) Loan processing fees proposed by the Lending Institution to
be used in the Program must he competitive and fiscally responsible.
(G) The Landing Institution shall be willing to execute the
Origination and Servicing Agreement in the form presented by the City.
(Ii) The Lending Institution shall be willing to service the
Home Mortgages it originates.
-4-
(i) The Lending Institution shall. he willing to originate and
service a minimum of $5,000,000 in Home Mortgages.
(J) The Lending Institution sliall be willing to maintain a
mortgage servicer performance bond, as required by the Origination and
Servicing Agreement and the Resolution, ;with a maximum loss limit of
not less than 58 of the outstanding principal balance of all Home
Mortgages originated and serviced by the Lending Institution.
M :he Lending Institution shall submit an offer to
participate in the Program, in all respects in accordance with the
Citi's invitation to Lending Institutions to participate in the
Program, accompanied by they following:
(1) A certified or cashier's check in the amount, of
one -tenth of one percent (.1 of V�,) of the augregc-rte principal
amount of home mort,9--rges, which the I,enaing Institution offers to
originate. The arnoLrnt of such check :.hall be nonrefundable
except- to the extent that tht• Lr!ndinq Institution's offer to
participate is not accepted by the City.
(2) A letter from a hanY ac:ceptat,l.e to the City, as set
forth in the City's invitation to Lending Institutions, sta;:ing
that upon requost of the Lending Institution (or the particular
developer obtaining the .let -ter of credit) , the bank. will issue a
letter- of credit in the amount :yet forth in Section 2(I,) (1) of
these Rules and Regulations.
(L) Five business days after receipt of notice from the City of
acceptance of its offer to participate in the Program (in whole or. in
-5-
part) or such longer time as is specified by the City, the Lending
Institution shall deliver the following to the City:
(1) a letter of credit from a bank acceptable to the
City, as set forth in the City'--. invitation to Lending
Institutions, in an amount to be estab.ished by the City of not
less than three and one-half percent (3 1/2%) of the aggregate
principal amount of home Mortgages which the City has accepted
for purchase from the Lending Institution. The exact percentage
used to calculate the aRiount of this letter of credit shall be
determined by the cash flow needs of the grogram. S•.i th respect
to any new construction of iioriess with respect to which the City
has accepted the Lending In stitW-ion's offer to originate home
Mortgages, such .Letter of credit must be obta-Iiie.3 by the
particular developer of such Home.-, TIW LISO and application of
the letter of credit :shall he as seL forth in the Origination
and Servicing Agreement.
(2) An ext.cuted teri-Iinat.ion ant S-t-viciny Agreement.
(3) An opinion of cOun-.V1. in the farm specified by the
Origination and Servic:in,:1 Agreems:-.nt (car the invitation to
Lending Institutions to parti,�:ipal.v in the Program) .
(4) Such other documents and information as may be
required by the Origination and Servicing Agreement.
Section 3. Criteria for Selection of. Lendinct institutions.
Le»ding Institutions shall be selected to particip�.te in the grogram on
the basin of: the minimum standards Set- forth in Section 2 of these
Rules and Regulations and on the basis of: demonstrated ability to
I
-6-
handle the origination and servicing of conventional single family
mortgage loans, and ultimate acceptability to the underwriters of the
Bonds. Preference will be given to Lending Institutions which have
participated in other tax-exempt mortgage revenue bond programs.
Section 4. Miscellaneous.
(A) Waiver. The City shall have the right to waive any rule or
regulation herein contained, and any failure on the part of the City to
enforce any rule or regulation herein shall not affect the val.idity of
any contract entered into between the City and a Lending Institution
pursuant to the Program.
(B) Governing_L:tw. All. guestiorss with respect to the
construction of these Rules and Regulations shell be governed by the
laws of the State of California.
(C) 5ectior. lleadinns. `S'ho headings of the several sections of
these Rules and R(_%gulationr, and any table of contents appended hereto,
shall be solely fur- convenience of reference and shell not affect the
meaning, construction or effect hereof.
(D) Severabil itv. if any one or more of the provisions
contained in these Holes and Regulations shall. for any reason be held
to be invalid, illegal or unenforceable in any respect, then such
provision or provisions shall be deemed severable from the remaining
provisions hereof: and such invalidity, illegality or enforceability
shall not aL•fect any other provision hereof, and these Mules and
Regulations shall be construed as if such invalid, illegal or
unefor.ceable provision liar] never been contained herein.
-7-
,,STAT �ti•CI:Xti'EI)
COMFIENSAT)ON P.O. BOX 807, SAN FRANCISCO, CALIFORNIA 94101
INSURANCE
fir- U N D JAN 20 1981
CERTIFICATE OF WORKERS' COMPENSATION' INSURANCE
January 14, 1981
City of Huntington Beach
City Hall
Huntington Beach, CA 92646
This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California
Insurance Commissioner to the employer named below for the policy period indicated.
This policy is not subject to cancellation by the Fund except upon ten days' advance written notice to the employer.
We will also give you TEN days' advance notice should this policy be cancelled prior to its normal expiration.
This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the
policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with
respect to which this certificate of insurance may be issued or may pertain, the insurance Hforded by the policies
described herein is subject to all the terms, exclusions and conditions of such policies.
410214-80
10-1-80/81
EMPLOYER PRESI=
Wilson futon ASSAF & Mc Elligotr
630 N. San Mateo Dr. �aNt7 CvN su! fr}.crfs'
San Hateo, CA 94401
SCIF FOAM 267A (AEV. 8•78)
t
f
RESOLUTION 140. 4926
A RESOLUTION OF THE CITY COUNCIL OI? THE C iC Y OF
HUNTINGTON BEACH STATING ITS ItITEttl' ION TO ISSUE
MORTGAGE REVE14UE BONDS AND RETAIN INVESTMENT
BANKERS AND BOND COUNSEL
�4HEREAS, the Legislature of the .State of California hay.
authorized cities to make long-term, low -interest loans through
qualified mortgage lenders to finance residential construction,
rehabilitation and resale of existing housing stock throughout
the jursidiction of the City of Huntington Beach (the "City"); and
The Legislature, In Health and .Safety Code sections 52010 et
seq., has established parameters by which a city may in:aue mort-
gage bonds for the purpose of financing such construction, re-
habilitation and resale; and
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 successLlully, the city requires
the advice of qualified Investment bankers and bond counse i,
NOW, THE;I3EPORE, BE IT RESOLVED ray r,hL City Counci: or the
City of Huntington Beach that:
1. It hereby approves and authorizes the Issuance of inort-
ga.,ge revenue bonds, pursuant to Hen'.th and Safety Code sec-
tions 52000 et seq., in an amount rict to exceed $1j0,000,000.
2. The bonds will be payable solely out of revenues and
other amounta derived by the city from mortgage loans, the funds
In the debt service reserve fund rand other Vjrids and accounts
created by the trust indenture establishing the progr•ain and the
earnings thereon. The bonds will not, be i gf.,neral or moral obli-
WSA: ahb
10/13/80 I.
gation of the city within the meaning of any constt t,attona : nr
statutory provisions, nor a charge against its general credit.
3. Neither the members of the City Counr.il, nor :any or-
£icial or employee of the city, near any person executing, the
bonds issued under the program shall be liable personally on the
bonds -r be subject to any personal liability or accountability
by reason of the issuance thereof'.
4. It `is hereby found and detemnined that the issuance of
such bends 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 substantial rehabilitation of existing
residences.
6. The ,Acting City Administrator is authorized and directed
to submit to the Housing Bond Credit Conant t tee a statement or the
purpose for which tends are proposed to be issued and the ariount
of the proposed issue, and to take further actions as are required
rco prepare a mortgage revenue bond issue and program.
7. That Wilson, Morton, Assaf & McElligott, attorneys at law,
be retained by the city as bond counsel, with their fees to be
paid from and their expenses to be recovered from, bond proceeds.
8. That Lehman Brothers Kuhn Loeb, Inc. Hnd Airr Wilson,
Inc. be retained by the city as investment bankers .rith their fees
to be paid from, and their expenses to be recovered from, bond
proceeds.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held on the 2001 -
day of October ._, 1980.
ATT&5T:
" ae,�,
6.1
City Clerk
2.
Ma y o r
r r''
APPROVED: �1
^i ty Attorney
INITIATED, REVIEW AND APPROVED:
Acting City AdmMlistrator
3.
4Ves. No.
S'rxrn OF CALIFORNIA )
(',OUN'TY OF ORANGE ) ce
CITY OF HUMICTON BEACH )
I, ALICIA M. WEN"IVORTH, 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 d'f 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 p regular meeting thereof held on the 20th day
of *October , 19 80 , by the following vote:
AYES: Councilmen:
Thomas, inley, Bailey, VzcAllister, Mandic, Kelly
!K)ES : Councilmen -
None
ABSENT: Counc i lme
�Pattinson
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
/ahb
10/14/80
RESOLUTION 110. 4927
A RESOLUTION OF THE CITY COUNCIL U1: THE CITY OP
HUNTINGTON BEACH ADOPTING RULES AND REGULATIONS
ESTABLISHING ELIGIBILPI`Y CRITERIA FOR LE.NDI►ZG
INSTITUTIONS AND MORTGAGORS PARTICIPATING IN 'PHE
PROGRAM, AUTHORIZING CITY OPPICERS To IMPLEMFtir
THE 'PROGRAM, APPROVING CERPAIN DOCUMENTS, AND
AUTHORIZING THE EXE.CUPION OF CERTAIN DOCUME.tTPS
WHEREAS, in Resolution No. 492E , adopted on October 20,
1980, the Council of the City of Huntington Beach Jetennlne;i
that a housing need exists in the city of Huntington Heacn
(hereinafter called the "City"); and
The Council of the City of Suntington Beach also declaveA,
in Resolution No. 4926adopted October 20, 1980, its intent to
issue notes and bonds, pursuant to Part 5 of Division 31 of
the Health and Safety Code of the State of California (hereinafter
called the "Act,"), to prov. ie financing for the acquisition, core--
struction or rehabilitation of housing in the city; and
The Act requires the city to adopt regulations er:tabl fishing,
criteria for qualification of lending 1113titLItlons eligible to
originate and service home mortgages under any program adopted
pursuant to the Act; and
The Act requires the city to adopt regulations establishtn,
criteria for qualiftcation of mortgagors eligible to borrow funds
under any program adopted pursuant to the Act; and
Certain other Program documents need t;,) be approved for the
completion of the Program,
NOW, THEREFORE, HE IT RESOLVED t)y the City Council of the
City of Huntington Beach as follows:
1. Rules and regulations establishing eltgihtl.ity criteria
for lending institutions and mor•tgdgars ti)e
L.
AdDL
and Regulations shall serve the purpose or enaol ink �ltt:il 1+'t• i
lending institutions and mortgagors to partistpatN in the Pvogr&'I
on an equitable basis.
3. Ths "Invitation to Lending Institutions to Partlelpat`
in the City of Huntington Beach's Horne P1.•anctng Program," in
substantially the form submitted to this meeting, IS hereby ap-
proved and adopted. The Mayor and the City Clerk are authortzed
and directed to execute said Invi tat Lon.
4. The "Origination, Service and Administration Agreement,"
in FAbstantially the form submitted to this meeting, is hereby
approved. and adopted. The Mayor and the City Clerk are authorizeA
a
and directed to execute said Agreement.
5. The "Application to Originate, Sell and Service Home
Mortgages," in substantially the form submitted to this meeting,
is hereby approved and adopted.
6. The proper officers of the city are hereby authorized
and directed to perform any acts and enter Into and execute �tny
agreements or other doewnents that they may deem necessary or ap-
propriate to implement the Program. Any doeaments approved by this
resolution or subsequently entered into by appropriate city officers
may be amended or revised as the City Administrator, on the ad-
vice of counsel, deems advisable and in the be:3t interest of the
city.
7. This resolution shall take effect from and after tts
adoption.
PASSED AND ADO[IrED by the City Council of the City of
Huntington Beach at it regular meeting tier#!ur halci on the 20th
clay of October, 1980.
ATTEST:
City Clerk
2.
Mayor
r-
APPROV D AS Tod FORM:
�'- - -
e.rA rley
•
ti
-
1
-
Y
4
•
S';'KrE OF CALIFORNIA )
COWN OF ORANGE ) e e
CITY OF HUNTINGTON BEACH )
eftes. No. 4927
I, ALICIA M. WEN'INOtt1•H, 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 20th day
of ' October 1980 , by the following vote:
AYES: Councilmen:
Thomas, Finley, Bailey, MacAllister, Mandic, Kelly
NOES: Councilmen:
None
A,BSElff : Councilmen:
Pattinson
�
� V
t
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
c:
eff
°,ttt�i� *•.agar>��j•�••.
City ®f Hunfingtdii Be-ach
P.O. BOX ISO CALIFORNIA 92649
OFFICE OF T11E CITY CLERK
February 3, 1981
Wilson, Morton, ASSAF 6 McElliogott
630 North San Mateo Drive
P. 0. Box 152
San Mateo, California 94401
Enclosed is a copy of an agreement for bond consultant services
between the City of Huntington Beach and your firm which was
approved by the City Council on October 20, 1980.
Alicia M. Wentworth
City Clerk
AMW:bt
Enclosure
REQUEST
FOR CITY COUNCIL ACTION
RCA 80- 78
Submitted by
Frank B. Arguello
Department Administration
Date Prepared
October 10
, 19 80 Backup Material Attached 13 yes
0 No
Subject
TAX EXEMPT
MORTGAGE REVENUE BOND ISSUE
ADOPTION OF DOCUMENTS
City Administrator's Comments
Approve as Recommended Wb
r
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions -
STATEMENT OF ISSUE:
On October 6, 1980, the City Council selected the firms of Lehman Brothers
Kuhn Loeb Inc. and Birr Wilson, Inc., to act as underwriters for a tax
exempt mortgage bond issue. In order to proceed with the preparation of
this bond issue, the attached documents must be approved by the City
Council.
RECOMMENDATION:
1) Adopt Resolution stating City's Intention to Issue Mortgage Revenue
Bonds and Retain Investment Bankers and Bond Counsel;
2) Approve Contract between City and Wilson, Morton, Assaf & McElligott
for Bond Consultant Services;
0
�G 0
3) Introduce Ordinance Adopting a Home Financing Program and Authorizing C", � r
City Officers to Implement the Program;
4) Adopt Resolution Adopting Rules and Regulations Establishing
Eligibility Criteria for Lending Institutions and Eligibility Criteria r
for Mortgagors and Authorizing Mayor to Execute Invitation to Lenders
(criteria attached to resolution);
5) Approve format of Application to Originate, Sell and Service Home
Mortgages (to be completed by lending institutions);
Pio 3ne
1,3
ANALYSIS;
Federal and state laws require a local jurisdiction participating in a tax
exempt mortgage bond issue to take certain steps to legally authorize the
band issuance and to solicit the participation of local lenders. Each of
the attached documents has been reviewed and approved by the City
Attorney. Recommended actions above are briefly described below:
1) Resolution of Intent: Required by state law, this simply is a
notice of theCity's intent to sell bonds and stipulates a not to
exceed amount for the sale ($50,000,000). It also states that
the bonds are not a general obligation of the City and that the
costs of preparing the issue will be paid from the issue proceeds.
2) Contract for Bond Counsel: Consistent with the Council's
selection of Bond Counsel on Oct ber 6, 1980, a contract with the
Wilson, Morton, Assaf & McElligott firm is attached.
3) Ordinance to Adopt Program: State law requires that the City
adopt the bond program by ordinance, and that such ordinance
state that the purpose of the program is to assist in meeting
housing needs and state that it is consistent with the land use
and housing elements of the City's General Plan.
4) Resolution Adopting Rules and Regulations: State law requires
that the City offer local ing institutions the opportunity to
act as servicers of the mortgage loans that will result from the
bond sale. Servicers will screen and qualify buyers and collect
loan payments. To solicit this participation by lenders the City
adopts by resolution eligibility criteria for lenders and
mortgagors. These eligibility criteria will be transmitted to
local financial institutions along with an invitation to
participate. This resolution also authorizes the Mayor to sign
the invitation.
5) Apelication to Service Mort ages: Lending institutions wishing
to service mortgages resulting from the bond proceeds must
complete an application and return it to the City for review.
This application requests general information about* the lender's
financial status and mortgage experience, about the amount and
type of mortgages the lender would wish to issue through the bond
proceeds (consistent with the City's parameters), and the
schedule by which these mortgages could be placed. The City
Council is asked to approve the form of this application.
The approval of these documents will permit the City's bond
underwriters and bond counsel to proceed with the preparation of
the issue and will permit confirmation of lender and developer
participation.
This subject will return to the Council on October 27, 1980, for
a second reading of the ordinance adopting the bond program and
again in November, 1980, for final approval of all documents.
ALTERNATIVES:
Without approval of these documents the bond issue will not move forward
and would not meet federally imposed time constraints that require the
bonds to be sold before December 31, 1980 (see schedule attached).
FUNDING SOURCE:
Tax exempt mortgage revenue bonds arty not general obligations of the City
and the costs of preparing the issue are reimbursable from the bond
proceeds.
Frank B. Arguello
Acting City Administrator
FBA: SVK:jb
57.27A-220a
E
Wii. o,v. ASSAF cC I1f<•l�r.t.rlilirr
I"1111I A h,L%O♦
JAwft \ GOrtcAND
ATTORNEYS AND COUNSELLORS AT LAW
J6Y111 t woM.V•.
Y..IM A UAN�t\
rMIU► O ♦t",
630 NORTH SAN MATEO DRIVE
►tQcv \ wEtuu.OTT
lO.� t 1.1On1
1 Mt1M.11 I1 Ay^...t
JAYI t1M r.IrYt4tt
f 0 Hot 1.52
1"t �ADU.
Rt. enttt.. JA
SAN MATEO. CALIFORNIA 94401
"•14ALn %,.IsTvY
TNQMAI I ..t
f4151 342`35:3
October 6, 1980
CITY OF HUNTINGTON BEACH
A. B. 1355 HOME FINANCING PROGRAM
C1.A1119e N A1..eR10f
1004 loll
.100.014106 . OOROON
1JO1tr.l a 0001UGN1
0.11.10E0
.Ul.eRlOt a WM50%
less 1.A1
.IM.. RIOI. olklob1 14602IELO A WAItACf
I.. r Ia.1
AIItON JONEe ..ORTON. IfI.GM
1o.1•lorr
NEWPORT REACH OFFICE
e UITt 1E10
ago)
N[wr opt CENTER ()RIVE
Ntobroov etAr" CA .veto
17141 tee�t.ol
Dates Events/Actions
October 1 Developer information meeting
October 6 City Council approves underwriters, bond
counsel; adopts resolution of intention
October 7 Distribute first drafts of program and
bond documents to financing team and City
staff
October 13 Special meeting of City Council to
adopt: 1) ordinance adopting the
program; 2) resolution adopting rules for
lenders and morgagors; 3) authorize Mayor
to execute invitation to lenders
oclober 15 1. Receive preliminary commitments from
developers
2. Document review conference/prone
conference
3. Mail invitations to lending
institutions
Octobei 22 Distribute final draft of documents
October 30 Receive commitments of lending
institutions/developers
Dates Events/Actions
November
3
City Council adopts bond resolution and
other necessary documentation
November
A
1. Mail rating agency application
2. Mail Housing Bond Credit Committee
application
November
5 - 15
Prepare cash flow analysis
November
20
Rating Agency presentation in New York
November
Appear before State Housing Bond Credit
Committee
0
December
8
1. Sign off on documents
2. Print official statement
3. Receive rating
December
16
Sale
December
23
Close
-2-
WSA: ahb
10/13/80
ORDINANCE NQ, 2460
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
ADOP`rING A HOME FINANCING PROGRAM AND AU-
THORIZING CITY OFFICERS TO IMPLEME14T THE
PROGRAM
WHEREAS, in Resolution No. 4926 , adopted on October 20,
1980, the Council of the City of Huntington Beach determined
that a substantial housing need exists in the city of Huntington
Beach ( the "City?') ; and
The Council of the city also declared, in Resolution
No. 4926 , its intent to issue notes and bonds, pursuant to
Part 5 of Division 31 of the Health and Safety Code of the State
of Calif:.)rnia ( the "Act"), to provide financing for the acquisi-
tion, construction or rehabilitation of housing in the city; and
The Council of the city now finds and determines that it is
in the best interest of the city to engage in a home financing,
program (the "Program") pursuant to the Act for persons and rami-
lies within income limits established by the Act for the purpose
of encouraging the construction, purchase, and rehabilitation of
homes affordable by such persons; and
Such encouragement of housing con8ti'uction aivi rehabilita-
tion will increase the housing supply in the city; and
The Program shall comply with the I.,and Use E�.lement and the
Housing Element of the Oeneral Plan of the city,
The City Council of the City of Euntington Beach sloes
ordain as follows:
1. The city hereby adopts the Program pursuant to the Act
and hereby determines to issue revenue bonds pursuant to said Act
to provide funds for said Program.
2. The city hereby finds and declares that the Program will
serve the public purpose of providing financing for decent, safe
1.
and sanitary housing that people in the lower end of the purchasing
spectrum can afford and of increasing the housing supply in the city.
3. The city shall operate the Program within the geographical
boundaries of the city.
4. The proper officers of the city are hereby further au-
thorized and directed to perform any acts and enter into and exe-
cute any additional agreements or other documents that they may
deem necessary or appropriate to implement the Progt•am.
5. The provisions of this ordinance, being necessary for
the welfare of the city and its inhabitants, shall be liberally
construed to effect its purpose.,
6. This ordinance shall take effect thirty days after its
adoption. The City Clerk shall certify to the passage of this
ordinance and cause same to be published within fifteen days after
adoption in the Huntington Beach Independent, a newspaper of
general circulation.
PASSED AND ADOPTED c,, the City Council of the City of
Huntington Beach at an adjou. -d, regular meeting thereof held
on the 27th day of october, 19c
Mayor
ATTEST: APPROVED Az FORM:
ALICIA M. WENTWORTH, CITY CLERK
B:
Deputy City Clerk �y City Attorney
INITIATED, REVIEWED AND APPROVED:
Acting City' n strator
I-
2.
`ram
Od. No. 2-160
STATE OF CALIFORNIA )
COUNTY OF ORANGE
CITY OF HUNTINGTON BEACH )
I, ALICIA M. NEN.,WORTti, the duly elected, <ual ; ied City
Clerk of the City of !Huntington Beach and ex-officio Cle:-•- f the
City Council of the said Cit;, do hereby certify that tht. glee number
of meembere of the Ctty Council of the City of Huntington Beach is seven;
that the foregoing ordinance was read to said City Council at regular
meeting thereof held on the 20th day of October
and was again read to said City Council at a regular Ad'qur:ned
meeting thereof held on the 21th. dray of October , 19 80 and
was passed and adopted by the affirmative vote of tuore than a majority o:f
all the members of naid City Council.
AYES: Councilmen:
Pattinsoo , Thomas, F'inaley, Bailey, Kelly
NOES: Councilmen:
None
ABSENT: Councilmen:
MacAllister, Mandic
AI tc U M. W ntworth
City Clerk and ex-o£ficio Clerk
of the k:ity Council of the City
of Huntington Beach, California
By : _ s�l_l�t t� %Q_'�� sly
Deputy