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HomeMy WebLinkAboutReso 237-06 First Time Homebuyer Loan Program RESOLUTION NO. 237 - 06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ************************************ AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT ON BEHALF OF THE CITY WITH CaffiFA AS PART OF THE FIRST TIME HOMEBUYER LOAN PROGRAM WHEREAS, the City Council approved a First Time Homebuyer Loan Program ("FTHLP") on March 21,2006; and WHEREAS, the FTHLP will make available home loans to qualified applicants; and WHEREAS, in order to provide flexibility in the FTHLP and the ability for layered financing with the California Housing Finance Agency (CalHF A), CalHF A requires that the City enter into an agreement with their Agency. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin authorizes the City Manager to execute the Agreement (Exhibit A) on behalf of the City. PASSED, APPROVED AND ADOPTED this 19th day of December 2006 by the following vote: AYES: Councilmembers Hildenbrand, Oravetz, Sbranti and Scholz, and Mayor Lockhart NOES: None ABSENT: None ABSTAIN: None A~~~. Ci Y Cle k -4 Reso No. 237-06, Adopted 12/19/06, Item 4.16 Page 1 of 1 Ca 1,I1tJ CALIFORNIA HOUSING FINANCE AGENCY SUBORDINATE LENDER/CalHFA SUBORDINATE FINANCING AND RESALE CONTROL AGREEMENT This Subordinate Lender/CaIHF A Subordinate Financing and Resale Control Agreement (the "Agreement") is made and entered into on nee... \q. lcp'P ,by and between the California Housing Finance Agency (the "CaIHF A'l.a public instrumentality and a political subdivision ofthe State of California, and The.., Crt:J OfJJubU 1\ (the "Subordinate Lender"). RECITALS A. CalHF A intends to make a commitment to provide below-market rate mortgage financing (the "CaIHF A Loan(s)") to facilitate the acquisition by low- and moderate-income borrowers (the "Borrower(s)") of single family homes located in "Dubtlh , Ala.medo-. County, California and more particularly described as follows (the "Home(s)"): B. Subordinate Lender intends to provide additional financial assistance for such acquisition and/or to impose restrictions on the transfer of the Homes as provided in those certain documents attached hereto and incorporated herein by this reference (collectively the "Subordinate Lender Documents"). C. In order to ensure that the Subordinate Lender Documents (1) are consistent with certain federal tax law requirements relating to CaIHF A's tax exempt bond financed loans, and (2) are subordinate to the CalHF A Loan(s), the parties hereto have entered into this Agreement. NOW, THEREFORE, the parties hereto agree as follows: 1. Subordinate Lender Documents. The Subordinate Lender represents and warrants that all of the financing documents and transfer restrictions which will be imposed on the Borrowers or the Homes by Subordinate Lender or otherwise in connection with the provision of its financial assistance or imposition of its transfer restrictions are included in the documents described herein as the "Subordinate Lender Documents". 2. Representations to Bond Counsel. The Subordinate Lender represents and warrants that any factual representations made to CalHF A's bond counsel in connection with the Subordinate Lender Documents are and will be accurate and complete to the best of its knowledge. 3. Amendment. The Subordinate Lender Documents shall not be revised or amended without the prior written consent of CalHF A. 4. Subordination. The Subordinate Lender Documents shall be subordinate to the CaIHF A Loan(s) and foreclosure of any CalHF A deed of trust shall extinguish the Subordinate Lender Documents as encumbrances on the Home being foreclosed. The Subordinate Lender shall take all actions and execute all documents as necessary to cause such subordination and enable CalHF A to obtain title insurance which insures the CalHF A Loans(s) as superior to the Subordinate Lender Documents. CalHFA Subordinate Financing & Resale Control Agreement 12/1 5/02 Page 1 of2 5. Attorney Fees, Remedies. In any proceeding to enforce this Agreement, the prevailing party shall be entitled to receive from the other party reasonable attorneys fees and costs. In the event of the inaccuracy or breach of any of the representations, warranties or agreements of Subordinate Lender contained herein CalHF A may pursue any remedies available at law or in equity to redress any damage resulting to CalHF A. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth above. CALIFORNIA HOUSING FINANCE AGENCY SUBORDINATE LENDER By: By: Name: Name: R i c-hev'd C, Arnbros-t." C CTj rnClrD--5V Title: Title: CalHFA Subordinate Financing & Resale Control Agreement 12/15/02 Page 2 of2