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HomeMy WebLinkAboutItem 4.5 Mortgage Revenue Bond Program �.00-4o CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 28, 1985 SUBJECT 1985 Mortgage Revenue Bond Program EXHIBITS ATTACHED Letter from County Planning Director dated January 17, 1985 ; List of participating Developers ; Cooperative Agreement ; Draft Resolution RECOMMENDATION Adopt Resolution authorizing the Mayor to execute an agreement between Alameda County and the City regarding the issuance of mortgage revenue bonds within the City FINANCIAL STATEMENT: The City will incur no costs by participating with the County in this program. This program will enable developers within the City of Dublin to offer below market financing for new homes to perspective home buyers. DESCRIPTION In 1983 and 1984 the Dublin City Council adopted resolutions authorizing the City to participate in Mortgage Revenue Bond Programs . As a result of the City' s participation in this program in -the past , the following developers have received those allocations identified below: 1983 Issue Heritage Commons : $ 1 million 1984 Issue Morrison Homes $ 3 million Kaufman & Broad $ 5 . 5 million The City is in receipt of a letter from the County Planning Director, William Fraley soliciting the City' s interest in participating in the 1985 County Mortgage Revenue Bond Program for single family housing. The County expects to receive an allocation ,of $40-60 million from the State and expects to issue bonds in that amount in late February, 1985 . The County has further indicated that it has received requests for funding in excess of $66 million from developers from various cities throughout the County. The County has yet to make a final selection as to which developer will be able to participate. Developers within the City of Dublin that have expressed an interest in participating in this program include Morrison Homes, which is presently developing the property behind Iceland ; Kaufman & Broad which is presently developing a portion of the Nielsen Ranch; and Heritage Commons. As indicated on the attached interest sheet , the request from these developers total $10 million. As was the case in previous years , the County has developed a set of criteria to determine which developers will receive allocations . As you may recall , the criteria which the County considered included cost per square foot of proposed units , price range of homes , and which developers provided firm commitments to the County. The City' s participation in the County' s Mortgage Revenue Bond Program would in no way hinder the City from developing its own bond allocation in the future . In order for the City to participate in this program, the City Council must adopt the attached resolution authorizing the Mayor to execute the cooperation agreement between the County and the City and return this agreement to the County prior to February 13 , 1985 . This year the agreement is a continuing agreement which will remain in effect for future bond issues in years to come . Prior to each issue , the City has the option to not participate if it so chooses. Recommendation Since the Mortgage Revenue Bond Program can facilitate the provision of more affordable housing in the City of Dublin, it is Staff' s recommendation that the City Council adopt the attached resolution and authorize the Mayor to execute the agreement . ---------------------------------------------------------------------------- COPIES TO : AlITEM NO. � ALAMEDA COUNTY PLANNING DEPARTMENT MUMS AND COMMUMM DDEMELOPHIENT PG°30OG°3AN 224 West Winton Avenue, Room 169, Hayward, CA 94544 (415)881-6094 January 17, 1985 Mr. Richard Ambrose City Manager City of Dublin P.O. Box 2340 Dublin, CA 94568 Dear Richard: Subject: Cooperation Agreement Between County and City Regarding Issuance of Mortgage Revenue Bonds for Single Family-Housing Alameda County is again preparing to sell mortgage revenue bonds to finance the purchase of newly constructed single-family housing. The County expects to receive an allocation from the State Mortgage Bond Allocation Committee of approximately $40-60 million. Bonds will subsequently be issued in late February, 1985. Requests for funding in excess of t66 million have been received from interested developers in the County. We have not yet made a final selection of developers which will participate in the current program. However, for your information, attached is a listing of interested developers and projects located in your city. Once developers have been selected, you will be notified of the final list of projects in your city. A cooperation agreement between your city and the County is needed before the bonds are issued in order that proceeds may be used for projects in your city. The agreement allows the County to use the proceeds from its own bond issue under its own allocation from the State in your city. The city does not use any of its own present or future allocation, nor does the agreement limit the city from pursuing its own bond issue for other housing projects. To facilitate the issuance of single-family mortgage revenue bonds in future years, the cooperation agreement is a continuing agreement which will remain in effect for future bond issues. The County will notify your city prior to the development of each future issue so that you will have the opportunity to not participate in the bond program if circumstances dictate. If you are concerned about the continuing nature of this agreement, please contact the County HCD Program as soon as possible. Jan. 17, 1985 Letter Page Two I request that you present the enclosed cooperation agreement to your city council for their consideration at their next meeting-. We need six copies of the cooperation agreement and six copies of the City Council resolution executed with original signatures and returned by February 13, 1985. If you have any questions regarding the County bond program or cooperation agreement, please ,call Mr. Lane Bailey, .Housing and Community Development (HCD) Program, at 881-6094. l ye , truly yours, William H-.�Fral Planning Director WHF:jl 0163H ALAMEDA COUNTY SINGLE FAMILY MORTGAGE REVENUE BOND 1985 ISSUE LIST OF DEVELOPERS AND PROJECTS FOR THE CITY OF DUBLIN PRICE RANGE AMOUNT DEVELOPER PROJECT OF HOMES REQUESTED Morrison Homes Corp. Northwesterly of Dublin Rd. $116,000-125,450 $2,000,000 and San Ramon Road Coast Savings DBA Amador Valley Blvd. 64,500-127,000 $4,000,000 Heritage Commons at Stagecoach Kaufman & Broad, Inc. Silvergate Road $120,000-145,000 $4,000,000 0164H Page 1 rr 4 COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AND THE CITY OF DUBLIN THIS COOPERATIVE AGREEMENT (the "Agreement" ) , made and entered into as of , 1985.by and between the County of Alameda, a political subdivision of the State of California (the "County" ) , and the City of Dublin, a political subdivision of the State of California (the "City" ) , W I T N E S S E T H: WHEREAS, ' the County has determined -to engage in a home mortgage finance program pursuant to Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act" ) to make or acquire, directly or indirectly, loans to finance the construction or acquisition of homes in the County, all as provided for in the Act (the "Program" ) ; and WHEREAS, the County, pursuant to the Act, has adopted the Program by Ordinance and has determined to cooperate with the City pursuant to the Act in the exercise of its powers under the Act for purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1 . The terms used in this Agreement shall, for all purposes of this Agreement, unless otherwise defined herein, have the meanings assigned to such terms in the Act. SECTION 2 . The County agrees to undertake the Program and to issue revenue bonds therefor pursuant to the Act. SECTION 3 . The City hereby agrees to cooperate with the County in the exercise jointly or otherwise of their powers for the purpose of financing home .mortgages pursuant -to the Act by agreeing that the County shall exercise such powers to make or acquire home mortgages under the Program, all as more specifically set for,�h in the Act, with respect J . to property located within the geographic boundaries of the City. SECTION 4. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Agreement. Nothing in this Agreement shall prevent the County frcn entering into one or more agreements with other political subdivisions within the County, if deemed necessary and advisable to do so by the County. SECTION 5 . This Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of any bonds issued by the County pursuant to the Act in connection with the Program. SECTION 6 . , This Agreement shall continue in effect throughout the period during which the .County is empowered to engage in home mortgage finance programs pursuant to the -Act, provided however, that the City may decline to cooperate with the County under this Agreement, in connection with any such program of the County, upon notice to the County to that effect within 15 days of receipt of notice from the County of its intention to issue bonds for a home mortgage finance program. Such notice from the County shall be given to the City at least '31 days prior to the issuance of any such bonds. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day first above written. COUNTY OF ALAMEDA CITY OF DUBLIN By By Mayor ATTEST: ATTEST: By By City Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: By I By ' City Attorney 2 ✓Cl� V� D i COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AlQ •JHE �� 196? CITY OF DUBLIN 0,0 THIS COOPERATIVE AGREEMENT (the "Agreement") , made and entereg/Al into as of February 14, 1983 by and between the County of Alameda, a legal subdivision and body corporate and politic of the State of California (the "County") , and the City of Dublin, a municipal corporation of the State of California (the "City") , W I T N E S S E T H: WHEREAS, the County has determined to engage in a home mortgage finance program pursuant to Chapters 1-5 of Part 5 of Division 31 of the Health and Safety code of the State of California (the "Act") to make or acquire, directly or indirectly, loans to finance the construction or acquisition of homes in the County, all as provided for in the Act (the "Program") ; and WHEREAS, the County, pursuant to the Act, has determined to cooperate with the City pursuant to the Act in the exercise of its powers under the Act for purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1. The terms used in this Agreement shall, for all purposes of this Agreement, unless otherwise defined'herein, have the meanings assigned to such terms in the Act. SECTION 2. The County agrees to undertake the Program and to issue revenue bonds therefor pursuant to the Act as soon as practicable. SECTION 3. The City hereby agrees to cooperate with the County in the exercise jointly or otherwise of their powers for the purpose of financing home mortgages pursuant to the Act by agreeing that the County shall exercise such powers to make or acquire home mortgages under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City. SECTION 4. Upon request of the County and in accordance with such request, the City shall take all actions and execute all documents necessary or appropriate to obtain an entitlement allocation from the Mortgage Bond Allocation Committee pursuant to Section 50191(a) of the Health and Safety Code of the State of California and/or to assign such allocation obtained or its entitlement allocation under Section 50189(a) to the County pursuant to and in accordance with Section 50192 of said Code. Any fee charged by said Committe pursuant to Section 50195 of said Code shall be paid by the County or, if paid by the City, reimbursed by the County. SECTION 5. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Agreement. Nothing in this Agreement shall prevent the County from entering into one or more agreements with other cities within the County, if deemed necessary and advisable to do so by the County. SECTION 6. This Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of any bonds issued by the County pursuant to the Act in connection with the Program. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, all as of the day first above written. JCOTY ALAMED CITY OF D N � BY„ Ma Ap rn a - to Fo-n RICHARD 1 RE,County Counsel ty.. t • COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AND THE CITY OF DUBLIN THIS COOPERATIVE AGREEMENT (the "Agreement") , made and entered into as of February 14, 1983 by and between the County of Alameda, a legal subdivision and body corporate and politic of the State of California (the "County") , and the City of Dublin, a municipal corporation of the State of California (the "City") , W I T N E S S E T H: WHEREAS, the County has determined to engage in a home mortgage finance program pursuant to Chapters 1-5 of Part 5 of Division 31 of the Health and Safety code of the State of California (the "Act") to make or acquire, directly or indirectly, loans to finance the construction or acquisition of homes in the County, all as provided for in the Act (the "Program") ; and WHEREAS, the County, pursuant to the Act, has determined to cooperate with the City pursuant to the Act in the exercise of its powers under the Act for purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties_ hereto agree as follows: SECTION 1. The terms used in this Agreement shall, for all purposes of this Agreement, unless otherwise defined herein, have the meanings assigned to such terms in the Act. SECTION 2. The County agrees to undertake the Program and to issue revenue bonds therefor pursuant to the Act as soon as practicable. SECTION 3. The City hereby agrees to cooperate with the County in the exercise jointly or otherwise of their powers for the purpose of financing home mortgages pursuant to the Act by agreeing that the County shall exercise such powers to make or acquire home mortgages under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City. SECTION 4. Upon request of the County and in accordance with such request, the City shall take all actions and execute all documents necessary or appropriate to obtain an entitlement allocation from the Mortgage Bond Allocation Committee pursuant to Section 50191(a) of the Health and Safety Code of the State of California and/or to assign such allocation obtained or its entitlement allocation under Section 50189(a) to the County pursuant to and in accordance with Section 50192 of said Code. Any fee charged by said Committe pursuant to Section 50195 of said Code shall be paid by the County or, if paid by the City, reimbursed by the County. SECTION 5. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Agreement. Nothing in this Agreement shall prevent the County from entering into one or more agreements with other cities within the County, if deemed necessary and advisable to do so by the County. SECTION 6. This Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of any bonds i�­-' County pursuant to the Act in under penalty of perjury that the Chairman of the Board I hereby certify 9 al . and of Supervisors was duly authorized to execute this document on behalf, of the County of Alameda by a majority vote of the Board on M ARGovernment Code that a copy has been delivered to the Chairman as rovided y Section 25103. W Board of Supervisors Dated: Q 1qR� Clerk, WILLIAM ML IN, County of Alameda, State of California By Deputy