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HomeMy WebLinkAboutReso 1985-11925 (a) RESOLUTION NO. 11925 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF AGREEMENT FOR BOND FEASIBILITY STUDY SERVICES WITH EMPIRE ECONOMICS The City Council of the City of Chula Vista does hereby resolve as foll ows: WHEREAS, the City is considering undertaking certain proceedings for the issuance of Mortgage Revenue Bonds to finance a home mortgage program in the City, and it is desirable to employ a feasibility consultant in connection therewith. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, as follows: 1. That certain agreement by and between the City and Empire Economics for bond feasibility services in connection with said bond issue, a copy of which is attached, is hereby authorized. The Mayor is hereby authorized and directed in the name and on behalf of the City to execute said agreement. 2. This resolution shall take effect immediately. Presented by :id" -', " ' /' " , ", '7 ,.". -- I --- , ",-"! .' . ,/ ' ,,' , '(' f/ ~//---- Paul G. Desrochers, Community Development Director Approved as to form by ", >/ a..~~ i ty Attorney -.--,,' CHULA VISTA, CALIFORNIA, this 19 85 ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF 5th day of February , by the following vote, to-wit: AYES: Councilmen NAYES: Councilmen ABSTAI N: Councilmen ABSENT: Councilmen Moore, Cox, Malcolm, McCandliss, Scott None None None lor,to (l. fn Mayor(pf City of Chura Vista ATTE STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chura Vista, California, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 11925 ,and that the same has not been amended or repealed. DATED City Clerk (seal) CC-660 _. i ~ 0: Jenni.e Tt,';", Fnia~z, C!ty ClerK P. O. Box J087 Chula Vista, California 92012 AGREEMENT FOR MARKET/FEASIBILITY STUDY SERVICES RESIDENTIAL MORTGAGE FINANCING PROGRAM CITY OF CHULA VISTA Thi s agreement, entered into thi s 5th day of February, 1985, by and between the City of Chula Vista, Califorma, a political subdivision of the State of California (the "City") and Joseph 1. Janczyk, PhD, an economic consultant, DBA as Empire Economics ("Consultant"); WIT N E SSE T H ---------- WHEREAS, the Ci ty is undertaki ng a home mortgage fi nanci ng program (the "Program") within the City of Chula Vista and proposes to finance the cost thereof by a Home Mortgage Revenue Bond proceeding; WHEREAS, Consultant is qualified and experienced in performing mortgage revenue bond studies for cities/counties located throughout Southern California; WHEREAS, the public interest, economy and general welfare will be served by this agreement; NOW, THEREFORE, IT IS AGREED, as follows: A. Duties. Consultant shall provide the following services: 1. Conduct, publ ish and provide four copies of a written Market/Feasi bi 1 i ty Study for the Chul a Vi sta Mortgage Revenue Bond Program for 1985 which will determine the optimal portfolio of projects for the Mortgage Revenue Bond Program, based upon the marketabil ity and feasibil ity of the candi date projects. This would be accomplished through a comprehensive and professional analysis of the following factors: general economic trends, housing market demand and supply conditions, both presently and in the future, and the economi c feasi bi 1 ity of the projects. The components of the study will include: a. Introduction Description of Chula Vista Description of the candidate projects Methodology Delineation of the market areas R- 11925 b. Housing Demand in the Project Market Area Demographic/economic trends in San Diego County Composition and growth potential of San Diego County's economic bases Forecast of housing demand for the project market regi on Distribution of housing demand in the project market area, housing type and price ranges Adj ustments to demand for both the maximum housi ng prices and also the maximum incomes for purchasers c. Housing Supply and Capture Rate for the Candidate Projects Comparable projects in the project market area Characteristics of the comparable projects Competitiveness of the candidate projects Projects in prior mortgage revenue bond issues Capture rates for the candidate projects d. Feasibility of the Mortgage Revenue Bond Program Adjusted demand for the candidate projects (Section B) Capture rate for the candidate projects (Section C) Absorptions-schedule and sell out time for the candidate projects Feasibility of the Mortgage Revenue Bond Program e. Special Supplemental Topic Status of projects in the pri or Chul a Vi sta Revenue Bond Program 2. Determi ne the appropri ate medi an income fi gure for Chul a Vi sta to be used to calculate program income limits. 3. Determine the appropriate average area home sales price to be used to calculate program sales price limits. 4. Communicate as necessary with City staff, program underwriters, and the bond rati ng agency sel ected for the program for the purpose of securing bond rating. 5. Submit "Summary" for Official Statement. 6. Provide other necessary services generally expected of Market/Feasibility study consultant not listed above. - 2 - o-.~S \' \?-' B. Perfonnance. The following shall pertain to perfonnance under this agreement: 1. The duties of this agreement shall be perfonned to the satisfaction of the City within 28 working days of the execution date of thi s agreement. Progress reports wi 11 be provi ded to the City on request. C. 2. The study shall be conducted directly by Joseph T. Janczyk, PhO. com~ensati on. Compensati on for the specifi ed servi ces wi 11 be as fol ows: Servi ce Fee Market/Feasibility Study and prior bond issue Summary for Official Statement Compensation shall be paid as follows: a retainer of paid upon execution of this agreement; $3,000 when duties are 50% completed; and a final payment of $500. O. Exceptions. The following services are exempt from the compensations specl fi ed above. Compensati on for these servi ces wi 11 be negoti ated between the City and Consultant: $g, 500.00 500.00 $6,500 to be consultant's 1. Travel to San Francisco, Sacramento, or New York in perfonnance of duties specified in this agreement and subject to approval by City. 2. Expansi on/amendment of "Summary" for the Offi ci al Statement as a result of si gnifi cant changes in program parti cipants or projects. 3. Additional copies beyond four of the Market/Feasibility Study. In witness whereof, the parties hereto have caused these presents to be executed by their respective officers and representatives thereunto duly authorized, the day and year first above written. CITY OF CHULA VISTA EMPIRE ECONOMICS G"gb~ L; ~. By: WPC 1399H - 3 - C\ d-- ~ Q.-/\\ 10 EXHIBIT A SUMMARY OF PROGRAM GUIDELINES AND REQUIREMENTS FOR 1983 SINGLE FAMILY MORTGAGE REVENUE BOND ISSUE Mortgage: 30 year fixed rate, level amortization mortgages Loan-to-Value: 95% maximum El igible Mortgagors: Each mortgagor must (1) be a "first time homebuyer", i.e., an individual (s) who has not had a present ownership interest in a principal residence, including factory-made housing permanently fixed to real property, at any time duri ng the three-year peri od immedi ately pri or to the closing of the home mortgage. A person other than the mortgagor who is 1 i abl e on a note secured by a mortgage need not meet the Pr09ram requirements, provided that the person has no ownership interest in the property and will not reside there. Maximum Household Income: Household income is the adjusted gross income for the current calendar year (as calculated for Federal income tax purposes) of a mortgagor, together with the aggregate adjusted gross income simi 1 arly cal cul ated of all other adul t persons who intend to reside permanently with the mortgagor in the home. A mortgagor's household income may not exceed 150% of median household income in the case of a mortgagor who wi 11 be the fi rst occupant of the home, and 120% of median household income in the case of a mortgagor who will not be the first occupant of the home. Median income limitations will be updated periodically throughout the term of the bond issue. 1984 Medi an Income New Resi dences 150% Income Existing Residences 120% Income Existing Residences 100% Income $29,619 $44,429 $35,543 $29,619 Acquisition Cost Limitation: Acquisition Cost means the cost of acqulrlng the home from the seller as a completed unit. The term does not include usual and reasonable settlement or financing costs, but does include the amount of any 1 ien or assessment to which the home is subject. \~)..~ ~_\ The Acqusition Cost may not exceed 110% (120% in the Targeted Areas) of the Average Area Purchase Price. Acquisition Cost for Existing and New Homes in Non-Targeted Areas located in Chula Vista may not exceed the following: New Home in a Non- Ta rgeted Area 137,916 Existing Home in a Non-Targeted Area 109,866 Assumptions Home mortgages are assumable, provi ded that assumptors are creditworthy and meet all Program requirements, based upon the facts as they exist at the time of the assumption as if the home mortgage was being made for the first time. Underwriting Standards The borrower's maximum payment ratios may not exceed 33% and 38%. In the event of a mortgage or note featuring non-owner occupant co-signers or continuing guarantors, the income and credit of the owner-occupant(s) will be the primary consideration. The income and credit of a member of the borrower's immediate family or non-related co-signer may also be considered in addi ti on to that of the owner-occupant as long as both are obl i gated on the note. If the income and credit of a co-signer is used, a separate loan application for that individual must be submitted. For loans featuring non-owner occupant co-s i gners or conti nui ng guarantors, the mortgage payment and total debt ratios of the owner-occu ant mort a or may not exceed 38% and respectl ve y. WPC 0671X - 2 - ~~c; \d'-- \\