HomeMy WebLinkAboutRDA Packet 1996/01/09
Notice is hereby given that the Mayor/Chairman of the Redevelopment Agency has called and will convene a special
joint meeting of the Redevelopment Agency/City Council on Tuesday, January 9,1996 at 4:00 p.m., immediately
following the regular City Council meeting, in Council Chambers, located in the Public Services Building, 276
Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following:
~man
Tuesday, January 9, 1996 Council Chambers
6:00 p.m. Public Services Building
(immediately following the City Council meeting)
Joint Meeting of the Redevelopment Agencv/Citv Council
of the Citv of Chula Vista
CALL TO ORDER
1. ROLL CALL: Agency/Council Members Alevy -' Moot -' Padilla_,
Rindone -' and Chair/Mayor Horton -
2. APPROVAL OF MINUTES: . ,'c,.',,:o '"n-er co~ " d ¡Jer"'" ~ ~:',t I am
eMloe,; C¡ly of C'.,-, ,:s,a m the
ct. '",..eiv,m,'c,.. ~'cpartment and that I posted
BUSINESS F,','en",,:::o'ice ~n '::he ¡';u,lletin B"':rd at the
Pu::>Lo 'catV,ces 8wlGlng and at City Hall on
nnE'~SIGNED ~ b. ~
3. WRITTEN COMMUNICATIONS: None.
4.A. COUNCIL
RESOLUTION 18178 AUTIIORIZING AMENDMENT OF THE EXCHANGE AGREEMENT
BETWEEN THE CITY OF CffiJLA VISTA, THE REDEVELOPMENT
AGENCY AND SWEETWATER UNION IDGH SCHOOL DISTRICT TO
EXTEND THE CLOSE OF ESCROW FROM DECEMBER I, 1995 TO
JUNE 1, 1996 FOR THE VETERANS HOME PROJECT--The City,
Redevelopment Agency, and Sweetwater Union High School District entered
into a Memorandum of Understanding regarding Agency's proposed acquisition
of the Medical Center Drive site owned by the District in exchange for the
AgencY-<Jwned Windmill Farms site on Third Avenue. It is requested the
Agreement be amended to extend the close of escrow. Staff recommends
approval of the resolutions.
B. AGENCY
RESOLUTION 1481 AUTIIORIZING AMENDMENT OF THE EXCHANGE AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY, THE CITY OF CffiJLA
VISTA, AND SWEETWATER UNION IDGH SCHOOL DISTRICT TO
EXTEND THE CLOSE OF ESCROW FROM DECEMBER I, 1995 TO
JUNE 1, 1996 FOR THE VETERANS HOME PROJECT
Agenda -2- January 9, 1996
5.A. COUNCIL
RESOLUTION 18179 APPROVING THE APPLICATION TO THE CALIFORNIA DEBT LIMIT
ALLOCATION COMMITTEE (CDLAC) FOR AN ALLOCATION OF
QUALIFIED MORTGAGE BONDS AND ASSIGNING ITS ALLOCATION
TO THE REDEVELOPMENT AGENCY TO IMPLEMENT; ELECTING
TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT
CERTIFICATES; CERTIFYING THE A V AILABILITY OF FUNDS FOR
THE REQUIRED PERFORMANCE DEPOSIT OF $200,000 AND
AUTHORIZING ITS EXECUTION BY THE EXECUTIVE DIRECTOR--
Staff recommends the City apply for a $20,000,000 Mortgage Revenue Bond
allocation which would be converted by a ratio of 4: 1 resulting in $5,000,000
to be issued as approximately 202 MCC certificates. Staff recommends
approval of the resolutions.
B. AGENCY
RESOLUTION 1482 APPROVING THE APPLICA nON TO THE CALIFORNIA DEBT LIMIT
ALLOCATION COMMITTEE (CDLAC) FOR AN ALLOCATION OF
QUALIFIED MORTGAGE BONDS AND ITS ALLOCATION TO THE
REDEVELOPMENT AGENCY ACCEPTING CITY'S ASSIGNMENT TO
IMPLEMENT; ELECTING TO EXCHANGE SAID ALLOCATION FOR
MORTGAGE CREDIT CERTIFICATES; CERTIFYING THE
A V AILABILITY OF FUNDS FOR THE REQUIRED PERFORMANCE
DEPOSIT OF $200,000 AND AUTHORIZING ITS EXECUTION BY THE
EXECUTIVE DIRECTOR
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within
the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the
Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to
address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action. Your time is limited to three minutes per speaker.
OTHER BUSINESS
6. DIRECTOR'S/CITY MANAGER'S REPORT(S)
7. CHAIR'S/MAYOR'S REPORTlS)
8. AGENCY/COUNCIL MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to a Joint Regular Redevelopment Agency/City Council Meeting on January 16, 1996 at
6:00 p.m., immediately following the City Council meeting, in the City Council Chambers.
Agenda -3- January 9, 1996
......
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request
individuals who require special accommodations to access, attend, and/or participate in a City meeting,
activity, or service request such accommodation at least forty-eight hours in advance for meetings and
five days for scheduled services and activities. Please contact the Secretary to the Redevelopment
Agency for specific information at 619.691.5047 or Telecommunications Devices for the Deaf (TDD)
at 619.585.5647. California Relay Service is also available for the hearing impaired.
[C:\ WP5 t \AGENCY\AGENDAS\OI,O9,96.AGD]
JOINT COUNCIL/REDEVELOPMENT AGENDA STATEMENT
Item 1tJufio
Meeting Date 01109/96
COUNCIL: RESOLUTION /?/ 7; AUTHORIZING AMENDMENT OF THE
EXCHANGE AGREEMENT BETWEEN THE CITY OF CHULA VISTA, THE
REDEVELOPMENT AGENCY AND SWEETWATER UNION HIGH SCHOOL
DISTRICT TO EXTEND THE CLOSE OF ESCROW FROM DECEMBER 1,
1995 TO JUNE 1, 1996 FOR THE VETERANS HOME PROJECT
AGENCY: RESOLUTION /¡,ff¡ AUTHORIZING AMENDMENT OF THE EXCHANGE
AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY, THE CITY
OF CHULA VISTA, AND SWEETWATER UNION HIGH SCHOOL
DISTRICT TO EXTEND THE CLOSE OF ESCROW FROM DECEMBER 1,
1995 TO JUNE 1, 1996 FOR THE VETERANS HOME PROJECT
SUBMITTED BY: C~";¡y IJo"loptm'" D""toe C- '), ~
REVIEWED BY: John D. Goss, Executive Director~ '(J fi
(4/5ths Vote: Yes- No..llJ
BACKGROUND:
On October 25, 1994 the Chula Vista City Council and Redevelopment Agency conceptually
approved the donation of 20 acres of land currently owned by the Sweetwater Union High
School District and the exemption of the majority of development fees in support of the Veterans
Home project. On October 27, 1994 the Governor's Task Force voted in favor of
recommending the Medical Center Drive site in Chula Vista as the location for the development
of the next Veterans Home facility. On November 14, 1994, the Chula Vista Redevelopment
Agency, the City of Chula Vista, and the District entered into a Memorandum of Understanding
regarding the Agency's proposed acquisition of the Medical Center Drive site owned by the
District in exchange for the Agency-owned Windmill Farms site on Third Avenue and other
consideration to make up the difference in property value.
On September 7, 1995 the District Board of Trustees approved the Property Exchange
Agreement ("Agreement") implementing the earlier MOU. On September 26, 1995, the City
Council and the Redevelopment Agency also approved the Agreement.
RECOMMENDA nON: That the Redevelopment Agency approve the resolution to amend
the Exchange Agreement to extend the close of escrow from December 1, 1995 to June 1, 1996
for the Veterans Home project.
1~/
Page 2, Item ~C(, .¡..-b
Meeting Date 01/09/96
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
On October 19, 1995 escrow was opened with Spring Mountain Escrow for the Veterans Home
project with a scheduled closing date of December 1, 1995. As a result of delays in
predevelopment funding authorization in the State legislature and ongoing negotiations between
City and State staff on the tenus of the property transfer, escrow was not ready to close on
December 1st. Staff met with the City Attorney's office, and it was detenuined that it should
be recommended that the escrow closing date should be extended to June 1, 1996 to preserve
flexibility in the event of unexpected delays in the legislature regarding funding for the project
or in finalizing negotiating the specific tenus for the transfer of the Hospital Site to the State.
Section 2.4 (c) of the Agreement stated that the close of escrow would be no later that December
1, 1995, unless otherwise agreed by the parties in writing. Staff has been in contact with a
representative of SUHSD and received a written agreement to amend the Exchange Agreement
to extend the close of escrow to June 1, 1996.
FISCAL IMPACT; Amendment to the Exchange Agreement to extend the close of escrow
will not have any fiscal impact on the Veterans Home project.
A:\Escrow.vet
þ/r~
RESOLUTION / J'/7 fl
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING
AMENDMENT OF THE EXCHANGE AGREEMENT BETWEEN THE CITY OF CHULA
VISTA, THE REDEVELOPMENT AGENCY AND SWEETWATER UNION HIGH SCHOOL
DISTRICT TO EXTEND THE CLOSE OF ESCROW FROM DECEMBER 1, 1995 TO JUNE
1, 1996 FOR THE VETERANS HOME PROJECT
WHEREAS, on October 25, 1994 the Chula Vista City Council and Redevelopment
Agency conceptually approved the donation of 20 acres of land currently owned by the
Sweetwater Union High School District and the exemption of the majority of development fees
in support of the Veterans Home project, and
WHEREAS, on October 27, 1994 the Governor's Task Force voted in favor of
recommending the Medical Center Drive site in Chula Vista as the location for the
development of the next Veterans Home facility, and
WHEREAS, on November 14, 1994, the Chula Vista Redevelopment Agency, the City
of Chula Vista, and the District entered into a Memorandum of Understanding regarding the
Agency's proposed acquisition of the Medical Center Drive site owned by the District in
exchange for the Agency-owned Windmill Farms site on Third Avenue and other consideration
to make up the difference in property value, and
WHEREAS, on September 7,1995 the District Board of Trustees approved the Property
Exchange Agreement implementing the earlier MOU, and
WHEREAS, on September 26, 1995 the City Council and the Redevelopment Agency
also approved the Agreement, and
WHEREAS, on October 19, 1995 escrow was opened with Spring Mountain Escrow
for the Veterans Home project with a scheduled closing date of December 1, 1995.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby
find, order, determine and resolve as follows:
1. An Amendment to the Exchange Agreement between the City of Chula Vista,
Redevelopment Agency, and the Sweetwater Union High School District is hereby approved
to extend the close of escrow from December 1, 1995 to June 1, 1996 for the Veterans
Home project.
2. The Mayor is authorized to sign such an amendment in a final form approved by the
City Attorney.
PRESENTED BY: APPROVED AS TO FORM BY:
@L, ~~
Chris Salomone
Community Development Director
1-3
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J/-1
RESOLUTION /t/ð'1
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING AMENDMENT OF THE EXCHANGE AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY, THE CITY OF CHULA VISTA, AND SWEETWATER UNION
HIGH SCHOOL DISTRICT TO EXTEND THE CLOSE OF ESCROW FROM DECEMBER 1,
1995 TO JUNE 1, 1996 FOR THE VETERANS HOME PROJECT
WHEREAS, on October 25, 1994 the Chula Vista City Council and Redevelopment
Agency conceptually approved the donation of 20 acres of land currently owned by the
Sweetwater Union High School District and the exemption of the majority of development fees
in support of the Veterans Home project, and
WHEREAS, on October 27, 1994 the Governor's Task Force voted in favor of
recommending the Medical Center Drive site in Chula Vista as the location for the
development of the next Veterans Home facility, and
WHEREAS, on November 14, 1994, the Chula Vista Redevelopment Agency, the City
of Chula Vista, and the District entered into a Memorandum of Understanding regarding the
Agency's proposed acquisition of the Medical Center Drive site owned by the District in
exchange for the Agency-owned Windmill Farms site on Third Avenue and other consideration
to make up the difference in property value, and
WHEREAS, on September 7, 1995 the District Board of Trustees approved the Property
Exchange Agreement implementing the earlier MOU, and
WHEREAS, on September 26, 1995 the City Council and the Redevelopment Agency
also approved the Agreement, and
WHEREAS, on October 19, 1995 escrow was opened with Spring Mountain Escrow
for the Veterans Home project with a scheduled closing date of December 1, 1995.
NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
does hereby find, order, determine and resolve as follows:
1. An Amendment of the Exchange Agreement between the Redevelopment Agency,
City of Chula Vista, and the Sweetwater Union High School District is hereby approved to
extend the close of escrow from December 1, 1995 to June 1, 1996 for the Veterans Home
project.
2. The Mayor is authorized to sign such an amendment in a final form approved by the
City Attorney.
PRESENTED BY: APPROVED AS TO FORM BY:
&l ~~o
Chris Salomone
Community Development Director
1--5
This page blank.
1-10
JOINT COUNCIL/REDEVELOPMENT AGENCY AGENDA STATEMENT
Item S~-f6
Meeting Date 01109/96
COUNCIL: RESOLUTION APPROVING THE APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE (CDLAC) FORAN
ALLOCATION OF QUALIFIED MORTGAGE BONDS AND ASSIGNING ITS
ALLOCATION TO THE REDEVELOPMENT AGENCY TO IMPLEMENT;
ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT
CERTIFICATES; CERTIFYING THE AVAILABILITY OF FUNDS FOR THE
REQUIRED PERFORMANCE DEPOSIT OF $200,000 AND AUTHORIZING
ITS EXECUTION BY THE EXECUTIVE DIRECTOR
AGENCY; RESOLUTION APPROVING THE APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE (CDLAC) FORAN
ALLOCATION OF QUALIFIED MORTGAGE BONDS AND ITS
ALLOCATION TO THE REDEVELOPMENT AGENCY ACCEPTING CITY'S
ASSIGNMENT TO IMPLEMENT; ELECTING TO EXCHANGE SAID
ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES; CERTIFYING
THE AVAILABILITY OF FUNDS FOR THE REQUIRED PERFORMANCE
DEPOSIT OF $200,000 AND AUTHORIZING ITS EXECUTION BY THE
EXECUTIVE DIRECTOR
SUBMITTED BY: Co=mli<y D<.dop~' Dire~. ~,
REVIEWED BY: Executive Director J~ ,
BACKGROUND: ~ (4/5ths Vote: Yes_No..K.)
The Mortgage Credit Certificate Program (MCC Program) was authorized by Congress in the
Tax Reform Act of 1984, as an alternative to mortgage revenue bond-backed financing as a tool
for providing home ownership assistance to lower income households. Applications for
Mortgage Credit Certificates issuing authority are made by local agencies to the California Debt
Limit Allocation Committee (CD LAC).
Staff recommends that the City of Chula Vista apply for a $20,000,000 Mortgage Revenue Bond
allocation. With $5,000,000, the City could issue approximately 202 Mortgage Credit
Certificates. In reality, MCCs are an allocation of Private Activity Bonds which are converted
to Mortgage Credit Certificates according to a federal conversion ratio required by the Tax
Reform Act of 1986. The conversion ratio is 4 to 1. Therefore, in order to receive authority
to issue $5,000,000 of Mortgage Credit Certificates, the City must apply for an allocation of
$20,000,000 of private activity bonds. The CDLAC application is a standard document similar
to the 1995 application, copy of which is included as Attachment A.
Since the inception of the MCC Program in 1991, the City has received $28,813,000 in
Mortgage Revenue Bonds, which converted into MCCs equals approximately 360 certificates
-S -/
Page 2, Item SCl~
Meeting Date 01/109/96
-
which have been used to aid first-time homebuyers in the City of Chula Vista.
RECOMMENDATION:
That the City Council and Redevelopment Agency adopt the resolutions, authorizing the
following: (1) City/Redevelopment Agency approve the CDLAC Application for an allocation;
(2) City Assign its Allocation and the MCC Program to the Redevelopment Agency of the City
of Chula Vista; (3) the Redevelopment Agency Accept the Assignment of the MCC Program;
(4) the Redevelopment Agency Set-Aside 10% of its Allocation for Low Income Households;
(5) the Redevelopment Agency Certify the Availability of Funds for the Performance Deposit;
and (6) the Redevelopment Agency Certify the Agreement to Forfeit Deposit.
BOARDS/COMMISSIONS RECOMMENDATION: The City's Housing Advisory Committee
strongly supports the MCC Program.
DISCUSSION:
A Mortgage Credit Certificate (MCC) is a document awarded to a home buyer, whose income
is below 110% of the area median income or $50,485, which allows the buyer a credit each year
on his/her federal income tax in an amount equal to 20% of the mortgage interest paid for that
year. The MCC reduces, through a direct credit, the borrower's Federal income tax liability,
thus increasing the income available to qualify for a mortgage loan.
A MCC can have the effect of allowing lower income buyers to qualify for higher loan amounts.
As a result, the lower income buyers can afford to buy within the City of Chula Vista. The
certificate is registered with the IRS; it is not transferable, and it is revoked if the certificate
holder moves out of the qualifying home.
Under the proposed MCC Program for the City of Chula Vista, a family applies for a MCC
through one of the participating lenders while applying for the loan to purchase the home. The
potential borrower pays a non-refundable $200.00 to the lender at the time the application is
made, and the lender forwards $150.00 of the $200.00 fee to the Community Development
Department. Community Development Staff will review the application for program compliance
and reserve a Mortgage Credit for the buyer; the MCC is issued at the close of escrow.
In order to assist low-income families (those families earning 80% or less of area median
income.) staff recommends that 10% of the allocation be set aside for low-income families. A
concerted effort will be made to identify and link qualified buyers and housing stock to meet the
goals of the low-income objective. Should it prove infeasible to reach this objective, the
application includes an option to release these funds from the low income restriction by the
following formula: One-half of unexpended set-aside funds released after twelve months, and
the remainder at the end of eighteen months.
s-;¿
Page 3, Item ~j
Meeting Date 011109/96
-
Home buyers in Chula Vista, particularly those purchasing their first home, suffer from a large
disparity between income and housing affordability. A MCC Program is an excellent way to
bridge this existing gap. A MCC Program is considered preferable to a single family bond
program in Chula Vista because it allows home buyers the flexibility to choose from both newly
constructed homes and lower priced existing housing stock.
According to federal guidelines, program participation is open to all interested mortgage brokers
and lenders. Lenders consider the MCC Program an effective way to increase first-time buyer
business, and the Program also assists lenders in fulfilling their requirements, under the
Community Reinvesting Act. Staff has already received support for a MCC Program in Chula
Vista. Currently, there are 62 lenders participating in the City of Chula Vista MCC Program.
Since the MCC Program will be funded by Low and Moderate Income Housing Fund, the City
Council must give authority to the Redevelopment Agency to implement and administer the
MCC Program. The California Debt Limit Allocation Committee has stated that the MCC
Program must first be approved by the City of Chula Vista City Council, and then the authority
must be given to the Agency to implement the Program. Therefore, it is staff's recommendation
that implementing authority be given to the City of Chula Vista Redevelopment Agency.
FISCAL IMPACT:
The California Debt Limit Allocation Committee requires an application fee of $4,700.00 and
a Performance Deposit of $200,000 (I % of the requested allocation). The Performance Deposit
is a requirement of California Government Code Section 8869.84(e) which attempts to insure
that the allocation is used properly. The Performance Deposit requirement is satisfied by the
Agency certifying the availability of $200,000 for this purpose. The Performance Deposit of
$200,000 is currently available in the Low/Moderate Income Housing fund.
The full amount of the Performance Deposit should be released by the California Debt Limit
Allocation Committee as long as the first Mortgage Credit Certificate is issued within 120 days
of receiving an allocation. Staff will meet this deadline.
Since the MCC Operating Manual mandates that participating lenders pay a fee and all applicants
for a MCC pay an application fee, the $4,700 CDLAC application fee will be recaptured from
MCC Program revenues.
5-3
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-5-f
ATTACHMENT A
CALIFORNIA DEBT LIMIT ALLOCA nON COMMITTEE
APPLICA TION FOR 1995 ALLOCATION OF PRIVATE ACTIVITY BONDS
FOR EXISTING MORTGAGE CREDIT CERTIFICATE PROGRAMS
---------------------------------------------------------------------------------------------------------------------------------------
PART I - ISSUER (APPLICANT)jADMINISTRATOR INFORMATION
---------------------------------------------------------------------------------------------------------------------------------------
I. Name, address, contact person and telephone number of the issuer (applicant) of the MCCs
and the filer of the conversion election:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Contact Person: Judith Foland
(619) 691-5047
Issuer's federal employer identification number: 95-6000690
2. Agency name, address, contact person and telephone number of program administrator if
different from above:
Redevelopment Agency of the City of Chula Vista
276 Fourth Avenue
Chûla Vista, CA 91910
Contact Person: Judith Foland
(619) 691-5047
3. County: San Diego
4. A11i£h a list of the participating jurisdictions if this is a multiple jurisdictional program. If
this is a change from the current program participation, indicate what constitutes the change.
Issuers must certify In PART V that all necessary resolutions and publicly adopted documents
are in place, or will be in place prior to receiving allocation. If the program is adding ~
jurisdIctions, publicly adopted documents for each of the new partIcipants must be provIded.
When were publicly adopted documents for the continuing participants last submitted to
CDLAC (indicate month and year)? N/A
5. Name, address, contact person and telephone number of tax counsel firm:
Orrik, Herrington & Sutcliff
Old Federal Reserve Bank Building
400 Sanome Street
San Francisco, CA 94111
Contact Person: Mr. Perry Israel
5~5
~ MCC-Existing/Rev. 12/94
6. Name, address, contact person and telephone number of financial advisor firm, if applicable:
The City of Chula Vista does not use a financial advisor.
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PART II - ALLOCATION/PROGRAM INFORMATION
---------------------------------------------------------------------------------------------------------------------------------------
1. Amount of allocation requested: $10,000,000
2. Date MCCs will be advertised: Apri 1 22, 1995
3. Proposed issuance date of first MCC: July 21, 1995
4. Number of units expected to be financed:
30 newly-constructed units
95 resale units
'0 rehabilitated units
125 Total
5. Are the above numbers estimates or actual program requirements imposed by the ~?
The above estimates are based on current issuance rates of Mortgage
Credit Certificates.
6. What type of housing is expected to be financed?
The type of housing expected to be financed includes Single-Family homes,
townhomes, and condominiums;
7. If program contains a reservation for new construction, ¡11A£b. a) schedule of when new
homes or developments are expected to become available, and b) description of the
mechanism which is in place to use the allocation if construction is postponed or otherwise
~~ .
No reservations for new construction has been established at this time.
5-6
X MCC-Existing/Rev. 12/94
8. Pro"ram Performance
a) Provide the following information relating to previous MCC allocations:
Allocation Allocation
Month/Year Amount Used MCCs Issued
11/94 5,800,000 5,160,000 50
b) ~ explanation for any unused allocation, and the anticipated usage of allocation
during the remaining term of the program.
c) Current ~ monthly rate of issuance over the past 6-9 months: 1Oimonth
d) ,Expected average monthly rate of issuance: 12-15/month
e) Explain any differences between the current and expected rates of issuance.
The Community Development Department has been actively promoting the MCC
Program by attending Board of Realtors meetings and through the newspaper
medium.
f) Number of homes sold in past year which were within the purchase price limits (identify
the source): 841 homes were sold in the City of Chula Vista ranging from $90,000
to $184,002. All these properties fall within the price guidelines for both
targeted and non-targeted areas.
Source: San D~ego Association of Realtors
---------------------------------------------------
PART III - PUBLIC BENEFITS INFORMATION
----------------------------------------------------------------------------------------------------
1. Maximum Purchase Prices. For purchase price requirements, refer to Internal Revenue Code
Section 143(e). The proposed maximum limits are:
Non-Target Area Target Area
Unit Average Area Maximum Maximum
~ Purchase Price' Purchase Prices Purchase Prices
New Units $166,592 $ 149,932 $183,251
Existing Units $185,813 $ 167,231 $204,394
'This is (check one): -LIRS safe harbor limitations
_as determined by special survey (~ copy of survey along
with bond counsel confirmation that survey methodology complies
with federal law)
5-7
7i: MCC-Existing/Rev. 12/94
2. Maximum Income Limitations. For income requirements, refer to Internal Revenue Code
Section 143. Please provide the information requested below.
a. Area median income: $45,400
Above median income is (check one); _statewide median _county median
-LMSA/PMSA median _local median as determined by special study (attach copy of
study along with bond counsel confirmation that study methOdology complies with
federal law)
b. Are there target areas in the jurisdiction(s)? L Y es _No
If yes, percent of bond proceeds reserved for target areas; 20%
c. The proposed maximum limits are:
Non-Target Area Target Area
Household Size ~
1-2 persons $45,400 $52,210- - $54,480 $63,560
3+ persons
3. PrOl!ram Reservations
If applicable, describe any reservations for lower purchase prices and/or lower incomes.
Under the MCC Program, 10% of the allocation is reserved for persons
earning at or below 80% of the median income. ($36,320)
4. Based on past program experience, what is the ~ purchase price and income of an MCC
recipient?
Average purchase price - $134,900
Average income - $ 38,490
.
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PART IV - OTHER RELATED INFORMATION
----------------------------------------------------------------------------------------------------------------------------------
I. ~ description of applicant's financial participation in the program.
See "Attachment I"
2. ~ explanation of how this program helps attain the housing goals of the participating
juriSdiction(s).
See "Attachment I"
S-ð'
~ MCC-Existing/Rev. 12/94
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PART V - CERTIFICATIONS/SIGNATURE
---------------------------------------------------------------------------------------------------------------------------------------
The following certifications must be made by an official of the Issuer of the MCCs. This
application must contain the original signature of an official who has the knowledge and
information to make these certifications;
I HEREBY CERTIFY THAT THE NECESSARY PUBLICLY ADOPTED DOCUMENTS OF ALL
CONTINUING PARTICIPATING JURISDICTIONS ARE DULY ADOPTED AND IN EFFECT AS
OF THIS DATE, OR WILL BE DULY ADOPTED AND IN EFFECT ON THE DATE WHICH THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE WILL ACT ON THIS REQUEST FOR AN
ALLOCATION OF THE 1995 VOLUME CAP ON PRIVATE ACTIVITY BONDS.
I FURTHER CERTIFY THAT ALL CURRENT COUNCIL AND/OR BOARD MEMBERS OF THE
PARTICIPATING JURISDICTIONS ARE AWARE OF THIS APPLICATION.
I FURTHER CERTIFY THAT THE INFORMATION PROVIDED IN THIS APPLICATION IS
TRUE, CORRECT, AND COMPLETE.
at f). d~ 5/10/95
Sig~ Date
C y Manaqer
Title
.
"
S- 'J
X MCC-Existinl!/Rev. 12/Q4
APPLICATION DOCUMENTS CHECKLIST
This checklist is provided to assist you in making sure that a completed application package is filed
with the Committee.
Your application package must contain the following:
--1- $300 initial filing fee
~ ~ Deposit Certification Form for an amount equal to 1% of the allocation being
requested not to exceed $250,000
~ Completed and ~ application form
X Attachments
-
~ Exhibits, if applicable
X _Draft
- Resolution(s), if applicable: _Adopted
Check Committee's Procedures for final filing date of ~ resolution(s).
~ Cooperative Agreements, 'if applicable: _Draft _Signed
Check Committee's Procedures for final filing date of ~ cooperative agreements.
~ MCC program manual, if applicable
~Duplicate copy (NOTE: Any subsequent mailings of additional application materials should
be in duolicate.
S-/o
)£= MCC-Existing/Rev. 12/94
ATTACHMENT #1
Part IV - OTHER RELATED INFORMATION
1. The City is currently establishing a First-time Home Buyer Assistance Program to work
in conjunction with the Mortgage Credit Certificate Programto assist low-income families
or individuals qualify for a mortgage loan.
2. This program will help those families or individuals who are unable to qualify for a
mortgage loan by offering assistance, either in the form of a silent second or down
payment assistance.
5-//
DEPOSIT CER TIFICA TION FORM
FOR AN APPLICATION FOR 1995 ALLOCATION OF PRIVATE ACTIVITY BONDS
California Debt Limit Allocation Committee
915 Capitol Mall, Room 471
Sacramento, CA 95814
(916) 653-3255
CERTIFICATION OF THE City ,of Chula Vista (Applicant)
REGARDING AN APPLICATION FOR PRIVATE ACTIVITY BOND ALLOCATION
In connection with the following private activity bond application:
APPLICANT: City of Chula Vista
AMOUNT OF ALLOCATION REQUESTED: $10.000.000
PROJECT NAME/PROGRAM TYPE: Mortgage Credit Certificate Program
the undersigned officer of the City of Chula Vista
(Applicant) hereby certifies as follows:
I. I, John D., Goss (Name). am the,
Citv, Manaqer, """" ", ,'I ,-,) cbnCo'¡""i"¡ ri,';'c'J{Title),ofûthe
, City of ChulaVista ,;1 . "'id ','0 ;,..,1' (Applicant); and :am duly
authorized to make the deposit required below. ¡'cO ;b,I"I',,' ~,'
2. ,The, City of-Chula Vista "," " ",(Applicant) has collected and
has placed on deposit in an account in a financial institution, $ 100.000.00 ,
one hundred thousand dollars (write out dollar amount,
i.e., ten thousand) which equals one percent of the amount of private activity bond
allocation being requested not to exceed $250,000.
3. The deposit will be held until receipt of a written notification from the California Debt
Limit Allocation Committee that the deposit is authorized to be released or forfeited, in
whole or in part, pursuant to the procedures of the Committee," I,
> To the extent that any portion of the deposit is forfeited, the applicant agrees to send
4.
the ,required amount in a check made payable to the "California Debt Limit Allocation
Committee," Such check shall be mailed to the Committee at the address noted above
immediately upon receipt of the written notification from the Committee.
5. The undersigned has read the procedures of the California Debt'Limit Allocation
Committee and understands that if any portion of an approved private activity bond
allocation is not used for the purpose for which it was granted, then the corresponding
portion of the performance deposit must be forfeite'd to the Committee.
5/10/95
Date
Rev. 12/94
COUNCIL RESOLUTION 18179
Resolution of the City Council of the City of Chula Vista, California
Approving the CDAC Application for an Allocation of Qualified
Mortgage Bonds and Assign its Allocation to the Redevelopment Agency
to Implement; Electing to Exchange Said Allocation for Mortgage Credit
Certificates, Certifying the Availability of Funds for the Required
Perfonnance Deposit of $200,000 and Authorizing its Execution by the
Executive Director
WHEREAS, the Health and Safety Code of the State of California, commencing at Section 50171,
("the Act") authorizes cities or their redevelopment agencies to issue mortgage credit certificates pursuant
to a duly adopted and qualifying mortgage credit certificate program ("MCC Program"); and,
WHEREAS, federal law limits the amount of mortgage credit certificates that may be issued in
any calendar year by entities within a state and authorizes the legislature of such state to provide the
method of allocation within the state; and,
WHEREAS, Chapter 3.5 of Part I Division 31 of the Health and Safety Code, commencing at
Section 50171, governs the allocation among govenunental units in the state having the authority to issue
mortgage credit certificates; and,
WHEREAS, Section 50191 of the Act requires a local agency to file an application with the
California Debt Limit Allocation Committee! ("Committee") prior to the issuance of mortgage credit
certificates; and,
WHEREAS, the Committee has, under the authority of Health and Safety Code Section 50191,
required a deposit of up to 1 percent of the portion of the allocation requested.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES
HEREBY FIND, DETERMINE, ORDER, AND RESOLVE as follows,
Section 1. City's Application for Allocation
The City Council approves the application for an allocation of qualified mortgage bonds in the
amount of $20,000,000, a copy of which is on file with the City Clerk registered therein as Document
No. xx-xxx, to Committee, and authorizes the City Manager to execute said application, and deliver
notice of same to the Committee.
Section 2. Assignment of Allocation and MCC Program
Pursuant to the authority of Health and Safety Code Section 50193, or such other provision of
law which pennits same, the City Council hereby assigns all of its allocation of qualified rnortgage bonds
under Chapter 3.5 of Division 31 of the Health and Safety Code to the Redevelopment Agency of the
! The enacting legislation describes a committee entitled "Mortgage Bond and Tax Credit Allocation
Committee". To the extent that this is the State committee authorized to implement Chapter 3.5 of Division 31 of
the Health and Safety Code Section, to wit: the Qualified Mortgage Bond and Mortgage Credit Certificate Program
for the State, the use of the word "Committee" shall be intended as a reference to this State Committee
5-/3
Resolution 17179
Page 2
City of Chula Vista, and delegates the authority and responsibility to implement and administer the MCC
Program to the Agency.
Section 3. This resolution shall take and be in full force and effect immediately upon the passage
and adoption hereof.
Section 4. Minutes
The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the Same
in the book of original Resolutions of said City; and shall make a minute of the passage and adoption
hereof in the minutes of the meeting at which the same is passed and adopted.
Presented by: Approved as to form by:
~~ ,/ ~&- -
Chris Salomone
Community Development Director t Attorn
[BBIC ,I WP5 t ICOUNCILIRESOSIR,l8179 .RES]
.s -If
RESOLUTION 1482
Resolution of the Redevelopment Agency of the City of Chula Vista,
California Approving the Application to the California Debt Limit
Allocation Committee (CD LAC) for an allocation of qualified rnortgage
bonds and its allocation to the Redevelopment Agency accepting City's
assigmnent to implement; Electing to exchange said allocation for
Mortgage Credit Certificates; Certifying the availability of funds for the
required Performance Deposit of $200,000 and authorizing its execution
by the Executive Director
WHEREAS, the Health and Safety Code of the State of California, commencing at Section 50171,
("the Act") authorizes cities or their redevelopment agencies to issue mortgage credit certificates pursuant
to a duly adopted and qualifying mortgage credit certificate program ("MCC Program"); and,
WHEREAS, federal law lirnits the amount of mortgage credit certificates that may be issued in
any calendar year by entities within a state and authorizes the legislature of such state to provide the
method of allocation within the state; and,
WHEREAS, Chapter 3.5 of Part I Division 31 of the Health and Safety Code, commencing at
Section 50171, governs the allocation among govermnental units in the state having the authority to issue
mortgage credit certificates; and,
WHEREAS, Section 50191 of the Act requires a local agency to file an application with the
California Debt Limit Allocation Committee' ("Committee") prior to the issuance of mortgage credit
certificates; and,
WHEREAS, the Committee has, under the authority of Health and Safety Code Section 50191,
required a deposit of up to 1 percent of the portion of the allocation requested.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
DOES HEREBY FIND, DETERMINE, ORDER, AND RESOLVE as follows:
Section I. Agency's Application for Allocation
The Agency Board approves the City's application for an allocation of qualified mortgage bonds
in the amount of $20,000,000, a copy of which is on file with the City Clerk registered therein as
Document No. xx xx-xxx.
Section 2. Acceptance of Assigmnent by Agency
The Agency Board accepts the assigmnent of the City's allocation of qualified rnortgage bonds,
and accepts the authority and duty to implement and administer the MCC Program. Agency further
agrees to issue MCCs to qualifying homeowners of property located within the territory of the City,
provided however, that if, after a reasonable attempt and for reasons beyond the control of the Agency,
the Agency is unable to issue all of the assigned certificates to homeowners of property located within
, The enacting legislation describes a comnrittee entitled "Mortgage Bond and Tax Credit Allocation
Comnrittee". To the extent that this is the State comnrittee authorized to implement Chapter 3.5 of Division 31 of
the Health and Safety Code Section, to wit: the Qualified Mortgage Bond and Mortgage Credit Certificate Program
for the State, the use of the word "Committee" shall be intended as a reference to this State Committee
.5'" - /5
Resolution 1482
Page 2
the territory of the City, any remaining certificates may be issued to qualifying homeowners of property
located within the county of San Diego.2
Section 3. Agency Sets Aside 10% of Allocation for Lower Income Households
The Agency agrees to set aside 10% of the allocation received from the State of California for
low income households (Those households earning 80% or less of area rnedian income). If the set-aside
is unused, this set-aside may be released by the following formula: One-half of the unexpected set-aside
funds released after twelve months, and the remainder at the end of eighteen months.
Section 4. Authority to Convert to Mortgage Credit Certificate
Pursuant to the authority of Section 59197.2, the Agency Board hereby elects to exchange all of
its authority to issue qualified mortgage bonds for authority to issue mortgage credit certificates
("MCC's"). The Executive Director shall notify the Committee of its election, and explain to the
Committee the mechanism established in its program that will assure that the dollar amount of the
mortgage credit certificate authority will not be exceeded.2
Section 5. Availability of Funds for Deposit
The Agency hereby certifies the availability of $200,000 from the Agency's Low and Moderate
Income Housing Fund as and for a deposit as required by the Committee under the authority of Section
50191, Health and Safety Code.
Section 6. Authority to Certify Funds and Agreement to Forfeiture Rule
The Executive Director, or his designee, the Finance Director, or other written designee, is
hereby authorized to certify the arnount of $200,000, and maintain certification in accordance with the
current rules and regulations of the Committee, and to certify such fact to the Committee, including the
promise to pav same over to the Committee upon a event of forfeiture.
Section 7. This resolution shall take and be in full force and effect immediately upon the passage
and adoption hereof.
Section 8. Minutes
The Secretary to the Agency shall certify to the passage and adoption of this Resolution; shall
enter the Same in the book of original Resolutions of said Agency; and shall make a minute of the passage
and adoption hereof in the minutes of the meeting at which the Same is passed and adopted.
Presented by: Approved as to forrn by:
~~~~
Chris Salomone
Community Development Director
[BB\C:\ WP5t \AGENCY\RESOS\R,1482.RES]
5'-/6
2 Health and Safety Code Section 50197.2
MEMORANDUM
December 20, 1995
TO: The Honorable Shirley Horton, Chairman - R~lopment Agency
VIA: Joho D. Go,", E",",;.. D;","oJbI ~ \ ¡(i
FROM: Chris Salomone, Community Developmen ir:::r Øc t .) .
SUBJECT: Request to Call a Special Joint Meeting of the Redevelopment Agency/City
Council for Tuesday, January 9, 1996
Staff is requesting a Special Joint Meeting of the Redevelopment Agency/City Council on
Tuesday, January 9, 1996 after the regular City Council meeting. The following items
requires consideration, deliberation, and action by the Agency/Council:
. Council: Authorizing amendment of the Exchange Agreement between the City
of Chula Vista, the Redevelopment Agency and Sweetwater Union High School
District to extend the Close of Escrow from December 1, 1995 to June 1,
1996 for the Veterans Home Project
. Agency: Authorizing amendment of the Exchange Agreement between the
Redevelopment Agency, the City of Chula Vista, and Sweetwater Union High
School District to extend the Close of Escrow from December 1, 1995 to June
1, 1996 for the Veterans Home Project
. Council/Agency: Approving the application of the California Debt Limit
Allocation Committee (CD LAC) for an allocation of qualified mortgage bonds
and assigning its allocation to the Redevelopment Agency to implement;
Electing to exchange said allocation for Mortgage Credit Certificates; Certifying
the availability of funds for the required performance deposit of $200,000 and
authorizing its execution by the Executive Director
I hereby call a Special Meeting of the Redevelopment Agency
for Tuesday, January 9, 1996:
¿j¡,' - iJ."Z;,
, ,a/,-II/ " I'C. j, v
Shirley Hor~6n, Chairman
[BB\C,\WP51 \AGENCY\MEMOS\INFO9519.MEMI