Loading...
HomeMy WebLinkAboutRDA Packet 1994/10/18 Tuesday, October 18, 1994 Council Chambers 6:00 p.m. Public Services Building (immediately following the City Council meeting) Joint Meeting of the Redevelooment Agencv/Citv Council of the Citv of Chula Vista CALL TO ORDER 1. ROLL CALL: Agency/Council Members Fox -, Horton -, Moore -, Rindone -, and Chairman/Mayor Nader -' 2. APPROVAL OF MINUTES: CONSENT CALENDAR (Items 3 through 5) The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the Agency by one motion without discussion unless an Agency, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit itto the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff recommendation.) Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 3. WRITTEN COMMUNICATIONS: 4. AGENCY RESOLUTION 1427 APPROVING TIlE WAIVER OF CONTINGENT INTEREST (EQUITY SHARE P ARTICIP A TION) ON THE AGENCY'S $15,069 LOAN TO MS. FRENCH, ORANGE TREE MOBILEHOME PARK, 521 ORANGE AVENUE, SPACE 125--In 1988 the Agency and State Department of Housing and Community Development gave a loan to Ms. French, a low-income resident of Orange Mobilehome Park, to assist her in purchasing her space when the park converted to resident ownership. The Orange Tree Homeowner's Association has been trying to sell Space 125 since they acquired it at a trustee's sale. Ms. French's heirs walked away from the property as there is not suftïcient equity to payoff the debt owed. The Orange Tree Mobilehome Owners Association has asked the City to consider waiving its equity participation. City requested the State Department of Housing and Community Development waive their interest as well. They have agreed to do so. Staff recommends approval of the resolution. (Community Development Department) Agenda -2- October 18, 1994 5.A. COUNCIL RESOLUTION 17688 APPROVING THE MORTGAGE CREDIT CERTIFICATE PROGRAM AND ASSIGNING ITS ALLOCATION AND PROGRAM TO TIlE AGENCY TO IMPLEMENT; AUTHORIZING TIlE AGENCY TO APPLY TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION OF QUALIFIED MORTGAGE BONDS; ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES, CERTIFYING TIlE AVAILABILITY OF FUNDS FOR TIlE REQUIRED PERFORMANCE DEPOSIT OF $200,000; APPROVING TIlE STANDARD FORM LENDER PARTICIPATION AGREEMENT, AND AUTHORIZING ITS EXECUTION IN CONNECTION WITH LENDERS APPROVED BY TIlE EXECUTIVE DIRECTOR--Applications for Mortgage Credit Certificates issuing authority are made by local agencies to the California Debt Limit Allocation Committee. Staff recommends the City apply for a $20,000,000 allocation. If the application is approved, the allocation would yield $5,000,000 in actual Mortgage Credit Certificates under the Federal conversion program. With tlùs, the City could issue approximately 202 Certificates. Staff recommends approval of the resolutions. (Community Development Department) B. AGENCY RESOLUTION 1428 APPROVING TIlE MORTGAGE CREDIT CERTIFICATE PROGRAM AND ASSIGNING ITS ALLOCATION AND PROGRAM TO TIlE AGENCY TO IMPLEMENT; AUTHORIZING TIlE AGENCY TO APPLY TO TIlE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION OF QUALIFIED MORTGAGE BONDS; ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES, CERTIFYING TIlE AVAILABILITY OF FUNDS FOR TIlE REQUIRED PERFORMANCE DEPOSIT OF $200,000; APPROVING TIlE STANDARD FORM LENDER PARTICIPATION AGREEMENT, AND AUTHORIZING ITS EXECUTION IN CONNECTION WITH LENDERS APPROVED BY THE EXECUTIVE DIRECTOR . . END OF CONSENT CALENDAR' . PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak infavorofthe staffrecommendation; complete the pinkform to speak in opposition to the staffrecommendation.) Comments are limited to five minutes per individual. 6. JOINT COUNCIL/AGENCY PUBLIC HEARING REGARDING A 31.63 ACRE SITE OF VACANT LAND LOCATED SOUTH OF STATE ROUTE 54 BETWEEN BROADWAY AVENUE (NATIONAL CITY BOULEVARD) AND FIFTH A VENUE WITHIN TIlE BOUNDARIES OF TIlE TOWN CENTRE II REDEVELOPMENT PROJECT AREA. TIlE PUBLIC HEARING WILL CONSIDER TIlE FOLLOWING: 1. Review and certification of Final Enviromnental Impact Report (FEIR 94-02), Findings of Feasible Mitigation Measures, Mitigation and Monitoring Program, and Statement of Overriding Considerations for Agenda -3- October 18, 1994 a proposed 212,000 sq. ft. commercial retail shopping center to be anchored by a "Wal-Mart" store; and 2. General Plan Amendment (GPA 94-04) for the project site to change the General Plan designation from "Research and Limited Manufacturing" to "Commercial Thoroughfare"; and 3. Local Coastal Program Amendment (LCPA #12) for the project site (the "Inland Parcel") to change the land use designation for both the Bayfront Land Use Plan and the Bayfront Specific Plan from "Industrial General" to "Commercial Thoroughfare" subject to the "Central Commercial" zoning designation criteria of the Chnla Vista Municipal Code; and 4. Zoning Map Amendment (PCZ-94-C) for the project site to change the zoning designation from "Limited Industrial - Precise Plan Modifier" to "Central Commercial - Precise Plan Modifier"; and 5. Coastal Development Permit (#068) for construction of the Channelside Shopping Center consisting of approximately 212,000 sq. ft. of commercial-retail floor area anchored by a "Wal-Mart" store at the project site. Recommendation: It is recommended that the Citv Council and Redevelooment Ae-encv oven the vublic hearine-. take testimonv. and continue the vublic hearine- to a date and time certain, that beine- Tuesdav. November 1. 1994 at 4:00 v.m.. immediatelv followine- the Citv Council meetine-. 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. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment Agency or the City Clerk prior to the meeting. Public comments are limited to five minutes. None Submitted. Agenda -4- October 18, 1994 ITEMS PULLED FROM TIlE CONSENT CALENDAR This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency Members. Public comments are limited to five minutes per individual. OTIlER BUSINESS 7. DIRECTOR'S/CITY MANAGER'S REPORTlS) 8. CHAIRMAN'S/MA YOR'S REPORT(S) 9. AGENCY/COUNCIL MEMBER COMMENTS ADJOURNMENT The Redevelopment Agency will meet in a closed session immediately following the Agency meeting to discuss: . CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 0 Property: School District property next to Community Hospital Medical Center. Negotiating parties: John D. Goss. Under negotiation: Potential acquisition of site for Veterans Home. The meeting will adjourn to the Regular Redevelopment Agency Meeting on November I, 1994 at 4:00 p.m., immediately following the City Council meeting, in the City Council Chambers. ...... COMPLIANCE WITH TIlE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request individnals 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 ,I WP5t IAGENCYIAGENDASll 0-18-94.AGDI REDEVELOPMENT AGENCY AGENDA STATEMENT Item ~ Meeting Date 10/18/94 ITEM TITLE: Resolution /J/J.1 Approving the waiver of contingent interest (equity share participation) on the Agency's $15,069 loan to Ms. French, Orange Tree Mobilehome Park, 521 Orange Avenue, Space 125 SUBMITTED BY: C~' Community Development D~ ~ REVIEWED BY: Executive DirectoulÄ ~ ./? (4/5ths Vote: Yes.2L No_) BACKGROUND: In 1988, both the Redevelopment Agency and the State Department of Housing and Community Development (HCD) gave a loan to Ms. French, a low-income resident at Orange Tree Mobilehome Park, to assist her in purchasing her space when the park converted to resident ownership. Ms. French passed away and her heirs walked away from the property because there is not sufficient equity to payoff the debt owed. Staff has been working with the State Department of HCD and the Orange Tree Homeowner's Association (HOA) to negotiate a fair payoff to all parties given the special circumstances of the sale. RECOMMENDATION: Staff recommends that the Agency adopt the attached resolution approving the waiver of the Agency's contingent interest (equity share) on their $15,069 loan to Ms. French. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The Orange Tree Homeowner's Association (HOA) has been trying to sell Space 125 since they acquired it for $3,257 at a trustee's sale on September 8, 1993 to recover unpaid homeowner's association dues. Realizing that they cannot sell the property for enough to pay off the loans, they recently requested that the City consider waiving its equity participation. In order to make the deal work, City staff requested that the State HCD waive their interest as well. The State HCD has agreed to waive their interest and pay a third of seller's closing costs. When the space was acquired by Mrs. French in 1988, the price of the space was $26,327 plus $4,121.77 in closing costs for a total of $30,448.77. The State HCD (in first position) lent $1 5,070 and the Agency (in second position) lent $15,069. The mobilehome was owned free and clear and was used as security for both loans. ~-I Page 2. Item ~ Meeting Date 10/18/94 Currently. the indebtedness on the space is as follows: State HCD Loan - $15,070 Estimated Interest - $7,120 Estimated total owed to State - $22,191 Agency Loan - $15,069 Agency's equity share. - $2,102 Estimated total owed to Agency - $17,171 Orange Tree HOA dues owed' - $3,257 Total Estimated Indebtedness - $42,619 . The Agency's equity share is 57.24% (loan as percent of original purchase price) of the increase in value of the space. . This is the amount the HOA paid for the space through a trustee's sale and represents the amount owed before the space was acquired by the HOA. The HOA also lost $900 in unpaid HOA dues for the space over the past year. The HOA has a buyer who will pay $31,000 for the land and another buyer who will pay $3,000 to remove the mobilehome and sell it elsewhere. The land purchasers will bring a new mobilehome onto the space. The space was recently appraised at $30,000 and the mobilehome at $11,000. The mobilehome is a small double wide (two bedroom, one bath) and is seriously deteriorated. The roof leaks and has caused damage inside the mobilehome, the subflooring needs replacing, and other repairs are needed. Most buyers would opt to replace the mobilehome with a newer, larger model, rather than spend the money fixing up the existing mobilehome. Thus, it is virtually impossible to receive the appraised value of the mobilehome--$11 ,000, as this is the value of the mobilehome in place. The HOA has sought several bids on the mobilehome, and so far, $3,000 is the best offer. If the Agency votes to approve the payoff recommended by staff, the payoff to the sellers (minus closing costs) would be as follows: State HCD - $15,070 Agency - $15,069 HOA- $3,257 Excess funds applied to seller's closing costs - $604 Seller's closing costs are estimated at $1,000 and $604 of these costs will be paid using proceeds of the sale. Each seller would pay a third of the remaining costs, approximately $130 each, for a total of $400 (deducted from proceeds). Without some type of work out situation, the Agency would lose money and the HOA would not receive any payment. The State HCD is in first lien position so they could foreclose to ~..~ Page 3, Item ~ Meeting Date 10/18/94 recoup their principal, accrued interest, and foreclosure costs. The Agency, in second lien position, would receive any remaining funds. A foreclosure sale would likely not produce a buyer who would pay as much as the $34,000 currently offered. The State would receive $22,191 plus foreclosure costs, so the return to the Agency could be minimal or zero. The HOA would also be severely impacted as they would not receive anything. Given that they are the smallest entity in this transaction with the least ability to absorb a loss, staff recommends the proposed payoff situation where they are paid back most of what they are owed. The proposed payoff is an attempt to provide a fair split of the equity in the land and space, and give all parties the ability to recoup most of their original investment. FISCAL IMPACT: The loan payoff terms proposed by staff will allow the Agency to recoup most of its original investment on space 125; $15,069 (minus closing costs estimated at $130). The terms proposed would mean that they Agency forgoes its $2,102 equity share. Without a work out situation, the State HCD (in first position) would need to foreclose, and would receive all their principal and interest ($22,191). and costs of foreclosure. The payback of the Agency loan would be from the remaining proceeds of the foreclosure sale, if any. ISHEILAIOISK#210T125AG.RA41 ~..3 , . C1I'zu g:> 01J £ !B tmk I,f RESOLUTION /1).1 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A WAIVER OF CONTINGENT INTEREST (EQUITY SHARE PARTICIPATION) ON THE AGENCY'S $15.069 LOAN TO MS. FRENCH. ORANGE TREE MOBILEHOME PARK. 521 ORANGE AVENUE. SPACE 125 WHEREAS. the Agency provided a loan to Ms. French, a low-income resident at Orange Tree Mobilehome Park to assist her in purchasing her space when the park converted to resident ownership; and WHEREAS. the borrower is deceased and her heirs have abandoned the property. leaving the Agency's loan in default; and WHEREAS. the Agency has determined that the property and home (used as security on the Agency's loan) does not have sufficient equity to repay all parties given the special circumstances of the condition of the home and the current real estate market; and WHEREAS. the Agency desires to participate in a work out situation to maximize the payback to the Agency on their loan and to cooperate with the other parties (the State Department of Housing and Community Development and the Orange Tree Homeowner's Association) to ensure that all parties are paid back most of their original investment. NOW THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA does hereby find. order. determine and resolve to waive contingent interest (equity share participation) valued at $2,102 on the Agency's $15,069 loan to Ms. French. Orange Tree Mobilehome Park, 521 Orange Avenue, Space 125, on the condition that the original principal is repaid in 90 days, otherwise, no waiver shall be deemed to occur. PRESENTED BY: ~~ ~ Chris Salomone Community Development Director ISHEILA\DISK#2\OTl 25AG.RESJ 7'--5 , . ~ gJ a:J E- !Blank ~-¿, COUNCIL/REDEVELOPMENT AGENCY AGENDA STATEMENT 5&,~ Item Meeting Date 10/18/94 ITEM TITLE: A. CITY COUNCIL RESOLUTION 17688 e. AGENCY RESOLUTION 1428 Joint Resolution of the City Council and the Redevelopment Agency of the City of Chula Vista, California: Approving the Mortgage Credit Certificate Program and Assigning its Allocation and Program to the Agency to Implement; Authorizing the Agency to Apply to the California Debt Limit Allocation Committee for an Allocation of Qualified Mortgage Bonds; Electing to Exchange Said Allocation for Mortgage Credit Certificates, Certifying the Availability of Funds for the Required Performance Deposit of $200,000; Approving the Standard Form Lender Participation Agreement, and Authorizing its Execution in Connection with Lenders Approved by the Executive Director. SUBMITTED BY: Comm"ity """10P~¡'~to, c.. S . REVIEWED BY: City Manag~ 'cJ [) ..-. (4/5ths Vote: Yes_NoX) BACKGROUND: 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 allocation. If this allocation is approved, the allocation would yield $5,000,000 in actual Mortgage Credit Certificates under the federal conversion ratio. 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. In 1991 the City of Chula Vista was given the opportunity to participate in the Mortgage Credit Certificate Program through CD LAC. The program offered the City the option to obtain $20,000,000 (less bond fees, etc. equaling approximately 2 %) worth of private activity bonding authority or to convert the bonding authority into $5,000,000 worth of Mortgage Credit S-I Page 2, Item ~ , Meeting Date 10/18/94 Certificates. The conversion rate from the bonding authority to Mortgage Credit Certificates equals a 4: 1 ratio as determined by Section #25 of the IRS regulations. When the California State Legislature and the Governor authorized the MCC Program, the authorization was based upon the recognition that a substantial public benefit would be attained by promoting home ownership programs which benefit lower income families and individuals. In April of 1992, the Council approved staff's recommendation to apply for an allocation of Mortgage Credit Certificates, and the City was awarded $10,000,000 from the State of California in May. In August 1991, the City received an allocation of $8,325,000 which was used to issue over 60 MCCs. Since January 1994, using the 1992 allocation of $10,000,000, 67 MCCs have been issued and 15 have been committed. Also, lender participation in the current program has increased by 30 %. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution, authorizing the following: (1) City Approve the Mortgage Credit Certificate Program; (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 Approve the Application for an Allocation; (5) the Redevelopment Agency Sets-Aside 10% of its Allocation for Low Income Households; (6) the Redevelopment Agency Certify the Availability of Funds for the Performance Deposit; (7) the Redevelopment Agency Certify the Agreement to Forfeit Deposit; and (8) the Redevelopment Agency Approve the Standard Lender Participation Agreement and Authorizes the Executive Director to Execute the Agreement. 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 borrowers 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 $150.00 to the lender at the time the application is made, and the lender forwards $100.00 of the $150.00 fee to the Community Development S.J- Page 3, Item 5~jb Meeting Date 10/18/94 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. A MCC Consumer Information Circular and the Application for an allocation of private activity bonds are attached. The MCC Consumer Information Circular is distributed to lenders and interested individuals describing the basic guidelines of the program. It also includes a complete listing of the lenders who are participating in the MCC program. 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. 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 (1 % 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. S'!; Page 4, Item 6*". b Meeting Date 10/18/94 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, $4,700 of the CDLAC application fee will be provided by MCC Program revenues. 5,1 CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE APPLICATION FOR 1994 ALLOCATION OF PRIVATE ACTIVITY BONDS FOR EXISTING MORTGAGE CREDIT CERTIFICATE PROGRAMS -_u_--_u_----_u_u_-----------_u_u__u_.._u_----_u_--_u_-_u_u__u_-----..-_u_--------.._u_-----_u_-_u__u__u__u_----u- PART I - ISSUER (APPLICANT)/ADMINISTRATOR INFORMATION -------u_--_u_-----------_u_----_u_--------------------_U_-------_U_----_U_----_U_-U_--------------------n--u--_-U--__n_-- I. Name, address, contact person and telephone number of the Issùer (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 Chula Vista, Ca 91910 Contact Person: Judith Foland (619) 691-5047 3. County: San Diego 4. Attach 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 applicable cooperative agreements are in place, or will be in place prior to receiving allocation. If the program is adding !lî.!!:. jurisdictions, adopted resolutions and signed cooperative agreements for the new participants must be provided. [Note: Initial applications filed in 1994 must provide copies of adopted resolutions and signed cooperative agreements. These documents will establish your program's permanent file and will not be required with subsequent applications.] 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. 12/93 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. _uu_--u_-----------_uu_--_u_--_u_--_u_---_u_u_u__u_u_----uu_---_u_--_u_-_u__u_u_---u__u_---_uu_uuu---------- PART II - AÌ.:LOCATION/PROGRAM INFORMATION u_----_u_-_u_--_u_--_u_-------_u_---_u__u_--_u_u_---------_u_------------_u_-_u_-------_uu_----------------_uu-u_u_- I. Amount of allocation requested: $20,000,000 2. Date MCCs will be advertised: November 18, 1994 3. Proposed issuance date of first MCC: November 28, 1994 4. Number of units expected to be financed: 30 newly-constructed units 170 resale units U rehabilitated units 200 Total 5. Are the above numbers estimates or actual program requirements imposed by the issuer? 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 incluses Single-Family homes, townhomes, condominimums, and mobilehomes. 7. If program contains a reservation for new construction, I!1!ã£h. 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 delayed. No reservations for new construction has been established at this time. 5,1.- /" MCC-Existing/Rev. 12/93 8. Prol!ram Performance a) Provide the following information relating to previous MCC allocations: Allocation Allocation Month/Year A!!!Q!!.D.1 !lill. MCCs Issued 7/91 $8,250,000 $6,347,092 6'7 9/92* $10,000,000 $5,856,484 60 * NOTE: Currently using alìócation received in 1992 which expires 12/31/94. b) ~ explanation for any unused allocation, and the anticipated usage of allocation during the remaining term of the program. See "Attachment 1" c) Current ~ monthly rate of issuance over the past 6-9 months: 5/month d) Expected average monthly rate of issuance: 8-lO/month e) Explain any differences between the current and expected rates of issuance. The Community Development Department has been actively promoting the Mortgage Credit Certificate program through media advertising and word of mouth. lender Participation in the program has increased by 30%. f) Number of homes sold in past year which were within the purchase price limits (identify the source): -_n_n___n______n__n__--nn___---n______------___n_n__nn----_n_n__n___u__-------n__u-__n__--__------n___u___n__-_n PART III - PUBLIC BENEFITS INFORMATION nu_n_n_nn____n_un__u_n__n_n___--___n__nn___nn-n_nu_nnu-n_n_______n___-u---nn_--n__---n__--n__--_nn-- I. Maximum Purchase Prices (As allowed by Internal Revenue Code Section 143.) A verage Area Non-Target Target Purchase Price' Areas Areas New Units $166,592 $149,932 $204,394 Existing Units $185,813 $167,231 $183,251 'If this is not the IRS safe harbor limit, please attach a copy of the study done to determine the average area purchase prices. 5,7 /- MCC-Existing/Rev. ] 2/93 2. Maximum Income Limitations (As allowed by Internal Revenue Code Section 143.) Median income: $43,900 Above median income is (check one): _statewide median _county median -LMSA/PMSA median _local median as determined by a special study (~ copy) Non-Target Target Household Size Areas ~ 1-2 persons ~- $43,900 $52,680 3+ persons $50,485 $61,460 3. Tan!et Areas Are there target areas in the jurisdictions(s)? ~Yes - No If yes, percent of MCCs reserved for target areas: 20% 4. Pro2ram Reservations If applicable, describe any reservations for lower purchase prices and/or lower incomes. Under the Mortgage Credit Certificate program, 10% of the allocation is reserved for persons earning at or below 80% of the median income. 5. Based on past program experience, what is the average purchase price and income of an MCC recipient? Average purchase price: $129,562 Average 'income: $ 38,351 -------_nn__--_nnnn___n______nnn__n____nnn_n___-___n__n_--n___n__nnn__n____nnn_--__n_n_____---_-nn_nn-- PART IV - OTHER RELATED INFORMATION _nnnn_nn__nn__nnn_nnn__--n_____nnn--__nnnnnn_---_n_nn__nn_-nn_nnnn_n_n-n_n_nnnn--_nnn_n- I. A.t!.í!£.!!. description of applicant's financial participation in the program. See "Attachment 2" 2. Attach explanation of how this program helps attain the housing goals of the participating jurisdiction(s). See "Attchment 2" .5,J} /- MCC-Existing/Rev. 12/93 nnnnn__-_n__n_n_--n__-_n__nn_n_nn_n__-_n_n-n_-_n_-n__-_n__nnn____n____nnnnn__n__n_-_n-n__--n_-n-n PART V - CERTIFICATIONS/SIGNATURE -----------n______n______-------n__-_n__-_n-n__-_n___-_n______-------___n___---n_____-----_n_____------n____------------n- 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 RESOLUTIONS OF ALL CONTINUING PARTICIPATING JURISDICTIONS.ARE DULY ADOPTED AS OF THIS DATE, OR WILL BE DULY ADOPTED PRIOR TO THE DATE ON WHICH THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE WILL ACT ON THIS REQUEST FOR ALLOCATION. I FURTHER CERTIFY THAT THE NECESSARY COOPERATIVE AGREEMENTS BETWEEN THE ISSUER, THE ADMINISTRATOR, AND THE CONTINUING PARTICIPATING AGENCIES ARE IN EFFECT AS OF THIS DATE, OR WILL BE IN EFFECT ON THE DATE WHICH THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE WILL ACT ON THIS REQUEST FOR ALLOCATION. 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. 10/10/94 Signature (John D. Goss) Date City Manager Title 5"~ ./ MC'C'-Fx;";no/Rev to/01 APPLICA nON 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: ~ $300 initial filing fee .... ~ s..i.s..n.çQ Deposit Certification Form for an amount equal to 1% of the allocation being requested not to exceed $250,000 ~ Completed and sil!ned application form ~ Attachments ~ Exhibits, if applicable ~ Resolution(s), if applicable; X Draft _Adopted Check Committee's Procedures for final filing date of adooted resolution(s). -D.& Cooperative Agreements, if applicable: _Draft _Signed Check Committee's Procedures for final filing date of sil!ned cooperative agreements. ~ MCC program manual, if applicable ~ Duplicate copy 5,/0 /- MCC-ExistingjRev. 12/93 DEPOSIT CERTIFICATION FORM FOR AN APPLICATION FOR 1994 ALLOCATION OF PRIVATE ACTIVITY BONDS California Debt Limit Allocation Committee 915 Capito! Mall, Room 471 Sacramento, CA 95814 (916) 653-3255 CERTIFICATION OF THE City of Chula Vista (Applicant) REGARDING AN APPLICATIOti.FOR PRIVATE ACTIVITY BOND ALLOCATION In connection with the following private acrivity bond application: APPLICANT: City of Chula Vista AMOUNT OF ALLOCATION REQUESTED: S20,000,000 PROJECT NAME/PROGRAM TYPE: Mortgage Credit Certificate Program the undersigned officer of the City of Chula Vista (Applicant) hereby certifies as follOws: 1. I. John D. Goss (Name). am the City Manaqer (Tide) of the City of Chula Vista (Applicant), and am duly authorized to make the deposit required below. -. The City of Chu.la Vista (Applicant) ",as .:oile<::ed and has placed on deposit in an ac<:ount in a financial instirurion. S 200 .000.00 Two hundred thousand -------------------- dollars 'write Oil! dollar amount. i.e.. ten thousand) which equals one percent of the amount or' private activity ~ond allocation being requested not to exceed S250,OOO. 3. The deposit will be held unril re<:eipt of a written notification from the California Debt Limit Allocation Committee that the deposit is authorized to be released or foridted, in whole or in part, pursuant to the procedures of the Committee. 4. To the eXtent that any portion of the deposit is forfeited, the applicant agrees to sead the required amount in a che<:k made payabie to the "California Debt Limit Ailocation Committee." Such che<:k shall be maiied to the Committee at ¡he 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 .-\llocation 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. ¡hen the corresponding portion of the performance deposit must be forfeited to the Committee. 10/10/94 Date SignatUre. Ti¡le Rev. 1 ¡ /93 5 ;" ,. GENERAL INSTRUCTIONS FOR DEPOSIT CERTIFICATION FORM I. Each applicant for a private activity bond allocation must submit evidence to the Committee that it has on deposit in an account in a financial institution, an amount equal to one percent of the amount of private activity bond allocation being requested nor to exceed 5250,000. The Committee's procedures provide for certain alternatives (e.g., a letter of credit) to a deposit in a financial institurion. Please consult the procedures for information concerning acceptable alternatives. 2. The Deposit Certification Ftlrm (see other side) must be filed with the CommiTtee at the same time the application is submiTted. 3. The CommiTtee will authorize release or require forfeiTUre of the deposit as follows: a. If rhe Commitree provides no allocation, or an amounr lower than requested by the applicant, the Committee will authorize release of a pro rata amount of the deposit so that only one percent of the allocation granted is on deposit; b. If the applicant (or the issuer, if different from the applicant) uses only a portion of the allocation granted to issue bonds (or to convert to mortgage credit certificate authority and to issue at least one mortgage credit certificate), the Committee will authorize the release of a pr\> rata portion of the deposit and require forfeiture of the remainder; c. If the applicant (or the issuer, if different from the applicant), does not uSe any of the allocation to issue bonds (or to convert to mortgage credit certificate authority and issue at least one mortgage credit certificate), the entire deposit will be forfeited; and d. If the applicant withdraws the application in writing prior ro the Committee's consideration of the application, the performance deposit shail be automaticalJy releasee. , The CommiTtee may waive the forfeiTUre oÌ the performance deposit if substantialJy all the allocation granted was used for the purpose for which it was granted or if the failure to issue bonds (or to convert to mortgage credit certificate authority and to issue at least one mortgage credit certificate) can be shown to be the result of facrors which could not have been anticipated and which were outside the control of the proposed issuer, bond counsel, underwriter(s), credit provider, developer or company, and other parties to the proposed issuance. 5. If the applicant (or the issuer if different from the applicant), forfeits all or a part of a deposit pursuant to the procedures of the Committee, the applicant shall send the required amount to the Committee in a check made payable ro the California Debt Limit Allocation Committee. Amounts received will be deposited in the Committee's Fund. The California Debt Limit Allocation Committee complies with 5' I'" the Americans With Disabilities Act (ADA). If you need additional informaÜon or assistance, please contact the Committee at 9]6/653-3255 Or TDD 9]6/654-9922. ATTACHMENT #1 Part II - ALLOCATION/PROGRAM INFORMATION 8. Prol!ram Performance b). The 1991 portion of unused Mortgage Credit Certificate allocation was due to a transition of personnel and workload within the department. The previous program administrator left the position and a replacement was trained for the position. This caused a delay in the department's ability to expedite the issuance process. The anticipated usage of allocation during the remaining term of the program will continue at the current rate of 8-10 MCCs per month. This time of year is slow for the real estate market. Also, the department has been actively promoting the program and has already issued half of the allocation within 10 months of issuing MCCs with the 1992 allocation. 5' ' IS ATTACHMENT #2 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 Program to 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. S " It CHULA VISTA REDEVELOPMENT AGENCY MORTGAGE CREDIT CERTIFICATE PROGRAM LENDER PARTICIPATION AGREEMENT THIS AGREEMENT made and entered into as of the - day of , 19_, by and between the Redevelopment Agency of the City of Chula Vista ("City") and (hereinafter referred to as the "Lender"). WITNESSETH: WHEREAS, the Tax Refonn Act of 1984 establishes the Mortgage Credit Certificate Program as a means of assisting qualified individuals with th'è'acquisition of new and existing single family housing; and WHEREAS, pursuant to Chapter 1399, Statutes of 1985 Section 50197, ~ of the Health and Safety Code, local issuers, such as the City, are authorized to issue Mortgage Credit Certificates ("MCC's") and promulgate and administer its own local Mortgage Credit Certificate Program, as same may from time to time be amended (hereinafter referred to as the "MCC Program"); and WHEREAS, by Resolution No. 1184 adopted July 9, 1991, the City Council of the City of Chula Vista has established a MCC Program and directed the Community Development Department to administer the MCC Program pursuant to the applicable federal, state, and local laws, policies, and procedures; and WHEREAS, the Lender wishes to participate in the MCC Program administered by the City of Chula Vista in conoection with mortgage loans it will make available for the acquisition of new and existing single-family housing. NOW, THEREFORE, in consideration of the promises set forth herein, the parties agree as follows: I. Participation in Orientation. The Lender agrees to attend and participate in training and orientation sessions for the MCC program sponsored by the City. 2. Warrantv of Knowledge. The lender warrants that it is familiar with the Internal Revenue Code, and in particular Section IO3A, and all temporary and permanent regulations issued pursuant thereto applicable to the issuance of Mortgage Credit Certificates, and the Federal and City's MCC Program as well as all provisions of state law applicable to the MCC Program. The Lender hereby agrees to comply with all provisions of applicable federal and state law, and said regulations and guidelines. 3. Designation of Lender as Citv's Agent. 10 reliance on the foregoing warranty and promises, the City of Chula Vista hereby designates the Lender as its agent for receipt and processing of applications from home buyerslborrowers for MCCs under the City's Mortgage Credit Certificate Program. 4. Duty to Infonn Potential Borrowers. The Lender will make information regarding the MCC Program available to potential borrowers, and will solicit interest in applying for MCCs from potentially qualifying borrowers. MCC2.WP .5 ' /5 Lender Participation Agreement, MCC Program July 3, 1991 Page I 5. Dutv to Process Aoolications. The Lender will process and review the application for any potential borrower in order to detennine eligibility for the Program. In this connection, the Lender will obtain from the borrower all documents and information required for the application for (and receipt of) a MCC as directed by tbe City. 6. Fee Regulation: MCC Aoplication Fee. The Lender will charge a potential borrower applying for an MCC only those reasonable fees as would be charged to a potential borrower applying for mortgages not provided in connection with an MCC except for the imposition of a Mortgage Credit Certificate Application Fee. Notwithstanding the foregoing, the Lender may charge each borrower an application fee of $150.00 for processing each MCC. 7. Dutv to Request Reservation of MCC. The Lender will, from the Borrower's application, make a tentative detennination of the Borrower's eligibility for a MCC, and upon tentatively concluding a Borrower is so eligible, will request the City in writing, on such forms and by such procedures as the City shall specify, reserve a MCC for such Borrower. Upon such request, the Lender will pay the City $100.00. This request for reservation of a MCC shall herein be referred to as the "Initial Submittal Phase". The City shall have the discretion at all times to issue a MCC. City will issue a "Reservation Letter" to the Lender upon reserving the MCC. 8. Dutv to Oualifv Borrowers. The Lender will perform all investigation and verification that it would customarily perform for underwriting a mortgage or loan without regard to the fact that an MCC is being applied for, or may be issued by City. 10 addition, the Lender will, upon receipt of City's Reservation Letter, conduct such reasonable investigation as is necessary to certify that the applicant has satisfied all requirements of the MCC Program, including those imposed by temporary and permanent regulations issued purnuant to the Internal Revenue Code and the City. Notwithstanding any other qualifying criteria, the Lender shall not deem a borrower qualified for a MCC if the Lender would othetWise qualify the borrower, according to its normal rules and regulations, for a loan without the MCC. 9. Dutv to Submit Final Detennination. At such time as the Lender shall have detennined that the Borrower fully qualifies under the MCC Program for a MCC, the Lender shall submit to City all documentation, including verification of income, supporting the Lender's detennination, on such forms and according to such procedures as City shall specify, for the City's review and approval. 10. Dutv to Issue Certificate. Upon the City's detennination that (I) it has issued a Reservation Letter for the Borrower; (2) the Borrower qualifies for a MCC under the MCC Program and this agreement; (3) the Borrower has not made any material misrepresentations in connection with the loan or MCC application process; and (4) Borrower's escrow for the Loan is othetWise ready for closure except for the MCC, the City shall, except for just cause as detennined by the City, use good faith and best efforts to issue the Mortgage Credit Certificate to the Borrower according to the rules and regulations of the MCC Program. II. Withdrawal or Tennination of the Loan Application. The Lender hereby agrees that it will immediately notify the Community Development Department of the City of cancellation or rejection nf any Borrower's loan or detennination of Borrower's ineligibility so as to pennit the City to reapportion its MCC's. MCC2.WP .5 ' liD Lender Participation Agreement, MCC Program July 3. 1991 Page 2 12. Lender's Dutv to Infonn Citv reo MisreDresentation. The Lender hereby agrees that is will immediately forward to the Community Development Department of the City of Chula Vista and the City of Chula Vista Redevelopment Agency all infonnation which it may receive during the life of the mortgage loan which tends to indicate that the Borrower misrepresented facts in connection with the application or issuance of a MCC, or that may affect the applicant's continued eligibility for an MCC. 13. MisreDresentation as a Condition of Default of Loan. ,. Lender shall make each loan issued in reliance, in whole or in part, on the basis of a MCC, conditioned, and subject to default, upon detennination by the City that the Borrower has materially misrepresented facts regarding Borrower's eligibility for the MCC. 14. Tenn: Tennination. This Agreement shall remain in full force and effect until tenninated. A. The Lender may tenninate this agreement, without cause, upon sixty (60) days written notice to the Community Development Department of the City. Notwithstanding any such tennination, the Lender shall file any and all reports required to be filed with the Internal Revenue Service and shall maintain all records required to be maintained by it pursuant to Section 25 of the Internal Revenue code of 1986 and any regulations thereunder. B. The City may tenninate this Agreement without cause, upon fifteen (15) days written notice. 15. Miscellaneous. A. Consultant not authorized to ReDresent Citv. Unless specifically authorized herein, or otherwise in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Notices. All notices, demands or requests provided for or pennitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified adjacent to the signatures of the parties represented. C. Entitlement to SubseQuent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall io itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. D. Entire Agreement. This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. MCC2.WP 5.. 11 Lender Participation Agreement July 3, 1991 Page 3 E. CaDacitv of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governin~ LawlVenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under o~ relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. G. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. . H. Countemarts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. I. Headin~s. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. J. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. K. Remedies. The rights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. No Amendment shall be effective unless in writing and signed by both parties hereto. L. No Third Partv Beneficiaries. Despite the fact that the required performance under this agreement may have any affect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this agreement. MCC2.WP Lender Participation Agreement, MCC Program July 3, 1991 Page 4 ..5 ,,/8 M. Hold Hannless. Lender shall defend, indemnity and hold harmless the City, its eleded and appointed officers and employees, from and against all claims for damages, liability, cost and expenses (including without linútation attorneys' fees) arising out of the conduct of the Lender, or any agent, employee, or subcontractor of the Lender in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. Lender's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers agents, or employees in defending against such claims, whether the same proceed 10 judgement or not. Further, Lender, at its own expense shall, upon written rei¡\rest by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Now therefore, the parties hereto, having read and understood the tenns and conditions of this agreement, do hereby express their consent to the !enns hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: July 3, 1991 Redevelopment Agency of the City of Chula Vista by: John D. Goss, its Executive Director Approved as to Fonn: Bruce M. Boogaard City Attorney Lender's Signature Dated: July 3, 1991 by: -- Title of Signatory: Office Location: Telephone: Contact Person: MCC2.WP 5,11 Lender Participation Agreement, MCC Program July 3, 1991 Page 5 '.. ~ (P a;¡ £ !Blank .5,)-0 CITY COUNCIL RESOLUTION 17688 AGENCY RESOLUTION 1428 JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE MORTGAGE CREDIT CERTIFICATE PROGRAM AND ASSIGNING ITS ALLOCATION AND PROGRAM TO THE AGENCY TO IMPLEMENT; AUTHORIZING THE AGENCY TO APPLY TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION OF QUALIFIED MORTGAGE BONDS; ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES, CERTIFYING THE AVAILABILITY OF FUNDS FOR THE REQUIRED PERFORMANCE DEPOSIT OF $200,000; APPROVING THE STANDARD FORM LENDER PARTICIPATION AGREEMENT, AND AUTHORIZING ITS EXECUTION IN CONNECTION WITH LENDERS APPROVED 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 governmental 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 Approval of MCC Program City Council hereby approves the City of Chula Vista Mortgage Credit Certificate Program in the form of the document entitled "MCC Operating Manual", dated July 1991, a copy of which 1 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. S ..).J Resolution 17688 Resolution 1428 Page 2 is on file in the Office of the City Clerk registered therein as Document No. CO91-127 ("MCC Program"). 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 permits same, the City Council hereby assigns all of its allocation of qualified mortgage bonds under Chapter 3.5 of Division 31 of the Health and Safety Code to the Redevelopment Agency of the City of Chula Vista, and delegates the authority and responsibility to implement and administer the MCC Program to the Agency. Section 3. Acceptance of Assignment by Agency The Agency Board accepts the assignment of the City's allocation of qualified mortgage 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 territory of the City, any remaining certificates may be issued to qualifying homeowners of property located within the county of San Diego.2 Section 4. Agency's Application for Allocation The Agency Board 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. CO 91-127, to Committee, and authorizes the Executive Director to execute said application, and deliver notice of same to the Committee. Section 5. 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 median 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 6. 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 2 Section 50197.5. 5~),-7.-- Resolution 17688 Resolution 1428 Page 3 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.3 Section 7. Availability of Funds for Deposit The Agency hereby certifies the availability of $200,000 as and for a deposit as required by the Committee under the authority of Section 50191, Health and Safety Code. Section 8. Authority to Certify Funds and Agreement to Forfeiture Rule The City Manager, or his designee, the Finance Director, or other written designee, is hereby authorized to certify the amount 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, includina the Dromise to Dav same over to the Committee UDon a event of forfeiture. Section 9. Approval of Standard Form lender Participation Agreement The Agency does hereby approve the standard form lender Participation Agreement in substantially the form as is on file in the Office of the City Clerk, registered there as Document No. CO 91-127, and authorizes the Executive Director to solicit qualified lenders willing to agree to the terms and conditions contained in same, and willing to comply with the MCC Program, and authorizes the Executive Director to execute same with such lenders as meet with the approval of the Executive Director. The Agency General Counsel is authorized to make minor modifications in the standard form as meet with his approval, not involving a substantially greater risk for the Agency. Section 10. This resolution shall take and be in full force and effect immediately upon the passage and adoption hereof. Section 11. Minutes The City Clerk and 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 City and the 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 Ved as t orm by ~ '. $.t-..../ Ib~.JJ Chris lomone Bruce M. Boog ar Community Development Director City Attorney/A cy Counsel IC,\WP51\AGENCY\RESOS\CDLAC-1.RES] 3 Health and Safety Code Section 50197.2. 5 .. J.. ~ , . ~ ~ œ¡¡ E- !Blank S..J.t AGENCY RESOLUTION 1428 CITY COUNCIL RESOLUTION 17688 JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE MORTGAGE CREDIT CERTIFICATE PROGRAM AND ASSIGNING ITS ALLOCATION AND PROGRAM TO THE AGENCY TO IMPLEMENT; AUTHORIZING THE AGENCY TO APPLY TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION OF QUALIFIED MORTGAGE BONDS; ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES, CERTIFYING THE AVAILABILITY OF FUNDS FOR THE REQUIRED PERFORMANCE DEPOSIT OF $200,000; APPROVING THE STANDARD FORM LENDER PARTICIPATION AGREEMENT, AND AUTHORIZING ITS EXECUTION IN CONNECTION WITH LENDERS APPROVED 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 governmental 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 1. City Approval of MCC Program City Council hereby approves the City of Chula Vista Mortgage Credit Certificate Program in the form of the document entitled "MCC Operating Manual", dated July 1991, a copy of which is on file in the Office of the City Clerk registered therein as Document No. CO91-127 ("MCC Program"). 1 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. 5-25 Resolution 1428 Resolution 17688 Page 2 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 permits same. the City Council hereby assigns all of its allocation of qualified mortgage bonds under Chapter 3.5 of Division 31 of the Health and Safety Code to the Redevelopment Agency of the City of Chula Vista, and delegates the authority and responsibility to implement and administer the MCC Program to the Agency. Section 3. Acceptance of Assignment by Agency The Agency Board accepts the assignment of the City's allocation of qualified mortgage 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 territory of the City, any remaining certificates may be issued to qualifying homeowners of property located within the county of San Diego.2 Section 4. Agency's Application for Allocation The Agency Board 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. CO 91-127, to Committee, and authorizes the Executive Director to execute said application, and deliver notice of same to the Committee. Section 5. 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 median 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 6. 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 2 Section 50197.5. 5-lk Resolution 1428 Resolution 17688 Page 3 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.3 Section 7. Availability of Funds for Deposit The Agency hereby certifies the availability of $200,000 as and for a deposit as required by the Committee under the authority of Section 50191, Health and Safety Code. Section 8. Authority to Certify Funds and Agreement to Forfeiture Rule The City Manager, or his designee, the Finance Director, or other written designee, is hereby authorized to certify the amount 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, includina the oromise to pav same over to the Committee upon a event of forfeiture. Section 9. Approval of Standard Form lender Participation Agreement The Agency does hereby approve the standard form lender Participation Agreement in substantially the form as is on file in the Office of the City Clerk, registered there as Document No. CO 91-127, and authorizes the Executive Director to solicit qualified lenders willing to agree to the terms and conditions contained in same, and willing to comply with the MCC Program, and authorizes the Executive Director to execute same with such lenders as meet with the approval of the Executive Director. The Agency General Counsel is authorized to make minor modifications in the standard form as meet with his approval, not involving a substantially greater risk for the Agency. Section 10. This resolution shall take and be in full force and effect immediately upon the passage and adoption hereof. Section 11. Minutes The City Clerk and 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 City and the Agency; and shall make a minute of the passage and adoption hereof in the minutes f the meeting at which the same is passed and adopted. Œ" ~m Presented by y ~~ ~ Chris Salomone Bruce M. Boogaard Community Development Director City Attorney/Agency [C:IWP51 IAGENCYIRESOSICDLAC-2.RESJ 3 Health and Safety Code Section 50197.2. S,)7 , . ~ gJ O-f) E !Blank 5~".1