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HomeMy WebLinkAboutCC Reso No 1985-29RESOLUTION NO. $5-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA AUTHORIZING APPLICATION FOR ALLOCATION OF MORTGAGE SUBSIDY BONDS, CONFIRMING FILING OF NOTICE OF SALE THEREOF WITH MORTGAGE BOND ALLOCATION COMMITTEE AND PROVIDING FOR MATTERS PROPERLY RELATED THERETO. WHEREAS, the legislature of the State of California has, pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act"), authorized cities and counties to purchase long-term low-interest loans to finance home mortgages in order to encourage investment within and to upgrade local areas and has authorized cities and counties to issue revenue bonds to finance the purchase of such loans; and WHEREAS, pursuant to the Act, the City of Lake Elsinore (the "City") proposes to undertake a Home Mortgage Finanee Program (the "Program") to purchase loans (the "Home Mortgages") made to finance new single family owner-occupied residential units (the "Homes") to be constructed within the City and to issue Residential Mortgage Revenue Bonds (the "Bonds") to finance the purchase of the Home Mortgages; and WHEREAS, to obtain an allocation to issue the Bonds within the federally imposed limit upon the issuance of mortgage subsidy bonds, the City is required to file, pursuant to the Costa-Marks Housing Bond Allocation Act of 1981 (the "Costa-Marks Act"), a notice of sale of $20,000,000 principal amount of Bonds with the State Mortgage Bond Allocation Committee; and WHEREAS, in order for the City to obtain a position on the listing for allocations in 1985, the Mortgage Bond Allocation Committee also requires that the City cause evidence of the deposit of an amount of money or, in lieu thereof, of a letter of credit securing such amount, which amount shall be subject to forfeiture and application by the City to assist housing for persons of low and moderate income within the City, upon the failure to sell any or only a portion of the Bonds; and ~VI3~P~S, the investment banking firm of Miller & Schroeder Municipals, Inc. has offered to act as financial consultant and to purchase the Bonds when, as and if issued, and further has agreed to deposit an amount of money or, in lieu thereof, a letter of credit securing such amount, as required by the Costa- Marks Act, in order to allow the City to secure an allocation from the Mortgage Bond Allocation Committee; and WHEREAS, the law firm of Nazarek, Harper, Hopkins & McFarlin has offered to act as bond consel to the City for the purpose of securing an allocation and to conduct the proceedings, prepare the necessary documentation and issue the approving legal opinion concerning the tax exempt status of the Bonds; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elsinore as follows: Section 1. The above recitals and each of them are true and correct. Section 2, The City Council hereby determines that in order to accomplish the purposes of the Program and to obtain an allocation under the Costa-Marks Act it is_necessary to submit an application to the Mortgage Bond Allocation Committee of the State and that such application is hereby authorized and approved. Section 3. The City hereby designates Miller & Schroeder Municipals, Inc. as financial consultant and purchaser of the Bonds when, and if issued, upon the terms as shall be mutually agreed upon by the City and Miller & Schroeder Municipals, Inc. prior to the sale thereof. Section 4, The City hereby designates Nazarek, Harper, Hopkins & MeFarlin as bond consel to the City to conduct the proceedings, prepare the necessary documentation and issue the approving legal opinion necessary to the issuance and sale of the Bonds upon such terms as shall be mutually agreed upon by the City and.Nazarek, Harper, Hopkins & McFarlin prior to the sale thereof. Section 5. The City Manager is hereby authorized and directed to deliver to the Mortgage Bond Allocation Committee a certified copy of this resolution, together with a certificate signed by the City Manager substantially to the effect that the City has on deposit in an interest-bearing trust account, and/or has on deposit a letter of credit securing such deposit, in an amount which equals one-half of one percent of the principal amount of the allocation requested, such certificate to be substantially -2- in the form attached hereto as Exhibit A and hereby made a part hereof. Section 6. This resolution shall become effective immediately upon its adoption. PASSED, APPROVED and ADOPTED by the City Council of the , City of Lake Elsinore this 14th day of May, 1985, by the following vote: AYES: KNIGHT, MATSON, STRIGOTTE, VALENZUELA NOES: VERMILLION ABSENT: NONE ABSTAIN: NONE ~~'~//ti!/ ~ ARTA VALENZUEL , MAYOR CITY OF LAKE SINORE ATTEST: ~ O ANN MONEY, ITY RK APPROVED AS TO FORM: - CI AT ORNEY ~ EXHIBIT A CERTIFICATE REGARDING NOTICE TO THE MORTGAGE BOND ALLOCATION COMMITTEE The City of Lake Elsinore hereby certifies to t~e Mortgage Bond Allocation Committee pursuant to the requirements of Section 50191 of the Costa-Marks Housing Bond Allocation Act of 1981 (the "Costa-Marks Act") as follows: 1. The City is on this date, requesting the Mortgage Bond Allocation Committee to grant to the City a $20,000,000 allocation of mortgage subsidy bonds. 2. The City has on deposit in an interest-bearing trust account, and/or there is a letter of credit posted with the City, in the total amount equal to one-half of one percent of the dollar amount set forth in paragraph 1 hereof, which deposit is subject to the forfeiture provisions of the Costa-Marks Act. 3. The undersigned City Manager of the City of Lake Elsinore has been duly authorized and directed to execute and deliver this Certificate pursuant to a resolution of the City duly adopted on May 14, 1985, A certified copy of said resolution accompanies this Certification. CITY OF LAK~ ELSINORE , Dated: May 14, 1985 STATE OF CALIFORNIA ) ~ 55. COUNTY OF RIVERSIDE ) I; Jo Anrc Money City cierK of the City of Lake Elsinore,, D0 HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Lake Elsinore at a regular meetin9 of said Council on the 14th day of May, 1985 , and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: KNIGHT, MATSON, STRIGOTTE, VALENZUELA NOES: COUNCILMEMBERS: VERMILLION ABSENT: COUNCIL~IEMBERS: NONE AN MONEY, CITY CLERK TY OF LAKE ELSINORE (SEAL) STATE OF CALIFORNIA ) ) ss, COUNTY Of RIVERSIDE ) I Jo Ann Money, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 85-29 , of said Council, and that the same has not been amended or repealed. DATED: May 17, 1985 ~ 1 ANN MONEY, CITY CLERK C Y OF LAKE ELSINORE ' (SEAL)