2002-08 — RESOLUTION No. 2002-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA APPROVING A HOME MORTGAGE FINANCE
PROGRAM AND ADDITIONAL HOME FINANCE PROGRAMS IN
COOPERATION WITH THE COUNTY OF SAN BERNARDINO AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE FOR AND
ON BEHALF OF THE CITY A COOPERATIVE AGREEMENT BETWEEN
THE COUNTY OF SAN BERNARDINO AND THE CITY
WHEREAS, there is a shortage in the County of San Bernardino (the "County")and in the
City of decent, safe and sanitary housing, particularly of housing affordable by persons in the
lower end of the purchasing spectrum, and a consequent need to encourage the construction of
homes affordable by such persons and otherwise to increase the housing supply in the County and
in the City for such persons; and
WHEREAS,Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State
of California(the"Financing Act")(commencing with Section 52000 ofthe Health and Safety Code
authorize counties and cities under the Act to issue revenue bonds for the purpose of financing home
mortgages authorized by the Act,and Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the
Government Code of the State of California(the"Refunding Act,"and,together with the Financing
l� Act, the "Act"), commencing with Section 53570 of the Government Code, authorizes the County
to issue bonds to refund its revenue bonds previously issued to finance home mortgages under the
Act;
WHEREAS,the County has determined to engage in a home financing program within the
geographic boundaries of the County and certain cooperating cities pursuant to the Act,in connection
with the construction, acquisition, rehabilitation or improvement of homes in the County, all as
provided for in the Act;
WHEREAS, the-Board of Supervisors of the County adopted Ordinance No. 2496 on
November 17, 1980, declaring its intent to engage in a home mortgage finance program (the
"Program") pursuant to the Financing Act and to issue indebtedness pursuant to the Act in
furtherance of the Program;
WHEREAS, pursuant to the Act and other laws of the State of California, the County has
(a)created The Extra Credit Teacher Home Purchase Program(the"Teacher Program")that provide
home mortgages to qualified teachers or principals who meet certain conditions and issued
$14,235,000 of bonds (the "Teacher Bonds")after providing notice to the City;(b)with the consent
of all participating cities the County on its behalf and on behalf of the participating cities entered
into a joint powers agreement ("JPA") under the Marks-Roos Local Bond Pooling Act of 1985
(Government Code 6584 et seq.)with the California Cities Home Ownership Authority(CCHOA)
thereby permitting an existing CCHOA Lease Purchase Program to be available in the County; and
(c) issued $500,000 of its Taxable Single Family Home Mortgage Revenue Notes (Fannie Mae
f-y Down Payment Assistance Program), 2001 Series A(the "2001 Notes")to create a down payment
assistance program (the "DPAIN Program") that provides supplemental funds that may be used
toward down payment and closing costs in conjunction with other mortgage programs,including the
Program,the Teacher Program,as well as the County's HOME Program Homeownership Assistance
Program(HAP),and to provide down payment assistance for households with incomes up to 140%
of statewide median (higher than the income limits of those three programs) (collectively, the
"Additional Programs")when used in conjunction with any other mortgage program,subj Oct to the
income limits of such mortgage program;
WHEREAS, the City has previously entered into a Cooperative Agreement (the"Existing
Cooperative Agreement")with the County with respect to the Program and has agreed to extensions
of such Existing Cooperative Agreement and the expansion of the scope of such Existing
Cooperative Agreement to include certain Additional Programs pursuant to certain_letters (the
"Extension Letters");
WHEREAS, the County has presented the City a form of Cooperative Agreement (the
"Cooperative Agreement")between the County and the Citywhereby the City consents to participate
in the Program and the Additional Programs pursuant to the terms of such Cooperative Agreement;
WHEREAS, the Council finds and determines that it is in the best interest of the City to
consent to its continued participation in the Program and to its participation and/or continued
participation of the Additional Programs pursuant to the terms and_conditions of a Cooperation
Agreement between the County and the City;
NOW, THEREFORE, BE IT ORDERED, by the Council of the City of Grand Terrace,
as follows:
SECTION 1. Each of the foregoing recitals is true and correct.
SECTION 2. The City hereby adopts the Program for the purpose of increasing
the housing supply in the County and in the City and consents to the operation of the Program and
the Additional Programs by the County with respect to all property located within the geographical
boundaries of the City.
SECTION 3. The Cooperative Agreement between the County and the City (the
"Agreement"), in substantially the form attached hereto as Exhibit A, is hereby approved, and the
Mayor and City Clerk are hereby authorized and directed to execute and deliver said Agreement,
for and in the name and on behalf of the City. The Mayor, with the advice and consent of the City
Attorney, is authorized to approve any additions to or changes in the form of said Agreement
which they deem necessary or advisable, their approval of such additions or changes to be
conclusively evidenced by execution by the Mayor of said Agreement as so added to or changed.
The Mayor, with the advice and consent of the City Attorney, is further authorized to enter into
such additional agreements with the County, execute such other documents or take such other
actions as they may deem necessary or appropriate to carry out the purpose and intent of the
`- Agreement or to cooperate in the implementation of the Program or Additional Programs.
SECTION 4. The offices and employees of the City are hereby authorized and
directed, jointly and severally, to do any and all things necessary or advisable in order to
effectuate the purposes of this Resolution.
SECTION 5. This Resolution shall take effect from and after its adoption.
PASSED, APPROVED, AND ADOPTED, this 9`' day of May, 2002, by the following
vote:
Mayor of the City of Grand Terrace
ATTEST:
City Clerk of the City of and
Terrace
I, BRENDA STANFILL, City Clerk of the City of Grand Terrace, do hereby certify that
Resolution No. 2002- 08 was introduced and adopted at a regular meeting of the City Council of
the City of Grand Terrace held on the 9th day of May, 2002,by the following vote:
AYES: Councilmembers Hilkey, Larkin and Ferre; Mayor Pro Tem Garcia
NOES: None
ABSENT: Mayor Buchanan
ABSTAIN: None
Brenda Stanfill, City Clerk
Approved as to form:
City Attorney U
Jo V'erhelle- city Coop Agnnt-SFMRB-SanBern.DOC Page 1
COOPERATION AGREEMENT
BETWEEN
THE COUNTY OF SAN BERNARDINO
AND
THE CITY OF Grand Terrace
THIS COOPERATIVE AGREEMENT ("Agreement") made and entered into as of
4/11 200Y,2by and between the County of San Bernardino, a political subdivision of
the State of California(the "County"),and the City of Grand Terrace (the"City"). _
WITNESSETH:
WHEREAS, Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the
State of California (the "Financing Act") (commencing with Section 52000 of the Health and
Safety Code authorize counties and cities under the Act to issue revenue bonds for the purpose of
financing home mortgages authorized by the Act, and Article 11 of Chapter 3 of Part 1 of
Division 2 of Title 5 of the Government Code of the State of California (the "Refunding Act,"
and, together with the Financing Act, the "Act"), commencing with Section 53570 of the
Government Code, authorizes the County to issue bonds to refund its revenue bonds previously
issued to finance home mortgages under the Act;
WHEREAS, the County is authorized pursuant to the Act to finance home mortgages
with respect to property located within the geographic boundaries of said counties and cities;
WHEREAS, the County has determined to engage in a home financing program within
the geographic boundaries of the County pursuant to the Act,in connection with the construction,
acquisition,rehabilitation or improvement of homes in the County,all as provided for in the Act; _
WHEREAS, the Board of Supervisors of the County adopted Ordinance No. 2496 on
November 17, 1980, declaring its intent to engage in a home mortgage finance program (the
"Program") pursuant to the Financing Act and to issue indebtedness pursuant to the Act in _
furtherance of the Program;
WHEREAS,the County has determined to finance the Program by, among.other actions,
the issuance of"County of San Bernardino Single Family Home Mortgage Revenue Bonds" or
"Refunding Bonds" (collectively,the"Bonds"), in one or more series and in such amounts,to be
determined at a later date as authorized by the Act and the Internal Revenue Code of 1986 (the
"Code") and by taking any other actions necessary to support the Program, including the =
implementation of the Additional Program(s)as defined herein; _
WHEREAS, prior to the effective date of this Agreement, the City has entered into a
Cooperative Agreement(the"Existing Cooperative Agreement")with the County with respect to
the Program and has agreed to extensions of the Existing Cooperative Agreement pursuant to
letters (the"Extension Letters") provided by the County from time to time, and, in addition, the
scope of the Prior Cooperative Agreement has been expanded pursuant to the terms of such
Extension Letters to include certain Additional Programs;
Jo VerheIle- cit Coop Agrmt-SFMRB-SanBem.DOC Page 21
WHEREAS, the City,pursuant to the Act, has adopted the Program and the Additional _
Programs pursuant to Resolution No. _, and has determined to cooperate with the County
pursuant to the Act in the exercise of its powers under the Act for purposes of the Program and
the Additional Programs;and =
NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the
parties hereto agree as follows:
Section 1. The terms used in this Agreement shall, for all purposes of this Agreement,
unless otherwise defined herein,have the meanings assigned to such terms in the Act.
Section 2. The County agrees to undertake the Program and the Additional Program, and
to issue securities therefor pursuant to the Act and the Code from time to time to the extent that
the County receives allocations from the State,or in order to refund certain outstanding Bonds, or
as otherwise legally permitted.
Section 3. The City hereby agrees to cooperate with the County in the exercise jointly or
otherwise of their powers for the purpose of financing home mortgages under the Program and
the Additional Programs, by agreeing that the County shall exercise such powers to make or
acquire home mortgages under the Program, or perform related actions under the Additional
Programs,or to refund such securities, all as more specifically set forth in the Act,with respect to
(y property located within the geographic boundaries of the city.
Section 4. The City, pursuant to Section 8869.85(d) of the Government Code of the =
State of California and solely with respect to single family home mortgage bond allocation,hereby
assigns to the County any portion of the State ceiling for private activity bonds allocated to the
City by the California Debt Limitation Allocation Committee("CDLAC")pursuant to Section 146
of the Internal Revenue Code of 1986 and Section 8869.85 of the Government Code, to the
extent such allocable amount is allocated directly or indirectly to the City either in conjunction
with an application filed by the City, or an application filed by the County. Such assignment is
solely for use by the County to provide financing for properties located within the territory of the ,
City or of the County.
Section 5. The City agrees to undertake such further proceedings or actions as may be
necessary in order to carry out the terms and the intent of this Agreement. Nothing in this _
Agreement shall prevent the County from entering into one or more agreements with other
political subdivisions within the County, if deemed necessary and advisable to do so by the
County.
Section 6. This Agreement may be amended by one or more supplemental agreements
executed by the County and the City at any time, except that no such amendment or supplement
"shall be made which shall adversely affect the rights of the holders of the Bonds issued by the
County pursuant to the Act in connection with the Program.
f _
� Jo Vorhelle- city Coop Agrmt-SFMRB-SanBem.DOC Page 3
r_
In addition to the Program, this Agreement is intended to include any additional home
financing programs (the"Additional Programs")that the County elects to implement pursuant to
the laws of the State of California, provided (a) that prior to the implementation of any such
Additional Programs,the County shall provide the City written notice of its intent to include such
Additional Program under the terms of this Agreement and(b)the County shall not have received i
written notice from the City rejecting the inclusion of such Additional Programs within 20 days of
such notice, or terminating this Agreement as provided herein. The programs listed below shall
be deemed to be Additional Programs included under the terms of this Agreement:
1. The Extra Credit Teacher Home Purchase Program (the 'Teacher
Program")which is a home mortgage finance program that provide mortgages to qualified -
teachers or principals who meet certain conditions. In December 2000,the County issued
$14,235,000 of such Teacher Bonds after providing notice to the City.
2. In February of 2000, all participating cities executed letters approving the €
County to act on their behalf in joining the California Cities Home Ownership Authority
(CCHOA) in order to make an existing CCHOA Lease Purchase Program available
Countywide. During the year 2000, CCHOA purchased approximately 85 residences
within the County of San Bernardino on behalf of lease-purchasers. On January 23, 2001,
the County Board of Supervisors approved the County's continued participation in the _
CCHOA Program. On June 21, 2001, CCHOA issued $55,000,000 in bonds to provide
ongoing financing for its Lease Purchase Program.
3. In January of 2001, the County issued $500,000 of its Taxable Single
Family Home Mortgage Revenue Notes (Fannie Mae Down Payment Assistance
Program), 2001 Series A (the "2001 Notes'). The proceeds of the 2001 Notes are
available for a down payment assistance program (the "DPAIN Program') that was
developed by the County and Fannie Mae. The DPAIN Program provides supplemental
funds that may be used toward down payment and closing costs in conjunction with other
mortgage programs, including the Program,the Teacher Program, as well as the County's
HOME Program Homeownership Assistance Program (HAP), and to provide down _
payment assistance for households with incomes up to 140% of statewide median(higher
than the income limits of those three programs) when used in conjunction with any other _
mortgage program,subject to the income limits of such mortgage program.
Section 7. The term of this Agreement shall extend (i) with respect to anv Bonds issued
in conjunction with the rights provided in the Agreement(including any refunding of such Bonds),
until the Bonds issued or refunded under the terms of this Agreement, are fully paid and retired;
(ii)with respect to the Countv's right to apply for and receive allocation in conjunction with the
rights provided in the Agreement, until the terms of this Agreement have been terminated in
writing by the City; provided (a) that prior to an application by the County requesting an
allocation the County shall provide the City notice of its intent to continue the.terms of this
Agreement and (b)the County shall not have received with 10 days of such notice written notice
from the City terminating the provisions of this Agreement applicable to such application; (iii)
with respect to anv Additional Proarams, in conjunction with the rights provided in this
Jo lrerhelle- city Coop Agrmt-SFMRB-SanBern.DOC Page 4
Agreement, until County receives written notice from the City terminating such
Additional Programs; and (iv) until the County receives written notice of termination of this
Agreement on a date that is at least 10 business days from the day of such notice, provided the =
other provisions of this Agreement are not violated. =
Section 8. This Agreement shall take effect from and after its adoption.
Jo lierhelle- city Coop Agrmt-SFMRB-San Bern.DOC Page 5
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and attested by their proper officers thereunder fully authorized, and their
official seals to be hereunto affixed, all as of the day first above written
Attest: COUNTY OF SAN BERNARDINO
By
J. Renee Bastian, Clerk of the Board Thomas R Laurin,Director
Department of Economic and Community
Development
APPROVED AS TO FORM BY
ALAN K. MARKS, COUNTY COUNSEL =
By
Michelle D. Blakemore,Deputy
Attest: city of Grand Terrace
City Clerk By Thomas Schwab 2 City Manager
Authorized Signatory
Jo Verhelle- cit Coo A rent-SFMRB-SanBem.DOC — Pa e 6
Cooperative Agreement
County and the City of Grand Terrace
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COOPERATION AGREEMENT
BETWEEN
THE COUNTY OF SAN BERNARDINO
AND
THE CITY OF GRAND TERRACE
CONCERNING THE
COUNTY OF SAN BERNARDINO
SINGLE FAMILY HOME MORTGAGE REVENUE BONDS
AND RELATED HOME FINANCE PROGRAMS
6
Cooperative Agreement-SF MRB-San Bern.DOC
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Cooperative Agreement =
County and the City of Grand Terrace
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Cooperative Agree ment-S F M RB-San Bem.DOC