HomeMy WebLinkAboutResolution No. 7597RESOLUTION NO. 7597
A RESOLUTION AUTHORIZING APPLICATION FOR
ALLOCATION OF MORTGAGE SUBSIDY BONDS,
CONFIRMING FILING OF NOTICE OF SALE THEREOF
WITH MORTGAGE BOND ALLOCATION COMMITTEE
AND PROVIDING OTHER MATTERS PROPERLY
RELATING THERETO
CITY OF AZUSA
RESIDENTIAL MORTGAGE
RESOLVED, by the City Council of the City of Azusa, California, as follows:
WHEREAS, the legislature of the State of California has, pursuant to Chapter 8
(commencing with Section 33750) of Part 1 of Division 24 of the California Health and
Safety Code (the "act"), authorized redevelopment agencies to purchase long-term low-
interest rate loans to finance new residential construction in redevelopment project areas in
order to encourage investment within and to upgrade such areas and has authorized such
agencies to issue revenue bonds to finance the purchase of such loans;
WHEREAS, pursuant to the Act, the Redevelopment Agency of the City of Azusa (the
"Agency") proposes to undertake a Mortgage Loan Financing Program (the "Program") to
purchase loans (the "Mortgage Loans") made to finance new single-family owner -occupied
residential units (the "Residences") to be constructed within its Central Business District
Redevelopment Project Area as amended (the 'Project Area") and to issue Residential
Mortgage Revenue Bond (the "Bonds") to finance the purchase of the Mortgage Loans;
WHEREAS, to obtain an allocation to Issue the Ponds within the federally imposed
limit upon the issuance of mortgage subsidy bonds, the City of Azusa will cause to be filed,
pursuant to the Costa -Marks liousing Bond Allocation Act of 1981, as amended (the "Costa -
Marks Act"), a notice of sale of $20,000,000 principal amount of the Bonds with the State
Mortgage Bond Allocation Committee;
WHEREAS, in order for the City of Azusa to obtain a position for allocations in 1985,
or as soon as possible, 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
WHEREAS, a developer within the Project Area desires that the Agency reserve
appropriate funds from its Redevelopment Agency Housing Fund to provide the deposit
required to be made in order for the City to obtain a position on the listing for allocations in
1985, or as soon as possible.
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINEDAND ORDERED, as
follows:
I . The application to the State Mortgage Bond Allocation Committee for an
allocation for the Bonds tinder the Costa -Marks Act is hereby authorized and approved.
2. The notice of sale of $20,000,000 principal amount of such Bonds to be filed
with the Mortgage Bond Allocation Committee is hereby confirmed.
3. The City Administrator shall cause to be delivered to the Mortgage Bond
Allocation Committee a certified copy of this resolution, together with a certificate signed
by the City Administrator 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 in an amount which
equals 1/2 of 1% of the principal amount of the Bonds requested for allocation and that the
City wishes the notice of request for allocation to be deemed accepted by the Mortgage
Bond Allocation Committee as of its receipt, such certificate to be substantially in the form
attached hereto as Exhibit "A" and hereby made a part hereof.
Adopted this 5th day of NovembdN4 by the following vote:
AYES: COUNCILMEMBERS: CRUZ, COOK, CAMARENA, LATTA, MOSES
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
CITY OF AZUSA
Mayor
ATTEST:
WIR_� f..
APPROVED AS TO FORM:
City Attorney
d:Azusa 11