HomeMy WebLinkAboutAgenda Packet - August 3, 1992 - CC CONSENT CALENDAR E ORM
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: ROY E. BRUCKNEI 11 'ECTOR OF COMMUNITY DEVELOPMENT
VIA: HENRY GARCIA, CITY ADMINISTRATOR h)
DATE: AUGUST 3, 1992
SUBJECT: APPOINTMENT OF MEMBERS TO THE MOBILEHOME RENTAL
REVIEW BOARD
The City Council adopted a Mobilehome Rent Stabilization ordinance
which became effective in February of this year. This ordinance
called for the establishment of a Mobilehome Rental Review Board,
comprised of 2 Tenant representatives and 2 alternates, 2 Owner
representatives and 2 alternates, and 1 at-large member of the
community and an alternate.
The mobilehome tenants have met and have elected their
representatives, as have the Owners . The results are as follows :
TENANT REPRESENTATIVES
MEMBERS ALTERNATES
Barbara Knaus Bill Everton
Alan Turchek Shawn Salgren
OWNER REPRESENTATIVES
MEMBERS ALTERNATES
Henry James Richard Bell
Nancy Still Cyon Gibson
According to the provisions of the Ordinance, the At-Large
Boardmember and Alternate would be selected by the Board, and
approved by the City Council . Therefore, these members would be
appointed at a later time.
RECOMMENDED ACTION
In accordance with provisions of the Mobilehome Rent Stabilization
Ordinance, the City Council should appoint the aforementioned
individuals to the Mobilehome Rental Review Board as elected by the
Mobilehome Tenants and Owners .
Agenda Item
MEMORANDUM
TO: Honorable Mayor and Councilmembers
Honorable Chairman and Boardmembers
FROM: Robb Steel, Redevelopment Director p
43)6
Geoff Craig, Finance Directo/
VIA: Henry Garcia, Executive Director iki
DATE: August 3, 1992
SUBJECT: Sale of Agency Mortgages
BACKGROUND
The Agency recently refunded the 1979 Mortgage Revenue Bond to generate cash for
Agency projects and eliminate a variety of problems with the administration of the old
bond issue. As part of the refunding transaction, the Agency was granted ownership
of three mortgages with outstanding principal of $313,938. The mortgages are earning
9.1% interest on the outstanding principal and are scheduled to mature no later than
2012. The monthly payments are $2,698 after servicing fees.
The three mortgages were not purchased as part of the refunding transaction because
there were various peculiarities with each which did not meet the criteria of the
institutional buyers. For instance, one of the mortgages was extended by the Agency to
a former owner who repurchased his unit in the Rainbow Angling Club. No
underwriting was performed. Because of this, potential buyers want to discount the
mortgage to an unacceptable price for the Agency. The other two mortgages were
underwritten properly but had other documentation deficiencies.
DISCUSSION
The Agency would like to convert the mortgages to cash and has offered them to the
City Light Fund as an investment. The Agency has offered to discount the mortgages
to yield 10% to the Light Fund if held to maturity. Since the mortgages may prepay, the
actual yield may be higher. All of the mortgages have ample loan to value coverage
should a foreclosure ever be necessary.
Page 2
AGENDA ITEM
From: Robb Steel, Redevelopment Director
Geoff Craig, Finance Director
Via: Henry Garcia, Executive Director
Date: August 3, 1992
Subject: Sale of Agency Mortgages
The discounted purchase price assuming a September 1, 1992 acquisition date is
$291,304.22. In exchange for the purchase price, the Light Fund will receive over
$438,294 in principal and interest payments as shown in the attached Exhibit A. Some
of the mortgages may prepay and this will have the effect of increasing the yield on the
mortgages.
The Light Fund has the capacity to purchase the mortgages and the proposed return
exceeds other available investment options on securities of similar risk and maturity.
RECOMMENDATION
Approve purchase of the three mortgages by the Light Fund from the Redevelopment
Agency, authorize the necessary budget transfers, and direct staff to draft the necessary
legal documentation.
RRS/cbf
FISCAL ANNUAL
YEAR PAYMENT
ENDING AMOUNT
09/01/92 ($291,304.22)
06/30/93 $24,284.52
06/30/94 $32,382.44
06/30/95 $32,386.27
06/30/96 $32,390.47
06/30/97 $32,395.09
06/30/98 $32,400.15
06/30/99 $32,405.71
06/30/2000 $32,411.81
06/30/2001 $32,418.51
06/30/2002 $32,425.86
06/30/2003 $32,433.93
06/30/2004 $32,442.79
06/30/2005 $32,452.51
06/30/2006 $32,463.18
06/30/2007 $32,474.89
06/30/2008 $32,487.75
06/30/2009 $32,501.86
06/30/2010 $32,517.35
06/30/2011 $129,374.31
06/30/2012 $10,062.72
06/30/2013 $10,062.72
06/30/2014 $4,423.43
$438,294.05