HomeMy WebLinkAboutRDA RES 284RESOLUTION NO. 284
A R SOLOTI01i O! TI PALM DSSBR'P It DSVSI,ppYgl Tl'
P►GSNC B3TABLISHIIiG 1 1 PROGRli11 t 1'O PitaiTIDE
FINANCII G TO I 10NPROFIT CORPOR TION3 FOR
RBSIDBMTI ►L t li3TI JCPIOM P►V71IL H i.E P►T
AFFORDi1BI.E HOUSIIiG COST II 1 TH CIT! O! PP1LM
DE3ERT
TH8 PALM DgSSRT RBD$VSLOPMSNT ,R SN CY HERSBY FINDS,
DBTBRMINBS, RSSOLVSS AND ORDERS A3 FOLLOf B:
Section i. . Und, r ,. and ..pursuant to the
Covaunity Redevelop ent Law, Haalth aad sa€et -Code 5ec io 33000,
g . sea., the State Leqislature has_f. ound.-aad -daclared that a
funda ental purpose of redevelopveat is to expand the supply of low
and oderat• incoa e housing. The State Leqlslature has found and
declared that it is necessary and ossetttiel that radevelopaent
aq ncie be authorized ta ake long-tert, ;lc +-interest loans
throuqh qualified .so tqaqe lendcrs to ; Einance• rasidential
construction in order. to encou age inve»tsent and upqrade
rodQvelop et t . pro c .a eag and incraaao thg tupply of hous inq .
The Cosaun tX Red vel op at I.a provides vaFiow aacbaais s for a
rodey ,lap ea apqncy ta.gr,ovide fiaancial aes ,stance to or for the
b n fit . of: poraoaa a : faail es- - pf wrSr loNr loM and od rate
inco o to obta p ko inq at an af#ordabl• cost. Thesa ■ chenis s
incl ud , but ar not .13a . to-, ha finasiein - o r ideatial
Q a tructt on pt s $wsut to 8 ction-33T50, . . , of tit Coiuunity
Redrl telOpi ilt La1i r 1it d - I Ih1C 1 _ 1@ 11q :1Cy . .ai 3loilLed to lake
ortqaqe or cqoa;tiru tiiQ a _ qa , itrpuQh Qyal fiod aoFtqaq lend rs
to participatinq parties for re idential construction. vader
Sectioa 33753 (e), participatinq parties include "any ...
corpo ation. .. f,raq tiriaq, f i a#a q- fQr reaic atial construction .
." Many nonprofit corporatione described in 3ectio r.501 (c) (3)
of Title 26 of the Uaitad States Code have the requiaite Qxperience
and axparti+ • , o ,c v o , qwa and o erato hovaiaiq occupied by or
available to pareona aad faailies of very la -,- loM aad oderate
incose at an affordable housinq cost.
S Gti _ Eata liahi eti of Proaraa - e 1►q acy hereby
Q tabl.i h ita "Iivo qf i : ,Af o rdabi• Housipq- Financinq lroqraa"
unde= d _ puY'wa t to- ; t a eaA utiot ia furt3tera ce of . he
af orclab le ho s A9 Q f i d pbj etiv s ot tb AQ acy ancY tlte
findinqs, declaration and deterainations of the 3tate•L islatare
set forth in the Co uunity Redevelop ent Law, and especially
Section 33750, g . q. thereof.
RS30LUTION NO. 2�
Section �. Definitions. For purposes of this
Resolution, the following terms shall have the meaninqs ascribed
thereby, unless the context requires otherwise.
(ay "Construction loan" means a loan to finance
residential �oaetrs�ction einder this Progral, v�hetl�er such loan is
insured or uniAeured.
( b) "�tnanc�nq" �eans the lending of soneye or any other
thing oQ value for Che purpose ot facilftating residentia�
construction pursuant to this Proqram.
(c) "Local codes" means applicable local, State and
federal standards for reeidential construction includinq any other
standards adopted by the Aqency.
(d) "Mortgaqe loan" •eans a long-torR loan which is
secured by a�ortqage ar►d is ■ade for pertanent financing of
rasidences, pursuant �o this Proqra�.
(�) "Participating party" seans anp notiprofit
cos�oration de�criDed in section 501 (c) (3) of Title �6 of the
United 8tates Code and�aitg person or entitp obtaininq houeing fro■
or through a nonpsofit corporation described th�rein.
(f) "Qualified �ostgaqe lender" �eane a oartgage lender
autnorized by th� Aqaney �o da 'iS�le`lnees Nfth thi 7lqency a�d to aid
in financinq pursuant to this ��oqra� oR behali of� the 1lqenep, for
whie3t servic� tha qna�i�fed ■ortgaq�- le�tder dr�li be' reesor:eb�y
coap�aaa4ed.� Such a�ortqag� �ender bhall�be a s�nte or na�iot�al
Dank, f�Q�rsl or ata�ta�Cha�r�ered saviAge an� ioati'aeeociat3on, �or
truat co�patip or anrtgsqe baxf�e�- �vhich is ' ea�pa�r�`� o� pro�fdtnq
s�eviQe or otitif�►i� aiding in th� fiAancin� of rartgagei 'on
r�aid�ntfal ce>rtet=vc�3ee�fthi3�'Ehe t�erritor�ai ��ediction of the
1�9�ncY • . . . - � . . : . _
.. � .. ,
(q) "Ar�id�tial con�s�ruCtion� �eans=the construction of
new residiac.va. • ' � �� - "i
,,
( hI "Aa�aid�nc�"
residential structbro._
,L.. i. � . ...� .
-��ene real p�op+erty ' inproved � �+ith a
_ � � .�,
(i) "Revenu� bonds" seans any bondr, notes, interia
certtfice��t, dsbenturu or ot�fe�r ab �
. lfqarGions iafewd by Lhe Aqency
pur�uast tm thls . Prqqras and xhi�ch' � ar� -pay�bYo �xclusivelp lro�
revenuee aocY -t`ros ang othar i� speCified ia �Chta Proqra� upon
Mhich.. th� a��nw boo�ds NT b� � rad� • cha�q� and ' iro� Mttfch they
are payable . .. � - �. . ' i � . -
,. .. _.. . t . .. -
„ _ , . - -a
2
RS30LUTIOIi I�10 . 2 t�4 -
(j) "Revenues" �eans all asounts received as repayment
of principal, interest, and all other charqes received for, and all
other incose and receipts derived by, the Aqency from tha financing
of residential construction, includinq moneys deposited in a
sinkinq, redemption, or reserve fund or other fund to secure the
revenue bonds or to provide for the payment of the principal of, or
interest on, the revenue bonds.
- . � „ . . _ . - _ � . . � _ . . . . _ . _
(a) �lithin its territorial jurisdiction, the 1►qency may
deter�eine the location and character of any residential
construction to be financed under this Proqra� and nay make
aortqaqe or construction loans to participatinq parties through
qualified aortgaqe lenders, or purchase e�ortqage or construction
loans without pre�aius made by qualified oor.tqaqe lenders to
participatinq parties, or make loans to qualified a�ortqage lenders,
for financing�any o� the followinq:
(1? Residential construction witbia a redevelopment
project area of the Aqency.
(2i Residential construction of rasidencec in which
the dwe211nq units are committed, for the period durinq which the
loan is ovtstandin9, for occupancy by persona nr fasilies who are
eliqibie Lror financial assistance epecifically provided by a
goverrn�ntal aQency for the benefit of occupan�s of tha rQsidencQ .
- �`j3r Ariy loans �o qualified aortqa4e 1Qnders shall
be ■ade und+er tei�ss and condi�ti�o�s which, 1n addition to other
provisi-ons as tleternlned-bp the Aqency, shall require the qualified
sortqaqe lender t� use all of the net proceQds thQraof, directly or
ind3rectip,-!o�*°ilie aakinq oP ,ortq�qe loana or construction loans
in an appropriate princtpal anaunt�equal to the asount of the net
proceeds. Those aortgaqe 1oan8 �ay, but need not, be insured.
. . . . � . . -: _ : . _
(b� (2)_ Rot Iess than 20 percent. oi thQ units in any
res3dential prof�ct linanc�Q pureuant ta th�s Prnqra� shall be
oecupied Dy, or �a�e�avaciYaL�le t0,. individuals of lor aud a�oderate
fnca�e, as dafii�ed�� S�c�ion 143 (b) (i2) (C) of T1tla 26 of the
ttnited states Cod��. f the sponsor elects to e�tabli,eh a ba�e rent
for nnfts reairved for;'io�ier .incQae �householda,. the base rents
aha12 De adjust�d ior household-sizb, as detessined pursuant to
8ection 8-ot ���ttYe� IInitAli � St�tea Housinq Act o%� 1937 or its
auccessor, tor a ta�iip of-one �erson in tho�ca�e of a studio unit,
two persons in th$. ca$a f atone-bedroo� uait9 three persons in the
case -af �a two-b�dra �it, four-p;ersons in t2�• ca� o�.- a three-
bedroo� unit; � Yi� petsons in the case of a four-bedroo■ unit.
3
RS30LUTIOt�i NiO. 2� --
(2) Not less than one-half of the units described
ia paraqraph (1) shall be occupied by, or made available to, very
low income households, as defined by Health and Safety Code Section
50105. The rental pay�ents for those units paid by the persons
occupying the units (excludinq any supplenental reRtal assistance
fro■ the state, the federal qovernment, or any other.public aqency
to those persons or on behalf of those units? shall not exceed the
amount derived by multiplying 30 percent times 50 percent of the
median adjusted qross income for the area, adjusted for fasily
size, as deter�ined purauant to 9ection 8 of the United States
Housinq Act of 1937, or its successor, for a fa�ily of one person
in the case of a studfo unit, two persons in the case of a one-
bedrooa� un3t, three persons in the case of a two-bedrooi uriit., four
persons in the case of three-bedroos unit, and.five persons in the
case of a four-bedroo0 unit.
(c) The Aqency shall not issue � ba�ads until the
inforsatfon required to be filed pursuant. to Govern�en� Code
Section 8855.5 has been filed with the California Debt Advisory
Con�ission and the Treasurer certifies to _the State Leqislature
that the�Agency has fiZed that tnformation.
(d) Units required to be re8erved for occupancy as
provided in subdivtsion (b) of this Sectian 4 and financed with tbe
proceeds of bonds issued pursuant to thii� Proqras ahal.l revain
occupied by, or �ade avaflable tc, those p�rsons:until the boads
are retired. thrtts required to be reserved for occu�aacy as
provtded in aubdivision (b) and financed with the proceede of bonds
issued pursuant to this ProQra� st�all resain oCcupied by, or ■ade
available to, those persons for the qitalified D,�bject period. For
purposes of this Section 4, "qua��lied praject Dericd" sesna either
15 years after t�e later of the date tho bonds:ara iBsuad or the
dat� �+Iien one-haZf oi � the .unitg' irt the pro�ect wqrs, first occupi�d
or nnti2 the bonds.�re rQtired. �hichaver tise pQriod i� loaqer.
( e r loYloptrtg the '�'xpiration or teriiination of the
qual i f ied pro j ect period, except ,�n tha avq�t -of f oreclosure and
rede�ption of the bonda, deed it� lieu o� f.o,rgc�asure, a�inont
do�ain, or action of' a£ederal arq�ncy y�o�tentin� �,�,n�orceiea�, uaits
requfred to be reB�rved for occupanc� �purauatat � to �aubdivisian (b )
oi tAis, S�ction 4 and fin�nced wit�i �roc.�e t o,f boad� iosued
pursuant to� �tts Proqra� all �re�ain'�availa�� ��o any eliqible
n
househoY�� o�+cuppfnq_ a res r�e u�iit at. �the idat4 ,of �iration or
terninat3oa, 8t- '� rent not ��ater thau th� ai►ount set forth by
suDdfvision� (b-�', uat11 � earliest o� amy o�`th� followinq occur�:
. . . _ i - . `'� . . . J _
' � 2}�'!$�r houselibld'�s `inco e ql�tce�rd�* 140 Fceat of
the iaxinw e3'�qiDle inco�e sDectfied 1A�sul�di�%aiDn (bI�
4
RRSOLUTION NO. �.-: _.
(2) The household voluntarily �oves or is evicted
for "qood cauae." ��Good cause" for the purposes of this Section 4,
■eans the nonpaye�ent of rent or allegation of facts necessary to
prove aajor, or repeated ninor, violations of eaterial provisions
of the occupancy aqreeaent which detrinentall� affect the health
nnd safety of other persons or the structure, the fiscal inteqrity
of the development, or the purposes or special proqraa�s of the
development.
(3) 30 yeare after the date of the comsencenent of
the qualified project period.
(4) ThQ sponsor pays the relocation asaistance and
benefits to tenants as provided in subdivision (b) of Govern�ent
Code Section 7264.
(f) DurinQ the three years prior to expiration of the
qualifiQd project period, the sponsor shalf continue to make
available to e1191b1e households reserved ur�rits that have been
♦acated to the s�a�e extent that noareserved unit� are ■ade
avaiiable to noneligible house�iolds. �
(g) Th� require�■�enta of aubdivisiona ic) to 4f),
inclusive, of t2�- thi� 3ection 4 shall be contained in a regulatory
aqree�ent, ra�ordad in the County of Riversido which includez the
leqal description of �he property and Nhich ehal�l be indexed to the
name of the owners as a grantor.
,
(h) Notwithstandinq Civil Code Soction 1462, the
provisions of this 3ection 4 shall run with the land and may be
eaforeed •ithe;,�n laM or in equity►,by aay resid�nt, local aqency,
entity, or by any other person adversely af€ecte� by an owner's
failure to cosply with the provisions of this Section 4.
_ F .
Secticn�:5. Zuuanae of R�venua �ondt: Fuadinc and
�fundinc Pr�viotu Issues. The Aqency �e�Y isat�e rever�ue bonds for
the•purpose of �3ne8c�AQ resic�atiel conatructiart a�thorized by
this Proqra� and for the purpose of fundinq or refundinq previously
i�sued rave�uts botula-. _ - .; '
- �L - , �, •� � -
Baa��o� �6.1 i-{��t�*-_ �, o� �es, ara�a and inter�st
g,��. T'!�. J�eaGy •�ay establisi� 21Ritations reepectinq fees,
charqea, andt, �,�t*r.e/� ratQa to be �-uaed by cpnalif iad �ortqaqe
3�enders far f#��cin� re�dQnX-ial � co�structioa pnrsuant to this
Proqran and sa�- fro� tia• to ti�e r.�vipa suctt f�a, ciurqes, and
in�ereet �a�ea to raflaet_chanqQs in inteaest rat�s o�� th� �►qency� s
rQvon�e bonda, 14sss�� c3�4a to defaults, chaaqo� in loaa-8arvic3nq
aharqea, or other pxp�aes rela�ed ter � ad�inis�ration of the
resldential �oast�uct,ian �,inancin�:;,pro�a�. ]►�y_cite�qe in inter�st
ratQ shall conl,o� � tap� t�e .p�rovis�ions af Civil - fAde B�a�ion 1, 916 . S,
�
RBSOLUTI O!1 P10 . 2 b� ---�
except thaL paraqraph (3) of subdivision (a) of Section 1916.5
shall not apply and that the "prescribed standard" specified in
Section 1916.5 shall be periodically deter�lned by the Aqency aft�r
hearing preceded by public notice to affected parties, and shall
reflect chanqes in interest rates on the Aqency's bonds, and bona
fide chanqes in loan servicing charges related to the
administration of this P�oqras.
Section 7. purchase of Mortaave Loans: Terms and
Conditione. The Aqency say purchase mortqaqe or construction loans
�ade by a qualified mortqaqe lender Nithout premiu�a or oay itself
pay such fees and charQes incurred in lending money for the purpose
of residential construction and may collect and disburse, or aay
contract to pay any person, partnerehip, asaociation, corporation,
or public agency for, collection and disbursal of paysents of
pr3ncipal, interest, taxes, insurance, and mortgage insurance. The
�►gency •ay hold deeds of trust or mortqaqea as security for
financing residential construction and say pladqe or a��iqn the
saae as security for repayvent of revenue bonds. Such deeds of
trust or �ortgaq�s �ay b� assigned to, and held oa be?tali oi the
Aqency by, any bank or trust cospa�y appointed to act as trustee or
fiscal aqent by the Agency in any indenture or resolution providing
for f.ssuance of bonds pursuant to this Proqr�. The Aqency may
eatabliah the ten�s and cor�ditions of ffnanciag, which shall be
Consiste��t with the provisions of any applifab3e federal or 8tate
laN under NhicA the finencing is to be in$ureQ. -
Section 8. Loan� ��ualified Mortaave Lenders: insured
or Guaraateed Loa�s.
,
-�� .
ia) N�o loan shell De nade for finanC�n� exeept tt�rough
a qualified sortqaqe lender. • _-'
(bj All nortqaqe loans oade for financinq pursuant to
this ProQra� �ay �e iseur�d .or qiraraataed, in rrhale or in part, by
any instr�ent�it�y of •tl�e United S�atea, or the 8t�t�, a�r �y any
persoii lieansed to iueure �ortgaqes in th� Stat�.�
' • - s . ; r:�:
Section 9. F�v�lovient of Servtc�s;' 2� 1�geAcp ■ay
employ eng3neerinq, architectural, accounLinq, collection, or other
��rvic�s, inc2udtnQ a�r�ea i��conneatlon witl� t� 4ervicinq of
loans nado to participatinq plrties,�as �ay be-eeceaeary in the
judq�ont of thv llqeney ior -the successiol finat��ny of residential
coastructio� p�ursuent �o=th3s 4roqra�. � The '�y �ay pay the
rsasonab�0�cosbs o!'aoas�itinq angin�er�; ar�hitects�; eccountanta,
aad othe� �xperta; if, i�l���D� judq�ent of'�h� �►yency, such aervices
ara • n�cessaty to th� succeea�fu�� f inau�in� ef an� residential
conBtruction �d i� tt� �lqencp is not able-�'�e provide such
s�rvic�8. Ttw Aq�ncy �a� �p�oy ar� �ft� tht -•co�per:eaC3on of
financinq Coaaultanto, bond cot�asel, and other�''ad`iiaora as ■ap be
6
RasoLcrriorr No . z �
necessary in its judqment to provide for the issuance and sale of
any revenue bonds of the Aqency.
Section 10. B������ of Bonds; Source of Funds.
Revenues and the proceeds of eortgaqe insurance or guarantee
claims, if any, shall be the aole source of funds pledqed by the
Agency for repaysent of ita revenue bonds. Revenue bonds issued
under thie Proqraa do not constitute a debt or liability of the
Aqency or the State is pledged but shall be payaD�e solely from
revenues and the proceeds of vortqaqe insurance or guarantee
claia�s, if any.
3ection 11. Rules and Reaulations: Acauisition and
Qisposition oi Prooertv Riahts. All residential construction shall
be undQrtakQn or co�pleted subject to such rules and requlations as
may be pro�ulqated fraa time to tia� by the Aqency. Such rules and
requlations say be 8Qt fort'?� by aqree�ent with participatinq
partfes aAcl other pereona and entitiea ihvolved �n financinq
residential construction. The Agency a�a� acquire Dy deed,
purchase, lease, contract, qift, devise, or otherwise any real or
personal proparLy, atructures, rights, riqhts-of-way, franchises,
easeeents, and othar interests in lands necessary or convenient for
Lha f inanGirt� of r�aid�ntial construction�, upon- sut3� terna and
conditiona as it dee�s advisable, and �ay Ieaee, aell, oF dispoee
of the sa�e in such manner as ■ay be necessary or desirable to
carry out the objectives and purposes of this Proqram.
, . Sactio� 22.. I�ondiscrimination in Couetr-uction and
Disvoeit3an of leeaidon¢es. Th� I�genc� shall require ti�at any
reside.ac� vhich i.� cor�rvcted with f inancinq obtained under this
Proqras Bhall �ba _opon,. upan saYe or rental a� any� portiorr thereof ,
to all regardless of race, color, religion, national origin, or
aacastry. ?h�=:�1qen¢g shall alsa require that contractors and
subcoaLra�tor�angaq��it� rssid��tfal con�trtiction finaaced under
this Pragran shall -�-pro4tid�a �gtal opportwnity for e�ploy�uent,
qit�oufi .�l;a�ri�inatiiro� -a�s to ra�e, sex-, marit�nl sta�us, color,
rQiiqion, nativ�:- ariqin-, or a�oe�try. All coatracts and
sabceatsacts-�loar��r��iQ�atial conatrnction l�Fnanced- �der this
pregra�= shal�� �• �s ]�at= �ritiwut d'iscri�inat3on as � to race, sex,
�arital ata�uaT color, �eligdon, national oriqi�-, o�r ancestrp. it
shall b• the=-�ol� di tAe Aqency finaacinq residential
�on�trtictiou uAd�O thi� Proq�� to encouraqe participetfng by
�ino=ity coatstactior�, and the �qencp sha�21 adopt rules and
requlatiot� E��tploaf�ent ��t�ie provisions oi this gection 12. 3uch
FBles arid- req�]►a�ti,�s --�ay be set �- fort,� �= aqreeaent with
�az�i.cipaCi�nq p�tiM ai� athe� persons a� entitiQe iavolved 3n
�tnancinq ruiA�ntia]r omastructfoR.- � =� - �� � -
. . _ . (. ►� _ �� . _ _ ,. , -
- � '� : i ,._:'"..
7
RgSOLOTIOI�I NO. 2..! � ,� .,
- .� -Y.._., . :.�.�
(a) The Aqency may, from time to time, issue its
neqotiable revenue bands for the purpose of makinq or purchasinq
■rortgage or construction loans, or seking loans to gualified
oortqaqe Iendere, �o finance res3dential constructfon. In
anticiDation of the sale of bondz, the �►qency saY issue negotiable
]Dond anticipation notes and vay reneN the notea fro� ti�e to ti�e.
Bond anticipa�ion notes may be paid fro� the proceeds of sala of
the.bonds of the Aqency in anticipation of which they were issued.
Bond anticipation notes and agreements relatinq thereto and the
resolution or resolutions authorizing the notes and agreements may
contain any provisions, conditions, or limitations which a bond,
relatinq thereto and the resolution or resolutions authorizinq the
notes and aqreeaents ■ay contain any proviaions, conditions, or
limitations which a bond, aqreeoent relatinq thereto, or bond
resolution of the A9ancy eay caQtain excegt that any note or
reaewal thereof siisl,l uature at a tis� aot lator� tha�s fiv� years
fro� the date of isauance of the oriqinal note.
. (b) BvQry i�sue of �ts ravenve baads shall be a special
ob1lQa�ion caf the 1�goncy peyable froa all or any part of the
revenuos �cifie� in thie Prograai. 'Phs r�venue iaondt shnll be
.neqotiable tnstru�QAts for all purposes, s�ject on�Y to the
provt�ions of the:bonds for reqistration_
Section 24 . 14aourit of Honds to be Issued: Inc1u81ons .
In deter�ininq the a�ount of bonds ta be issuQd, the Aqency �ay
include all coste oi tbe i�suance of aucD reoenue bands, bond
reserva fu�ds, and bond intere$t estia�ated to accrus for a period
not Qxceedinq 12 �oaths froa the date of isanance��of tho bonds.
Section 15. �erial� or Ter� B�onda: Reeolution:
Cbndition� .• Tbe revsAue bronds �aX b� iseued� ag se�ial bontls or as
ter� boad�, os the: Aqency, i�.,it.� d3ecret�on; ay issue revenue
bonds of both type�. The reveuue bonds shall►be autbo�rized by
resolution of the Agency anc� shall bear such dl�� or. dates, ■ature
at sucla Li�e or t#��s, not exc��ding 50 y�ara fro� their respective
dates of isaua�Q, baar- �n�terest� at s,t�ch , f iz�d o�: variat�le ra.te or
ratea, be payable at �uc?� ti�e or ti�ts� be in'such deeo�inatione,
be ia cuch fors eith�r coupon or reQistered, carry such
registration►privilaqea, be exec�ed i� suct� manner, be payable in
lawful �onay of the Unitad States of A�e�ica, �►� �uch place or
places, and � bo subject to such terse -�p�•�, -rede�ption ae the
resoluLion or resoluti�a of the Aqency �ay Frovi�. Th� bonds •ay
be sold at oither a publia�or p.�ivate erle aad fwc aucb prices as
the Agency shall detor�ine. Pendinq praDaratiotr a�f_ tge definitive
bonds, the AqQncy aay iesue interi■ receipts, certificates, or
teaporary bonda, which shall be exchanqed for such definitive
bonds.
8
RssoLtrriorr rro. �-��
�
ection 16. Teras and Con itions of Bonds. Any
resolution or resolutions authorizinq any revenue bonds or any
issue of revenue bonds �aay contain provisio�s respectinq any of the
followinq t�r�s and conditions, which ahall be a part of the
contract x�th the holders of the revenue bonds:
(a) The pledqe of all br any part of the revenues,
subject to such aqreesents with bondholders as may then exist.
(b) The interest and principal to be received and other
charqes to be charqed and the a�ounts to be raised each year
thereby, and the use and dtsposition of the revenues.
(c) The settinq aside of reserves or sinkinq funds and
the requlation and disposition thereof.
(d) Lisitatians on the purposes to which the proceeds of
a sale of an� issue of revenuQ bonds, then or therea€ter issue, may
be appliec�, and pledqi,ng swch proce.eds to� seEgre t�ie pape�ent of the
revenue bQnds or any issue ai revenue bon�s.
(e) Lt�aitation� on the issuance af addit3onal revenue
b�nds, tAe.terss upon vthich adQ��fenal revenere bonds ,ay be issued
snd�secur�d, and ti�e refunding of outsta�dinq revenue bonds.
( f j TDo procedure, if any, by wi�ieit the terms of any
cuntract Mitn bon�hoid�ra ■a� b� a�endsd or abroqated, the asount
o£ revenna �vnda=tha� holdBrs of whia���uaL coneen� thereto, and the
sant�ar in whicir ewch cons�nt ■ay be g�ven . �
(9-) _ Llaitatioa o� e�cpendf�urea for operatinq,
admini�tration, or -u�2�er expaneea� o�i� -�he A4ency.
-' >: �/ r �!�
(h� 3pe�itfeation of tha aeta or o�tseione to act which
shall co�titu�e. a defau�t -in t%a-�utioe of the lkqency to holders
of its revvnu� :bond�: at�d� P�ovidiD�'�th� riQht� and ra�edies of such
holders in the e�t�nt -.of -the daiau�lf : -
. �1 -_ _ • ��i �1. '
(t} Th�r iort�ging of any residence and the slte thereof
for th� purposs=aE irwrinq� th��,bon�o�dere.
_ 9 - ,. . _ , .
. E��� Tlt+t �ortt�etqing 'of � jland, impra�ve�ents, or other
aasete vr�td h�r� a� par�ttc�patthg pa�tY for the purpoae oi securinq
the bondt�ol� . � � - � � �' u :
. . � ,,. .
- � i : � .
� ..,w* _t..ri -t: .; - �•,•�a �•-�- *tt���•�+_wnt o� Proeee�s . t�fhen not
i�aediataly r�eqoi�sode ta :prauide #inas�cfnQ- �under this Proqram,
reveaue� aad ti�-Droc�4da�oi rev�m,te bonds ■a� be invested in any
securittea aa� o�Yi4a�toz�- �thorize� bY- its trust indenture . such
iavestsents �ay include mortqaqe obliqations on sinQle-fasily
4
RESOLi1TI0N N�" _ 2�
dwellinq� pur:.hased fros a state or federally chartered bank or
savinq�� and loan association purauant to a repurchase aqreeaent
under which the bank or savin$s and loan association will
repurchase the mortgage obliqation on or before s apecified date
and for a specified amount, provided that the mortgaqe or the
repurchase aqreement shall be insured by a vortqaqe insurance
cospany licensed to insure eortgages in thQ State and qualified to
provide insurance on eortqaqQ� purci�ased by the Federal H�oae Loan
Mortgage Corporation or the Federal National Mortqage Association.
Section 18. Purchasa of Own Bonds bv Aaencv. The Agency
shall have the power ot�t of any funds available therefor to
purchase its revenue bonds. The Agency may hold, pledge, cancel,
or resell such revenu� bonds, subject to and in accordance with
aqreements with the bondholdere.
�actfon 19. S�curitv: ?ruet Acree�en� or Resolution. In
the discretioa of the AqQncy, any revenue bonde isaued under the
provisions cf thi� Proqra� •ay be se+cured by a trust agree�ent by
and between the Aqencp aad � corporete trustee or trusteee, Which
�ay be any trust co�pany or bank havinq the powers of a trust
coap�ny within or without thQ Stabe. Such a trust aqreeoent or the
resolution providinq for th� isauance o� re.veeue bonds aay pledge
or asaiqn th4 revQtuwe to be recQiv�d or�proceeda of aaY contract
or contracts pledqed, and may convey or mortqage any residence the
con�truction of whicb is to be f inanced out of the proceeds of such
revenue bo�. S�u�h truat aqreeeent or the resolutlon providinq
for the �sauaricv o#, bonde ■a�y pzo�ride for th� afsiqt�ent to such
corporate trustee or tru�taes of sortqaqe or construction loane or
loans to qualiffed Aortqaqe lenders, to be held by such trustee or
trurt�es on behali of th� Agency for tt�. bentfit of the
bondholders. Such truot aqree�oat or resolution providing for the
issuance of revenue bonds may contain such provisions for
protectinq and �nforcinq the ri�ht8 and ra�dtee pf the bondholders
ar ma�t be reaaotu�ie and pr�por_ and not in � vicflatioa of law,
includinQ a�c2s.�rovisi.one as aar be included ia.any reaolution or
resolutions of tha Aqency authociziYtg tihe issueace oi the revenue
bonds. Any baxik or truat company doing business under the laws of
the State which tay act as depositary of tho proceeds of revenue
bonds or of revenues or othQr a�opays may f,�ish s�ch inde�nity or
pledge such securities as may be required by the Aqency. Any such
trust agre�at. �ay aet forth- ttu _�i�itta and re�edies of the
bondhold�re arid of the truetee: Qr truat�ee; a�d: �ay r��tr�ct tne
individual riqht of action by bondholders. in addition to the
foreqoinq, any such trust aqreesent or resolution �ay contain such
other provi�ioua as tbo Aq�cy ■ay d�os�-reasona��� �d proper for
tha sacurlty of tiLt bcadho�,derp . All exps��• iractmFred ia �arryinq
out tho provi�foas oi euc2i tr�t aqree�ent or ra�olutioa ■ay be
treated a� a part of the cost o# �esid�eatial conetrwction.
1 _
10
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RasoLtrriorr Ho z._
standardr ae �a7 be eatablished bg
such reaidesltial construction shall
as the 14gency dee�s nece8sary.
�
�he Aqency ar�d that the work of
be su3�jeet to such supervision
Section 22. Loan Acreements: Ter�s and Conditions. The
Agency rsay enter into loan agreesenta with anp par�fcipating party
re�atinq to residential construction of any kind or character. The
terns and conditions of such loan agreements aray be as ■utually
agreed upon, but such terms and conditfons shall aot be
inconsistent with the provisions of this Progra�si or regulations
adopted pursuant hereto. Any such loan agreesent may provide the
�eans or eethods bp Nhich any mortgage taken bp the Agency shall be
discharqed, an� it sha12 contain such other Ler�s and conditions as
the Aqency oay require. The Aqency may fix, revise, charqe and
collect interest and principal and all other rates, fees, and
charges Nftli respect to financinq oi res3dential construct3on.
Such rates, fees, cha�rqes and�interest shall be f�xed and adjusted
so that the aggreqate of� such ratos, iees;•charges, and interest
will provids funds eufficiant with ot2rer revene�e and ironeys which
it is anticipated wi].l be available theretor, if arty, to all of the
following:
(a) Pey the principal of, and latereSt on, outstar:dinq
revenue bonds o� tt�e Agancy� issued ta ftnanC� such residential
consLruction�as=th� aa�t shall beco�e due and payable.
(b} Crs�te aa�d •aintatn reserves requir�ed or provided
for in an� seso�uLion aatnorizing such revenue bond�. l► eufffcient
a��cxuit oi tbe rev�o�no�s �er3v�ed fro� res��esitial const�tuation •ay be
s�t aside at sucA r�gular �tervala� as �ay be�provfded by the
reQolution in a�sinitiaq or other si�ilar ituid, whtch is hereby
p1e�gQd to, and clrar�d with, the� pap�eat oi the principal of and
interest oh such ge�enue honde as the sa� sha23 beco�e dee, and
t�e r�desptio� prica or t2:e purchaae prfce� of revernie bo�iQs retired
by call or � purcDasa a� th�ein� prov�ided. -'R�Q rates, fees,
int�rest, and bth�r ��arqes, �evenuear or �on�fs'so pledged and
ther�a�iter �e�+!l�ed� � by tlfe �►q�hey � she2� ia�e!li�te�T be aub j ect to
tde 2i�n oi suci� pl�q+e Mithout anp physicaY dl2l�ery thereof or
further act. The u�o and disposition of soneys to the credit of
such sinkinq or other stailar fund sha12 De subject to the
provisio:►s o! t�a reso�ution �uthorisinQ �th�_ issuance of such
r�venue bo�d+s . �xc�►t as aaly' oth�s�riee= be ptovided in the
resolution, snch siakiaq or ot'her ct�i2a� lun� �ay be a fund ior
all revenue bonda of th0 A9ency iseued to finance the conetruction
oi t2�a r��id�t�h'._ o#�. r putjcdtitlaT- #�irticirpatiay- psrty without
dist�action or pcidrity: S� '�q�neT, ?�a��e=�, in asig such
roae3ution �ap prewiO� tbat= �guch sin)fiifq or �o�rr si��lar furid
ehall b• tbe lnnd. ior _a particuiar-�pr�j�ci��,er projecta of
r�st�ntial coastrtycti,oa at�d fo�t`tri� boat�s fesued to finance such
project �r ,prajacts anit �a�r,' �csditionally, 'ar�thorise � arid provfde
12
RESOLUTIO!! NO. 284
for the issuance of revenue bonds havinq a lien with respect to the
security authorized by this Section 22 which is subordinate to the
lien of other revenue bonds of the Aqency, and in such case, the
Agency may create separate sinkinq or other similar funds securinq
the revenue bonds having subordinate lien.
i c) Pay operatinq and ada�inistrative costs of the Aqency
incurred in the administration of this Prograa.
Section 23. Trust Funds; Trustees. Al1 moneys received
pursuant to the provisions of this Prograa, whether revenues or
proceeds frov the sale of revenue bonds or proceeds of mortqage
insurance or quarantee claies, shall be trust funds to be held and
applied solely for the purposes of this Proqraai. Any bank or trust
company in which such moneys are deposited shall act as trustee of
such moneys and shall hold and apply the sau�e for the purposes
specified in this prograai, subject to the ter�s of the resolution
authorizing the revenue bonds.
,�ection 24. Liberal Construction. This Proqras shall be
liberally construed to effect its purpose.
PASSSD, APPROVED AND ADOPTSD this 26th day of August,
1993.
A7t8S :
NOBS:
ABSBNT:
ABSTAIN:
CRITSS , 1CBLLY, SNYO$R, i�lIL30P1, BBNSON
NONS
NONB
NONB
4 - � �1�, A l'-��- �-
at4'TEST :
�� _ ,
/ f ..� .,�C-�=G
Sheila . lliqa�i, ecretary
J�/an N. Ben�on, Chairperson
13