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Home My WebLink AboutRESO 6094, . ' • ORIGINAL RESOLUTION NO. ij094 RESOLUTION OF TBE COUNCIL OF THE CITY OF PALO ALTO AFFIRMING THE CITY'S CONTINUED PARTICIPATION IN THE SANTA CLA..'U COUNT"! HOME MORTGAGE FINANCE PROGRAM WHEREAS, the City of Palo Alto ("City") has heretofore approved and executed a cooperative agteement c•cooperative Agreement") with the County of Santa Clara (•county•) pursuant to which the City and the County have agreed to coopet"ate in the implementation of the Santa Clara County Home Mortgage Finance Program ("Program•)1 and WBEREM, it is presently expected that the County will authorize, sel 1, and issue a second issue of mortgage revenue bonds to provide additional financing for the Program; and WHEREAS, the City and County wish to continue to cooperate in the implementation of the Pro9ram1 NOW, TBER.EPORB, the Councjl of the City of Palo Alto dues RESOLVE as follows: SECTION 1. That the Cooperative Agreement shall~ remain in full force and effect with respect to mortgage revenue bonds which may be issued by the County during cal~ndar year 1983. INTRODUCED AND PASSED: February 7, 1983 AYES: NOES: Bechtel, Cobb, Fazzino, Fletcher, Klein, Levy, Renzel, Witherspoon None ABSTENTIONS: None, ABSENT: Eyerly APPROVED: ,. . ' I . . . e· • ·. COOP!.RATlVE.! AG:U:SMSHT B.b"l'W£EN THE COl.lNTY 01" S.\NTA CLARA MID THE CITY Of' PALO M.'1'0 FOR PARTICll'ATHlN IN MORTGAGE REVENUE SOHO PROGRAM THlS CC(.)PERA~IVE AGkEEM£NT (the •cooperative Agreement•) i& hereby 111adt! hind entered into as of r.&B o 2 ~ , 1981, by and·~tw~en the C'OllNTY Of' SANTA C' ~ ~ a :tlf .~i.;&rrrrswn and bocty corporate and pulitic of the State of California (the •county•), and the ClT!C OF p,u.o AI.TO, a 11UnicJ.pal corporation of the State of Coalifon\id lthe • 1ty•j. ! ! ! !:!. ! ! .2 ! ! !!: WHEREAS, the County naa detet::mined to en9a9e in a ho11e 111ort9.'iqe finance pr09ram (the •pr09r .. •) pursuant to Part S of Division 31 of th~ Health and Safety Code of the State of C~lifo~nia (the ~Act•} to Make or acquire, directly or indirectly, lonq-term loans to finance th~ constr•Jction and acquisition of homes in the County, all aa provided for in the Actr and WHEREAS, the County has determined to borrow •oney to fin~nce the Pr09raa by th• issuance of revenue bonds Cth• •aonda•) as authorized by the Act and by the provisions ~t the Costa-Marks Housing Bond All~ca tion Act of 14)8\ (Cha.pt.er 3.5 _,f Pa'tt. \ of Di.viaicn 3\ of the Health and Safety Code of the State of California, the •eosta-Marks Act•) 1 and WHEREAS, the City •·•• ado;ited tM Progra• and deter11Lned to co• operate with the County pucaua."l.t to the Act in the exerciae of thei'r: powers unde~ the Act fo~ the purpo .. • of the Frogr&DJ NOlili, '.l'li£ReFORE, in consideration of the mutual covienants herein- after provided, the parties heteto agree aa follow•: SEC'l'IOM 1. 'the 'llfOtds and pllrasea of this Cooperative Aqre~iaent shall;= for all purp)sea hereof unles6 otherwise defined herein, have the iaean~ngs assigned to such words and phrases in th• Act or in the Costa-1'arks Act. !!£!!!!!-!· The Cour.ty agrees to ~se its beat efforts to ul'ldertake tile Pr091:JA1 and to isoue the b.: • ..da. therefor at> soon es tbe County de- tt. u11nes ::.h~ sam~ to be necea:a~ry an<J advi1>dtrl~. SECTION J. The City represents and warr~~ta to the County that: (i) the citi'ha• heretofore adopted & general plan for the City in con- for•ance with the provision• of the Planning and zoning Law of th~ Ste.te of CallfOi"nia (Governaent Code Section 1i5000 et seq.), (ii) said general plan include9 a land use ele~ent and a housing eleaent as re- quired by GovecnM1ent Code Section 65302, and (iii) the Program c>niplies with said land use ele .. nt and housing eleacnt. SEC'rION 4. The City agrees that the Coursty 1aay-aake or acquir ... ho111e mortgages under the Progr.,.; all as aore specifically set forth in the Act, with reapect to resid~nces ~hich are located within the 9ea- 91·aptiic boundaries of tnc City and which at't' identified in a Oe'lel- opec• • AqreeaP.nt exc..:ut.ed by lti.t cour.ty, the Cl ty and • ac.-cHop..•' 1 ti1!!< •ae~idenc~s•; and tbat ~ny and all of t~e City~• PQiH.tr• for the EN~pose uf f ina11cin9 holllk' ilG~l·Jl'<Je• pursuant t.:o the Act "'ith r:espect to the k4' a idences shall be jtae.:c ised t.iy the county. •• J '" . .. S!CTION 5. 1'1• City aqrees to tefr•in fro• particip•ting in $ny hoM aort9a9e finance prograa fro• whic:b bond proceeda would be ••de av•.i.lable to provide fin~ncing tac t.be a.•idencea. How11tver. the City apecifically renrve• the rigbt to •D9A9• in other ha.e aort1Ja9e fi-nance proqr4.ea includin9 t>ut ~t lt.ited to p~oqram& authorized by the Act, by the provhion11 of He•ltb end Safftt.y Cude Sections 131750 '1t ~· 1•s.B. 99•), or th• Marks-Foran Re•idential Rehabilitation Act Ol T'73; and, io connect.ion therewith, it ls understood and a9reed th~t the City is not by thi• Cooperative Agre!Hlent ossigning to the County it& Allocatio~ of q~alified 110ctga9e bonds P\lrsuant to tb• Costa-Marks Act. SECTION 6. The ~ity a9ree8 ~o undertoke such further proce~dings or actions as •ay be neee•aary in or..S.r to carry out the ter1m and the intent of this Cooper•tive Aqrfftaent1 •nd the City furtl\er a9cees to refr11in fro• taking 11ny action vbicb would to its knowledr:Je tend to adver:;cly Jiffect the ratin9 on U'ut Bonds to be is11ued by the County pursuant hereto. SECTION 7. Not.bing in this Cooperative Agreeaent shall prevent the County frOll enterin9 into one or .ore aqree9eftts vith othec polit- ical subdivisions within the county, if d...-ed necessary and advisable to do so by the County. SECTION 8. Thi• Cooperative '"9ree11ent ••Y be .-ended by one or ..ara supplemental agreements ea•cuted by the County 41nd tbe City •t an~ time, except that no such AHnd!Mnt or aupple11ent ah.al!. be ••de vhich shall adveraely affect the right• of th• bolder• of any bonds issued by the county in eonnection with it• ba.e 110rt9ag« finance pr09rAJ1. SECTIOH 9. It i~ understood and agr~d thot th4: Cou~ty will in~u( cerufn coat: and e~n .. 1 in atte91Pti1MJ to iaau• tbtl Dond•. includinq a fee for the pr•paratlon of a de1Ynd/fe~sibility study, rating aqency fee& •nd espenHs, and the c-oat cf printing a preli•inary official state.ent. In order to provide a aource of revenue with vhich to pay auch coat• and •zpenaes, the County require• that developer& vho wish to participate l.n the Proqrua pay an application fews .and the County estisatee that •~cb feea will be aufficient to pay &aid coats end e•- penaea. Bow•ver, in the event that tbe Progr .. ia abandoned and auch coats and eicpqnses eaceed tbe •CJ'Jrecjate ..ount of develofW!r&• applica- tion feea, the City agree• to reiat.urse tbe County for a reai>onaole share of tbe eacesa .aount of said coat• al\d e:spenae•. '?he a.ount of the City•s •h•r• thereof &hall be deten1ined by ttt. mutual a9reeaent ot the parties and •Mll b4t baaed upon the ratio of tbe principal u.ount of aort9o19e loan• which were ant:ici~ted to be ucle iA tbe City to the total pcincipal aaount of mort949e loan• which were anticipated to t>9 •Ad• h'om Bond proctMds. JN Wl'l"lll~S WH&iUtOF, th~ parties hereto have cauaed this Coopera- tive Agreeaent to be executed c11ncl attested ~Y their proper off ice cs thereto duly •~thoriaed, and ~heir offi~i•l .. &la to be he~•to afriasd, all •a of tbe d&y fic•t &bove written. -2- ,.. . ··e· ·· . • ' . : . \\ ' CITY OF PALO ALTO ltk, --;r,Gkc Vice Aiyor · . .. ~ . . . • . . • P"/o .Alto .JJof!..iUt., Lorparrdion February 2, 1983 Honorable City Council Palo Alto, r..alifornie Members of t.he Council: . ..i7 ffANll-T()N .\\'t!'Nl't~-.. 1-ITli ~ t l","H.O Al.TU. 1 .. U.lt'OllC)l:I.'\ l)l;llnt St.:bject: l>ewloper Agreement, Santa 1'.:lara County Single Fa.111.ly Mortgage Revenue Bonds Ac its meeting of January 26, 1983. the Palo Alto Housiog Corporation voted unanimously to urge the Council to apptow the ate.ff reco-nd&tions to amend the Developer Agreement betvee::i us. We believe die fle:ld.bili ty pro- \."i.ded by these change.a will aid our •rketiug efforts at Birch Court. We plan to utilize our regular BKl waiting liat to find purdlaaera of both the five very low priced am unit& in the development: and the thirty-five units which we will aell at our coeu. Accorcling1y, we su.~yed the wait- ing list lut June t.o dEt.enli.M ._.the-r tbel:e wn people on the list who were not firat-tilDe ho9ebuyen and who were able to afford the higher p:cices of the Birch Court coiuiomoiuma. We discovered that there were indeed a fw pe:ople wbo were not fira t-tiae hoaebuyera. One, fot' eu.aple, had beea thTovah a divorce, and although not U•;i.ng in the home, had shared title to it up to about on.is and a half yegra ago. Another is living in a relatively low-priced cortdoa:iniua in Fremont. and wanu to aoft cloeer to her job iu the lndwltrial. Park. Permitting 10% of the proceeds of the bonds to be used by other than fire t ti• bo.ebuyera will enable us to sene auch f 11111.Uea • 'l"be~ :rare. alao a ftnr p&opl.e on the waiting Uat with in~ which thf:y e.o- t.iaat11d will be between the cun-ent •ri•• inco.e of $43.800 and •ilout $46 .ooo by next year. We t'bink it would be a disaeni.ca to exclude •ucb fud.llea fra11 the QPportmdty to purcha.e Mrch t'.our~ C'onckl-1.niusa. Baaed upcm. ou~ pn11'd.nat'1 calculati-ou • famllea vi t.h income• below $40. 000 would need very aia&:>le dowpa.ymnta to be qualified by the lendi.ng institu- tion to purchue tm..e Wlita. Fa.Uiu Vitb 1llf;htly higher inCOMa c:ould qualify vi.th suller doftp&r-au. Therefore, we think the trade-off betvftea inco•• and useta cut the -ndmaAt before you would pel"llit ia in k.eepina with the goala of the mGrtaaae r•w.uue Nmd progrn. It ie clear that the aoal of the llouaiDg ~rporatiou 1a to ••tw the lowest income groups th.at we i>ouibl1 can.. 1'be Council can be aa•ured that we would a.ot &bua• the t..Mfiu t.be staff reco•andat1ou provide. Sincerely yours, PALO ALTO Jl)l'JSDIC COIPOIA.TICIJ ~.~~nt