Resolution 10468ORG A
RESOLUTION NO. 10468
A RESOLUTION OF THE CITY OF ALAMEDA
AUTHORIZING THE ISSUANCE OF $20,000,000
PRINCIPAL AMOUNT OF SINGLE FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS,
1984 SERIES A
SUCH BONDS TO BE ISSUED PURSUANT TO A
TRUST INDENTURE DATED AS OF THE DATE OF THE BONDS, AUTHORIZING
THE SALE OF SUCH BONDS, SUBJECT TO CERTAIN
TERMS AND CONDITIONS, AND AUTHORIZING THE
EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENTS,
DOCUMENTS AND ACTIONS
WHEREAS, Chapters 1 -5 of Part 5 of Division 31 of the Health and Safety
Code of the State of California (herein called the "Act ") authorizes cities
and counties to issue revenue bonds for the purpose of financing home
mortgages authorized by the Act, and the Act provides a complete, additional
and alternative method for doing the things authorized thereby;
WHEREAS, pursuant to the Act and Ordinance No. 2215 of the City, adopted
on October 25, 1984, the City is authorized to carry out the public purposes
described therein by issuing its revenue bonds to acquire home mortgages and
by pledging such home mortgages as security for payment of the principal of
and interest on such revenue bonds, and by entering into any agreements in
connection therewith;
WHEREAS, to alleviate the shortage of affordable residential housing
facilities, and to provide capital for investment in such facilities for low
and moderate income families and persons within the City, the City has
developed and determined to implement a home mortgage financing program (the
"Program ") with respect to (1) the issuance by the City of its Single Family
Residential Mortgage Revenue Bonds, 1984 Series A (the "Bonds "), and (ii) the
use of the Bond proceeds by the City to purchase without recourse from one or
more lending institutions (the "Lenders ") certain home mortgages (the "Home
Mortgages "), made to finance residential facilities intended for use as the
permanent place of residence by persons of low and moderate income (the
"Homes "), which Home Mortgages are to be originated and serviced by the
Lenders pursuant to one or more Home Mortgage Purchase Agreements and
one or more Servicing Agreements (together, the "Agreements ");
WHEREAS, the City and the developers of the Homes will enter into
agreements and the City and a lender will enter into an agreement
(collectively, the "Commitment Contracts "), for the purpose of setting forth,
among other things, the terms and conditions pursuant to which the developers
and the lender, respectively, will deliver Home Mortgages for purchase by a
trustee on behalf of the City and the City will reserve proceeds of the Bonds
to provide funds for such purpose;
WHEREAS, the City has now determined to issue the Bonds and to enter
into a Trust Indenture (the "Indenture ") to secure the Bonds by a pledge and
assignment of the Home Mortgages, the proceeds of the Bonds, certain insurance
proceeds, certain reserve funds, certain investment earnings on the proceeds
of the Bonds and the revenues received from the Home Mortgages and its rights
under the Commitment Contracts and the Agreements;
WHEREAS, Drexel Burnham Lambert Incorporated, as representative of the
underwriters of the Bonds (collectively, the "Purchasers ") has caused a draft
of a Preliminary Official Statement relating to the Bonds to be submitted to
the City for approval for distribution to prospective purchasers of the Bonds;
WHEREAS, the Purchasers have submitted an agreement for the purchase of
the Bonds (the "Bond Purchase Contract ") and it is desirable that the Bonds be
sold at this time only, however, on the terms and conditions hereinafter
provided; and
WHEREAS, forms of the Indenture, the Agreements, the Commitment
Contracts and the other necessary implementing documents have been presented
to and reviewed by the City, with the aid of its staff, and such documents may
now be conformed to the terms and requirements of the Bond Purchase Contract
and the final Official Statement for the Bonds and be approved for execution
in final form;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF ALAMEDA AS FOLLOWS:
1. The City of Alameda Single Family Residential Mortgage Revenue
Bonds, 1984 Series A, in an aggregate principal amount not to exceed
$20,000,000 are hereby authorized to be issued pursuant to the Act and the
Indenture, which Indenture shall be dated as of the date of the Bonds
(other than the Tax Exempt Interest Accumulation Bonds referred to in the
Indenture). The Indenture, substantially in the form as submitted to the
City at this meeting, is hereby approved. The City Manager or the Assistant
City Manager of the City and the City Clerk or the Assistant City Clerk of the
City are hereby authorized and directed, for and in the name and on behalf of
the City, to execute and deliver the Indenture in substantially said form,
with such additions thereto or changes therein as such officers may approve,
such approval to be conclusively evidenced by the execution and delivery
thereof. The date, maturity dates, interest rate or rates, interest payment
dates, denominations, form, registration privileges, manner of execution,
place of payment, terms of redempotion and other terms of the Bonds shall be
as provided in the Indenture as finally executed.
2. The Preliminary Official Statement, substantially in the form as
submitted to the City at this meeting, is hereby approved for distribution
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to broker - dealers, banking institutions and other persons who may be
interested in purchasing the Bonds. The City Manager or the Assistant City
Manager of the City are hereby authorized and directed, for and in the name
and on behalf of the City, to execute a final Official Statement relating to
the Bonds, setting forth such amendments and supplements to the Preliminary
Official Statement as shall be necessary or convenient to accurately describe
the Bonds in accordance with this Resolution, the Indenture, the Bond Purchase
Contract and the other Program agreements and documents.
3. The Bond Purchase Contract for purchase of the Bonds, substantially
in the form as submitted to the City at this meeting, is hereby approved.
The City Manager or the Assistant City Manager of the City is hereby
authorized and directed, for and in the name and on behalf of the City, to
execute the Bond Purchase Contract provided that all of the following
conditions are met:
(a) the purchase price of the Bonds shall be not less than
ninety -six and one -half percent (96 -1/2 %) of the principal amount of the
Bonds;
(b) the Single Family Residential Mortgage Revenue Bond interest
rate for any maturity shall not exceed thirteen and one -half percent
(13- 1/2%); and
(c) the Home Mortgage interest rate shall not exceed twelve
percent (12 %);
provided that the Purchasers may make provision for adjustment of maturing
amounts of principal and the maturity dates thereof in a manner which does not
increase the effective interest rate of all Bonds above the specified annual
interest rate limitation or the specified annual Home Mortgage interest rate
limitation above set forth. The City Manager or the Assistant City Manager of
the City shall insert and initial the final interest rates on and the final
purchase price of the Bonds in the appropriate spaces provided in the Bond
Purchase Contract.
4. The Commitment Contracts with the developers and the lender
proposing to participate in the City's Program and the Home Mortgage Purchase
Agreement and the Servicing Agreement to be entered into by and among the
City, the Trustee for the Bonds and the lender proposing to participate in the
City's Program, substantially in the forms of such documents as submitted to
the City at this meeting, are hereby approved. The City Manager or the
Assistant City Manager of the City is hereby authorized and directed, for
and in the name and on behalf of the City to execute the foregoing documents
with such additions thereto or changes therein as such officer may approve,
such approval to be conclusively evidenced by the execution and delivery
thereof.
5. Security Pacific National Bank is hereby approved as the Trustee
for the Bonds pursuant to the Indenture and the other Program documents.
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6. First California Mortgage Co., and such other lending institutions
as may be approved by the City Manager or the Assistant City Manager of the
City, is (are) hereby approved as the Lender(s) and Servicer(s) for the
Program, pursuant to the Home Mortgage Purchase Agreement(s), the Servicing
Agreement(s) and /or the Commitment Contract(s).
7. Ponderosa Homes and Harbor Bay Isle Associates, and such other
developers as may be approved by the City Manager or the Assistant City
Manager of the City, are hereby approved as the Developers for the Program,
pursuant to the Commitment Contracts.
8. Investors Mortgage Insurance Company is hereby approved as the
private mortgage insurer for the Home Mortgages purchased with the proceeds of
the Bonds.
9. All actions heretofore taken by the officers and agents of the
City with respect to the establishment of the Program and the sale and
issuance of the Bonds are hereby approved, confirmed and ratified, and, upon
execution of the Bond Purchase Contract, the City Manager, the Assistant City
Manager, the City Clerk, the Assistant City Clerk, the City Attorney, the City
Treasurer, the Mayor of the City and other appropriate City officers are
hereby authorized and directed, for and in the name and on behalf of the City,
to do any and all things and take any and all actions, including, but not
limited to, conforming of the Rules and Regulations to the other Program
documents, and to execute and deliver any and all certificates, requisitions
or agreements, including, but not limited to, an agreement for investment of
the proceeds of the Bonds and of the Home Mortgages, a compliance agreement
with a private mortgage insurer for the Program, those documents described
in the Bond Purchase Contract and Section 211 of the Indenture, and such
other certificates, requisitions or agreements which they, or any of them,
may deem necessary or advisable in order to consummate the lawful issuance and
delivery of the Bonds in accordance with the Bond Purchase Contract, the
Indenture, the Official Statement, this Resolution and all related documents
and in order to carry out the Program.
10. This resolution shall take effect from and after its adoption.
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I, the undersigned, hereby certify that the foregoing Resolution
was duly and regularly adopted and passed by the Council of the
City of Alameda in adjourned regular meeting assembled on the 25th
of October,1984, by the following vote to wit:
AYES: Councilmembers Gorman, Lucas, Monsef and President Diament - 4.
NOES: None.
ABSENT: Councilmember Hanna -
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of said City this 25th day of October, 1984.
Deputy Ci.Ay Clerk of the City of Alameda