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HomeMy WebLinkAboutC-2386 - Cooperative Agreement, Home Mortgage Finance Programs• TO: City Council City Council Meevq Agenda Item No July 23,'1984 F -2 (b) BY THE CITY COUNCIL CITY OF NEWPORT BEACH CITY OF NEWPORT BEACH FROM: Planning Department SUBJECT: Resolution of Intent to for an Affordable Housin Suggested Action JUL 231984 Condemn a 5.67 ±. acre If desired, adopt Resolution No.B L M declaring the five acre (t) portion of the North Ford Development so for an affordable housing development. Environmental Significance in North Ford necessity to condemn a as to provide a site • All significant environmental concerns for the subject development have been addressed in a previously certified environmental document, and the City intends to use said document in conjunction with the adoption of the subject Resolution of intent to Condemn. Further, there are no additional reasonable alternatives or mitigation measures that should be considered in conjunction with said project. Background In September of 1982, the City re- entered the Community Development Block Grant (CDBG) Program. The 1982 application indicated that the City intended to use the funds for a low interest housing rehabilitation program. The application was approved by HUD and $496,000 was allocated to the City for this purpose. A three year Housing Assistance Plan (HAP) was submitted to HUD, and the City requested and received 1983 "jobs bill" funds ($199,000) and CDBG Entitlement Funds ($518,000) for purposes of a land acquisition program for providing lower income housing. Subsequently the City requested an amendment to the 1982 rehabilitation loan program grant so as to use the funds for land • acquisition. HUD approved the amendment and the City now has $1,213,000 available for the purpose of purchasing land to provide a site for affordable housing. Resolutions adopted by the City Council in conjunction with GPA 82 -1 and GPA 83 -1(e) , identify North Ford and Newport Village as potential sites for the use of CDBG funds. The General Plan amendments for both North Ford and Newport Village were conditioned upon the execution of a development agreement. The development agreement was to address, among other things, the provision of affordable housing. TO: City Counci0 2 Beginning in March, 1984, staff, together with representatives at the Planning Commission and City Council, discussed, with the property owner, the essential terms and conditions of the development agreement that would implement the • land uses and policies approved for the North Ford parcel. The proposed development agreement will be submitted to the Planning Commission and City Council in late August or early September. The proposed development agreement contemplates the use of CDBG funds to acquire land within the North Ford parcel in accordance with the following program: 1. City would purchase, under threat of condemnation, a parcel. of land that would otherwise have been devoted to the construction of moderate income units; 2. The City would reconvey the parcel to the Irvine Company, for a nominal consideration, with a commitment, expressed in the form of a deed restriction, that at least 50 dwelling units affordable to persons of low income would represent at least 51% of the total dwelling units constructed on site, and the units would remain affordable to low income persons or families for a period of ten years. Income limits and maximum rents for the low income units would be based on then current HUD standards. If these units were in • place at this time, the following rents and income levels would apply: Income Maximum Rent Maximum 1 Bedroom $21,600 $540 /month 2 Bedroom $27,000 $675 /month The reduction in rents contemplated by the land acquisition program would result in a loss of income to the property owner of approximately 1.2 million dollars. This figure does not take into account additional costs that may be incurred in the administration of the affordable housing project, nor does it include any expenses that may be incurred in complying with the Federal laws or regulations applicable to the project because of the use of CDBG funds. To protect future grants, the City should begin the draw down of CDBG funds on or about September 1, 1984. The adoption of a resolution of condemnation is a prerequisite to the draw down of funds and, in order to make the deadline, should be adopted on July 23, 1964. The resolution does not obligate the City to purchase the parcel, but simply authorizes the initiation of condemnation proceedings in the event that the property owner does not agree to sell the parcel. 1 i TO: City Councie 3 • Condemnation Resolution Attached for City Council consideration is the draft resolution stating the • City's intent to condemn a parcel of land on the North Ford site for purposes of acquiring land for an affordable housing site. The resolution complies with the current HUD regulations pertaining to land acquisition. It is, therefore, recommended that the City Council adopt the attached resolution. Respectfully submitted, PLANNING DEPARTMENT JAMES A. HEWICKER, Director By CHRIS GUSTIN Senior Planner CG:nma NF2 • C7 RESOLUTION NO. 8 4 - 8 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING THE NECESSITY OF CONDEMNING THE FEE INTEREST IN A PARCEL OF PROPERTY ON THE NORTH FORD SITE FOR THE DEVELOPMENT OF HOUSING AFFORDABLE TO PERSONS OF LOW AND MODERATE INCOME WHEREAS, the City of Newport Beach has an adopted housing element which contains policies for providing housing affordable to all economic segments; and WHEREAS, the City of Newport Beach has identified certain sites within the City as suitable for the construction of affordable housing; and WHEREAS, the Land Use Element and Housing Element of the City's General Plan have identified North Ford as an appropriate site for the construction of housing affordable to persons of low and moderate income; and WHEREAS, the City has identified a parcel of property within North Ford that it believes is suitable for acquisition as a site for low and moderate income housing. That parcel is legally described as follows: A portion of Block 57 of Irvine's subdivision as shown on the map filed in Book 1 Page 88 of Miscellaneous Maps, Records of Orange County, California, described as follows: Beginning at the northeasterly terminus of that course having a bearing of S 24 °20109" W and a distance of 83.56 feet as described in the Deed to the State of California recorded in Book 12289, Page 1726 of Official Records (the bearing of said course for the purpose of this description shall be S 24 °19159" W, 83.56; thence continuing along the westerly line of the land described in said Deed S 1 043112" W, 447.12'; thence leaving said westerly line N 88 016148" W, 105.00 feet to the beginning of non - tangent curve concave northerly; thence westerly along said curve having a radius of 720.00 feet, a radial line to said beginning bears S 4 009134" E, through a central angle of 9 °23133 ", an arc distance of 118.03 feet; thence N 1 043112" E, 358.84 feet; thence N 88 °16148" W, 35.00 feet; thence N 1 043112" E, 310.00 feet; thence N 88 016148" W, 25.00 feet; thence N 1 143'12" E, 260.00 feet; to the beginning of a non - tangent curve concave southerly; thence easterly along said curve having a radius of 670.00 feet, a radial line to said beginning bears N 7 °13'05" W, through a central angle of 8 001905 ", an arc distance of 93.76 feet; thence S 89 012'00" E, 73.87 feet to the beginning of a tangent curve concave southwesterly; thence easterly and southeasterly along said curve having a radius of 90.00 feet, through a central angle of 44 024'55 ", an arc distance of 69.77 feet to a point of reverse curve concave northwesterly; thence southeasterly, easterly, northeasterly and northerly along said curve having a radius of 50.00 feet, a radial line to said point bears S 45 012155" W, through a central angle of 133 029'43 ", an arc distance of 116.50 feet to a point on the westerly line of the land described in said deed; thence along said westerly line, S 1 °43'12" W, 422.96 feet to the point of beginning. Containing 5.67 acres, more or less; and WHEREAS, the City is eligible to receive a grant from the United States Department of Housing and Urban Development to purchase land for the purpose of acquiring a site for development of low and moderate income housing; and WHEREAS, the City of Newport Beach intends to use some, or all, of the grant from the Department of Housing and Urban Development to purchase the property described above; and WHEREAS, the City of Newport Beach intends to proceed with the acquisition of the property at the earliest possible ill time to ensure expeditious use of the Federal funds; and WHEREAS, through condemnation proceedings, the City can ensure the availability of land on the North Ford site for the affordable housing project; and WHEREAS, the acquisition of the property is necessary for the development of the proposed low and moderate income housing; and WHEREAS, the affordable housing development is planned and located in a manner that is most compatible with the greatest public good and the least private injury; and WHEREAS, the proposed acquisition is necessary and in the public interest; and WHEREAS, the City has complied with the provisions of Section 7267.2 of the Government Code; and 2 WHEREAS, the City will, during the process of acquiring the property, comply with all applicable Federal statutes, rules and regulations; and WHEREAS, those persons whose property is to be acquired by the City of Newport Beach have been given written notice of the intention of the Council to adopt this resolution, a reasonable opportunity to appear and be heard on the matters referred to in the resolution, and have waived the right to the notice and hearing provided by Section 1245.235 of the Code of Civil Procedure; and WHEREAS, an Environmental Impact Report (EIR) has been prepared and certified in connection with GPA 82 -1, which fully and completely discusses the environmental effects of the proposed project; and WHEREAS, facts and circumstances present at the time of the preparation and certification of the EIR for GPA 82 -1 are substantially similar to the facts and circumstances present today, and_ no additional environmental documentation is required with respect to the proposed project which is, in effect, a F portion of the larger project analyzed in the EIR. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach, as follows: SECTION 1. The public interest and necessity require the acquisition of property in that parcel commonly referred to as North Ford for the purpose of providing affordable housing to persons of low and moderate income; and SECTION 2. The acquisition of the property is authorized by Section 200 of the City Charter of the City of Newport Beach and Section 37350.5 of the Government Code of the State of California; and 3 F 1 SECTION 3. as follows: 0 The property to be acquired is described A portion of block 57 of Irvine's subdivision as shown on the map filed in Book 1 Page 88 of Miscellaneous Maps, Records of Orange County, California, described as follows: Beginning at the northeasterly terminus of that course having a bearing of S 24 °20'09" W and a distance of 83.56 feet as described in the Deed to the State of California recorded in Book 12289, Page 1726 of Official Records (the bearing of said course for the purpose of this description shall be S 24 019159" W, 83.56; thence continuing along the westerly line of the land described in said Deed S 1 143'12" W, 447.12'; thence leaving said westerly line N 88 °16148" W, 105.00 feet to the beginning of non - tangent curve concave northerly; thence westerly along said curve having a radius of 720.00 feet, a radial line to said beginning bears 5 4 009134" E, through a central angle of 9 023133 ", an arc distance of 118.03 feet; thence N 1 043112" E, 358.84 feet; thence N 88 016'48" W, 35.00 feet; thence N 1 °43112" E, 310.00 feet; thence N 88 116148" W, 25.00 feet; thence N 1 043'12" E, 260.00 feet; to the beginning of a non - tangent curve concave southerly; thence easterly along said curve having a radius of 670.00 feet, a radial line to said beginning bears N 7 °13'05" W, through a central angle of 8 °01'05 ", an arc distance of 93.76 feet; thence S 89 012100" E, 73.87 feet to the beginning of a tangent curve concave southwesterly; thence easterly and southeasterly along said curve having a radius of 90.00 feet, through a central angle of 44 024'55 ", an arc distance of 69.77 feet to a point of reverse curve concave northwesterly; thence southeasterly, easterly, northeasterly and northerly along said curve having a radius of 50.00 feet, a radial line to said point bears S 45 °12'55" W, through a central angle of 133 °29143 ", an arc distance of 116.50 feet to a point on the westerly line of the land described in said deed; thence along said westerly line, S 1 043112" W, 422.96 feet to the point of beginning. Containing 5.67 acres, more or less; and SECTION 4. The proposed project is planned and located in the manner that will be most compatible with the greatest public good and least private injury, in that the property to be acquired is situated within a parcel currently designated for affordable housing by the Land Use and Housing Elements of the General Plan of the City of Newport Beach; the land use designation and the proposed project each contemplate a significant number of affordable units; the proposed project is 4 consistent with the General Plan of the City of Newport Beach; and the site to be acquired is located within a parcel for which development plans are currently being processed and the affordable units can be constructed in conjunction with the other units on site, thereby ensuring prompt construction of the affordable units; and SECTION 5. The City Attorney of the City of Newport Beach is hereby authorized and directed to commence an action in the Superior Court of the State of California, in and for the County of Orange, in the name of and on behalf of the City of Newport Beach against all owners and claimants of the above described property for the purpose of condemning and acquiring said property for an affordable housing development by the City of Newport Beach. The City Attorney is further authorized and directed to take all steps necessary to complete the acquisition of said property. Further, the City Manager is hereby authorized to accept deeds or grants conveying fee simple interest in the property to be acquired, and is further authorized to consent to the recordation, by the County Recorder, of any such deed or grant; and SECTION 6. A map showing the subject property is attached hereto, marked Exhibit "A," and for reference purposes incorporated herein. ADOPTED this day of JUL 23 , 1984. ATTEST: ty Cler RSB /Condemn 5 Mayor 1o5' _ j � ASS \ \' E� Y `t`�'< 5 'if f -AD W �\ js 1� IN e Z � Z ji N11 I '4k It f E r r 70 BY THE CITY COUNCIL CITY OF NEWPORT BEACH JUN 11 1984 MEMORANDUM OFFICE OF THE CITY ATTORNEY June 6, 1984 Agenda Item No. F -2 (h) To: Hon. Mayor & Members of the City Council From: Robert Burnham - City Attorney Re: North Ford The Irvine Company has asked the City Council to adopt a resolution authorizing financing, pursuant to the County Mortgage Revenue Bond Program, for the residential development on North Ford. (See attached letter from Richard Sim dated June 5, 1984). In 1983, the City Council approved a cooperative agreement with the County of Orange that allows developers to apply for such financing. That same year, the City Council adopted a resolution similar to that now requested for the Haywood project. The request of the Irvine Company is consistent with the terms of the cooperative agreement and the policies contained in City's Housing Element. We have prepared a resolution specifically approving North Ford for revenue bond financing and recommend its approval. Robert H. Burnham City Attorney RHB /pr MMP /TIC • *!VU THE IRVINE COMPANY 550 Newport Center Drive, P.O. Box I Newport Beach, California 926600015 (714) 720 -2000 June 5, 1984 Honorable City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, California SUBJECT: Mortgage Revenue Bond Financing for North Ford Residential Development Mayor Hart and Council Members: On April 11, 1983, your Council authorized a cooperative agreement with the County of Orange regarding home mortgage financing programs providing for the issuance of revenue bonds for development of multi- family and single family projects. Persuant to that cooperative agreement we are hereby requesting City Council approval of the required resolution authorizing financing for the North Ford residential development under the Mortgage Revenue Bond Program. The North Ford project, located between Jamboree and MacArthur north of Bison, will consist of 880 dwelling units as approved under General Plan Amendment 82 -1. Mortgage Revenue Bond financing is requested for up to 580 of these dwellings which are proposed to be multi- family rental housing. Thank you for your cooperation. pc-ePresident Sim j evelopment DRAFT RESOLUTION NO. 8 4 ' 5 7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING FINANCING FOR THE NORTH FORD RESIDENTIAL PROJECT UNDER THE COUNTY OF ORANGE MORTGAGE REVENUE BOND PROGRAM. WHEREAS, on September 28, 1981, the City Council of the City of Newport Beach adopted Resolution No. 11051, amending the Housing Element of the General Plan consistent with the provisions of Government Code Sections 65580, et sec, (Roos Bill); and WHEREAS, the City of Newport Beach is making a good faith effort to implement the policies and programs contained in the General Plan Housing Element; and WHEREAS, objective 7 of the Newport Beach General Plan Housing Element is to "promote and assist in the development of housing for low and moderate income households "; and WHEREAS, the implementation of Housing Element objective 7 calls for consideration of Tax Exempt Mortgage Revenue Bond Programs to facilitate the development, construction and financing of housing for low and moderate income households; and WHEREAS, the Board of Supervisors of the County of Orange ( "County ") has resolved to engage in home mortgage financing programs ( "Programs ") pursuant to Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California ( "Act ") for persons and families within the income limits established by the Act and has determined to issue revenue bonds pursuant to the Act to provide funds for the Program; and WHEREAS, the Programs provide for the issuance of bonds for the construction or development of multi- family and single - family projects; and WHEREAS, implementation of the Programs within the geographical boundaries of incorporated cities requires that cities execute Cooperative Agreements with the County; and WHEREAS, the City Council on April 11, 1983 authorized execution of such a Cooperative Agreement with the County; and WHEREAS, The Irvine Company specifically requests approval of the North Ford Residential Project for financing through the issuance of Mortgage Revenue Bonds; and WHEREAS, the City Council of the City of Newport Beach finds and determines that it is desirable and consistent with the adopted Housing Element and the best general interests of the City to consent to the imple- mentation of the Programs by the County within the georgaphical boundaries of the City pursuant to the Act; - 1 - a � NOW, THEREFORE, The City Council of the City of Newport Beach does hereby resolve as follows: SECTION 1. The project known as the North Ford Residential Project, as referenced in the attached letter from The Irvine Company, is specifically approved for financing pursuant to the multi- family Cooperative Agreement. SECTION 2. This Resolution shall take effect immediately upon adoption. ADOPTED this day of JUN 1 1 1984 Mayor ATTEST: City Clerk STATE OF CALIFORNIA COUNTY OF ORANGE )SS CITY OF NEWPORT BEACH ) I, WANDA ANDERSEN, City Clerk of the City of Newport Beach HEREBY DO CERTIFY that the foregoing Resolution, No. was duly adopted at a regular meeting of the City Council of the City of Newport Beach, held on the day of 1984, by the following roll call vote: AYES COUNCILMEMEBERS: NOES COUNCILMEMBERS: ABSTAIN COUNCILMEMBERS: ABSENT COUNCILMEMBERS: - 2 - Wanda Andersen City Clerk City of Newport Beach • UNTY OF RAN G E COUNTY ADMINISTRATIVE OFFICE October 18, 1983 Gerry J. Bolint Assistant to the City Manager City of Newport Beach P.O. Box 1768 Newport Beach, CA 92663 -3884 • RE: MORTGAGE REVENUE BOND COOPERATIVE AGREEMENTS FOR THE CITY OF NEWPORT BEACH Dear Mr. Bolint: R. E. THOMAS COUNTY ADMINISTRATIVE OFFICER HALL OF ADMINISTRATION 10 CIVIC CENTER PLAZA SANTA ANA, CALIFORNIA 92701 TELEPHONE: 034 -2345 AREA CODE 714 Enclosed are two fully executed copies of the MRB Cooperative Agree- ments for single - family and multi - family projects. The County looks forward to working with you in providing financing for affordable housing in Newport Beach. If I may be of further assistance, please do not hesitate to call on me at 834 -4775. VLY:pf enclosures Cx a Sincerely, v J Vicki L. Yon CAO- Bond /Capital Funding Program N - � COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF NEWPORT BEACH THIS COOPERATIVE AGREEMENT (the "Cooperative Agree- ment") is hereby made and entered into as of October 17 , 1983 by and between the COUNTY OF ORANGE, a legal subdivision and body corporate and politic of the State of California (the "County "), and the CITY OF NEWPORT BEACH a municipal corporation of the State of California (the "City "). W I T N E S S E T H: WHEREAS, the County has determined to engage in a home mortgage finance program (the "Program ") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act ") to make or acquire, directly or in- directly, long -term loans to finance the construction and acquisition of homes in the County, all as provided for in said Act; and WHEREAS, the County has determined to borrow money to finance the Program by the issuance of revenue bonds (the "Bonds ") as authorized by the Act and by the provisions of the Costa -Marks Housing Bond Allocation Act of 1981 (the "Costa - Marks Act "); and WHEREAS, the City has adopted the Program and deter- ! mined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual coven- ants hereinafter provided, the parties hereto agree as follows: SECTION 1. The words and phrases of this Cooperative Agreement shall, for all purposes hereof unless otherwise de- fined herein, have the meanings assigned to such words and• phrases in the Act and in the Costa -Marks Act. SECTION 2. The County agrees to use its best efforts to undertake the Program and to issue the Bonds therefor pur- suant to the Act as soon as the County determines the same to be necessary and advisable. SECTION 3. The City represents and warrants to the County that: (i) the City has heretofore adopted a general plan for the City in conformance with the provisions of the Planning and Zoning Law of the State of California (Government Code Sections 65000 et seq.), (ii) said general plan includes a land use element and a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 4. The City agrees that the County may make or acquire home mortgages under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City and that any and all of its powers for the purpose of financing home mortgages pursuant to the Act with respect to such property -2- '1 3777P/2197/005 shall be exercised by the County; and the City hereby assigns to the County the City's entitlement allocation pursuant to the Costa -Marks Act for calendar year 1983; provided, however, such assignment shall be effective solely for use by the County to provide financing for properties located within the City (in- cluding a proportionate share of the costs of issuance, under- writers' discount, capitalized interest, reserve funds, and similar expenses associated with the Bonds), and the amount of the City's entitlement allocation so assigned shall be deter- mined by the County and notice thereof shall be given to the City within thirty (30) days after the issuance of the Bonds, and notwithstanding the foregoing, such assignment shall not be deemed ineffective if, after the issuance of the Bonds and for reasons beyond the control of the County, the County is unable to use all or any portion of the City's entitlement allocation assigned hereby to provide financing for properties located within the City and the same is used instead to redeem Bonds or to provide financing for properties located elsewhere in the County. However, no financing pursuant to the Program shall be made available for a home which is constructed within the City subsequent to the date hereof without the City Council's prior approval of the use of such financing for the development with- in which such home is to be constructed. SECTION 5. The City agrees to refrain from participa- tion in a home mortgage finance program from which bond pro- ceeds would be made available to provide financing for homes in -3- 13 3777P/2197/005 r projects with respect to which the City Council has approved the use of financing from the Program pursuant to Section 4 hereof. In addition, in recognition of the transfer of juris- t diction effected by the provisions of Section 4 hereof, the City agrees not to issue any qualified mortgage bonds during calendar year 1983 the principal amount of which, when added to the principal amount of the Bonds deemed hereunder to have been issued for the benefit of property within the City, will exceed any limit established by the Costa -Marks Act. SECTION 6. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Cooperative Agreement; and the City further agrees to refrain from taking any action which would to its knowledge tend to adversely affect the rating on the Bonds. SECTION 7. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agree- ments with other municipal corporations within the County, if deemed necessary and advisable to do so by the County. SECTION 8. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the Bonds. SECTION 9. This Cooperative Agreement shall expire and be of no further force and effect if no portion of the -4- '� 3777P/2197/005 V Bonds are deemed to have been issued for the benefit of prop- erty within the City. IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day first above written. (RRA 7.1 APPROVED AS TO FORM: L- Coun Counsel C N Y OF ORANGE �Y it Chairman of the Board of Supervisors Jul'!E AtEXAiV!Afl Clerk, of the Brard.of Svoervisors County of Orange,.Celibrnia C I i� Off. _ I WORT BEACH (SEAL) By &:��/ A 1 Mayor ATTEST: City Clerk APPROVED AS TO FORM: i y Attor ey -5- 15 3777P/2197/005 N JJM:pw 12/2/82 JJM:ar 12/3/82 COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF NEWPORT BEACH THIS COOPERATIVE AGREEMENT (the "Cooperative Agree- ment") is hereby made and entered into as of October 17 1983 by and between the COUNTY OF ORANGE, a legal subdivision and body corporate and politic of the State of California (the "County "), and the CITY OF NEWPORT BEACH a municipal corporation of the State of California (the "City "). W I T N E S S E T H: WHEREAS, Chapter 7 (commencing with section 52075) of i Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act ") authorizes the County to incur indebtedness for the purpose of financing the construction or development of multifamily rental housing in the County; and WHEREAS, the County has determined to engage in a multifamily rental housing program pursuant to the Act (the "Program "); and WHEREAS, the County has determined to borrow money to finance the Program by the issuance of revenue bonds (the "Bonds ") as authorized by the Act; and WHEREAS, the City has approved the Program and determined to cooperate with the County pursuant to the Act in N L N 1 the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1. The words and phrases of this Coopera- tive Agreement shall, for all purposes hereof unless otherwise defined herein, have the meanings assigned to such words and phrases in the Act. SECTION 2. The County agrees to use its best efforts to undertake the Program and to issue the Bonds therefor pursuant to the Act as soon as the County determines the same to be necessary and advisable. SECTION 3. The City represents and warrants to the County that: (i) the City has heretofore adopted a general plan for the City in conformance with the provisions of the Planning and Zoning Law of the State of California (Government Code Sections 65000 et seq.), (ii) said general plan includes a land use element and a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 4. The City agrees that the County may make or acquire loans for the financing of multifamily rental housing projects under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City and that, subject to the 3612P/2197/02 -2- I provisions of Section 5 hereof, any and all of its powers for the purpose of financing such projects pursuant to the Act with respect to such property shall be exercised by the County. However, no financing pursuant to the Program shall be made available for a project which is constructed within the City subsequent to the date hereof without the City Council's prior approval of the use of such financing therefor. SECTION S. The City reserves to itself the right to undertake its own program of financing multifamily rental housing projects under the Act provided that under no circumstances will the City conduct or participate in a multifamily rental housing finance program from which bond proceeds would be made available to provide financing for any project with respect to which the City Council has approved the use of financing from the Program pursuant to Section 4 hereof. SECTION 6. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Cooperative Agreement; and the City further agrees to refrain from taking any action which would to its knowledge tend to adversely affect the rating on the Bonds. SECTION 7. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements with other municipal corporations within the County, if deemed necessary and advisable to do so by the County. I 3612P/2197/02 -3- SECTION 8. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the Bonds. IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day first above written. O TY OF ORANGE (SEAL) ECIi 6,1 Chairman of the ATTEST: 1,1,m::.Ro rd of Supervisors $t rr 4tin OF THIS i,G' Il 70 C rk of e Board THEE Supe isors «,y Z r. APPROVED AS TO FORM: Clerk of th „+ e visors / D county of Orange C itornia Co y Counsel e.> CITY`CrF °... NEWPORT BEACH (SEAL) By ATTEST: Mayor City Clerk A PROVED AS TO FORM: i t orney 3612P/2197/02 -4- t3 THE IRVINE COMR4NY 550 Newport Center Drive, P.O. Box I Newport Beach. California 92660 -9959 (714) 720 -2000 BY THE CI'i1' Counca CITY OF NEWPORT BEACH May 5, 1983 Honorable City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, California MAY 23 1983 Dear Mayor Hart and Council Members: `'. � s .�i a �.., ..i4 ✓sY e-- MAl' a119IIs� iiF':F' a'E!t C- C3B� 1 Thank you for your action of April 11, 1983 authorizing City participation in the County's Mortgage Revenue Bond Program and approving the use of such financing specifically for the Baywood Apartment project. This will help stimulate the construction of needed rental housing in this area. With regard to the Baywood project, extraordinarily high interest rates have prevented us from proceeding with construction in recent years. The financing which we hope will become available through the bond program in the near future will help make the Baywood project feasible under todays economic conditions. We look forward to further cooperation in meeting the housing needs of the community. 7cerely Ri hard G. im V'ce President mmunity Development RGS:gh Date PMES SENT TO: ,n Mayor CZouncllmen 40 Manager • Attorney • Bldg. Dir. • GenSery Dir. E) PBBRDir. C] Planning Dir. ❑ Police Chief ❑ P.W. Dir_., r5 !I I k-4, r • CITY OF NEWPORT BEACH P.O. BOX 1768, NEWPORT BEACH, CA 92663 -3884 OFFICE OF THE CITY MANAGER (714) 640 -2153 April 28, 1983 Mr, John H. Gibson Bond /Capital Funding Program Manager COUNTY OF ORANGE #10 Civic Center Plaza Santa Ana, CA 92701 bear Mr. Gibson: SUBJECT: MORTGAGE REVENUE BOND COOPERATIVE AGREEMENTS. Enclosed please find fully executed copies of the MRB Cooperative Agreements, relative to single family and multi - family projects. Additionally, please find the City Council Resolution authorizing execution of the agreements. Note in the Resolution the specific refer- ence to The Irvine Company's Baywood project. It would be appreciated if you would schedule these items for Board consideration in a timely manner. Thank you for your assistance. AssiS UantT the City Manager GJB;mm enclos xc: Dave Dmohowski, The Irvine Company Craig Bluell, Planning Department 3300 Newport Boulevard, Newport Beach CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER COUNCIL AGENDA April 11, 1983 N0. F -2(d) BY THE CITY COUNCIL CITY OF NEWPORT BEACH TO: MAYOR AND CITY COUNCIL APR 111983 FROM: City Manager C) SUBJECT: CITY PARTICIPATION IN THE COUNTY MORTGAGE` 'REVENUE BOND PROGRAM FOR SINGLE - FAMILY ANE MULTI- FAMILY PROJECTS, Background During the Study Session on March 14, 1983, the City Council reviewed the attached report regarding the County Mortgage Revenue Bond program (attachment 1). The report discussed the general program concept, legal framework and procedures associated with mortgage revenue bonding for single - family projects. A history of the County program was also presented. Finally, it was noted that participation by the City in the current single - family bond issue (1983 Issue II) was question- able, given the fact that the bonds have already been issixed. It was noted, however, that there were possibilities for future participation under the program in the event of devel- oper default, approval of a third issue for 1983 or authori- zation for future issues beyond 1983. Letter from The Irvine Company Attachment 2 is a letter from The Irvine Company, which was received by this office subsequent to the Council's March 14th review of the above referenced staff report. The letter requests that the City enter into an agreement with the County authorizing developer participation in multi - family bond issues. Additionally, it is requested that the City adopt a resolution specifically authorizing The Irvine Company participation in the Mortgage Revenue Bond program, relative to the Baywood Apartment project, which consists of 68 dwelling units. It should be noted that the letter from The Irvine Company represents the first specific indication to the City of devel- oper interest in the mortgage revenue bond program. This is true despite the fact that the County has notified Newport Beach -based developers of the existence of the program. r i TO: MAYOR AND CITY COUNCIL - Page Two Multi- Family Revenue Bonds Following receipt of the letter from The Irvine Company, staff contacted the County to determine the appropriate procedural steps which should be taken with regard to multi- family rental projects. Staff was informed that there are two separate types of cooperative agreements; one for single - family and one for multi - family construction. One of the exhibits attached to the March 14th staff report (Exhibit 2) pertains to City participation in the bond program relative to single - family projects. Attachment 3 to this staff report is a copy of the cooperative agreement necessary for multi - family rental projects. There are several important points that should be made con- cerning mortgage revenue bond financing for multi - family rental housing. First, while Federal authorization for single - family issues sunsets as of December 31, 1983, there is no sunset provision relative to multi - family issues. Secondly, all multi - family projects financed with mortgage revenue bonds must reserve 208 of all units for occupancy by house- holds whose incomes are below 80% of the median income for the area (For Orange County this computes to an income figure of approximately $21,750.). Finally, with respect to pro- cedures, multi - family projects are developed through "loans to lenders ". The local jurisdiction (Orange County) issues bonds and uses the proceeds to make loans to lending insti- tutions which in turn make construction and /or permanent loans to developers of multi - family projects. In the case of single - family issues on the other hand, the loans are made directly available to first time homebuyers. Mortgage revenue financing for multi - family rental housing projects is relatively new in California. This year is the first year for County involvement in such a financing program. To date, there has been one such issue. Three more are anti- cipated during the year. For this reason, while the City's chances for participating in single- family issues is question- able, there should be no problem with respect to timeframe in relation to participation in multi - family issues. Discussion The City's adopted Housing Element contains as one of its objectives the evaluation of mortgage revenue bond programs as a means to facilitate the construction and financing of housing for low and moderate income households. This evaluation has been accomplished through this staff report and the report which was reviewed by the Council on March 14th. The specific indication of developer interest, as provided by The Irvine Company, makes participation during 1983, at least in the multi- family bond program, a realistic possibility. a TO: MAYOR AND CITY COUNCIL - Page Three Execution of the cooperative agreements merely authorizes the County to administer the program within Newport Beach. Developers cannot participate without such authorization. If the City authorizes execution of both the single - family and multi - family agreements, this will permit timely parti- cipation of The Irvine Company in the program, with respect to its multi - family Baywood project, while at the same time allowing for the possibility of developer participation in the current or subsequent single - family issues in the event the opportunity presents itself. Suggested Course of Action For the reasons outlined in the preceding section, staff would suggest that the Council take the following course of action: Adopt Resolution (s) No. authorizing the Mayor and City Clerk to execute separate cooperative agree- ments with the County relative to participation in both the single - family and multi- family mortgage revenue bond programs and, specifically, designating the Baywood Apartment project for program participation under the multi - family program. Following approval by the Council, the Cooperative Agreements would be forwarded on to the County Board of Supervisors for approval. Q�': � -, '-� C 0 r, - " ROBERT L. WYNN City Manager RLW;GJB;mm attachments y � CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER March 14, 1983 TO: MAYOR AND CITY COUNCIL FROM: City Manager * ATTACHMENT 1 STUDY SESSION ITEM 140. 9 SUBJECT: COUNTY MORTGAGE REVENUE BOND PROGRAM Purpose Staff has been requested to provide the City Council with an informational and status report on the Orange County Mortgage Revenue Bond Program. Background - General Program Concept, Legal Framework and Procedures Prior to detailing the County program, it might be helpful to describe the basic operation of mortgage revenue bonding, the legal framework within which such bonding occurs and the general procedures involved. The concept of mortgage revenue bonding is a relatively simple one; local jurisdictions issue revenue bonds which are sold to investors at lower rates because the bonds are tax exempt. The proceeds of the bond sale are then utilized to place long -term, fixed rate mortgages at rates which are slightly higher than the interest on the bonds. The Mortgage Subsidy Bond Act of 1980 established the current nationwide legal framework for the subject bond issues, it reflects the U.S. Treasury Department's desire to limit the use of tax exempt mortgage revenue bonds for single - family housing. Major elements of the Act include: 1. A limit on the number of mortgage revenue bonds which can be issued in any one year. 2. Restrictions on the relationship between bond yields and mortgage rates. 3. Requirements that all revenue bond mortgages be limited to units below set price limits and to first -time homebuyers, or units within specifically defined target areas. S • L TO: MAYOR AND CITY COUNCIL - Page Two 4. A sunset clause that eliminates mortgage revenue bond issues for single - family housing after December 31, 1983. In California, the Costa -Marks Housing Bond Allocation Act of 1981 established a system for the allocation of authority to issue tax exempt mortgage revenue bonds. The Act established a Mortgage Bond Allocation Committee comprised of State officials and other appointed members which is charged with the responsi- bility of overseeing the allocation of the State bonding amount. Under the Costa -Marks Act, the program at the local level involves the following basic elements or procedures: 1. The local jurisdiction makes an allocation request to the State following the solicitation of developer interest in the program. (Each allocation request must be accompanied by a certification by the local agency that one -half of one percent of the dollar amount requested is on deposit in an interest- bearing trust account. These deposits are made by the Developers.) 2. The State Mortgage Bond Allocation Committee reviews the request and establishes the local allocation amount. 3. The bonds are issued. 4. Bond proceeds are used to purchase low- interest mortgage loans which are in turn made available to eligible first - time homebuyers to purchase homes in a project area. 5. Developers are accorded a specified amount of time to construct and make available a sufficient number of residences within the project area to enable lending institutions to originate and sell the mortgage loans. These and related program stipulations are generally contained in a "development agreement" between the local jurisdiction and the developers. History of the Orange County Program The Orange County Mortgage Revenue Bond Program was initiated in 1980. On August 14, 1980 the County issued $100,000,000 The proceeds of the 1980 bonds were to be used to on single - family homes located in projects in the areas. The homes were to be constructed and sold period from the date the 1980 bonds were issued. $28,817,853 of the 1980 bond proceeds.have been u loans. revenue bonds. purchase loans unincorporated over a 34 -month As of June 30, 1982, sed to acquire TO: MAYOR AND CITY COUNCIL - Page Three No bonds were issued under the program in 1981. On April 13, 1982 the County issued $54,060,000 in bonds. The proceeds of this issue will be used to purchase loans on single - family homes located within the unincorporated area as well as within certain participating jurisdictions. It is anticipated that approximately $52,435,360 principal amount of mortgages at an annual interest rate of 13.375% will be purchased. On July 14, 1982 the County initiated the second bond issue of the year. This issue was for $49,150,000. Once again the bond proceeds will be used to purchase loans associated with single- family homes in the unincorporated areas of the County. It is anticipated that $48,332,160 principal at an annual interest rate of 12.9958 will be purchased. The third issue of 1982 . occurred on September 17, 1982. This issue was for 26,135,000. The proceeds will.again be utilized in the incorporated areas and in the certain participating jurisdictions. Approximately $25,575,000 principal amount of mortgages at an annual rate of 11.508 will be purchased. Thus far in 1983 there has been one issue for $68,800,000. A mortgage interest rate of 9.43% resulted from this issue. In terms of eligibility with respect to this issue, 908 of the mortgage loans must be originated to first -time homebuyers and each mortgager must intend to occupy the residence as a principal residence. In no event may a mortgager's annual income under the program exceed 1208, in the case of a new residence and 1008 in the case of an existing residence of the median household income as determined by the County. The County has determined that median household income is currently $33,590. In terms of purchase price, the price of residences must not exceed 1108 of the average area purchase price of single- family residences in the County. At present these figures are $136,400 in the case of new residences and $113,500 in the case of existing residences. According to the County, the above - referenced basic criteria with respect to eligibility and purchase price can probably be expected to apply in the case of any subsequent bond issues. To date a total of 14 Orange County cities have participated at one time or another in the Mortgage Revenue Bond Program. Par- ticipation by cities occurs through the execution of a Cooperative Agreement with the County. 0 TO: MAYOR AND CITY COUNCIL - Page Four Second Bond Issue of 1983 Currently the County is preparing for a second 1983 bond issue. Exhibit 1 (Attached) is a copy of a February 23, 1983 letter which is being sent to potential developers. As noted in the letter the County's application to the State is due on April 1, 1983. Developers are requested to complete the project summary (attached to letter) and return it to the County by March 14, 1983. Additionally it is stated that in order for the current allocation request to be considered by the State Committee, the County must certify that one -half of one percent of the total dollar amount requested is on deposit in an interest - bearing trust account or provides certification through a letter of credit for the allo- cation amount. As noted earlier in this staff report, the one - half of one percent is a commitment deposit made by developers. Finally the letter from the County notes that any projects within cities must be approved by the respective City Council and the subject city must sign a cooperative agreement with the County prior to the issuance of the bonds. The bonds are anticipated for issuance in April or May, 1983. Participation by the City of Newport Beach As outlined above, full participation by the City of Newport Beach in the second bond issue is questionable due to the established timeframe and deadlines. According to County staff, however, there may still be some possibilities for City participation either in the second issue or during a subsequent 1983 issue in the event one materializes. With respect to the second issue, the City would need to execute a Cooperative Agreement with the County (Exhibit 2) prior to the issuance of the bonds in April or May. These agreements authorize the County to conduct the bond program within the City limits and assign to the County responsibility for administration of the City's share of the entitlement allocation. As noted in the attached February 23rd letter from the County, a Newport Beach developer interested in insuring participation would need to submit a project summary by March 14, 1983 and insure that one -half of one percent of the project dollar amount requested was on deposit by March 22, 1983. Obviously the March 14th deadline cannot be met; however, according to the County, a Newport Beach developer may still be able to participate in 1983 Issue No. 2 if a developer from another city who had previously applied for funds defaults on his commitment or for one reason or another drops out of the program. County staff indicates that this has occurred on several occasions during previous bond issues. Beyond. this, it is possible, although by no means certain, that the County may initiate a third 1983 bond issue. As noted earlier in this staff report, there were three issues during 1982. Finally, of course, there is the possibility of issues in future years. This would require the renewal of the federal authorizing legislation (Mortgage Revenue Bond Act of 1980) which sunsets on December 31, 1983. County staff feels that there is a reasonable chance that the act will be extended. on E r� L TO: MAYOR AND CITY COUNCIL - Page Five Conclusion and Suggested Action In conclusion, due to existing time constraints, the participa- tion of Newport Beach in 1983 Bond Issue No. 2 will depend upon certain factors over which the City has no control such as the response of developers in other cities. There is at least some chance for such an opportunity to present itself however, as noted in the above discussion. There is also the possibility for participation in a subsequent 1983 issue should one be undertaken. Finally, as noted there is the possibility of future issues beyond 1983 providing the federal authorizing legislation is extended. If the Council is interested in placing the City in line for possible 1983 program participation in the event one of the con- tingencies discussed above materializes, staff would suggest the following courses,of action: 1. Direct the City Manager to send a letter to the County indi- cating the City's potential interest in participating in the program and noting that the Cooperative Agreement will be placed on the March 28; 1983 evening agenda for formal consid- eration. 2. Direct that the subject Cooperative Agreement he so placed on the March 28th evening agenda. 3. Direct the Planning Department to evaluate the potential for City participation by reviewing pending projects and possi- bly soliciting potentially eligible developers as to their interest in participating in the current or subsequent bond issues. ROBERT L. WYNN City Manager RLW /GJB /jmb Attachments W I 2)1 0 UNTY OF NI February 23, 1983 TO: Developer N G E COUNTY ADMINISTRATIVE OFFICE R. E. THOMAS COUNTY ADMINISTRATIVE OFFICER HALL OF ADMINISTRATION 10 CIVIC CENTER PLAZA SANTA ANA. CALIFORNIA 92701 TELEPHONE: 834 -2345 � 13 1. c� SIIRJFCT: COUNTY OF ORANGE SINGLE FAMILY MORTGAGE REVENUE BOND ISSUE II, 1983 - PROJECT SUMMARY SUBMISSION The County of Orange received an allocation of $68,800,000 for the 1983 Single Family Mortgage Revenue Bond Program. The bonds have been successfully marketed resulting in a mortgage interest rate of 9.43%. In response to continual developer interest in the program, the Board of Supervisors directed the Rond /Capital Funding Program to solicit interest from developers for mortgage allocations should additional funding be available. In the State allocation process the available mortgage bond allocation is split into two pools -- entitlement and supplementary. The entitlement pool is substantially oversubscribed. There is, however, a reasonable possibility of obtaining an allocation from the supplementary pool if our application is submitted prior to April Ist. After April 1st,, the funds remaining in the supplementary pool will be combined with the entitlement pool. Each allocation request must be accompanied by a certification of the local agency to the State Allocation Committee that 1/2 of 1 percent of the dollar amount requested - in the allocation is on deposit in an interest - bearing trust account or certification of a letter of credit for the allocation amount. In the event that bonds are not sold within a required 90 -day period, this deposit may be forfeited for use by the local agency to assist housing for persons of low and moderate income. However, the Committee may, upon request of the County, extend the expiration date on the allocation for an additional 30 days in the event of poor market conditions and timing. In order for the current Orange County allocation request to be considered by the State Allocation Committee the County must certify that the 112 of 1 percent is on deposit no later than March 22, 1983. If interested in participating in future issues please complete the attached project summary and return it by March 14, 1983. Projects within cities must 3F -7R R. County of Orange Single Family Housing Bond February 23, 1983 Page 2 be approved by the city council and the city must sign a cooperative agreement with the County prior to the issuance of the bonds. All cities will be invited to participate. County projects may qualify for affordable housing credits. If you have any questions, please contact me at 834 -6135 or Vicki Yon at 834 -4775. VY:kh Attachment 36-AR 7 Sincerely, A ohn H. Gibson Bond /Capital Funding Program Manager • COUNTY OF ORANGE AND PARTICIPATING CITIES MORTGAGF REVENUE BOND PROGRAM PROJECT SUMMARY neveloper (firm name and principal contact): Address: Phone no.: Nearest Cross Street Project Location (include x map): Supervisoral District: City: Census Tract: Current Project Name Any other names which this project has been or will a processed under by governmenta agencies Total Dwelling Units in Projects: Project Density: Total Units to Be Financed: Unit Size Number of Bedrooms /Baths Number of Units Selling Price A. R. C. D. 1. What type of housing is contained in the project. Detached Attaches Condominiums Manufactured housing ?. Are there areas to be held in common ownership? Yes No 3. Special features (i.e., pool, jacuzzi, high energy) A. Has the project received all governmental approval up to and including a tentative subdvision map? Yes No 5. Are the units available for occupancy now? Yes No If no, what quarter (19A1 -83) will the units be readyr occupancy? 6. Amount of total commitment needed PLEASE PROVIDE A "REST ESTIMATE" D RAW DOWN SCHEDULE. 7. Least acceptable amount of commitment $ R. Rased on the request in #6 and #7, how many units in the project would you anticipate to be financed through the bond program? q. Are you willing to pay point non - refundable cash commitment fee of between 41 to 6% which includes 112 of 1 percent fee as described in attached letter? Yes No 36 -9R a, iz • In. The mortgage rate will be determined by the sale of the revenue bonds. Would you be willing to participate in the program if the rate were: 9% Yes No In% Yes No 11% Yes No 12% Yes No Please indicate the highest acceptable mortgage interest rate %. * 11. Would you be willing to participate in the program if it consists of 10 -year mortgage, 3n -year amortization with guaranteed refinancing at market rates? Yes _ No Graduated payment mortgages: Yes No Graduated equity mortgage: Yes No Other: Please specify i 12. Please submit a written construction financing commitment for your project. (Include copy of letter from lender approving financing subject to the bond issue.) PROJECTS CANNOT RE INCLUDED WITHOUT CONSTRUCTION FINANCING COMMITMENT. 13. Please submit plot plans, elevations, schematics for your projects. Also submit copies of your company's financial statements, a summary of developer experience and resumes. Also, additional information describing any joint venture or other entity involvement in the project. 14. is a buyer profile available? Yes No If yes, please attach. 15. Would your project qualify for FHA /VA insurance? Yes No 16. Would you consider developer buydowns from the rate derived from the mortgage revenue bonds? Yes No 17. if you do not participate in this issue, would you participate in subsequent County /city issues? Yes No 1R. Are you contemplating financing from other mortgage revenue bond programs? Yes No 19. Prepare project description in format of Attachment I for inclusion in Official Statement. Note: Please send 5 copies of this summary to: By March 14, 1983 John Gibson Bond /Capital Funding Manager 10 Civic Center Plaza Santa Ana, CA 92701 (714) R34 -6135 * Mortgage interest rate does not include mortgage insurance which, for the County's last issue cost 6n basis points for 95% mortgages, 5n basis points for 70% mortgages and 4n basis points for 80% mortgages. 36 -InR i Cl 13 APPENDIX A THE DEVELOPERS The following is a brief description of the Developments and the Developers. Each Developer provided the information pertaining to it and is solely responsible for the accuracy and completeness of such information. Neither the County nor the Underwriters have independently verified the accuracy of the following information. Mission Viejo Company (Funds Allocated: 57,500,000) The Development consists of two separate projects, consisting of 625 townhouse units. Two hundred ten of these units were financed under the County's first and second Bond issues of 1982. Ninety units will be financed under the current Bond issue. These units will be located on a 37.3 acre site and a 10.5 acre site in Laguna Hills, an unincorporated area of the County, and are to be developed by Mission Viejo Company, a California corporation formed in 1963 and a wholly owned subsidiary of Philip Morris Incorporated, a publicly held corporation. Since 1963, the Mission Viejo Company has built and sold over 16,000 homes in California. The following is a description of the units to be built: Plan No. of Units Bedrooms /Baths Square Feet Estimated Price• A 60 2/1 900 $86,000 B 30 3/1 1h 1,150 98,000 The units will be equipped with dishwasher, electric stove, gas up -flow furnaces (FHA minimum), wall - to -wall carpeting, sheet vinyl flooring in the kitchen and baths. The Development will also include a pool, spa and recreation center. Heritage — La Habra (Funds Allocated: $1,000,000) The Chelsea Place development is located on 1.5 acres in the City of La Habra and is comprised of :5 condominium units consisting of 4 buildings, each composed of 4 to 12 units. All of the units will be financed with program funds. The developer is Heritage -La Habra, a partnership whose general partners are Cunningham Development Corporation, a Nevada corporation formed in 1979 and National Heritage Industries, Inc., a Nevada corporation formed in 1974. The following is a description of the units to be financed: Plan No. of Units Bedrooms /Baths Square Feet Estimated Price• A 6 2 /1'h 960 $ 87,500 B 6 2 + Loft/ 11/2 1,110 96,800 C 13 2 /1'h +'h 1,258 100,500 The units will be equipped with FAU, oven /range, garbage disposal, dishwasher, wood burning fireplace and private enclosed patio space. Each unit will have a 1 car enclosed garage and l open space assigned to it. Project amenities will include a pool and landscaped walkways. Heritage - Walnut (Funds Allocated: $1,000,000) The Walnut development is located on 1.4 acres in the City of La Habra and is comprised of 22 condominium units, all to be financed under the Program. The development consists of 6 buildings, each composed of 2 to 4 units. The developer is Cunningham Development Corporation, a general partner in the • Preliminary, subject to change. A -1 EXHIBIT 2 COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF THIS COOPERATIVE AGREEMENT (the "Cooperative Agree- ment ") is hereby made and entered into as of , 1983 by and between the COUNTY OF ORANGE, a legal subdivision and body corporate and politic of the State of California (the "County "), and the CITY OF , a municipal corporation of the State of California (the "City "). W I T N E S S E T H: WHEREAS, the County has determined to engage in a home mortgage finance program (the "Program ") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act ") to make or acquire, directly or in- directly, long -term loans to finance the construction and acquisition of homes in the County, all as provided for in said Act; and WHEREAS, the County has determined to borrow money to finance the Program by the issuance of revenue bonds (the "Bonds ") as authorized by the Act and by the provisions of the Costa -Marks Housing Bond Allocation Act of 1981 (the "Costa - Marks Act ") ; and WHEREAS, the City has adopted the Program and deter- mined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual coven- s ants hereinafter provided, the parties hereto agree as follows: SECTION 1. The words and phrases of this Cooperative Agreement shall, for all purposes hereof unless otherwise de- fined herein, have the meanings assigned to such words and - phrases in the Act and in the Costa -Marks Act. SECTION 2. The County agrees to use its best efforts to undertake the Program and to issue the Bonds therefor pur- suant to the Act as soon as the County determines the same to be necessary and advisable. SECTION 3. The City represents and warrants to the County that: (i) the City has heretofore adopted a general plan for the City in conformance with the provisions of the Planning and Zoning Law of the State of California (Government Code Sections 65000 et seq.), (ii) said general plan includes a land use element and a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 4. The City agrees that the County may make or acquire home mortgages under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City and that any and all of its powers for the purpose of financing home mortgages pursuant to the Act with respect to such property -2- 01 3777P/2197/005 shall be exercised by the County; and the City hereby assigns to the County the City's entitlement allocation pursuant to the Costa -Marks Act for calendar year 1983; provided, however, such assignment shall be effective solely for use by the County to provide financing for properties located within the City (in- cluding a proportionate share of the costs of issuance, under- writers' discount, capitalized interest, reserve funds, and similar expenses associated with the Bonds), and the amount of the City's entitlement allocation so assigned shall be deter- mined by the County and notice thereof shall be given to the City within thirty (30) days after the issuance of the Bonds, and notwithstanding the foregoing, such assignment shall not be deemed ineffective if, after the issuance of the Bonds and for reasons beyond the control of the County, the County is unable to use all or any portion of the City's entitlement allocation assigned hereby to provide financing for properties located within the City and the same is used instead to redeem Bonds or to provide financing for properties located elsewhere in the County. However, no financing pursuant to the Program shall be made available for a home which is constructed within the City subsequent to the date hereof without the City Council's prior approval of the use of such financing for the development with- in which such home is to be constructed. SECTION 5. The City agrees to refrain from participa- tion in a home mortgage finance program from which bond pro- ceeds would be made available to provide financing for homes in -3- 13 3777P/2197/005 projects with respect to which the City Council has approved the use of financing from the Program pursuant to Section 4 hereof. In addition, in recognition of the transfer of juris- diction effected by the provisions of Section 4 hereof, the City agrees not to issue any qualified mortgage bonds during calendar year 1983 the principal amount of which, when added to the principal amount of the Bonds deemed hereunder to have been issued for the benefit of property within the City, will exceed any limit established by the Costa -Marks Act. SECTION 6. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Cooperative Agreement; and the City further agrees to refrain from taking any action which would to its knowledge tend to adversely affect the rating on the Bonds. SECTION 7. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agree- ments with other municipal corporations within the County, if deemed necessary and advisable to do so by the County. SECTION 8. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the Bonds. SECTION 9. This Cooperative Agreement shall expire and be of no further force and effect if no portion of the -4- �� 3777P/2197/005 Bonds are deemed to have been issued for the benefit of prop- erty within the City. IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day first above written. COUNTY OF ORANGE By (SEAL) Chairman of the Board of Supervisors ATTEST: Clerk of the Board of Supervisors APPROVED AS TO FORM: County Counsel (SEAL) ATTEST: City Clerk APPROVED AS TO FORM: City Attorney CITY OF By Mayor -5- 15- 3777P/2197/005 �1 • . ATTACHMENT 2 TIDE IRVINE CON ROM 550 Newport Center Drive, P.O. Box I Newport Beach, California 92660.0015 (714) 7202000 March 22, 1983 Mr. Robert L. Wynn City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, California SUBJECT: County Mortgage Revenue Bond Program Dear Bob: a ...9, yo 1 NAAR 2 31983�� i;q Manager i city of Newport Beach It is our understanding that the City Council has directed staff to solicit responses from developers regarding potential use of the County's Mortgage Revenue Bond Program for residential construction in Newport Beach. We wish to inform you of our Company's interest in mortgage revenue bond financing for multi - family residential projects in the City. One multi- family development which we believe is appropriate for mortgage revenue bond financing is the Baywood Apartment project. We intend to proceed with construction of the Baywood project, which consists of 68 dwelling units, in the near future. The North Ford residential site represents another potential multi- fami�y residential opportunity which could take advantage of future County bond issues. Given this expression of interest on our part, it would be appropriate, if agreeable, for the City to enter into a cooperative agreement with the County regarding future multi - family bond issues and to adopt a resolution authoriz- ing participation in the Mortgage Revenue Bond Program for the Baywood Apartment project. Thank you for your cooperation. Sincerely, 12ard G. Sim is President o munity Development cc: Mr. Gerald J. Bolint, Assistant to City Manager Mr. James D. Hewicker, Director of Planning ORNO. . • ATTACHMENT 3 JJM:pw 12/2/82 JJM:ar 12/3/82 COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF THIS COOPERATIVE AGREEMENT (the "Cooperative Agree- ment ") is hereby made and entered into as of 1983, by and between the COUNTY OF ORANGE, a legal subdivision and body corporate and politic of the State of California (the "County "), and the CITY OF , a municipal corporation of the State of California (the "City "). - s W I T N E S S E T H: WHEREAS, Chapter 7 (commencing with section 52075) of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act ") authorizes the County to incur indebtedness for the purpose of financing the construction or development of multifamily rental housing in the County; and WHEREAS, the County has determined to engage in a multifamily rental housing program pursuant to the Act (the "Program "); and WHEREAS, the County has determined to borrow money to finance the Program by the issuance of revenue bonds (the "Bonds ") as authorized by the Act; and WHEREAS, the City has approved the Program and determined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1. The words and phrases of this Coopera- tive Agreement shall, for all purposes hereof unless otherwise defined herein, have the meanings assigned to such words and phrases in the Act. SECTION 2. The County agrees to use its best 1 efforts to undertake the Program and to issue the Bonds therefor pursuant to the Act as soon as the County determines the same to be necessary and advisable. SECTION 3. The City represents and warrants to the County that: (i) the City has heretofore adopted a general plan for the City in conformance with the provisions of the Planning and Zoning Law of the State of California (Government Code Sections 65000 et seq.), (ii) said general plan includes a land use element and a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 4. The City agrees that the County may make or acquire loans for the financing of multifamily rental housing projects under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City and that, subject to the 3612P/2197/02 -2- as provisions of Section 5 hereof, any and all of its powers for the purpose of financing such projects pursuant to the Act with respect to such property shall be exercised by the County. However, no financing pursuant to the Program shall be made available for a project which is constructed within the City subsequent to the date hereof without the City Council's prior approval of the use of such financing therefor. SECTION 5. The City reserves to itself the right to undertake its own program of financing multifamily rental housing projects under the Act provided that under no circumstances will the City conduct or participate in a multifamily rental housing finance program from which bond proceeds would be made available to provide financing for any project with respect to which the City Council has approved the use of financing from the Program pursuant to Section 4 hereof. SECTION 6. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Cooperative Agreement; and the City further agrees to refrain from taking any action which would to its knowledge tend to adversely affect the rating on the Bonds. SECTION 7. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements with other municipal corporations within the County, if deemed necessary and advisable to do so by the County. 3612P/2197/02 -3- SECTION S. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the Bonds. IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day first above written. (SEAL) ATTEST: Clerk of the Board of Supervisors APPROVED AS TO FORM: County Counsel (SEAL) ATTEST: APPROVED AS TO FORM: City Attorney COUNTY OF ORANGE By Cnairman oz the Board of Supervisors . F CITY OF UTJ City Clerk 3512P/2197/02 -4- Mayor 0 • RESOLUTION NO. 93-15 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE COOPERATIVE AGREEMENTS WITH THE COUNTY OF ORANGE IN CONNECTION WITH HOME MORTGAGE FINANCE PROGRAMS PROVIDING FOR THE ISSUANCE OF REVENUE BONDS FOR THE CONSTRUCTION OR DEVELOPMENT OF MULTI - FAMILY AND SINGLE - FAMILY PROJECTS. WHEREAS, on September 28, 1981, the City Council of the City of Newport Beach adopted Resolution No. 11051, amending the Housing Element of the General Plan consistent with the provisions of Government Code Sections 65580, et seq, (Roos Bill); and WHEREAS, the City of Newport Beach is making a good faith effort to implement the policies and programs contained in the General Plan Housing Element; and WHEREAS, Objective 7 of the Newport Beach General Plan Housing Element is to "promote and assist in the develop- ment of housing for low and moderate income households "; and WHEREAS, the implementation of Housing Element Objective 7 calls for consideration of Tax Exempt Mortgage Revenue Bond Programs to facilitate the development, construc- tion and financing of housing for low and moderate income households; and WHEREAS, the Board of Supervisors of the County of Orange ( "County ") has resolved to engage in home mortgage financing programs ( "Programs ") pursuant to Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California ( "Act ") for persons and families within the income limits established by the Act and has determined to issue revenue bonds pursuant to the Act to provide funds for the Programs; and WHEREAS, the Programs provide for the issuance of bonds for the construction or development of multi - family and single - family projects; and - 1 - • 0 WHEREAS, implementation of the Programs within the geographical boundaries of incorporated cities requires that cities execute Cooperative Agreements with the County; and WHEREAS, The Irvine Company, a local developer, has requested that the City of Newport Beach ( "City ") enter into a Cooperative Agreement With the County Relative to the Issuance of Multi- Family Housing Revenue Bonds; and WHEREAS, The Irvine Company specifically requests approval of the Baywood Apartment Project for financing through the issuance of Mortgage Revenue Bonds; and WHEREAS, the request of The Irvine Company represents the first specific indication of interest by developers for implementation of the Programs within Newport Beach; and WHEREAS, concurrent approval by the City of a Cooperative Agreement With the County Relative to Issuance of Single - Family Housing Revenue Bonds would provide for possible future participation by developers in such issues within Newport Beach; and WHEREAS, the City Council.,of the City of Newport Beach finds and determines that it is desirable and consistent with the adopted Housing Element and the best general interests of the City to consent to the implementation of the Programs by the County within the geographical boundaries of the City pursuant to the Act; NOW, THEREFORE, the City Council of the City of Newport Beach does hereby resolve as follows: SECTION 1. The Mayor and City Clerk are hereby authorized to execute Cooperative Agreements with the County of Orange in connection with home mortgage finance programs providing for the issuance of revenue bonds for the construc- tion or development of multi - family and single - family projects within the geographical boundaries of the City; SECTION 2. The project known as the Baywood Apart- ment Project, as referenced in the attached letter from The Irvine Company, is specifically approved for financing pursuant to the multi - family Cooperative Agreement. - 2 - SECTION 3. This Resolution shall take effect immediately upon adoption. ADOPTED this 11th day of April , 1983. Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE )SS CITY OF NEWPORT BEACH ) I, WANDA ANDERSEN, City Clerk of the City of Newport Beach HEREBY DO CERTIFY that the foregoing Resolution, No. was duly adopted at a regular meeting of the City Council of the City of Newport Beach, held on the day of , 1983, by the following roll call vote: AYES COUNCILMEMBERS: Hart, Heather, Maurer, Cox, Strauss, Plummer, Agee NOES COUNCILMEMBERS: None ABSTAIN COUNCILMEMBERS: None ABSENT COUNCILMEMBERS: None - 3 - Wanda Andersen City Clerk City of Newport Beach )9 a r 1HE IRVINE CWPAW 550 Newport Center Drive, P.O. Box I Newport Beach, California 926600015 (714) 7202000 March 22, 1983 b Mr. Robert L. Wynn City Manager Mph 2 31�83s- City of Newport Beach '''���'''jjjjjj City Manager 3300 Newport Boulevard Gty of Newport Beach Newport Beach, California � SUBJECT: County Mortgage Revenue Bond Program Dear Bob: It is our understanding that the City Council has directed staff to solicit responses from developers regarding potential use of the County's Mortgage Revenue Bond Program for residential construction in Newport Beach. We wish to inform you of our Company's interest in mortgage revenue bond financing for multi - family residential projects in the City. One multi - family development which we believe is appropriate for mortgage revenue bond financing is the Baywood Apartment project. We intend to proceed with construction of the Baywood project, which consists of 68 dwelling units, in the near future. The North Ford residential site represents another potential multi - family residential opportunity which could take advantage of future County bond issues. Given this expression of interest on our part, it would be appropriate, if agreeable, for the City to enter into a cooperative agreement with the County regarding future multi- family bond issues and to adopt a resolution authoriz- ing participation in the Mortgage Revenue Bond Program for the Baywood Apartment project. s Thank you for your cooperation. SincerelyAGim r� c an is President a munity Development cc: Mr. Gerald J. Bolint, Assistant to City Manager Mr. James D. Newicker, Director of Planning