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
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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
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Mayor
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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
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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
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'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
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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
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'� 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
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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