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Home My WebLink AboutRES NO 69-91CITY OF BAKERSFIELD RESOLUTION NO. 69-91 RESOLUTION AUTHORIZING SECOND SUPPLEMENTAL COOPERATION AGREEMENT WITH THE HOUSING AUTHORITY OF THE COUNTY OF KERN, TO PARTICIPATE IN A HOME MORTGAGE FINANCE PROGRAM. WHEREAS, there is a shortage in the County of Kern (the "County") and in the City of Bakersfield (the "City") of decent, safe and sanitary housing, particularly of housing affordable by persons in the lower end of the purchasing spectrum, and conse- quent need to encourage the construction of homes affordable by such persons and otherwise to increase the housing supply in the county and in the City for such persons: WHEREAS, the Board of Commissioners of the Housing Authority of the County of Kern (the "Housing Authority") has heretofore declared its intent to engage in a home mortgage finance program (the "Program") pursuant to Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code of the State of California (the "Act:); WHEREAS, the City desires to approve the Program and consent to the operation of the program by the Housing Authority within the geographic boundaries of the City pursuant to the Act: WHEREAS, the City and the Housing Authority have previ- ously entered into a "Cooperation Agreement" dated March 5, 1973 (the "1973 Agreement") and a Supplemental Cooperation Agreement dated May 31, 1989 (the "First Supplemental Cooperation Agreement") authorizing the Housing Authority to undertake certain housing programs within the geographic boundaries of the City and the City now desires to execute a Second Supplemental Cooperation Agreement with the Housing Authority (EXHIBIT A, the "Second Supplemental Cooperation Agreement") to supplement the 1973 Agreement and the First Supplemental Cooperation Agreement for the purpose of approving the operation of the Program in the City; and WHEREAS, the Housing Authority intends to issue its $20,000,000 Housing Authority of the County of Kern (Mortgage Backed Securities Program) Series 1991 A Bonds (the "1919 Bonds") pursuant to the Act to provide funds for the Program; and WHEREAS, before issuing the 1991 Bonds, the Housing Authority must apply for and receive a private activity bond allocation from the California Debt Limit Allocation Committee or other appropriate state committee granting allocations (the "Committee:); and WHEREAS, the Housing Authority has applied for and obtained an allocation from the Committee in the maximum amount of $20,000,000; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Bakersfield, as follows: Section 1. Participation in Program; Cooperative Agree- ment. The City Council hereby authorizes the City's participation in the Program for the purpose of increasing the housing supply in the County and in the City and consents to the operation of the Program by the Housing Authority with respect to all property located within the geographical boundaries of the City. The form of the Second Supplemental Cooperation Agreement presented to this meeting is hereby approved and the Mayor is hereby authorized and directed to execute and the City Clerk is authorized and directed to attest said Second Supplemental Cooperation Agreement in substantially the form presented with such changes thereto as may be approved by the officers executing the same, such approval to be conclusively evidenced by the execution thereof. S__ection 2. Official Actions. The officers and employees of the City are hereby authorized and directed, jointly and sever- ally, to do any and all things necessary or advisable tin order to effectuate the purposes of this resolution or the issuance of the 1991 Bonds by the Housing Authority, and any and all actions previ- ously taken by such officers and employees in connection with the matters herein are hereby ratified and approved. PASSED, APPROVED and ADOPTED THIS 8thday of 1991, by the following vote, to wit: Peterson, Edwards, DeMond, Smith, AYES: McDermott. SalvaEgio NOES: None ABSTAIN: None ABSENT: None May _, Brunni, Mayor of the City of Bakersfield, California ATTEST: ~ity Cl~e~rk of h~~ City of Bakersfield, California APPROVED as to form: City Attorney City of Bakersfield C:RESHOME3 -3- "EXHIBIT A" SECOND SUPPLEMENTAL COOPERATION AGREEMENT THIS AGREEMENT is made and entered into this __day of May, 1991, by and between the Housing Authority of the County of Kern (the "Authority") and the City of Bakersfield (the "City"), as a supplement to the Cooperation Agreement, dated March 5, 1973, by and between the City and the Housing Authority (the "1973 Coopera- tion Agreement") and the First Supplemental Cooperation Agreement to the 1973 Cooperation Agreement, dated May 31, 1989 (the "First Supplemental Cooperation Agreement"); WI TNES SETH: WHEREAS, the City and the Housing Authority have previ- ously entered into the 1973 Cooperation Agreement and the First Supplemental Cooperation Agreement for the purpose of authorizing the Housing Authority to undertake certain housing programs within the geographic boundaries of the City; and WHEREAS, there is a shortage in Kern County (the "County") of decent, safe and sanitary housing which is affordable by persons and families in the lower end of the purchasing spectrum and a consequent need to encourage the construction or development of homes affordable by such persons and otherwise to increase the housing supply in the County for such persons; and WHEREAS, the Authority, pursuant to Chapter 1, commencing with Section 34200 of Part 2 of Division 24 of the California Health and Safety Code, as amended (the "Act"), proposes to under- take a single family housing finance program and to issue its Single Family Mortgage Revenue Bonds, 1991 Series A (the "Bonds"), in aggregate principal amount of approximately $20,000,000, or such higher amount as the Authority may authorize, to provide funds to defray the costs of acquiring home mortgages or making loans to lending institutions in order to enable them to make home mortgages with respect to homes located within the boundaries of both the unincorporated area of the County and certain incorporated areas located in the County (such financing program hereinafter referred to as the "Program"); and WHEREAS, the areas within which the Authority proposes to use the net proceeds of the Bonds to finance the provision of home mortgages are within the boundaries of the incorporated area of the City; and WHEREAS, the City expects the Authority to use many of the home mortgages for homes located in "targeted areas" of the city, as such term is defined in Section 143(j) of the Internal Revenue Code of 1986, as amended (the "Code"), thereby enhancing the benefit of the Program to the City and its residents; and WHEREAS, the City desires to cooperate with the Authority in such financing as hereinafter provided: 1. The Authority shall be authorized and shall use its best efforts to provide financing for single family home mortgages for homes located within the boundaries of the City in accordance with the Program; subject, however, to the applicable provisions of the Act and the Code, as amended, and the proceedings to be had and taken for the issuance of the Bonds, including the availability of proceeds of such Bonds for such purpose. 2. In exercising its rights under Section 1, the Authority may exercise within the City all of the powers of the Authority set forth in the Act with respect to the financing and operation of the Program and the issuance of the Bonds therefor. 3. All costs and expenses incurred with respect to the issuance of the Bonds shall be paid solely from the proceeds of sale of the Bonds, contributions or subventions by third parties or other legally available sources, and neither the City nor the Authority shall, under any circumstances, be liable for the payment thereof from their own funds. All services necessary to the accom- plishment of the purposes of this Agreement shall be provided by the Authority and financed solely from the sources of funds men- tioned in this Section. The City does not guarantee any performance of the Authority. 4. The sole purpose of this Agreement is to invest the Authority with the jurisdiction and bonding capacity to accomplish financing for the Program in the method and manner provided by the Act. IN WITNESS WHEREOF, the Housing Authority of the County of Kern has caused this Second Supplemental Cooperation Agreement to be executed by officers thereunto duly authorized as of the date hereinabove set forth. HOUSING AUTHORITY OF THE COUNTY OF KERN [SEAL] ATTEST: By: Chairperson Secretary -2- IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first written above. CITY OF BAKERSFIELD APPROVED as to form: By: MAYOR of the City of Bakersfield By: City Attorney Countersigned: By: Finance Director