Loading...
HomeMy WebLinkAbout1981-041 CRA , . . . . CC-T 3441B JHHW:PNL:sc OS/20/8l RESOLUTION NO. 8l - 41 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AMENDING RULES AND REGULATIONS RELATING TO ITS RESIDENTIAL MORTGAGE FINANCING PROGRAM, AUTHORIZING THE EXECUTION OF IMPLEMENTING AGREEMENTS AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO RESOLVED, by the Convnunity Redevelopment Agency of the City of Santa Ana, California (the "Agency"), that WHEREAS, the legislature of the State of California has authorized redevelopment agencies to purchase long-term, low-interest rate loans made to provide financing for new residential construction in redevelopment project areas in order to encourage investment within and to upgrade such areas and has authorized redevelopment agencies to issue bonds to finance the purchase of :::uch loans; WHEREAS, the Agency has undertaken a Residential Mortgage Financing Program and, to that end, has authorized the issuance of residential mortgage revenue bonds. for the purpose of providing funds for the purchasing of mortgage loans or participation interests therein on making loans to lenders in order to provide financing for residential construction within the Agency's City of Santa Ana Convnunity Redevelopment Project Areas in order to encourage investment within and to upgrade such Project Areas; WHEREAS, the provisions of appl icable law require the Agency to adopt Rules and Regulations in implementation of the Agency's Residentialfobrtgage Financing Program and the Agency has adopted such Rules and Regulations which the Agency now desires to amend; and WHEREAS, the Agency desires to make and enter into conmitment contracts (and reservation of funds) with the developers, mortgage loan participation purchase and servicing agreements with the qualified mortgage lenders to establish procedures by which and criteria for the origination and sale of mortgage loans or the purchase of participation interests in mortgage loans by the Agency, agreements to advance regarding subordination with mortgage lender pursuant to which ,they agree to advance timely payments on the Agency's participation interest in mortgage loans and loan agreements with the qualified lenders pursuant to which the Agency makes a loan to the lender; NOW, THEREFORE, IT IS HEREBY ORDERED THAT: 1. The Rules and Regulations, as hereby amended and attached hereto as Exhibit "A", are hereby adopted and approved as the Rules and Regulations of the Agency relating to its Residential Mortgage Financing Program. r , . . . . 2. The form of the Commitment Contract (and Reservation of Funds), the Mortgage Loan Participation Purchase and Servicing Agreement, the Loan Agreement and the Agreement to Advance Regarding Subordination, substantially in the forms attached hereto as Exhibit "B", "C" "0" and "E", respectively, are hereby approved as agreements for use in the Residential Mortgage Financing Program and the Executive Director and the Deputy Director, or either of them, are hereby authorized to enter into such Agreements on behalf of the Agency. * * * * * The foregoing resolution was passed and adopted by the Community Redevelopment Agency of the City of Santa Ana, at a special meeting thereof held on the 26th day of May, 1981, by the following vote, to wit: AYES: NOES: Bricken, Luxembourger, McGuigan, Griset, Serrato, Acosta r1arkel ABSENT: None ATTEST: APPROVED AS TO FORM: ~~~ Agency ega u e 1 APPROVED: ú~'~~ - ------- Chairman 2 , . . 6518A JHHW:ACH:ea 04/11/80 :ea 04/16/80 :ea OS/22/80 :sc 06/18/80 :sc OS/20/81 RULES AND REGULATIONS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA RELATING TO ITS RESIDENTIAL MORTGAGE FINANCING PROGRAM Dated: As of July 1, 1980 Amended: May 26, 1981 CHAPTER 1 GENERAL PROVISIONS 1.01 Scope. These Rules and Regulations are made and published pursuant to Chapter 8, commencing with Section 33750, of Part 1 of Division,24 of the Health and Safety Code of the State of California and particularly Section 33767 thereof, as amended, and relate to the providing of -technical assistance and long-term mortga~e loans at low interest rates through qualified mortgage lenders to partlcipating parties to finance. construction of residential housing in the Agency's City of Santa Ana Community Redevelopment Project Area in order to encourage investment and upgrade such Area. Such mortgage loans may be purchased by the Agency from qualified mortgage lenders. The Agency may also acquire a 90% part icipat ion interest in a mrtgage loan pool and make a loan to the lender, who will, as the mortgage lender, originate mortgage loans, to be made for the above purpose. Such purchase may be accomplished by a bank or trust company or national banking association acting as Trustee on behalf of the Agency and its bondholders. All such mrtgage loans shall be originated, executed and purchased according to the terms and conditions set forth in a prior written commitment from the Agency to purchase such mrtgage loans, participation interest in mrtgage loans or make loans to lenders. 1.02 Definitions. The terms defined in the Act and the Resolution have the same meaning when used in these Rules and Regulations as are ascribed to them in the Act and the Resolution. . Act means Chapter 8, commencing with Section 33750, of Part 1 of Division 24~ the Health and Safety Code of the State, as now enacted and as . hereafter amended. . Agency means the Community Redevelopment Agency of the City of Santa Ana. 1. Bond or Bonds means Bonds of the Agency authorized and iSsued under. the Resolution. - EXHIBIT A City means the City of Santa Ana. Comnitment Contract means the Comnitment Contract (and Reservation of Funds) by and among the Agency, the Trustee, the Qualified Mortgage Lender and each developer of each Project whereby the Agency comnits funds to purchase and the developer and Qualified Mortgage Lender agree to provide Mortgage Loans for purchase by the Trustee on behalf of the Agency. Condominium Project means the entire parcel of real property divided, or to be divided, pursuant to Section 1350, et seq., of the Civil Code of the State into condomin1um Residences (as a condominium is defined in Section 783 of the Civil Code of the State), including all structures thereon. Construction Standards means the applicable standards Residential Construction adopted by the Agency as part of its Program. FHLMC means the Federal Home Loan Mortgage Corporation or other agency or instrumentality of the United States to which the powers of the Federal Home Loan Mortgage Corporation have been transferred. for Financing means the lending of moneys or any other thing of value for the purpose of facilitating Residential Construction pursuant to the Act and includes the making of Mortgage Loans to purchasers of newly constructed Residences and the purchase, servicing and selling of Mortgage Loans. FNMA means the Federal National Mortgage Association. Instructions, rules of practice and guidelines mean all handbooks, guides, rules, manuals or other materials of whatever nature adopted by the Agency with respect to the Program, and includes, but is not limited to, the Mortgage Loan Purchase Agreement, the Sellers' Guide, the Servicing Agreement and the Servicers' Guide. ~ Law means the Comnunity Redevelopment Law (Part 1, conmencing with Section 33000, of Division 24 of the Health and Safety Code of the State), as now enacted and as hereafter amended. Loan Agreement means the agreement so designated by and among the Agency, the Trustee and the Lender pursuant to which the Agency makes a loan to the Lender. Mortgage means a deed of trust or other instrument which constitutes a lien in the State on real property and improvements thereon, together with a promissory note or similar interest bearing obligation made by a Mortgagor and secured by such a lien on real property located within the Projects and improved or to be improved by a Residence. Mortgage Insurer means any person 1 icensed to insure Mortgages in the State. 1, 2 8 . . . . 8 . . . . '-N._""" ..~"'" ,;e.,' "..- r"'r Mortgage Loan means a Mortgage made and executed for the purpose of Financing Residential Construction, the payment of which is insured by Mortgage Insurance. . Mortgage Loan Participation Purchase and Servicing Agreement means an agreement which combines the Mortgage Loan Purchase Agreement and the Servicing Agreement. the Agency, M~~gf:us~~:~ ~~;c~a~~a f~rt~ea~nes L~~d:~r~~~nt~e b~u~~~a:;oo~¡ Mortgage Loans pursuant to' sub-section (C) of Section 505 of the Resolution, and includes the Sellers' Guide. It also means that part of the Mortgage Loan Participation Purchase and Servicing Agreement related to the above. Mortgagor means the obligor under a Mortgage Loan who qualifies as a Participating Party under the Act. Participating Party means any person, corporation, partnership, firm or other entity or group of entities requiring Financing for Residential Construction pursuant to the provisions of the Act. No elective officer of the State or any of its political subdivisions or employee of any redevelopment agency shall be eligible to be a Participating Party. Participation Certificate means a certificate in the form provided for in the Mortgage Loan Participation Purchase and Servicing Agreement evidencing the ownership interest purchased by the Agency in the Mortgage Loan enumerated therein. Private Mortgage Insurance means insurance issued by a Mortgage Insurer insuring or guaranteeing, respectively, principal and interest payments on a Mortgage Loan, in whole or in part. Program means the Residential Mortgage Financing Program or, as the Program is also known~ the Mortgage Loan Program. ' Project means the Residences being financed directly or indirectly with the proceeds of the Bonds, namely the Santa Ana Intown Housing One Condominiums, involving the development of a 14-acre site between First and Third, and Ross and Flower Streets. as a Condominium Project, or one or more Residential Construction projects with respect to which a Conmitment Contract (and Reservation of Funds) has been approved and executed. Qualified Mortgage Lender means any state or national bank or trust company, savings and loan association, or mortgage banker authorized to acquire, hold and deal in mortgages and approved by the FNMA or FHLMC as a seller/servicer of mortgages. Such Mortgage Lender shall have a principal office and place of business in the State, shall be authorized to do business in the State, shall be authorized by the Agency to do business with the Agency and to aid in Financing pursuant to the act on behalf of the Agency. ; 3 Redevelopment Project Area means the City of Santa Ana Community Redevelopment Project Area, the Redevelopment Plan for which was approved by the City Council pursuant to Ordinance No. 1173, adopted on July 2, 1973, as amended. Residence means real property improved with a residential structure and located in the Project, the financing of which ,is or may hereafter be permitted under the Act. Residence includes both condominium dwelling units within a Condominium Project and real property improved with single-family residential structures. Residential Construètion means the construction of new Residences meeting the requirements of the Agency's redevelopment plan for, the Redevelopment Project Area and of applicable local, State and Federal standards for residential construction, including any higher standards adopted by the Agency for a Redevelopment Project Area or as part of the redevelopment program. Residential Mortgage Financing Program or Mortgage Loan Program means and includes any act or thing done by the Agency, the Trustee, and any Qualified Mortgage Lender and Servicer under the Resolution for the purposes of encouraging investment within and upgrading of a Redevelopment Project Area in accordance with the redevelopment plan for the Redevelopment Project Area by providing permanent Financing for Residential Construction through the purchase of Mortgage Loans or participation interests in Mortgage Loans, or financing loans to lenders who originate Mortgage Loans with the proceeds of Bonds. Resolution means the Resolution adopted by this Agency on July 1, 1980, ,and amended on May 26, 1981. Rules and Regulations means these Rules and Regulations adopted by the Agency in connection with its Residential Mortgage Financing Program. Sellers' Guide means the Sellers' Guide dated as of July 1, 1980, as now or hereafter amended supplemental to the Mortgage Loan Purchase Agreement and conta in ing further criteri a for the purchase of Mortgage Loans by the Trustee on behalf of the Agency, including amendments and supplements approved May 26, 1981. Servicer means any Qualified Mortgage Lender who shall, pursuant to a Servicing Agreement with the Agency and the Trustee, agree to service Mortgage Loans. Servicers' Guide means the Servicers' Guide dated as of July 1, 1980, as now or hereafter amended supplemental to the Servicing Agreement and containing further criteria for the servicing of Mortgage Loans by a Servicer, including amendments and supplements approved May 26, 1981. Servicing Agreement means a contractual agreement by and aroong the Agency, the Trustee and a Servicer for the servicing of Mortgage Loans by the Servicer, and includes the Servicers' Guide. It also means that part of the 4 " , . . . . 8 . . . . --...",...,.-" Mortgage Loan Participation Purchase and Servicing Agreement related to the above. Trustee means Security Pacific National Bank appointed to act as Trustee under the Resolution, and its successor or successors and any other bank or trust company or national banking association at any time substituted in its place pursuant to the Resolution. ' 1.03 Rules of Practice and Procedure. Instructions, rules of practice and guidelines for the receipt and processing of applications for Mortgage Loans, the issuance of Mortgage Loan purchase conmitments, the purchase of Mortgage Loans, the undertaking of Mortgage Loan closings, the servicing of Mortgage Loans, the establishment of a program to assist persons within a Redevelopment Project Area who, without financial assistance would be unable to undertake construction of their Residences, the purchase of participation interest in Mortgage Loans, the making of loans to lenders, and the taking of other internal actions as may be necessary and desirable for the implementation and administration of all aspects of the Program may be established and modified from time to time by the Agency, at all times consistent with the provisions of the Act, the Resolution and these Rules and Regulations. 1.04 Inter-Agency Cooperation. Whenever possible and appropriate, the Agency will cooperate with Federal, State and local agencies to utilize all existing and available resources to promote the production and increased availability of low-interest loans to finance Residential Construction within a Redevelopment Project Area of the City. 1.05 Purchase and Origination of Mortgage Loans. The Agency, through the Trustee, shall purchase Mortgage Loans or participation interests in Mortgage Loans made to Participating Parties by Qualified Mortgage Lenders without premium, if the Mortgage ,Loans are of the character and on the terms established by the Agency for the Program. 1.06 Loans to Lenders. The Agency, through the Trustee, shall make loans to qualified lenders under the terms set forth in the Loan to Lender Agreement. 1.07 Holding, Pledge and Assignment. The Agency, through the Trustee, may hold Mortgage .Loans as security for Financing Residential Construction and may pledge or assign the same as security for repayment of Bonds issued pursuant to the Resolution. Such Mortgage Loans may be assigned to, and held on behalf of the Agency by, the Trustee. 1.08 Forms. Forms to be 'employed for the mak ing and process ing of applications for Mortgage Loans, for the purchase of Mortgage Loans and for the administration of all matters related thereto shall be either approved or prepared, revised and amended from time to time by the Agency staff and 5 consultants, and shall specify the information to be included therein and the supporting materials to be submitted therewith. The forms now and hereafter used in connectiOn with the purchase of loans by FHLMC shall be deemed acceptab 1 e for use in the Program. 6 '-'. 8 . . . ¡. . 8 . . . . CHAPTER 2 RESIDENTIAL MORTGAGE FINANCING PROGRAM 2.01 General. These Rules and Regulations prescribe the policies, procedures and authorization for conmitting to purchase and for purchasing Mortgage Loans from Qualified Mortgage Lenders, for the purchase of participation interests in Mortgage Loans originated by Qualifled Mortgage Lenders and makes loans to Qualified Mortgage Lenders. 2.02 Objective. The ba~ic objective of the Agency in implementing the Program is to make available long-term, low-interest loans to finance Residential Construction in the City of Santa Ana Conmunity Redevelopment Project Area of the Agency in order to encourage investment and to upgrade such Area and to encourage persons of all social and economic positions to reinhabit such Area, thereby rendering such Area more socially balanced and economically self-sufficient. 2.03 Eligible Mortgage Lenders. The Agency, on its own initiative or upon request, shall distribute to mortgage lenders information concerning the Program and any interested mortgage lender may submit material sufficient for the Agency to determine its qualifications to act as a Qualified Mortgage Lender and Servicer under the Program. Having submitted appropriate documentation for review and approval to the staff of the Agency, Wells Fargo Mortgage Company and Citizens Savings and Loan Association shall be Qualified Mortgage Lenders and Servicers for purposes of the Program. 2.04 Eligible Mortgagors. In addition to the further requirements of the Mortgage Loan Purchase Agreement and the Sellers' Guide, Mortgagors applying for a Mortgage Loan under the Program must meet all of the following requirements: (1) Be, and continue to be, the owner-occupant of the Residence securing repayment of the Mortgage Loan; (2) Mortgage Loan; Possess the legal capacity to incur the obligations of the (3) Have a general cred it stand ing acceptab le to the Mortgage Insurer; (4) Be able to pay all obligations as they become due, including the principal, interest and escrow payments, if any, on the Mortgage Loan applied for; (5) Agree, as a Participating Party, to comply with requirements established by the Agency and with the terms of the Mortgage Loan; and (6) Not be an elective officer of the State of California, the Agency nor of any political subdivision of the State, nor an employee of any redevelopment agency. 7 2.05 Eligible Properties. In addition to the further requirements of the Mortgage Loan Purchase Agreement and the Sellers' Guide, in order to be subject to a Mol"tgage Loan under the Program, a Residence must meet the following requirements: (1 ) Project Area; (2) Architectural and engineering design must meet Construction Standards and the work of Residential Construction must be subject to Agency. supervision in accordance with an applicable agreement with a developer or owner; , Be located in City of Santa Ana Community Redevelopment (3) Be open, upon sale or rental of any portion thereof, to all regardless of race, color, religion, national origin, or ancestry; (4) Be real property on which a Residence is located and held at the time of closing by the Mortgagor in fee simple. 2.06 Contractors and Contracts. All contractors and subcontractors engaged in Residential Construction shall provide equal opportunity for emp loyment, without discrimination as to race, sex, marita 1 status, co lor, religion, national origin or ancestry. All contracts and subcontracts for Residential Construction shall be let without discrimination as to race, sex, marital status, color, religion, national origin or ancestry. It lS the policy of the Agency to encourage participation by minority contractors. All publicity authorized or undertaken by the Agency in connection with the Program shall include provisions encouraging participation by minority contractors particularly, in common with all contractors. 2.07 Mortgages. (A) The Mortgage shall be a lien on the property, be consistent with California law, and conform with the standards prescribed by the Agency, the Qualified Mortgage Lender and the Mortgage Insurer. (B) . The approved Mortgage Loan shall include provisions necessary to protect the interest of the Agency, such provisions being stipulated by the Mortgage Loan Purchase Agreement and the Sellers' Guide, Servicing Agreement and the Servicers' Guide and Program instructions, rules of practice and guidelines approvêd and adopted from time to time by the Agency or its staff. (C) With respect to Mortgage Loans financed by the Agency, the maximum loan as a; percentage of the property's appraised value or sales price shall be determined according to the applicable regulations and procedures of the Qualified Mortgage Lender and the Mortgage Insurer, and within the limitations and requirements of the Act and the Program, the Commitment Contract (and Resêrvation of Funds) and the Mortgage Loan Purchase Agreement, 8 8 . . . . 8 . . . . L- 2.08 ,Mortgage Loan Terms. (A) The interest rate to be paid on all Mortgage Loans shall be a rate that is established by the Agency in the Mortgage Loan Purchase Agreement which interest rate is consistent with its costs of borrowing, expenses of operation and reserves against losses due to default. (B) . Each Mortgage Loan shall be scheduled for repayment within the shortest period consistent with the ability of the Mortgagor to pay the required principal and interest on the Mortgage and other attendant expenses, but in no case shall it hàve a maturity which is greater than 30 years, or eighty percent of the estimated economic life of the property, whichever is less. (C) The Mortgage Loan shall provide that payments will be due on the first of each month. Payments to principal shall corrmence on the first day of the second month following the date of settlement of the Mortgage Loan. (D) The Mortgage Loan shall comply in all respects with the requirements and limitations of the Act, the Program and applicable rules and regulations of the Mortgage Insurer. ,(E) The Agency shall establish a Mortgage Loan prepayment penalty which it deems satisfactory to protect its financial obligations to the purchasers and holders of the Agency's notes or Bonds; provided, however, that any such prepayment penalty shall not be greater than the maximum amount, if any, provided therefor in the Mortgage Loan Purchase Agreement and the Sellers' Guide and as permitted under the rules and regulations of the Mortgage Insurer and State law. 2.09 Default Under Mortgage. Mortgages held as security for Mortgage Loans made under the Program which are in default may be foreclosed by the Servicer according to the terms of the security deed of trust by advertisement and public sale under power contained therein. .' 2.10 Mortgage Servicing. In the case of Mortgage Loans submitted by a Qualified Mortgage Lender and approved for purchase according to the provisions of the Mortgage Loan Purchase Agreement, the Agency will offer a Servicing Agreement to such Qualified Mortgage Lender. Should the Qualified Mortgage Lender decline to enter into such Servicing Agreement, the Agency may provide for the servicing of the Mortgage Loan by entering into a Servicing Agreement with another Qualified Mortgage Lender. Servicing of all Mortgage Loans shall be accomp.lished pursuant to and intompliance with the Servicing Agreement and the Servicers' Guide. 9 CHAPTER 3 MISCELLANEOUS 3.01 Waiver. The Agency by resolution may waive or vary particular provisions of these Rules and Regulations: (1) to conform to the requirements of the Federal Government in connection with any housing with respect to which Federal assistance is sought; or (2) due to exceptional circumstances if, in the determination of the Agency, the application thereof to a specific case or under an emergency situation may result in undue hardship. 3.02 Separability. If any clause, sentence, paragraph, section or part of these Rules and Regulations shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the con~roversy in which such judgment shall have been rendered. ' 3.03 Certain Arrangements Prohibited. No person from whom the Agency may acquire or to whom the Agency may make Mortgage Loans shall, pursuant to any arrangement, forma 1 or informal, purchase Bonds in an amount re lated to the amount of Mortgage Loans to be acquired from such person by the Agency. 3.04 Amendment. These Rules and Regulations may be amended or supplemented by the Agency at such times and in such manner as it may determine, to the extent that these Rules and Regulations are inconsistent with the Act, the Resolution or with other applicable provisions of law. 3.05 Forms of Agreements. The forms of Commitment Contract (and Reservation of Funds), Mortgage Loan Purchase Agreement, Servicing Agreement and Investment Agreement attached hereto as exhibits "A", "B", "C" and "D", respectively, are hereby approved for use in the Program in the form substantially as so attached and said contract and agreements shall be executed on behalf of the Agency by an Authorized Officer. 3.06 Sellers'. Guide and Servicers' Guide. A Sellers' Guide and a Servicers' Gulde, both dated as of the date of these Rules and Regulations, have been prepared by the Agency staff and consultants in accordance with the requirements of the Act, the Resolution and these Rules and Regulations and such Guides are þereby approved for use in the Program, provided that such Guides may be hereafter amended to reflect appropriate industry standards and FHLMC guidelines. * * * * * (Exhibits to be attached to executed original.) 10 8 . . . . I . . , 8 I hereby certify that the foregoing Rules and Regulations were duly approved and adopted by Resolution No. 81- '11 , which Resolution was duly passed and adopted by the Community Redevelopment Agency of the City of Santa Ana, at a meeting of the Agency held on the 26th day of May, 1981, by the fo llowing vote, to wit: AYES: NOES: ABSENT: Members: Bricken, Luxembourger, McGuigan, Griset, Serrato, Acosta Members: Markel Members: No" ~ ~ (S E A L) 11 . . . . . 342gB JHHW:PNL:ea :ea :ea :ea :ea :ea ACH:ea ACH:ea COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ORANGE COUNTY STATE OF CALIFORNIA A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE ISSUANCE OF RESIDENTIAL MORTGAGE REVENUE BONDS, ISSUE OF 1981, SERIES A (PARTICIPATION PURCHASE AND LOAN TO LENDER PROGRAM) RESOLUTION NO. 81-40, ADOPTED May 26, 1981 04/17/81 04/23/81 04/29/81 OS/20/81 OS/26/8l 06/01/81 06/03/81 06/04/81 ,r~ ,,¡