1984-0731_ORANGE, COUNTY OF_Cooperation Agreementi
COOPERATIVE AGREEMENT BETWEEN
THE COUNTY OF ORANGE AND THE
CITY OF SAN JUAN CAPISTRANO
THIS COOPERATIVE AGREEMENT (the "Cooperative Agree-
ment") is hereby made and entered into as of Qj4 31 1984
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 SAN JUAN CAPISTRANO, 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
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
WHEREA,�, the City has appro#d 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 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
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set forth in the Act, with respect to property located within
the geographic boundaries of the City and that, subject to the
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.
SECTION 5. The City agrees that, in connection with
its approval of multifamily rental housing projects which are
to be financed pursuant to the Program, it will consider
opportunities to contribute to the economic feasibility of the
units therein through reduction in construction and design
requirements, by making provision for density bonuses, by
providing for expedited processing, and by making provisions
for other financial incentives for such projects; provided,
however, that nothing contained herein shall be construed to
require the City to approve any such project or to effect any
of such opportunities.
SECTION 6. 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 County has provided financing
from the Program.
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SECTIOA . The City agrees to ftertake 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 8. 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.
SECTION 9. 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.
COUNTY OF ORANGE
(SEAL) By ✓yj �it� a� n
Chairman of the
SIGNED AND 4?ffiED?HATACOPYOF Board of Supervisors
THIS DOCUMENT HAS BEEN DELIVERED i0
THE CHAIRMAN Of THE BOARD.
Clerk of the Bo rd of
Supervisors
4
APPROVED AS TO FORM:
County Counsel
CITY OF SAN JUAN CAPISTRANO
(SEAL)
By
Mayor
ATTEST:
City Cleo
APPROVED AS TO FORM:
'j-
(7 ity
j_City Attorney
7929P/2286/01
-5-
4 R. E. THOMAS
LINTY OF COUNTY ADMINISTRATIVE OFFICER
HALL OF ADMINISTRATION
2 1 30 CIVIC CENTER PLAZA
V
01 IL's SANTA ANA, CALIFORNIA 92701
5 3 RANG E A�` I 3'� �j t TELEPHONE: 834-2345
AREA CODE 714
COUNTY ADMINISTRATIVE OFFICE
August 1, 1984
Mary Ann Hanover, CMC
City Clerk
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear Ms. Hanover:
Enclosed is a fully executed copy of the Cooperative Agreement between the City
of San Juan Capistrano and the County of Orange for Multifamily Revenue Bonds.
Thank you for your cooperation.
Sincerely,
John H. Gibson
Assistant County Administrative Officer
JHG:Ih
L2
Enclosure
1'ti'd 00 PAIS @ORAD G6 A111TQ:'
SAN J"N�FAPISTRA",ICA43FOFWIA 92675
' �"PHdT1 �,49]:117Y
July 20, 1984
John H. Gibson, Manager
Bond Capital Financing Program
Hall of Administration
10 Civic Center Plaza
Santa Ana, California 92701
Re: Multitamily Housing Revenue Bonds Agreement
Dear Mr. Gibson:
Enclosed is the original and one copy of the
Cooperative Agreement between the City of San Juan Capistrano and
the County of Orange for Multifamily Housing Revenue Bonds. The
Agreement was approved by the City Council at their meeting of
July 17, 1984.
After approval by the Board of Supervisors, please
return one fully -executed copy of the Agreement to this office
for our files.
Thank you for your cooperation.
Very truly yours,
MARY ANN H OVER, CMC
City Clerk
MAH/mac
Enclosures
cc: City Manager
Ralph Castaneda
and Associates
J. I. Kocmur
Arosa Development
Jesica Dean
Environmental Management
Agency
Mr. David Recupero
Dick Rebal, Glendale Federal
Savings and Loan
Bruce Speiser
Carol O'Connell
OCHA Advisory Committee
0 0
3. APPROVAL OF COOPERATIVE AGREEMENT - MULTI -FAMILY HOUSING
m V17 W7TTC DnTTnQ 1nnTTMMV nc nVAVrr1' 110-4M711
V38) written Communications:
(5b) Report dated July 17, 1984, from the Director of Community
Planning and Development, forwarding a cooperation agreement
with the County of Orange for participation in the County's
multi -family revenue bond program. The program is targeted
to small and medium-sized developers for projects from 10 to
15 units. It is designed to provide loan rates 3 to 4
points below the market, to make loans of 12 to 30 years,
and to be limited for approximately 10 years to rental
projects where 20 percent or more of the units are reserved
for low to moderate income tenants.
Approval of Agreement:
It was moved by Councilman Buchheim, seconded by Councilman
Bland, and unanimously carried to approve the cooperation
agreement for multi -family housing revenue bonds with the
County of Orange. The Mayor and City Clerk were authorized
to execute the agreement on behalf of the City.
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16e -71(-7I
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AGENDA ITEM July 17, 1984
TO: Stephen B. Julian, City Manager
FROM: Thomas G. Merrell, Director
Community Planning and Development
SUBJECT: Proposed Cooperative Agreement - County of Orange
Multifamily Housing Revenue Bonds
SITUATION
A. Background
The County of Orange
a multifamily revenue
targeted to small and
for projects from 10
to provide loan rates
loans of 12 to 30 yea
where 20 percent or m
low to moderate incom
(Under current County
family of four could
is currently developing and marketing
bond issue. The program is specially
medium-sized developers, primarily
to 15 units. The program is designed
3 to 4 points below the market, make
rs, and be limited to rental projects
ore of the units are reserved for
e tenants for
regulations,
earn a maximum
a monthly housing or rental payment
low income family of four would ear
and afford monthly housing costs of
B. Summary and Recommendation
approximately 10 years.
a moderate income
of $27,000 and make
of close to $600. A
n a maximum of $16,900
$360.)
By signing the cooperation agreement (see attached), the
City agrees to allow the County to assist developers in
financing multifamily projects that may be built in San Juan
Capistrano. Under the agreement, the City agrees to
consider, but is not required to adopt, methods of increasing
the economic feasibility of such projects through expediting
the approval process, reducing design and construction
requirements and providing density bonuses. The agreement
does not prevent the City from undertaking its own program
of financing multifamily rental housing projects.
Staff recommends participation in the County bond program.
Staff views the cooperation agreement as a positive
opportunity to support multifamily housing within a flexible
framework that will not compromise planning standards in
San Juan Capistrano. The provision of County revenue bonds
could help mitigate the increasing costs of construction
finance with no liability to the City.
FOR CITY COUNCIL AGENDA
3
Agenda Item -2- July 17, 1984
C. Staff Findin
1. Consistency With General Plan - Due to its support
of housing for low/moderate income tenants, this
program would aid the City in carrying out the
goals of its Housing Element, which call for
"...promoting the availability of sufficient
rental housing for all economic segments of the
community." For example, this program could
represent a direct contribution to the projected
need of 1,333 housing units during 1984-1989, of
which approximately 350 would be rental units
including a projected need of 137 units for low
income households.
COMMISSION/BOARD REVIEW, RECOMMENDATION
Not applicable.
FINANCIAL CONSIDERATIONS
The City would incur no liability in case of default, and since
the County would be selling the bonds, this program would not
affect the City's future bonding capacity. The City would not
be required to waive development fees for projects within this
issue.
ALTERNATE ACTIONS
1. Authorize the Mayor to execute the cooperation agreement
with the County of Orange.
2. Modify the agreement and authorize the Mayor to execute.
3. Refer back to staff for further review.
RECOMMENDATION
By motion, authorize the Mayor to execute the cooperation
agreement for multifamily housing revenue bonds with the County
of Orange.
Respectfully submitted,
'`_
Thomas G. Merrell, Director
Community Planning and Development
TGM:BH: jtb
Attachment
i
AGENDA ITEM
July 17, 1984
TO: Honorable Mayor and City Council
FROM: Stephen B. Julian, City Manager
SUBJECT: Proposed Cooperative Agreement - County of Orange
Multi Family Housing Revenue Bonds
SITUATION:
This item has been withdrawn for further study and refinement. It will be
brought back at a later date.
Respectfully submitted,
����"
� Ste hen B. Julia
SBJ:cj
r.i� 3
FOR N Y COUN tt AGENDA ....�';=Z