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1987-1203_ORANGE , COUNTY OF_Cooperative Agreement�..4^\� • COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF SAN JUAN CAPISTRANO THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby made and entered into as of Zjacx,,, be. 3 , 1987 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 political subdivision of the State of California (the "City"). WITNESSETH 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 indirectly, 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 WHEREAS, the City has adopted 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 Cooperative 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 has issued the Bonds therefor pursuant to the Act. 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 Zoning Law of the State of California (Government Code Sections 65000 et seq.), (ii) said general plan includes a land use 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 further agrees that the County may exercise any or all of the City's powers for the purpose of financing home mortgages pursuant to the Act with respect to property located within the geographic boundaries of the City. SECTION 5. 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 6. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements with other political subdivisions within the County, if deemed necessary and advisable to do so by the County. SECTION 7. 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 Bonds is applied to the benefit of property 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 date first above written. SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Clerk of the Board`o i,2 -3-s-1 Supervisors APPROVED AS TO FORM: County -Counsel (SEAL) ATT ST• City Clerk Lary Ann Hanover APPROVED AS TO FORM: City Vorney John Shaw COUN TPF ORANGE BY o . Stanton Ch ' man of the Board of Supervisors CITY OF SAN JUAN CAPISTRANO By Anthony L. I , Mayor -2< December 9, 1987 V' OF N G E • LARRY PARRISH R@6EIVE1 COUNTY ADMINISTRATIVE OFFICER ADMINISTRATION Dec I I L l O Pik F V 1 R VIC CENTER AZA. SANTA ANA. CA 62 A 01 17141 834-2346 C+TY C:L'tiK ©iPARTriI:NT CET" O1 ,e'L„i COUNTY ADMINISTRATIVE OFFICE Ms. Mary Arai Hanover, CMC City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Ms. Hanover: Enclosed please find an executed copy of the City -County Cooperative Agree- ment related to the County's Single Family Mortgage Revenue Bond Program. The County walccmes your City's participation in this program. I will be happy to keep you informed of bowl fluid usage in Westminster and of other County housing finance activities which may benefit residents in your juris- diction. Thank you for your cooperation. Sincerely, CAL:dr Enclosure C120 I November 20, 1987 Linda Roberts Clerk of the Board Orange County Board of Supervisors 10 Civic Center Plaza Santa Ana, California 92701 MEMBERS OF THE CITY COUNCIL ANTHONY L. BLAND LAWRENCE F. 8UCHHE',M KENNETH E. FRIESS GARYL. HAUSDORFER PHILL IP R. SCHWARTZE CITY MANAGER STEPHEN B JULIAN Re: Cooperative Agreement - County Mortgage Revenue Bonds (Casa de Capistrano) Dear Linda: The City Council of the City of San Juan Capistrano at its regular meeting held November 17, 1987, adopted Resolution No. 87-11-17-5 adopting a Home Mortgage Finance Program in cooperation with the County of Orange. Council also approved a Cooperative Agreement between the County of Orange and the City to allow the County to make single-family mortgage loans within the City of San Juan Capsitrano. A certified copy of Resolution No. 87-11-17-5 is enclosed. Also enclosed are two copies of the Cooperative Agreement executed by the City. Upon approval of the Board of Supervisors, please return one fully -executed copy to this office. Thank you for your cooperation. If we can be of further assistance, please call. Very truly yours, Mary Ann Ha ver, City Clerk MAH/mac Enclosures cc: Director of Community Planning and Development Thomas Golden, Casa de Capistrano 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171 V • . Appointment of Carolyn Nash and Richard Wordes: Mayor Bland nominated Carolyn Nash and Richard Wordes. There being no further nominations, nominations were closed and it was moved by Mayor Bland, seconded by Councilman Schwartze and unanimously carried to appoint Carolyn Nash and Richard Wordes to represent the City at joint meetings of the South County Planning Commissioners. 2. INITIATION OF AMENDMENT TO THE MUNICIPAL CODE - Written Communications: Report dated November 17, 1987, from the Director of Community Planning and Development, recommending that the residential building height and tennis court development standards for hillside areas be modified to clarify the intent and purpose and resolve problems encountered with the present requirements. The Director of Community Planning and Development advised that a number of adjustments which met the intent of the regulations had been approved for construction of hillside tennis courts. The proposed standard would make more use of retaining walls on the upward slope and would reduce grading impacts on the downslope side. The revisions proposed for hillside residential building height would accommodate homes with 10- to 12 -foot -high ceilings. Initiation of Amendment: It was moved by Councilman Schwartze, seconded by Councilman Hausdorfer and unanimously carried to initiate an amendment to the Municipal Code related to building height measurement and tennis court design standards in hillside areas. Initiation of this amendment shall not be construed as future approval of said item. 3. COOPERATION AGREEMENT- COUNTY MORTGAGE REVENUE BONDS CASA DE CAPISTRANO 600.50 < Written Communications: Report dated November 17, 1987, from the Director of Community Planning and Development, advising that an agent for the Casa de Capistrano development wished to offer potential buyers the ability to obtain their mortgage through an Orange County -administered mortgage pool which provides 8.15% loans. The City must execute a cooperative agreement with the County for the program and all eligible buyers in the City could participate. Participants must be first-time buyers and have an income of $39,620 or less. Approval of Cooperative Agreement: R was moved by Councilman Hausdorfer, seconded by Councilman Schwartze that the following Resolution be adopted: -8- 1t117/87 -11-17-5. HOME MORTGAGE F L.ACIJ/RAIU V/ - !l RLJVLV AVIV VI 111E l..ti t \.V VIvl,,.1L Vl THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ADOPTING A HOME .MORTGAGE FINANCE PROGRAM IN COOPERATION u ITH THE COUNTY OF ORANGE (CASA DE CAPISTRANO) The motion carried by the following vote: AYES: Counciiinen Schwartze, Friess, Buchheim, Hausdorfer, and Mayor Bland NOES: None ABSENT: None The Mayor and City Clerk were authorized to execute the agreement on behalf of the City. 4. REALLOCATION OF PROPERTY T Written Communications: Report dated November 17, 1987, from the Director of Community Planning and Development, forwarding a resolution requesting reaifocation of property taxes to the City and Community Redevelopment Agency from certain special districts which will be detached from the annexation areas. Westside .Annexation %o, l: It was moved by Councilman Hausdorfer, seconded by Councilman Schwartze that the following Resolution be adopted: RESOLUTION NO. 87-11-17 \ n JIVE 11,,,, L/ , l'V l\ .yV. L - !\ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, PERTAINING TO REALLOCATION OF PROPERTY TAX TO CITY FROM LAGUNA NIGUEL COMMUNITY SERVICES DISTRICT (WESTSIDE ANNEXATION NO. 1) The motion carried by the following vote: AYES: Councilmen Schwartze, Friess, Buchheirn, Hausdorfer, and Mayor Bland NOES: None ABSENT: None -9- 11/17/87 AGENDA ITEM TO: FROM: SUBJECT: SITUATION • 0 November 17, 1987 Stephen B. Julian, City Manager Thomas G. Merrell, Director Community Planning and Development Cooperative Agreement: County Mortgage Revenue Bonds - Casa de Capistrano A. Summary and Recommendation - An agent for Casa de Capistrano, a 244 unit single- family development wishes to offer his potential buyers the ability to obtain their mortgage through an Orange County -administered mortgage pool providing 8.15 percent loans. In order for him to do this, the City must sign a cooperative agreement with the County to allow them to make these loans in the City. If the agreement is signed, eligible buyers throughout the City, not just Casa de Capistrano, could participate. Since there is no financial obligation to the City, staff recommnds approval of this agreement. B. Background - In July, 1987, the County of Orange sold $32,194,540 in single-family mortgage revenue bonds, 25 percent of which, or $8,000,000, can be used as mortgages for the resale of existing homes. Potential homebuyers can obtain their mortgage from this pool if they are first-time buyers and have an income of $39,620 or less (90 percent of the County median). The interest rate on the loan is 8.15 percent and is amortized over 28 years. The maximum loan amount is either $90,000 or $135,000, depending upon whether it is FHA insured ($90,000) or VA insured ($135,000). An agent for Casa de Capistrano wants to offer this financing to his buyers, but the County can only make the loans in the City if the City has signed a cooperative agreement with the County. If the City does sign the agreement, buyers anywhere in the City who meet the eligibility requirements and can financially qualify for the loan can take advantage of this program. Each mortgage is insured by either FHA or VA, as appropriate; thus, any default is covered by this insurance. There are no financial expenditures or risks to the City or to the County. Nor is the City's bonding capacity affected. PUBLIC NOTIFICATION None. COMMUNITY REDEVELOPMENT AGENCY Not applicable. COMMISSION/BOARD REVIEW, RECOMMENDATION None. H2c Agenda Item -2- November 17, 1987 FINANCIAL CONSIDERATIONS This agreement will allow potential first-time homeowners with incomes below $39,620 to borrow money at 8.15 percent. There are no administrative costs to the City and, since the mortgages are insured by FHA or VA, there is no financial expense or risk to the City. ALTERNATE ACTIONS 1. Authorize the Mayor to execute the attached agreement. 2. Take no action on the agreement. By motion, adopt the attached resolution authorizing the Mayor to execute the attached Cooperative Agreement with the County of Orange allowing the County to make single- family mortgage loans within the City of San Juan Capistrano. Respectfully submitted, Thomas G. Merrell, Director Community Planning and Development TGM:RZ:Icl RJZ/AI1117872 Attachment RESOLUTION NO. 87-11-17-5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ADOPTING A HOME MORTGAGE FINANCE PROGRAM IN COOPERATION WITH THE COUNTY OF ORANGE (CASA DE CAPISTRANO) WHEREAS, there is a shortage in the County of Orange (the "County") and in the City of San Juan Capistrano (the "City") of decent, safe and sanitary housing, particularly of housing affordable by persons in the lower end of the purchasing spectrum, and a consequent need to encourage the construction, purchase and rehabilitation of homes affordable by such persons and otherwise to increase the housing supply in the City and in the County for such persons; and, WHEREAS, the Board of Supervisors of the County has resolved to engage in a home mortgage finance program (the "Program") pursuant to Part S of Division 31 of the Health and Safety Code of the State of California (the "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, this City finds and determines that it is in the best interest of the City to adopt the Program and to consent to the implementation of the Program by the County within the geographic boundaries of the City pursuant to the Act. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Juan Capistrano as follows: SECTION 1. The City hereby adopts the program for the purpose of increasing the housing supply in the County and in the City and consents to the implementation of the program by the County with respect to all property located within the geographic boundaries of the City pursuant to the Act. SECTION 2. The agreement, to be dated upon approval by the County Board of Supervisors, between the County and the City (the "Cooperative Agreement"), in substantially the form submitted to this meeting, is hereby approved; and the Mayor of the City is hereby authorized and directed to execute and deliver the same, for and in the name and on behalf of the City, and to approve any additions to or changes in said form thereof which they deem necessary or advisable, their approval of such additions or changes to be conclusively evidenced by their execution of the Cooperative Agreement as so added to or changed. The Mayor of the City is further authorized to enter into such additional agreements with the County, execute such other documents and take such other actions as they may deem necessary or appropriate to carry out the purpose and intent of the Cooperative Agreement or to cooperate in the implementation of the program. -1- 0 SECTION 3. This resolution shall take effect immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this of November 1987. ATTEST: 17th ANTHONY L. B6AD, MAYOR STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) day I, MARY ANN HANOVER, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 87-11-17-5 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 17th day of November , 1987, by the following vote: AYES: Councilmen Schwartze, Friess, Buchheim, Hausdorfer, and Mayor Bland NOES: None ABSENT: None (SEAL) MARY ANN HOVER, CITY CLERK -2-