R-6750
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CjED:ML:rc
City Counc11 Meeting 9-13-83
Santa Monica~ California
RESOLUTION NUMBER 6750(CC5)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA AUTHORIZING
EXECUTION OF COMMITMENT AGREEMENT
BETWEEN THE CITY OF SANTA MONICA
AND THE CALIFORNIA HOUSING
FINANCE AGENCY
WHEREAS~ 1t is the policy of th1s locality to preserve and
improve the rental housing stock;
WHEREAS~ the California Finance Agency (hereinafter
"Agency") will issue bonds to fund mortgage loans to finance the
rehabil1tation and development of multifam11y rental housing: and
WHEREAS, the City desires to enter into a Commitment
Agreement with the Agency to reserve proceeds of the Bonds for
loans for properties located within 1ts jurisdiction: and
WHEREAS, Agency program regulations require that the
govern1ng body approve by resolution the execution of the
Commitment Agreement,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION 1. There eX1sts in this locality a need for funding
to encourage the rehabilitation of the multifamily rental stock.
SECTION 2.
The C1ty Council does hereby approve and
authorizes the City Manager to execute the attached Commitment
Agreement by and between the City of Santa Monica and the
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California Housing Finance Agency for the reservation of funds
for mortgage loans for properties located within its jurisdiction.
SECTION 3. The City Clerk shall certify to the adoption of
this resolution and thenceforth and thereafter the same shall be
1n full force and effect.
APPROVED AS TO FORM:
~'"t '- '--, 0--
ROBERT M. MYERS
C1ty Attorney
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ADOPTED AND APPROVED THIS
13th
DAY
OF September
t 1983.
@4~J
MAYOR
I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION
NO. 6750(CCS)"_WAS DULY ADOPTED BY THE CITY COUNCIL OF THE
CITY OF SANTA MONICA PT A MEETING THEREOF HELD ON
September 13
t 1983 BY THE FOLLOWING COUNCIL VOTE:
AYES:
COUNCILMEMBERS:Conn, Jennings, Press, Zane and
Mayor Edwards
NOES:
COUNCILMEMBERS:Epsteln and Reed
ABSENT:
COUNCILMEMBERS:None
ABSTAIN:
COUNCILMEMBERS:None
ATTEST:
~ 7/J~
CITY CLERK
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CALIFO~~IA HOUSING FINANCE AGENCY
MULTIFAMILY REHABILITATION PROGRAM
COMMITMENT AGREEMENT
Th~s Comm1trnent Agreement, dated as of
1983 (date executed by the Agency), 15 made and entered ~nto
between (the "Locallty") and the
CalIforn~a HousIng FInance Agency (the "Agency").
WIT N E SSE T H:
WHEREAS, the Agency lntends to ~ssue ItS
MultIfamIly Rehabll~tatlon Revenue Bonds (Bank of Amerlca
Natlonal Trust and Savlngs ASSOcIatIon), 1983 Issue A (the
"Bonds") for the purpose of establIshIng a program to fInance
the rehabllltatlon and development of multlfamlly rental
houslng (the "Program");
WHEREAS, the proceeds of the Bonds wIll be used to
fund mortgage loans ("Loans") to be orlglnated by Bank of
Amerlca Natlonal Trust and Savlngs Assoclatlon (the "Lender")
for ellglble propertles in accordance with an Or~glnatlon and
Servlclng Agreement between the Agency and the Lender;
WHEREAS, the Locallty deslres the Agency and the
Lender to reserve proceeds of the Bonds for Loans for
propertles located Wlthln the ]urlsdlctlon of the Locality
and to be certlfled by the Locallty; and the Agency and the
Lender desire to reserve proceeds of the Bonds for and fund
such Loans pursuant to the terms and condItIons herelnafter
set forth; and
WHEREAS, the Treasurer of the State of CalIfornla
wlll act as trustee (the "Trustee") for the Agency under an
lndenture pursuant to whIch the Bonds w~ll be lssued (the
II Indenture" ) i
NOW, THEREFORE, In conslderatlon of the mutual
representatIons, promlses and covenants here~nafter set
forth, the part~es hereto agree as follows:
Sect~on 1. Commltment A~ount.
1.1 The Locallty agrees to reserve from the
Agency, subject to the terms and condltlons of thIS
Cornmltment Agreement, proceeds of the Bonds In the aggregate
prlnclpal amount (not less than $500,000) set forth
hereInafter or such lesser amount as the Agency may determIne
to be the approved COrom1 tment amount (the II Corron tment
Amount" ) .
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1.2 The Agency agrees to cause the Lender to
reserve the Comrn~tment Amount for Loans to qual~f~ed
mortgagors (the "Ownerstl) for the rehabllltatlon or
acqu~sltlon and rehab~l~tat~on of propertles located Wlth~n
the ]urlsdlctlon of and cert~f~ed by the Locallty (the
"Pro] ects") .
1.3 If at any t~me the Agency belleves that any
port~on of the Commltment Amount wlll not be used durlng the
Com~ltrnent Perlod (as herelnafter def~ned), the Agency may In
lts sole and absolute dlscretlon reduce the COMnltment &~ount
of the Locallty upon wrltten notlce to the Locallty and
Lender; provlded, however, that the Agency shall (a) fund all
Loans cO~ltted by the Lender durlng the Commltment Perlod
prlor to the effectlve date of such notice and (b) promptly
return to the Locallty a pro rata portlon of lts Commltment
Fee.
1.4 The Locallty may transfer all or a portlon of
lts Co~mltment Amount to another locallty wlthln the State of
Callfornla (and be relmbursed by such other agency for a pro
rata portlon of lts CO~~ltment Fee), provlded that (~) the
Agency approves such transfer (WhlCh approval shall not be
unreasonably wlthheld) and {ll} such transfer occurs durlng
the Commltment Perlod.
Sectlon 2
Commltment Period.
2.1 The Cornmltment Amount shall be reserved for
Loans origlnated by the Lender durlng a perlod of twelve (12)
months from the date of lssuance of the Bonds (the
"Colnm~ tment Perlod").
2.2 The Locallty may request an extenslon of the
Commltwent Perlod for up to SlX addltlonal months, WhlCh the
Agency may In ltS sole and absolute dlscretlon grant based
upon eVldence that Loans wlll be orlglnated during the perlod
of the extenSlon and that the extenslon wl1l not lmpalr the
securlty for the Bonds.
Sect~on 3. Comm::.tment Fee.
3.1 The Locallty shall furnlsh upon delivery of
th~s Agreement, cash or an uncond~t~onal, 1rrevocable letter
of credlt acceptable to the Agency In an amount equal to
three and one-half (3-1/2%) percent of the requested
Commltment Amount (the rrCommltment Fee"). If a letter of
credlt 15 provlded It wlll be converted to cash at the tlme
of sale of the Bonds.
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3.2 The Agency shall return the Commitment Fee to
the Local~ty and th~s Agreewent shall term~nate ~n the event
that the Bonds are not sold by November 30, 1983 or the
stated ~nterest rate on the Loans w~11 exceed 12 percent.
The Agency agrees to return a pro rata share of the
Comm~tment Fee to the Locallty ~n the event 1t reduces the
Commltment Amount 1n accordance wlth Sect10n 1.
3.3 The Co~~~tment Fee w~ll be used by the Agency
1n conJunct~on wlth the Bonds. The Locallty ~s not ent~tled
to any refund or relmbursement of ~ts Co~~tment Fee from the
Agency except 1n accordance w~th Sect10ns 1.3, 1.4 or 3.2
above. The Locallty may recover ~ts ComM1tment Fee from
appl1cants for Loans or from Owners, but only 1n accordance
wlth Sectlon 5.3.
Sectlon 4 Loan Terms and Condlt1ons. Loans wlll
be orlglnated by the Lender ln accordance wlth the terms and
condltlons set forth 1n the Agency's Program GUldellnes,
dated August 10, 1983, for 1ts Multlfamlly Rehabllltatlon
Program WhlCh Program GUldellnes are 1ncorporated hereln by
thlS reference.
Sect:r.on 5
ResponSlblllt1es of Local1ty.
5.1 The Locallty agrees to prov1de the Agency w1th
the following documents at the tlme of subm1SS10n of th1S
Agreement and hereby represents and warrants that the
lnformat1on provlded 1n such documents 1S true and correct as
of the date of thls Agreement:
(a) the Comm~tment Request, the form of wh~ch 1S
attached as Exh~b1t A, ldent1fy~ng prospect~ve ProJects, and
descr1b1ng the Local~ty's strategy to m1n1rn1ze d1splacementi
(b) any program gu1del~nes or related requlrements
of the Local~ty whlch wILL be applIcable to Loans; and
(c) eVIdence of the authorlty of the offlcers of
the Locality executlng thlS Agreement to do so.
5 2 DurIng the Commltment PerIod, the Local1ty
agrees to:
(a) reV1ew and complete Part IV of the Improvement
CertIflcate In the form attached hereto as Append~x E of the
Program GUIdelInes for each Loan prIor to approval of the
Loan by the Lender;
(b) comply WIth Its strategy to m~n1rn1ze
dIsplacement descr~bed In Its Comm~tment Request;
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(c) cooperate w~th the Lender ~n assurlng
efflclent processlng of Loans and provlde techn~cal
assistance to Owners where necessary;
(d) provlde the Agency a quarterly progress report
1n the form speclfled ln Appendlx F of the Program GUldel1nes
on Loans wlthln 1tS Jur~sdlctlon; and
(e) comply wlth the afflrmat~ve action guldellnes
set forth In Append1x C of the Program GU1del1nes.
5 3 The Locallty may:
(a) ut1llze other resources, such as Sect10n 8
cer~lflcates and Communlty Development Block Grant funds,
where approprlate to lnsure the feaslblllty of a ProJect.
The speclflc appllcatlon of these resources 1S at the
dlscre~lon of the LccalltYi
(b) prov1de the Owner a grant or a loan WhlCh 1S
subordlnate to the Loan from the Agency. Such subordlnate
loan may be a deferred payment loan due upon sale of the
property or a loan to be pa~d only from net 1ncome after
operatlng expenses of the ProJect and debt service on the
Goan. Other forms of loans or sUbS1dy requ1re the prlor
approval of the Agency and the Lenderi
(c) charge the Owner up to 3-1/2% of the Loan
amount to recover the Local1ty's Commltment Fee. Such charge
may be pa1d 1n cash at or pr10r to Loan closlng or may be a
subordlnate loan ~n accordance wlth S.3(b)i and
(d) establlsh addlt10nal restrlctlons on the
ProJect not lnconslstent wlth the Program GUldellnes or
Regulatory Agreement, 1nclud1ng rent levels and lncome Ilmlts.
Any Locallty actlons or requlrements affecting a ProJect
under thlS Sectlon 5.3 shall be promptly dlsclosed in wrlt1ng
to the Lender pr10r to the Lender's approval of the Loan.
5.4 After Loans are orlglnated, the Locallty shall:
(a) rece1ve a copy of and reVlew the Owner's
annual cert~f1catlon of compllance wlth the Regulatory
Agreement and, If reasonably necessary, obta1n addltlonal
lnformatlon to determlne the materlal accuracy of such
certlflcatlon.
(b) mall the Owner's certlflcatlon after reVlew by
the Locallty to the Agency by Aprll 1 of each yeari and
notlfy the Agency 1n wr1t~ng wlth1n 5 days lf the Locallty,
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at any t~me, ~s aware that the Owner ~s not ~n compl~ance
w1th the Regulatory Agreement.
Section 6. ResponSlbllltles of the Asency.
6.1 The Agency shall use ~ts best efforts to sell
the Bonds by November 30, 1983.
6.2 The Agency agrees to use lts best efforts to
provlde tec~~1cal asslstance to the Locallty upon request to
ensure that Loans are made In a tlmely manner and that the
Program GUldel~nes are lmplemented.
6.3 The Agency shall monltor the progress of both
the Locallty and the Lender at least quarterly and more
frequently as approprlate, lncludlng the Locallty's strategy
to mlnlIDlze displacement and afflrmatlve actlon efforts.
6.4 The Agency shall reVlew and approve or
dlsapprove all Loan requests requlr~ng any amount of
reflnanclng or for any ProJect contalnlng nonresldentlal
space or for afflrmatlve actlon and prevalling wage
compllance for any Loan wlth rehabllltatlon costs of $400,000
or more. Procedures for Loans wlth these condltlons wlll be
made available to the Locallty and the Lender and the form
for approval is lncluded ln the Improvement Cert1flcate wh~ch
is lncluded ln the Program GUldellnes - Appendlx E.
Section 7.
Inspectlon of Records.
The Agency shall have the rlght at any tlme and
from tlme to tlme durlng normal buslness hours, and upon flve
(5) days notice to the Locallty to examlne any records of the
Locallty pertalnlng to the Program. The Agency shall have
the right to require the Locallty to furnlsh such documents
as the Agency reasonably deems necessary In order to
determine co~pllance wlth the prov~slons of tnls CO~Tiltment
Agreement and the Program GUldel~nes.
Sectlon 8. Arnen~~ent~.
The prov1s~ons of th~s Agreement cannot be walved
or mod~fled unless such wa~ver or mod1f1cat1on 1S ln wr~t~ng
and slgned by all partles to this Commltment Agreement. The
Agency may amend the Program GU1dellnes at any t1me by
mall~ng to the Locallty changed pages thereof, such
amendments to be effectlve ten (10) bUSlness days after the
date of malllng thereof, prov~ded, however, that lf any such
amendment materlally adversely affects the lnterests of the
Locallty hereunder, such amendment may be made as to the
Locallty or.ly wlth the wr1tten consent of the Locallty,
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unless such amendment ~s necessary to comply w~th any
appl~cable law or to malntaln the exemptlon from lncorne taxes
of 1nterest on the Bonds, ln WhlCh case such consent shall
not be necessary.
Sect~on 9. Severabll1ty.
Inval~datlon of anyone of the provlslons of th~s
Agreement, by Judgment or court order, shall 1n no way affect
any other provlslons hereln contalned, WhlCh proVlslons shall
remaln 1n full force and effect.
Sect~on 10. Appllcable Law.
Th1S Agreement shall be governed by the laws of the
state of Callforn1a.
Sectlon 11. Asslgnment.
ThlS Agreement shall not be asslgnable by ~~e
Locallty, 1n whole or 1n part, wlthout the prlor wrltten
consent of the Agency, and 1n the event of any attempted
ass1gnrnent thereof wlthout such wTltten consent, the Agency
may, at lts opt1on, termlnate thlS Agreerrent as to lts
obl1gat1on to cause Lender to fund any add~tlonal Loans.
Seetlon 12. Successors.
Thls Agreement and all obllgatlons and rlghts
arls1ng hereunder shall blnd and lnure to the beneflt of the
Agency and the Locallty and thelr respectlve successors 1n
lnterest and permitted asslgns.
Sectlon 13. Counterparts.
ThlS Agreement may be executed ln one or more
counterparts, each of WhlCh shall be an orlglnal, but all
such counterparts shall together constltute but one and the
same agreement.
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IN WITNESS ~~EREOF, the part~es hereto have caused
th~s Agreement to be executed by the~r duly author~zed
officers as of the dates hereof.
REQUESTED COMMITMENT AMOUNT: $
least $500,000).
(at
[Name of Local~ty]
By
(S~gnature of Authorlzed
Offlcer)
(Pr~nted or typewr~tten name of
Authorized Off~cer)
, 1983
APPROVED COMMITMENT AMOUNT: $
CALIFORNIA HOUSING FINANCE AGENCY
By
(Tltle)
, 1983
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Loca11ty
PROJECT INFO. SHEET
(Use separate sheet for each pr1or1ty ProJect)
SUMMARY
Property Address:
C1ty:
NeJ.ghborhood
No. Un1ts. Now:
After Rehab:
Type of Loan. Rehab:
Acq'n-Rehab:
Program Loan Amount: $
Term:
years
PubllC Resources: Sec. 8 Mod Rehab:
unlts
Sec. 8 EX1stlng:
unlts
CDBG. $
$
o the r ~
OWNER
Name:
Type of Organlzatlon:
ExperJ.ence: OwnershJ.p:
(_ un1ts)
Management:
(
un1ts)
Status: Current Owner:
Buyer:
RENTS
Now
After Rehab.
Affordable Units Other
# Unlts Rent # Unlts Rent
Total
#' UnHs
# Unlts Rent (or Vac)
StudlO
IBR
2BR
3BR
$
$
$
$
s
s
s
s
$
S
$
S
Total
$-
$
$
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PROJECT COSTS
Total:
$
$
$
$
$
Uses:
Rehab
Acqu~s~t~on
Reflnanclng*
Other
($_ per unlt)
Sources: Program Loan $
CDBG $
Cash EqUlty $
Other $
Total: $
PROJECTED CASH FLOWS (~~UAL)
Gross Rents
- Vacancles (at __%)
Net Rents
Taxes
Utllltles
Management
Other Oper. Exp.
Sub-Total
Net Operatlng Income
Debt SerVl.ce
Program Loan
EXlstl.ng 1st Mortgage
(If applJ..cable)
Other:
(
(
(
)
)
yrs at 11%)
Sub-total
Net Pre-Tax Cash Flow
Net Operatlng Income as %
of Debt SerVlce
%
*NOTE:
Reflnanclng POllCY In Program GUldellnes
slgnlflcantly restrlcts reflnanclng.
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Locallty
TEFRA HEARING LIST
Instructlons: Each locallty must llSt any and all proJects
WhlCh may recelve bond proceeds from the Multlfamlly
Rehabllltatlon Program on thlS Ilst. No subsequent
sustltutlons wlll be allowed. In no way does lncluslon on
thls 11st guarantee flnanclng Use addltlonal sheets as
approprlate.
ProJect Name/Address
City
Name of Owner
Estllllated
Loan Amount
No. of
Unlts
10