2002 AGN MAR 05 I07 - Laserfiche WebLink

Browse Search

Item #7 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the City Council Meeting of February 5, 2001 TO: Honorable Mayor and Members of the City Council FROM: Candace Cassel, Program Manage 0) SUBJECT: Consideration and Approval of Resolution Authorizing Changes to Cooperative Agreement with the County of San Bernardino and Execution of the Replacement Cooperative Agreement for the County's Single Family Home Mortgage Revenue Bond Program. Resolution. DATE: January 9, 2002 Background Under Federal and State Law, cities and counties have the authority to issue bonds that provide a public benefit, which can include providing first time homebuyer programs that enable low- to moderate -income households to acquire their own home with a minimum down payment and at an affordable monthly payment. Under these laws, eligible cities and counties may form joint powers authorities, which allow a single entity to issue bonds to fund and administer homeownership programs that serve income -eligible households in all participating member cities, as well as in all unincorporated areas of the participating County. Mortgage funding generated in this manner poses no risk to the issuing or participating entities. The proceeds of the monthly payments made by the homebuyers are used to repay the bond investors the principal amount of the funds generated through the sale of bonds, plus accrued interest on the bonds. The County has been issuing mortgage revenue bonds under its Single Family Home Mortgage Revenue Bond (SFHMRB) Program since 1980. All incorporated cities within the boundaries of the County have participated with the county in its SFHMRB Program since it was implemented in 1980. The Cooperative Agreements allow for the assignment of the cities' share of applicable SFHMRB allocations to the County. All of the incorporated cities/towns within the County of San Bernardino have executed successor Cooperative Agreements and/or extensions to existing cooperative agreements on an annual basis. In 1995, all cities within San Bernardino County entered into updated Cooperative Agreements that could be extended annually. During the past two years, the County has implemented additional homeownership programs, which are now available countywide based on the terms of the existing Cooperative Agreements that were executed in 1995, and which has been extended and expanded through subsequent amendments. The new programs covered under the existing Cooperative Agreement and extensions include a Lease Purchase Program administered by the California Cities Home Ownership Authority (CCHOA) and the Extra Credit Teacher Home Purchase Program, 6:\Sha RDA\Meetings\2002 Meetings\RDA City Counciffebmary, 5, 2002\County Home Loans City Council.doc