Loading...
HomeMy WebLinkAbout2006-092 -��- 0Z i RESOLUTION NO. 2006-092 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY TO OPERATE WITHIN THE BOUNDARIES OF INDIAN RIVER COUNTY, FLORIDA, TO FINANCE QUALIFYING SINGLE FAMILY MORTGAGE LOANS ON BEHALF OF INDIAN RIVER COUNTY, FLORIDA; AUTHORIZING THE BOARD OF COUNTY COMMISSIONERS TO ENTER INTO AGREEMENTS WITH THE j ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY AND TO EXECUTE AND DELIVER CERTAIN DOCUMENTS AND INSTRUMENTS IN CONNECTION THEREWITH; APPROVING A FORM OF INTERLOCAL AGREEMENT; APPROVING THE ISSUANCE BY THE ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY OF NOT EXCEEDING $150,000,000 SINGLE FAMILY MORTGAGE REVENUE BONDS, PURSUANT TO SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; PROVIDING THAT SUCH BONDS CONSTITUTE LIMITED, SPECIAL OBLIGATIONS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 159, Part IV, Florida Statutes, (the "Act") authorized counties to create housing finance authorities to exercise powers of the Act within their boundaries or outside their boundaries with the consent of the governing body of the territory outside their area of operation; and WHEREAS, the Board of County Commissioners of Escambia County, Florida, (the "Escambia Board") on May 29, 1980, enacted Ordinance No. 80-12 and on March 20, 2003, the Escambia Board enacted Ordinance 2003-8 (collectively, the "Ordinance"), creating the Escambia County Housing Finance Authority (the "Authority") and authorized the Authority to exercise all powers under the Act subject to approval by the Escambia Board as a condition precedent to the effectiveness of the certain actions of the Authority; and WHEREAS, there is no housing finance authority currently operating in Indian River County, Florida("Indian River County"); and WHEREAS, pursuant to the Act, the Board of County Commissioners of Indian River County, Florida, (the "Indian River Board") has found a shortage of affordable housing and capital for investment therein and a need for a housing finance authority to function in Indian River County; and WHEREAS, it is not practicable at this time under existing Florida and Federal laws and regulations for a single local agency to issue its mortgage revenue bonds for the purpose of implementing a single family housing program, although the shortage of such single family housing and capital for investment therein is continuing in Indian River County; and MCPS-05/23/06-6602-Countv Docs-Indian River BCC Reso-v I WHEREAS, the Authority by a resolution duly adopted on April 11, 2006 (the "Enabling Resolution"), as amended and supplemented, authorized a plan of finance (the "Plan") for the issuance from time to time of not exceeding $400,000,000 Single Family Mortgage Revenue Bonds(Multi-County Program) (the 'Program"); and WHEREAS, the Authority has indicated that it expects to issue its Single Family Mortgage Revenue Bonds, initially designated as "(Multi-County Program), Series 2006" (the "Escambia Bonds" or the 'Bonds") in a principal amount not exceeding $150,000,000, exclusive of any amounts required for refunding purposes;and WHEREAS, the Indian River Board desires to authorize certain actions as necessary in connection with participation in the Program and the issuance, sale, authentication and delivery of the Bonds by entering into an Interlocal Agreement, dated as of June 15, 2006 (the "Interlocal Agreement"); and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (hereinafter referred to as the "Code") requires public approval of certain private activity bonds and the Plan therefor by an applicable elected representative or governmental unit following a public hearing and the Indian River Board constitutes an applicable elected representative or governmental unit;and WHEREAS, pursuant to Section 147(f) of the Code a public hearing was scheduled before the Indian River Board on behalf of the Indian River Board, the Escambia Board and the Authority for June 20, 2006, at 9:00 a.m. or as soon thereafter as practicable, and notice of such hearing was given in the form required by the Code by publication more than fourteen (14) days prior to such hearing; and WHEREAS, the Indian River Board, has on June 20, 2006, held the public hearing and provided at such hearing reasonable opportunity for all interested individuals to express their views,both orally and in writing, on the issuance of the Bonds; and WHEREAS, the Indian River Board diligently and conscientiously considered all comments and concerns expressed by such individuals; and WHEREAS, the Indian River Board desires to express its approval of the action to be taken pursuant to the Enabling Resolution and the Act, and as required by Section 147(f) of the Code; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA: MCPS-05/23/06-6602-County Docs-Indian River BCC Reso-v1 2 Section 1. Because of the continuing shortage of affordable single family housing and capital for investment therein in Indian River County and the continuing impediments to a bond issue to alleviate such shortages as to single family housing, it is hereby determined that the Indian River Board consents to the Authority exercising its powers to issue the Bonds and to implement a Plan to provide capital from sources of funds available to the Authority, including but not limited to a portion of the proceeds of the Bonds, and proceeds of obligations refunded by the Bonds, to establish a program to finance Mortgage Loans for single family housing within the statutory boundaries of Indian River County ("Mortgage Loans"); provided, that the Authority and Indian River County first enter into a written agreement setting forth the powers, duties and limitations of the Authority as they pertain to the use of said Bond proceeds within Indian River County and payment of the issuance costs for such Bonds. Section 2. In furtherance of the purposes set forth in Section 1 hereof the Chairman or Vice-Chairman and Clerk or Deputy Clerk of the Indian River Board are hereby authorized to execute such consents, intergovernmental agreements, applications, instruments or other documents as shall be required to implement participation by the Indian River Board of such Program and to provide for payment of Indian River County's proportionate share of the costs thereof, including but not limited to the costs of issuance of such Bonds, all as shall be approved by counsel to Indian River County. Section 3. The Interlocal Agreement, in substantially the form attached hereto as Exhibit A, and made a part hereof, between Indian River County and the Authority is hereby approved. The officers of Indian River County are hereby authorized to enter into such Interlocal Agreement on behalf of Indian River County with such changes not inconsistent herewith as the officers executing same may approve, such execution and delivery to be conclusive evidence of such approval. The appropriate officers of Indian River County are hereby further authorized to execute and deliver such other documents and instruments as may be necessary to implement such Interlocal Agreement, including, without limitation, application for up to the maximum available private activity bond volume allocations pursuant to the Act, for the purposes set forth in the Interlocal Agreement. Section 4. The Indian River Board hereby approves, within the meaning of Section 147(f) of the Code, the Authority's Plan and the issuance by the Authority from time to time of not exceeding $150,000,000 Single Family Mortgage Revenue Bonds, initially designated as "(Multi-County Program), Series 2006, for funding the Authority's Program for Mortgage Loans, and such other action to be taken pursuant to the Enabling Resolution or the Act. Section 5. The principal of and premium, if any, and interest on the Bonds and all payments required under the proposed financing agreements, including the Interlocal Agreement, shall be payable solely by the Authority from the proceeds derived by the Authority under the proposed financing agreements, and Indian River County shall never be required to (i) levy ad valorem taxes on any property within its territorial limits to pay the MCPS-05/23/06-6602-County Docs-Indian River BCC Reso-v 1 3 principal of and premium, if any, and interest on the Bonds or to make any other payments provided for under the proposed financing agreements, or (ii) pay the same from any funds of Indian River County whatsoever. Adoption of this Resolution does not authorize or commit the expenditure of any funds of Indian River County to pay the costs of issuance of such Bonds. The Bonds are limited, special obligations and will not constitute a debt of the State of Florida, Indian River County, Escambia County, or other participating Counties or the Authority or other participating Housing Finance Authorities, but will be payable solely from payments made from the revenues generated from the Program. Section 6. All resolutions or parts thereof of the Indian River Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. MCPS-05/23/06-6602-County Dass-Indian River BCC Reso-v 1 4 Section 7. This Resolution shall take effect immediately upon its adoption. Duly adopted in the regular session this 20th day of June, 2006. INDIAN RIVER COUNTY, FLORIDA B (SEAL) Its: Chairman Board of County Commissions Arthur R. Neuberger ATTEST: 'AK BARTON By: It 4 Board of County Commissioners ApPli VED AS TO FORM ArIDGAL S Y M RIAN LL " ;ASSISTANT COUNTY ATTORNEY MCPS-05/23/06-6602-County Docs-Indian River BCC Reso-v 1 5 Exhibit A FORM OF INTERLOCAL AGREEMENT MCPS-05/23/06-6602-County Docs-Indian River BCC Reso-v 1 f I INTERLOCAL AGREEMENT THIS AGREEMENT made and entered into this 20th day of June, 2006, by and between the ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY, a public body corporate and politic organized and existing under the laws of the State of Florida (hereinafter referred to as the "Escambia Authority"), and INDIAN RIVER COUNTY, FLORIDA, a political subdivision of the State of Florida (hereinafter referred to as the "Participating County"); WITNESSETH: WHEREAS, Chapter 159, Part IV, Florida Statutes, (the "Act") authorizes the creation of housing finance authorities within the State of Florida (the "State") for the purpose of issuing revenue bonds to assist in relieving the shortage of housing available at prices or rentals which many persons and families can afford; and WHEREAS, the Escambia Authority by a resolution duly adopted on April 11, 2006 (the "Enabling Resolution"), as amended and supplemented, authorized a plan of finance (the "Plan") for the issuance from time to time of not exceeding $400,000,000 Single Family Mortgage Revenue Bonds (Multi-County Program) (the 'Program"); and WHEREAS, the Escambia Authority has indicated that it expects to issue its Single Family Mortgage Revenue Bonds, initially designated as "(Multi-County Program), Series 2006" (the "Escambia Bonds") in a principal amount not exceeding $150,000,000, exclusive of any amounts required for refunding purposes; and WHEREAS, pursuant to Sections 143 and 146 of the Internal Revenue Code of 1986, as amended (the "Code"), the amount of mortgage revenue bonds which may be issued in each year is limited by a private activity volume cap which has been established for such purpose within the State; and WHEREAS, the limitations upon available portions of the private activity volume cap prevents the separate issuance of mortgage revenue bonds for each county from being feasibly and economically accomplished; and WHEREAS, the Escambia Authority has authorized a sufficient amount of Escambia Bonds to fund, refund or refinance outstanding obligations, the proceeds of which will be used to finance a portion of the anticipated demand during the proposed Origination Period for qualifying single family mortgages ("Mortgage Loans") of both Escambia County and the Participating County, as well as certain other counties which may also participate in joint bond programs; and MCPS-105/23/06-6602-County Docs-Indian River ILA-v1 1 i i' WHEREAS, the aggregation of mortgage loan demand and the securing of the related amount of the cumulative State private activity volume cap (the "Allocation Amount") granted by the State through June 1, 2007 (the "Authorization Period") for the purpose of issuing mortgage revenue bonds to finance qualifying single family residences to be occupied primarily by first-time home buyers will result in a wider allocation of fixed expenses and certain other economies of scale; and WHEREAS, unless such economies are realized, the issuance of mortgage revenue bonds would be less economical, resulting in higher mortgage costs to qualified mortgagors; and WHEREAS, because the restrictions attendant to mortgage revenue bonds under the Code limits the availability of mortgage funds for many eligible persons (within the meaning of the Act), the Escambia Authority may also issue taxable mortgage revenue bonds to increase the amount available for Mortgage Loans and to reduce or ameliorate such restrictions upon eligible persons; and WHEREAS, Sections 159.603 and 159.604, Florida Statutes, authorize the Participating County to approve the issuance of mortgage revenue bonds through the Escambia Authority to alleviate the shortage of affordable housing within the Participating County, which approval has been granted by a resolution of the Board of County Commissioners of the Participating County adopted on June 20, 2006(the "County Resolution"); and WHEREAS, Sections 163.01, 159.608 and 125.01, Florida Statutes, and the County Resolution authorize this Agreement by conferring the authority to exercise or contract by agreement upon the Escambia Authority to exercise those powers which are common to it and the other parties hereto and to include the Participating County within the Escambia Authority's area of operation pursuant to Florida Statutes, Section 159.603(1) for the purpose of issuing mortgage revenue bonds in one or more series from time to time, as mortgage revenue bonds based on the Allocation Amount or as taxable mortgage revenue bonds which require no bond volume allocation, to (i) make available funds to finance qualifying single family housing development located within the Participating County in accordance herewith, (ii) establish the reserves therefor, and(iii) pay the costs of issuance thereof. NOW THEREFORE, the parties agree as follows: Section 1. Allocation Amount; Substitution of Bonds. The Participating County hereby authorizes the Escambia Authority to issue, reissue, remarket or refund Single Family Mortgage Revenue Bonds (the "Bonds") from time to time based on the available Allocation Amount through the Authorization Period, or based upon the need for Mortgage Loans funded in whole or in part from taxable Bonds which require no bond MCPS-105/23/06-6602-County Docs-Indian River[LA-vl 2 volume allocation, for the purpose of financing the Program and making funds available for qualifying single family housing developments in the Participating County to the full extent permitted by the Act. Any Escambia Bonds issued, reissued, remarketed or refunded for such purposes in the Participating County are hereby deemed to be in full substitution for an equivalent principal amount of the Participating County's bonds that could have been issued for such purpose. The Participating County hereby authorizes the Escambia Authority to utilize the Participating County's Allocation Amount on behalf of the Participating County as part of its Plan for the purpose of financing the Program, including, among other things, financing of qualifying single family mortgages in the Participating County, and the Escambia Authority is hereby designated as the bond issuing authority for the Participating County during the Authorization Period with respect to all Allocation Amounts. The proceeds of the Escambia Bonds shall be allocated and applied to the funding or refinancing of obligations, the proceeds of which will be used for the funding of Mortgage Loans within the various Participating Counties and for reserves and the payment of costs of issuing the Escambia Bonds, all in accordance with final Program documents approved by the Escambia Authority. All revenues generated by bonds issued pursuant to this Agreement and by the use of the proceeds thereof, will be administered by the Escambia Authority, or its agents, and all payments due from such revenues shall be paid by the Escambia Authority, or its agents, without further action by the Participating County. Section 2. Administration. The Escambia Authority hereby assumes responsibility for administering this Agreement by and through its employees, agents and officers; provided, however, that the Participating County retains and reserves its right and obligation to require reasonable reporting on programs designed for and operated within the Participating County, including, but not limited to, reasonably available mortgagor or profile data. The Escambia Authority and its agents shall provide the Participating County with such reports as may be necessary to account for funds generated by this Agreement. The Escambia Authority shall have full authority and responsibility to negotiate, define, validate, market, sell, issue, reissue deliver, refund or remarket its Escambia Bonds in amounts based upon mortgage loan demand and maximum available Allocation Amounts, to the extent permitted by law to finance the Program for qualifying single family housing developments in the Participating County; and to take such other action as may be necessary or convenient to accomplish such purpose. Each Participating County may apply for the full Allocation Amount available for such Participating County. It is agreed that the initial regional Allocation Amount for the Escambia Bonds in Indian River County and other Participating Counties located within the same bond volume allocation region under Section 159.804, Florida Statutes, shall be allocated ratably between Indian River County and such other Participating Counties within such region based upon lender demand. MCPS-105/23/06-6602-County Docs-Indian River ILA-v1 3 The issuance and administration costs and expenses related to the Escambia Bonds issued to finance the Program and administration of such Program shall be paid from proceeds of the Escambia Bonds and revenues generated from the Program or other sources available to the Escambia Authority. Section 3. Program Parameters. (A) Upon request of the Escambia Authority, the Participating County shall, to the extent permitted by law, (i) approve, establish, and update, from time to time as necessary, upon the request of the Escambia Authority, such Program parameters including, but not limited to, maximum housing price and maximum adjusted family income for eligible borrowers, as may be required for any bonds issued by the Escambia Authority pursuant to this Agreement and (ii) approve the allocation of Mortgage Loan moneys for each lending institution offering to originate Mortgage Loans within the Participating County. Unless otherwise notified in writing by the Participating County, the Escambia Authority may from time to time approve and establish such maximum price and family income amounts at the maximum levels provided pursuant to the Code or the Act without further action of the Participating County. (B) The fees and expenses of the Participating County shall be paid from the proceeds of the Program in the manner and to the extent mutually agreed upon by the officials of the Participating County and the Escambia Authority at or prior to issuance of the Escambia Bonds. Section 4. Term. This Agreement will remain in full force and effect from the date of its execution until such time as it is terminated by any party upon ten (10) days written notice to the other party hereto. Notwithstanding the foregoing, it is agreed that this Agreement may not be terminated by the Participating County during the Authorization Period, or by any party during any period that the Escambia Bonds issued pursuant to the terms hereof remain outstanding, or during any period in which the proceeds of such Escambia Bonds (or investments acquired through such proceeds) are still in the possession of the Escambia Authority, or its agents, pending distribution, unless either (i) the parties to this Agreement mutually agree in writing to the terms of such termination or (ii) such termination, by its terms, only applies prospectively to the authorization to issue Escambia Bonds for which no Allocation Amount has been obtained or used by the Escambia Authority and for which no purchase contract has been entered into. It is further agreed that in the event of termination the parties to this Agreement will provide continuing cooperation to each other in fulfilling the obligations associated with the issuance of Bonds pursuant to this Agreement. Section 5. Indemnity. MCPS-105/23/06-6602-Countv Docs-Indian River ILA-v1 4 To the full extent permitted by law, the Escambia Authority agrees to hold the Participating County harmless from any and all liability for repayment of principal of and interest or penalty on the Escambia Bonds issued pursuant to this Agreement, and the members, officials, employees and agents of the Participating County harmless from any and all liability in connection with the approval rendered pursuant to Sections 159.603 and 159.604, Florida Statutes. The Escambia Authority agrees that any offering, circular or official statement approved by and used in marketing the Escambia Bonds will include a statement to the effect that Bond owners may not look to the Participating County or its respective members, officials, employees and agents for payment of the Escambia Bonds and interest or premium thereon. MCPS-105/23/06-6602-County Docs-Indian River ILA-vl 5 t IN WITNESS WHEREOF, the.parties to this Agreement have caused their names to be affixed hereto by the proper officers thereof as of the 20th day of June, 2006. ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY (SEAL) ATTEST: By: Robert Ward, Chairman By: Sandra J. Ward, Secretary INDIAN RIVER COUNTY, FLORIDA B Q Its: Chairman (SEAL) Arthur R. .Neuberger, Chairman PPROVED: ATTEST: C my Adm Istrator -JX BARTON APPROVED AS TO FORM ;IB3 EGAL FFICI NCY By: MARIA L ANT COUNTY ATTORNEY MCPS-105/23/06-6602-County Docs-Indian River ILA-vl . 6