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HomeMy WebLinkAbout2000-292V D D iTERLOCAL AGREEMENT / Q a/,9 e) Vo Y/lnrn I' ,1 v 1! THIS AGREEMENT made and entered into this 3"' day of October, 2000, 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, Part W of Chapter 159 of the 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 WHERIC,AS, the Escambia Authority by resolution duly adopted on June 13, 2000 (the "Enabling Resolution"). authorized a plan of finance (the "Pian"] for the issuance from time to time of not exceeding $400,000,000 Single Family Mortgage Revenue Bonds (Multi -County Program): and WHEREAS, the Escambia Authority has indicated that it expects to issue its Single Family Mortgage Revenue Bonds, Series 2001 (Multi -County Program) (the "Escambia Bonds") in a principal amount not exceeding $100,000,000, 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 qualified mortgage 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 WIIEREAS, the limitations upon available portions of the private activity volume cagy prevent the separate issuance of 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 Indian River County, as well as certain other counties which may also participate in joint bond programs; and 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 2001 (the "Authorization Period") for the purp:rse of issuing qualified 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 hiCL-08/01/Ka 92ry 09/08/W-G440-Wt[rt%1W iii 40 M WHEREAS, unless such economies are realized, the issuance of qualified mortgage bonds would be less economical, resulting in higher mortgage costs to qualified mortgagors; and WHEREAS, because the restrictions attendant to qualified mortgage bonds under the Internal Revenue Code limit 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 Indian River County to approve the issuance of 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 October 3, 2000 (the "County Resolution"): and VMEREAS, 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 bonds in one or more series from time to time, as qualified mortgage bonds based on the Allocation Amount or as taxable Bonds which require no bond volume allocation, to (1) mare 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 (collectively, the "Program"). 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 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 of finance for the purpose of financing the Program. including, among other things, financing of qualilying single family mortgages in the Participating County, and the Escambla 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 Bands shall be allocated and applied to the funding or refinancing of obligations, the proceeds of KICL-08/01100 Rvv-00 /08 /00.6440 • h id t Yr li i C3 i 40 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 pairs 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 Escambla 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 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 County. It is agreed that the initial regional Allocation Amount for the Escambia Bonds in Indian );fiver County and other Participating Counties located within the same band 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. All lendable proceeds of the Escambia Bonds attributable to the mortgage loan demand in Indian River County shall be reserved for use in originating Mortgage Loans in Indian River County for an initial period of one hundred and twenty (120) days or until July 1, 2001 whichever is later. The issuance and administration costs and expenses related to the Escambia Bonds issued to finance the housing program and administration of such program shall be paid from proceeds of the Escambia Bonds and revenues generated from the housing 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 prograrn 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 (H) 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 Escaml3ia. Authority may from time to time approve and establish such maximum price and family income amounts at the maximum levels MCL-OB/01100 3 rTrv-©9/D8/D 1-fi14 0, 11WrWa provider] 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 Escammbla 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 fronds issued pursuant to the terns hereof remain outstanding, or during any period in which the proceeds of such Escarribia 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 (it) 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 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 loom to the Participating County or its respective members, officials, employees and agents for payment of the Escambia Bonds and interest or premium thereon. MC[.-aalo loo Fmrr-0�/+PSilIN) G�i•io s#i[3rlvEa IN WITNESS WHEREOF, the parties to this Agreement have Caused their naives to be affixed hereto by the groper officers thereof as of the la day of October 2600. .F....,DA sE rf.. '4930 By: LL0,Z] Its: secretary ATTEST: By: Its +Ci J.K. 8�d7a DuuTy cuEatt (SEAL) MCI.08/01 X00-C-140.1iu1rivia 5 ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY By' 1W. airman INDIAN RIVER COUNTY, FLORIDA By: t a - Sts: Chairman Fran B. Adams BCC Approved: October 3, 2000