San Francisco County Municipal Code Art. I Residential Mortgage Revenue Bond

This Article may be cited as the Residential Mortgage Revenue Bond Law. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The Board of Supervisors hereby finds and declares that it is necessary, essential, a public purpose and a municipal affair for the City and County to make, purchase and contract for the making of below-market-interest-rate loans for the purpose of providing mortgage financing for the acquisition, construction, or rehabilitation of housing in the City and County to encourage the availability of adequate housing and home finance for persons and families, including those of low or moderate income, and to develop viable communities by providing decent housing and an enhanced living environment. The City and County can promote such interests pursuant to this Article without adversely affecting areas outside the City and County and without conflicting with efforts by the State of California to solve problems of statewide concern. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

This Article is full authority for the issuance of bonds by the City and County for the purposes specified herein. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

This Article shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of bonds under the provisions of this Article need not comply with the requirements of any other law applicable to the issuance of bonds. The purposes authorized hereby may be effectuated and bonds may be issued for any such purposes under this Article notwithstanding that any other law may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, restrictions, limitations or other provisions contained in any other law. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Unless the context otherwise requires, the terms defined in this Article shall have the following meanings: (a) "Board of Supervisors" means the Board of Supervisors of the City and County of San Francisco. (b) "Bonds" means any bonds, notes, certificates, debentures or other obligations issued by the City and County pursuant to this Article and payable as provided in this Article. (c) "City" means the City and County of San Francisco. (d) "Cost" means the total of all costs incurred by or on behalf of a participating party to carry out all works and undertakings and to obtain all rights and powers necessary or incident to the acquisition, construction, or rehabilitation of a residence. "Cost" may include all costs of issuance of bonds for such purposes and costs for construction undertaken by a participating party as its own contractor. (e) "Participating party" means any individual, association, corporation, partnership or other entity which is approved by the City and County to undertake the financing of the costs of a residence pursuant to this Article. (f) "Residence" means real property improved with a residential structure. "Residence" includes condominium and cooperative dwelling units, real property improved with single-family residential structures, and real property improved with multi-family residential structures. (g) "Revenues" means amounts received by the City and County as payments of principal, interest, and all other charges with respect to a loan under this Article; as payments under a lease, sublease or sale agreement with respect to a residence; as proceeds received by the City and County from mortgage, hazard or other insurance on or with respect to such a loan (or any property securing such loan), lease, sublease or sale agreement, all other rents, charges, fees, income and receipts derived by the City and County from the financing of a residence under this Article; any amounts received by the City and County as investment earnings on moneys deposited in any fund securing bonds and such other legally available moneys as the Board of Supervisors may, in its discretion, lawfully designate as revenues, resolution, or any indenture authorized by such resolution to be entered into by the City and County. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

None of the Revenues, as defined by this Article, shall be taken into account in any manner in determining the City and County's compliance with Article XIIIB of the California Constitution. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000) TITLE 2 - - FINANCING RESIDENCES

The City and County may use the proceeds of bonds to make, purchase, or otherwise contract for the making of, a mortgage or other secured or unsecured loan, upon such terms and conditions as the City and County shall deem proper, to any participating party for the costs of a residence. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may use the proceeds of bonds, or other moneys provided by or on behalf of a participating party, to acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip and lease as lessee a residence solely for the purpose of selling or leasing as lessor such residence to such participating party, and may contract with such participating party to undertake on behalf of the City and County to construct, enlarge, remodel, renovate, alter, improve, furnish and equip such residence. The City and County may sell or lease, upon such terms and conditions as the City and County shall deem proper, to a participating party any residence owned by the City and County under this Article, including a residence conveyed to the City and County in connection with a financing under this Article but not being financed hereunder. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may charge participating parties application, commitment, financing and other fees, in order to recover all administrative and other costs and expenses incurred in the exercise of the powers and duties conferred by this Article. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may obtain, or, aid in obtaining, from any department or agency of the United States or of the State of California or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, or any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this Article; and may accept payment in such manner and form as provided therein in the event of default by a participating party, and may assign any such insurance or guarantee as security for bonds. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may fix rents, payments, fees, charges and interest rates for financing under this Article and may agree to revise from time to time such rents, payments, fees, charges and interest rates to reflect changes in interest rates on bonds, losses due to defaults or changes in other expenses related to this Article, including City and County administrative expenses. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may hold deeds of trust or mortgages or security interests in personal property as security for loans under this Article and may pledge or assign the same as security for repayment of bonds. Such deeds of trust, mortgages or security interests, or any other interest of the City and County in any residence, may be assigned to, and held on behalf of the City and County by any bank or trust company appointed to act as trustee by the City and County in any resolution or indenture providing for the issuance of bonds. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may contract for such engineering, architectural, financial, accounting, legal or other professional services as may be necessary in the judgment of the City and County for the purposes of this Article. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County shall require that contractors and subcontractors engaged in the construction of facilities financed under this Article shall provide equal opportunity for employment, without discrimination as to race, marital status, sex, color, religion, national origin or ancestry. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Except as specifically provided in this Article, the acquisition, construction, or rehabilitation of a residence financed under this Article shall not be subject to any requirements relating to buildings, works or improvements owned or operated by the City and County, and any requirement of public competitive bidding or other procedural restriction imposed on the award of contracts for acquisition or construction of a City and County building, work or improvement or to the lease, sublease, sale or other disposition of City and County property shall not be applicable to any action taken under this Article. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The Mayor of the City and County, or a person designated by the Mayor, shall prepare and submit to the Board of Supervisors for approval, rules or regulations, or both, permitted under this Article. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

In addition to all other powers specifically granted by this Article, the City and County may do all things necessary or convenient to carry out the purposes of this Article, provided, however, that the City and County shall not have the power to operate a residence financed under this Article as a business, except temporarily in the case of a default by a participating party. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000) TITLE 3 - - BONDS

The City and County may, from time to time, issue bonds for any of the purposes specified in Sections 142(d) and 143 of the Internal Revenue Code of 1986. Bonds shall be negotiable instruments for all purposes, subject only to the provisions of such bonds for registration. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Every issue of bonds shall be a limited obligation of the City and County payable from all or any specified part of the revenues and the moneys and assets authorized in this Article to be pledged or assigned to secure payment of bonds. Such revenues, moneys or assets shall be the sole source of repayment of such issue of bonds. Bonds issued under the provisions of this Article shall not be deemed to constitute a debt or liability of the City and County or a pledge of the faith and credit of the City and County but shall be payable solely from specified revenues, moneys, and assets. The issuance of bonds shall not directly, indirectly, or contingently obligate the City and County to levy or pledge any form of taxation or to make any appropriation for their payment. All bonds shall contain on the face thereof a statement to the following effect: Neither the faith and credit nor the taxing power of the City and County is pledged to the payment of the principal of or premium or interest on this bond. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

In determining the amount of bonds to be issued, the City and County may include all costs of the issuance of such bonds, reserve funds and capitalized bond interest. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Bonds may be issued as serial bonds, term bonds, installment bonds or pass-through certificates or any combination thereof. Bonds shall be authorized by resolution of the Board of Supervisors and shall bear such date or dates; mature at such time or times; bear interest at such fixed or variable rate or rates; be payable at such time or times; be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, be subject to such terms of redemption and have such other terms and conditions as such resolution, or any indenture authorized by such resolution to be entered into by tile City and County, may provide. Bonds may be sold at either public or private sale and for such prices as the City and County shall determine. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Any resolution authorizing any bonds or any issue of bonds, or any indenture authorized by such resolution to be entered into by the City and County, may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of such bonds: (a) The terms, conditions and form of such bonds and the interest and principal to be paid thereon; (b) Limitations on the uses and purposes to which the proceeds of sale of such bonds may be applied, and the pledge or assignment of such proceeds to secure the payment of such bonds; (c) Limitations on the issuance of additional parity bonds, the terms upon which additional parity bonds may be issued and secured, and the refunding of outstanding bonds; (d) The setting aside of reserves, sinking funds and other funds and the regulation and disposition thereof; (e) The pledge or assignment of all or any part of the revenues and of any other moneys or assets legally available therefor and the use and disposition of such revenues, moneys and assets;

(f) Limitation on the use of revenues for operating, administration or other expenses of the City and County; (g) Specification of the acts or omissions to act which shall constitute a default in the duties of the City and County to holders of such bonds, and providing the rights and remedies of such holders in the event of default, including any limitations on the right of action by individual bondholders; (h) The appointment of a corporate trustee to act on behalf of the City and County and the holders of its bonds, the pledge or assignment of loans, deeds of trust, mortgages, leases, subleases, sale contracts and any other contracts to such trustee, and the rights of such trustee; (i) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of such bonds the holders of which must consent thereto, and the manner in which such consent may be given; and (j) Any other provisions which the Board of Supervisors may deem reasonable and proper for the purposes of this Article and the security of the bondholders. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Any pledge of revenues or other moneys or assets pursuant to the provisions of this Article shall be valid and binding from the time such pledge is made. Revenues, moneys and assets so pledged and thereafter received by the City and County shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the City and County, irrespective of whether such parties have notice thereof. Neither the resolution nor any indenture by which a pledge is created need be filed or recorded except in the records of the City and County. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Neither the members of the Board of Supervisors, the officers or employees of the City and County, nor any person executing any bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County shall have the power out of any funds available therefor to purchase its bonds. The City and County may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agreements with the bondholders. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The City and County may issue bonds under this Article for the purpose of refunding any bonds then outstanding. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000; amended by Ord. 212-00, File No. 001331, App. 9/1/2000)

The validity of the authorization and issuance of any bonds is not dependent on and shall not be affected in any way by any proceedings taken by the City and County for the approval of any financing or the entering into of any agreement, or by the failure to provide

financing or enter into any agreement, for which bonds are authorized to be issued under this Article. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000) TITLE 4 - - SUPPLEMENTAL PROVISIONS

This Article, being necessary for the welfare of the City and County and its inhabitants, shall be liberally construed to effect its purposes. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Any omission of any officer or the City and County in proceedings under this Article or any other defect in the proceedings shall not invalidate such proceedings or the bonds issued pursuant to this Article. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

To the extent that the provisions of this Article are inconsistent with the provisions of any general statute or special act or parts thereof the provisions of this Article shall be deemed controlling. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

If any provision of this Article or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision or application of this Article which can be given effect without the invalid provision or application; and to this end the provisions of this Article are declared to be severable. The Board of Supervisors hereby declares that it would have adopted and passed this Article and each section, subsection, sentence, clause, phrase and word hereof, irrespective of the fact that any one or more of the other sections, subsections, sentences, clauses, phrases or words hereof be declared invalid or unconstitutional. (Added by Ord. 12-00, File No. 992117, App. 2/11/2000)