Santa Rosa Municipal Code Ch. 4-52 Multifamily Housing Revenue Bond Law

This chapter may be cited as the City of Santa Rosa multifamily housing revenue bond law.

(Prior code § 12-1001; Ord. 2254 § 1, 1982)

The Council finds and declares that it is necessary, essential, a public purpose and a municipal affair for the City to finance residential construction within the City to encourage the development of adequate multifamily housing for persons and families of low or moderate income, and to develop viable communities by providing decent housing, enhanced living environments, and increased economic opportunities for persons and families of low or moderate income.

(Prior code § 12-1002; Ord. 2254 § 1, 1982)

Unless the context otherwise requires, the terms defined in this section shall have the following meanings when used in this chapter:

"Bonds"

means any bonds, notes, certificates, debentures or other obligations issued by the City pursuant to this chapter and payable exclusively from revenues as in this chapter defined and from any other funds specified in this chapter upon which such obligations may be made a charge and from which they are payable.

"City"

means the City of Santa Rosa.

"Council"

means the City Council of the City of Santa Rosa.

"Low or moderate income"

shall have the meaning prescribed for such term in Section 103(b) of the Internal Revenue Code of 1954, as amended, and any regulations thereunder. The City may adopt federal or state estimates of area median income for the City or for the standard metropolitan statistical area which includes the City, or federal or state formulas for the adjustment of area median income for family size, for purposes of determining low or moderate income.

"Participating party"

means any person, company, corporation, partnership, firm, local agency, political subdivision of the state or other entity or group of entities eligible to receive a loan pursuant to the terms of this chapter. No elective officer of the City shall be eligible to be a participating party.

"Program loan"

means any loan made pursuant to this chapter for any purpose specified in Section 4-52.040.

"Qualified mortgage lender"

means any mortgage lender authorized by the City to aid the City pursuant to this chapter. A qualified mortgage lender may be a state or national bank, federal-chartered or state-chartered savings and loan association , trust company, mortgage banker or other financial institution.

"Residence"

means real property improved or to be improved with a multifamily housing development, which development may contain commercial space to the extent consistent with the purposes of this chapter.

"Revenues"

means amounts received as repayment of principal, interest, and all other charges received by the City with respect to program loans, any proceeds received by the City from mortgage, hazard or other insurance on or with respect to loans, all other income and receipts derived by the City from the making or purchasing of program loans, any amounts received by the City as investment earnings on moneys deposited in a reserve fund or any similar fund securing bonds, and such other legally available moneys as the Council may, in its discretion, make available therefor.

(Prior code § 12-1003; Ord. 2254 § 1, 1982)

The City may make loans to qualified mortgage lenders and may make, purchase from qualified mortgage lenders, and otherwise contract with qualified mortgage lenders for the making of, loans, upon such terms and conditions as the City shall deem proper, to any participating parties for the purpose of financing the acquisition or construction by any participating party of a residence, the occupancy of at least 20 percent of the dwelling units in which will be limited to persons and families of low or moderate income for at least such period of time as may be required by Section 103(b) of the Internal Revenue Code of 1954, as amended, and any regulations thereunder.

(Prior code §12-1011; Ord. 2254 § 1, 1982)

The City may fix fees, charges and interest rates for program loans and may from time to time as appropriate revise such fees, charges and interest rates to reflect changes in interest rates on the City's bonds, losses due to defaults, changes in program loan servicing charges or changes in other expenses related to the program loans, including City administrative expenses.

(Prior code § 12-1012; Ord. 2254 § 1, 1982)

The City may fix the character, terms and conditions upon which program loans may be made. Program loans made to participating parties by qualified mortgage lenders shall be of such character and on such terms and conditions as shall be established by the City.

(Prior code § 12-1013; Ord. 2254 § 1, 1982)

The City may fix fees for servicing of program loans, or may itself undertake, or may contract to pay any person, partnership, association, corporation or public agency for such servicing.

(Prior code § 12-1014; Ord. 2254 § 1, 1982)

The City may hold deeds of trust or mortgages as security for program loans and may pledge or assign the same as security for repayment of bonds. Such deeds of trust or mortgages may be assigned to, and held on behalf of the City by, any bank or trust company appointed to act as trustee by the City in any resolution or indenture providing for issuance of bonds.

(Prior code § 12-1015; Ord. 2254 § 1, 1982)

The City may employ such engineering, architectural, financial, accounting, legal or other services as may be necessary in the judgment of the City for the purposes of this chapter.

(Prior code § 12-1016; Ord. 2254 § 1, 1982)

The City may acquire by deed, purchase, lease, contract, gift, devise or otherwise any real or personal property, structures, rights, rights-of-way, franchises, easements and other interest in lands necessary or convenient for the purposes of this chapter, upon such terms and conditions as it deems advisable, and may lease, sell or dispose of the same in such manner as may be necessary or desirable to carry out the purposes of this chapter, upon such terms and conditions as may be established by the City.

(Prior code § 12-1017; Ord. 2254 § 1, 1982)

In addition to all other powers specifically granted by this chapter, the City may do all things necessary or convenient to carry out the purposes of this chapter.

(Prior code § 12-1018; Ord. 2254 § 1, 1982)

(A) The City may, from time to time, issue bonds for any of the purposes specified in Section 4-52.040. Bonds shall be negotiable instruments for all purposes, subject only to the provisions of such bonds for registration.

(B) Every issue of bonds shall be a limited obligation of the City payable from all or any specified part of the revenues and the moneys and assets authorized in this chapter 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 chapter shall not be deemed to constitute a debt or liability of the City or a pledge of the faith and credit of the City but shall be payable solely from specified revenues, money and assets. The issuance of bonds shall not directly, indirectly or contingently obligate the City to levy or pledge any form of taxation or to make any appropriation for their payment.

(C) 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 is pledged to the payment of the principal of, or premium or interest on this bond.

(Prior code § 12-1021; Ord. 2254 § 1, 1982)

In determining the amount of bonds to be issued, the City may include all costs of the issuance of such bonds, reserve funds and capitalized bond interest.

(Prior code § 12-1022; Ord. 2254 § 1, 1982)

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 Council 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 the City may provide. Bonds may be sold at either a public or private sale and for such prices as the City shall determine. Pending preparation of definitive bonds, the City may issue temporary bonds, which shall be exchanged for such definitive bonds when prepared.

(Prior code § 12-1023; Ord. 2254 § 1, 1982)

Any resolution authorizing any bonds or any issue of bonds, or any indenture authorized by such resolution to be entered into by the City, 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 and sinking funds and the regulation and disposition thereof;

(E) The pledge or assignment of all or any part of the revenues and the use and disposition thereof, subject to such agreements with the holders of bonds as may then be outstanding;

(F) Limitation on the use of revenues for expenditures for operating, administration or other expenses of the City;

(G) Specification of the acts or omissions to act which shall constitute a default in the duties of the City 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 the holders of its bonds, the pledge or assignment of program loans, deeds of trust, mortgages and any other contracts to such trustee, and the rights of such trustee;

(I) The mortgaging of any residence and the site thereof for the purpose of securing the holders of the bonds;

(J) The procedure, if any, by which the terms of any contract with holders of bonds 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

(K) Any other provisions which the Council may deem reasonable and proper for the purposes of this chapter and the security of the holders of the bonds.

(Prior code § 12-1024; Ord. 2254 § 1, 1982)

Any pledge of revenues or other moneys or assets pursuant to the provisions of this chapter shall be valid and binding from the time such pledge is made. Revenues, money and assets so pledged and thereafter received by the City 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, 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.

(Prior code §12-1025; Ord. 2254 § 1, 1982)

Neither the members of the Council, the officers or employees of the City, 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.

(Prior code § 12-1026; Ord. 2254 § 1, 1982)

The City shall have the power out of any funds available therefor to purchase its bonds. The City may hold, pledge, cancel or resell such bonds, subject to and in accordance with agreements with the holders of bonds.

(Prior code § 12-1027; Ord. 2254 § 1, 1982)

Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and any trustee appointed pursuant to any resolution authorizing the issuance of bonds, except to the extent the rights thereof may be restricted by such resolution or any indenture authorized thereby to be entered into by the City, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect or enforce any and all rights specified in law or in such resolution or indenture, and may enforce and compel the performance of all duties required by this chapter or by such resolution or indenture to be performed by the City or by any officer, employee or agent thereof, including the fixing, charging and collecting of rates, fees, interest and charges authorized and required by the provisions of such resolution or indenture to be fixed, charged and collected.

(Prior code § 12-1028; Ord. 2254 § 1, 1982)

The City may issue bonds for the purpose of refunding any bonds then outstanding including the payment of any redemption premiums thereof and any interest accrued or to accrue to the earliest or any subsequent date or dates of redemption, purchase or maturity of such bonds, and, if deemed advisable by the City, for the additional purposes specified in Section 4-52.040. All bonds issued pursuant to this section shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.

(Prior code §12-1029; Ord. 2254 § 1, 1982)

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 for the making of any program loan, or by the failure to make any program loan, for which bonds are authorized to be issued under this chapter.

(Prior code § 12-1030; Ord. 2254 § 1, 1982)

This chapter, being necessary for the welfare of the City and its inhabitants, shall be liberally construed to effect its purposes.

(Prior code § 12-1031; Ord. 2254 § 1, 1982)

If the jurisdiction of the Council to order the proposed act is not affected, any omission of any officer of the City in proceedings under this chapter or any other defect in the proceedings shall not invalidate such proceedings or the bonds issued pursuant to this chapter.

(Prior code § 12-1032; Ord. 2254 § 1, 1982)

This chapter is full authority for the issuance of bonds by the City for the purposes specified herein.

(Prior code § 12-1033; Ord. 2254 § 1, 1982)

This chapter 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 chapter 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 chapter 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.

(Prior code § 12-1034; Ord. 2254 § 1, 1982)

To the extent that the provisions of this chapter are inconsistent with the provisions of any general statute or special act or parts thereof, the provisions of this chapter shall be deemed controlling. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision or application of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. The Council declares that it would have adopted and passed this chapter and each article, section, subsection, sentence, clause, phrase or word hereof, irrespective of the fact that any one or more of the other articles, sections, subsections, sentences, clauses, phrases or words hereof are declared invalid or unconstitutional.

(Prior code § 12-1035; Ord. 2254 § 1, 1982)