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County Administrator's Report 10. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Authorizing the Escambia County Housing Finance Authority to Issue $150,000,000 Single Family Mortgage Revenue Bonds (Multi-County Program) – Elbert Jones Jr., Executive Director
That the Board adopt and authorize the Chairman to sign a Resolution which approves a plan of finance for low-interest loans to first-time home buyers, and authorizes the Escambia County Housing Finance Authority (the “Authority”) (i) to issue Single Family Mortgage Revenue Bonds from time to time, including temporary bond anticipation notes in connection therewith, in an aggregate principal amount not to exceed $150,000,000 (collectively, the “Bonds”) and (ii) to operate the TBA Program as more fully described herein.
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| BACKGROUND: |
Since the creation of the Authority by the Board in 1980, the Authority has operated a number of programs to take advantage of federal tax programs that provide low-interest financing for housing. The proposed program described in the Resolution provides affordable mortgage financing for first time homebuyers of low, moderate and median incomes in Escambia County (the “County”) and other participating counties in Florida (the “Program”). The Program offers below market interest rates, or other optional interest rates which assist the homebuyer with down payments or closing costs.
The Authority has heretofore approved a single family loan program under which mortgage loans are originated pursuant to a Program Invitation and Parameters dated as of July 1, 2012, as amended and supplemented, and a Master Mortgage Origination Agreement dated as of July 1, 2012, as amended and supplemented (the “TBA Program”), and in order to enhance the efficiency of the TBA Program, the Authority authorized the interim purchase (directly or pursuant to a warehousing arrangement) of Mortgage-Backed Securities backed by mortgage loans originated under such program and the subsequent sale thereof by the Authority into the TBA market, and, following the issuance of a series of Bonds, the purchase by the trustee under a trust indenture for such series of Bonds of any then available Mortgage-Backed Securities.
On June 4, 2013, the Authority conducted a TEFRA hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, to take public comment on the plan of finance for the Program, including its intention to issue and sell the Bonds from time to time in an aggregate principal amount not to exceed $150,000,000, including temporary bond anticipation notes in connection therewith.
Adoption of the Resolution is the only action required by the Board. The Bonds will be issued by the Authority. Bonds issued pursuant to the plan of finance will never constitute an indebtedness, liability, general or moral obligation, or pledge of the faith, credit or taxing power of the State of Florida, the Authority, Escambia County, or any other political subdivision of the State of Florida within the meaning of any charter, constitutional or statutory provisions or limitations.
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| BUDGETARY IMPACT: |
| The Authority does not receive funds from the County, and no funds of the County are expended in connection with the Program or the Bonds. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| The County’s bond counsel, Richard I. Lott of McGuireWoods LLP, also serves as bond counsel to the Authority, and the County’s disclosure counsel, Mark T. Mustian of Nabors, Giblin & Nickerson, P.A., also serves as disclosure counsel to the Authority. Mr. Lott has reviewed the Resolution and will also review the documents for each transaction issued under the Plan of Finance on behalf of the Authority and the County to insure that neither the Authority nor the County has any liability or obligation under the Bonds. Mr. Mustian will review the documents on behalf of the Authority and the County to insure federal and state law disclosure requirements are satisfied to assure that the County’s interest are protected and liability minimized. |
| PERSONNEL: |
N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Single Family Mortgage Revenue Bond Program provides first-time homebuyers with housing at affordable rates, thus encouraging home ownership. The Program further serves a public purpose by advancing economic prosperity, health and general welfare of the State of Florida, the County and its people. |
| IMPLEMENTATION/COORDINATION: |
| N/A |
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