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County Administrator's Report 15. 1.
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| BCC Regular Meeting |
Discussion |
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| RECOMMENDATION: |
Recommendation Concerning Adoption of a Resolution Approving a Plan of Finance for Low Interest Loans to First-Time Home Buyers and Authorizing the Escambia County Housing Finance Authority to Issue Single Family Mortgage Revenue Bonds (Multi-County Program) – Karyn Norton, Executive Director, Bryant Miller Olive P.A.
That the Board adopt a Resolution which approves a plan of finance (the “Plan of Finance”) for low-interest loans to first-time home buyers and authorizes the Escambia County Housing Finance Authority (the "Authority") to issue from time to time and in one or more series Single Family Mortgage Revenue Bonds (Multi-County Program), including temporary bond anticipation notes in connection therewith, in an aggregate principal amount not to exceed $150,000,000 (collectively, the “Bonds”) and to operate the TBA Program as more fully described in the Resolution. |
| 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 (the “TBA 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, and in order to enhance the efficiency of the TBA Program, the Authority authorized the interim purchase of Mortgage-Backed Securities backed by Mortgage Loans originated under the TBA Program, directly by the Authority and/or a warehousing arrangement, pending the sale thereof by the Authority into the TBA Market, or in conjunction with or following the issuance of a series of Bonds, the purchase thereof by the trustee under a trust indenture for such series of Bonds.
On July 7, 2014, 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 Bryant Miller Olive P.A., 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 interests are protected and liability minimized. |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The 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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