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County Administrator's Report 12. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning the Adoption of a Resolution Approving a Plan of Finance for Low Interest Loans to First-time Homebuyers and Authorizing the Escambia County Housing Finance Authority (the “Authority”) to Issue Not Exceeding $225,000,000 Single Family Housing Revenue Bonds (Multi-County Program) - Patricia D. Lott, Executive Director of the Escambia County Housing Finance Authority
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 homebuyers, and authorizes the Escambia County Housing Authority to issue Single Family Housing Revenue Bonds from time to time, in an aggregate principal amount not to exceed $225,000,000 (collectively, the “Bonds”). |
| 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 affordable interest rates and assistance with down payments or closing costs for homebuyers.
Pursuant to the Program, the Authority works with its lenders to originate mortgage loans for first time homebuyers pursuant to a Program Invitation and Parameters and a Master Mortgage Origination Agreement, and, following the issuance of a series of Bonds, the purchase by the trustee under a trust indenture for such series of Bonds of Mortgage-Backed Securities consisting of such mortgage loans.
In December, 2017, the Authority authorized the issuance of not exceeding $225,000,000 of Bonds to finance mortgage loans under the Program. The Authority held a TEFRA hearing, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, and requested approval of the Bonds and the Plan of Finance by the Board of County Commissioners. Approval was granted by the Board pursuant to its adoption of Resolution No. R2017-143 on December 18, 2017.
Since more than a year has passed since the Board’s approval of the Bonds, on January 23, 2019, the Authority conducted an additional TEFRA hearing and is now requesting a new Board approval of the Bonds and the Plan of Finance for the Program, including the Authority’s intention to issue and sell the Bonds from time to time in an aggregate principal amount not to exceed $225,000,000.
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. |
| 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, Bryant Miller Olive P.A., also serves as bond counsel and disclosure counsel to the Authority. JoLinda Herring, of Bryant Miller Olive, has reviewed the Resolution on behalf of the County. Bryant Miller Olive will also review the documents for each transaction issued under the Plan of Finance on behalf of the Authority and the County to ensure that neither the Authority nor the County has any liability or obligation under the Bonds. |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Single Family Housing 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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