HomeMy WebLinkAboutS19-05 (2) ORDINANCE No. S 19-05
AN ORDINANCE authorizing the execution and delivery of an
Intergovernmental Cooperation Agreement and certain documents in
connection therewith; and related matters.
WHEREAS, pursuant to Section 6(a) of Article VII of the 1970 Constitution of the State of
Illinois, the City of Elgin, Cook and Kane Counties, Illinois, is a municipality and a home rule unit
of government duly organized and validly existing under the Constitution and the laws of the State
of Illinois (the "Municipality"); and
WHEREAS, pursuant to the Constitution and the laws of the State of Illinois, and particularly
Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois, the Municipality is
authorized to issue its revenue bonds in order to aid in providing an adequate supply of safe, decent
and sanitary residential housing for low and moderate income persons and families within the
Municipality, which such persons and families can afford, which constitutes a valid public purpose
for the issuance of revenue bonds by the Municipality; and
WHEREAS, pursuant to Section 10 of Article VII of the 1970 Constitution of the State of
Illinois and the Intergovernmental Cooperation Act (5 Illinois Compiled Statutes 2002, 220/1 et seq.,
as supplemented and amended), public agencies may exercise and enjoy with any other public
agency in the State of Illinois any power, privilege or authority which may be exercised by such
public agency individually, and, accordingly, it is now determined that it is necessary, desirable and
in the public interest for the Municipality to enter into an Intergovernmental Cooperation Agreement
(the "Cooperation Agreement") dated as of April 1, 2005, by and among the Municipality and
certain other units of local government named therein (the "Units"), to provide for the joint issuance
of such revenue bonds to aid in providing an adequate supply of residential housing in such Units
(the "Program"); and
WHEREAS, to provide for the Program, the City of Aurora, Kane, DuPage, Will and Kendall
Counties, Illinois (the "Issuer"), proposes to issue, sell and deliver its Collateralized Single Family
Mortgage Revenue Bonds, Series 2005-A in an aggregate principal amount not to exceed
$300,000,000 (the "Bonds") in one or more series to obtain funds to finance the acquisition of
mortgage-backed securities (the "GNMA Securities") of the Government National Mortgage
Association ("GNMA"), evidencing a guarantee by GNMA of timely payment, the acquisition of
mortgage-backed securities (the "FNMA Securities") of the Federal National Mortgage Association
("FNMA"), evidencing a guarantee by FNMA of timely payment, and the acquisition of mortgage-
backed securities (the "FHLMC Securities") of the Federal Home Loan Mortgage Corporation
("FHLMC"), evidencing a guarantee by FHLMC of timely payment, of monthly principal of and
interest on certain qualified mortgage loans under the Program (the "Mortgage Loans"), on behalf
of the Municipality and the other Units all under and in accordance with the Constitution and the
laws of the State of Illinois; and
WHEREAS,the Municipality has now determined that it is necessary, desirable and in the
public interest for the Issuer to issue revenue bonds to provide an adequate of safe, decent and
sanitary residential housing for low and moderate income persons and families within the
Municipality, which such persons and families can afford; and
WHEREAS, a notice of combined public hearing with respect to the plan of finance of the
costs of the Program through the issuance of the Bonds has been published in The Courier News, a
newspaper of general circulation in the Municipality, pursuant to Section 147(f) of the Internal
Revenue Code of 1986, as amended (the "Code"), on March 18, 2005, and appropriately designated
hearing officers of the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, the City
of Champaign, Champaign County, Illinois, the City of East Moline, Rock Island County, Illinois,
and the City of Collinsville, Madison and St. Clair Counties, Illinois, have conducted said combined
public hearing on April 8, 2005; and
WHEREAS, a form of the Cooperation Agreement has been presented to and is before this
meeting;
Now, THEREFORE, Be It Ordained by the City Council of the City of Elgin, Cook and Kane
Counties, Illinois, as follows:
Section 1. That it is the finding and declaration of the City Council of the Municipality that
the issuance of the Bonds by the Issuer is advantageous to the Municipality, as set forth in the
preamble to this authorizing ordinance, and therefore serves a valid public purpose; that this
authorizing ordinance is adopted pursuant to the Constitution and the laws of the State of Illinois,
and more particularly Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois,
Section 10 of Article VII of the 1970 Constitution of the State of Illinois and the Intergovernmental
Cooperation Act; and that, by the adoption of this authorizing ordinance, the City Council of the
Municipality hereby approves the issuance of the Bonds by the Issuer for the purposes as provided
in the preamble hereto, the text hereof and the notice of public hearing referred to in the preamble
hereto, which notice is hereby incorporated herein by reference, and the conduct of the combined
public hearing referred to in the preamble hereto, which public approval shall satisfy the provisions
of Section 147(f) of the Code.
Section 2. That the form, terms and provisions of the proposed Cooperation Agreement be,
and they are hereby, in all respects approved; that the Mayor of the Municipality be, and is hereby,
authorized, empowered and directed to execute, and the City Clerk of the Municipality be, and is
hereby, authorized, empowered and directed to attest and to affix the official seal of the Municipality
to, the Cooperation Agreement in the name and on behalf of the Municipality, and thereupon to
cause the Cooperation Agreement to be delivered to the other Units; that the Cooperation Agreement
is to be in substantially the form presented to and before this meeting and hereby approved or with
such changes therein as shall be approved by the officer of the Municipality executing the
Cooperation Agreement, his or her execution thereof to constitute conclusive evidence of his or her
approval of any and all changes or revisions therein from the form of Cooperation Agreement before
this meeting; that from and after the execution and delivery of the Cooperation Agreement, the
officers, officials, agents and employees of the Municipality are hereby authorized, empowered and
directed to do all such acts and things and to execute all such documents as may be necessary to
carry out and comply with the provisions of the Cooperation Agreement as executed; and that the
Cooperation Agreement shall constitute and is hereby made a part of this authorizing ordinance, and
a copy of the Cooperation Agreement shall be placed in the official records of the Municipality, and
shall be available for public inspection at the principal office of the Municipality.
Section 3. That the Mayor, the City Clerk and the proper officers, officials, agents and
employees of the Municipality are hereby authorized, empowered and directed to do all such acts
and things and to execute all such documents and certificates as may be necessary to carry out and
comply with the provisions of the Cooperation Agreement and to further the purposes and intent of
this authorizing ordinance, including the preamble to this authorizing ordinance.
Section 4. That all acts of the officers, officials, agents and employees of the Municipality
heretofore or hereafter taken, which are in conformity with the purposes and intent of this
authorizing ordinance and in furtherance of the issuance and sale of the Bonds, be, and the same
hereby are, in all respects, ratified, confirmed and approved, including without limitation the
publication of the notice of public hearing.
Section 5. That notwithstanding anything to the contrary in the Cooperation Agreement,
the Municipality is not transferring any portion of its 2005 Unified Volume Cap to the Issuer or to
the issuance of the Bonds.
Section 6. That after the Cooperation Agreement is executed by the Municipality, this
authorizing ordinance shall be and remain irrepealable until the Bonds and the interest thereon shall
have been fully paid, cancelled and discharged.
Section 7. That the provisions of this authorizing ordinance are hereby declared to be
separable, and if any section, phrase or provision of this authorizing ordinance shall for any reason
be declared to be invalid, such declaration shall not affect the validity of the remainder of the
sections,phrases and provisions of this authorizing ordinance.
Section 8. That all ordinances, resolutions and orders, or parts thereof, in conflict with the
provisions of this authorizing ordinance are, to the extent of such conflict, hereby superseded; and
that this authorizing ordinance shall be in full force and effect upon its adoption and approval as
provided by law.
Council Member_Juan Figueroa moved, and Council Member
John Walters seconded the motion, that said ordinance as presented
and read by the City Clerk be adopted.
After a full discussion thereof, the Mayor directed that the roll be called for a
vote upon the motion to adopt said ordinance, as read.
Upon the roll being called, the following members of the City Council voted:
AYE:
Juan Figueroa, Robert Gilliam, David Kaptain, Brenda Rodgers, Thomas Sandor, John Walters,
and Mayor Ed Schock
NAY: None
ABSENT OR NOT VOTING: None
Whereupon the Mayor declared the motion carried and said ordinance adopted, and hereforth
did approve and sign the same in open meeting, and did direct the City Clerk to record the same in
full in the records of the City Council of the City of Elgin, Cook and Kane Counties, Illinois.
***
(Other Business)
Upon motion duly made and seconded, the meeting
was adjourned.
[SEAL]
City Clerk
I I
STATE OF ILLINOIS )
) SS.
COUNTIES OF COOK AND KANE )
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the
City of Elgin, Cook and Kane Counties, Illinois, and as such officer I am the keeper of the records
and files of the City Council of said City.
I do further certify that the foregoing constitutes a full, true and complete transcript of the
minutes of the legally convened meeting of said City Council of said City held on the 22nd day of
June, 2005, insofar as same related to the adoption of an ordinance entitled:
AN ORDINANCE authorizing the execution and delivery of an
Intergovernmental Cooperation Agreement and certain documents in
connection therewith; and related matters.
a true, correct and complete copy of which said ordinance as adopted at the same meeting appears in
the foregoing transcript of the minutes of said meeting.
I do hereby further certify that the deliberations of the City Council of said City on the
adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was
taken openly; that said meeting was called and held at a specified time and place convenient to the
public; that notice of said meeting was duly given to all the news media requesting such notice; that
an agenda for said meeting was posted at the location where said meeting was held and at the
principal office of the City Council of said City on a day which was not a Saturday, Sunday or legal
holiday for Illinois municipalities at least forty-eight (48) hours in advance of the holding of said
meeting; that said agenda contained a separate specific item concerning said ordinance; and that said
meeting was called and held in strict accordance with the provisions of the Open Meetings Act of
the State of Illinois, as amended, and with the provisions of the Illinois Municipal Code, as
amended, and that said City Council has complied with all of the applicable provisions of said Act
and said Code and its procedural rules in the adoption of said ordinance.
IN WITNESS WHEREOF, I have hereunto affixed my official signature and the seal of said
City, this day of , 2005.
City Clerk, City of Elgin, Cook and
Kane Counties, Illinois
[SEAL]
• ,
Presented, passed, approved and recorded by the City Council of the City of Elgin, Cook and
Kane Counties, Illinois, this 22nd day of June, 2005.
Ed Schock, Mayor
Presented: June 22, 2005
Passed: June 22, 2005
Vote: Yeas: 7 Nays: 0
Recorded: June 23, 2005
Published:
Attest:
fi(ic.-e-Gczys,_
Dolonna Mecum, City Cler
OFE -
`` Elgin
Agenda Item No.
$ City of
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June 17, 2005 1 u
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TO: Mayor and Members of the City Council ECONOMIC GROWTH
FROM: Olufemi Folarin, City Manager
Jan Ward, Senior Planner
SUBJECT: City of Elgin's Participation in the ASSIST Bond Program for First-time
Homebuyers Assistance
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to approve the City's participation in the ASSIST Bond Program.
RECOMMENDATION
It is recommended that the City Council approve the City's participation in the ASSIST Bond
Program.
BACKGROUND
The ASSIST Bond Program is a statewide program that provides first-time homebuyers with closing
cost and down-payment assistance, up to 3.00% of the mortgage amount. In addition to the
homebuyer assistance,the bank that originates the mortgage receives 1.25%to cover loan processing
fees. This program is administered by area banks [including Amcore and Chase (Bank One)] and
requires no financial commitment by the City of Elgin. Tax-exempt bonds are issued by the City of
Aurora. The bonds are sold at a price greater than their face value and the proceeds are used to
provide the down-payment/closing cost assistance. Bonds are secured by loans on the properties
purchased through ASSIST.
ASSIST expands the City's efforts to promote home ownership. By offering this program, in
addition to our existing First-time Homebuyer Down Payment Assistance Program (funded with
Community Development Block Grant and, more recently, Riverboat funds), Elgin residents will
have several options and opportunities for financial assistance needed to purchase a home.
Homebuyer qualifications for ASSIST are similar to those required for the First-time Homebuyers
Down Payment Assistance Program. Participants must be first-time homebuyers(have not owned a
residence in three years), meet established income guidelines, and reside in the home as their
Assist Bond Program
June 17, 2005
Page 2
principal residence. However,the income limits of the ASSIST Program are higher than the Section
8 limits used for the City's program. Therefore, assistance will be available to a larger segment of
Elgin's population.
The ASSIST program structure also varies from the City's Homebuyer Assistance Program. This
program has:
• Housing purchase price guidelines.
• Loan limits as established by FHA and VA guidelines.
• A Recapture Provision if you sell the home within nine years,exceed the established income
limit during the loan period and earn a profit on the sale of the property.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
(I ii FINANCIAL IMPACT
In previous years,the City of Elgin allocated $1 million of its unused private activity bond volume
cap to participate in the ASSIST Bond Program. However,no financial contribution or commitment
is required from the City for the 2005 program.
The bonds are not a City debt or paid from any City funds. The payment of the principal and interest
on the bonds will be made from the repayment of ASSIST mortgage loans. The funds will be
di tributed throughout the region on a first come first served basis.
EGAL IMPACT
An ordinance will be required to allow for the City's participation in the program.
ALTERNATIVES
The City Council can disapprove the City's participation in the ASSIST Bond Program.
Respectfully submitted for Council consideration.
Jw/jw
Law Offices of
• CHAPMAN ANT) CUTLER LLP
Theodore S.Chapman 111 West Monroe Street, Chicago, Illinois 60603-4080 San Francisco
1877-1943 Telephone(312)845-3000 595 Market Street
Henry E.Cutler Facsimile (312)701-2361 San Francisco,California 94105
1879-1959 chapman.com (415)541-0500
Salt Lake City
50 South Main Street
July 7,2005 Salt Lake City,Utah 84144
(801)533-0066
VIA UNITED PARCEL SERVICE
Loni Mecum
City Clerk
150 Dexter Court
Elgin,Illinois 60120
Re: City of Aurora,Kane,DuPage,Will and Kendall Counties,Illinois
Collateralized Single Family Mortgage Revenue Bonds,
Series 2005-A
Dear Loni:
Enclosed please find signature pages for the Intergovernmental Cooperation Agreement
adopted by the City Council on June 22, 2005 in connection with the above-referenced bond
issue.
We received one complete signed copy of the Intergovernmental Cooperation
Agreement, along with two additional signature pages. Unfortunately, the formatting was
thrown off on the signature page and said signature page will have to be re-executed. For the
transcripts, please coordinate the execution of the enclosed signature pages on behalf of the
Mayor and yourself as City Clerk and return three signed and sealed original copies of the
signature page.
Once signed and sealed, please forward to my attention via overnight delivery. I have
enclosed for your convenience a prepaid Federal Express envelope. Should you have any
questions,please do not hesitate to contact me.
1-0 �' _(1- J Very truly yours,
o -
* _ „ ^ �� �1 �L�1„ CHAPMAN AND CUTLER LLP
aro B L
y
Ed Aviles
EA:els
Enclosure XavtA‘.
1897868.01.02 -1 -'---- tiJ
2126837
/ 5/os`
Law Offices of
CHAPMAN AND CUTLER LLP
Theodore S.Chapman 111 West Monroe Street, Chicago, Illinois 60603-4080 San Francisco
1877-1943 Telephone(312)845-3000 595 Market Street
Henry E.Cutler Facsimile (312)701-2361 San Francisco,California 94105
1879-1959 chapman.com (415)541-0500
Salt Lake City
50 South Main Street
July 7, 2005 Salt Lake City Utah 84144
(801)533-0066
VIA UNITED PARCEL SERVICE
Loni Mecum
City Clerk
150 Dexter Court
Elgin, Illinois 60120
Re: City of Aurora,Kane,DuPage,Will and Kendall Counties,Illinois
Collateralized Single Family Mortgage Revenue Bonds,
Series 2005-A
Dear Loni:
Enclosed please find signature pages for the Intergovernmental Cooperation Agreement
adopted by the City Council on June 22, 2005 in connection with the above-referenced bond
issue.
We received one complete signed copy of the Intergovernmental Cooperation
Agreement, along with two additional signature pages. Unfortunately, the formatting was
thrown off on the signature page and said signature page will have to be re-executed. For the
transcripts, please coordinate the execution of the enclosed signature pages on behalf of the
Mayor and yourself as City Clerk and return three signed and sealed original copies of the
signature page.
Once signed and sealed, please forward to my attention via overnight delivery. I have
enclosed for your convenience a prepaid Federal Express envelope. Should you have any
questions,please do not hesitate to contact me.
Very truly yours,
CHAPMAN AND CUTLER LLP
By
Ed Aviles
EA:els
Enclosure
1897868.01.02
2126837