HomeMy WebLinkAbout1980 Ordinance No. 056•
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ORDINANCE NO. 56
SERIES.OF 1980
BY AUTHORITY
COUNCIL BILL NO. 65
INTRODUCED BY COUNCIL
MEMBER HIGDAY
AN ORDINANC E SETTING FORTH THE PARAMETERS OF THE UPCOMING
SINGLE FAMI LY MORTGAGE REVENUE BOND PROGRAM OF THE CITY
OF ENGLEWOO D, COLORADO.
WHEREAS, the City Council of the City of Englewood,
Colorado·, pursuant to the Charter and the Municipal Code of
the City and the laws of the State of Colorado, is desirous
of setting forth its parameters for the upcoming single
family mortgage revenue bond program of the City of Englewood;
and
WHEREAS, such parameters have been established on
the basis of discussions with feasibility study personnel,
Wlderwriters , the City Planning Group, and current market
conditions.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF ENGLEWOOD, COLORADO:
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Section 1 . Parameters. The parameters for the upcoming
single family mortgage revenue bond program of the City of
Englewood sha ll be as follows:
(a) Origination.Fee -Not to. exceed 2%;
(b) Serv i c i ng Fee -3/8 of 1% annual servicing fee;
(c) Program Participation Fee -Not to exceed 2%
whi ch may be paid by either the homebuyer or
sel ler ;
(d) Prepayment Penalties -Not .to exceed 4% for the
fir st five years of the mortgage;
(e) Ma ximum Income -$29,500: maximum income means
for the mortgagorts taxable year, which taxable
yea r shall be the taxable year 1980, the total
ann ua l i ncome of the mortgagor from whatever
sourc e derived and be f ore taxes or withholding
tog eth er with the total annual income from what-
ever s ource derived and before taxes or with-
holding o f a l l person s who intend to permanently
reside with such mortgagor in the same dwelling
(the mo r t gagor and such other persons intending
to perman e ntly r eside i n the same dwelling being
hereinafter refe r red t o collectively as ''house-
hold membe rs "), les s t he total of the credits
computed in a cco rdan ce with the following:
(i) a cred it i n a n a mount equal to $1,000 for
each h ousehold member other than the head of
the hou seh o l d ; (ii) a credit in an amount
equal to al l earn i ngs of any household me:nber
who i s under 18 years of age, or who is
physica l ly or men t ally handicapped as determined
on t h e basis of me dical evidence from a licensed
physi c i an; (iii) a credit in an amount equal to
medi ca l expenses o f household members, not com-
pensa t e d for or c overed by insurance, in excess
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of 3% of the total gross adjusted income of
all household members; (iv) a · credit in an
amount equal to one-half of the total earnings
of all household members over 18 years of age
who are secondary wage earners in the house-
hold , other than the spouse of the head of
household, provided, however, that such credit
·applicable under this subsection (iv) may not
exceed $2,500 and (v) a credit in an amount
equal to all income of any household member of
an unusual or temporary nature and not related
to such household member's regular employment,
as de termined by the lending institution;
(f) Maximum Home Value ~ $80,000 which amount ·re-
pres ents the sales price or appraised value,
whichever is greater;
(g) Types of Homes Which Can Be Financed -Single
family detached homes, condominiums, townhouses
and duplexes;
(h) Mortgage Interest Rate -Not to exceed 12%;
(i) Conunitrnent Period -One year from the date o;
issuance of the bonds to receive firm commit-
ment letters ;
(j) Funding Period -An .additional period not to
exceed six months to fund mortgage loans after
the end of the commitment period;
(k) Requirements for Participation of Lenders -
Conunitment Fee in the form of a cashier's
check in an amount not to exceed 2\ of the
commitment at the time they submit their com-
mitment for mortgage money or Letter of Credit
from the participating lenders not to exceed 3%
of their allocated amount at the time of closing
the bond jssue;
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(1) Term of Mortgage and Minimum Loan Amount -30
years with substantially level payments; mini-
mum principal amount of loan of not less than
$10,000;
(m) Types of Loan -Conventional, VA or FHA;
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(n) ·Applicants -Anyone who intends to purchase a
residence in the City limits of Englewood,which
residence shall be occupied by the mortgagor as
such mortgagor's principal place of residence, and
who meets the Maximum Income and Maximum Home
Value criteria previously described;
(o) Loan to Value Ratio of Mortgage Loans -Not
mor e than 75% of the aggregate ·principal amount
of the mortgage loans will represent mortgage
loans, the original principal amounts of which
are greater than 90% (but not greater than 95%)
of the initial appraised value of the property
subject to the related mortgage,· except for
mortgage loans with FHA insurance or a VA
guaranty;
(p} Rehabi litation Mortgage Loans -Permitted in
accordance with the following: (i) 'the mort-
gage loan will be used to rehabilitate resi-
denti al real property by the improvement or
increase of essential living space (but not
for amenities unrelated to such_ improvement
or increase) , and (ii) the appraised value of
the property will increase by virtue of the
rehabilitation by not less than 25% of its
pre-reha bilitation appraised value; provided
that the lo~n value shall not exceed $80,000;
and
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(q) Si ze of Bond Issue -Approximately $25,000,000.
S e c tion 2 . Changed Circumstances. In the event that the
hereinb fore -des cr i bed parameters must be revised in order to
comply with legislation in existence at the time of the issu-
ance of the bo nds and the passage of the bond ordinance, or to
improve the marketability of the bonds at the time the same
are marketed , such parameters may be amended and incorporated
and finally .approved in the bond ordinance for the single
family mortgage revenue bond program of the City.
Section 3 . Hearing. In accordance with Section 40 of
the City Charter, the City Council shall hold a public hear-
ing on this ord i nance, before final passage, at 7:30 P.M. on
Mon day ~~~~~-' De cember 8 , 1980.
Section 4. Publication and Effective Date. This
Ordi nance, after i ts f i nal passage, shall be numbered and
reco rded and t he adopt i on and publication shall be authenti-
cated by the signature of the Mayor and the Director of
Finance , ex-o fficio City Clerk-Treasurer, and by the Certifi-
cate of Publi cation. This Ordinance shall become effective
30 days after publication following final passage.
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Introduced, read in full, and passed on first reading
the 17th day of November, 1980.
Publ ished as a Bill for an Ordinance on the 19th day
of November , 1980.
Rea d by ti t l e and passed on final reading on the 8th
day of Decembe r, 1980 •
. Pub lished by title as Ordinance No. 56 , Series of ----1980, on the 1 0th day of December, 1980.
Mayor
Attest:
I, Gary R. Higbee, ex officio City Clerk-Treasurer of
the City of En glewood, Colorado, hereby certify that the above and
foregoing is a true, accurate and complete copy of the Ordinance
passed on final r e ading and published by title as Ordinance No.56 , --Series of 1980 .
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