HomeMy WebLinkAbout840701.tiff POLICY STATEMENT OF WELD COUNTY, COLORADO
ON SINGLE FAMILY MORTGAGE REVENUE BONDS
This report sets forth the statements of policy on single family
mortgage revenue bonds of Weld County to be applied during the
calendar year 1985 in accordance with Section 103A (j ) (5) of the
Internal Revenue code of 1954 , as amended by Section 611 of the
Tax Reform Act of 1984 (the "Code" ) . Section 103A (j) (5) of the
Code requires that a report be published by the applicable
elected representative of the County and a copy of such report
be submitted to the Secretary of the Treasury on or before the
last day of the calendar year preceding the year in which
obligations are to be issued.
Contained in this report is a statement of policies with respect
to housing, development and low-income housing assistance which
Weld County is to follow in issuing qualified mortgage bonds.
There is also an assessment of the compliance of Weld County
during the one year period preceding the date of this report
with the statement of policy on qualified mortgage bonds that
was set forth in the previous report, if any; and the intent of
Congress that state and local governments are expected to use
their authority to issue qualified mortgage bonds to the
greatest extent feasible (taking into account prevailing
interest rates and conditions in the housing market) to assist
lower income families to afford home ownership before assisting
higher income families.
1 . The report must be published after a public hearing
following reasonable public notice. The notice of such hearing
was published on November 29 , 1984 and the hearing was held on
December 17, 1984 . Proof of publication of the notice is
attached to this report.
2 . Weld County has adopted the following policies with
respect to the issuance of qualified mortgage bonds for the
calendar year 1985 :
A. Maximum Adjusted Income is $36 ,000 .
"Adjusted Income" means the aggregate adjusted gross
income of a Mortgagor and all persons who occupy or will
occupy a Single Family Residence (including the gross
income of any co-signer or guarantor of a mortgage note
made in connection with the making of a Mortgage Loan who
will occupy the Single Family Residence) as evidenced by
such person 's or persons ' adjusted gross income as most
recently reported for federal income tax purposes on line
22 of Form 1040 (or the comparable line of Form 1040A) , or,
in the event that such person' s or persons ' aggregate gross
income, less an amount equal to $2 ,000 for each residence
of the Single Family Residence.
840701
B. Targeted areas include both census tracts and areas of
economic distress. The entirety of Weld County is a target
area.
C. At the current time , no additional financial subsidies
are contemplated by the issuer.
D. Parameters for mortgage lending and allocation of bond
proceeds including the following;
(1) Each Mortgage Loan will be secured by a Mortgage on a
Single Family Residence, will be made substantially in
accordance with the Participant' s then current standard
underwriting policies , which will, as to matters not covered by
the Agreement, be at least equal to the then current standards
set forth in the Federal Home Loan Mortgage Corporation
( "FHLMC") of the Federal National Mortgage Association ("FNMA")
Seller' s Guides, subject to acceptance by the insurer under the
Private Mortgage Insurance Policy and the Special Hazard
Insurance Policy; and the Participant will have determined that
the Mortgagor' s income does not exceed the Maximum Income.
(2) Each Mortgage Loan shall he issued under a Private
Mortgage Insurance Policy in an amount equal to 100% of the
unpaid principal amount of the Mortgage Loan which will be
maintained during the period the Issuer has an interest in the
Mortgage Loan.
Each Mortgage Loan may, at the option of the Mortgagor, be a
Pledged Savings Account Mortgage Loan.
(3) In the event that (i) the Special Hazard Insurance
Policy does not provide coverage against flood damage and (ii)
the Single Family Residence financed with any Mortgage Loan is
located in a designated flood area, the Participant will cause
the Single Family Residence to be insured by federal flood
insurance, if available , in an amount which is not less than the
maximum insurable value of the Single Family Residence securing
such Mortgage Loan or the principal balance owing on such
Mortgage Loan, whichever is less , 1/12th of the annual premium
for such insurance will be paid by the Mortgagor each month as
part of the Mortgagor' s regular monthly payment on such Mortgage
Loan, which shall be collected by the Participant and deposited
in the Mortgage Service Account.
(4) No Mortgage Loan shall be purchased, the original
principal amount of which exceeds 95% of the lesser of the
purchase price or the initial appraised value of the Single
Family Residence subject to the Mortgage Loan.
(5) Each mortgage note on a Mortgage Loan will provide for
a prepayment penalty during the period commencing upon the
execution of the mortgage note and continuing for five years
thereafter equal to 25% of one year' s interest on the principal
amount of such prepayment.
(6) Not more than 10% of the aggregate principal amount of
Mortgage Loans to be purchased by the Issuer will be Mortgage
Loans for the acquisition of condominium units or townhouses
having common walls with adjacent unity and no such condominium
unit or townhouse shall be in a building exceeding four stories
in height; provided, however, that of such amount, not more than
25% of such amount will be used to finance condominium units or
townhouses sold by the same seller; provided, further however,
that no Mortgage Loan to be purchased by the Issuer will be for
the acquisition of duplexes or other two-family dwellings. With
respect to any Mortgage Loan relating to the financing of a
Single Family Residence constituting a condominium unit or
townhouse which has been converted from previous rental use,
prior to any origination by the Participant of such Mortgage
Loan; (i) the project of which such condominium unit or
townhouse is a part will have been accepted by FHLMC or FNMA for
purchase of loans as evidenced by either (A) a letter or
acceptance from FHLMC, or (B) Master Project Approval, FMNA form
1027 , which letter or approval will evidence that such project
meets all of the requirements thereof excepting requirements of
presale percentages, and (ii) a condominium declaration
submitting the applicable property to condominium ownership
pursuant to 38-33-101 et seq. , Colorado Revised Statutes, shall
have been filed prior to July 1 , 1984 .
(7) Until May 1 , 1985, at least 50% of the allocation of
each Participant shall be available to fund Mortgage Loans on a
first-come first-served basis; accordingly, not more than 50% of
the allocation of each Participant may be reserved for any
single builder, developer, contractor or realtor; any builder,
developer, contractor or realtor of whom funds will be committed
is required to certify that such builder, developer, contractor
or realtor is obtaining the benefit of funds of the Program from
only one Participant; each Participant agrees to notify Trustee
or the identity of any builder, developer, contractor or realtor
with which it agrees to make any such reservation and the amount
of proceeds so reserved.
(8) All mortgage notes will provide that the Mortgage Loan
evidenced thereby will he assumable, subject to the restrictions
hereinafter set forth. In any case in which a Single Family
Residence has been or is about to be conveyed by the Mortgagor
and the purchaser desires to assume all the rights and
obligations of the Mortgagor under the Mortgage Loan, the person
to whom such Single Family Residence has been or is about to be
conveyed shall be required to enter into an assumption
agreement; provided that (i) the residence being acquired is a
Single Family Residence at the time of the assumption, (ii) any
party assuming a Mortgage Loan meets the qualifications of an
Eligible Borrower as set forth in the Agreement, and (iii) the
Mortgage Loan must continue to be insured under the insurance
policies described in the Agreement and approved by the Trustee .
The assumption restrictions will be incorporated in the related
mortgage and kept as a part of the Mortgage File. At the
Participant' s discretion, the income limitation of $36 ,000 set
forth in the Agreement may be increased by an amount not in
excess of the cumulative increase in the United States Consumer
Price Index from the Bond Delivery Date to the date of the
assumption.
(9) In order to qualify for selection, a lender must meet
the following minimum criteria:
(a) Participant is a lending institution duly authorized
to do business in the State.
(b) Participants agree that they will remain subject to
supervision and examination by state or federal
authorities, as may be applicable , and that it will
remain in good standing and qualified to do business
under the laws of the United States of America or the
state of its then state or organization and of the
State , will not dissolve or otherwise dispose of all
or substantially all of its assets and will not
voluntarily consolidate with or merge into any other
entity or permit one or more other entities to
consolidate with or merge into participant; provided
that Participant may, without violating the agreement
contained in this subsection , consolidate with or
merge into another entity, or permit one or more
entities to consolidate with or merge into them, or
sell or otherwise transfer to another such entity all
or substantially all of its assets as an entirety and
thereafter dissolve , provided the surviving, resulting
or transferee entity, as the case may be, shall be
subject to the supervision and examination of state or
federal authorities , as may be applicable , and, after
giving effect to such transaction, shall have a net
worth substantially equal to that of Participant
immediately prior to such acquisition, consolidation
or merger, and shall assume in writing all of the
obligations of Participant under this Agreement. In
the case of a sale of all or substantially all of the
Participant' s assets, Trustee, on behalf of Issuer,
shall release Participant in writing concurrently with
and contingent upon such assumption, from all
liability hereunder.
(c) In the event Participant will be servicing Mortgage
Loans, it is approved to service mortgages for FNMA of
FHLt•SC and has a servicing office located in Weld
County.
(d) Participant covenants that its depository account is
insured by Federal Deposit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation or
that funds received pursuant to this Agreement of the
Indenture are kept in depository accounts of lending
institutions which are insured by one of such federal
corporations.
(e) Participant is and will continue to be an approved
seller of conventional mortgage loans to FNMA or
FHLI'IC, and Participant is and will continue to be an
approved servicer of conventional mortgages for FNMA
or FHLMC.
(10) Funds are allocated on the following basis:
(a) Participants must submit a completed "Offer to Sell"
loans .
(b) Allocations will generally be based on:
i) Participant' s lending history in the County.
ii) Participant' s successful participation in
previous bond programs .
iii) Participant' s ability to originate bond loans.
iv) Participant ' s ability to make target area loans.
v) Participant' s requested allocation.
vi) Participant' s ability to service loans locally.
(11) On September 1984 , Weld County in conjunction with
Larimer County, issued $15 , 110 ,000 in Single Family Mortgage
Revenue Bonds . A portion of the loan proceeds were used in Weld
County, Colorado ($6 ,000 ,000) . As of November 19 , 1984 about
70% of the program' s loans were purchased, closed or were in
process. Additionally, substantially all the targeted monies
have been satisfied. Program profiles as of November 19 , 1984
are as follows:
(a) Average mortgage amount: $52 , 167
(b) Mortgage term and rate: 30 years, 11 1/4%
(c) Average loan to value: 90%
(d) Average property age: 19 years
(e) Average sales price: $57 ,534
(f) Average appraised value: $58 ,561
(g) Average borrower ' s annual income: $30 ,564
(h) Average monthly mortgage payment $600
(i) Detached housing: 90 . 9%
(j ) Housing Size: 1000-1500 square feet
This report is ordered to be published in LaSalle Leader on
December 20 , 1984 and a copy of this report is to be submitted
to the Secretary of the Treasury on or before December 31 , 1985 .
The undersigned, as Chairman of the Board of County
Commissioners , authorizes the issuance of this report this 17th
day of December, 1984 .
By: / ».i[
Weld County, C
Chairman
Board of County Commissioners
ATTEST:
Weld C nty Clerk and Recorder
and Clerk to the Board
BY: 12k 4rM/,{ �. /! i)41?F O / e
Deputy County 'Clerk
NOTICE
NOTICE OF PUBLIC HEARING CONCERNING WELD COUNTY POLICIES ON
SINGLE FAMILY MORTGAGE REVENUE BONDS
Docket No. 84-85
Notice is hereby given that Weld County will conduct a
public hearing concerning its policies regarding the issuance
of single family mortgage revenue bonds during the calendar
year 1985 . All interested parties are invited to present
comments at the public hearing to be held on Monda_y, December
17 , 1984 at 10 : 30 a.m. at 915 10th Street, Greeley, Colorado.
The public hearing will consider the housing, development and
low-income housing assistance policies which Weld County will
follow in issuing its mortgage revenue bonds and assess the
prior performance of its mortgage bond programs.
THIS NOTICE GIVEN BY ORDER of the Board of County
Commissioners of the County of Weld, State of Colorado, as of
the 26th day of November, 1984.
THE BOARD OF COUNTY COMMISSIONERS
BY: MARY ANN FEUERSTEIN
COUNTY CLERK AND RECORDER
AND CLERK TO THE BOARD OF
COUNTY COMMISSIONERS
BY: TOMMIE ANTUNA, DEPUTY
PUBLISHED: November 29 , 1984 in the LaSalle Leader
HEARING CERTIFICATION
DOCKET NO. 84-85
RE: SINGLE FAMILY MORTGAGE REVENUE BOND POLICIES
A public hearing was conducted on December 17, 1984, at 10:30 A.M. , with the
following present:
Commissioner Norman Carlson, Chairman
Commissioner Jacqueline Johnson, Pro-Tem
Commissioner Gene Brantner
Commissioner Chuck Carlson
Commissioner John Martin
Also present:
Acting Clerk to the Board, Debbie Campbell
Assistant County Attorney, Thomas 0. David
Director of Finance, Don Warden
The following business was transacted:
I hereby certify that pursuant to a notice duly published November 29, 1984, in
the La Salle Leader, a public hearing was conducted concerning the policies of
issuing Single Family Mortgage Revenue Bonds for the calendar year 1985. Thomas
0. David, County Attorney, made this matter of record. Don Warden, Director of
Finance, explained the changes and the requirements for the upcoming year and
recommended approval. He also stated that the policy statement figures are for
both Weld and Larimer Counties. Kathy Manley, representing the United Banks of
Greeley and Fort Collins, stated support of this program and Ms. Manley said that
the banks have been participating in the issuance of these bonds. After
discussion, Commissioner Martin moved to approve the Single Family Mortgage
Revenue Bond policy, authorize the Chairman to sign and to have the policy
statement published December 20 in the La Salle Leader. Commissioner Johnson
seconded the motion and it carried unanimously.
APPROVED:
BOARD OF COUNTY COMMISSIONERS
ATTEST: `7V WELD COUNTY, COLORADO
and
Weld County ClY°k aned Recorder
and Clerk to the Board Norman Carlson, Chairman
BY: //Gl//rs t_ ..�`_ I ►�A�_..�
Dept y Coun Clerk Ja .uel%e John-.n Pro-Tem
fTite
Gen R. Brantner
C
ck Carlson
n T. Martin
TAPE #84-137
DOCKET #84-85
DATE: NovemL 28 , 1984
TO: The Board of County Commissioners
Weld County, Colorado
FROM: Clerk to the Board Office
Commissioners:
If you have no objections, we have tentatively set the
following hearing for the 17th day of December, 1984 , at 10 : 30 A.M.
Docket No. 84-85 - Policies on single family mortgage revenue bonds
OFFICE OF THE CL TO THE BOARD
BY: i /«(i" , Deputy
The above mentioned hearing date end hearing time may be scheduled
on the agenda as stated above.
BOARD OF COUNTY COMMISSIONERS
WELD
COUNTY, COLORADO
O a
/"tsjit
ir`,
Affidavit of Publication
STATE OF COLORADO.
County off Weld. 1
/.u+ 2a'Q' l of
said County of Weld. being duly sworn. say that
l am pis Usher of/'7,
that the same is a weekly newspaper of general
circulation and printed ,,and published in the
town of .
I2h_
in said county and stale: that the notice or adver-
tisement. of which the annexed is a true copy.
has been published in said weekly newspaper
for ms —..,�.�a,... LEGAL NOTICE'
weeks: that the notice was published in the
regular and entire issue of every number of said NOTICE
newspaper during the period and lime cf publi- NOTICE OF PUBLIC HEARING CON.
cation of said notice and in the newspaper CERNING WELD COUNTY POLICIES
proper and not in a suFPla:rent thereat: that the ON SINGLE FAMILY MORTGAGE
REVENUE BONDS
first publication of said notice was contained in
the - sue of said, neewwsppaape_,tit date. the Docket No.iseS
o"� day of v"' — _'"" —7..7.. 19�� Notice n hereby given that Weld
County will conduct a public hearing
and the last publication thereof. in Ihys,issue of concerning ire policies regarding the S.
said dlawspeper bearing date, the day of stance of single..6raily mtgage
mac/ revenue boAU nds during calendar year
, 19 i.L: that the said 1985. terested pahks are.usvitedto W - present c comommend n the peblk hearing
_. to be held on Mande9. December U.
gg /, 1984 it 10:50 a.m.M ITS loth Street,
Greiley,Colorado. The public hearing
will consider the'hamtay,developnm-
haa been published continuously and tmintermpt- and low.income. homing aeshtame
t
edly during the period of ct least fifty-two con- Poledeswhich WeldCountywillnollovjn
issuing its mortgage matte bonds and
eecutive weeks next prior 10 the first issue thereof • seesetheprbrper(MlnanceMinmar-
containing said notice or advertisement above tgage,bond programs.
referred to: and that said newspaper was at the THIS NOTICE GIVEN BY ORDER of
time cif each of the publications at said notice, the Board of Coun e ty Commissioners of
th County of Weld,State of Colorado,
duly qualed far that purpose within the mean as of the 26th day of November,19241
inq of an act, entitled, "An Act Concerning Legal
Notices. Advertisements and Publications, and THE BOARD OF COUNTY
the Fees of Printers and Publishers thereof, and COMMISSIONERS
to Repeal all Acts and Parts of Acts in Conflict COUFEUERSTEIN
MARY
NTY CLERK ANN N RECORDER
with the Provisions of this Act." approved April f. AND-CLERK TORtE BOARD
1921, and all amendments thereof, and particu- OF COUNTY COMMISSIONERS
lady as amended by an act approved. March 30. BY:TOMMIE ANTUNA,DEPUTY
1923, d an act apprave day IS, 1931. Published In the La Salle Lead on
Thursday,November 29,1984. er
Publisher
Subscribed c,>y3 sworn to befor .e this �
day of A.D., l9_.IZZ
My commission expires / 74
Notary Public
EL;LABErH MASSE((
22039 W.C.RD. 54
GREELEY. CO 80631
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