R-02-04-25-11C3 - 4/25/2002RESOLUTION NO. R- 02- 04- 25 -11C3
WHEREAS, the Capital Area Housing Finance Corporation (the
"Corporation ") was incorporated pursuant to the Texas Housing
Finance Corporations Act of 1979, as amended, Chapter 394 of the
Local Government Code (the "Act "), by the governing bodies of the
City of San Marcos, Texas, and each of the Texas counties of
Bastrop, Blanco, Caldwell, Fayette, Hays, Llano, and Williamson
(the "Local Governmental Units "), to provide a means of financing
the cost of residential ownership and development that will provide
decent, safe, and sanitary housing for individuals and families of
low and moderate income, and
WHEREAS, the Corporation's Articles of Incorporation were
amended effective March 11, 1998 to add the Texas counties of
Burnet and Lee as Local Governmental Units of the Corporation, and
WHEREAS, the Corporation intends to issue its Tax- Exempt
Single - Family Mortgage Revenue Bonds (GNMA and Fannie Mae Mortgage -
Backed Securities Program), Series 2002A (the "2002 Bonds "), and
WHEREAS, Section 394.005 of the Act provides that the Act does
not apply to property located within a municipality with more than
20,000 inhabitants unless the governing body of the municipality
approves the application of the Act to the property, and
WHEREAS, the Corporation has requested the governing body of
the City of Round Rock, Texas (the "City ") to provide, with the
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proceeds of the issuance of the Corporation's 2002 Bonds, financing
for home mortgages for homes located in that area of the City
located within Williamson County, Texas, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS THAT,
1. The recitals are incorporated in and made a part of this
Resolution.
2. The City Council approves the application of the Act to
property within the City that is located within Williamson County,
Texas, and grants its approval to the Corporation for use of the
proceeds of the 2002 Bonds to finance home mortgages for homes
located within that portion of the City.
3. To demonstrate the City's desire to participate in the
Corporation's 2002 mortgage revenue bond programs, a certified copy
of this Resolution will be forwarded to the Corporation.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
2
A E T:
RESOLVED this 25th day of April, 2002.
1 ��., u
L L . AL
CHRISTINE R. MARTINEZ, City Secretary
3
City of Round Rock, Texas
DATE: April 19, 2002
SUBJECT: City Council Meeting — April 25, 2002
ITEM: 11.C.3. Consider a resolution authorizing the use of Tax- Exempt Single
Family Mortgage Revenue Bonds, Series 2002A, to provide a means
of financing the cost of residential home ownership in Round Rock
Resource: Joe Vining, Planning Director
Mona Ryan, Community Development Coordinator
History: The City of Round Rock participated in the last Single Family Mortgage Revenue
Bond program in 1998. Fifty -four loans totaling $5,652,600.00 were made
through the program.
Funding
Cost: N/A
Source of Funds: N/A
Outside Resources: Capital Area Finance Corporation
Seth Searcy III, Attorney
Impact: $25,000,000 in Bonds will be issued by the Capital Area Housing Finance
Corporation.
Benefit: First time home buyers ineligible for the CDBG Block Grant down payment
assistance program will be able to use this program for down payment and mortgage
assistance.
Public Comment: N/A
Sponsor: Planning and Community Development Department
THE BONDS:
THE MORTGAGE LOANS:
CAPITAL AREA HOUSING FINANCE CORPORATION
Single Family Mortgage Revenue Bonds
(GNMA and Fannie Mae Mortgage- Backed Securities Program)
Series 2002A
PRELIMINARY PROGRAM SUMMARY
The Capital Area Housing Finance Corporation (the "Corporation ")
intends to issue single - family mortgage revenue bonds (the "Bonds"). It
is anticipated that approximately $25,000,000 in Bonds will be issued
by the Corporation. The Bonds will be rated "Aaa ", and will be secured
by (i) an Investment Agreement during the Origination Period and (ii)
mortgage- backed securities (the "Certificates ") of the Government
National Mortgage Association ( "GNMA ") and the Federal National
Mortgage Association ( "Fannie Mae") evidencing a guarantee by GNMA or
Fannie Mae, respectively, of the timely payment of monthly principal
and interest on the GNMA and Fannie Mae Certificates.
The Mortgage Loans will be originated by qualified mortgage originators
(the "Lenders") pursuant to the provisions of the 2002 Single Family
Mortgage Revenue Bond Program (the 'Program') to finance the
acquisition of eligible single- family residences (the "Residences") by
qualified borrowers (the "Borrowers").
TERM: 30 -year, fixed rate, level payment loans.
TYPE: FHA, VA, Conventional, or USDA -RD.
MORTGAGE RATE: The Corporation desires the lowest possible
mortgage rate. It is presently anticipated that
the mortgage rate wilt be approximately 6.50%
for loans with no down payment assistance, and
7.25% for loans with 4 points of down payment
assistance, subject to market conditions at the
time of pricing.
ORIGINATION PERIOD:
POINTS: Total points to the Borrower, including all
discount and origination points, will be 1.75 %.
LOAN PURPOSE:
80% of the requested Allocation has a 12 -month
period and the remaining 20% has an 18 -month
origination period. The Issuer can extend the
Origination Period with Bondholder consent.
The Program will be limited to the acquisition
of Eligible Residences, which must be occupied
by the Homebuyer and must be the Primary
Residence of the purchaser.
All information is preliminary and subject to change by the Corporation Capital Area HFC, Page 1
RESERVATIONS:
PURCHASE PRICE:
ELIGIBLE RESIDENCES:
PROGRAM AREA:
The Purchase Price Limits for the Program are:
Y #, is i' "i "L�AIfC t u niES '"
ONE UNIT
New Residence
Existing Residence
Caldwell 9604.00
Hays 105.00
Williamson 210.00; 214.02
Targeted Non - Targeted
Area Area
5115,765 $ 94,716
$ 73,184 $ 59,877
TWO UNITS (existing) 5 82,405 $ 67,422
THREE UNITS (existing) $ 99,749 $ 81,613
FOUR UNITS (existing) $115,996 $ 94,906
BAs *7 b `. . kMSOrIi1.60:0 S k
Targeted Non - Targeted
Area Area
ONE UNIT
New Residence 5153,563 5125,642
Existing Residence 5131,101 5107,264
TWO UNITS (existing) 5147,620 5120,780
THREE UNITS (existing) 5178,691 5146,201
FOUR UNITS (existing) 5207,795 5170,014
Include single -unit, owner - occupied, detached
residences; two -unit, three -unit, and four -unit
dwellings, if one of the units is occupied by the
owner; and (subject to the requirements of
GNMA, FHA, VA, USDA -RD, and Fannie Mae, as
applicable), condominiums, and townhouses.
RECAPTURE TAX: Mortgage Loans originated under the Program
will be subject to the Federal Recapture Tax.
Mortgage Loans may be made to Eligible
Borrowers for Eligible Residences located within
the geographic boundaries of Bastrop, Blanco,
Burnet, Caldwell, Fayette, Hays, Lee, Llano or
Williamson Counties, including the City of San
Marcos.
TARGETED AREA: Up to 20% of the amount available for
origination under the program will be reserved,
for a period of twelve months from the bond
closing date, for loans made in Targeted Area
census tracts. The Targeted Area census tracts
are:
All information is preliminary and subject to change by the Corporation Capital Area HFC, Page 2
ELIGIBLE BORROWERS:
DOWN PAYMENT ASSISTANCE:
OTHER RESERVATIONS: 50% of the amount available for origination of
mortgage loans under the program will be
reserved for a period of six months for those
borrowers earning below 80% of area median
income. These reservations constitute "Priority
Reservations" as required by State law.
Borrowers under this Program must meet the first -time homebuyer
requirement (cannot have had an ownership interest in a residence in
the past three years). The first -time homebuyer requirement is waived
for borrowers purchasing homes within Targeted Areas.
INCOME LIMITS: The Income Limits for Eligible Borrowers are:
e I.V C ik
Targeted Non - Targeted
Area Area
2 or Fewer Persons S61,680 $51,400
3 or More Persons $71,990
2 or Fewer Persons
3 or More Persons
$59,110
Targeted Non - Targeted
Area Area
$86,320 $71,100
$99,540 581,765
The Corporation is providing a Down Payment Assistance component for
the Program. For maximum flexibility, the Corporation is implementing
this program with two options, as outlined below.
Option 1: Below- Market Mortgage Rate (Mortgage Rate is
approximately 75 -80 basis points higher than Option 2)
with Down Payment Assistance of 4 Points
Option 2: Lowest Possible Mortgage Rate -- No Closing Cost or
Down Payment Assistance
Mechanics of Funding the Down Payment Assistance:
1. Participating Lender "fronts " the Down Payment and Closing Cost
Assistance (4 %) at loan closing.
2. The Master Servicer reimburses the Participating Lender for the Down
Payment Assistance when they purchase the loan.
3. The Trustee reimburses the Master Servicer for the Down Payment
Assistance when purchasing Certificates from the Master Servicer.
MASTER SERVICER: The Master Servicer for the Program will be The Leader Mortgage Company.
All information is preliminary and subject to change by the Corporation Capital Area HFC, Page 3
ORIGINATOR SUMMARY
CH Mortgage
CTX Mortgage
Fund America Capital LLC
Homecorp Mortgage
Homeloan
Kaufman & Broad
Meier Mortgage
Mortgage Portfolio /Pacific
Loans
52
19
6
16
16
23
26
15
Total Originated Amount
5,463,967
2,001,330
524,427
1,050,917
1,626,447
2,489,865
2,244,240
1,444,406
Total
173
$16.845.599
LOAN TYPE TOTALS
FHA
FNMA Cony.
VA
Loans
150
13
10
Total Originated Amount
14,784,037
973,181
1,088,381
% of Total
87.76
5.78
6.46
Total
173
$16.845.599
100.00
NEW /EXISTING TOTALS
Existina
New
Loans
48
125
Total Originated Amount
3,766,529
13,079,070
% of Total
22.36
77.64
Total
173
$16,845,599
100.00
TARGET /NON- TARGET TOTALS
Non - Target
Loans
173
Total Originated Amount
16,845,599
% of Total
100.00
Total
173
$16,845,599
100.00
HOUSING TYPE TOTALS
1 Unit Detached
Condo
Manufactured
PUD
Loans
156
4
2
11
Total Originated Amount
15,116,902
443,911
129,942
1,154,844
% of Total
89.74
2.64
0.77
6.86
Total
173
$16,845,599
100.00
• THE LEADER MORTGAGE COMPANY
1999A SF MRB Program - Capital Area Housing Finance Corporation
Loan Information Report
09/24/2001
Page 1 of 3
TYPE OF FUNDS - TOTALS
"Spot - General
Loans
173
Total Originated Amount
16,845,599
% of Total
100.00
Total
173
$16,845,599
100.00
INTEREST RATE BREAKDOWN
Interest Rate Limit
Loans
Total Originated Amount
% of Total
5.99000%
44
4,218,840
25.04
6.65000%
129
12,626,759
74.96
Total
173
$16,845,599
100.00
COUNTY TOTAL
Loans
Total Originated Amount
% of Total
BASTROP
10
988,166
5.87
BLANCO
2
155,616
0.92
BURNET
11
635,499
3.77
CALDWELL
12
910,695
5.41
FAYETTE
1
53,135
0.32
HAYS
19
1,952,812
11.59
LEE
2
106,811
0.63
LLANO
2
90,031
0.53
WILLIAMSON
114
11,952,834
70.96
Total
173
$16,845,599
100.00
PROGRAM PIPELINE
Loans
Total Originated Amount
% of Total
Purchased
1
54,950
0.33
Pooled
8
697,890
4.14
Sold to Trustee
164
16,092,759
95.53
Total
173
$16.845.599
100.00
ETHNICITY
Loans
Total Originated Amount
% of Total
African American
22
2,366,090
14.05
American Indian /Alaskan Native
1
88,034
0.52
Hispanic
44
4,224,907
25.08
Other
7
677,790
4.02
White, Non Hispanic
99
9,488,778
56.33
Total
173
S16.845.599
100.00
THE LEADER MORTGAGE COMPANY
1999A SF MRB Program - Capital Area Housing Finance Corporation
Loan Information Report
09/24/2001
Page 2 of 3
BREAKDOWN BY CITY
Loans
Total Originated Amount
% of Total
AUSTIN
6
651,853
3.87
BASTROP
9
920,612
5.47
BUDA
7
732,295
4.35
BURNET
1
52,198
0.31
CEDAR PARK
18
2,005,247
11.90
COTTONWOOD SHORES
2
94,878
0.56
DEL VALLE
1
67,554
0.40
GRANITE SHOALS
3
156,444
0.93
HORSESHOE BAY
1
52,626
0.31
HUTTO
2
226,577
1.35
JOHNSON CITY
1
77,316
0.46
KYLE
11
1,099,267
6.53
LAGRANGE
1
53,135
0.32
LEANDER
20
2,092,420
12.42
LEXINGTON
2
106,811
0.63
LLANO
2
90,031
0.53
LOCKHART
11
848,686
5.04
LULING
1
62,009
0.37
MARBLE FALLS
4
279,353
1.66
ROUND MOUNTAIN
1
78,300
0.46
ROUND ROCK
67
6,915,285
41.05
TAYLOR
1
61,452
0.36
WIMBERLEY
1
121,250
0.72
Total
173
$16,845,599
100.00
SUMMARY
Original Allocation
$16,860,000.00
Available Allocation
$14,401
Total Originated Amount
$16,845,599
Total Originated Loans
173
Percentage Originated
99.91%
Average Loan Size
$97,373
Average Purchase Price
$98,492
THE LEADER MORTGAGE COMPANY
1999A SF MRB Program - Capital Area Housing Finance Corporation
Loan Information Report
09/24/2001
Page 3 of 3
$41,750,000
Capital Area Housing Finance Corporation
Taxable Single Family Mortgage Revenue Bonds
(GNMA and Fannie Mae Mortgage- Backed Securities Program)
Series 1998A
City # of Loans Original Loan Amount
Austin 14 $1,592,161.00
Bastrop 2 163,651.00
Bertram 1 67,945.00
Buda 2 210,208.00
Cedar Park 25 2,789,350.00
Elgin 1 113,756.00
Georgetown 7 693,259.00
Granger 1 67,396.00
Hutto 1 115,253.00
Kyle 21 2,440,936.00
Leander 22 2,221,822.00
Lockhart 3 177,942.00
Round Rock 54 5,652,600.00
San Marcos 2 141,200.00
Smithville 1 122,916.00
Taylor 9 719,928.00
Total 166 S17,290,323.00