In addition to powers which the municipality may now have, the municipality shall have all powers necessary to accomplish the purposes of this ordinance including, but not limited to, the following:
(a) Residential development. The municipality shall have the power to plan, conduct research, study, develop and promote the establishment of residential development.
(b) Home mortgages. The municipality shall have the power:
(1) To acquire, and contract and enter into advance commitments to acquire, home mortgages owned by lending institutions at such purchase prices and upon such other terms and conditions as shall be determined by the municipality or such other person as it may designate as its agent, to make and execute contracts with lending institutions for the origination and servicing of home mortgages and to pay the reasonable value of services rendered under those contracts;
(2) To make loans to lending institutions under terms and conditions which, in addition to other provisions as determined by the municipality, shall require the lending institutions to use substantially all of the net proceeds thereof, directly or indirectly, for the making of home mortgages in an aggregate principal amount substantially equal to the amount of such net proceeds;
(3) To establish, by rules or regulations, in ordinances relating to any issuance of bonds or in any financing documents relating to such issuance, such standards and requirements applicable to the purchase of home mortgages or the making of loans to lending institutions as the municipality deems necessary or desirable, including but not limited to: (i) the time within which lending institutions must make commitments and disbursements for home mortgages; (ii) the location and other characteristics of homes to be financed by home mortgages; (iii) the terms and conditions of home mortgages to be acquired; (iv) the amounts and types of insurance coverage required on homes, home mortgages and bonds; (v) the representations and warranties of lending in situations confirming compliance with such standards and requirements; (vi) restrictions as to interest rate and other terms of home mortgages or the return realized therefrom by lending institutions; (vii) the type and amount of collateral security to be provided to assure repayment of any loans from the municipality and to assure repayment of bonds; and (viii) any other matters related to the purchase of home mortgages or the making of loans to lending institutions as shall be deemed relevant by the municipality; provided, however, that in no case shall any such lending institution charge and retain an origination fee in excess of three percent of the principal amount of any such home mortgage; and, further provided, the interest rate on such home mortgage (or on the municipality's participation interest in such home mortgage if the municipality shall own less than 100 percent of such home mortgage) shall be at least one and one-half percent less than the stated interest rate being charged on 95 percent loan-to-value ratio mortgages made in the municipality or one percent less than the stated interest rate for 80 percent loan-to-value mortgages made in the municipality. The determination of such rates shall be made on any reasonable basis as determined by the comptroller, on a day established by the comptroller reasonably proximate to the date of execution of a contract for the sale of the related bonds;
(4) To require from each lending institution from which home mortgages are purchased or to which loans are made the submission, at the time of such purchase or loan, of evidence satisfactory to the municipality of the ability and intention of such lending institution to make home mortgages, and the submission, within the time specified by the municipality for making disbursements for home mortgages, of evidence satisfactory to the municipality of the making of home mortgages and of compliance with any standards and requirements established by the municipality; in connection therewith, the municipality may inspect the books and records of such lending institutions.
(c) Bonds. The municipality shall have the power:
(1) To issue its bonds to defray, in whole or in part, the development costs of any residential development; to issue its bonds to defray, in whole or in part, the costs of purchasing, or funding the making of, home mortgages including, but not limited to, the costs of studies and surveys, insurance premiums, underwriting fees, legal, accounting and marketing services incurred in connection with the issuance and sale of such bonds, including bond and interest reserve accounts and trustee, custodian and rating agency fees; and to designate appropriate names for such bonds. The municipality need not acquire or hold title to or any interest in a residential development or home mortgages;
(2) To rent, lease, sell or otherwise dispose of any residential development or home mortgages, in whole or in part, or to loan sufficient funds to any person to defray, in whole or in part, the development costs of any residential development or the costs of purchasing home mortgages, so that the rents or other revenues to be derived with respect to the residential development or home mortgages, together with any insurance proceeds, reserve accounts and earnings thereon shall be designed to produce revenues and receipts at least sufficient to provide for the prompt payment at maturity of principal, interest and redemption premiums, if any, upon all bonds issued to finance such costs;
(3) To pledge any revenues and receipts to be received from any residential development or home mortgages to the punctual payment of bonds authorized under this ordinance, and the interest and redemption premiums, if any, thereon;
(4) To mortgage, pledge or grant security interests in any residential development, home mortgages, notes or other property in favor of the holder or holders of bonds issued therefor;
(5) To sell and convey any residential development or home mortgages, including, without limitation, the sale and conveyance thereof subject to a mortgage, pledge or security interest, if any, as provided in the ordinance relating to the issuance of the bonds for such prices and at such times as the governing body of the municipality may determine;
(6) To issue its bonds to refund in whole or in part at any time bonds theretofore issued by the municipality under authority of this ordinance;
(7) To apply for and accept on its own behalf or on behalf of any person, advances, loans, grants, contributions, guarantees, rent supplements, mortgage assistance and any other form of financial assistance from the federal government, the state, any county or municipality, or any other public or quasi-public body, corporation or foundation, or from any other source, public or private, including any person, for any of the purposes of this ordinance, and to include in any contract for financial assistance such conditions as it may deem reasonable and appropriate and which are not inconsistent with the purposes of this ordinance;
(8) To make and execute contracts and other instruments necessary or convenient to the exercise of any of the powers granted herein;
(9) Bonds shall not be issued hereunder unless they receive at least an "A" rating from one of the nationally recognized rating agencies.
(Prior code § 7-87)