Loading...
HomeMy WebLinkAboutCity Council - 5589 r RESOLUTION NO. 5589 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING HOUSING POLICY REPORT UNDER INTERNAL REVENUE CODE SECTION 103A AND DIRECTING ITS PUBLICATION RESOLVED, by the City Council of the City of Huntington Beach, California, as follows: WHEREAS, Section 103A(j ) (5) of the Internal Revenue Code of 1954, as amended, as implemented by proposed and temporary regulations of the Department of the Treasury, Section 6a. 103A-2 (1) , requires the applicable elected representative of an issuer of qualified mortgage subsidy bonds to publish, after public hearing, a housing policy report; This Council is the applicable elected representative of the City of Huntington Beach which City proposes to issue in 1986 qualified mortgage subsidy bonds; It is in the public interest and for the public benefit that said housing policy report be approved and published; NOW THEREFORE, it is hereby ordered and determined as follows: 1. The City Manager of the City is hereby authorized and directed to prepare a summary of the comments made at the aforesaid public hearing and to include said summary as a part of the Policy Report under Section 103A. 2. The report of the City of Huntington Beach entitled, "Policy Report under Section 103A, " and dated October 31, 1985, is hereby approved with the inclusion of said summary of comments. I 1. �I 3. The Mayor of the City, as a member of this Council, is hereby authorized and directed to execute said report on behalf of this Council as the duly elected representative of the City. 4. This Council does hereby publish the Report by authorizing and directing the City Clerk, and the City Clerk is hereby so authorized and directed, to make said Report available in the Office of the City Clerk for distribution to the public. 5. The City Clerk of the City is hereby authorized and directed to file the Report with the Internal Revenue Service at the Internal Revenue Service Center , Philadelphia, Pennsylvania 19255. PASSED AND ADOPTED this 21st day of October , 1985. a Mayor ATTEST: APPROVED AS TO FORM: � r City Clerk AkXJ 46 City Attorney 16 . REVIFA ND APPROVED: I TIATED AND APPROVED• r City Administrat r eputy irect r '13f Redevelopment AJF:mf 10/7/85 0432L 2. City of Huntington Beach 95-6000723W POLICY REPORT UNDER SECTION 103A A. GENERAL On July 18, 1984, Congress enacted into law the Tax Reform Act of 1984. This Act imposes certain requirements on issuers of qualified single-family mortgage bonds and mortgage credit certificates. One of these requirements is that issuers publish a statement of their policies with respect to housing, development, and low-income housing assistance and report on their compliance, for the one-year preceding the date of the report, with the intent of Congress that qualified mortgage bond issues and mortgage credit certificates assist lower income families to afford home ownership before assisting higher income families. In order to qualify for a federal tax exemption for interest on qualified mortgage bonds to be issued in 1985, this statement must be published prior to October 14, 1985. Although the city of Huntington Beach has not issued qualified single-family mortgage bonds (and/or) mortgage credit certificates in 1985, the following report is being published in order to comply with the requirements of the Tax Reform Act of 1984 and the Regulations thereunder. B. POLICIES AND GOALS B(1) Housing and Policies and Goals. The California State Legislature has found and declared that there exists within the State of California a serious shortage of decent, safe, and sanitary housing which is affordable to many persons in the state. This shortage is exacerbated during periods of rising interest rates, particularly as high interest rates have the effect of diminishing the number of otherwise creditworthy buyers from qualifying for private sector mortgage capital sources. In order to remedy this adverse effect on potential home buyers on the lower end of the purchassing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for the single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market. California Health and Safety Code s52001. The California State Legislature has additionally found and declared that it is necessary and essential that counties and cities be authorized to directly and indirectly make long-term, low-interest loans to persons not presently eligible for financing through private sector lending institutions to finance construction, rehabilitation, and acquisition of homes in order to encourage investment and upgrade local areas. California Health and Safety Code s52002. The city of Huntington Beach has not issued qualified single-family mortgage bonds (and/or) mortgage credit certificates (the 'Bonds/Certificates") in 1985 in furtherance of the above-stated policies of the California State Legislature and in conformance to the following policies and goals: (i) Use of Proceeds. The proceeds of the Bonds will be used to finance the acquisition of residences. 0396H - 1 - (ii) Targeting of Proceeds to Housing Type. The proceeds of the Bonds will be targeted to new housing and existing housing. (iii) Determination of Need for Targeting. The need to target the Bond proceeds to new and existing housing was determined by the city's low vacancy rate, lack of supply, and high costs of affordable housing. The city's strategy regarding single-family housing bonds is to increase the supply of affordable housing to ease the increasing demand. (iv) Method of Targeting Proceeds. The city primarily accepts proposals from developers of new housing, however, existing housing proposals will also be considered. (v) Other Pertinent Information. Non applicable. (vi) Related Policies. A description of how the city's housing policies relate to its development and low income housing assistance policies to form a general plan is attached. (See Attachment "A"). B(2) Development Policies and Goals. The California State Legislature has found and declared that there exists within the State of California a serious shortage of decent, safe, and sanitary housing which is affordable to many persons in the state. This shortage is exacerbated during periods of rising interest rates, particularly as high interest rates have the effect of diminishing the number of otherwise creditworthy buyers from qualifying for private sector mortgage capital sources. In order to remedy this adverse effect on potential home buyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for the single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market. California Health and Safety Code s520001. The California State Legislature has additionally found and declared that it is necessary and essential that counties and cities be authorized to directly and indirectly make long-term, low-interest loans to persons not presently eligible for financing through private sector lending institutions to finance construction, rehabilitation, and acquisition of homes in order to encourage investment and upgrade local areas. 0396H - 2 - California Health and Safety Code s52002. City of Huntington Beach plans to issue qualified single-family mortgage bonds (the "Bonds") in 1985 in furtherance of the above-stated policies of the California State Legislature and in conformance to the following policies and goals: (i) Targeting of Proceeds to Areas. None of the proceeds of the Bonds will be targeted to specific areas. (ii) Description of Target Areas. Not applicable. icable. (iii) Section of Target Areas. Not applicable. (iv) Use of Targeted Proceeds. The proceeds of the Bonds will not be targeted to specific areas. (v) Other Pertinent Information. None. (vi) Related Policies. A description of how the city's development policies relate to its housing and low-income housing assistance policies to form a general plan is attached. (See Attachment "A"). B(3) Low-Income Housing Assistance Policies and Goals. To insure that qualified mortgage bond issues assist lower income families to afford home ownership, California law provides that a city or county that administers a home financing program must establish criteria for qualification of persons and families for participation in such program. The criteria must include a maximum household income, which maximum shall not exceed one hundred fifty persent of median household income (defined as the highest of (A) statewide median household income, (B) county-wide median household income, or (C) median household family income for area as determined by the United States Department of Housing and Urban Development for mortgagors who will be the first occupant of a home, one hundred twenty persent of the median household income for mortgagors who will not be the first occupant of a home (except that the city or county must assure that no less than twenty percent of such funds shall be for households whose income does not exceed one hundred ten percent of the median household income, unless the legislative body of the city or county makes certain findings). California Health and Safety Code s52020(d). In addition, to obtain a supplementary allocation of qualified mortgage bonds from the California Mortgage Bond Allocation Committee, proceeds of qualified mortgage bonds issued with such supplementary allocation must be use d to provide mortgages to persons and families whose incomes do not exceed one hundred twenty percent of median household income for mortgagors who will be the first occupant of a home and median household income for mortgagors who will not be 0396H _ 3 _ the first occupant (except that the issuer shall assure that no less than half of such funds shall be for households whose income does not exceed eighty percent of such median household income, and provided that this limit may be increased to ninety percent of median household income if the legislative body of the issuer finds that there are insufficient numbers of creditworthy persons whose income does not exceed eighty percent of median household income). California Health and Safety Code s50189(b). The city of Huntington Beach has not issued qualified single-family mortgage bonds ("Bonds") in 1985 in furtherance of the above-stated policies of the California State Legislature and in conformance to the following policies and goals: (i) Targeting of Proceeds According to Income. All of the proceeds of the Bonds will be targeted to median income families. Median income is determined by the County of Orange (through independent analysis) means $36,050 as of July 16, 1984. (ii) Method of Targeting Proceeds. The Bond proceeds are targeted to income levels falling between the median income for Orange County and one hundred fifty percent of the median. The program is targeted to this population since it is .the only income level which qualified as creditworthy. The city requires that the lender servicer only process and approve those applications falling between the minimum and maximum income restrictions. (iii) Other Pertinent Information. None. (iv) Related Policies. A description of how the city's low-income housing assistance policies relate to its housing and development policies to form a general plan is attached. (See Attachment "A"). C. COMPLIANCE WITH PREVIOUS REPORT This Policy Report is in compliance with the Policy Report published March 11, 1985 under Section 103A. D. COMPLIANCE WITH INTENT OF CONGRESS For the purpose of this report dated October 31, 1985, the city of Huntington Beach has issued no Single-Family Mortgage Revenue Bonds this year. The following information is provided with respect to the 1984 Bonds: In August 1984, the city of Huntington Beach issued Single-Family Mortgage Revenue Bonds in the aggregate principal amount of $20,000,000. As of October 31, 1985, $3,002,150.58 was the principal balance of loans purchased on the 1984 Single Family Mortgage Revenue Bond Program. 0396H - 4 - E. SUMMARY OF HEARING COMMENTS A public hearing on the proposed Policy Report was duly noticed and held on October 21, 1985. The following comments were received: Honorable Ruth Bailey Mayor (SEAL) ATTEST: City Clerk 0396H - 5 - ATTACHMENT "A" SINGLE FAMILY MORTGAGE REVENUE BOND HOUSING POLICIES REPORT The City of Huntington Beach has adopted three goals for its housing program which are consistent with State and Regional housing policies. These goals are: 1) The attainment of decent housing within a satisfying living environment for households of all socioeconomics, racial, and ethnic groups in Huntington Beach. 2) The provisions of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the city. 3) The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services. In order to progress toward the attainment of these goals, the city has committed itself to five issue areas which are identified by the California Department of Housing and Community Development as important priorities in addressing local housing problems. ACCESSIBILITY: To provide housing opportunities for all households regardless of race, color, religion, sex, family size, marital status, national origin, ancestry, age, or physical desirability. Policies - in order to assure accessibility to decent housing for all, the city of Huntington Beach shall: Promote fair housing practices throughout the city. Encourage the provision of adequate numbers of housing units to meet the needs of families of all sizes. Programs - The city contributes $20,000 - $25,000 in CDBG funds to the Fair Housing Council of Orange County for each program year. The city has made available Redevelopment Agency-owned property within the Talbert Beach Redevelopment Project Area for the construction of 164 units of senior citizen housing. ADEQUATE PROVISIONS To provide for the housing needs of all economic segments of the community. Since it is unlikely that market forces alone will produce enough affordable housing for low and moderate income households, it is necessary to address this need through the use of those public powers which impact housing. 0396H SFMRB Housing Policies Report November 15, 1984 Page Two Policies - Promote adoption of development standards which reduce housing costs. Continue to expedite the permit process for residential projects. Continue and expand utilization of Federal and State housing assistance programs. Encourage the participation and financial commitment of private entities in attaining household goals. Promote the availability of sufficient rental housing stock to afford maximum choice of housing type for all economic segments of the community. Programs - Provides tax-exempt single-family mortgage revenue bonds to provide below-market rate financing for moderate income first-time buyers. Provide consultation and technical assistance to aid private developers in expanding housing opportunities. Initiated an outreach campaign to solicit participation of private developers in affordable housing and programs. Continue to provide tax-exempt mortgage financing for new multi-family housing. STANDARDS AND PLANS FOR ADEQUATE SITES To satisfy the housing needs of all segments of the community through the provisions of adequate sites for housing of all types sizes and prices. Policies - Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible with surrounding land uses and available services in order to lower the cost of housing. Utilize surplus park and/or school sites for residential use where appropriate and consistent with the city's General Plan. Programs - The investigation of the feasibility of utilizing vacated school and park sites and other publicly owned land for low and moderate cost housing. Investigating General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. 0396H SFMRB Housing Report November 15, 1984 Page Three PRESERVING HOUSING AND NEIGHBORHOODS The city has identified several neighborhoods and areas of deteriorated older housing units. These neighborhoods have been designated as targets for rehabilitation under the Community Development Block Grant Program. Policies - Encourage the rehabilitation of substandard and deteriorating housing where feasible. Provide and maintain adequate level of community feasibilities and municipal services in all community areas. Programs - Reviewing all changes in planned land uses to determine the cumulative impact on community facilities. Make available low-interest rehabilitation loans for low-income owner occupied housing. Actively enforcing land use ordinances. PRESERVING AFFORDABILITY To make housing available to all economic segments of the community by ensuring that assisted housing remains affordable to the income groups for which it was intended or which presently occupy it. Policies- Promote and, where possible, require the continued affordability of all units produced with participation by the city or its authorized agents, including density bonuses and tax-exempt financing. Programs - Overseeing the requirements for continued affordability of low and moderate income units produced under the housing program with tax-exempt financing. Creating and maintaining an inventory of sites potentially suitable for affordable housing and refer those to private developers. The city issued SFMRB's in 1983 an 1984. The income limits for buyers under these programs assure that lower income households receive assistance in priority to higher income households. 0396H LEGAL NOTICE SINGLE FAMILY MORTGAGE REVENUE BOND HOUSING POLICIES REPORT ADOPTED BY CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ON OCTOBER 21, 1985 Notice is hereby given that at its regular meeting of October 21, 1985, the City Council of the city of Huntington Beach, after the conduct of a duly advertised public hearing, adopted the Single-Family Mortgage Revenue Bond Housing Policies Report dated October 31, 1985. The published report is available for review through October 31, 1985 at the office of the City Clerk, 2000 Main Street, Huntington Beach, CA 02648. Dated: October 22, 1985 Alicia M. Wentworth City Clerk City of Huntington Beach 1445h Res. No. 5589 STATE OF CALIFORNIA COUNTY OF ORANGE ) s s CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that .the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 21st day of October , 19 85 , by the following vote: AYES: Councilmen: Kelly, Mandic, Bailey, Finley, Green, Thomas NOES: Councilmen: None ABSENT: Councilmen: MacAllister City Clerk and ex-officio Clerk of the City. Council of the City of Huntington Beach, California