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HomeMy WebLinkAboutCity Council - 6185 RESOLUTION NO. 6185 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE CITY'S PARTICIPATION IN A HOME PURCHASE LOAN PROGRAM WITH THE SOUTHERN CALIFORNIA HOME FINANCING AUTHORITY, AND AUTHORIZING AN APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION FOR THE ISSUANCE OF QUALIFIED MORTGAGE BONDS AND THE TRANSFER OF SUCH ALLOCATION TO THE SOUTHERN CALIFORNIA HOME FINANCING AUTHORITY WHEREAS, there is a shortage in the City of Huntington Beach (the "CITY") of decent, safe and sanitary housing, particularly of housing affordable by first-time homebuyers and a consequent need to encourage the construction of homes affordable by such persons and otherwise to increase the housing supply in the City for such persons; and The Southern California Home Financing Authority (the "Authority") , a joint powers authority of which the County of Orange is a member, will engage in a program for the improvement and rehabilitation of homes within the jurisdiction of the Authority (including the City) by providing mortgages to qualifying mortgagors for such purposes (the "Program") , pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") , and intends to provide funds for the Program through the issuance of single family mortgage revenue bonds (the "Bonds") ; and The City has found and determined that it is in the best interest of the City to participate in the Program in conjunction with the Authority in order to provide funds for the purchase of homes in the City; and - 1 - The Bonds will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code") ; and Section 146 of the Code limits the amount of private activity bonds that may be issued in any calendar year by entities within a state; and Chapter 11. 8 of Division 1 of Title 2 of the Government Code of the State of California (the "Government Code") governs the allocation of the state ceiling (as that term is defined in the Code) among governmental units in the State of California having the authority to issue private activity bonds; and Section 8869 . 85 of the Government Code requires a local agency desiring an allocation of the state ceiling to file an application with the California Debt Limit Allocation Committee (the "Committee") for such allocation; and The City has determined to apply for an allocation of authority to issue private activity bonds which are "qualified mortgage bonds" within the meaning of Section 143 of the Code, and to transfer to the Authority, pursuant to Section 8869 .85(d) of the Government Code, the total amount, if any, of authority to issue private activity bonds allocated to the City from the state ceiling, to allow the Authority to issue the Bonds; and One percent of the amount of the allocation to be requested by the City is required to be held in an escrow account, pursuant to Section 8869 . 84 of the Government Code and the procedures of the Committee; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach: - 2 - 6185 SECTION 1. Each of the foregoing recitals is true and correct. SECTION 2 . The City' s participation in the Program is hereby approved. SECTION 3 . The City Administrator or his designee is hereby authorized to submit an application on behalf of the City, either independently or in conjunction with the Authority as such officer shall determine, and such other documents as may be required, to the Committee for an allocation of the state ceiling in an amount not to exceed the maximum amount for which the City may apply pursuant to the procedures of the Committee, for application towards the issuance of qualified mortgage bonds, the amount to be applied for to be determined by the City Administrator or his designee, upon consultation with the Authority. SECTION 4 . It is hereby authorized that, following receipt, the allocation authorized to be requested hereby, or so much thereof as is allocated to the City by the Committee, be transferred to the Authority, to enable the Authority to issue qualified mortgage bonds and use the proceeds thereof in order to induce the origination of home mortgage loans for the purchase of homes for qualifying persons residing within the City, elsewhere in the County of Orange and in other counties which are members of the Authority. Th City Administrator or his designee is hereby directed to take such steps and execute such documents as are necessary to effect the transfer of any allocation of the state ceiling received by the City to the Authority. SECTION 5. The officers and employees of the City are hereby authorized and directed, jointly and severally, to do any and all things necessary or advisable in order to effectuate the purposes - 3 - 6185 of this resolution or the issuance of the Bonds by the Authority (including the establishment of an escrow account in an amount equal to one percent of the amount of the allocation determined to be requested, to be utilized pursuant to the procedures of the Committee) , and all actions previously taken by such officers and employees in connection with the application for an allocation of a portion of the state ceiling are hereby ratified and approved. SECTION 6 . This Resolution shall take effect from and after its adoption. PASSED, APPROVED AND ADOPTED ON July 16 1990 . Mayor ATTEST: APPROVED AS TO FORM: z City Clerk Cit Attorney 4 - 6185 Res. No. 6185 STATE OF CALIFORNIA COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, 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 at least a majority of all the members of said City Council at a regular meeting thereof held on the 16th day of July 19 U , by the following vote: AYES: Councilmembers: MacAllister, Winchell, Green, Mays, Bannister, Silva, Erskine NOES: Councilmembers: None ABSENT: Councilmembers: None city MerF and ex-oMQM Clerk of the City Council of the City of Huntington Beach, California I '