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HomeMy WebLinkAboutCity Council - 6617 RESOLUTION NO_ U17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A MORTGAGE CREDIT CERTIFICATE PROGRAM IN COOPERATION WITH THE COUNTY OF ORANGE WHEREAS, there is a shortage in the County of Orange (the"County") and in the City of Huntington Beach (the"City") of decent, safe and sanitary housing, particularly of housing affordable by first-time buyers, and a consequent need to encourage the availability of homes affordable by such persons and otherwise to increase the housing supply in the City and in the County for such persons; and The Board of Supervisors of the County has declared its intent to engage in a mortgage credit certificate program(the"Program") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California(the"Act") and to issue mortgage credit certificates pursuant to the Act to provide funds for the Program; and The City desires to enter into a Cooperative Agreement with the County to permit the operation of the Program within the boundaries of the City; and Section 146 of the Internal Revenue Code of 1986, as amended (the"Code"), limits the amount of mortgage credit certificates that may be issued in any calendar year by entities within a state and authorizes the governor or the legislature of such state to provide the method of allocation within such 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(the"State") having the authority to issue mortgage credit certificates; and 1 4tis1AG:Reso1ut:Mcntgage Credit%7/21/94 Section 8869.85 of the Government Code requires a local agency to file an application for a portion of the state ceiling with or upon the direction of the California Debit Limit Allocation Committee ("CDLAC") prior to the issuance of mortgage credit certificates; and The City desires that the County file an application with CDLAC on behalf of the City for an allocation of authority to issue mortgage credit certificates and elects to transfer to the County pursuant to Section 8869.5(d) of the Government Code, the total amount, if any, of such authority allocated to the City; and One percent of the amount of the allocation to be requested on behalf of the City is to be held in an account established by the City pursuant to Section 8869.84 of the Government Code and the Regulations of CDLAC; NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. Each of the foregoing recitals is true and correct. SECTION 2. The City hereby adopts the Program for the purpose of increasing the housing supply in the County and in the City and consents to the operation of the Program by the County with respect to all property located within the geographic boundaries of the City, including the payment to the County of the City's proportionate share (based upon the number of participants in the Program) of administration costs applicable to the allocation received from CDLAC, which share is estimated not to exceed $15,000. SECTION 3. The Cooperative Agreement between the County and the City(the "Agreement"), a copy of which is attached hereto as Exhibit A, is hereby approved, and the Mayor is hereby authorized and directed to execute and deliver the Agreement, for and in the name and on behalf of the City. The Mayor, with the advice and consent of the City Attorney, is 2 41s1G:Reso1ut:Mortgage Credil17/21/94 6617 authorized to approve any additions to or changes in the form of the Agreement deemed necessary or advisable, approval of such additions or changes to be conclusively evidenced by execution by the Mayor of the Agreement as so added to or changed. The Mayor, with the advice and consent of the City Attorney, is further authorized to enter into such additional agreements with the County, execute such other documents or take such other action as they may deem necessary or appropriate to carry out the purpose and intent of the Agreement or to cooperate in the implementation of the Program. SECTION 4. The City Administrator, or his designee, is authorized, on behalf of the City, to take such steps and execute such documents as are deemed necessary for the submission of an application to CDLAC on behalf of the City for an allocation in the amount of approximat:eiy $ -3 mi 11 i on for application to the issuance of mortgage credit certificates by the County. The City Administrator, or his designee, is also authorized to certify to CDLAC that an amount equal to 1% of the allocation requested is on deposit in an account established by the City. SECTION 5. The City hereby authorizes the transfer to the County of the total principal amount, if any, of the authority to issue mortgage credit certificates allocated to the City by CDLAC. The City Administrator, or his designee, on behalf of the City, is authorized and directed to take such steps and execute such documents as are necessary to effect the transfer of such allocation to the County solely for application to the issuance of mortgage credit certificates, which are to be used to induce the origination of home mortgage loans to qualifying persons. SECTION 6. The officers and employees of the City are authorized and directed,jointly and severally, to do any and all things necessary or advisable in order to effectuate the purposes of this resolution or the issuance of the mortgage credit certificates by the County, and all actions 3 4�s1G:Resolut:Mortgage CrediO/21/94 6 617 previously taken by such officers and employees in connection with the application of the allocation authorized to be requested are ratified and approved. SECTION 7. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certified the vote adopting this resolution. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2nd day of August , 1994. —'I— Mayor ATTEST: APPROVED AS TO FORM: -"t"�- - ZL�' City Clerk ' �,�� tt ttorney 7—Z' `f REVIEWED AND APPROVED: INITIATED AND APPROVED: F J 7 VoJ Cit �dm�mistrator Director of Sp cial Projects 4 41s1G:Resolut:Mongage Creditl7/21/94 6617 Mess. No. 6617 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 an adjourned re lar meeting thereof held on the 2nd of August,1994, by the following vote: AYES: Councilmembers: Silva, Bauer, Robitaille, Moulton-Patterson, Winchell, Sullivan, Leipzig NOES: Councilmembers: None ABSENT: Councilmembers: None City Clerk and ex-officio erk of the City Council of the City of Huntington Beach, California