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HomeMy WebLinkAboutCity Council - 96-21 RESOLUTION NO.9 6-21 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 entered into a Cooperative Agreement with the County to permit the operation of the Program within the boundaries of the City on August 25, 1994; 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 4WCD:Resolution:Mortgage Creditl2/27/96 RLS 96-102 Section 8969.85 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 tree 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 reaffirmed. 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 2 4�s1PCD:Resolution:Mortgage Crcdit12J2V96 RLS 96-102 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 Assistant City Administrator or a Deputy City Administrator 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$30,000.00 for application to the issuance of mortgage credit certificates by the County. The City Administrator, or an aforementioned 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 an aforementioned 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 aforementioned 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 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 certify the vote adopting this resolution. 3 4tis1PCD:Reso1ution:Mortgage Creditl2l27196 RLS 96-102 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the j_g th day of March , 1996. Mayor AT ST: APPROVED AS TO FORM: City Clerk ty Atto Z y j- `�,6 I REVIEWED AND APPROVED: INITIATED AND APPROVED: City Adnunistrator Director of Economic Development 4 4lsTCD:Resolution:Mortgage Credit%V27/96 RLS 96-102 i Exhibit A COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF HUNTINGTON BEACH REGARDING THE MORTGAGE CREDIT CERTIFICATE PROGRAM THIS COOPERATIVE AGREEMENT (the"Cooperative Agreement") is hereby made and entered into as ofi1G((, T o� , 19 , by and between the County of Orange, a legal subdivision and body corporate and politic of the State of California (the "County"), and the City of Huntington Beach, a California municipal corporation (the"City"). WITNESSETH WHEREAS, the County has determined 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") in connection with the construction and acquisition of homes in the County, all as provided for in said Act; and The County has determined to finance the Program by the issuance of mortgage credit certificates as authorized by the Internal Revenue Code of 1986 (the"Code"); and The County, pursuant to the Act, has established the Program, and has determined to cooperate with the City pursuant to the Act and in the exercise of their powers under the Act for purposes of the Program; and The City has adopted the Program and determined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: 1 41s:G:Agree:Mortgage Credit17121l44 1. Definitions. The words and phrases of this Cooperative Agreement shall, for all purposes hereof unless otherwise defined herein, have the same meanings assigned to such words and phrases in the Act. 2. County o Undertake the Program. The County agrees to use its best efforts to undertake the Program and to issue mortgage credit certificates therefor pursuant to the Act and the Code from time to time to the extent that the County receives allocations from the California Debit Limit Allocation Committee ("CDLAC"). 3. General Plan Adoption. The City represents and warrants to the County that: (I) the City has heretofore adopted a general plan for the City in conformance with the provisions of the Planning Zoning Law of the State of California(Government Code Sections 65000, et seq.), (ii) said general plan includes a land use element as required by Government Code Section 75302, and (iii)the Program complies with said land use element and housing element. 4. Mortgage Credit Certificates. The City agrees that the County may issue mortgage credit certificates under the Program, as specifically set forth in the Act and the Code, with respect to property located within the geographic boundaries of the City. At the expiration of one year from the date funds become available to the City from an allocation under the Program, the County may review the City's progress in committing funds from such allocation and, following consultation with the City, may reallocate to another city or public agency agreeing to participate in the Program or already participating in the Program any unused portion of such allocation. 5. Deposit and Payment by City. The City agrees to make any deposit required by CDLAC for an application for a mortgage credit certificate allocation. The City further agrees to pay the County its proportionate share (based upon the number of participants in 2 4\s:G:Agree:Mortgage Credit%7121/94 the Program) of administration costs applicable to each allocation received from CDLAC, which share is estimated not to exceed $15,000. b. Other Necessary Actions. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Cooperative Agreement. 7. Other Agreements. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements with other public bodies and political subdivisions within the County, if deemed necessary and advisable to do so by the County. 8. Amendments. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which all adversely affect the rights of the owners of any mortgage credit certificates issued by the County in connection with the Program. 9. E ix� ration. This Cooperative Agreement shall expire and be of no further force and effect upon agreement of the parties hereto. 3 41s:GAgree_Mortgage Greditl7l21/94 IN WITNESS WI-EREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the date first above written. COUNTY OF ORANGE Chairman of the Board of Supervisors SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OF SUPERVISORS a I 4-"&; 1 "Z'� APPROVED AS TO FORM: z f y Clerk the Board of Supervisors Coii6y Counsel CITY OF HUNTINGTON BEACH By' Mayor (SEAL) ATTES WED ] APPR City Clerk / City Administrator APPROVED AS TO FORM: IiVITD AND' ,APPROVED: G /'r ' 1 i City Attorney Director of Special Projects 4 41s:G:Agrec:Mortgage CreditW/2 V94 Res. No. 96-21 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 18th of March, 1996 by the following vote: AYES: Councilmembers: Harman, Sullivan, Dettloff, Green,Leipzig,Bauer, Garofalo NOES: Councilmembers: None ABSENT: Councilmembers: None The foregoing instrument is a correct copy of the original on file in this office, Attest ID" .,,. City Clerk and ex-officio Clerk of the Cite i;lerk and Ex-officio filetk of th.6 MY City Council of the City of Huntington Council of the City of Huntington Beach, California. 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