HomeMy WebLinkAboutCity Council - 97-1 RESOLUTION NO. 9 7-1
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
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Code) among governmental units in the State of California(the"State")having the authority to
issue mortgage credit certificates; and
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.
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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
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$30,000,000.00 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 S. 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.
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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.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach
at a regular meeting thereof held on the 6th day of January, 1997.
A*4 f''`�
Mayor
ATTEST: APPROVED AS TO FORM:
000
��
City Clerk City Attorney
Fcr76 P
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City AdKiinistrator T Director of Economic Development
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r
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 of T a5 , 19_q�, 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").
WTTNESSETI3
WFHEREAS, 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 vrith 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 prodded, the
parties hereto agree as follows:
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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 to 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 C CDLAC").
3. General Plan Adoption. The City represents and warrants to the County that:
(1) 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.), (H) 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. Mort gage 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
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the Program) of administration costs applicable to each allocation received from CDLAC, which
share is estimated not to exceed $15,000.
6. Other Necessafy 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.
S. 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. Expiration. This Cooperative Agreement shall expire and be of no further force
and effect upon agreement of the parties hereto.
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IN WITNESS WHEREOF, 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
By:
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
APPROVED AS TO FORM: r
Clerk�lf the Board of Supervisors
Co my Counsel
CITY OF HUNTINGTON BEACH
By f
Mayor
(SEAL)
ATTEST / WED APPR
T,
Wu� 5j
City Clerk g131, City Administrator
APPROVED AS TO FORM: IMT T4D ANDi APPROVED:
G _ /lu r
City Attorney Director of Special Projects
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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 Gth day of January, 1997 by the following vote:
AYES: Julien, Harman, Dettloff, Bauer, Sullivan, Green, Garofalo
NOES: None
ABSENT: None
City Clerk and ex-officio Clerk of the
City Council of the City of Huntington
Beach, California
G/reso1uti/resbkpgi96-100