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HomeMy WebLinkAboutMORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM - 1994-08-02D. 9105, �(N-v Council/Agency Meeting Held: �' 0 Deferred/Continued to: 'AA proved 0 Con Tonally Approved ❑ Denied Paz►. ' CI ' Signature Council Meeting Date: March 19, 2001 Department ID Number. ED 01-12 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS '5 .c SUBMITTED BY: RAY SILVER, City Administratora7W . =� - F• PREPARED BY: DAVID C. BIGGS, Director of Economic Development SUBJECT: APPROVE CONTINUATION OF 2001 MORTGAGE CREDIT CERTIFICATE PROGRAM Statement of Issue, Funding Source, Recommended Action, AttematM Action(s), Analysis, Environmental Status, Attactvnent(s) Statement of Issue: The Mortgage Credit Certificate (MCC) program has been active in the city since its inception in 1994, and is designed to assist first time homebuyers with their purchase of a single-family home. This is an ongoing, annual program and City Council is asked to reaffirm the Cooperative Agreement between the County of Orange and the city (Attachment 1), through which the program operates. Fundinci Source: No funds required at this time. Recommended Action: Motion to: 1. Reaffirm continuation of the Mortgage Credit Certificate program as set forth in Resolution 97-001, adopted by City Council on January 6, 1997 (Attachment 1), and 2. Reaffirm continuation of the Cooperative Agreement between the County of Orange and the City of Huntington Beach Regarding the Mortgage Credit Certificate Program, approved by City Council on August 25, 1994. Alternative Action(s): Do not reaffirm continuation of Resolution 97-001 and Cooperative Agreement with the County of Orange. REQUEST FOR COUNCIL ACTION MEETING DATE: March 19, 2001 DEPARTMENT ID NUMBER: ED 01-12 Analysis: The MCC program, originally authorized by Congress in the Tax Reform Act of 1984, provides a means to assist first time homebuyers with the purchase of a single-family home. A Mortgage Credit Certificate, through Resolution 97-001 and Cooperative Agreement, is issued by the County of Orange to the homebuyer, and decreases the amount of federal withholding from the homebuyers' wages. This increased after tax income assists the eligible homebuyer in qualifying for the mortgage. Participation in this program is consistent with the city's stated goal to provide diverse housing stock and maintain the quality of the city's existing housing stock. In 2000, two first time homebuyers were assisted in their purchase of homes in Huntington Beach through this program. Environmental Status: N/A Attachment(s): 1. 1Resolution No. 97-001, Adopting Mortgage Credit Certificate Program in Cooperation with the County of Orange. 2. ICooperative Agreement between the County of Orange the City of Huntinqton Beach Reqardinq the Mortgage Credit Certificate Proqram. RCA Author: L Brunson x5529 Mcc2001 -2- 3/7101 10:17 AM Resolution No. 97-1 ATTACHMENT #111 RESOLUTION 140. 97-1 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 reed 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 Progra.-n; 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 mithin such state; and Chapter 11.8 of Division I of Title 2 of the Government Code of the State of California (tlie "Goverrunent Code") governs the allocation of the state ceiling (as that term is defined in the E 4xPrCQ:Rcw1u i%,%n: \1otCrCctt 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 I. 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, %Y-bicl: share is estimated not to exceed V5,000. 2 -1Xs%PCD.Rcu1L31*L+n.- \IL%fCrCcn 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 otF.er 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 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 Cityjs 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 induct the origination of home mortgage loans to qualifying persons. a .tUTCD.Rcsolodon; NIorCrCcn WIN% SECTION 6. The aforcmentioned officers and employees of the City are authorized and directed, jointly and severally, to do any and aII 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 6 th day of January,1997. ATTEST: City Clerk REVIEWED AND APPROVED: _ -e.., City A ninistrator Mayor APPROVED AS TO FORM: City tY Attome Y ! 1/,7ai f�INMATED AND APPROVED: - &)ff � - Director of Economic Development 4 -1Xsu'CO:Rcw1&t1;oi%: MorCrCcrc Res. No. 97-1 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: _ CITY OF AUNTINGTON BEACH } r I, CONIM BROCKWAY, the duly elected, qualified City CIerk 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 6th day of January,1997 by the following vote: AYES: Julien, Harman, Dettloff, Bauer, Sullivan,Green, Garofalo \OES: None ABSENT: None 11 City Clerk and ex-offcio Clerk of the City Council of the City of Huntington Beach, California I Cooperative Agreement ATTACHMENT #2"'I'll... 1 V • ., rr \t .ram ' i • • Exhibit .4 COOPERATIVE AGREEMENT BETWEEN + THE COUNTY OF ORANGE AND THE CITY OF HUZ`TTIIIGTON BEACH REGARDING THE MORTGAGE CREDIT CERTIFICATE PROGRAM ` THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby:made . and entered into as of �Ir t`,�r _�s_ , i9, 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 WE EREAS, 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 eonnectionwith 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 deternuned'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 ofthe mutual covenants hereinafter provided, the parties hereto agree as follows: 1 . . 1. Definitions. The words and phrases of this Cooperative Agreement shall, for a purposes hereof unless otherwise defined here4 have the same meanings assigned to such words and phrases in the Act. 2, Counly to Undertake the Pra am. 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; (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 Ca?i.-ornia (Government Code Sections 65000, et seq.), (u7 said general plan includes a land use element as required by Govern,�rrenf Cod-- 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 orpublic 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 participanti in - . R the Program) of administration costs applicable to each allocation received from CDLAC, which r - share is estimated not to exceed S15,000. - - 6• QtherNecessa Actions. Thy City agrees to undertake such further proceedings or actions as may be necessary in order to carry out.the terms and the intent ofthis Cooperative Agreement. S. 7. Qther 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 Count), and the City at any time, except that no such amendment or supplement shall be made which a1 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. - , IN WITNESS WBEREOF, the parties hereto have caused this Cooperative A•greemery ' • "� be executed and attested by their proper. officers (hereunto duly authorized, znd their official seals • to be hereto affixed, all as of the date first above written. - COUNTY 4F ORANGE SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUM= HAS BEEN DELWERED TO THE CB[A]RMAN OF THE BOARD OF SUPERVISORS Clerkdt the Board of Supervisors .x� Chairman ofthe Board of Supervisors APPROVED AS TO FORM: Co my Counsel CITY OF ECUNTINGTON BEACH -��Z. i.r - 6 Mayor (SEAL) ATTEST- WED APPR .�'is-sue C.fct�v ` • City Clerk f�3 j City Ad�ranistrator /y - ' - APPROVED AS TO FORM: iNIT ,, D AND APPROVED: City Attorney {'.mac Director of Special Projects 7- ; /-4v q GC 4 z _x V C14 4 44:c:AZrm.%soAt,tc Crcaln7r11194 k..i RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Continuation of 2001 Mortgage Credit Certificate (MCC) Program COUNCIL MEETING DATE: March 19, 2001 RCA ATTACHMENTS STATUS Ordinance wlexhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Sign e d in full b y fhe City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by gLtZ Attome Not Applicable Certificates of Insurance A roved ty the Crt Attorne Not Applicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report if applicable) Not Applicable Commission, Board or Committee Report If a licable Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS - REVIEWED RETURNED FORWARDED Administrative Staff 3 ?11 Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: @�-- %1) � U. [3I66S,V.-(jQ N L.- - 139tANSor1i I V, . �v _ Council/Agency Meeting Held: 3 - 2-0 -- 00 Deferred/Continued to:'j r Approved .,a Cott ditionalty Approved O DenIed le 's Signature Council Meeting Date: March 20, 2000 Department ID Number. ED 00-12 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION N SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS =a �= `=74 -- SUBMfTTED BY: RAY SILVER, City Administrat< PREPARED BY: DAVID C. BIGGS, Director of Economic Development SUBJECT: APPROVE CONTINUATION OF 2000 MORTGAGE CREDIT CERTIFICATE PROGRAM Staterrwa of issue. Funding Source, Reconvnended Action, Alternative Adon(s}, Analysis, Environmental status, AttacMmd(s) Statement of Issue: The Mortgage Credit Certificate (MCC) program has been active in the city since its inception in 1994, and is designed to assist first time homebuyers with their purchase of a single-family home. This is an ongoing, annual program and City Council is asked to reaffirm the Cooperative Agreement between the County of Orange and the city (Attachment 1), through which the program operates. Fundina Source,: Redevelopment Housing Set Aside Funds, currently held in an account established by the city pursuant to Section 8869.84 of the Government Code, used for the city's share of program administrative costs only. Recommended Action: Motion to: 1.) Reaffirm continuation of the Mortgage Credit Certificate program as set forth in Resolution, 97-001, adopted by City Council on January 6, 1997 (Attachment 2), and 2.) Reaffirm continuation of the Cooperative Agreement between the County of Orange and the City of Huntington Beach Regarding the Mortgage Credit Certificate Program, approved by City Council on August 25, 1994. Alternative Action(sl: Do not reaffirm continuation of Resolution 97-001 and Cooperative Agreement with the County of Orange. � -3 REQUEST FOR COUNCIL ACTION MEETING DATE: March 20, 2000 DEPARTMENT ID NUMBER: ED 00-12 Analysis: The MCC program, originally authorized by Congress in the Tax Reform Act of 1984, provides a means to assist first time homebuyers with the purchase of a single-family home. A Mortgage Credit Certificate, through Resolution 97-001 and Cooperative Agreement, is issued by the County of Orange to the homebuyer, and decreases the amount of federal withholding from the homebuyers' wages. This increased after tax income assists the eligible homebuyer in qualifying for the mortgage. Participation in this program is consistent with the city's stated goal to provide diverse housing stock and maintain the quality of the city's existing housing stock. In 1999, three first time homebuyers were assisted in their purchase of homes in Huntington Beach through this program. Environmental Status: N/A Aftachment(s): Resolution No. 97-001, Adopting Mortgage Credit Certificate Program in Cooperation with the County of Orange 2 1 Cooperative Agreement between the County of Orange the City of Huntington Beach Reaardina the Mortaaae Credit Certificate Program RCA Author: L Brunson x5529 MCC Continuation -2- 2/29/00 3:00 PM Resolution No. 97-1 ATTACHMENT #1. k.� RESOLUTION 140. 97-1 A RESOLUTION OF THE CITY COUNCIL OF 4 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 (tlie "City') of decent, safe and sanitary housing, particularly of Dousing 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 3.1 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 "Goverrunent Code") governs the allocation of the state ceiling (as that term is defined in the h V100 4WrCD:Rcsk%1ut!on. '.%lorCrCcn 12r?1.bG Code) among governmental units in the State of Califomia (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 CCDLAC") 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 thcdrogram 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. b 2 4xs%rcD' tcsalurton: MorCrCcrt 1212 ],'96 itLS 96-SS5 V V 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 S30,000,000.00 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 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 Cityjs 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. 4VWD.Rcsolution: WrCrCcrt 12123196 RLS 96-Sac L Q 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 ilia 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 6t:h day ofJanuar , 1997. ATTEST: City Clerk REVIEWED AND APPROVED: City ACninistrator 4 3Xs%PCo.Rcs011t1ip1%: \torCrCcn 12123/96 RLS 96•cc5 Mayor APPROVED AS TO FORM: r-r �..• CityAttorney y jr J�y f INITIATED AND APPROVED: Director of Economic Development V Res. No. 97-1 STATE OF CALIFORNIA ) COUNTY OF ORANGE } ss: CITY OF HUNTINGTON BEACII ) 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 6th day of January, 1997 by the following vote: AYES: Julien, Harman, Dettloff, Bauer, Sullivan,Green, Garofalo TOES: None ABSENT: None -L� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G Irrsofuti'robLpr,9G•too V Cooperative Agreement ...ATTACHMENT" #2 Exhibit A _ COOPERATIVE AGP.EUENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF HUITMGTON BEACH • REGARDING THE A10RTGAGE CREDIT CERTIFICATE PROGRAM THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is herebymade and entered into as of d5' 19QV . 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 "Cit,/). W=SSETH WHEREAS, the County has determined to engage in a mortgage credit certificate ' program (the "Program") pursuant to Part 5 of D:,vision 31 of the Health and Safety Code of the State of California (the "Act") in connection witla the construction and acquisition of homes in the County, all as provided for is 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 ar:d 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 tl~_ Act for the purposes of the Program; NOW, THEREFORE, in consideration of tht mutual covenants hereinafter provided, the parties hereto agree as follows: I• Definitions. Thewords znd phrases of this Cooperative Agreement shall, for a purposes hereof unless otherwise defined herein have the same rnea.nings 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 ("CDLAC"). 3• General Plan Adoption. The Cityrepresents 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 Ca,3ifarnia (Government Code Sections 65000, et seq.), Cu) said general plan includes a land use element as required by Government Code Section 7 53 02, and (M) the Program complies with said lard use element and housing element, 4. Iyiortgzge Credit_ Certificates, The City agrees that the County may issue mortgage credit certificates under the Program, as spedficzlly 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 comnilaing funds from such allocation and, following consultation with the City, may reallocate to znotlier 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 Pa, ent 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 - jv •..r the Program) of administration costs applicable to each allocation received from CDLAC, which • share is estimated not to exceed $15,000. ' 6. 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. S. Aanendments. 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 arnendment or supplement shall be made which a'I adversely zTect the rights ofthe owners of any mortgage credit certificates issued by the County Ln connection with the Program. 9. Exoiration. This Cooperative Agreement shall expire and be of no further force and effect upon agreement of the parties hereto. 3 IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreemen' be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the date fast above written. SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OF SUPERVISORS ' Clerk 'the Board of Supervisors (SEAL) COUNTY'OF ORANGE r BY. Chairman of the Board of Supervisors APPROVED AS TO FORM: Co my Counsel CRY OF MM119GTON BEACH B �✓ Mayor ATTEST• VYED APPR City Clerk 3� City Administrator APPROVE D AS TO FORM: IMT D AND APPROVED: City Attorney Director of Special Projects _ 4 4h:G:Agec:%fortgaye CrcEit%7l2Z/94 i , i INITIATING DEPARTMENT: Economic Development SUBJECT: Continuation of 2000 Mortgage Credit Certificate (MCC) Program COUNCIL MEETING DATE: March 20, 1999 RCA ATTACHMENTS TATUS ..... Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) Si ned /n full by the Cit Attomyj Not Applicable Subleases, Third Party Agreements, etc, (Approved as to form by gt Attomn Not Applicable Certificates of Insurance (Approved by the qLty Attomn ) Not Applicable Financial Impact Statement Unbud et, over $5,000) Not applicable Bonds If applicable) Not Applicable Staff Report (if applicable) Not Applicable Commission, Board or Committee Report If applicable) Not,Applicable Findings/Conditions for Approval and/or Denial Not Applicable il , 11, FTI i no Z I ff®_ 61 , EXPLA ATI,QhI FOR RETURN OF ITEM: Council/Agency Meeting Held: 2 / , Deferred/Continued to: Approved Con ti pally Ap roved O Denied �•O�� C' y Clerk's Signature Council Meeting Date: December 21, 1998 Department 1D Number: ED 98-21 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCILIREDEVELOPMENT AGENCY ACTION z w x SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL' MEMBERSIREDEVELOPMENT AGENCY MEMBERS r� SUBMITTED BY: Ray Silver, City Administrator/Executive Director +;a ot.�, 2 � PREPARED BY: DAVID C. BIGGS, Director of Economic Development �, n > SUBJECT: APPROVE CONTINUATION OF MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM Statement of Issue, Funding Source. Recommended Action, Alternative Action(s), Analysis. Environmental Status, Attachments) Statement of issue: Staff is requesting authorization to continue a first-time Home Buyers Cooperative Agreement between the County of Orange and the City of Huntington Beach for the Mortgage Credit Certificate (MCC). The City has assisted 41 first-time, low- and moderate -income home buyers through this program. Funding Source: Redevelopment Housing Set Aside Funds (a guarantee as required by the California Debt Limit Allocation Committee (CDLAC). Since program's inception in 1994, only $2,422.17 expenditure of funds has been required). Recommended Action: Motion to: Approve the continuation of the Mortgage Credit Certificate Program in cooperation with the County of Orange, as set forth in Resolution Number 97-001 adopted by the City Council on January 6, 1997. Alternative Action(s): Do not approve continuation of the Mortgage Credit Certificate Program in cooperation with the County of Orange. Analysis: The MCC program was originally authorized by Congress in the Tax Reform Act of 1984. This program provides an alternative to mortgage revenue bond financing to assist first-time home buyers with the purchase of single-family homes. The City Council originally REQUEST FOR COUNCIUREDEVELOPMENT /4dENCY ACTION MEETING DATE: December 21, 1998 DEPARTMENT ID NUMBER: ED 98-21 approved the Cooperative Agreement between the City and the County of Orange regarding the MCC program on August 2, 1994 and Resolution number 97-001 Adopting A Mortgage Certificate Program on January 6, 1997. The M04C provides a federal tax credit equal to 15% of the amount of interest paid on the home mortgage, and since 1994 the City has assisted 41 first-time, low- and moderate -income home buyers. An MCC is a certificate issued by the county which the homebuyer may immediately use to decrease the federal withholding from his or her monthly wages. The increased after-tax income helps the home buyer to qualify for the mortgage. The basic eligibility requirements for receiving a Mortgage Credit Certificate are: • First Time Homebuyer - The buyer cannot have had an ownership interest in a principal residence within the past three years prior to loan closing date. Funding Requirements - Household income must be below the following limits: 1 - 2 persons $65,800 3 or more persons $75,670 Purchase Price Requirements - Purchase price of the house must be below the following: New units (never occupied) $229,883 Existing units (resale) $204,937 Eligible Properties - Single-family homes including detached units, condominiums or townhomes. The City's financial involvement with this project is consistent with its stated goal of providing for a diverse housing stock and maintaining the quality of the housing stock throughout the community (City Goal #8 of the Housing Element). At the January 6, 1997 City Council meeting, $30,000 was appropriated for the Mortgage Credit Certificate Program from the unreserved low income housing funds. The funds have been placed into a separate account and will be held until the first MCC is issued from the new funding, then the funds will be released and returned to the City. If no MCCs are issued, that would be the only time that these monies would be expended. There might be a nominal administrative cost from the county if the fees from the first time home buyers do not meet all of the administrative costs incurred. Environmental Status: NIA Attachment(s): MCC.Doc -2- 12109198 2:06 PM REQUEST FOR CYUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: December 21,1998 DEPARTMENT ID NUMBER: ED 98-21 Resolution 97-001 Approved January 6, 1997 2 Cooperative Agreement Between the County of Orange and Huntington Beach Approved August 2, 1994. MCC.DOC -3- MOMS 3.10 PM 1-11,11,51iiiiii, 11, 111111 1 111111 il''If - - - - --------- IN RESOLUTION NO. 9 7-Z 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 3.1 of the Health and Safety Code of the State of California (the "Act" j 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 "Goverrunent Code") governs the allocation of the state ceiling (as that term is defined in the *&1rcD:Rcsoiwion: %TorCtCcn 1212�.�G kw 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 S15,000. 0 4\s%rCD:Rcso1u%ion: MorCrCcrt 12123;96 RLS 96•S85 N 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 liome mortgage loans to qualifying persons. J 4UTCD.Rcsolurion. h1orCsCcn 12/23196 RLS 96.835 k..) 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. r 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. ATTEST: City Clerk , REVIENVED AND APPROVED: City A ninistrator A# � A (9 �� � Mayor APPROVED AS TO FORM: crr City �. Y Attorne Y fr6P r tl—;. fu1NITIATED AND APPROVED: 4 Director of Economic Development 4\S\PCD:Resolution: \1orCfCcn t2/23196 RLS 9648S . , k..0 STATE OF CALIFORNIA } COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) Res. No. 97-1 1 s I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-oflicio 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 6th day of January,1997 by the following vote: AYES: Julien, Harman, Dettloff, Bauer, Sullivan,Green, Garofalo NOES: None ABSENT: None City Clerk and ex-offcio Clerk of the City Council of the City of Huntington Beach, California �r J G'resoluti'resblpg 96.100 COOPERATIVE AGREEMENT --AZ& 'V�, AT-y u COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF HUNTINGTON BEACH REGARDING THE MORTGAGE CREDIT CERTIFICATE PROGRAM Exhibit A' THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby --made and entered into as of_^tlr-[fST ��19,qtl, 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 ofHuntington Beach, a California municipal corporation (the "City"). WrINFSSMU WHEREAS, the County has determined to engage in a mortgage credit certificate program (the `Trogram") pursuant to Part 5 of DiAsion 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 Intemal 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, Definition . The words and phrases of this Cooperative Agreement shall, for a 1 purposes hereof unless otherwise defined herein have the same meanings assigned to such words and phrases in the Act. 2, _Qounlyto Undertake the Pro am. The County agrees to use its best efforts to Y 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: (n 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 Iand use element and housing element. 4. Mortizaoe Credit Certificates. Tl:e 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 ancther city or public agency agreeing to participate in the Program or already participating in the Program any unused portion of such allocation. S. 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 • � rJ • r • the Program) of administration costs applicable to each allocation received from CDLAC, which • r share is estimated not to exceed $15.000. 6. 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. r. 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, . 4. Expiration. This Cooperative Agreement shall expire and be of no further force and effect upon agreement of the parties hereto. 3 r IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreemen• ' "'I be executed and attested by their proper officers ihereunto duty authorized, and their official seals to be hereto affixed, all as of the date first above written. SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CELAIRMAN OF THE BOARD OF SUPERVISORS Clerk 'the Board of Supervisors (SEAL) COUNTY 'OF ORANGE 1� By: Chairman of the Board of Supervisors APPROVED AS TO FORM: r S v Co 'nty Counsel CITY OF E UNTINGTON BEACH Mayor ATTEST- WED APPR City Clerk 3� City Administrator APPROVED AS TO FORM: City Attorney f-X-1 INIT11) AND' ¢PPRRVED: !�J J!V j�L� fi r,•., r F Director of Special Projects 4 41s:0:Ar,ree:.Mortga1;e Crcdh%7l21194 v v RCA ROUTING SHEET INITIATING Economic Development DEPARTMENT: SUBJECT: Mortgage Credit Certificate I COUNCIL MEETING DATE: I December 21, 1998 1 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attomey) Not Applicable Subleases, Third Party Agreements, etc. , (Approved as to form PZ City Attomey) Not Applicable Certificates of Insurance (Approved by the City Attomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable E':PLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (initial) '- ( ) ( (29/ ) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: AR CouncillAgency Meeting Held: fdPh7 Deferred/Continued to: o� fin, D'Approved Conditionally Approv d 13 Denied -4 X City Clerkt Signature Council Meeting Date: November 3, 1997 Department ID Number: ED 97-48 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION Z z SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL MEMBERS/REDEVELOPMENT AGENCY MEMBERS kph SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator/Executive Directolv�.-��'^o PREPARED BY: DAVID C. BIGGS, Director of Economic Development SUBJECT: APPROVE CONTINUATION OF MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM Statement of issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Staff is requesting authorization to continue a first-time Home Buyers Cooperative Agreement between the County of Orange and the City of Huntington Beach for the Mortgage Credit Certificate (MCC). The City has assisted 37 first-time, low- and moderate -income home buyers through this program. Funding jourge: Redevelopment Housing Set Aside Funds (a guarantee as required by the California Debt Limit Allocation Committee (CDLAC). Since program's inception in 1994, expenditure of funds has not been required). 107-1 ll I ll VTM f• . WJ4. l • Approve the continuation of the Mortgage Credit Certificate Program in cooperation with the County of Orange, as set forth in Resolution Number 97-001 adopted by the City Council on January 6, 1997. Do not approve continuation of the Mortgage Credit Certificate Program in cooperation with the County of Orange. E-� REQUEST FOR 6dUNCIUREDEVELOPMENT A�ENCY ACTION MEETING DATE: November 3,1997 DEPARTMENT ID NUMBER: ED 97-48 Analysis: The MCC program was originally authorized by Congress in the Tax Reform Act of 1984. This program provides an alternative to mortgage revenue bond financing to assist first-time home buyers with the purchase of single-family homes. The City Council originally approved the Cooperative Agreement between the City and the County of Orange regarding the MCC program on August 2, 1994 and Resolution number 97-001 Adopting A Mortgage Certificate Program on January 6, 1997. The MCC provides a federal tax credit equal to 15% of the amount of interest paid on the home mortgage, and since 1994 the City has assisted 37 first-time, low- and moderate -income home buyers. An MCC is a certificate issued by the county which the homebuyer may immediately use to decrease the federal withholding from his or her monthly wages. The increased after-tax income helps the home buyer to qualify for the mortgage. The basic eligibility requirements for receiving a Mortgage Credit Certificate are: • First Time Homebuyer - The buyer cannot have had an ownership interest in a principal residence within the past three years prior to loan closing date. • Funding Requirements - Household income must be below the following limits: 1 - 2 persons $63,200 3 or more persons $72,680 Purchase Price Requirements - Purchase price of the house must be below the following: New units (never occupied) $229.883 Existing units (resale) $204,937 Eligible Properties - Single-family homes including detached units, condominiums or townhomes. The City's financial involvement with this project is consistent with its stated goal of providing for a diverse housing stock and maintaining the quality of the housing stock throughout the community (City Goal #8 of the Housing Element). At the January 6. 1997 City Council meeting, $30.000 was appropriated for the Mortgage Credit Certificate Program from the unreserved low income housing funds. The funds have been placed into a separate account and will be held until the first MCC is issued from the new funding, then the funds will be released and returned to the City. If no MCCs are issued, that would be the only time that these monies would be expended. There might be a nominal administrative cost from the county if the fees from the first time home buyers do not meet all of the administrative costs incurred. Environmental Status: NIA MCc.Doc -2. 10110197 3:56 PM REQUEST FOR 6dUNCIUREDEVELOPMENT A�ENCY ACTION MEETING DATE: November 3, 1997 DEPARTMENT ID NUMBER: ED 97-48 1 Resolution 97-001 approved January 6, 1997 2 Cooperative Agreement Between the County of Orange and Huntington Beach approved August 2, 1994. MCC.DOC -3- 10110197 3:57 PM RESOLUTION 97-001 ATTACHMENT #1 1 RESOLUTION ISO. 9 7--1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNT NGTON BEACI I 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 othenvise 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'') zrd to issue mortgage credit certificates pursuant to the Act to provide funds for the Program; and The City entered into a Cooperative Agreement %4dth 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 %vithin 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 d,",Ojz t 726. / 4'.s`PCD.Resck1u1it1n: NtorCrCcrt 13R3.96 RLS 96-SSS V u 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 Govenunent 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 follo„•s, 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. 2 X,sITCD:Rcsohnion: \kuCrCm i M V96 RLS 96•895 M 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 dcem 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 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. 3 4's1PCD.Rcso1u0on: WrOCert 12/23P96 RL5 96-895 SECTION 6. The aforementioned officers and employees of the City arc 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 rote adopting this resolution. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6 th day of January, 1997. ATTEST: &� e�� City Clerk REVIEWED AND APPROVED: City A ninistrator 4 414\PCD:Rcs01u1i0w \iorCrCcn f 241.'96 RLS 96•895 A 1! 9 Mayor APPROVED AS TO FORM: er" City y Attomey r f j l py fc; INITIATED AND APPROVED: 1 Director of Economic Development M Res. No. 97-1 STATE OF CALIFORNI[A ) 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 6th day of January, 1997 by the following vote: AYES: Julien, Barman, Dettloff, Bauer, Sunivan,Green, Garofalo NOES: None ABSENT: None e 4�0' q�!� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G Tcsoluti'resbkpg96-100 COOPERATIVE AGREEMENT ATTACHMENT #2 1 1 + 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 _ j&us T ohs . 195�, 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"). IVI=SETH NVHEREAS, 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 Reverse 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: OIL -ell l �� . a 4U:C:Agree:A1or SxZc CrediIW21194 I ]. 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. oun to Undertake the Pro am. 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 Mmit Allocation Committee (" CDLAC"). " 3. General PIan 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.), rvi said general plan includes'a land rise element as'required by Government Code Section 75302, and (iii) the Program complies with said land use element and housing element. 4. Martg ge 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:C:A}ree:Mortgage CrcdiI%741/94 • r i the Program) of administration costs applicable to each allocation received from CDLAC, which • share is estimated not to exceed V 5,000. 5. Other Necessary Actions. The City agrees to undertake such further proceedings or actions as may be necessary in order to cant' 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. Ex iration. This Cooperative Agreement shall expire and be of no further force and effect upon agreement of the parties hereto. 3 4's:O:Agrcc:,%iortgagc Crcd;t%7l2 W4 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 SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OF SUPERVISORS AA CIerkfthe Board of Supervisors (SEAL) ATTEST• City Clerk g 3 /r APPROVED AS TO FORM: City Attorney f—C -7_-:2f-9VGV-X"- 1,z 110 COUNTY OF ORANGE By: Chairman of the Board of Supervisors APPROVED AS TO FORM: r S 3o-egiy Counsel . CITY OF HUNMGTON BEACH y,. Mayor MT D ANDS APPROVED: Director of Special Projects 4 41s:o:Agrc0-1or1gsge Cudit17i21/94 t..% RCA ROUTING SHEET INITIATING Economic Development DEPARTMENT: SUBJECT: Mortqaqe Credit Certificate I COUNCIL MEETING DATE: 4 _ _ _ _ November 3, 1997 _ _ j RCA ATTACHMENTS STATUS Ordinance (wlexhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & legislative draft if applicable) Attached Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in fur! bX the City Af#ome j Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by_2LtZ Aftome) Not Applicable Certificates of insurance (Approved PZ the QyAtfome) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Finding slConditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( } ( } Assistant City Administrator (initial) Ci Administrator (Initial) ( ) ( ) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: V a.J Council/Agency Meeting Held: Deferred/Continued to: jd Approved ❑ Conditionally Approved O Denied City Clerk'sSig tore Council Meeting Date: January 6, 1997 Depar ment ID Number. ED 97-01 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYORICHAIRMAN AND CITY COUNCIL MEMBERSIREDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator/Executiv Director PREPARED BY: DAVID C. BIGGS, Director of Economic Develo ment SUBJECT: MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM I Statanent O issue, Funding Source. Recommnded Action, Alternative Action(s). Analysis, Enviraxnental Status, Attachrnent(s) {I Statement of Issue: Staff is requesting authorization to continue a first-time Horne Buyers Cooperative Agreement between the County of Orange and the City of Huntington Beach for the Mortgage Credit Certificate (MCC) Program, and adopt a resolution adopting the Mortgage Credit Certificate Program for the new funding cycle. Funding Source: Redevelopment Housing Set Aside Funds Recommended Action: Motion to: 1) Authorize expenditure of set aside funds by the Redevelopment Agency. 2) Approve attached Resolution No. 97-/ . adopting a Mortgage Credit Certificate Program in cooperation with the County of Orange. Alternative Action[s): 1) Do not authorize expenditure of set aside funds by the Redevelopment Agency. 2) Do not approve attached Resolution adopting a Mortgage Credit Certificate Program in cooperation with the County of Orange. Analysis: The MCC program was originally authorized by Congress in the Tax Reform Act of 1984. This program provides an alternative to mortgage revenue bond financing to assist first-time home buyers with the purchase of single-family homes. The City Council originally approved the Cooperative Agreement between the City and the County of Orange regarding the MCC program on August 2, 1994, the attached Resolution will reaffirm this Agreement. REQUEST FOR &UNCIUREDEVELOPMENT A&ENCY ACTION MEETING DATE: January 6,1997 DEPARTMENT ID NUMBER: ED 97-01 The MCC provides a federal tax credit equal to 15% of the amount of interest paid on the home mortgage, and since 1994 the City has assisted 24 first-time, low- and moderate - income home buyers. An MCC is a certificate issued by the county which the homebuyer may immediately use to decrease the federal withholding from his or her monthly wages. The increased after-tax income helps the home buyer to qualify for the mortgage. The basic eligibility requirements for receiving a Mortgage Credit Certificate are: First Time Homebuyer - The buyer cannot have had an ownership interest in a principal residence within the past three years prior to loan closing date. » Funding Requirements - Household income must be below the following limits: 1 -2 persons $61,300 3 or more persons $70,495 « Purchase Price Requirements - Purchase price of the house must be below the following: New units (never occupied) $229,883 Existing units (resale) $204,937 • Eligible Properties - Single-family homes including detached units, condominiums or townhomes. The City's financial involvement with this project is consistent with its stated goal of providing for a diverse housing stock and maintaining the quality of the housing stock throughout the community (City Goal #8), Housing Element. At the March 18, 1996 City Council Meeting, $30,000 was appropriated for the Mortgage Credit Certificate Program from the unreserved low income housing funds. The funds have been placed into a separate account and will be held until the first MCC is issued from the new funding, then the funds will be released and returned to the City. If no MCCs are issued, that would be the only time that these monies would be expended. There might be a nominal administrative cost from the county if the fees from the first time home buyers do not meet all of the administrative costs incurred. C x � x Environmental Status: NIA x R-4o =, M { r i77 ' Mcc.Doc -2- 12/23196 2:27 AM REQUEST FOR cDUNCIL/REDEVELOPMENT A&ENCY ACTION MEETING DATE: January 6, 1997 Attachment(s): DEPARTMENT ID NUMBER: ED 97-01 Resolution `ftv • 9 7 —44 I MCc.Doc -3- 12123196 2:27 PM RESOLUTION NO. 97-1 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 reed 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 4WPCUResolution: MorCrCert 12r23196 RLs 96.885 I 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 oftile 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 %%ith 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. 2 .11sTCa:Reso1u6on: T< FOCert 12123196 RLS 96-883 M SECTION 3. The Cooperative Agreement bet%vecn 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 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. 4la1 MAcsolution: NforCrCert 12/23/96 R1.S 96-995 �.J 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 6 th day of January, 1997. ATTEST: City Clerk �— REVIEWED AND APPROVED: City A ninistrator 4 41sTCD:Rcso1ution: NforOCcrt 12/21'96 RLS 96-885 4*4 A�Z� Mayor APPROVED AS TO FORM: r, -- � /; �� - Cit 11 y Attorney d�C 14 INITIATED AND APPROVED: Director of Economic Development Res. No. 97-I STATE OF CALIFORNIA ) COUNTY OF ORANGE CITY OF HUNTINGTON BEACII ) I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-oflicio 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 6th day of January, 1997 by the following vote: AYES: Julien, Harman, Dettloff, Bauer, Sullivan, Green, Garofalo NOES: None. ABSENT: None C' &W-4� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 0•'reso1uti1resbkpg'96-100 - y i Exhibit A' COOPERATIVE AGREEMENT BETWEEN y - 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 !1 � US T c95 ,19,,9V -. 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"). WrrNESSETH 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; N01V, THEREFORE, inconsideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: 41a:G:AgreeNongage Credit17/21/94 +w. 1 • 1. Definition . 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 th_ County receives allocations from the California Debit Limit Allocation Committee ("CDLAC"). 3. - General Plan Adg2tion. Tl:e 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 Cafe Sections 65QiD, et seq.), (ii) said general plan includes a land use element as required by Government Cade Section 75302, and (iii) the Program complies with said land use element and housing element. 4. Mortgage Credit Certificate. 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. De sit and Pa ent 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)rG:Agree:Mongage Crcdi117121194 � r'• ti 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•Areementt 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. Aendments. 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. Exiration. This Cooperative Agreement shall expire and be of no further force and effect upon agreement of the parties hereto. 3 414:G:Agree:ASortgage Credit%7121194 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. SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUM= HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OF SUPERVISORS Clerk the Board of Supervisors (SEAT.) ATTEST• City Clerk COUNTY OF ORANGE /57f . By: Chairman of the Board of Supervisors APPROVED AS TO FORM: Co ty Counsel CITY OF HUN'MGTON BEACH B�. Mayor C-�.c�..� ., APPROVED AS TO FORM: INIT D AND' APPROVED: City Attorney Director of Special Projects 7--) /-.gV t-+- J-Z y.cti� 4 41t:0:ACrect-ioriptt Cmdit17r2 Z/94 V 3I�aPAAA1 Council/Agency Meeting Held: 3 Deferred/Continued to:,,,� VAppmved ❑ Conditionally Approved 0 Denied City Clerk's Sig tore Council Meeting Date: March 18,1996 Department ID Number. ED 96-15 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYORICHAIRMAN AND CITY COUNCIL Rao. gb_ �) MEMBERS/REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator/Executive Director PREPARED BY: DAVID C. BIGGS, Director of Economic Development SUBJECT: MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Staff is requesting authorization to continue a first-time Home Buyers Cooperative Agreement between the County of Orange and the City of Huntington Beach for the Mortgage Credit Certificate (MCC) Program, and adopt a resolution adopting the Mortgage Credit Certificate Program for the new funding cycle. Funding Source: Redevelopment Housing Set Aside Funds unappropriated fund balance. Recommended Action: Motion to: 1) Approve Resolution No.%-) adopting a Mortgage Credit Certificate program in Cooperation with the County of Orange. 2) Appropriate $30,000 from the unreserved low income housing funds as a set -aside with the County of Orange in order to participate in the MCC program, and to secure certificates for an estimated twenty (20) units. Altemative Action(s): 1) Do not approve Resolution No%21Adopting a Mortgage Credit Certificate program in cooperation with the County of Orange. REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION MEETING DATE: March 18,1996 DEPARTMENT ID NUMBER: ED 96-15 Analysis: The MCC program was originally authorized by Congress in the Tax Reform Act of 1984. This program provides an alternative to mortgage revenue bond financing to assist first-time home buyers with the purchase of single-family homes. The City Council originally approved the Cooperative Agreement between the City and the County of Orange regarding the MCC program on August 2,1994, this agreement is still in effect. The MCC provides a federal tax credit equal to 20% of the amount of interest paid on the home mortgage, and since 1994 the City has assisted 18 first-time, low- and moderate - income home buyers. An MCC is a certificate issued by the county which the homebuyer may immediately use to decrease the federal withholding from his or her monthly wages. The increase after-tax income helps the home buyer to qualify for the mortgage. The basic eligibility requirements for receiving a Mortgage Credit Certificate are: • First Time Homebuyer - The buyer cannot have an ownership interest in a principal residence within the past three years prior to loan closing date. + Funding Requirements - Household income must be below the following limits: 1 - 2 persons $61,300 3 or more persons $70,495 • Purchase Price Requirements - Purchase price of the house must be below the following: New units (never occupied) S239,310 Existing units (resale) $217,456 • Eligible Properties - Single-family homes including detached units, condominiums or townhomes. The Citys financial involvement with this project is consistent with its stated goal of providing for a diverse housing stock and maintaining the quality of the housing stock throughout the community (City Goal #8). The funds will be placed into a separate account and held until the first MCC is issued from the new funding, then the funds will be released and returned to the City. If no MCC are issued that would be the only time that these monies would be expended. There might be a nominal administrative cost from the county if the fees from the first time home buyers do not meet all of the administrative cost incurred. Environmental Status: NIA AECC.DOC -2- 02/28/96 2:58 PM REQUEST FOR CUUNCIUREDEVELOPMENT �ENCY ACTION MEETING DATE: March 18,1996 Attachment(s): DEPARTMENT ID NUMBER: ED 96-15 9 Cooperative Agreement Between the County of Orange and Huntington Beach approved August 2, 1994. 2 ResolutionNo. 3 Fiscal Impact Statement. 4 Report on CDLAC MCC Program Meeting MCC.Doc a- 02/28196 2:58 PM LJ ATTACHAIENT#1 V ATTACHMENT #2 ATTACHMENT #3 W Lila CITY OF HUNTINGTON BEACH •, INTER -DEPARTMENT COMMUNICATION NVNnWGTON BEACH To: Michael T. Uberuaga, City Administrator From: Robert J. Franz, Deputy City Administrator Subject: Fiscal Impact Statement #96-27 for Additional Appropriations for the Mortgage Credit Certificate Program -Low Income Housing Fund Date: February 15, 1996 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for the proposed appropriation of $30,000 for the Mortgage Credit Certificate Program If the City Council approves the proposed action, the balance of the unreserved, undesignated Low -Income Housing Fund Balance will be reduced to $451,000. Deputy City dminisi RECEI ED FEB 20 1920s DEPART .t J44 Ur= ECONCKliC DEVELOPMEPJT U LJ ATTACHMENT #4 � V TO: Chris Herendeen FROM: Ronald Pierre Rick Hemingway County of Orange Kimberly McAllen Claire Chacon-Hake Linda Morad Jennifer Mack Dan Bruening Phone (714) 834-6054 Lilia Lieberthal Fax Phone 714 834-3346 Justina Wilkom Catherine O'Hara Scott Kutner Dave Gottlieb Pamela Stoker Jim Hunt Paula Schaefer Jeff Clemens Phone Fax Phone CC: Bob Comwell Karen Ellis REMARKS: ❑ Urgent ❑ For your review ❑ Reply ASAP ❑ Please Comment February 27,1996 Re: Report on CDLAC Meeting of Wednesday, February 21,1996 and • Scheduling of March 1996 MCC Program Meeting On Wednesday, February 21, 1996, CDLAC authorized $11.6 million dollars of private activity bond allocation 1'or Ln=a a credit certificates for Orange County. The County's request, on behalf" of the cities and unincorporated areas, was for $50 million. The County will be contemplating how to effectively utilize remaining 1994 allocation and 1996 allocation countywide. A 90 Day Public Notice of intent related to the 1996 Program was published the first week of February, and the 1996 allocation can not be used until after the 90 Day period has expired. I encourage each of you to attend the next meeting on allocation shall be carried to the next year when there is unmet need for housing allocation. Should you have any questions, please contact me at (714) 834-6054. A copy of the ref-.zenced MCC Position Paper will be available at the next meeting or you can call and request that a copy he sent to you before the March 28, 1996 meeting. 0 V V 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 othemise 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 4'sTMResolation: Mortgage Credit12127/96 RIS 96-102 v 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 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 MAPMResolution: Mortgage CWit12127196 RLS 96-102 LJ 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 4's1.PCD:Resolution: Mortgage Credil12f27j'96 RLS 96-102 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18 th day of March , 1996. City Clerk REVIEWED AND APPROVED: City Adrrurustrator 4 41a'.PCD.Resofution: Mortgage Credit=7,96 RLS 96-102 GCrcr I - C� � �-- Mayor APPROVED AS TO FORM: wAttir y1� 6 r--j— zlz7 fa 6 INITIATED AND APPROVED: Director of Economic Development 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 , l9171/. 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"). NVMTSSETH WIEEREAS, the County has determined to engage in a mortgage credit cer0cate program (the "Program") pursuant to Part S 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 4k:G:Agre Noaigige CrediA7121194 1. Definitions. The words and phrases of this Cooperative Agreement shall, for all purposes hereof unless otherwise defined hereh 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 ("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.), Cu) 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 CrO:AgeeNortgage Credit%7/21194 the Program) of administration costs applicable to each allocation received from CDLAC, which share is estimated not to exceed $15,000. 6. 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. Expiration. This Cooperative Agreement shall expire and be of no further force and effect upon agreement of the parties hereto. 3 4's:G:Ag=:)forigsge Credit%7/21/94 r IN WITNESS WBFREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers ti:ereunto duly authorized, and their official seals to be hereto affixed, all as of the date first above written. SIGNED AND CERTIFIED THAT A COPY OF TIES DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OF SUPERVISORS Clerk the Board of Supervisors (SEAL) ATTEST• City Clerk rl 31 f/f APPROVED AS TO FORM: % 1) a,—j City Attorney f--[ -7—? t--916GrX,— J'Z 1-014 - COUNTY OF ORANGE 4 By: ..r�/f Chairman of the Board of Supervisors APPROVED AS TO FORM: Couly Counsel CITY OF HUNTWGTON BEACH By���✓ Mayor INIT D AND ,APPROVED: Director of Special Projects 414:0 AVreeMongage Credilk7/21194 4 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,Lcipzig,Bauer, Garofalo NOES: Councilmembers: None ABSENT: Councilmembers: None The foregoing instrument is a correct coif of the original on file in this office. Aftest, ��� _ 19� city Clerk and Ex-otficio Cler c of the City Council cf the City of Huntinglon Beach, California. City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California olrwolutihesbkpg 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 ,191L 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"). NNT NESSETH WHEREAS, the County has determined to engage in a mortgage credit certificate program (the "Program") pursuant to Part 5 of Division 3I 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 pro-vided, the parties hereto agree as follows: 4,s:G.Ag :h1ongage Credin7l21194 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 jo_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: (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 (Govemment Code Sections 65000, et seq.), (ii) said general plan includes a land use element as required by Govemment Code Section 75302, and (iii) the Program complies Aith said land use element and housing element. 4. Mortea9ze 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:Agee: ATortgage CrediIN17194 the Program) of administration costs applicable to each allocation received from CDLAC, which share is estimated not to exceed $15,000. 6. 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 necessay 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 oumers 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. 3 4a:G:Ag J-Iortgage Credifl7121/94 IN WITNESS NN IEREOF, 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 uri;ten. SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CIIAIRAIAN OF THE BOARD OF SUPERVISORS 4CIerkthe Board of Supervisors (SEAL) ATTES City Clerk 3/ APPROVED AS TO FORM: City Attorney f--C 7- -, VGCA— Z-Z i-e,4 •4 4's-G:AgrecAlortgage Credit%7,'2494 COUNTY OF ORANGE By: Chairman of the Board of Supervisors APPROVED AS TO FORM: Co ty Counsel CITY OF HUNTII\ GTON BEACH BY: Mayor INIT D ANDSPPROVED: Director of Special Projects RESOLUTION NO. E617 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 of ordable 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 4`s` Icsolut Mortgage Crodid712 V94 V 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 CCDLAC") 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 4\s\G.Reso1ut:ti1or1gage CYedil17/ W4 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 approximately $ 4 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 I % 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 5. 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 *1 Q:Resoluutlfodgage Crtdit17121194 previously taken by such officers and employees in connection %%ith 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 AL=st 1994. ATTEST: Mayor APPROVED AS TO FORM: City Clerk ��3fC�t ttorney REVMWED AND APPROVED: INITIATED AND APPROVED: 4 IwAJ 4tWdirustrator Director of Sp cial Projects 4 41410:Resolut:Riortgage Credit17r21/94 { Res. No. 6517 STATE OF CALIFORNIA } COUNTY OF ORANGE ) ss: CITY OF HUN1Ti\GTON BEACH } 1, 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 regular meeting thereof held on the 2nd gf 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-oflicio Cl rk of the City Council of the City of Huntington Beach, California ITY COUNCIL ACTIONIREDEVELOPINIENT APPROVED BY CITY COUNCIL - --fz 192r- . crrY1' Hoilorable Mayor/Chairman and City Council Agency Members Michael T. Uberuaga, City Administrator/Exec tive Directoor Mike Adams, Director of Special Projects Submitted by: Prepared by: AGENCY ACTION Date: August 1, 1994 Subject: MORTGAGE CREDIT CERTIFICATE {11ICQ PROGRAM COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF HUNTINGTON BEACH Consistent with Council Policy' [Xj Yes [ ] New Policy or Exception s 6 6/,,-r Statement of Issue. Recommendation. Any STATEMENT OF ISSITE: Funding Source. Alternative Actions, Attachments: Staff is requesting authorization to enter into a First time Home Buyers Cooperative Agreement between the County of Orange and the City of Huntington Beach for the Mortgage Credit Certificate (MCC) Program. RF.COMMF.NDATION: Staff recommends that Council take the following action: I. Approve a Cooperative Agreement between the County of Orange and The City of Huntington Beach and approve a Resolution No.6h17 Adopting a Mortgage Credit Certificate program in Cooperation with the County of Orange and authorize the expenditure of $30,000 to participate in the MCC program, in order to finance certificates for an estimated thirty (30) units. ANALYSIS: Background The MCC program was originally authorized by Congress in the Tax Reform Act of 1984. This program provides an alternative to mortgage revenue bonds financing to assist first-time home buyers with the purchase of single family homes. The MCC provides a federal tax credit equal to 20% of the amount of interest paid on the home mortgage, and since 1990 with the County, they have assisted 267 first-time, low and moderate income homebuyers. An MCC is a certificate issued by the County which the homebuyer may immediately use to decrease the federal W'A withholding from his or her monthly wages. The increase after-tax income helps the homebuyer to qualify for the mortgage. The Basic eligibility requirements for receiving an MCC are: • First Time Ilomebuyer - The buyer cannot have an ownership interest in a principal residence any time in the past three years (prior to loan closing date). • Funding Requirements - Household income must be below the following limits: l - 2 persons $56,500 3 or more persons $64,975 • Purchase Price Requirements - Purchase price of the house must be below the following: New units (never occupied) $239,310 Existing units (resale) $225,900 • Eligible Properties - Single-family homes including detached units, condominiums or townhomes. The deadline to submit our Cooperative Agreement and Resolution is August 11, 1994 to the County of Orange. The City's financial involvement with this project is Consistent with its stated goat of providing for a diverse housing stock and maintaining the quality of the housing stock throughout the community (City Goal #8). FUNDING SOURCE: Redevelopment Housing Set Aside Funds unappropriated fund balance. ALTERNATIVE ACTION: The City Council may motion to: Direct staff not to negotiate with the County concerning the MCC program. ATTACHMENTS: 1. Cooperative Agreement Between the County of Orange and Huntington Beach. 2. Resolution No. 3. Fiscal Impact Statement. 4. Letter from the County of Orange Dated July 5, 1994, MTU:MA:DEB:ee RWmama.doc -2- 7/27/94 CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONME BROCKWAY CITY CLERK August 4, 1994 Cheryl Burba Public Finance County of Orange County Administrative Office P. O..Box 22014 Santa Ana, CA 92702-2014 CALIFORNIA 92648 The City Council of the City of Huntington Beach at their adjourned regular Council meeting held August 2, 1994 approved the Cooperative Agreement Between the County.of Orange and the City of Huntington Beach Regarding the Mortgage Credit Certificate Program. An executed copy of the agreement is enclosed; please return a fully executed copy to the City Clerk in the enclosed, self-addressed, stamped envelope. The City Council adopted Resolution No. 6617 - "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." Enclosed is a certified copy of Resolution No. 6617 for your records. If there are any questions regarding this matter please call the Office of the City Clerk (714) 536-5227. Connie Brockway, CMC City Clerk CB/ES Enclosures {Telephone: 714-53"2271 CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION NUNnw.TON Mcm TO: MICHAEL T. UBERUAGA, City Administrator FROM: ROBERT J. FRANZ, Deputy City Administrator SUBJECT: REQUESTED FUNDING FOR CITY INCLUSION IN FIRST TIME HOME BUYERS PROGRAM, FIS 94-47 DATE: JULY 22, '1994 As required by Resolution 4832, a Fiscal Impact Statement has been prepared for the proposed appropriation of $30,000 to enable the City to participate in the County's Mortgage Credit Certificate Program and thus assist first-time buyers with the purchase of their single-family homes. Upon approval of the City Council, the balance of the unaudited, undesignated Housing Set -Aside Fund would be reduced to $80,000. ROBERT J. FRANZ Deputy City Administrator RJF:skd 0004854.01 07/25194 12:58 PM ERNIE SCHNEIDER COL'ATY ADMINISTRATIVE OFFICER ROBrPT E. THOMAS HALL OF ADMINISTRATION 10 CIVIC CENTER PLAZA SANTA ANA. CA 92701 NIAILI%G ADDRESS: P.O. BOX 222014 SAN'TA ANA. CA 92702-2014 TELEPHONE: (714)834-6200 COUNTY ADMINISTRATIVE OFFICE FAX: (714) R_U-3018 July 5, 1994 Mr. Dan Bruening Housing Rehabilitation Manager City of Huntington Beach P.O. Box 190 Huntington Beach, CA 92648 Dear Mr. Bruening: The County of Orange plans to submit an application to the California Debt Limit Allocation Committee (CDLAC) for the Mortgage Credit Certificate (NICC) Program on August 15, 1994. Contingent upon CDLAC awarding MCC authority to the County and participating cities, I invite your city to participate in this program. The County of Orange administers the MCC Program, which %%as originally authorized by Congress in the Tax Reform Act of 1984. This program provides an alternative to mortgage revenue bond financing to assist first-time homebuYers with the purchase of single family housing. The MCC provides a federal tax credit equal to 20% of the amount of interest paid on the home mortgages, and since 1990 has assisted 267 first-time, low and moderate income homebuyers. This current program will additionally assist an estimated ISO qualified first-time homebuyers by the summer of 1995. The Orange County MCC Program includes the unincorporated areas and 17 of the 31 cities in the County. An MCC is a certificate issued by the County which the homebuyer may immediately use to decrease the federal withholding from his or her monthly wages. The increased after -tar income helps the homebuyer to qualify for the mortgage. Participating cities have used their available redevelopment tax increment or HOME funding for second mortgages, which in combination with the MCCs, have made home purchases affordable for more lower income households. The basic eligibility requirements for receiving an MCC are: • First-time Homebuyer-the buyer cannot have had an ownership interest in a principal residence any time in the past three years (prior to loan closing date). • Income Rcquirement-houhold income must be below the following limits: 1-2 persons $56,500 3 or more persons $64,975 • Purchase Price Requirement -purchase price of the house must be below the following: New units (never occupied) $239,310 Existing units (resale) $225,900 Eligible Properties -single-family homes including detached units, condominiums or townhomes. In order to meet the August 15th CDLAC application deadline, it is necessary for your city to submit your application to us by July 22nd. Enclosed are the Resolution for City Council adoption of the program and the Cooperative Agreement which provide you general information on the requirements for City participation in the Program. If your city is interested in the MCC Program and learning about the application requirements, my staff is available to assist you with the process. Please call Cheryl Barba at (714) 834-3555 for information immediately in order to participate in this year's Program. Thank you for your _ interest. R s fully, Eileen T. Walsh Director, Finance and Insurance CLB:BJBM 17 Enciowses ALIG-01-' 94 MON 16: 08 I D_DOWqEY SAVINGS NB TEL NO: N 146 P02 (DDOWNEY SAVINGS August 1, 1994 Honorable Mayer Linda Moulton -Patterson, Members of the Huntington Beacb City Council 20M Main Street Huntington Beach, CA 92648 SUBJECT; Support participation In the Mortgage Credit Certificate (MCC) Program with the County of Orange, and adopt resolution No. 6617. Dear Mayor ]Moulton -Patterson: nnun ity Savings and Loan AEEociation is An active parti dpant In the Mui trtyG Credit Certificate (MCC) Program, and we feel MCC is an excellent resource to assist young families in purchasing their first home. Your local economy will also be positively affected, because the MCC Program is a valuable resource to the Real Estate industry. Sincerely, Joe%ULM, Assistant Vice President i DOWNEY SAVINGPS AND LOAN ASSOCIATION 3501 JGmt�proo Road - Newport bVIOCh, CQVvrr*j 926F.G - 71.1. 725-4743 • Fax: 714; 725.4752 AUG- 1-94 MOM 11:53 EB/cu,ASSN OF REALTORS FAX NO. 8413375 ASSOCIATION of REALTORS' 8101 SLrtrr Avenr.c - Huntinglon Peach. N 9Zh4:-02.1 • (itd) B i7•b093 • FA.CA41,1.1: i . . August 1, 1994 Mayor Linda Moulton -Patterson and,Members of the City Council City of Huntington Beach 1000 Main Street Huntington Beach, CA 92648 FAD RF,: Agenda Item F-2: i<Iorigage Credit Certificate Program Honomble Mayor and Council Members: As President of the Huntington Beach/Fountain Va?ley Association of REALTORS, I would like to express our strong support for the City's participation in this program to assist first time homebuyers. This program was authorized in 1984 and has proven successful in the County as well as a number of other Orange County cities. This program helps people buy homes by establishing a mechanism to allow first time homebuyers a credit on their federal income tax of up to 20% of the annual interest paid on the applicant's mortgage. This savings may be realized monthly be adjusting the exemptions on the buyers W-4 forin, which allows more available income to qualify for a mortgage loan. As you can see from the Staff Report, the income levels of the first time homebuyers as well as the allowable purchase price of the homes presents a vt:ry real opportunity for homeownership in our community. We are very pleased to see this program being brought forward for your consideration, and urge your approval. P. 01 Sincerely, -Ic�t2* ,�s�Qo.uc1� B:u-ry Bussiere President 941gciW? HRCCAIM . l r BARRYBUSSIERL President s JL'41M"'.1GHLW, First Vice President JAN SHOl4L'IKER, Second t ice President -A]v%E PUGIL Secrebtry/Tremrer Directors: PAT PALILK•AN771ONYCHRISITNSMNTONYCO•ROBERTKEMP- JEAN KULE1tIN VVI1.1. L LtioOvs, Fsrcufire Vice President• JLIDITHA. LEGAN, WePreshknt/Public Affairs CAD 8,34 15:28 No.015 P.01 Tr` do .7148343345 v COUNTY ADMIMSTAATIVE OFFICE FAX COVER PAGE DATE: 7, F,jr�&,- r FROM: COUNTY OF ORANGE COUNTY ADMINISTRATIVE OFFICEt- P.O. BOX 22014 5ANTA ANAe CA 92702-2014 PHONE: (714) •3'�" 3 ssa FAX# : (724) 834-3346 MURATA F-30 T0;�Ctµ�-���c1-✓ Ji FAx # • 37 11, IS7Yb TOTAL PAGES INCLUDING THIS COVER PAGE •- .,.. �U , .Yk' - L30& CITY OF HUNTINGTON BEACH Lo- " INTER -DEPARTMENT COMMUNICATION MUA71NG1GY BEACH TO: Don Watson City Treasurer ,1 FRONI: Alike Adams Director of Special Projects SUBJECT: Atortgage Credit Certificate (I►iCC) Program - Deposit Certification Form DATE: August 9, 1994 Don, please refer to the attached RCA/RAA that describes the the First Time Home Buyers Cooperative Agreement between the County of Orange and the City for the adoption of the MCC Program, which was passed by City Council on August 2, 1994. Per Cheryl Burba of the County of Orange, Public Finance office (phone number 834-3555) the attached Deposit Certification Form must be signed and accompany our submittal of the resolution and agreement. She refers specifically to Item N 5 on pages two and three of the Cooperative Agreement: Deposit and Payment by Ci. The City agrees to make any deposit required by CDLAC for an applicaation for a mortgage credit certificate allocation The City further agrees to pay the County its proportionate share (based upon the number of participants in the Program) of administration costs applicable to each allocation received from CDLAC, which share is estimated not to exceed $15,000. If you have any questions or need anything else to facilitate this matter, please call me at ext. 5265. Thank you. Attachments xc: Dan Bruening, Housing Rehab Manager Greg Bros►n, Development Specialist Connie Brockway, City Cleric GnMI \ICCmemo.doc NIA:ee I LL.�1'IV •f 1^Iy�"YJJYV I'J.: IIV.VLV 1 .Vr - FEB B 8 1994 DEPOSIT CERTIFICATION FORM FOR AN APPLICATION FOR 1994 ALLOCATION OF PRIVATE ACTIVITY BONDS California Debt Limit Allocation Committee 915 Capitol Malt, Room 471 Sacramento, CA 95814 (916)653-3255 CERTIFICATION OF THE City_ of Huntington Beach (Applicant) REGARDING AN APPLICATION FOR PRIVATE ACTIVITY BOND ALLOCATION In connection with the following private activity bond application: APPLICANT. - City of Huntington Beach AMOUNT OF ALLOCATION REQUESTED: S 30,000.00 PROJECT NAME/PROGRAM TYPE: Mortgage Credit Certificate Program the undersigned officer of the City of Huntington Beach (Applicant) hereby certifies as follows: I, Don Watson. - (Name), am the City Treasurer (Title) of the city of un ing on eac (Applicant), and am duty -Authorized to 2. The City of Huntington Beach • (Applicant) has eolle:ted and has placid on deposit in an account in a financial institution, S Thirty , dollars (write out dollar amount, i.c., ten thousand) which equals one percent of the &mount of priratc activity bond allocation being requested cot to exceed S250,000. 3. The deposit will be held until receipt of a written notification from the California Debt Limit Allocation Commitwe that ibs deposit is authorized to be -released or forfeited, in whole or In part, pursuant to - the procedures of the Committee. 4. To the extent that any portion of the deposit is forfeited, the'applicaat agrees to send the required amount in a check made payable to the 'California Debt Limit Allocation Committee' Such check shall be mailed to the Committee at the sddress noted above. immediately upon receipt of the written notification from, the Committee. 5. The undersigned has read the procedures of the California Debt Limit Allocation Committee and understands that if any portion of an approved private activity bond allocation is not used for the purpose for which it was granted, then the corresponding portion of the performance deposit must be forfeited to the Committee. Date Signature/Title Rev. 11/93 -). vi j. a CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK COME BROCKWAY CITY CLERK August 4, 1994 Cheryl Burba Public Finance County of Orange County Administrative Office P. 0. Box 22014 Santa Ana, CA 92702-2014 The City Council of the City of Huntington Beach at their adjourned regular Council meeting held August 2, 1994 approved the Cooperative Agreement Between the County of Orange and the City of Huntington Beach Regarding the Mortgage Credit Certificate Program. An executed copy of the agreement is enclosed; please return a fully executed copy to the City Clerk in the enclosed, self-addressed, stamped envelope. The City Council adopted Resolution No. 6617 - "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." Enclosed is a certified copy of Resolution No. 6617 for your records. If there are any questions regarding this matter please call the Office of the City Clerk (714) 536-5227. 000 *M Connie Brockway, CMC City Clerk CB/ES Enclosures Mlophonr 714.536.52271