HomeMy WebLinkAboutCC RES 93-092,mmmm
RESOLUTION NO. 93-92
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN 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 Tustin (the "City") of decent,
safe and sanitary housing, particularly of housing affordable
by first-tim~ home 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
WHERF~, the Board of Supervisors ~f 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 ~n~ 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
WHEREAS, the City hereby finds and determines that it is in
the best interest of the City to participate in the Program and
to consent to the operation of the Program by the County within
the geographic boundaries of the City pursuant to the Act; and
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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
WHEREAS, 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 Debt Limit
Allocation Committee ("CDLAC") prior to the issuance of
mortgage credit certificates; and
WHEREAS, 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 8869.85(d) of the
Government Code, the total amount, if any, of such authority
allocated to the City; and '
WHEREAS, one percent of the amount of the allocation to be
re_c~ested 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;
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NOW, THEREFORE, the City Council of the City of
resolves as follows:
Section 1.
correct.
Section 2.
Tustin
Each of the foregoing recitals is true and
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, includin~ 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
$6,000
is estimated not to exceed ~$~.
Section 3. The Cooperative Agreement between the County
and the City..(the "Agreement"), a cop%, 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
authorized to approve any additions to or changes in the form
of the Agreement deemed necessary or advisable, approval ot
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
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take such other actions 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 Manager, or his designee, is
authorized, on behalf of the City, to take such steps and
execute such documents as are necessary for the submission of
an application to CDLAC on behalf of the City for an allocation
in the amoun% of $6,000,000 for application to the issuance of
mortgage credit certificates by the County. The City Manager,
or his designee, is also authorized to certify to CDLAC that an
amount equal to 1% of the allocation requested is on deposit in
an account established by the City.
Section 5. The City hereby authorizes the transfer to the
County of the total principal amount, if any, of the authority
to issue mortgage credit certificates allocated to the City by
CDLAC. The City Manager, .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 person's.
Section 6. The officers and employees of the City are
authorized and directed, jointly and severally, to do any and
all things necessary or advisable in order to effectuate the
purposes of this resolution or the issuance of the mortgage
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credit certificates by the County, and all actions previously
taken by such officers and employees in connection with the
application for 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 at a regular meeting of the Tustin City
Council, held on the 16th day of August, 1993.
,.~t Y E. WYNN
y Clerk
STATE OF CALIFORNIA )
COU~C~Y OF ORANGE ) SS
CITY OF TUSTIN )
CERTIFICATION FOR RESOLUTION NO. 93-92
F~Y E. ~NN, City Clerk and ex-officio Clerk of the City
Council of the City of Tustin, California, does hereby certify
that uhe whole number of the members of the City Council of
the City of Tustin is 5; that the above and foregoing
Resolution No. 93-92 was duly and regularly introduced,
passed, and adopted at a regular meeting of the Tustin City
Council, held on the 16th day of August, 1993.
CO'o'KCILMEMBER AYES:
COI/KCILMEMBER NOES: None
COb'KCiLMEMBER ABSTAINED: None
COb%'C I LMEMBER: ABSENT: None
Y E. ~fl%rN
ity Clerk
Ports, Saltarelli, Pontious, Puckett, Thomas
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COOPEP~AT IV-E- AGREEMENT. BETh~EN
THE COUNTY OF ORANGE Ahq) THE
CITY OF TUSTIN
THIS COOPERATIVE_ AGP~EEMENT (the "Cooperative Agreement") is
hereby made and entered into as of , 19 by and
between the County of Orange, a legal subdivision and body
corporate and politic of the State of California (the
"County"), and the City of Tus~in , a political
subdivision of the State of California (the "City").
WITNESSETH
WHEREAS, the County has determined to engage in a mortgage
credit certificate program (the "Program") pursuant to Part 5
of Division 31 of the Health and Safety Code of the State of
California (the "Act") in connection with the construction and
acquisition of homes in the County, all as provided for in said
Act; and
WHEREAS, 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
~qEREAS, the County, pursuant to the Act, has established
the Programr..and has determined to cooperate with the City
pursuant to the Act and in the exercise of its powers under the
Act for purposes of the Program; and
WHEREAS, 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:
SECTION 1. 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.
SECTION 2. The County agrees to use its best efforts to
~nder~ake the Program and to issue mortgage credit certificates
therefor pursuant to the Act and the Code from ~ime to time to
the exigent that the County receives a!!oca~ions from the
California Debt Limit A!locauion Committee ("CDLAC").
SECTION 3. 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 e_~t seq.), (ii) said general plan includes a land
use element as required by Government Code Section 65302, and
(iii) the Program complies with said land use element and
housing element.
SECTION 4. 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 and
further agrees that the County may exercise any or all of the
City's power~ for the purpose of issuing mortgage credit
certificates pursuant to 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.
SECTION 5. The City agrees to make any deposit re?~ired
by CDLAC for an application for a mortgage credit certificate
allocation. The City further agrees to pay the County its
proportionatp, 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 ${~-,~. $6,000
SECTION 6. The City agrees to undertake such further
proceedings.or actions as may be necessary in order to carry
out the terms and ~he intent of this Cooperative Agreement.
SECTION 7. No~hing in this Cooperative Agreement shall
prevent the County from entering into one or more agreements
with other public bodies and political subdivisions within the
Co'~nty, if deemed necessary and advisable to do so by the
County.
SECTION 8. This Cooperative Agreement may be amended by
one or more supplemental agreements executed Dy the County and
the City at any time, except that no such amendment or
supplement shall be made which shall adversely affect the
rights of the owners of any mortgage credit certificates issued
by the County in connection with ~he Program.
SECTION 9. This Cooperative Agreement shall expire and
be of no further force and effec~ upon termination of the
Progr~z or the sooner agreement of the parties hereto.
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IN WITNESS WHEREOF, the parties hereto have caused this
Cooperative Agreement to be executed and attested by their
proper officers thereunto duly authorized, and their official
seals to be hereto affixed, all as of the date first above
written.
COUNTY OF ORANGE
By
SIGNED AN~ CERTIFIED THAT A
COPY OF THIS DOCUMENT HAS BEEN
DELIVERED TO THE CHAIRMA/q OF
THE BOARD OF SUPERVISORS
Chairman of the Board of
Supervisors
Clerk of the Board of
Supervisors
APPROVED AS TO FORM:
County Counsel
CITY OF TUSTIN
(SEAL)
ATTEST:
\ .
,l~y Clerk
A_DPROVED AS TO FOk~
:' / till '"
City~At~rney
By
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