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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; 07/24/92 -2- 1842Q/2197/146 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 07/24/92 -3- 1842Q/2197/146 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 07/24/92 -4- 1842Q/2197/146 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 07/24/92 -5- 1842Q/2197/146 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. 07/24/92 1841Q/2197/146 -2- 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 07124/92 1841Q/2197/146 -3-