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HomeMy WebLinkAboutRES 97-71RESOLUTION NO. 97 - 71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR ADOPTING A MORTGAGE CREDIT CERTIFICATE PROGRAM IN COOPERATION WITH THE COUNTY OF LOS ANGELES, AUTHORIZING AN APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE IN 1998, 1999, 2000 FOR AN ALLOCATION FOR THE ISSUANCE OF MORTGAGE CREDIT CERTIFICATES AND THE TRANSFER OF SUCH ALLOCATION TO THE COUNTY OF LOS ANGELES WHEREAS, there is a shortage in the County of Los Angeles (the "County") and in the City of Diamond Bar (the "City") of decent, safe and sanitary housing, particularly of housing affordable by first-time 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 WHEREAS, 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 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 97•-71 WHEREAS, the City has determined to transfer to the County pursuant to Section 8869.85(d) of the Government Code, the total amount, if any, of authority to issue mortgage credit certificates allocated to the City from the state ceiling; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Diamond Bar resolves 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 geographical boundaries of the City. SECTI N 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 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 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 authorizes the County, and its authorized designee, to submit an application, and such other document as may be required, to CDLAC for an Mortgage Credit Certificate allocation in 1998, 1999, and 2000. SECTION 5: The City hereby authorizes the transfer to the County of all of the principal amount, if any, of 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 for the issuance of mortgage credit certificates, the proceeds of which are to be used to induce the origination of home mortgage loans to qualifying persons residing within the City and the County. 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 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. 97-71 PASSED APPROVED AND ADOPTED this 18th ~lay of November 1997. l Y 6R ATTEST: CIT CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) SS: CITY OF DIAMOND BAR ) I, LYNDA BURGESS City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was duly adopted by the Council of the City of Diamond Bar, California, at a regular meeting thereof held on the 18 thlay of November—, 1997, by the following vote: AYES: COUNCILMEMBERS: Ansari, Werner, MPT/Herrera, M/Huff NOES: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Harmony Lynda Burgess, CI'T'Y CLERK City of Diamond Bar 97--71 EXHIBITA COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF LOS ANGELES AND THE CITY OF DIAMOND BAR WHEREAS, the County of Los Angeles (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 WHEREAS, the County, pursuant to the Act, has established the Program by Resolution adopted January 26, 1996, 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 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 Debt Limit Allocation 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 et seMc .), (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 powers 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 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 the Program) of administration costs applicable to each allocation received from CDLAC, which share is estimated not to exceed $2,000. SECTION 6. 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. SECTION 7. Nothing in the 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. SECTION 8. 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 shall adversely affect the rights of the owners of any mortgage credit certificates issued by the County in connection with the Program. 16 SECTION 9. This Cooperative Agreement shall expire and be of no further force and effect upon termination of the Program or the sooner agreement of the parties hereto. 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. M ATTEST: Joanne Sturges Executive Officer - Clerk of the Board of Supervisors of the County of Los Angeles By Deputy (SEAL) ATTEST: City Clerk SAP PRO V AS TO Cl"ttomey COUNTY OF LOS ANGELES Chair of the Board of Supervisor 17 APPROVED AS TO FORM: DeWitt W. Clinton County Counsel By Deputy Cityof iamo d Bar By (7---� Mayor Approved bV Council Date