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HomeMy WebLinkAboutRES 94-43RESOLUTION NO. 94 --., 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 1994 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 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 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 r —%)ect to all property located within the geographical boundaries of the City, including the payment to the County of the City2s 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. ECTIQrj 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 fiuther 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 Manager, or his designee, is authorized, on behalf of the City, to submit an application, and such other document as may be required, to CDLAC for an allocation In 1994 or in 1995 in the amount of $3,00,000 for application to the issuance of mortgage credit certificates by the County. 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 solely for application to 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. PASSED APPROVED AND ADOPTED this 2 o th c ATTEST: !01; W1111", Eli - .11 0 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 20 day of september 1994, by the following vote: AYES: f'OUNCTT. IEMRERS: Papen, Ansari, MPT/Harmony and M/Werner NOES: COUNCELMEMBERS: None ABSTAIN: COUNCELMENBERS: None ABSENT: COUNCILMEMBERS: Miller 4LB�urjtss„ crry CLERK