HomeMy WebLinkAboutRES 89-96RESOLUTION NO. 89 - 96
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DIAMOND BAR EXPRESSING ITS OPPOSITION TO THE RECENT
NATIONAL LEAGUE OF CITIES' POSITION ON THE HOME
MORTGAGE INTEREST DEDUCTION
WHEREAS, home ownership is of primary importance in
promoting neighborhood stability and enhancing participation in
community affairs; and
WHEREAS, an important factor which makes owning and
maintaining a home possible for many Americans is the ability to
deduct interest which is paid on home mortgages; and
WHEREAS, the original intent of the home mortgage
interest deduction, which was to encourage home ownership, home
improvement and neighborhood stability, is still valid today; and
WHEREAS, the National League of Cities has recently
adopted a Priorities Statement for the 1990 federal budget and
programs, which identifies as a potential revenue enhancement
option three modifications to the home mortgage interest
deduction; and
WHEREAS, it is this City Council's belief that any
modifications to the home mortgage interest deduction which would
limit the total amount of interest allowed to be deducted would
have a devastating impact on the residents of Diamond Bar for the
following reasons:
* it would discourage home ownership and improvement
by removing the tax benefits of'investing in one's
home;
* in discouraging home ownership and improvement, it
would damage the stability of the City's
neighborhoods by encouraging the renting of homes
and attracting a more transient population with
fewer roots in the community;
* it would have a disproportionate impact on the
residents of Diamond Bar, Southern California and
other high-cost housing areas since the value of
mortgages and the total amount of interest paid is
greater than other areas of the country;
* it could have the effect of limiting the
construction of new housing in Southern
California, as fewer people would be qualified to
purchase homes. In turn, this would exacerbate
the already severe housing shortage which exists
in the area and contribute to the imbalance of
jobs and housing and would worsen secondary
effects such as traffic congestion and air
pollution.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of
the City of Diamond Bar expresses its firm opposition to any
modifications to the home mortgage interest deduction; and
BE IT FURTHER RESOLVED THAT the City Council of the
City of Diamond Bar calls upon the Executive Board of the
National League of Cities to amend its Priorities Statement to
eliminate all reference to modifications of the home mortgage
interest deduction as a potential revenue enhancement tool; and
BE IT FURTHER RESOLVED THAT the City Council of the
City of Diamond Bar calls upon the leadership of the Los Angeles
County Division of the National League of Cities to adopt a
similar position in opposition to any modification of the home
mortgage interest deduction; and
BE IT FURTHER RESOLVED THAT a copy of this resolution
be distributed to the mayors of all cities in Los Angeles County
and that they be encouraged to express their opposition to the
League's position as it relates to the home mortgage interest
deduction.
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PASSED, APPROVED AND ADOPTED THIS 3rd day of
October , 1989.
I, LYNDA BURGESS, City Clerk of the City of Diamond
Bar, do hereby certify that the foregoing Resolution was
introduced and adopted at a regular meeting of the City Council
of the City of Diamond Bar held on the 3rd day of
October , 1989, by the following vote:
AYES: COUNCILMEMBERS:Forbing, Miller, Werner,
Mayor Pro Tem Horcher and
NOES: COUNCILMEMBERS:None Mayor Papen
ABSENT: COUNCILMEMBERS:None
ABSTAINED: COUNCILMEMBERS:None
ATTEST:Csi✓-J<1/
Citittlerk of the ty
of Diamond Bar ,
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