HomeMy WebLinkAboutCC Reso No 1995-02RESOLUTZON NO. 95-2
A RESOLUTION OF THE CITY COONCIL OF THE CITY
OF LARS ELSINORE ADOPTING A MORTGAGE CREDIT
CERTIFICATE PROGRAM IN COOPERATION WITH THE
COIINTY OF RIVERSIDE~ AUTHORIZING AN
APPLICATION TO THE CALIFORNIA DEBT LIMIT
ALLOCATION COMMITTEE IN 1995 FOR AN ALLOCATION
FOR THE ISSUANCE OF MORTGAGE CREDIT
CERTIFICATES AND THE TRANSFER OF SIICH ALLOCATION
TO T8E COUNTY OF RIVERSIDE.
WHEREAS, there is a shortage in the County of Riverside
("County") and in the City of Lake elsinore ("City") of decent
housing for persons in the low and moderate end of the purchasing
spectrum and a need to increase the housing supply to first-time
homebuyers in the County and in the City for such persons; and
WHEREAS, the Board of Supervisors of the County adopted
Resolution 87-564 on December 22, 1987 establishing a Mortgage
Credit Certificate Program pursuant to Section 51907 et seq. of the
Health and Safety Code of ~the State of California (the "Act"} and
Section 25 of the Internal Revenue Code (the "Code") to issue
mortgage credit certificates to qualified first time homebuyers by
allowing them to take a tax credit equal to 20 percent of the
mortgage interest paid in a given year (the "Program"), and
WHEREAS, the City has found and determined 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
geo~phic boundaries of the City pursuant to the Act; and
WHEREAS, the City has entered into a Cooperative
Agreement with the county to permit the operation of the Program in
the City ; and
WHEREAS, Section 146 of the Internal Revenue Code of 1986
limits the amount of qualified mortqage bonds that may be issued in
any calendar year by entities within a State and authorized the
Governor of the Legislature of such State to provide the method of
allocation within the State; and
WHEREAS, Chapter 3.5 of Part 1 of Division 31 of the
California Health and Safety Code (commencing with Section 50171)
governs the allocation of the State ceiling among governmental
units in the State having the authority to issue qualified mortgage
bonds; and
WHEREAS, Section 50185 et seq. of the Health and Safety
Code and the procedures adopted pursuant thereto require a local
agency to file an application with the California Debt Limit
Allocation Committee prior to the issuance of qualified mortgage
bondsg and
WHEREAS, the City has determined to assign to the County
pursuant to Section 50192 of the Health and Safety Code all of the
principal amount, if any, of qualified mortgage bonds allocated to
the City and to use said allocation for the issuance of mortgage
credit certificates; and
WHEREAS, one percent of the amount of the allocation
being requested by the City is now being held by the County in an
escrow account;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of
the City of Lake Elsinore as follows:
PAGE TWO - RESOLUTION NO. 95-2
Section 1: Each of the foregoing recitals is true and
correct.
Section 2: The City Manager, or his designee, is hereby
authorized on behalf of the City, to submit an application, and
such other documents as may be required, to the California Debt
Limit Allocation Committee for an allocation of $1,500,000.00 to
issue qualified mortgage bonds and one hundred percent (100~) of
said allocation is to be utilized for mortgage credit certificates.
It is hereby authorized that, upon receipt, such allocation is to
be transferred to the County, who will issue mortgaqe credit
certificates pursuant to the terms of the Program to persons
residing within the City and the County. The City Manager, or his
designee, is hereby directed to take such steps and execute such
documents as is necessary to effect the transfer of the allocation
to the County.
Section 3: The officers and employees of the City are
hereby authorized and directed, jointly and severally, to do any
and all things necessary and 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 are hereby ratified and approved.
Section 4: This Resolution shall take affect from and
after its adoption
PASSED, APPROVED AND ADOPTED this lOth day of January,
1995, by the followinq vote:
AYES:
NOES:
ABSENT: COIINCILMEMBERS:
ABSTAIN:
CLERR
CITY OF LARE ELSINORE
ALONGI, BENDER, BRINLEY, PAPE, WASHBURN
NONE
NONE
NONE
~ ~iORN/~~I~.Y~'~-
GARY~~WASH ~ MAYOR
CITY F LARE ELSINORE
APPROVED AS TO FORM 6 LEGALITY:
~
JOHN R. P~ CITY ATTORNEY
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I~ VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the
City Council of the City of Lake Elsinore at a regular meeting of
said Council on the lOth day of January, 1995, and that it was so
adopted by the following vote:
AYES: COUNCILMEMBERS: ALONGI, BENDER~ BRINLEY, PAPE,
WASHBURN
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
. COUNCILMEMBERS: NONE
..~...._ _....,...., .._..._ ..._~.
CITY OF LAR~ ~LSINORE
(SEAL)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
DO HEREBY CERTIFY that the above and foregoing is a full, true and
correct copy of Resolution No. 95-2 of said Council, and that the
same has not been amended or repealed.
DATED: January 11, 1995
C I~ CI~'Y LERK
.
CITY Ok' L~AKE ELSINORE
(SEAL)