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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)