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Home My WebLink AboutCC Reso No 1992-25RESOLUTION NO. 92-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, COUNTY OF RIVERSIDE, CALIFORNIA, AUTHORIZING AN APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE AND TO PERMIT THE ISSUANCE OF MORTGAGE CREDIT CERTIFICATES IN LIEU OF QUALIFIED MORTGAGE BONDS WHEREAS, there is a shortage in the County of Riverside (the "County") and in the City of Lake Elsinore (the "City") of decent, safe and sanitary housing, particularly of housing affordable by persons in the low and moderate end of the purchasing spectrum and a need to increase the housing supply to first-time home buyers in the County and in the City for such persons; and WHEREAS, the Board of Supervisors of the County adopted Resolution No. 87-564 on December 22, 1987 establishing a Mortgage Credit Certificate Program pursuant to Section 50197 et. seq. of the Health and Safety Code of the State of California (the "Act") and Section 25 of the Internal Revenue Code of 1986 (the "Code") to issue mortgage credit certificates to qualified first-time home buyers 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 geographic 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 mortgage bonds 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 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 Resolution No. 92-25 - Page 2 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 bonds; 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 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: 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 $5,000,000.00 to 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 be transferred to the County, who will issue mortgage 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 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 Resolution No. 92-25 - Page 3 such officers and employees in connection with the application for the allocation are hereby ratified and approved. SECTION 4. This Resolution shall take effect from and after its adoption. PASSED, APPROVED AND ADOPTED this 1992, by the following vote: AYES: COUNCILMEMBERS: ALON~I, CHERVENY, DOP1INr,UEZ, WINKLER, wASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NON ~%- f 1 GARY WASHB RN, MAYOR CITY LAKE ELSINORE TEST: VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE APPROVED ,-4'~ TO FORM: 28th day of April JOHN R. HARPER, FITSL~ATTORNEY STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY. OF LAKE ELSINORE ) I, Vicki Lynne 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 28th day of April, 1992, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS: ALONGI, CHERVENY, DOMINGUEZ, WINKLER, WASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE VICKI LYNNE KAS~D, CITY CLERK CI~iY GF LAKE EL INORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, Vicki Lynne 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. 92-25 of said Council, and that the same has not been amended or repealed. April 30, 1992 CITY OF LAKE SINORE (SEAL)