HomeMy WebLinkAboutResolution No. 5872 RESOLUTION NO. 5872
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
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 1995, 1996 OR IN 1997 FOR AN ALLOCATION FOR
THE ISSUANCE OF MORTGAGE CREDIT CERTIFICATES AND THE
TRANSFER OF SUCH ALLOCATION TO THE COUNTY OF LOS ANGELES
t
WHEREAS, there is a shortage in the County of Los Angeles (the " "Y g "County")
and in the City of Downey (the "City ") of decent, safe and sanitary housing,
of housing affordable Y g'
particularly g fordable by first -time home buyers, and a
consequent need to encourage the availability of homes affordable by such
persons and otherwise to increase the Y
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 g ) p 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 '
�t is in the best
interest of the City to'participate in the Program and to consent nsent to the
operation of the Program by the County within the eo ra hic boundaries g g P ties of
the City pursuant to the Act; and
WHEREAS, the City desires to enter into a Cooperative Agreement with t he
• g �,
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 it certif lcates 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 o
" �� f
the State of California (the "Government Code") governs the allocation of the
state ceiling (as that term is defined in the Code) among governmental
„ � g g 1 units
in the State of California (the "State") having the authority to issue
mortgage credit certificates; and Y
WHEREAS, Section 8869.85 of the Government Code requires
q a local agency
to file an application for a portion of the state ceiling with or upon the
i
direction of the California Debt Lim •
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 '
1 amount , i f any, of
authority to issue mortgage credit certificates allocated t o the City from
the state ceiling; and
C:MCCagnnt.95:tr
L '
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Downey 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 respect to all property
p Y
located within the geographical boundaries of the City, including the a ent
P Ym
to the i
County of the City's 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 at 0 (zero dollars)
$ (
for the period covered by this Resolution.
SECTION 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 advise and consent of the City Attorney,
Y,
is further authorized to enter into such additional agreements with the
County, execute such other documents or take such other actions as they may
Y
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 s
a may be
required, to CDLAC for an allocation in 1995, 1996 and 1997 for a total
amount of $9,000,000, 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, o f mortgage rt a e credit
City Y g g o 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 P roceeds
of which are to be used to induce the origination of home mortgage to
loans to
qualifying persons residing within the City and the County.
Y
SECTION 6: The officers and employees of the City are authorized and
directed, jointly and several) to do any and
in Y� y 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, all actions
y, ions
previously taken by such officers and employees in connection with
the
application for the allocation authorized to be requested are ratified q led and
SECTION 7 This resolution shall take effect immediate) upon its
adoption by the City Council, and Y p
y , d the City Clerk shall certify the vote
adopting this resolution.
e Ma mgrmt.95: tr
•
t
•t
i
APPROVED AND ADOPTED this 25th day of April , 1995.
___4444A) '-/
Barba J. Ri ey
MAYOR
ATTEST:
I 411F
11 -.0 -' )72 1, -&-x.e..a i
Judith E.- McDonnell
CITY CLERK
N
I HEREBY CERTIFY that the foregoing Resolution was duly y adopted by the
City Council of the City of Downey at a regular meeting thereof, e
g g held on the
25th day of April, 1995, by the following vote, to wit:
AYES: 5 COUNCIL MEMBERS: Lawrence, McCaughan, Brazelton, Boggs, Riley9 99 �
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
1‘1 ' •
. . Ale 1.... _... ..A. / AM .0a, /__.7../
Illy Judith E. McDonnell
CITY CLERK
C:MCCagtmt.95:tr
.■ter
•
EXHIBIT A
COOPERATIVE AGREEMENT BETWEEN
THE COUNTY OF LOS ANGELES
AND THE CITY OF DOWNEY
WHEREAS, the County of Los Angeles (the "County") has
in a Mortgage Y) determined to
engage
g ge Credit Certificate Program (the "Program")
Part 5 of Division 31 of g � pursuant
to
Safety Code of the State of
California (the "Act") f the Health and Safe
Act ") in connection with the construction •
all ion and acquisition of
homes in the County, as provided for in said Act; and
WHEREAS, the County has determined to finance the Pro issuance credit certificates gram by Issuance of
"Code"); as authorized by the Internal Revenue Code of
1986 (the and
WHEREAS, the County, pursuant to the Act, has established October � fished the Program by
Resolution ado
p r 2 5 , 19 9 4 , and has determined to cooperate with the
City pursuant to the Act and in the exercise p
of its powers under the Act for
purposes of the Program; and
WHEREAS, the City has adopted the Program and determined the County ursuantCto g termined to cooperate
Y p the Act in the exercise of their owers under for the purposes of the Program.
p r the
NOW, THEREFORE, in consideration of the mutual hereinafter al covenants hereinafter
provided, the
parties hereto agree as follows:
SECTION 1. The words and phrases of this Cooperative
Agreement shall,
for all purposes hereof
unless otherwise defined herein, have the same
meanings assigned to such words and hras
p es in the Act.
SECTION 2. The County agrees to use its best
efforts to undertake the
Program and to issue mortgage credit certificates therefore pursuant to the � - •
Act and the Code from time to time to the extent that the County receives
allocations from the California Debt Limit •
Allocation Committee ( "CDLAC ").
SECTION 3. The City represents and warrants to the County that:
(i) the City has heretofore adopted pted a general plan for the City
conformance with the provisions of the Planning y in
g Zoning Law of the State of
Ca 1 i f ornia (Governmentcode Sections 65000 et seg.),
--- (ii) said general plan
includes a land use element as required by Government Code Section the Program complies with said land Ion 65302, and
and use element and housing element.
C MCignut.95: tr
•
•
•
1 • J
• 1.
•
1
•
SECTION 4. The City agrees that the County may issue mortgage credit
certificates under the Program, as specifically
g p ifically set forth in the Act and the
Code, with respect to property located within the geographic boundaries of
the City and further agrees that p
g the County may exercise any or all of the
City's powers for the purpose of issuing mortgage credit certificates
pursuant to the Act and the Code with respect to property located within the
geographic boundaries of the City. At the expiration of one ear
y from the
date funds become available to the City from an allocation under the Program,
the County may review the City's progress in committing funds
follow' g from such
allocation and, following consultation with the City, may reallocate to
another city or public agency agreeing to participate in the Program rogram or
already participating in the Program any unused ortion of such '
p h allocation.
SECTION 5 The City agrees to make any deposit required by CDLAC for
q Y an
application for a mortgage
credit certificate allocation. The City further
agrees to pay the County its proportionate share (based upon the number
Program) of � p r of
participants in the Pro
g f administration costs applicable to each
allocation received from CDLAC, which share is estimated not to
exceed $0
(zero dollars) for 1995, 1996 and 1997.
SECTION 6. The City agrees to undertake such further s or
actions as may proceedings be necessary in order p g
Y y rder to carry out the terms and the intent of
this Cooperative Agreement.
SECTION 7. Nothing in the Cooperative Agreement shall revent
entering into one p the
County from ent
• g or more agreements with other public bodies ad
political subdivisions within the County, if deemed necessary and advisable
to do so by the County.
SECTION 8. This Cooperative Agreement may be amended by one
Y or more
supplemental agreements executed
by the county and the City at any time,
- except that no such amendment or supplement shall be made •
which shall
adversely affect the rights of the owners of any mortgage credit '
Y certificates
issued by the County in connection with the Program.
SECTION 9. This Cooperative Agreement shall expire and be of no further
force and effect upon termination of the Program or the sooner
the parties hereto.
g r agreement of
IN WITNESS WHEREOF, the parties hereto have caused this Cooperative p ative Agreement
to be executed and attested by their proper officers thereunto dui
authorized, and their official seals to be hereto duly
reto affixed, all as of the date
first above written.
C:MCCagr nt.95:tr
COUNTY OF LOS ANGELES
By
Chair of the Board of Supervisor
ATTEST:
Joanne Sturges
Executive Officer - Clerk
of the Board of Supervisors
of the County of Los Angeles
By
DEPUTY
APPROVED AS TO FORM:
DEWITT W. CLINTON
COUNTY COUNSEL .
By
DEPUTY
CITY OF DOWNEY
(SEAL) By
MAYOR
Approved by Council:
ATTEST:
City Clerk
APPROVED AS TO FORM
City Attorney
A MC Cagimt.9S:tr
•