HomeMy WebLinkAbout95-008 CC ResolutionRESOLUTION NO. 95-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, COUNTY OF RIVERSIDE 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") in the City of
Temecula (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 homebuyers in the County and in the City for such persons; and
WItEREAS, 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 51986
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 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
WItEREAS, 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 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
R¢sos\95-08 I
WHEREAS, the City as determined to assign 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
Temecula, 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 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 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 at a regular meeting of the City Council of the
City of Temecula on the 24th day of January, 1995.
AT'FEST:
J , CMC, City Clerk
iffrey
E.-Stone, Mayor
[SEAL]
Resos\95 -08 2
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE)
CITY OF TEMECULA )
SS
I, June S. Greek, City Clerk of the City of Temecula hereby do certify that the foregoing
Resolution No.95-08 was duly adopted and passed at a regular meeting of the City Council of the
City of Temecula on the 24th day of January, 1995 by the following roll call vote:
AYES: 5
COUNCILMEMBERS:
Lindemans, Mufioz, Parks, Roberts,
Stone
NOES:
0 COUNCILMEMBERS' None
ABSENT: 0 COUNCILMEMBERS' None
~reek, CMC,~k
Resos\95-08 3