HomeMy WebLinkAbout92-18 CC ResolutionRESOLUTION NO. 92-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA, AU'I~ORIZING AN APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE AND TO
PERMIT THE ISSUANCE OF MORTGAGE CREDIT
CERTIFICATES IN LIEU OF QUALIFIED MORTGAGE BONDS
WltEREAS, there is a shortage in the County of Riverside (the "County") and 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
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 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 with
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 of 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 required 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
Resos 92-18
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 RESOL~ 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 many be required, to the California
Debt Limit Allocation Committee for an allocation of $20,000,000 to qualified mortgage bonds
and one hundred percent (100%) of said allocation is to be u 'tflized 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. The City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED, this 24th day of March, 1992.
ATTEST:
Patricia H. Birdsall, Mayor
J~.Greek, City er~~
[SEAL]
Resos 92-18
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) SS
CITY OF TEMECULA )
I, June S. Greek, City Clerk of the City of Temecula, DO HEREBY CERTIFY that the
foregoing is a true and correct copy of Resolution No. 92-18 adopted by the City Council of the
City of Temecula, at a regular meeting thereof, held on the 24th day of March, 1992, by the
following vote:
AYES: 5
COUNCILMEMBERS:
Birdsall, Moore, Lindemans, Mufioz
Parks
NOES:
0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
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