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HomeMy WebLinkAboutReso 1994-17688 RESOLUTION NO. 17688 RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE MORTGAGE CREDIT CERTIFICATE PROGRAM AND ASSIGNING ITS ALLOCATION AND PROGRAM TO THE AGENCY TO IMPLEMENT; AUTHORIZING THE AGENCY TO APPLY TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION OF QUALIFIED MORTGAGE BONDS; ELECTING TO EXCHANGE SAID ALLOCATION FOR MORTGAGE CREDIT CERTIFICATES, CERTIFYING THE AVAILABILITY OF FUNDS FOR THE REQUIRED PERFORMANCE DEPOSIT OF ~200,000; APPROVING THE STANDARD FORM LENDER PARTICIPATION AGREEMENT, AND AUTHORIZING ITS EXECUTION IN CONNECTION WITH LENDERS APPROVED BY THE EXECUTIVE DIRECTOR WHEREAS, the Health and Safety Code of the State of California, commencing at Section 50171, ("the Act") authorizes cities or their redevelopment agencies to issue mortgage credit certificates pursuant to a duly adopted and qualifying mortgage credit certificate program ("MCC Program"); and, WHEREAS, federal law Timits the amount of mortgage credit certificates that may be issued in any calendar year by entities within a state and authorizes the legislature of such state to provide the method of allocation within the state; and, WHEREAS, Chapter 3.5 of Part I Division 31 of the Health and Safety Code, commencing at Section 50171, governs the allocation among governmental units in the state having the authority to issue mortgage credit certificates; and, WHEREAS, Section 50191 of the Act requires a local agency to file an application with the California Debt Limit Allocation Committee ("Committee") prior to the issuance of mortgage credit certificates; and, WHEREAS, the Committee has, under the authority of Health and Safety Code Section 50191, required a deposit of up to 1 percent of the portion of the allocation requested. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER, AND RESOLVE AS FOLLOWS: SECTION 1. City Approval of MCC Program. City Council hereby approves the City of Chula Vista Mortgage Credit Certificate Program in the form of the document entitled "MCC Operating Manual", dated July 1991, a copy of which is on file in the Office of the City Clerk registered therein as Document No. CO91 -127 ("MCC Program"). Resolution No. 17688 Page 2 SECTION 2. Assignment of Allocation and MCC Program. Pursuant to the authority of Health and Safety Code Section 50193, or such other provision of law which permits same, the City Council hereby assigns all of its allocation of qualified mortgage bonds under Chapter 3.5 of Division 31 of the Health and Safety Code to the Redevelopment Agency of the City of Chula Vista, and delegates the authority and responsibility to implement and administer the MCC Program to the Agency. SECTION 3. Acceptance of Assignment by Agency, The Agency Board accepts the assignment of the City's allocation of qualified mortgage bonds, and accepts the authority and duty to implement and administer the MCC Program. Agency further agrees to issue MCCs to qualifying homeowners of property located within the territory of the City, provided however, that if, after a reasonable attempt and for reasons beyond the control of the Agency, the Agency is unable to issue all of the assigned certificates to homeowners of property located within the territory of the City, any remaining certificates may be issued to qualifying homeowners of property located within the county of San Diego. SECTION 4. Agency's Application for Allocation. The Agency Board approves the application for an allocation of qualified mortgage bonds in the amount of $20,000,000, a copy of which is on file with the City Clerk registered therein as Document No. C091-127, to Committee, and authorizes the Executive Director to execute said application, and deliver notice of same to the Committee. SECTION 5. Agency Sets Aside 10% of Allocation for Lower Income Households The Agency agrees to set aside 10% of the allocation received from the State of California for low income households (Those households earning 80% or less of area median income). If the set-aside is unused, this set- aside may be released by the following formula: One-half of the unexpected set-aside funds released after twelve months, and the remainder at the end of eighteen months. SECTION 6. Authority to Convert to Mortgage Credit Certificate. Pursuant to the authority of Section 59197.2, the Agency Board hereby elects to exchange all of its authority to issue qualified mortgage bonds for ~ r 'IT T I' Resolution No. 17688 Page 3 authority to issue mortgage credit certificates ("MCC's"). The Executive Director shall notify the Committee of its election, and explain to the Committee the mechanism established in its program that will assure that the dollar amount of the mortgage credit certificate authority will not be exceeded. SECTION 7. Availability of Funds for Deposit. The Agency hereby certifies the availability of $200,000 as and for a deposit as required by the Committee under the authority of Section 50191, Health and Safety Code. SECTION 8. Authority to Certify Funds and Agreement to Forfeiture Rule. The City Manager, or his designee, the Finance Director, or other written designee, is hereby authorized to certify the amount of $200,000, and maintain certification in accordance with the current rules and regulations of the Committee, and to certify such fact to the Committee, includinq the promise to DaY same over to the Committee upon a event of forfeiture. SECTION 9. Approval of Standard Form Lender Participation Agreement The Agency does hereby approve the standard form Lender Participation Agreement in substantially the form as is on file in the Office of the City Clerk, registered there as Document No. CO 91-127, and authorizes the EExecutive Director to solicit qualified lenders willing to agree to the terms and conditions contained in same, and willing to comply with the MCC Program, and authorizes the Executive Director to execute same with such lenders as meet with the approval of the Executive Director. The Agency General Counsel is authorized to make minor modifications in the standard form as meet with his approval, not involving a substantially greater risk for the Agency. SECTION 10. This resolution shall take and be in full force and effect immediately upon the passage and adoption hereof, SECTION 11. Minutes. The City Clerk and Secretary to the Agency shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolution No. 17688 Page 4 Resolutions of said City and the Agency; and shall make a minute of the passage and adoption hereof in the minutes of the meeting at which the same is passed and adopted. Presented by ~~ailf~~b/~y~ Chris Salomone . Community Development Director ' Resolution No. 17688 Page 5 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 18th day of October, 1994, by the following vote: YES: Councilmembers: Horton, Moore, Rindone, Nader NOES: Councilmembers: None ABSENT: Councilmembers: Fox ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Beverly ~.Au:~helet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A, Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17688 was duly passed, approved, and adopted by the City Council at a joint City Council/Redevelopment Agency meeting held on the 18th day of October 1994. Executed this 18th day of October, 1994. Beverl~A.~uthelet City Clerk