HomeMy WebLinkAbout1998-02-25 HAC MIN CITY OF CHULA VISTA
MINUTES
HOUSING ADVISORY COMMISSION
Wednesday, February 25, 1998 Conference Room 2
3:30 p.m. Public Services Building
CALL TO ORDER/ROLL 3:35 p.m.
PRESENT: ; Chair Madrid, Member Clayton, Lopez-Gonzalez, Ahamed
ABSENT: Dufresne, Helton
STAFF: Community Development Specialist I Foland,Administrative Secretary(Acting)Hernandez
EX-OFFICIO: Lembo (Unexcused absence), Worth(Present)
1. MSC (Madrid/Clayton)to approve January 28, 1998 minutes (4-0-2-Helton, Dufresne absent).
2. REISSUED MORTGAGE CREDIT CERTIFICATE PROGRAM (RMCC) - Ms. Foland is requesting
the Housing Advisory Commission to approve the implementation of a Reissued Mortgage Credit Certificate program.
The City of Chula Vista has a Mortgage Credit Certificate(MCC)program, whereby first time home buyers receive
a tax credit on the mortgage interest that they annually pay on their home. Ms. Foland indicated that under the current
guidelines of'the MCC program they are unable to refinance their original loan, otherwise they would lose the tax
benefit of the MCC. In December of 1996, the IRS finalized the Reissued Mortgage Credit Certificate program
regulations and staff would like for the City of Chula Vista to implement the Reissued MCC program. This would
allow a current MCC holder to refinance their original loan and still maintain the tax credit benefit.
Ms. Foland explained how the Reissue MCC program would work. Basically, a MCC holder has an original
mortgage loan and they refinance it. It does not have an effect on property value or anything other than maintaining
their tax credit, whereas before, they would lose it. The only hook is that if they want cash out, the Reissue MCC
cannot exceed what the original loan value was. In other words, whatever their original loan payoff is, that would
be what the reissued MCC would be valued at. The.amount of time the owners spent in their home would be
subtracted from the life of the loan as well.
Member Clayton asked if the MCC holders still have to meet the same qualifying criteria.
Ms. Foland responded no, the only qualifying criteria is that the home is still the principle residence and a change in
title hasn't occurred. There is no income re-eligibility requirements nor purchase price re-eligibility requirements.
MSC (Madrid/Clayton) to accept the Reissue Mortgage Credit Certificate Program (4-0-2 Helton, Dufresne
absent).
3. STAFF REPORTS - None
4. MEMBERS COMMENTS -None
5. ADJOURNMENT -4:48 P.M. to the next scheduled meeting for March 25, 1998.
_ i Gil
Recorder, Alicia emandez