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HomeMy WebLinkAbout2007/02/06 Item 5 CITY COUNCIL AGENDA STATEMENT .s-'Yf:.. ellY OF CHUlA VISTA ~ February 6, 2007, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING EXECUTION OF A COOPERATIVE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO REGARDING CONTINUED PARTICIPATION IN THE SAN DIEGO REGIONAL MORTGAGE CREDIT CERTIFICATE PROGRAM ACTING DIRECTOR OF COM~ITY DEVELOPMENT INTERIM CITY MANAGER rI/ SUBMITTED BY: REVIEWED BY: 4/STHS VOTE: YES D NO ~ BACKGROUND The City currently participates in the San Diego County Regional Mortgage Credit Certificate Program. The County of San Diego is the lead agency and contracts with a private sector firm to issue Mortgage Credit Certificates (MCCs) to low and moderate income first time home buyers. The agreement between the City and the County of San Diego authorizes continued participation in the San Diego County Regional Mortgage Credit Certificate Program utilizing funding from the California Debt Limit Allocation Committee (CDLAC). ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Adopt the resolution authorizing the City Manager to execute the Cooperative Agreement between the City and the County of San Diego regarding the City's continued participation in the San Diego Regional Mortgage Credit Certificate Program, and future amendments upon concurrence of the City Attorney. 5/ February 6, 2007, Item~ Page 2 of2 BOARDS/COMMISSION RECOMMENDA nON Not applicable. DISCUSSION The Mortgage Credit Certificate operates as a tax credit. The qualified home buyer becomes eligible to take a federal income tax credit of twenty percent (20%) of the annual interest paid on the mortgage, thereby reducing the income taxes and increasing the buyer's disposable income. Increased buyer income results in increased capacity to qualify for a mortgage loan. In the San Diego Regional Mortgage Credit Certificate Program, the County contracts with an experienced private sector firm to administer the program ("Administrator"). The "Administrator" educates the lenders and real estate community on the program, advertises the program and issues the MCCs. Each participating jurisdiction contributes to the program administration costs in direct proportion to the funds utilized by the jurisdiction, and also contributes to the share of fees charged by the County for participation in the MCC Program. In fiscal year 2005-2006, the City paid approximately $30,000 for its proportionate share of application and administrative costs associated with the issuance of 64 MCCs in Chula Vista. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(l) is not applicable to this decision. FISCAL IMPACT The costs for the City's share of the program are budgeted in the Community Development Department budget. The City's administrative costs are based on the proportion of tax credits used in the City of Chula Vista. In fiscal year 2005-2006, 64 MCCs were issued at a cost of approximately $30,000. Prepared by: Jose Dorado, Community Development Specialist II, Community Development Dept. S..1. THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL /~ t5j.:k"L ,0(1"4 /J/,O Ann Moor City Attorney Dated: I fd-S /()7 , Cooperative Agreement between the County of San Diego and the City of Chula Vista S-3 COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO AND THE CITY OF CHULA VISTA TillS COOPERATIVE AGREEMENT (the "Agreement") is hereby made and entered into as of ,20_ by and between the County of San Diego, a legal subdivision and body corporate and politic of the State of California (the "County"), and the City of Chula Vista (the "City"), a political subdivision of the State of California. WITNESSETH WHEREAS, the County has determined to provide assistance in the financing of homes for qualified first-time homebuyers in the County and the City with a program to issue mortgage credit certificates pursuant to Part I and Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act"); and WHEREAS, the County, pursuant to the Act, has established the San Diego Regional Mortgage Credit Certificate Program (the "Program"), and has determined to cooperate with the City pursuant to the Act and in the exercise of its powers under the Act for purposes of the Program; and WHEREAS, the City has adopted the Program and determined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual 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 phrases in the Act. SECTION 2. The County and the City agree to collaborate and use their best efforts in the process of applying to the California Debt Limit Allocation Committee ("CDLAC") for an annual allocation of mortgage credit certificates ("MCC") for the San Diego Regional Mortgage Credit Certificate Program. SECTION 3. The City hereby agrees to cooperate with the County and other participating cities in the joint exercise of their powers for the purpose of issuing mortgage credit certificates pursuant to the Act by agreeing that the County shall exercise its powers to issue mortgage credit certificates under the Program, as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City. ..5 L SECTION 4. The City agrees to undertake such further proceeding or actions as may be necessary in order to carry out the terms and the intent of this Agreement. The County has entered into cooperative agreements with other cities within the County, and nothing in this Agreement shall prevent the County from entering into one or more additional agreements with other cities within the County. SECTION 5. This Agreement shall expire and be of no further force and effect upon termination of the Program. Furthermore, either the City or the County may terminate this Agreement by giving a 30-day written notice to the other party. The City, however, may elect, without terminating this Agreement, not to participate in any application by the County for any future allocation from CDLAC by giving a 30-day written notice. SECTION 6. By the City's participation in the Program, the City elects to participate in any application by the county for an allocation of mortgage credit certificates from California Debt Limit Allocation Committee ("CDLAC"), the City shall agree to proportionately share, with other participating jurisdictions, the operating costs resulting from the allocation. The operating costs shall include any performance guarantee deposit required by CDLAC, the application filing fee and the administrative costs for each applicable allocation. The City agrees to pay its proportional share (based upon the number of Program participants within their jurisdiction) of the operating costs to the County, or to the County's contracted Program administrator. SECTION 7. This Agreement may be amended only by a supplemental agreement executed by the City and the County 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 certificates issued by the County in connection with the Program. SECTION 8. By entering into this Agreement, the City does not abrogate any of its legal duties imposed by state law or its Charter or Municipal Code. Any provisions of this Agreement the terms of which provide for the payment of funds or provide for the services to be furnished by the parties hereto shall be subject to the availability of funds for such purposes. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized and their official seals to be hereto affixed, all as of the day and year fust above written. COUNTY OF SAN DIEGO CITY OF CHULA VISTA By: Catherine Trout Lichterman, Director Department of Housing and Community Development APPROVED AS TO FORM AND LEGALITY By: William D. Smith Senior Deputy, County Counsel s-E:- RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING EXECUTION OF A COOPERATIVE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO REGARDING PARTICIPATION IN THE SAN DIEGO REGIONAL MORTGAGE CREDIT CERTIFICATE PROGRAM WHEREAS, there is a continued need for affordable housing ownership opportunities within the City of Chula Vista (the "City") and the County of San Diego (the "County") for qualified first time home buyers; and WHEREAS, the Tax Reform Act of 1984 established Mortgage Credit Certificates ("MCC") as a means of assisting qualified first time homebuyers with the acquisition of new and existing single family housing; WHEREAS, Division 31, Part 1, Chapter 35, Article 4 of the California Health and Safety Code Sections 50197 et seq (the "Act") authorizes counties, cities, and redevelopment agencies to create and participate in MCC programs; and WHEREAS, the County, pursuant to the Act, has established the San Diego County Regional Mortgage Credit Certificate Program (the "Program"), and has determined to cooperate with the City pursuant to the Act and in the exercise of its powers under the Act for the purposes of the Program; and WHEREAS, the City requests that Mortgage Credit Certificates be available to first-time homebuyers within the corporate limits of the City when the City participates with the County in receiving MCC allocation; and WHEREAS, the County and the City wish to cooperate with one another pursuant to the Act in the exercise of their powers under the Act for the purpose of the MCC program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the execution of a Cooperative Agreement between the City of Chula Vista and the County of San Diego regarding participation in the San Diego Regional Mortgage Credit Certificate Program. Presented by Appro~d as to form by ~LAJ,"", ~ff . oore 0 City Attorney Ann Hix Acting Director of Community Development ~-&