HomeMy WebLinkAboutCC RES 94-125RESOLUTION NO. 94-125
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, ADOPTING A MORTGAGE
CREDIT CERTIFICATE PROGRAM IN COOPERATION WITH THE
COUNTY OF RIVERSIDE, AUTHORIZING AN APPLICATION TO
THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE IN
1995 FOR AN ALLOCATION FOR THE ISSUANCE OF
MORTGAGE CREDIT CERTIFICATES AND THE TRANSFER OF
SUCH ALLOCATION TO THE COUNTY OF RIVERSIDE
WHEREAS, there is a shortage in the County of Riverside ("County")
and in the City of Palm Desert ("City") of decent housing for 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
87-564 on December 22, 1987 establfshing a Mortqage Credit Certificate
Program pursuant to Section 51907 et. seq. of the Health and Safety
Code of the State of California (the "Act") and Section 25 of the
Internal Revenue Code (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 "Proqram"); and
WHEREAS, the City has found and determined that it is in the best
interest of the City to particfpate 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 mortqage bonds that may be issued in any
calendar year by entities within a State and authorized 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 50171j qoverns 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
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
RESOLUTION NO. 94�it5 "
WHEREAS, one percent of the amount of the allocation being
requested by the City is now being held by the County in an escrow
account. ,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Palm Desert, California, 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 $8,000,000 to issue qualified
mortgage bonds and one hundred percent (100$) of said allocation is to
be utilized for mortgage credit certificates. It is hereby authorized
that, upon receipt, such allocation is to be transferred to the County,
who will issue mortgage credit certificates pursuant to the terms of
the Ptogram 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 and advisable in order to effectuate the purposes of
this resolutions 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 affect from and after its
adoption.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm
Desert City Council, held on this 22nd , day ofDecember , 1994, by the
following vote, to wit:
AYE S: BENSON� KELLY, SNYDER, WILSON� CRITES
NOES : NONE
ABSENT: NONE
ABSTAIN: NONE
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SHEILA R. GI AN, City rk
City of Palm Desert, Cal'" rnia
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