HomeMy WebLinkAboutCC RES 94-031RESOLUTION NO. 94-31
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM DESERT, CALIFORNIA,
AUTHORIZING AN APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION
COMMITTEE AND TO PERMIT THE ISSUANCE OF
MORTGAGE CREDIT CERTIFICATES IN LIEU OF
QUALIFIED MORTGAGE BONDS.
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WHEREAS, there is a shortage in the County of Riverside (the
"County") and in the City of Palm Desert (the "City") of decent, safe
and sanitary housing, particularly of housing affordable by persons in
the low and moderate end of the purc�asing 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 51097 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 issue mortgage
credit certificates to qualified first-time homebuyers by allowing them
to take a tax credit equal to 20 percent of the mortgaqe 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 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 Proqram 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 by 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 require a location 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 a portion 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. 94-31
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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 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 of 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 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 as 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: This Resolution shall take effect from and after
its adoption.
PASSED, APPROVED and ADOPTED at a regular meeting of the Palm
Desert City Council, held on this lOth, day of March, 1994, by the
following vote, to wit: /
AYES:
NOES:
ABSENT:
ABSTAIN:
SHEILA R.�
City of Pa
CRITES,
NONE
WILSON
NONE
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LIGAN, C#
Desert,j�
KELLY, SNYDER, WILSON
y Clerk
lifornia
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