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Home My WebLink About4.06 MortgageCrCertPrgm >:.~. ...~....._...,...~.~~":;..;.'~~'~~;c ...;.. ;~_....__. .:-.".;'~~~ ,"':..~; -;~_:.~:.. .~-.:;~-:_:!.f:..-~;~..~.~.;~L~~:i..~;i:~&,~~.%~~.;x~.;;~~;D.;~:-.~~t),.;.,...~~i.~ ""'-~;L"''''.:=o;:;,\oO'''-''.-h<~;W~~~~~';;''~''''L.'t..t:i.1~''~~-:'i~~:;;.' /:-~~,~. e e CITY OF DUBLIN AGENDA STAT~ENT CITY COUNCIL MEETING DATE: October 10, 1994 SUBJECT: Agreement with Alameda County regarding Mortgage Credit certificate (MCC) Program REPORT PREPARED BY: j~ Tasha Huston, Associate Planner EXHIBITS ATTACHED: A. ~ Resolution approving MCC Program, authorizing the City Manager and city L/ Attorney to execute for and on behalf of ~ the City a cooperative agreement with the County, authorizing an application to the California Debt Limit Allocation Committee (CDLAC) for a funding allocation for issuance of MCCs, and authorizing payment of fees to the County for payment for administering the MCC program B. / city/County MCC Agreement C. /program III-N of Housing Element (lA/V . . RECOMMENDATION: I-r \' Adopt resolut1.on approv1.ng the MCC Program ~ and authorizing the City Manager and City Attorney to sign the City/County MCC Agreement. FINANCIAL STATEMENT: The cost to the City of participating in the program will be $4,000 which was included in the 1994-1995 budget. DESCRIPTION: The City has participated in the MCC Program since 1989. This program enables the City to provide financing assistance for first time home buyers who are in the lower end of the home purchasing spectrum and who are purchasing new or existing single family dwelling units in Alameda County. Participants in the program may receive up to a 20% credit of the annual interest paid on the mortgage against income taxes. During Fiscal Year 1993-1994, 9 certificates were issued for Dublin. For the first portion of Fiscal Year 1994-1995 there have been 5 certificates issued for Dublin. If the program is funded at its current level, it is anticipated that a total of 15 certificates will be issued in Dublin during 1994-1995. The Alameda County Housing and Community Development (HCD) Department staff and City staff will be working on several strategies to increase the use of mortgage credit certificates in the coming months. Program III-N of the Housing Element (EXhibit C) directs that the City continue to participate in the MCC Program. staff recommends that the City Council adopt the attached Resolution which approves the MCC Program and authorizes the City Manager and City Attorney to sign the city/County MCC Agreement (EXhibit B). a:\MCC94.DOC . C'1TT I~LE~QI . FILE 6 () ---------~/--~----------------------------------------- ---- ITEM NO.~ COPIES TO: General/Agenda File Associate Planner HCD File e e RESOLUTION NO. - 94 A RESOLUTION OF THE CITY COUNCIL OF THE cry OF DUBLIN A RESOLUTION APPROVING A MORTGAGE CREDIT CERTIFICATE PROGRAM IN COOPERATION WITH THE COUNTY OF ALAMEDA, AUTHORIZING THE CITY MANAGER AND THE CITY A TIORNEY TO EXECUTE FOR AND ON BEHALF OF THE CITY A COOPERATIVE AGREEMENT BETWEEN THE CITY AND THE COUNTY, AUTHORIZING AN APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION FOR ISSUANCE OF MORTGAGE CREDIT CERTIFICATES; AND AUTHORIZING THE PAYMENT OF FEES TO THE COUNTY FOR THE PAYMENT OF A PORTION OF THE COSTS OF ADMINISTERING SUCH MORTGAGE CREDIT CERTIFICATE PROGRAM. WHEREAS, there is a shortage in the City of Dublin (the "City") and the County of Alameda (the "County") of decent, safe and sanitary housing affordable by persons in the lower end of the home purchasing spectrum, and a consequent need to provide assistance to such persons for the financing of homes in the City and County; and . WHEREAS, The City Council wishes to provide for a home mortgage credit certiticate program (the "Program") pursuant to Chapter 3.5 of Part 1 of Division 31 of the Health and Safety Code of the State of California (the" Act") and to issue mortgage credit certificates, pursuant to the Act and Section 25 of the Internal Revenue Code of 1986, as amended (the "Code"), to assist in the tinancing of homes in the City for persons in the lower end of the home purchasing spectrum; and WHEREAS, The Council finds and determines that it is in the best interest of the City to adopt the Program in conjunction with the County and to consent to the County operating the Program within the geographic boundaries of the City; and WHEREAS, Sections 25 and 146 of the Code limit the amount of mortgage credit certificates that may be issued in any calendar year by entities within a state and authorize the legislature of each state to provide the method of allocating authority to issue mortgage credit certiticates within such state; and WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code for the State of California (the Government Code") governs the allocation in State of California of the state ceiling (as that term is defined in the Government Code) among governmental units having authority to issue mortgage credit certiticates; and WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an application for a portion of the state ceiling with or upon the direction of the California Debt Limit Allocation Committee (the "Committee") prior to issuing mortgage credit certiticates; and WHEREAS, the City has determined to apply or have the County apply on its behalf for a portion of the state ceiling and to assign to the County, pursuant to Section 8869.85 (d) of the Government Code, the total amount, if any, of authority to issue mortgage credit certiticates allocated to the City by the Committee; II EXHffiIT A e e NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Dublin as follows: 1. The City hereby adopts the Program for the purpose of providing assistance in the financing of homes for persons in the lower end of the home purchasing spectrum in the City with respect to all property located within the geographic boundaries of the City. The City Manager or hislher designee is hereby authorized to work with the County in developing the Program. 2. The Cooperative Agreement between the County and each of the Participating Cities (the II Agreement"), a copy of which is attached hereto as Exhibit A, is hereby approved, and the City Manager and the City Attorney are hereby authorized and directed to execute and deliver said Agreement, for and in the name and on behalf of the City. The City Manager, with the advice and consent of the City Attorney is authorized to approve any additions to or changes in the form of said Agreement which he/she, with the advice and consent of the City Attorney, deems necessary or advisable, hislher approval of such conditions or changes to be conclusively evidenced by the execution by the City Manager of said Agreement as so added to or changed. 3. The City Manager, or hislher designee, is hereby authorized, on behalf of the City and in cooperation with the County, to submit one or more applications, and such other documents as may be required, to or upon the direction of the Committee, for an allocation of a portion of the state ceiling, in an amount not to exceed the maximum amount for which the City and County may apply, for application towards the issuance of mortgage credit certificates. 4. The City Manager or hislhcr designee is hereby authorized to pay to the County a share of the costs of operating the Program as to be determined by the City and County. 6. The City Manager or hislher designee, with the advice and consent of the City Manager, is further authorized to enter into such additional agreements with the County, execute such other documents or take such other actions as he/she may deem necessary or appropriate in the implementation of the Program, including without limitation, the application to the Committee for and allocation of a portion of the state ceiling for the issuance of mortgage credit certificates. All previous action taken by the officers of the City in connection with the Program and the action authorized are hereby ratitied and approved. 7. The resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED this loth day of October, 1994. AYES: NOES: ABSENT: ABSTAIN: " Mayor ATTEST: City Clerk e e COOPERA TIVE AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AND THE CITY OF DUBLIN THIS COOPERATIVE AGREEMENT (this "Agreement"), is made and entered into as of , 1994, by and between the County of Alameda, a political subdivision of the State of California (the "County"), and the City of Dublin a political subdivision of the State of California (the "City"). WITNESSETH: WHEREAS, the County has determined to provide assistance in the financing of homes for persons in the lower end of the home purchasing spectrum in the County and the City with a program to issue mortgage credit certificates and single family mortgage revenue bonds the (the "Program") pursuant to Part land Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act"); and WHEREAS, the County has established the Program pursuant to the Act and has determined to cooperate with the County in the exercise of its 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 County agrees to undertake the Program and to issue mortgage credit certificates and single family mortgage revenue bonds thereunder pursuant to the Act. County agrees that issuance of single family mortgage revenue bonds with respect to property located within the geographic boundaries of the City will be only for those projects approved by the Planning Director of the City or his/her designee. SECTION 2. City hereby agrees to cooperate with the County in the exercise jointly or otherwise of their powers for the purpose of assisting in the financing of homes pursuant to the act by agreeing that the County shall exercise its powers under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City. In particular, and without limiting the foregoing, the City agrees, on the request of the County, either to apply or to authorize the County to apply on the behalf of the City, in accordance with Section 8869.85 of the Government Code, for an allocation of the state ceiling to issue mortgage credit certificates and single family mortgage revenue bonds and to transfer any such allocation received to the County under the terms, of Section 8869. 85 (d) of the Government Code. SECTION 3. The City agrees to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Agreement. Nothing in this Agreement shall prevent the County from entering into one or more agreements with the other political subdivisions within the County, if deemed necessary and advisable to do so by the County. SECTION 4. This Agreement may be amended by one or more supplemental t .- agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the bonds or citizens who purchase a home with assistance from the Program. EXHIBIT B e e - . SECTION 5. This agreement shall continue in effect throughout the period during which the County is empowered to engage in the Program pursuant to the Act, I?rovided however, that the City may decline to cooperate with the County under this Agreement, in connection with any such Program of the County, upon notice to the County to that effect within 15 days of receipt of notice from the County of its intention to engage in the Program. Such notice from the County shall be given to the City at least 31 days prior to the establishment of any such Program. IN WITNESS WHEREOF, the parties hereto have executed this contract on the day first mentioned above. CITY OF DUBLIN COUNTY OF ALAMEDA City lYIanager Planning Director ATI'EST: City Clerk APPROVED AS TO FORty!: APPROVED AS 'IO FORM Kelvin C. Booty County Counsel City Attorney By: Deputy County Counsel " '" CITY OF DU:eN GENERAL PLAN EXCEroe Program III-N N. Participate in the Alameda County Mortgage Credit Certification (MCC) Program. Through the use of a MCC, eligible first-time home buyers increase their eligibility to qualify for a mortgage loan and reduce their effective mortgage interest rate approximately 2 percentage points. MCC recipients may take 20% of their annual mortgage interest payments as a dollar for dollar tax credit against their federal income taxes. The home buyer adjusts federal income tax withholdings, increasing' income available to pay the mortgage. Under the program, the City currently has two reservations issued worth $230,900 and seven MCC's re$aining worth $769,100. Policy Objective: Increase the eligibility of first time home buyers to qualify for mortgage loans Actions Undertaken: On January 23, 1989, the City indicated its interest in participating in the MCC Program. Two reservations for Dublin residents have been issued. Actions to be Undertaken: Continue participation in the program Financing: Minor administrative cost Implementation Responsibility: Planning Department Time frame: Ongoing implementation 6.4 CONSISTENCY WITH OTHER GENERAL PLAN ELEMENTS (65300.5) , EXHIBIT C