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HomeMy WebLinkAbout4.3 Mortgage Certificate Program i CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 11, 1992 SUBJECT: Agreement with Alameda County regarding Mortgage Credit Certificate (MCC) Program REPORT PREPARED BY: 15-- Dennis Carrington, Senior Planner EXHIBITS ATTACHED: A. Copy of City/County MCC Agreement. B. Copy of Program III-N of Housing Element. RECOMMENDATIONJ,04 Authorize the City Manager to sign the City/County MCG Agreement FINANCIAL STATEMENT: The cost to the City of participating in the _ program will be $4 ,500 which was included in_ the 1991-1992 budget. DESCRIPTION: The City has participated in the MCC Program since 1989 . This program enables the City to provide assistance to first time home buyers of new and existing single family dwelling units in Alameda County. Program III-N of the Housing Element (Exhibit B) directs that the City continue to participate in the MCC program. Participants in the program may receive up to a 20% credit of the annual interest paid on 'the mortgage against income taxes . During the period from June 1991 to April 1992 , 5 certificates were issued and four reservations were made that are outstanding and likely to be issued. If the program is funded at its current level, it is anticipated that 10 certificates would be issued in Dublin during 1992 . Staff recommends that the City Council authorize the City Manager to sign the City/County MCC Agreement (Exhibit A) . --------------------------------------------------------------------- ITEM NO. COPIES TO: General/Agenda File [mcc1992 ] Senior Planner Application File ---------------------------------------------------- COPIES TO: ITEM NO. CITY CLERf�K FILE r COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AND THE CITY OF THIS COOPERATIVE AGREEMENT (this "Agreement") , is made and entered into as of 1992, by and between the County of Alameda, a political su ivision of the State of California (tne "County") , and the City of a political subdivision of the State of California 9ITNESSETH: 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 "Program") pursuant to Part 1 and Part S 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 City in the exercise of its powers under the Act for 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 geograpnic 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 pokers under the Program, all as more specifically set c orn 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 behalf of the City, in accordance with Section 8869. 8S 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_ 8869.8S(d) of the Government Code. SECTION 3. The City agrees to undertake sucn furtner proceedings or actions as may e 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. EXHISM BE-4- SECTION 4. This Agreement may be amended by one or more supplemental 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 wno purchase a home with assistance from the Program. SECTION S. This agreement shall continue in effect throughout the period during which the County is empowered to engage in the Program pursuant to the Act, provided however, that the City may decline to cooperate with the County under this Agreement, in connection witn any such Program of the County, upon notice to the County to that effect within 1S 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 �IMEREOF, the parties hereto have caused tnis Agreement to be executed icialtseals bto officers and their official written. COUNTY OF ALANLEDA CITY OF BY BY CITY mANAGER Title ATTEST: ATTEST: BY BY CITY CLERK Title APPROVED AS TO FORM: APPROVED AS TO FOR,,q: BY BY COUNTY COUNSEL CITY ATTORNEY 2096H/7-8 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 200 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 , increag income available to pay the mortgage . Under the program the City currently has two reservations issued worth $230 , 900 and seven MCC ' s remaining 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 ram Undertaken: Continue participation in the program Financing : Minor administrative cost Implementation Responsibility: Planning Department Time frame : Ongoing implementation 6 .4 CONSISTENCY WITH OTHER GENERAL PLAW ELEMENTS ( 65300 . 5) Government Code Section 650 • ulinternally the consistent plan and and its elements comprise an integrated, compatible statement of policies of the City. The other elements of the General Plan evised 1HousingsEdlement . Revisions ith preparation of the r required to Section 1 . 0 ( Background) , 2 : 0 (Land Use Element) and 6 . 0 (Housing Element Summary) of the Dublin General Plan . EXHIB11 61