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HomeMy WebLinkAbout94-11RESOLUTION 94-11 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING EXECUTION OF A COOPERATIVE AGREEMENT REGARDING THE USE OF MORTGAGE CREDIT CERTIFICATES IN THE CITY OF UKIAH AND THE ADMINISTRATION OF THE PROGRAM BY THE COMMUNITY DEVELOPMENT COMMISSION (CDC) OF MENDOCINO COUNTY WHEREAS, the Tax Reform Act of 1984, established the Mortgage Credit Certificate Program (hereinafter referred to as the "MCC Program") as a means of assisting qualified individuals with the acquisition of new and existing single family housing; and WHEREAS, Division 31, Part 1, Chapter 3.5, Article 4 of the California Health and Safety Code Sections 50197 et seq (the "Act") authorizes "... a redevelopment agency, housing authority, or other local entity, authorized by state law to issue qualified mortgage bonds..." to create and participate in MCC Programs; and WHEREAS, the Community Development Commission of Mendocino County ("CDC") has heretofore determined to engage in an MCC Program pursuant to the ACT in order to assist individual home purchasers in the County to afford both new and existing homes within the statutory limits as provided for the said Act; and WHEREAS, an application by the CDC for an MCC Program allocation will be submitted September 16, 1993, to the California Debt Limit Allocation Committee (CDLAC) and heard at its October, 1993, meeting; and WHEREAS, the City of Ukiah ("City") requests that the MCC allocation be available to eligible first time home buyers within the corporate limits of the City; and WHEREAS, the CDC and City wish to cooperate with one another pursuant to the Act in the exercise of their powers under the ACT for the purposes of the MCC Program; and WHEREAS, the CDC has the capacity to file an MCC application to CDLAC which includes the City and to administer an MCC Program; and WHEREAS, the City Council as reviewed City Manager a Cooperative Agreement between the City of Ukiab and the Community Development Commission of Mendocino County, for administration of the MCC Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiab does hereby, 1. Suppott the MCC Program and encourages qualified residents of the City to participate in the program. 2. The Cooperative Agreement, dated September 1, 1993, between the CDC and the City, attached as Exhibit A,, is hereby approved and the City Manager is hereby authorized and directed to execute and deliver the Agreement, for and in the name and on behalf of the City. The Mayor, the advice and consent of the City attorney, is authorized to approve any additions to or changes in the form of the agreement deemed necessaxy or advisable, approval of such additions or changes to the conclusively evidenced by the execution by the City Manager as so added to or changed. The City Manager, with the advice and consent of the City Attomey, is further authorized to enter into such additional agreements with CDC, execute such other documents, or take such other actions as they may deem necessary or appropriate to carry out the purpose and intent of the Agreement or to cooperate in the implementation of the Program. 3. ThiiXy three thousand three hundred and thirty three dollars ($33,333) of the Community Development Commission fund (335-0700-503) is designated as the City's share of security deposit required for the application and up to eight hundred and thirty three dollars ($833) is authorized from this fund to be expended for the City's share of the application fee. PASSED AND ADOPTED THIS 1st day of Se_member. 1993, by the following roll vote: AYES: Councilmembers: Mastin, Wattenburger, Shoemaker, and Mayor Schneiter NOES: None ABSENT: Counciimember: Malone Fred Schneiter, Mayor ATTEST: gay', City Cle~/ COOPERATIVE AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF MENDOCINO COUNTY AND THE CITY OF UKIAH THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is made and entered into as of September 1, 1993, by and between the Community Development Commission of Mendocino County (the "CDC"), and the City of Uldah (the "CITY"). WITHNESSETH: WHEREAS, Section 25 of the Internal Revenue Code of 1986 (the "Code") established the Mortgage Credit Certificate Program (the "MCC Program") as a means of assisting qualified individuals with the acquisition of new and existing single family housing; and WHEREAS, the CDC and the CITY have heretofore determined to engage in an MCC Program pursuant to Chapters 1399, Statutes of 1985 Section 50197, et seq of the Health and Safety Code of the State of California (the "Act") in order to assist individual home purchasers in the City of U-kiah and Mendocino County to afford both new and existing homes within the statutory limits as provided for in said Act; and WHEREAS, in furtherance of the MCC Program, the CDC may, from time to time, apply to the California Debt Limit Allocation Committee (CDLAC) for mortgage revenue bond allocations, the amount of which can be traded for authority to issue Mortgage Credit Certificates CMCCs") in a face amount equal to one quarter the value of the CDC's bond allocation; and WHEREAS, the next application deadline for reservation of MCC authority from CDLAC is September 16, 1993; and WHEREAS, the CITY and the CDC wish to cooperate with one another pursuant to the Act in the exercise of their powers under the Act for the pml>oses of the MCC Program; and WHEREAS, the CDC has the capacity both to issue bonds and to establish and administer an MCC Program; and WHEREAS, the CDC intends to administer an MCC Program in the County, and the CITY desires that the MCC Program be applicable to eligible real property in the City; NOW, THEREFORE, in consideration of the mutual covenants provided in ads Cooperative Agreement, the CDC and the CITY agree as follows: SECTION 1. The words and phrases of this Cooperative Agreement shall; unless otherwise def'med in this Cooperative Agreement, have the meanings assigned to such words and phrases in the Act. SECTION 2. The CDC agrees to issue mortgage credit certificates to eligible first time home buyers in the City pursuant to Sections 8869.85 (a) and 8869.89 of the Government Code of the State of California. SECTION 3. The CDC shall provide for the effective administration of an MCC progmm within the geographical boundaries of the County. The CDC shall cooperate with local real estate and lending institutions in order to maintain their participation in securing applications from eligible applicants for review and approval by CDC representatives on behalf of the CDC and the CITY. SECTION 4. Nothing in ads Cooperative Agreement shall prevent the CDC from entering into one or more similar agreements with other municipal corporations within the County, if deemed necessary and advisable to do so by the CDC, so long as such other agreements are not inconsistent with this Cooperative Agreement. SECTION 5. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the CDC and the CITY at any time as long as those amendments comply with State and Federal MCC Program regulations. SECTION 6. This Cooperative Agreement may be terminated by either party upon 90 days written notice delivered to the other party. The term of this Cooperative Agreement shall extend until the earlier of; (1) termination by written notice, (2) the mortgage credit certificates issued from the allocation referred to Section 2 or pursuant to any amended or supplemental agreements are fully retired, or (3) December 31, 1993, if an allocation of MCCs is not received from CDLAC by that date. SECTION 7. The CITY agrees to reimburse the CDC for its pro rata share of the CDLAC application fees and MCC reserve authority. The injtlal application fee is $300 with the MCC reserve calculated at 0.00025 of the bond allocation. For example, should a $10,000,000 allocation be received by the CDC, the total application fee to CDLAC would be $2,500 (including the initial $300 application fee). The CITY would pay its pro rata share ($625 or $833) depending on the number of jurisdictions participating in the MCC Program. SECTION 8. The CITY agrees to provide its pro rata share of the security deposit required by CDLAC. For example, if the total deposit amounts to $100,000 (1% of the requested issuing amount of $10,000,000), the CITY will provide its pro rata share ($25,000, or $33,333) to be set aside in a local interest bearing account and only be released to CDLAC if the CDC is unable to issue at least one (1) MCC. SECTION 9. Nothing contained herein shall be interpreted to impose a relationship of parmers or joint ventures between the CITY and the CDC. lN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunder duly authorized, and their officials seal to be hereunto affixed, all as of the day first above written. COMMUNITY DEVELOPMENT~IMISSION OF MENDOCINO COUNTY Chairperson/Executi ve Di rector Date ATTEST: City Manager Date ATTEST:~/~ ~/~dt BY: .