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Home My WebLink AboutReso. 1989-068 - Authorizing application to the california debt limit allocation commitee � } � I I � 'I ' y � '� ' � � RESOLUTION NO. �� 1 ;i � � f , A RESOLUTZON OF THE CITY OF REDDING � � IAUTHORIZING ORLM RTTGAGE CREDIT CERTIFICATEEISSUANCE AUTH RITYN COMMITTEE I 1 WHEREAS, there is a recognized need for affordable homeownership ',� opportunities within the City of Redding, particularly for households at the ' � I lower end of the purchasing spectrum; and j WHEREAS, the issuance of Mortgage Credit Certificate.s (MCCs to 1'� � I � i i) individual home purchasers in other California jurisdictions has been shown to ; I I�I enhance the affordability of both new and existing homes within the statutory 'i �' i I� limits; and �� i� WHEREAS, the Redding Redevelopment Agency has expressed its desire to ' i � implement a Mortgage Credit Certificate Program for the residents of the City ! of Redding; and � WHEREAS, Mortgage Credit Certificates are of comparable value to the subsidy provided by Mortgage Revenue Bonds with very few associated costs; and ; i WHEREAS, Congress has e�ended the MCC Program through the end of 1989. �; �. li NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding � � that th.e City Manager is hereby authorized to make application to the j � California Debt Limit Allocation Committee (CDLAC) in the name of the City ; � I tj Council of the City of Redding for a mortgage bond allocation in the amount of I il I I $20,000,000 to be traded for authority to issue Mortgage Credit Certificates �� in a face amount of $5,000,000 (based upon the 4:1 trade-in value of bond ' �' i� �! allocation) with the Redding Redevelopment Agency designated as the Agency i . , i i I� responsible for implementation of this program within the City of Redding; and BE IT FURTHER RESOLVED that a letter be sent with the application to describe the cooperative relationship between the City of Redding and Shasta � �; .� � County allowing for the transfer of allocations between jurisdictions, should i ;I � � 'i the need arise to do so. � �iI �'� . i ' I I, � ', � i � - 1 - ! �` bC I II il�� ; �: � . . i �� i � � � I HEREBY CERTIFY that the foregoing resolution was introduced and read at ! �� i � an adjourned regular meeting of the City Council of the City of Redding on the ,II'� 28th day of Februdr_y , 1989, and was duly adopted at said meeting by the �;i � �� following vote: � I I AYES: COUNCIL t�r�Exs: Buffum, Carter, Dahl , Fulton, and Johannessen NOES: COUNCIL MEMBERS: fdone ABSTAIN: COUNCIL MEMBERS: fdOn2 ABSENT: COUNCIL N�MBERS: N0112 � , � ��G� �� 1 �! K. URIC� J HANNESSEN, Mayor i � - Ci y of Redding � �, �� I ATTEST: � � i �� .�� ETHEL A. NICHOLS, City Clerk I � � FORM AP OVED: I !I I I' � A. HAYS, C ty torney I � � � I �i ! i ' � , � � ':i �i i II � �� i i� � ,� �' � I � � � I '; I I - 2 - I. �� IP � , n f , I . . . . . .. . . . I • . � • • . � • ' � � COOPERATIVE AGREEMENT IBETWEEN THE COUNTY OF SHASTA AND THE CITY OF REDDING „ THIS COOPERATIVE AGREEMENT (the Cooperative Agreement ), is made and entered into on the 23th day of February , 1989, by and between the CO:,TNTY OF SHASTA, a legal subdivision and body corporate and politic of the State of California (the "County"), and the CITY OF REDDING; a municipal corporation of the State of California (the "City"): W I T N E S S E T H: WHEREAS, the Tax Reform Act of 1984 established the Mortgage Credit Certificate Program (hereinafter referred to as "MCC Program") as a means of assisting qualified individuals with the acquisition of new and existing single-family housing; and Wf�REAS, the County 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 and County to aL�ord both new and existing homes within the statutory limits as provided for in said Act; and WHEREAS, in furtherance of the MCC Program, the County Board of Supervisors has authorized the County to apply to the California Debt Limit Allocation CoIIunittee (CDLAC) in the name of Shasta County for a mortgage bond allocation in the amount of �10,000,000 to be traded for authority to issue Kortgage Credit Certificates in a face amount of $2,500,000 (based upon the � 4:1 trade-in value of bond allocation); and 6iHEREAS, in furtherance of the MCC Program, the Redding City Council has authorized the City to apply to the California Debt Limit Allocation Co�nittee (CDLAC) in the name of the City of Redding for a mortgage bond allocation in the amount of $20,000,000 to be traded for authority to issue mortgage credit certificates in a face amount of �5,000,000; and WHEREAS, it is e�ected that both applications for the MCC Program will be subsequently approved by the CDLAC by April, 1989; and WHEREAS, the City and County 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 County will be operating an MCC Program in the County; an� - 1 - � • f • • • � .• � � � I � I � a. � I ' � � WHEREAS, the City will be operating an MCC Program in the City of ; !� Redding; and � � WHEREAS, the City and County wish to have the ability to transfer �� MCC authority between jurisdictions, should the need arise to do so; and '' � NOW, THEREFORE, in consideration of the covenants hereinafter ' provided, the parties hereto agree as follows: , 1. The words and phrases of this Cooperative Agreement shall, for ! all purposes hereof unless otherwise defined herein, have the meanings ,� assigned to such words and phrases in the Act. � 2. The County shall staff a program for the effective administra- II tion of the MCC program within the geographical boundaries of the County. The 4 . ;i County shall cooperate with local real estate and lending institutions in ' ; �� order to maintain their participation in securing applications from eligible I� applicants for review and approval by County representatives on behalf of the County. 3. The City shall staff a program for the e`fective administration I of the MCC program within the geographical Yioundaries of the City. The City + �� shall cooperate with local real estate and lending institutions in order to 1 �; maintain their participation in securing applications from eligible applicants i � I for review and approval by City representatives on behalf of the City. 1 4. If, during the term of this agreement, the City or County sees ' that either cannot utilize all of the MCC allocation provided by the CDLAC, � either jurisdiction will have the option to assign the balance. of the ,I 1 I allocation to the other jurisdiction for use within the other party's juris- f diction upon the consent of. the receiving jurisdiction. � , � 5. This agreement may be terminated by either party upon 90 days � written notice delivered to the other party. The term of this agreement shall e�rtend until such termination by written notice. ; il 6. The City and the County both agree to undertake such further � ', proceedings or actions as may be necessary to carry out the terms and intent i of this agreement as expressed in the recitals hereto; provided, however, that I ;; nothing herein shall require either to appropriate any funds to the other for I. , se;-vices under this agreement. Funds for the administration of the program '� shall be derived by each party from the application fee paid by MCC applica- tions administered by the respective jurisdiction. These fees shall be �co�lected and retained by the jurisdiction in which the property upon whose �I purchase the MCC is issued is located. � - 2 - � I i ; F I � . , � . � , • ' � 7. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time. 8. Nothing contained herein shall be interpreted to impose a relationship of partners or joint ventures between the City and the County. � 9. The County agrees to indemnify, defend and hold the City, its � I,� officers, attorneys, employees and agents harmless against any and all claims, i ;j damages or causes of action arising from any act or omission on the part of ` IIMi� the County, its officers, attorneys, employees and agents. � � i �� 10. The City agrees to indemnify, defend and hold the County, its I officers, attorneys, employees and agents harmless against any and all claims, i � � damages or causes of action arising from any act or omission on the part of � �i the City, its officers, attorneys, employees and agents. � N' , ; ;! � IN WITNESS WHEREOF, the parties hereto have executed this ; ��! Cooperative Agreement to be executed and attested by their proper officers ' � { 4i� thereunto duly authorized, and their official seals to be hereto affixed on i �;f the day and year above written. ; � � COUNTY OF SHASTA � I � ,� By I. � , Chairperson � ' � of the Board of Supervisors ; I � ATTEST: � � , Clerk Board of Supervisors i . APPROVED AS TO FORM: 0 � � , County Counsel � � CITY OF REDDING . ' C By f K. MAURICE JOHANNESSEN, Mayor � � ATTEST: � i+ � �1 ETHEL A. NICHOLS, City Clerk � � � i APPROVED AS TO FORM: I � RANDAL A. HAYS, City Attorney I - 3 - � � :