HomeMy WebLinkAboutRESO7549RESOLUTION NO. 7549
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
ESTABLISHING A REBATE PROGRAM IN CONNECTION WITH
THE REAL PROPERTY TRANSFER TAX OF THE CITY OF PALO
ALTO, FOR QUALIFIED FIRST TIME HOME BUYERS OF LOW
AND MODERATE INCOME
WHEREAS, pursuant to Chapter 2.34 of the Palo Alto
Municipal Code, a Real Property Transfer Tax is imposed on the
conveyance of real property within the City of Palo Alto, as more
particularly described in Chapter 2.34; and
WHEREAS, the City Council desires to establish a rebate
program under which qualified first time home buyers of low and
moderate income could obtain a rebate of a' portion of the Real
Property Transfer Tax paid in purchasing their first home;
NOW, THEREFORE, the Council of the City of Palo Alto does
hereby RESOLVE as follows:
SECTION 1. The Council hereby establishes a rebate program
in connection with the Real Property Transfer Tax of the City of
Palo Alto, for qualified first time home buyers of low and moderate
income.
SECTION 2. The Council hereby approves the "Real. Property
Transfer Tax Rebate Program for Qualified First Time Home Buyers,"
attached to this resolution as Exhibit "A" and incorporated herein
by reference, and authorizes the Deputy City Manager,
Administrative Services {"Deputy City Manager"), who performs the
function of the Director of Finance for purposes of Chapter 2.34 of
the Palo Alto Municipal Code, or the designee of the Deputy City
Manager, to administer the program on behalf of the City of Palo
Alto.
SECTION 3. The program established by this resolution
shall include the requirement that an administrative fee, as set
forth in the Municipal Fee Schedule, be payable by applicants for
rebates under the program.
SECTION 4. The Council finds that this
under the California Environmental Quality Act..,,
is not a project
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$BCTION 5. The program established by this resolution
shall apply to qualifying transactions for which Real Property
Transfer Taxes are paid on and after Novmber 1, .1995.
INTRODUCED AND PASSED: September 26, 1995
AYES: ANDERSEN. FAZZINO, HUBER, KNISS, MCCOWN, ROSENBAUM, SCHNEIDER, SIMITIAN,
WHEELER
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
• .
•
lerk
APPROVED AS TO FORM:
City
Senior Asst. City Attorney
) •cri
Dep ty City Manager,
Administrative Services
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EXHIBIT "A"
REAL PROPERTY TRANSFER TAX REBATE PROGRAM
FOR QUAI-IFIED FIRST TIME HOME BUYERS
This Rebate Program was approved by the City Council of the City of Palo Alto
pursuant to Resolution No. , adopted September , 1995. It shall apply to qualifying
transactions for which a Real Property Transfer Tax was paid by the applicant in accordance with
Chapter 2.34 of the Palo Alto Municipal Code on and after the date of
A. Eligibility, General.
Only first time low and moderate income home buyers who qualify under this program are
eligible to apply for the rebate offered under this program.
B. Tax Obligation.
1. All applicants who may be entitled to a rebate under this program shall pay the full
amount of the Real Property Transfer Tax at the rate established in Chapter 2.34 of the Palo Alto
Municipal Code prior to making an application for a rebate under this program.
2. Full payment of the tax shall be made to the County Recorder of the County of Santa
Clara at the time the deed, instrument or writing effecting a transfer subject to the tax is delivered
for recording.
3. Full payment of the tax shall be made even if the transaction would be eligible for
a rebate under the terms and conditions of this Rebate Program.
C. Time Limits.
In order to qualify for the rebate, a complete application for the rebate must be filed in
accordance with Section D of this program within ninety (90) days from the date on which the Real
Property Transfer Tax was paid in full.
D. Procedure for Filing Application for Rebate.
1. Application for a rebate shall be made in a form developed by the Deputy City
Manager, and shall, at a minimum contain:
The property address and parcel number.
The name, address and telephone number of the applicant(s).
The name, address and telephone number of any title company involved in
the transaction and the name of a contact person at that title company.
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(d) The total amount of Real Property Transfer Tax paid on the transaction
pursuant to Chapter 2.34 of the Palo Alto Municipal Code, and the amount
of tax paid by the applicant.
(e) The date the tax was paid.
(f) Such proof as the Deputy City Manager may require that the tax was paid
prior to the application, and such verification as the Deputy City Manager
may require as to the amount of the total tax which was paid by the applicant.
(g) Such proof as the Deputy City Manager may require that the applicant meets
the eligibility criteria set forth in Section E. Proof of income eligibility may
include income tax returns and/ or pay stubs. Proof of purchase price cap
eligibility may include notarized escrow closing documents, deeds, bank
statements and/or County records. Proof of first time home buyer status may
include loan documents, tax returns, and/or notarized declarations.
(h) Such other information as the Deputy City Manager deems necessary.
2. All applications for a rebate shall be accompanied by a processing fee in the amount
set forth in the Municipal Fee Schedule. An application shall not be deemed complete until the fee
is paid.
3. Applications for a rebate shall be filed with the Deputy City Manager or such other
person as indicated on the application form.
E. Criteria for Determining Eligibility for Rebate.
1. Owner Occupied Home.
(a) To qualify for the rebate, the applicant(s) must live in the home for which the
rebate is sought.
(b)
For the purposes of this rebate, "home" is defined as a principal residence,
and shall include single family dwellings, condominiums and townhouses.
It shall not include commercial or unimproved real property.
(c) For purposes of this rebate, "household" shall include and be defined as all
persons who dwell in the home. At a minimum, the actual owner(s) of
record must live in the home.
2. First Time Home Buyer.
(a) To qualify for the rebate the applicant(s) must be a first time home buyer(s).
(b) For the purposes of this rebate, to qualify as a first time home buyer, no
member of the applicant's household shall have had any ownership interest
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in a principal residence within the three years immediately preceding the date
of purchase of the home for which the rebate is being sought.
3. Low or Moderate Income.
(a) The applicant household must qualify as being of "low or moderate income."
For purposes of this rebate, "low or moderate income" is defined as an
annual household income from all sources of no more than 150 percent of the
median household income for the San Jose, California Primary Metropolitan
Statistical Area as calculated by the United States Department of Housing
and Urban Development ("HUD").
(b) For the purposes of this rebate, "income" is defined and includes all sources
of income for all members of the household who are 18 years of age or older.
Income includes, but is not limited to: wages, tips, royalties, commissions,
interest, capital gains, rents, bonuses, investment income, and income from
basiness.
4. Purchase Price Cap.
In order to qualify for this rebate, the purchase price of the home for which the rebate
is being sought shall not have exceeded the following percentages of "low or moderate income," as
defined in Section E 3 of this program:
Household Size Maximum Qualifying Purchase Price (shown as
(number of residents) a percentage of " low/moderate income")
1 386 percent
2 383 percent
3 381 percent
4 380 percent
Amount of Rebate.
1. The amount of the rebate shall be no more than the amount of the Real Property
Transfer Tax paid by the qualified buyer, up to a maximum of fifty percent (50%) of the total Real
Pr3perty Transfer Tax assessed on the purchase of the buyer's Palo Alto home, less that portion of
the tax that reverts to the County of Santa Clara pursuant to Part 6.7 (the "Documentary Transfer
Tax Act") of Division 2 of the Revenue and Taxation Code.
2. No rebate shall be made for any portion ofthe Real Property Transfer Tax that is paid
by the seller of a home to a qualified buyer under this program.
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G. Administration.
The Deputy City Manager is authorized to designate other persons or organizations to
administer this rebate program and to make the determinations of eligibility and timeliness described
in this document.
H. Petition for Reconsideration.
1. Any applicant for a rebate against whom a determination is made may petition for
a reconsideration of the determination by filing with the Deputy City Manager a written notice
requesting reconsideration within ten (10) days after service of the determination upon the
applicant. If no such notice is filed within the ten (10) day period, the determination shall be final
at the expiration of such period.
2. If a notice requesting reconsideration is filed within the ten (10) day period, the
Deputy City Manager shall reconsider the determination and, if the applicant has so requested in his
or her written notice, shall grant the applicant an oral hearing, and shall give the applicant at least
ten days notice of the time and place of the hearing. The Deputy City Manager may designate one
or more deputies for the purpose of conducting the hearings and may continue a hearing from time
to time as may be necessary, provided that any person hearing a petition for reconsideration shall
not be the same person who made the determination for which reconsideration is being requested.
3. The decision of the Deputy City Manager upon a petition for reconsideration is final.
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