Loading...
HomeMy WebLinkAbout0560.091• ".'~, -T . ~ ... } - December 12, ] 9!H HONORABLE CITY COUNCIL Polo Alto, C,llforni. S.o.HTA CLARA COUNTY MORTGAGE REVENUE BOND PROGAAII: AOOPTION OF A COOPERATIVE AGREEMENT FOR PARTICIPATION IN THE COUNTY'S MORTGAGE CREDIT CERTIFICATE PROGRAM Members of the touncil: Report in Brjef The attached resolutlof. authoriZEs the City to enter into a Cooperative AgreemEnt with Santa Clara County to participate in the Mortgage Credit Certificate Program fer first-time home buyers. Background 8 The Mortgage Credit Certificate {MCf.) Program is a f!deral income tax credit which allows an eligible purchaser to take 20 percent of the annual mortgage interest payments as dollar-for-dollar tax credit against federal personal income tax. The tax credit is in addition to the ysual deduction of mortgage interest from gross incrnme wnich the homeowner can utilize for the remaining 80 percent of tne mortgage interest amount. The City of Palo Alto has particfpated i~ the MCC program since its inception. The program~ whlch provides financial assistance to Qualified first-time ho~ buyers, is adininistered by Santa Clara County through a cooperati\le agreement with the City (copy attached). For calendar 1992, City staff is recommending that the City be included in the ~Dunty application for a mortgage revenue bond allocation of $800,000, which converts to mortgage credit certificates to be issued in the amount of S200,OOO. Eighty per cent of the mortgage credit certificates .ill be targeted for residenthl units priced below 5220,000 for new construction and below $187.000 for existing homes. The maximum allowed under the program is 52S0,OOO for new construction and S2?O,OOO for existing homes. In Palo Alto, the primary beneficiaries of the MCC program are purchasers of the C;t1- sponsor~d Below Market Rate units. CMR;560;91 ··L. -" ------~-,,----~-• < -" " """4'" Ot s" o financial CQmmiJment The C.alifornia Oebt limit Allocation COl'Mlitt.ee, which administers t~e bar.d program for the stat!, reqYires that an am~unt equal to ~ne percent of the aortgage bond allocation t$8,000) be set aside as a good faith guarantee to ensur.e that He City will imp1ement t~,e HCC program. The performance deposit stays with the City ilnd is only ~ayable to the (olJJTlittee if no MCC ;s issued in Sanh Clara, County during the year. This usualiy occurs on the first day that new ~CCs are available, sfnce the City of Stn Jose has a waiting list for th.e program. Funds that have been set aside for other purposes, such ilS the Residential ~ousing !n·lieu Reserve r~nd, may be listed is the deposit. The attached deposit certification form will be tomp1eted by the City Manager~ In tne unlikely event disbursement of these funds is required~ Coun(il wtll be irifo!1Tled' • ~ecol1'll'le~dation Staff recommends that the City Council adopt th~ attached Resolution and Cooperative Agreement and aut~Qrize the City Manager to execute the Deposit Certification. Respectfu11y submitted, t' C-_;i,:.~; I~/ ,'u·~ C' .¥"~~l.. ...... .-t_. / AIlES E. GI Lll LAND Manager Planning Projects t:M(/C~·;f.:/ jckc4~ KENNETH R. SCHREIBER Director of Planning and CO!TJTIunity Envircnment Attachments: Cooperat;~e Agreement between the Cour.ty of Santa Clara and City of Palo Alto Resolution Oeposit Certification cc; Syl~ia Seman, Palo Alto Housing Corporation Tracy Cunningham, Santa Clara County ExecutiYe Offices Naphtali kf1{))(, Housing fiend Coordinator CMR:56C:91 p, \eMll. \mo;;-;.2 12/12/91 Page 2 • , i I 1 , [ ~ I COOPERATI.VE AaREEKEBT BETWEEN Till! COtnl'l''l OP SANTA CLAl<A AND TIlE CITY or PALO ALTO THIS COOPERATIVE AGREEMENT {the "Cooperative Agreement"" J is .illade and entel:'ed into this day of , 1992, by and bet~ .. een the COUNTY OF SANTA ClARA, a legal subdivision and body corporate and politic of the state of California (the ~County~)# and the City of Palo Alto, a mUfilcipal corporation of the state of california {the ·City~) • • I T HIS BET H: WHEREAS, the Tax: Reform Act of 1984 established the Mortgage Credit Certificate Program (hereinafter referred to as nJt(CC Program~) as a !!leans of assisting qualified individuals .. ith the acquisition of new and existing single family housing: and WHEREAS, the County and the City have heretofore determined to enqage in an MCC Program pursuant to Chapters 1399, statues of 1985 Section 30197, at seq., of the H~alth and safety Code of the State of california (the -Act") in order to assist individual home purchasers in the City to afford both new and existing homes within the statutory limits as provided for in said Act: and WHEREAS, in furth~rance of 'the MCC Program, the City Council has authorized the County to apply to the State of California Debt Limit Allocation Com..."ltttee (CDLAC) in the name; of the City of Palo Alto for a mortgage bond allocation in the amount of $800.000 to be traded for authority to issue Mortgage Credit certificates in the face amount of $200,000 (based upon the 4:1 trade-in value of bond allocation) i and WHEREAS, it is expected that the city's application for the MCC Program will be subsequently apprcved by the CDIAC in February 1992; and WHEREAS, the county-Housing Bond Coordinator is adminis­ tering a County-wide MCC Program; and WHEREAS, the city and the County wish to cooperate ~ith one another pursuant to the Act in the exercise of their powers under the Act for the purposes of the MCC program; and WHEREAS, tbe county will be operating an MCC Program in the County, and the City desires that the program be applicable to otherwise eligible real property in the City; NOW, THEREFORE, in co~sideratian of the covenants hereinafter provided, the parties hereto agree as follo~s! 1 - SECTION 1. The ~ords and phrases of this Cooperative Agreement shall, for all purposes here-c.! unless otherwise defined herein, have the rnea~inqs assigned to such ~ords and phrases in the Act. ~ION 2. The City repr,=,"sents and warrants to the County that: (i) the City has heretofore adopted a general plan ~or the City in conformance ~ith the provisior.s of the Planning and Zoning Law of the State of C~lifornia (Government Code Sections 65000 et seq.) I (i i) said general plan includes a land use element 2l.nd a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land ·..;,se element and housing element. SECTION J. The County shall continue to staff a pr09ra~ for the effective administration of the MCC Program within the geographical boundaries of the county. The County shall cO!ltinue its cooperation "'i th local real estate and lending institutions in order to maintain their participation in secu.ring arplications from eligible applicants for review and approval by Co· ty representatives on behalf of the ~ounty and the city. SECTION 4_~ If, during the term ot tnis agreement, the City determines that it cannot utilize all of the MCC allocation provided by the CDLAC, the City will have the option to assign a portion of the alloca~ion to the County for redistribution among th~ County and other participating cities. SECTION 5_~ This agreement =nay be terminated by either party upon 90 days ""ritten notice delivered to the other party. The term of this agreement shall extend until such terminativn by written notice. SECTIO~ 6. The city agrees to undertake such further proce~dinqs or actions as may be necessary to carry out the terms and intent of this agreement as e~~ressed in the recitals hereto; prcvided, however, that nothing herein shall require the City to appropriate any funds to the county for services under this agreement. Funds for the administration of the program shall be derived by the county from the application fee paid by MCC appl ications adlninistered by the county. These fees shall be collected and retained by the County in all cases administered by the County including those where the City's MCC allocation is d€'Dited. SECTION 7. Nothing il1 this Cooperative shall prevent the County from entering into one or more with other municipal corporations wi thin the county ~ necessary and advisable to do so by the COUhty. Agreement agreements if dee-med SECTION 8. Tbis Cooperative A~reement may be amended by one or more supplenental agreements executed by the County and the City at any time. 2 \lUlli bel<. OOJ01~J ., \ I ~ , ~ ,. ~ ~ ~. ~ e" • .. SECTION 9, Nothing cO!ltained herein shall be lJit,prpreted to im!,:lose a relationship of partners or joint ventures between the. ci t.y a:1d the County. g~ION 10. 'I'he County agrees to indeJ':mify, defend and hold the City. its officers, attorneys, employees and agents harmless against any and all claims¥ da~ages O~ causes of action arising from any act or omission on the part of the County. its officers, attorneys, employees ~nd agents. !~ WITNESS WHEREOF, the parties hereto have caused this cooperative Agreement to bs executed and attested by their proper o££icers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day and year first above vritten. ATTEST: ClerK, Board of Supervisors APPROVED 1'..CJ. TO FORM AND LEGALITY: county counsel ATTEST: City Clerk APPROVED AS TO FORM: Senior Asst. city Attorney 3 !l;l211 bOC OOJOI.~3 COUNTY OF SANTA CLARA Chairperson of the Board or-­ supervisors CITY OF PALO ALTO --.--------Mayor .APPROVED: AssTstant City Manager Director of Planning and Community Environment • lI.ESOWTION NO. RESOWTION OF THE COllNCIL OF THE CITY OF PALO ALTO AP.PRO~l!NG THE CIT~'S PARTICIPATION IN THE SANTA CLARA COVNTY MORTGAGE CP.EDIT CERTIFIC~TE PROGRAM WHEREAS, Santa clara county ("Count1~·) has initiated e. program to provide financial assistance to qualified first-time homebuyers through the issuance of Mortqage Credit Certificates; and WHEREAS, in order for the Mortgage Credit Certificates to be used for the purchase of homes in Palo Alto, Palo Alto must enter into a Cooperative Agreement ... i th the county stating th4't the Mortgage Credit Certificate program complies with the land use and housing elements of Palo Alto's comprehe~sive Plan~ and WHEREAS I Palo Alto 'Would like to proll'lc,te affordable home ownership opportunities within the County, particularly for households at the lower end of the purchasing spectrum; NOW, THEREFORE, the Council of the city of Palo Alto does hereby RESOLVE as follows: The City Council approves the attached Cooperative Aqreel:!lent between the County of Santa Clara and the City of Palo Alto regarding the ~ortqage Credit Certjficate Program and authorizes the Mayor to execute the agreement on its behalf. SEct~ON 2~ The city council further authorizes the City Manager, as Chief Administrative Officer, to e~ecute the Deposit Certification Form on behalf of the city of Palo Alto. 91!!11 b&: 0030[52 , '. ' ... ' , I. ' '",' .. ' o o SECTION 3. The Council finds that entering agreement is not a project for the purposes of the Environmental Quality Act~ into this Califcrnia INTRODUCED AND PASSED: AYES: NOES: ABSEtIT: ABSTENTIONS: ATTEST: City clerk APPROVED AS TO FORM: Senior Asst. City Attorney 911211 DOC CXU0152 APPROVED: Mayor ---_ ..... _------ City Manager Director of Planning and Community Environment " • .' j , -~------~--.. ... --":""'-,---,,- DEPOSIT eER T1F1CATION FORM C3:ifornia Debt Limit Alicc3.tioD Ccmmiqec: 91 S Capilol Mall, Room 2&0 P,O. Box 9428C9 Slcrarnento, CA 94809·0001 \9\6) )24-0)lO CERTIFICATION OF THE CHIEF ADMINISTRATIVE OFFICER OF THE (Applic:allt) REGARDIl\'G AN APPLICATION fOR PRIVATE ACTl'ilTY BOND ALLOCATION lrt connection with the following privale a.::tivity beDd allocation application: APPliCANT: ISSUER: COUNTY OF SANTA CLARA AMOUNT: ! PROJECT NAME/PROGRAM TYPE: MORTGAGE CREDIT CERTIFICATES the undersigned o[ficcr of Ihe hereby c.:-rtific:s as rol:ows.: (Applicant) 1. 1~ ,-,,-:-.:-,-===~ ________ (Name), am the Chid Administrative Officer of th= ~C"-i"ty,-,,o .. r_______ _ ________ (Applicanl). 2-. The (Applicant) has. coUceted has placed on deposit in ao aCCQunt in a financial jnstilutio~, s,---c-_~_~ __ _ which equals one percent or the amount of ptiva.e a.ctivity bond allocation being requC'sted, ), The: C!eposit will be: held until n::ceipt of a written Dotiflcat!on from the California Debt Limit Allocation Committee that the deposit is authorized to be relo:a.$ed or forr-eited. jn whole or in part, pursuant to the proced:ures ::.f ,he Committe.: . .4. To the extent that any portion o( the deposit is fotreited, the applicaot agrees to sc.nd the required amount in I check ma~e payable to the "California Debt Limit Allocation Committee,-Socb check shall be mailed to th~ Committee :l.! the address .coted above: immed.iately upon receipt of the wriuen notificar:ion irom the Committee. S. The: undersigned has read the procedures or the California Debt Limit Allocation Committee and: Ullder~tar.ds that if any ponion or an approved pri .... a!e acti¥ity bond aUccation is net used fOT the purpose rOt which. it ",,'as !,ranted, then the corresponding portien oC the pecrtormance depo~it must be rorfeited to the Committee, Dale Sign:lture ----....... -.. ""."'.~.---., ..... ~' -, ----,-'.