RES-ORA-0365 Mortage Credit Certifcate Program ApprovalRESOLUTION NO. ORA-
0365 A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY APPROVING THE AGENCY'S
CONTINUED PARTICIPATION IN A MORTGAGE CREDIT
CERTIFICATE PROGRAM IN COOPERATION WITH THE CITY OF
ORANGE AND THE COUNTY OF ORANGE; AND AUTHORIZING
AN APPLICATION BY THE COUNTY ON BEHALF OF THE
CITY AND THE AGENCY TO THE CALIFORNIA DEBT
LIMIT ALLOCATION COMMITTEE FOR AN ALLOCATION
OF AUTHORITY TO ISSUE MORTGAGE CREDIT
CERTIFICATES AND THE TRANSFER OF SUCH ALLOCATION TO
THE COUNTY OF
ORANGE.WHEREAS, there is a shortage in the County of Orange (the "County") and in the
City of Orange (the "City") of decent, safe and sanitary housing, particularly of housing affordable
to first-time home buyers, and a consequent need to encourage the availability of
homes affordable to such persons and otherwise to increase the housing supply in the City and in the
County for such
persons; and WHEREAS, the Board of Supervisors of the County has established a
mortgage credit certificate program (the "Program") pursuant to Part 5 of Division 31 of the Health
and Safety Code of the State of California (the "Act") for the purpose of issuing mortgage
credit certificates pursuant to the Act to provide funds for the
Program" and WHEREAS, the Orange Redevelopment Agency, a public body, corporate
and politic the "Agency"), has been duly created, established and authorized to transact
business and exercise its powers under and pursuant to the Community Redevelopment Law (Part
1 of Division 24 of the Health and Safety Code of the State of California) (the "
CRL"); and WHEREAS, the Board of Directors of the Agency adopted Resolution
No. ORA-0327 on December 10, 1996, approving the participation of the Agency in the
Program for calendar year 1997, and authorized the expenditure of Housing Funds to pay the City'
s proportionate share of administrative costs applicable to the County's application on behalf of the City
and/or the Agency to the California Debt Limit Allocation Committee ("CDLAC") for
an allocation of mortgage credit certificates and to make any deposit required by CDLAC on behalf of
the City in consideration for the Agency's agreement to administer the City's participation in
the Program as outlined in that certain Cooperative Agreement, dated as of December 18,
1996, between the City and the County ("
Cooperative Agreement"); and WHEREAS, the City entered into the Cooperative Agreement with the
County to permit the operation by the County of the Program within the boundaries of the City
and delegated to the Agency the City's responsibility to administer the Program on behalf of
the
City; and
WHEREAS, the City Council adopted Resolution No. 8722 on December 10, 1996, and
found and determined that the redevelopment project areas of the Agency will be benefited by
the operation of the Program both within and outside the redevelopment project areas of the
Agency, but within the boundaries of the City; and
WHEREAS, the City Council of the City of Orange and the Board of Directors of the
Agency have annually ever since calendar year 1997 approved the City and the Agency's
continued participation in the Program; and
WHEREAS, the Agency previously found and dete:rmined that it is in the best interest of
the Agency to participate in the Program and to consent to the operation of the Program by the
County both within and outside the boundaries of the project areas of the Agency, but within the
boundaries of the City and desires to once again participate in the Program during calendar year
2000; and
WHEREAS, the City Council of the City of Onmge has reaffirmed its delegation of
authority under the Cooperative Agreement to the Agency for calendar year 2000 in
consideration for the Agency's agreement to administer the Program on behalf of the City and to
pay the City's proportionate share of administrative costs applicable to the CDLAC allocation to
the County of Orange of authority to issue mortgage credit certificates for calendar year 2000;
and
WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the
Code"), limits the amount of mortgage credit certiiicatt:s that may be issued in any calendar
year by entities within a state and authorizes the governor or the legislature of such state to
provide the method of allocation within such state; and
WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State
of California (the "Government Code") governs the allocation ofthe State ceiling (as that term is
defined in the Code) among governmental units in the: State of California (the "State") having the
authority to issue mortgage credit certificates; and
HEREAS, Section 8869.85 of the Government Code requires that a local agency file
an application for a portion of the state ceiling with or upon the direction of CDLAC prior to the
issuance of mortgage credit certificates; and
VHEREAS, the Agency desires that the County file an application with CDLAC on
behalf of the City and/or the Agency for an allocation of authority to issue mortgage credit
certificates for calendar year 2000 and elects to transfer to the County pursuant to Section
8869.85(d) of the Government Code the total amount, if any, of such authority allocated to the
City andior the Agency, as determined appropriate by the County; and
VHEREAS, the City has requested the assistanc1e of the Agency to make available to the
City an amount not to exceed $15,000 in Housing Funds to be used to pay the Agency and/or
Reso No. ORA-0365
2
City's proportionate share of administrative costs applicable to the allocation by CDLAC to the
County of authority to issue mortgage credit certifi.cate:s; and
WHEREAS,
the Agency desires to fmd and determine that the use of a portion of the funds
from the Housing Fund for the Program for calendar year 2000 may benefit qualified first-
time homebuyers with the acquisition of homes located outside the boundaries of the City's
redevelopment project areas and will, therefore, benefit the City's redevelopment project areas
and is in the vital and best interests of the City of Orange and the health, safety and welfare of its
residents, and in accord with the public purposes and provisions of applicable federal, state and
local laws and requirements;
NOW, THEREFORE, the Orange Redevelopment Agency does hereby resolve as
follows:
Section 1. Each of the foregoing recitals is tme and correct
Section 2. That the use of a portion of the funds from the Housing Fund outside of the
City"s redevelopment project areas in the amount and for the purposes described hereinabove
will be of benefit to the City's redevelopment project areas.
Section 3. The Agency hereby consents to a.nd accepts the delegation by the City of the
City's responsibility under the Cooperative Agn:ement and agrees to administer the City's duties
and responsibilities under and pursuant to the Cooperative Agreement and to participate in the
Program for the purpose of increasing the affordable housing supply in the County and in the
City and consents to the operation of the Program by the County with respect to all property
located within the boundaries of the City, including the payment to the County of the Agency's
proportionate share (based upon the number of pmiicipants in the Program) of administrative
costs applicable to the allocation received from CDLAC, which share is estimated not to exceed
15.,000.
Section
4. The Executive Director, or his designated representative, is authorized, on behalf
of the Agency, to take such steps and exe:cute such documents as are determined necessary and
appropriate by the County and/or CDLAC for the submission of an application to CDLAC on
behalf of the Agency and/or the City for an allocation of authority to issue mortgage credit certificates
by the County, The Executive Director, or his designated representative, will assure that
the principal amount of mortgage credit celtificate authority will not be exceeded by requiring
the County to certify that the amount of mortgage credit certificates issued by the COlmty
will not exceed the maximum allowable amount Section
5. The Agency hereby authorizes the transfer to the County of the total principal amount,
if any, of the authority to issue mortgage credit certificates allocated to the City and/or the
Agency by CDLAC. The Executive Director, or his designated representative, is authorized and
directed to take such steps and execute such documents on behalf of the Agency as are necessary
to effect the transfer of such allocation to the County solely for application to the 3
Reso No. ORA-0365
issuance of mortgage credit certificates, which are to be used to induce the origination of home
mortgage loans to qualifying persons who will reside within the City and the County.
Sedion 6. The Executive Director is authorized to cause the payment to the County of
the Agency's proportionate share of administrative costs of the Program referred to in Section 2
above.
Sedion 7. The officers and employees of the Agency are authorized and directed, jointly
and severally, to do any and all things necessary or advisable in order to effectuate the purposes
of this resolution or the issuance of the mortgage credit certificates by the County, and all actions
previously taken by such officers and employees in connection with the application for the
allocation authorized to be requested are ratified and approved.
ADOPTED this 28th day of March, 2000.
ATTEST:
It' //'.-----~
i
i /
I i ~k/(> ,,'>
t/ r/tA ." ~,-;A J toanne Coontz,
Chairman, Oran I i/
j A'--
C/
A':dC~;UrA' ~X Cassandra J.
Cathc , lerk, Orange Redevelopment Agency I :l1ereby
certify that the foregoing Resolution was duly and regularly adopted by the Orange Redevelopment
Agency at a regular meeting thereof held on the 28th day of March,2000, by
the following vote:AYES:NOES:
ABSENT:
ABSTAIN:
DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:
MURPHY,
SLATER,
COON'l~Z, SPURGEON, ALVAREZ NONE NONE
NONE
dAAAvr~~
i:(~
drA'~Cassandra 1.
Cathcart, ~k, Orange Redevelopment Agency Reso No.
ORA-0365 4