RES-9057 Continued Participation Agreement in Mortgage Credit Certificate ProgramRESOLUTION NO. 9057
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE APPROVING THE CITY'S CONTINUED
PARTICIPATION WITH THE COUNTY OF ORANGE IN A
MORTGAGE CREDIT CERTIFICATE PROGRAM;
AUTHORIZING AN APPLICATION BY THE COUNTY ON
BEHALF OF THE CITY OF ORANGE AND/OR THE
ORANGE REDEVELOPMENT AGENCY TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE
FOR AN ALLOCATION OF AUTHORITY TO ISSUE
MORTGAGE CREDIT CERTIFICATES FOR CALENDAR
YEAR 1999 AND THE TRANSFER OF SUCH ALLOCATION
TO THE COUNTY OF ORANGE; AND AUTHORIZING
AND DIRECTING THE ORANGE REDEVELOPMENT
AGENCY TO ADMINISTER THE CITY'S
RESPONSIBILITIES UNDER THE PROGRAM.
WHEREAS, the City Council of the City of Orange adopted Resolution No. 8722 on
December 10, 1996, determining that it was in the best interest of the City of Orange (the "City")
to participate in the Mortgage Credit Certificate Program ("Program"), through the Orange
Redevelopment Agency ("Agency"), and consenting to the operation of the Program by the
County of Orange ("County") within the boundaries of the City pursuant to the provisions of Part
5 of Division 31 of the Health and Safety Code of the State of California (the "Act") and the
Internal Revenue Code of 1986 (thenCode"); and
WHEREAS, the Agency adopted Resolution No. ORA-0327 on December 10,
1996,approving the Agency's participation in the Program during calendar year 1997 for the benefit
of first-time home buyers to be administered by the County of Orange (the "
County"); and WHEREAS, the City entered into a Cooperative Agreement with the
County on December 18, 1996, ("Cooperative Agreement") to permit the operation by the County
of the Program within the boundaries of the
City; and WHEREAS, by the adoption of Resolutions No. 8853 and ORA-0338
on December 9,1997, the City Council of the City of Orange and the Board of Directors
of the Agency,respectively, approved the City and the Agency's continued participation in
the Program during calendar
year 1998; and WHEREAS, the Program has been operated both within and
outside the redevelopment project areas of the Agency, but within the boundaries of
the City; and WHEREAS, the Agency previously found and determined that the project
areas of the Agency will be benefited by the operation of the Program outside such project
areas but within the boundaries of
WHEREAS, the City Council of the City of Orange desires to continue the City's
participation in the Program for calendar year 1999 and has requested the Agency to administer
the Pro gram on behalf of the City and, to that end, desires to delegate to the Agency the City's
authority under the Cooperative Agreement; and
WHEREAS, the City Council of the City of Orange desires that the County file an
application with the California Debt Limit Allocation Committee (nCDLAcn) on behalf of the
City and/or the Agency for an allocation of authority to issue mortgage credit certificates for
calendar year 1999 which allocation, when and if received, the City and/or the Agency intends to
transfer to the County; and
WHEREAS, the City has requested the assistance 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
City's proportionate share of administrative costs applicable to the allocation by CDLAC to the
County of authority to issue mortgage credit certificates; and
WHEREAS, the Agency has concurrently herewith found and determined that the use of
a portion of the funds from its Housing Fund for the Program for calendar year 1999 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 welfarl: of its residents, and in accord with the public purposes and provisions of
applicable federal, state and local laws and requirements;
and WHEREAS, the City Council desires to reaffirm the City's delegation of authority
under the Cooperative Agreement to the Agency for calendar year 1999 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 authority to issue mortgage credit certificates for calendar year
1999.NOW, THEREFORE, the City Council of the City of Orange resolves as
follows:Section 1. Each of the foregoing recitals is true and
correct.Section 2. The City hereby approves the filing of 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 1999, the transfer of such allocation, when and if received, to the County
and the op,eration of the Program by the Agency, including the payment to the County of the
City and/or Agency's proportionate share (based upon the number of participants in the Program)
of administrative costs applicable to the allocation received from CDLAC, which share is
estimated to not ,exceed $15,
000.Section 3. The City hereby finds and determines that the operation of the Program
both within and outside the established redevelopment project areas, but within the boundaries of
the City, will be of benefit to such established redevelopment project
areas.Reso No. 9057
Section 4. The officers and employees of the City 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 the
administration of the Program by the Agency, 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.
Section 5. The City hereby delegates to the Agency the City's responsibility under the
Cooperative Agreement to administer the City's duties and responsibilities under and pursuant to
the Cooperative Agreement and to participate in the Program on behalf of the City for the
purpose of increasing the affordable housing supply in the County and in the City.
Section 6. The City Manager, or his designated representative, is authorized, on behalf
of the City, to take such steps and execute 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 City and/or the Agency for application to the issuance of mortgage credit
certificates by the County. The City Manager, or his designated representative, will assure that
the principal amount of mortgage credit certificate authority will not be exceeded by requiring
the County to certify that the amount of mortgage credit certificates issued by the County will
not exceed the maximum allowable amount.
Section 7. The City Council 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 City Manager, or his designated representative, is
authorized and directed to take such steps and execute such documents on behalf of the City as
are necessary to effect the transfer of such allocation to the County solely for application to the
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.
Section 8. The officers and employees of the City 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
a.llocation authorized to be requested are ratified and approved.
ADOPTED this ...12...th day of 1999.
ATTEST:
3 Reso No. 9057
I hereby certify that the foregoing Resolution was duly and regularly adopted by
the Cily Council of the City of Orange at a regular meeting thereof held on the --.!Lthday of ;
January , 1999, by the following vote:AYES:
NOES:
ABSENT:
ABSTAIN:
TJR:
dg Reso
No. 9057 COUNCIL
MEMBERS:COUNCIL
MEMBERS:COUNCIL
MEMBERS:COUNCIL
MEMBERS:4
NONE
MURPHY,
SLATER, COONTZ, SPURGEON,ALVAREZ
NONE
NONE
A~~
Cassandra
J. C~cart, City Clerk