RES-ORA-0352 Continued Participation Agreement in Mortgage Credit Certificate ProgramRESOLUTION NO. ORA-
0352 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 Qrange (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 Qrange 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 ("CD LAC") 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
ofthe 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
the operation of the Program both within and outside the redevelopment project areas of theAgency, but within the boundaries of the City; and
VHEREAS, by the adoption of Resolutions No. 8853 and ORA-0338 on December9,1997, the City Council of the City of Orange and the Board of Directors of theAgency,respectively, approved the City and the Agency's continued participation in the Programduringcalendaryear1998;
and VVHEREAS, the Agency previously found and determined that it is in the best interestoftheAgencytoparticipateintheProgramandtoconsenttotheoperationoftheProgrambytheCountybothwithinandoutsidetheboundariesoftheprojectareasoftheAgency, but withintheboundaril~s of the City and desires to once again participate in the Program during calendaryear1999;
and VHEREAS, the City Council of the City of Qrange has reaffirmed its delegationofauthorityundertheCooperativeAgreementtotheAgencyforcalendaryear1999inconsiderationfortheAgency'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 allocationtotheCountyofOrangeofauthoritytoissuemortgagecreditcertificatesforcalendaryear1999;
and VHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the Code"), limits the amount of mortgage credit certificates that may be issued in any
calendar year by entities within a state and authorizes the governor or the legislature of such statetoprovidethemethodofallocationwithinsuchstate;
and VHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of theStateofCalifornia (the "Government Code") governs the allocation of the State ceiling (as that termisdefinedintheCode) among governmental units in the State of California (the "State") havingtheauthoritytoissuemortgagecreditcertificates;
and WHEREAS, Section 8869.85 of the Government Code requires that a local agencyfileanapplicationforaportionofthestateceilingwithoruponthedirectionofCDLACpriortotheissuanceofmortgagecreditcertificates;
and WHEREAS, the Agency desires that the County file an application with CDLAConbehalfoftheCityand/or the Agency for an allocation of authority to issue mortgagecreditcertificatesforcalendaryear1999electstotransfertotheCountypursuanttoSection8869.85(d)of the Government Code the total amount, if any, of such authority allocated to the City and/or the Agency, as determined appropriate by the County;
and WHEREAS, the City has requested the assistance of the Agency to make availabletotheCityarLamountnottoexceed $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 CD LAC totheCountyofauthoritytoissuemortgagecreditcertificates;
and ORA-
WHEREAS, the Agency desires to find and determine that the use of a portion of the
funds from the 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 welfare of
its resid(:nts, 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 and accepts the delegation by the City of
the City's responsibility under the Cooperative Agreement 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 paJ1icipants 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 execute such documents as are
determined necessary and appropriate by the County and/or CD LAC for the submission of an application
to CDl,AC on behalf ofthe 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 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 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
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.
3 ORA-
0352
Section 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.
Section 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 cOlmection with the application for the
allocation authorized to be requested are ratified and approved.
ADOPTED this ~day of January 1999.
ORANGE REDEVELOPMENT AGENCY,
a public body, corporate and politic7
ATTEST:
4~~
CassandraJ. Cat art, Agency Clerk I
hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange
R1edevelopment Agency at a regular meeting thereof held on the 12th day of Januarv ,
1999, by the following vote:AYES:
MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ NOES:
NONE ABSENT:
NONE ABSTAIN:
NONE du~./d(]T~Cassandra
J. Cat art,Agency Clerk TJR:
dg ORA-
0352 4