RES-8853 Continued Participation with County of Orange in Mortgage Credit Certificate ProgramRESOLUTION NO. 8853
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 1998 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 lntemal Revenue Code of 1986 (the "Code"); 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 Program was operated both within and outside
the redevelopment project areas ofthe 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 the
City; 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, the City Council of the City of Orange desires that the County
file an application with the California Debt Limit Allocation Committee ("CD LAC") on behalf
of the City and/or the Agency for an allocation of authority to issue mortgage credit
certificates for calendar year 1998, which allocation, when and if received, the City and/or the
Agency intends to transfer to the
WHEREAS, one percent (I %) of the amount of the allocation to be requested on behalf
of the City and/or the Agency is to be held in an account established by the Agency pursuant to
Section 8869.84 ofthe Califomia Government Code and the regulations of CD LAC; and
WHEREAS, the City has requested the assistance of the Agency to make available to
the City (a) 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, (b) an amount not to
exceed 1% of the requested allocation to be placed into an account required by CDLAC; 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 1998 that
may benefit qualified first-time homebuyers with the acquisition of homes located outside
the boundaries of the City's redevelopment' project areas is for the benefit of 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 pmposes 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 1998 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 1998 and to make any
deposit required by CDLAC on behalf of the City for said calendar
year;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 1998 in an amount not to exceed $5,000,000, the transfer of
such allocation, when and if received, to the County and the operation 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,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
of 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,Reso, No, 8853
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 an allocation in the amount of $5,000,000 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 allocation authorized to be requested are ratified and approved,
ADOPTED this 9th 1997,
or of the City of Orange
ATTEST:
1r
City Clerk oft
Reso, No, 8853 3
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
City C01fficil of the City of Orange at a regular meeting thereof held on the 9th day of
Dee. _,1997, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAJN:
Reso, No, 8853
COUNCIL MEMBERS: Murphy ,Slater ,Coontz, Spurgeon, Alvarez
COUNCIL MEMBERS: None
COUNCIL MEMBERS: None
COUNCIL MEMBERS: None
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City Clerk ofth lty of Orange
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