RES-ORA-0338 Approving Continued Participation in Mortgage Credit Certificate ProgramRESOLUTION NO. ORA-
0338 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,WHEREAS, the Orange Redevelopment Agency, a public body, cOlvorate
and politic the "Agency"), has been duly created, established and authorized to transact
business and exercise its powers under and pursuant to the Comnmnity 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
pmiicipation in the Program as outlined in that certain Cooperati ve Agreement, dated as of
December 18, 1996,between the City and the County ("Cooperative
Agreer;nent"); and WHEREAS, the City Council of the City of Orange has reaffirmed
its 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 Orange of authority to issue mortgage credit
year 1998 and to make any deposit required by CDLAC on behalf of the City for said calendar
year; and
WHEREAS, the Agency previously 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 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 Agency previously found and detennined 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 yea.r 1998; 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, 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 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 of the State ceiling (as that tellli
is defined in the Code) among governmental units in the State of California (the "State") having
the authority to issue mortgage credit certificates; and
WHEREAS, 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
WHEREAS, 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 1998 and elects to transfer 1:0 the County pursuant to Section
8869.85(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
2 Reso. No. ORA-
WHEREAS, one percent (1%) 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 of the Government Code and the Regulations of CD LAC.
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 desires to find and determine that the use of a portion of the
funds from the 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 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
pat1icipate 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 participants 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 CDLAC for the submission of an application
to CDLAC on behalf of the Agency and/or the City for an allocation in the amount of $5,000,
000 for application to the issuance of 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.3 Reso. No.
Section 5. An amount not to exceed one percent (1 %) of the requested allocation is
hereby authorized to be placed into an account, and the Executive Director, or his designated
representative, is authorized to certify to CDLAC that such amount is available.
Section 6. 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.
Section 7. 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 8. 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 9th day of December 1997.
ORANGE REDEVELOPMENT AGENCY,
a public body, corporate and politic
1
I
ATTEST:
d4'
Clerk, Orange
4 Reso. No. ORA-
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Orange Redevelopment Agency at a regular meeting thereof held on the 9th day of
December , 1997.
AYES: DIRECTORS: Murphy I Slater I Coontz I Spurgeon I Al varez
NOES: DIRECTORS: None
ABSENT: DIRECTORS: None
ABSTAIN: DIRECTORS: None
1~
Clerk, Orange R
5 Reso. No. ORA-