RES-8722 Approving Redevelopment Agency Mortgage Credit Certificate ProgramRESOLUTION NO. 8722
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE APPROVING THE ADOPTION OF A MORTGAGE
CREDIT CERTIFICATE PROGRAM BY THE ORANGE
REDEVELOPMENT AGENCY IN COOPERATION WITH THE
COUNTY OF ORANGE, AUTHORIZING AN APPLICATION BY
THE COUNTY ON BEHALF OF THE ORANGE
REDEVELOPMENT 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, the Orange Redevelopment Agency (the "Agency") agrees to
participate in a mortgage credit certificate program (the "Program") for the benefit of
first-time home buyers to be administered by the County of Orange (the "
County")pursuant to the provisions of Part 5 of ~ivision 31 of the Health and Safety Code of
the State of California (the "Act") and the Internal Revenue Code of1986 (the "Code");
and WHEREAS, the City of Orange (the "City") has determined that it is in the
best interest of the City to participate in the Program, through the Agency, and to consent
to the operation of the Program by the County within the boundaries of the City pursuant
to the Act;
and WHEREAS, it is anticipated that the Program will be operated both within
and outside the project areas of the Agency, but within the boundaries of the City;
and WHEREAS, the Agency has 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 hereby agrees to enter into a Cooperative Agreement
with the County, (Exhibit "N'), attached hereto and incorporated herein by reference, to
permit the operation by the County of the Program in the City;
and WHEREAS, the Agency desires that the County file an application with
the California Debt Limit Allocation Committee ("COLAC") of behalf of the Agency for
an allocation of authority to issue mortgage credit certificates, which allocation, when and
if received, the Agency intends to transfer to the County;
WHEREAS, one percent (1%) of the amount of the allocation to be requested on
behalf of the Agency is to be held in an account established by the Agency pursuant to
Section 8869.84 of the California Government Code and the regulations of CDLAC;
NOW, THEREFORE, 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 COLAC
on behalf of the Agency for an allocation of authority to issue mortgage credit certificates
in an amount not to exceed $3,000,000, 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 Agency's proportionate share (based upon the number of
participants in the Program) of administrative costs applicable to the allocation received
from COLAC, 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.
ADOPTED this 10th day of December 1996.
CITY OF ORANGE,
a muni . al corporation
ATTEST:
Reso. No. 8722 2 me1/bd
I hereby certifY that the foregoing Resolution was duly and regularly adopted by
the City Council of the City of Orange at a regular meeting thereof held on the 10th
day of December . 1996, by the following vote:
AYES: COUNCILMEMBERS: MURPHY. SLATER. COONTZ. SPURGEON. ALVAREZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
Reso. No. 8722 3 mellbd
COOPERATIVE AGREEMENT BETWEEN
THE COUNTY OF ORANGE AND THE
CITY OF ORANGE
THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby
made and entered into as of this day of . 19
by and between the County of Orange, a legal subdivision and body corporate and politic
of the State of California (the "County"), and the City of Orange (the "City"), a municipal
corporation.
WITNESSETH
WHEREAS, the County has determined to engage in a mortgage credit certificate
program (the "Program") pursuant to Part 5 of ~ivision 31 of the Health and Safety Code
of the State of California (the "Act") in connection with the construction and acquisition
of homes in the County, all as provided for in said Act; and
WHEREAS, the County has determined to finance the Program by the issuance of
mortgage credit certificates as authorized by the Internal Revenue Code of 1986 (the
Code"); and
WHEREAS, the County, pursuant to the Act, has established the Program, and
has determined to cooperate with the City pursuant to the Act and in the exercise of its
powers under the Act for purposes of the Program; and
WHEREAS, the City has adopted the Program and determined to cooperate with
the County pursuant to the Act in the exercise of their powers under the Act for the
purposes of the Program.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
provided, the parties hereto agree as follows:
SECTION 1. The words and phrases of this Cooperative Agreement shall, for all
purposes hereof unless otherwise defined herein, have the same meanings assigned to such
words and phrases in the Act.
SECTION 2. The County agrees to use its best efforts to undertake the Program
and to issue mortgage credit certificates therefor pursuant to the Act and the Code from
time to time to the extent that the County receives allocations from the California Debt
Limit Allocation Committee ("COLAC").
EXHIBIT"N'
Page 1 of 3
SECTION 3. The City represents and warrants to the County that: (i) the City
has heretofore adopted a General Plan for the City in conformance with the provisions of
the Planning Zoning Law of the State of California (Government Code Sections 65000 ~
seq.), (ii) said General Plan includes a Land Use Element as required by Government Code
Section 65302, and (iii) the Program complies with said Land Use Element and Housing
Element.
SECTION 4. The City agrees that the County may issue mortgage credit
certificates under the Program, as specifically set forth in the Act and the code, with
respect to property located within the geographic boundaries of the City and further
agrees that the County may exercise any or all of the City's powers for the purpose of
issuing mortgage credit certificates pursuant to the Act and the Code with respect to
property located within the geographic boundaries of the City. At the expiration of one
year from the date funds become available to the City from an allocation under the
Program, the County may review the City's progress in committing funds from such
allocation and, following consultation with the City, may reallocate to another city or
public agency agreeing to participate in the Program or already participating in the
Program any unused portion of such allocation.
SECTION 5. The City agrees to make any deposit required by COLAC for an
application for a mortgage credit certificate allocation. The City further agrees to pay
within 45 days after invoiced by the County its proportionate share (based upon the
number of participants in the Program) of administration costs applicable to each
allocation received from COLAC, which share is estimated not to exceed $15,000 per
allocation period.
SECTION 6. The City agrees to undertake such further proceedings or actions as
may be necessary in order to carry out the terms and the intent of this Cooperative
Agreement.
SECTION 7. Nothing in this Cooperative Agreement shall prevent the County
from entering into one or more agreements with other public bodies and political
subdivisions within the County, if deemed necessary and advisable to do so by the County.
SECTION 8. This Cooperative Agreement may be amended by one or more
supplemental agreements executed by the County and the City at any time, except that no
such amendment or supplement shaU be made which shall adversely affect the rights of the
owners of any mortgage credit certificates issued by the County in connection with the
Program.
SECTION 9. This Cooperative Agreement shall expire and be of no further force
and effect upon agreement of the parties hereto.
EXHIBIT"N'
Page 2 of 3
IN WITNESS WHEREOF, the parties hereto have caused this Cooperative
Agreement to be executed and attested to by their proper officers thereunto duly
authorized, and their official seals to be affixed, all as of the date first above written.
COUNTY
OF ORANGE By:
Chief
Executive Officer APPROVED
AS TO FORM:County
Counsel CITY
OF ORANGE By:
Mayor
ATTEST:
City
Clerk APPROVED
AS TO FORM:City
Attorney Reso8722Exh.
Nmellf&a EXHIBIT "
A"Page
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