RES-ORA-0327 Adopting a Mortgage Credit Certificate ProgramRESOLUTION NO. ORA-
0327 A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY ADOPTING A MORTGAGE
CREDIT CERTIFICATE PROGRAM IN COOPERATION WITH
THE COUNTY OF ORANGE, AUTHORIZING
AN APPLICATION BY THE COUNTY ON BEHALF OF
THE AGENCY TO THE CALIFORNIA DEBT
LIMIT ALLOCATION COMMITI'EE 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 th€:: 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 cre:dit 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
issuingmortgage cr€::dit certificates pursuant to the Act to provide funds for the
Program; and WHEREAS, the Orange Redevelopment Agency (the "Agency") hereby
finds and determines that the project areas of the Agency will be benefited by the operation
of the Program both within and outside the project areas of the Agency, but
within the boundaries of the
City; and WHEREAS, the City has found and determined that the project areas
of the Agency will be benefited by the operation of the Program both within and
outside the project areas of the Agency, but within the boundaries of the
City; and WHEREAS, the Agency hereby finds and determines 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 th(: boundaries of the project areas
of the Agency, but within the boundaries of the
City; and WHEREAS, the City has agreed to enter into a Cooperative Agreement
with the County to permit the operation by the County of the Program within the boundaries
of the
WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the
Codl~"), 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 term is defined in the Code) among governmental units in the State of California (the
Statle") 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 the
Califi>rnia Debt Limit Allocation Committee ("CDLAC") prior to the issuance of
mortgage credit certificates; and
WHEREAS, the Agency desires that the County file an application with CDLAC
on b(;:half of the Agency for an allocation of authority to issue mortgage credit certificates
and dects to transfer to the County pursuant to Section 8869.85(d) of the Government
Code: the total amount, if any, of such authority allocated to the Agency; and
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 Government Code and the Regulations of CD LAC.
NOW, THEREFORE, the Orange Redevelopment Agency does hereby resolve
as follows:
Section 1.Each of the foregoing recitals is true and correct.
Section 2. The Agency hereby agrees to participate in the Program for the
purpose of increasing the affordable housing supply in the County and in the City and
conslents 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 3. The Executive Director, or his designated representative, is
authorized, on behalf of the Agency, to take such steps and execute such documents as are
necessary for the submission of an application to CDLAC on behalf of the Agency for an
allocation in the amount of $3,000,000 for application to the issuance of mortgage credit
certificates by the County. The Executive Director, or 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
issmld by the County will not exceed the maximum allowable amount.
Reso. ~o. ()~-o327 2 mel/mmr
Section
4. 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
designated representative, is authorized to certify to CDLAC that such amount is available.
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 Agency by CDLAC. The Executive Director, or his designated representative,
on behalf of the Agency, is authorized and directed to take such steps and exc~
cute such documents 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 res.
ide within the City and the County.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 connection
with the application for the allocation authorized to be requested are ratified and
approved.ADOPTED
this 10th day of December 1996.ORANGE
REDEVELOPMENT AGENCY,a
publ~9-"dy, corporate ~d olitic tman;
Orange
Redevelopmen A 'JITEST:
Cl'erk,
Orange Red Reso. No.
ORA-0327 3 meVrnmr
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 10th day
of December . 1996. -AYES:
DIRECTORS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ NOES:
DIRECTORS: NONE ABSENT:
DIRECTORS: NONE ABSTAIN:
DIRECTORS: NONE u-
d-
development Agency
Reso. No. ORA-0327 4