HomeMy WebLinkAbout4.04 MortgageCrCertifPrgm
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 26, 1993
SUBJECT:
Agreement with Alameda County regarding
Mortgage Credit certificate' (MCC) Program
EXHIBITS ATTACHED:
~ Dennis earrington, Senior Planner
A. ~opy of eity/eounty Mee Agreement
B. /eopy of Program III-N of Housing
Element.
REPORT PREPARED BY:
RECOMMENDATION: QAf .q-
FINANCIAL STATEMENT:
Authorize the eity Manager to sign the
City/County MCC Agreement.
The cost to the City of participating in the
program will be $4,000 which was included in
the 1993-1994 budget.
DESCRIPTION:
The eity has participated in the MCC Program since 1989. This
program enables the eity to provide assistance to first time home
buyers of new and existing single family dwelling units in Alameda
County. Program III-N of the Housing Element (Exhibit B) directs that
the eity continue to participate in the Mee Program. Participants in
the program may receive up to a 20% credit of the annual interest paid
on the mortgage against income taxes. During 1992, 9 certificates
were issued and 1 certificate was committed and likely to be issued.
If the program is funded at its current level, it is anticipated that
10 certificates would be issued in Dublin during 1993.
staff recommends that the eity Council authorize the eity Manager
to sign the eity/eounty Mee Agreement (Exhibit A).
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ITEM NO.~ COPIES TO: General/Agenda File
. Senior Planner
HCD Fit"'"
/MCC1993 C IT Y C L E R K 1
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COOPERATIVE AGREE"illIT BE11qm~ lI,{E, coUNTY
or l\lJ\.\1EDA MID ll-IE CITY OF UUA L /1.../
into as of
polit~~al sUlJ<Iivlslon
of V<<..8L / N ,
(the "Cl ty").
THIS COOPERATIVE AGREE"tENT (this "Agreement") l is made and entered
, 1993 , by and bet\.Jeen the County of Alameda, a
at the State of California (tnc"County"), and tne City
a political subdivision of the State at California
\'/ I TNf:SS ETH :
WHEREAS, the County has detenni ned ..to provide assi stance in the
financing of homes for persons in the lo\.;er end of the home purchasing
spectrwlI in the County and the City Hith a program to issue mortgage credit
certificates and single family mortgage revenue bonds (the "Program") pursuant
to Part 1 and Part S of Division 31 of the Health and'Safety Code of the Stace
of California (the "Act"); and
wr-lERE<\S, the County ]1.2.S established t:"1.e Program pursuant to the .1.ct
and has detellilined to coooerate h'ith the City in the exercise of its Dowers
under the Act for purposes oE tne Program; I . .
NOI'/, THEH.EFORE, in consideration of the fi1utual covenants
hereinafter provided, the parties hereto agree as follows:
SECTION 1. The County agrees to undertake the Program and to issue
mortgage credit certificates and single family mortgage revenue bonds
thereunder pursuant to the Act. County agrees that issuance of single f2:nil; .
mortgage revenue bonds with respect to property located within the geograpnic
boundaries of the City will be only for those projects approved by the
Planrling Director of tile City or his/11er designee.
SECTION 2. City hereby agrees to cooperate with tne County in t~e
exercisc jointly or otncl',.iisc of U1cir po\.;ers for the purpose of assisting in
the financing of homes purs\J2.nt to the Act by agreeing tnat the County shClll
exercise its po\;"ers under the Progral!l, all as more specifically set fortn in
the Act, wi th respect to pro~e rty located Hi thin the geographic boundaries of
the City. In particular, and h;itnout limiting the foregoing, the City agrees,
on the request of the County, either to apply or to authorize the County to
apply on behalf of the City, in accordance Hith Sectiori 8869.8S of the
Government Code, for an allocation of the state ceiling to issue mOrLgage
credit certificates and single family mortgage revenue bonds and to transfer
any such allocation received to the County under the tenns of Section
8869.8S(d) of the Gover~ent Code.
SECnm! 3. The City agrees to undertake sucn furtner proceedings
or actions as may be necessarj in order to carry out the tenns and the inte~t
of this Agreement. Nothing in this Agreement shall prevent tne County from
entering into one or more aoreeii1ellts \~itn the other political subdivisions
\~ithin the County, if deemed n~ccssJry and advisable to do 50 by the Count;.
EXHIBIT A
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SECTION 4. This Agreement may be amended by one or more
supplemental agreements executed by the County and tne City at any time,
except that no such amendment or supplement shall be made ~hich shall
adversely aHect the rights of the holders of the bonds or citizens ...;no
purchase a home ~ith assistance from the Program.
SECTION S. This agreement shall continue in effect tnroughout the
period during IVI1icl1 tIle County is empow'ered to engage in the Program pursuant
to the Act, provided ho\{ever, tnat the City may decline to cooperate with the
County under this Agreement, in connection ~itn any SUCh Program of the
County, upon notice to the County to that effect within 15 days of receipt of
notice from the County of its intention to engage in the Program. Such notice
from the County shall be give:1 to the City at least 31 days prior to tne
establishment of any such Program.
IN \'iI1c-r.cSS WHEREOf, the parties hereto have caused tnis Agreement to
be executed and attested by their proper officers thereunto duly authorized,
and their official seals to be hereunto affixed, all ,.as of tne day first above
~ri tten.
COlMfY 0 F ALAMEDA
CITY OF
OUL8L/N
.BY
.BY
CITY MANAGE'.
Ti tle
ATTEST:
ATTEST:
llY
1.\Y
CITY CLERX
Ti tIe
APPROIfED .^S TO FOR..\l:
APPROIfED AS TO FOr,""1:
llY
bY
CITY ATTORNEY
COUi'ITY COLJ~S EL
2096H/7 -8
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Ptz.O~fZA-M m-, f~GH "DUeLLN. l..tc::>VS. ~l~;H.c.~-r
,
N. participate in the Alameda County Mortgage Credit
certification (NCC) program. Through the use of a MCC,
eligible first-time home buyers increase their
eligibility to qualify for a mortgage loan and reduce
their effective mortgage interest rate appro;<imately 2
percentage points. MCC recipients may take 20% of their
annual mortgage interest payments as a dollar for dollar
tax credit against their federal income taxes. The home
buyer adjusts federal income tax withholdings, increasing
income available to pay the mortgage. Under the program,
the city currently has two reservations issued worth
$230,900 and seven HCC'S remaining worth $769,100.
Policy Objective:
Increase the eligibility of first
time home buyerS to qualifY for
mortgage loans
Actions Undertaken:
On January 23, 1989, the city
indicated its interest in
participating in the MCC program.
Two reservations for Dublin residents
have been issued.
Actions to be
undertaken:
continue participation in the program
Financing:
Minor administrative cost
Implementation
Responsibility:
Planning Department
Time frame:
ongoing implementation
6.4 CONSISTENCY WITH OTHER GENERAL PLAN ELEMENTS (65300.5)
Government Code section 65300.5 requires that the general pl.n and
its eiements comprise an integrated, internally consistent and
compatible statement of policies of the City. The other elements
of the General Plan are being revised in conjunction with the
preparation of the revised Housing Element. Revisions will be
required to section 1.0 (BaCkground), 2:0 (Land Use Element) and
6.0 (HOusing Element Summary) of the Dublin General plan.
EXHIBIT B
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