HomeMy WebLinkAboutRES NO 53-96RESOLUTION NO. -
A RESOLUTION AUTHORIZING APPLICATION TO THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE TO
PERMIT THE CONTINUED ISSUANCE OF QUALIFIED
MORTGAGE CREDIT CERTIFICATES
WHEREAS, there is a continued need for affordable home ownership opportunities
throughout Kern County, particularly for households at the lower end of the purchasing
spectrum; and
WHEREAS, the issuance of Mortgage Credit Certificates (MCCs) to individual
home purchasers in the City of Bakersfield (the "City") and in other cities in Kern County
(the "Cities") has been shown to enhance the affordability of both new and existing homes
within the statutory limits; and
WHEREAS, California Health and Safety Code Section 50197.1 et seq. (the "Act")
authorizes a local entity to issue qualified mortgage bonds to establish and participate in
MCC Programs; and
WHEREAS, Section 8869.85 of the Government Code requires a local agency to
file an application for a portion of the state ceiling with or upon the direction of the
California Debt Limit Allocation Committee ("CDLAC") prior to the issuance of qualified
mortgage bonds or mortgage credit certificates; and
WHEREAS, the cities of California City, Delano, Maricopa, McFarland, Ridgecrest,
Shaffer, Taft, Tehachapi and Wasco (the "Cities") have requested that all of the City of
Bakersfield's MCC allocations be available to eligible first-time homebuyers within their
respective corporate limits; and
WHEREAS, the City and the Cities wish to continue to cooperate with one another
for the purposes of the MCC Program; and
WHEREAS, pursuant to Section 50197.5 of the California Health and Safety Code,
the City is authorized to operate an MCC Program within the jurisdiction of the Cities
pursuant to a written agreement between the City of Bakersfield and the Cities; and
WHEREAS, a condition of application to CDLAC is that the City agree to set aside
a security deposit of up to one percent (1%) of the initial approved issuing amount of
$3,954,000.00 in a local interest-bearing account, only to be released to CDLAC if the City
is unable to issue one (1) MCC; and
WHEREAS, the City has the capacity to administer an MCC Program.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield,
that the City Manager is hereby authorized to make immediate application to the California
Debt Limit Allocation Committee ("CDLAC") in the name of the City of Bakersfield for a
mortgage bond allocation in an amount up to $3,954,000.00 to be converted for authority
to issue Mortgage Credit Certificates in a face amount up to $988,500.00 (based upon the
4:1 conversion value of bond allocation to MCC allocation as established in Section
25(d)(2)(A) of the Internal Revenue Code; and
BE IT FURTHER RESOLVED that a non-refundable application fee of $300.00 be
forwarded to CDLAC. The balance of the application fee (.00025 times the amount of the
Mortgage Bond allocation less the $300 deposit) will be forwarded to CDLAC after an
authorization is approved; and
BE IT FURTHER RESOLVED that the City will set aside a security deposit of up
to one percent (1%) of the initial approved issuing amount of $3,954,000.00 in a local
interest-bearing account, only to be released to CDLAC if the City is unable to issue one
(1) MCC; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to
approve any additions to or changes in the form of the cooperative agreements deemed
necessary or advisable and is authorized to enter into such additional agreements with the
Cities, execute such other documents, or take such other actions as are deemed
necessary or appropriate to carry out the purpose and intent of the MCC Program.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on
U~Y ~ II 1~6 , by the following vote:
AYEE,: COUNCILUEMBBt DeM0~ID, CARSON, ~MfRJ, Mc~31MOTT, ROWLES, SULLIVAN, SN.VAI~GIO
ABSTAIN: COUI,K~ER ,~,/6 ~, ~
CITY CLERK and EX OFFIC!O..~' the
Council of the City of Bakersfielr:l
APPROVED
1996
/
BOB
MAYOR of the City of Bakersfield
APPROVED AS TO FORM:
JUDY K. SKOUSEN
City Attorney
,
~" JANICE SCANLAN
Deputy City Attorney
City of Bakersfield
JAN/meg
S/RES/MCC.RES
--April 30, 1996
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