HomeMy WebLinkAboutRES NO 44-95 RESOLUTION NO. 4 4 "9 ~
CITY OF BAKERSFIELD
MORTGAGE CREDIT CERTIFICATE PROGRAM
AUTHORIZATION FOR SUBMISSION OF
AN APPLICATION TO THE CALIFORNIA DEBT LIMIT
ALLOCATION COMMITTEE TO PERMIT THE ISSUANCE OF QUALIFIED
MORTGAGE CREDIT CERTIFICATES
WHEREAS, there is a continued need for affordable homeownership opportunities
throughout, the City of Bakersfield, particularly for households at the lower end if the
purchasing spectrum; and
WHEREAS, the issuance of Mortgage Credit Certificates CMCCs") to individual home
purchasers in other California jurisdictions has been shown to enhance the affordability of both
new and existing homes within the statutory limits; and
WHEREAS, Division 31, Part 1, Chapter 3.5, Article 2 of the Califomia Health and
Safety Code Sections 50197.1 et seq. (the "Act") authorizes a local entity, authorized by state law
to issue qualified mortgage bonds to establish and participate in MCC Programs; and
WHEREAS, Section 8869.85 of the Government Code requires aa 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 County of Kern (the "County") and other incorporated Cities (the "Other
Jurisdictions") in the County are requesting that the current MCC allocation and any subsequent
allocations to the City of Bakersfield (the "City") be available to eligible first time homebuyers
within their corporate limits; and
WHEREAS, the City, County, and the Other Jurisdictions wish 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 County and the
Other Jurisdictions pursuant to a written agreement between the City, the County, and the Other
Jurisdictions: and
WHEREAS, a condition of application to CDLAC is that the City agree to set aside a
security deposit of up to $200,000 (1% of the initial approved issuing amount of $20,000,000) 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 City 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 $20,000,000 to be converted for authority to issue Mortgage
Credit Certificates in a face amount up to $5,000,000 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 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 1% of the
initial approved mortgage bond allocation issuing amount in a local interest-bearing account only
to be released to CDLAC if the City is unable to issue one (1) MCC.
PASSED AND ADOPTED by the City Council of the City of Bakersfield, State of
California, as of MAR 0 $ ~
AYES: COUNCILMEMBER DeMOND, CARSON, SMITH, McDERMOTT, ROWI~S, CHOW, SALVAGGIO
NOES: COUNCILMEMBER
ABSTAIN: COUNCILMEMBER ~ 0 0,6
ABSENT: COUNCILMEMBER
APPROVED UAR 0 $ 1~95
MAYOR of the City of Bakersfield
Assistant CITY CLERK e.t~d'Ex OfficioSClerk of the
Council of the City of Bakersfield
APPROVED as to form:
JUDY SKOUSEN
City Attorney
By: