Ordinance - 1614•
ORDINANCE NO. 1614
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA RELATING TO THE ESTABLISHMENT OF A HOME MORTGAGE
FINANCING PROGRAM FOR MODERATE AND LOW INCOME FAMILIES IN
THE CITY OF WEST COVINA
WHEREAS, the City Council of the City of West Covina (the "City")
proposes to undertake a home mortgage financing program (the "Program") pursuant
to Part 5 of Division 31 of the Health and Safety Code of the State of California
(the "Act") for persons and families within the income limits established by the
Act, and proposes to issue revenue bonds pursuant to the Act to provide funds
for the Program;
WHEREAS, there is a shortage of decent, safe and sanitary housing,
particularly of housing affordable by persons in the lower end of the purchasing
spectrum, and a consequent need to encourage'the construction of homes affordable
by such persons and otherwise to increase the housing supply for such persons in
the City; and
WHEREAS, the authorization, issuance and sale of mortgage revenue bonds
under the Act represents a means of providing funds at below market rates for the
purpose of financing such housing;
NOW, THEREFORE, the City Council of the City of West Covina does hereby
ordain as follows:
Section 1. Adoption of Home Mortgage.Financing Program.
Based upon the findings of the City Council , the City hereby adopts the
Program pursuant to the Act for the purpose of increasing the housing supply for
moderate and low-income families in the City.
Section 2. Findings
The City Council hereby finds and declares that:
(a) Decent housing is an essential motivating force in helping
people to achieve self-fulfillment in a free and democratic society;
(b) A healthy housing market is one in which residents of this
state have a choice of housing opportunities and one in which the housing consumer
may effectively choose within the free market;
(c) There exists within the City a shortage of housing available to
moderate and low-income persons, as such persons are now or hereafter defined by
the provisions of the Act, and that this shortage is exacerbated during periods of
rising interest rates, particularly as high interest rates have the effect of
diminishing the number of otherwise creditworthy buyers from qualifying for private
sector mortgage capital sources, and in order to remedy this adverse effect on
potential homebuyers on the lower end of the purchasing spectrum, it is necessary
to implement a public program to reduce the cost of mortgage financing for single-
family purchases for those persons unable to compete for mortgage financing in the
conventional mortgage market; and
(d) It is necessary, in order to implement a public program to reduce
the cost of mortgage financing, to authorize long-term, low -interest mortgages to
persons not presently eligible for financing through private sector lending
institutions to finance construction, rehabilitation and acquisition of homes, and
in order to finance the Program, to issue mortgage revenue bonds to fund the
Program.
Section 3. Liberal Construction
The provisions of this Ordinance, being necessary for the welfare of
the City and its inhabitants shall be liberally construed to effect the purpose
of the Program.
Section 4. Effective Date
This Ordinance shall be published once, together with the names of those
• City Council members voting for and against the Ordinance, within fifteen days
after passage and.adoption, in the San Gabriel Valley Tribune ,_.a newspaperof
general circulation published and circulated in the City of I -Jest Covina. This
Ordinance will take effect immediately upon adoption pursuant to Health and Safety
Code Section 52031. The facts constituting the public purpose of this Ordinance
are the findings of the City Council set forth in Section 2.
PASSED AND APPROVED this 5th day of December 1983.
iLo U�:" -LQ A-,
Maylor
ATTEST:.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF WEST COVINA )
I, HELENE MOONEY, City Clerkof the City of West Covina, California do hereby
certify that the foregoing.Ordinance No. 1614 was regularly introduced
and placed upon its first reading at a regular meeting of the City Council
on the 28th day of November , 1983. That thereafter said Ordinance was
duly adopted and passed .at a regular meeting of the City Council on the
5th day.of December , 1983, by the following vote to'wit:
AYES Tice, Bacon, Chappell
NOES: None
ABSENT: Tennant, Shearer
Ci ty C er
APPROVED AS TO FORM:
es_e' 4_-A� GA_�
City Attorney
C E R T I F I C A T I O N
State of California. )
County of Los Angeles ) ss.
City of West Covina. )
I, JANET BERRY, Deputy City Clerk of the City of
West Covina, State of California., do hereby certify
that a true and accurate copy of Ordinance No.]&.I�
was published, pursuant to law, in the West Covina.
Tribune, a. newspaper of general circula.tion published
and circula.ted in the City of West Covina..
anet Berry, Deputy City Clerk
City of West Covina, California
Dated �" l I