Resolution - 9523Amended
RESOLUTION NO. 9523
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVI NA
ADOPTING A MORTGAGE CREDIT CERTIFICATE PROGRAM IN
COOPERATION WITH THE COUNTY OF LOS ANGELES, AUTHORIZING AN
APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE
IN 1998,1999, 2000 FOR AN ALLOCATION FOR THE ISSUANCE OF
MORTGAGE CREDIT CERTIFICATES AND THE TRANSFER OF SUCH
ALLOCATION TO THE COUNTY OF LOS ANGELES
WHEREAS, there is a shortage in the County of Los Angeles (the "County") and in the City of Wes t Cov i na (the
"City") of decent, safe and sanitary housing, particularly of housing affordable by first-time home buyers, and a consequent need to
encourage the availability of domes affordable by 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 declared its intent to engage in a mortgage credit certificate
program (the 'Program") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") and to
issue mortgage credit certificates pursuant to the Act to provide funds for the Program; and
WHEREAS, the City hereby finds and determines that it is in the best interest of the City to participate in the Program and to
consent to the operation of the Program by the County within the geographic boundaries of the City pursuant to the Act; and
WHEREAS, the City desires to enter into a Cooperative Agreement with the County to permit the operation of the Program
within the boundaries of the City; and ,
WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code"), 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 "State') having the authority to issue mortgage credit certificates; 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 mortgage
credit certificates; and
WHEREAS, the City has determined to transfer to the County pursuant to Section 8869.85(d) of the Government Code, the
total amount, if any, of authority to issue mortgage credit certificates allocated to the City from the state ceiling; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of West Covina resolves as follows:
SECTION 1: Each of the foregoing recitals is true and correct.
SECTION 2: The City hereby adopts the Program for the purpose of increasing the housing supply in the County
and in the City and consents to the operation of the Program by the County with respect to all property located within the
geographical boundaries of the City.
Resolution 9523
Page Two
SECTION 3: The Cooperative Agreement between the County and the City (the "Agreement"), a copy of which is
attached hereto as Exhibit A, is hereby approved and the Mayor is hereby authorized and directed to execute and deliver the
Agreement, for and in the name and on behalf of the City. The Mayor, with the advice and consent of the City Attorney, is authorized
to approve any additions to or changes in the form of the Agreement deemed necessary or advisable, approval of such additions or
changes to be conclusively evidenced by execution by the Mayor of the Agreement as so added to or changed. The Mayor, with the
advice and consent of the City Attorney, is further authorized to enter into such additional agreements with the County, execute such
other documents or take such other actions as they may deem necessary or appropriate to carry out the purpose and intent of the
Agreement or to cooperate in the implementation of the Program.
SECTION 4: The City authorizes the County, and its authorized designee, to submit an application, and such other
documents as may be required, to CDLAC for a Mortgage Credit Certificate allocation in 1998,1999 and 2000 .
SECTION 5: The City hereby authorizes the transfer to the County of all of the principal amount, if any, of mortgage
credit certificates allocated to the City by CDLAC. The City Manager or his designee, on behalf of the City, is authorized and directed
to take such steps and execute such documents as are necessary to effect the transfer of such allocation to the County for the
issuance of mortgage credit certificates, the proceeds of which are to be used to induce the origination of home mortgage loans to
qualifying persons residing within the City and the County.
SECTION 6: The officers and employees of the City 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.
SECTION 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk
shall certify the vote adopting this resolution.
ADOPTED this 16th dayof December 19 97
ATTEST:-
CITY CLERK ,Janet Ber
STATE OF CALIFORNIA)
COUNTY OF LOS ANGELES) SS:
CITY OF West Covina )
1, Janet Berry , City Clerk of the City of Wes t Covina do hereby certify that the foregoing
Resolution was d, rly adopted by the Council of the City of West Covina California, at a regular meeting
thereof held on the 16th day of December ,19 97 , by the following vote:
AYES: Herfert, Howard, Melendez, Touhey, Wong
NOES: None
J
CITY CLERK Janet Berry