Resolution - 9567RESOLUTION NO. 9567
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA APPROVING A COOPERATION AGREEMENT BY AND
BETWEEN THE CITY AND THE WEST COVINA REDEVELOPMENT
AGENCY, AND APPROVING A LOAN ADMINISTRATION
• AGREEMENT BETWEEN THE CITY, THE AGENCY, AND
AMERICAN CAPITAL FINANCIAL CORPORATION
WHEREAS, the West Covina Redevelopment Agency (the "Agency") established a First
Time Home Buyer Program in 1994, under which the Agency provides subsidies of up to twenty
percent (20%) of the costs of a home, not to exceed Twenty Five Thousand Dollars ($25,000) to
first time home buyers toward the purchase of a single family home, condominium or townhome
located in the City of West Covina;
WHEREAS, the City of West Covina applied for and received an allocation of funds in
the amount of Four Hundred Ninety -Eight Thousand, Seven Hundred Fifty Dollars ($498,750)
through the Home Investment Partnerships Program, Title 1I of the Cranston -Gonzalez National
Affordable Housing Act of 1990, as implemented by the regulations set forth in title 24 of the
Code of Federal Regulations, part 92, and Title 25 of the California Code of Regulations
commencing with Section 8200 (the "HOME Program") for purposes of augmenting the First
Time Home Buyer program; and
WHEREAS, the City wishes to grant, via a cooperative agreement, the HOME Program
funds actually received by City to Agency for use in providing subsidy assistance in the form of
mortgage down payment assistance loans as part of the First Time Home Buyer's Program, and
WHEREAS, one condition of releasing the HOME Program Funds to the City is an
agreement between City and its Loan Administrator, American Capital Financial Corporation
("American Capital") setting forth provisions regarding the administration of the First Time
Home Buyer Program with regard to homebuyers who apply for and receive HOME Loans,
which agreement ensures compliance with HOME Program guidelines, regulations, and other
documents;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina as follows:
1. The City hereby approves in substantially the form attached hereto as Exhibit A the
Cooperative Agreement between the City and the West Covina Redevelopment Agency, under
which City grants the HOME Program funds to the Agency for use in its First Time Home Buyer
program in accord with the HOME Program, the HOME Program regulations, the Agency's
First Time Home Buyer Program Guidelines, and all other conditions, covenants, regulations,
statutes and other laws regarding the expenditure of funds from the HOME Program.
2. The City hereby approves that certain Loan Administration Agreement between the City,
the Agency, and American Capital in substantially the form attached hereto, governing the
administration of the Agency's First Time Home Buyer Program with regard to First Time Home
Buyers applying for and receiving HOME Loans.
3. The City hereby grants to the Agency Executive Director, or his or her designee, the
authority to execute documents and take any other actions necessary or proper on behalf of the
City to ensure that the HOME Program funds are utilized in the First Time Home Buyer program
in accordance with the requirements of the HOME Program.
4. The City Clerk shall certify to the adoption of this Resolution.
584173,1\22740.0016
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PASSED AND ADOPTED
ATTEST:' I,.�,
City Clerk',`
I HEREBY CERTIFY that the foregoing Resolution No.95677was duly adopted by the
City Council of the City of West Covina at a regular meeting thereof held on the 5th day of
_may 1 1998, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED AS TO FORM:
"A��
City Attorne
Herfert, Howard, Touhey, Wong, Melendez
None
None
None
City Clerk
594 t 73. 1A22740.00 t6