CC Resolution 1994-049^"G RESOLUTION 94-49
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LA QUINTA, COUNTY OF RIVERSIDE,
CALIFORNIA, AUTHORIZING AN APPLICATION TO
THE CALIFORNIA DEBT LIMIT ALLOCATION
COMMITTEE AND TO PERMIT THE ISSUANCE OF
MORTGAGE CREDIT CERTIFICATES IN LIEU OF
QUALIFIED MORTGAGE BONDS
WHEREAS, there is a shortage in the County of Riverside the
vtcountytY) and in the City of La Quinta the City'*) of decent, safe and sanitary
housing, particularly of housing affordable by persons in the low and moderate end
of the purchasing spectrum and a need to increase the housing supply to first-time
homebuyers in the County and in the City for such persons; and,
WHEREAS, the Board of Supervisors of the County adopted
Resolution No. 87-564 on December 22* 1987 establishing a Mortgage Credit
Certificate Program pursuant to Section 51097 et. seq. of the Health and Safety Code
of the State of California the *Act") and Section 25 of the Internal Revenue Code
of 1986 the Code*') to homebuyers by allowing them to take a tax credit equal to 20
percent of the mortgage interest paid in a given year the *Program*); and,
WHEREAS, the City has found and determined 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 has entered into a Cooperative Agreement
with the County to permit the operation of the Program in the City; and,
WHEREAS, Section 146 of the Internal Revenue Code of 1986 limits
the amount of qualified mortgage bonds 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 the State; and,
WHEREAS, Chapter 3.5 of Part 1 of Division 31 of the California
Health and Safety Code Commencing with Section 50171) governs the allocation of
the State ceiling among governmental units in the State having the authority to issue
qualified mortgage bonds; and,
WHEREAS, Section 50185 et. seq. of the Health and Safety Code
and the procedures adopted pursuant thereto require a local agency to file an
application with the California Debt Limit Allocation Committee prior to the issuance
of qualified mortgage bonds; and,
WHEREAS, the City has determined to assign to the County
pursuant to Section 50192 of the Health and Safety Code all of the principal amount,
if any, of qualified mortgage bonds allocated to the City and to use said allocation
for the issuance of mortgage credit certificates; and,
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^"GRESOLUTIO* 94-49
WHEREAS, one percent of the amount of the allocation being
requested by the City is being held by the County in an escrow a*count;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of La Quinta, as follows:
Section 1: Each of the foregoing recitals is true and correct.
Section 2: The City Manager, or his designee, is hereby
authorized, on behalf of the City, to submit an application, and such other
documents as may be required, to the California Debt Limit Mlocation Committee for
an allocation of $20 million to qualified mortgage bonds and one hundred percent
100%) of said allocation is to be utilized for mortgage credit certificates It is
hereby authorized that, upon receipt, such allocation be transferred to the County,
who will issue mortgage credit certificates pursuant to the terms of the Program to
persons residing within the City and the County. The City Manager, or his
designee, is hereby directed to take such steps and execute such documents as is
necessary to effect the transfer of the allocation to the County.
Section 3: The officers and employees of the City are hereby
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 are
hereby ratified and approved.
Section 4: This resolution shall take effect from and after its
adoption.
PASSED, APPROVED, and ADOPTED at a regular meeting of the
La Quinta City Council, held on this 19th day of July, 1994, by the following vote,
to wit:
AYES: Council Members Banqerter, McCartney, Perkins, Sniff 1
Mayor Pena
NOES: None
ABSENT: None
ABSTAIN: None
City of La Quinta, Ca
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^"G 41
*SOLUTIO* 94-49
City of La Quinta, California
APPROVED AS TO FORMAT:
I/9A/IL4*/(**
N ONE
City of La Quinta, California
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE ss.
CITY OF LA QUINTA
I, SAUNDRA L. JUHOLA, City Clerk of the City of La Quinta, California, do hereby certify
the foregoing to be a full, true and correct copy of RESOLUTION NO.94-49 adopted by the
La Quinta City Council in a regular meeting on July 19, 1994.
City of La Quinta, California
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^"G mi* U I II
COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF
RIVERSIDE AND THE CITY OF LA QUINTA
THIS COOPERATIVE AGREEMENT this Agreement"), made and
entered into as of July 19, 1994, by and between the County of Riverside, a political
subdivision of the State of California the I! City?!).
WITNESSETH:
WHEREAS, the County adopted Resolution No. 87-564 on December 22, 1987,
establishing a Mortgage Credit Certificate Program the Program") pursuant to
Section 50197 et. seq. of the Health and Safety Code of the State of California the
Act'1) and Section 25 of the Internal Revenue Code of 1986 the Code") to issue
mortgage credit certificates to qualified, first-time homebuyers by allowing them to
take a tax credit equal to 20 percent of the mortgage interest paid in a given year.
WHEREAS, the City has adopted the Program and determined to
cooperate with the County pursuant to the Act in the exercise of their powers under
the Act for purposes of the Program;
WHEREAS, the City pursuant to the Act and its Resolution No.______
adopted on July 19, 1994, has assigned to the County its allocation for qualified
mortgage bonds to be used for the Program.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
provided, the parties hereto agree as follows:
SECTION 1. The terms used in this Agreement shall, for all purposes
of this Agreement, unless otherwise defined herein, have the meaning assigned to
such terms in the Act.
SECTION 2: The County agrees to undertake the program, including
using its best efforts to issue mortgage credit certificates therefore pursuant to the
Act as soon as is practicable, said mortgage credit certificates being in addition to
mortgage credit certificates which the County has heretofore issued for this
purpose.
SECTION 3: The City hereby agrees to cooperate with the County in
the exercise jointly or otherwise of their powers for the purpose of issuing mortgage
credit certificates pursuant to the Act by agreeing that the County shall exercise its
powers to issue mortgage credit certificates under the Program, all as more
specifically set forth in the Act. with respect to property located within the
geographic boundaries of the City.
SECTION 4: The qualified mortgage bond allocation assigned to the
County by the City for the Program will be utilized consistent with Section 50197.5
of the Act. For the initial six 6) months following the receipt and assignment of the
allocations, County will use said allocation for the creation of mortgage credit
certificates within the boundaries of the City. After the conclusion of said six-
month period, the allocation may be used County-wide for the Program.
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^"G SECTION 5: The City agrees to undertake such further proceeding or
actions as may be necessary in order to carry out the terms and the intent of the
Agreement. The County has entered into cooperative agreements with other cities
within the County, and nothing in these Agreement shall preventthe County from
entering into one or more additional agreements with other cities within the County
if deemed necessary and advisable to do so by the County.
SECTION 6: This Agreement may be amended by one or more
supplemental agreements executed by the County and the City.
IN WITNESS THEREOF, the parties hereto have caused this
Agreement to be executed and attested to by their proper officers thereunto duly
authorized and their official seals to b e hereto affixed, all as of the day and year
first above written.
COUNTY OF RIVERSIDE CITY OF LA QUINTA
By___________________ By_________________
Chairman, Board of
Supervisors
ATTEST: ATTEST:
By___________________ By_________________
APPROVED AS TO FORM: APPROVED AS TO FORM:
COUNTY COUNSEL
Deputy City Attorney
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