CC Resolution 1992-032^#A E
RESOLUTION NO. 92-32
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 County") 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 50197
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 issue mortgage credit certificates
to qualified first-time homebuyers by allowing them to take a
tax credit equal to twenty percent 20%) 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, 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
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^#A 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 in calendar year 1992 and to use said
allocation for the issuance of mortgage credit certificates; and
WHEREAS, one percent 1%) of the amount of the allocation
being requested by the City is being held by the County in an
escrow account;
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 Allocation Committee for an allocation for calendar
year 1992 of $________ to qualified mortgage bonds and one
hundred percent 100**) of said allocation for calendar year
1992 is to be utilized for mortgage credit certificates. It is
hereby authorized that, upon receipt, such allocation for
calendar year 1992 be transferred to the County, which will
issue mortgage credit certificates pursuant to the terms of the
program to persons residing within the City and the County, as
provided in the Cooperative Agreement between the City and the
County with respect to the subject matter hereof. 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 Cooperative Agreement between the City and
the County to permit the operation of the Program in the City
is hereby approved, and the Mayor is hereby authorized to
execute the Cooperative Agreement on behalf of the City.
Section 4. 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 implementation of the Cooperative Agreement, the
purposes of this resolution and 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 5. This Resolution shall take effect from and
after the date of its adoption.
03/24/92
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^#A ADOPTED by the City Council and signed by the Mayor and
attested by the City Clerk this 17th day of March
1992.
APPROVED AS TO FORM:
City Attorney
03/24/92
0089Q/2588/000 3-
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