CC Resolution 1994-079^!G Lu
RESOLUTION 94-79
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
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 Coin mittee prior to the issuance of qualified mortgage bonds;
and,
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RESOL*1TlON 4-79
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,
WHEREAS, one percent 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 Mayor, 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 of $2.2 million for 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 Mayor, 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 20th day of December, 1994, by the following vote, to wit:
AYES: Council Members Banqerter, Perkins, Sniff, Mayor Pena
NOES: None
ABSENT: Council Member Mccartney
ABSTAIN: None
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RESOLIJTW)N 94-79
F
City of La Qul ta, California
ATT T:
AUNDRA JUHOL City Clerk
City of La Quinta, California
APPROVED AS TO FORMAT:
*iA*/1A /Y7I;Y11*
DAWN HONEYWELL, City Attorney
City of La Quinta, California
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^!G* ATTACHMENT 1
COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF
RIVERSIDE AND THE CITY OF LA QUINTA
THIS COOPERATIVE AGREEMENT this Agreement"), made and entered
into as of December 20, 1994, by and between the County of Riverside, a political
subdivision of the State of California the City").
WITNESSETH:
WHEREAS, the County adopted Resolution 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") 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
F purposes of the Program;
WHEREAS, the City pursuant to the Act and its Resolution 94- adopted
on the 20th day of December, 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 ore specifically set forth in the Act
with respect to property located within the geographic boundaries of the City.
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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 allocations 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.
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 Agreements shall prevent the 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 be 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 JOHN J. PEN A, Mayor
ATTEST: ATTEST:
By___________________________ By____________________________
SAUNDRA JUHOLA, City Clerk
APPROVED AS TO FORM, APPROVED AS TO FORM:
By__________________________
County Council DAWN HONEYWELL, City Attorney
Deputy
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