CC RES 1997-113RESOLUTION NO. 97-113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES 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, AND 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 Rancho Palos Verdes (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 homes 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, 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 the term
is defined in the Code) among governmental units in the State of California (the "State ")
having the authority tol 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 Rancho Palos
Verdes 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.
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 years 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 he
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.
Resolution No. 97 -113
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PASSED, APPROVED, and ADOPTED this 16th day of December, 1997.
MAYOR
ATTEST:
CITY CLERK
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES }
I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
above Resolution No. 97- 113was duly and regularly passed and adopted by the said City
Council at a regular meeting thereof held on December 16 , 1997.
CITY CLERK
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Resolution No. 97 -113
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"EXHIBIT A"
COOPERATIVE AGREEMENT BETWEEN
THE COUNTY OF LOS ANGELES AND
THE CITY OF RANCHO PALOS VERDES
WHEREAS, the County of Los Angeles (the "County ") has determined 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 ") in connection with the construction and
acquisition of homes in the County, all as provided for in said Act; and
WHEREAS, the County has determined to finance the Program by the issuance of mortgage
credit certificates as authorized by the Internal Revenue Code of 1986 (the "Code "); and
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 the purposes of the Program.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the
parties hereto agree as follows:
SECTION 1: The words and phrases of this Cooperative Agreement shall, for all purposes
hereof unless otherwise defined herein, have the same meanings assigned to such words and
phrases in the Act.
SECTION 2: The County agrees to use its best efforts to undertake the Program and to
issue mortgage credit certificates therefore pursuant to the Act and the Code from time to time to
the extent that the County receives allocations from the California Debt Limit Allocation Committee
(
SECTION 3: The City represents and warrants to the county that: (i) the City has heretofore
adopted a general plan for the City in conformance with the provisions of the Planning Zoning Law
of the State of California (Government Code Sections 65000 et set.), (ii) said general plan includes
a land use element as required by Government Code Section 65302, and (iii) the Program complies
with said land use element and housing element.
SECTION 4: The City agrees that the County may issue mortgage credit certificates under
the Program, as specifically set forth in the Act and the Code, with respect to property located within
the geographic boundaries of the City and further agrees that the County may exercise any or all of
the City's powers for the purpose of issuing mortgage credit certificates pursuant to the Act and the
Code with respect to property located within the geographic boundaries of the City. At the
expiration of one year from the date funds become available to the City from an allocation under the
Program, the County may review the City's progress in committing funds from such allocation and,
following consultation with the City, may reallocate to another city or public agency agreeing to
participate in the Program or already participating in the Program any unused portion of such
allocation.
SECTION 5: The City agrees to undertake such further proceedings or actions as may be
necessary in order to carry out the terms and the intent of this Cooperative Agreement.
SECTION 6: Nothing in the Cooperative Agreement shall prevent the County from entering
into one or more agreements with other public bodies and political subdivisions within the County, if
deemed necessary and advisable to do so by the County.
SECTION 7: This Cooperative Agreement may be amended by one or more supplemental
agreements executed by the county and the City at any time, except that no such amendment or
supplement shall be made which shall adversely affect the rights of the owners of any mortgage
credit certificates issued by the County in connection with the Program.
SECTION 8: This Cooperative Agreement shall expire and be of no further force and effect
upon termination of the program or the sooner agreement of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be
executed and attested by their proper officers thereunto duly authorized, and their official seals to
be hereto affixed, all as of the date first above written.
ATTEST:
Joanne Sturges.
Executive Officer - Clerk
of the Board of Supervisors
of the County of Los Angeles
By.
Deputy
(SEAL)
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
COUNTY OF LOS ANGELES
By:
Chair of the Board of Supervisors
APPROVED AS TO FORM:
DeWitt W. Clinton
County Counsel
By:
Deputy
CITY OF RANCHO PALOS VERDES
By: �-c�-
Mayor
Approved by Council
Date
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"Exhibit A"
Cooperative Agreement
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