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Resolution 12171CITY OF ALAMEDA RESOLUTION NO.12171 APPROVING A MORTGAGE CREDIT CERTIFICATE PROGRAM FOR THE CITY OF ALAMEDA AND AUTHORIZING EXECUTION'OF AN AGREEMENT WITH THE COUNTY OF ALAMEDA TO ESTABLISH AND ADMINISTER SAID PROGRAM WHEREAS, there is a shortage in the City of Alameda (the "City ") of decent, safe and sanitary housing, affordable by persons in the lower end of the home purchasing spectrum, and a consequent need to provide assistance to such persons for the financing of homes in the City; and WHEREAS, the City Council of the City of Alameda wishes to provide for a home mortgage credit certificate program (the "Program ") pursuant to Chapter 3.5 of Part 1 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 and Section 25 of the Internal Revenue Code of 1986, as amended (the "Cade'), to assist in the financing of homes in the County and in the Participating Cities for persons in the lower end of the home purchasing spectrum; and © WHEREAS, the Council finds and determines that it is in the LL >- best interest of the City to adopt the Program and to consent to O 1`; the operation of the Program within the geographic boundaries of the City; and 0 WHEREAS, Sections 25 and 146 of the Code limit the amount of mortgage credit certificates that may be issued in any calendar year by entities within a. state and authorize the legislature of each state to provide the method of allocating authority to issue mortgage credit certificate 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 in the State of California of the state ceiling (as that term is defined in the Government Code) among governmental units having the authority to 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 (the "Committee ") prior to issuing mortgage credit certificates; and WHEREAS, the City has determined to have the County of Alameda (the "County ") apply on the City's behalf for a portion of the state ceiling and to have the County administer the total amount, if any, of authority to issue mortgage credit certificates allocated to the City by the Committee; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Alameda, as follows: 1. The City hereby adopts the Program for the purpose of providing assistance in the financing of homes for persons in the lower end of the home purchasing spectrum in the City and consents to the operation of the Program by the County with respect to all property located within the geographic boundaries of the City. The Finance Director is hereby directed to develop the Program in accordance with the requirements of Section 25 of the Code and the Act. The Program is to be designed to provide the most assistance possible to persons in the lower end of the home purchasing spectrum. The City Manager or his designee is hereby authorized to approve the final form of the Program and any changes that become necessary or convenient during its operation. 2. The Cooperative Agreement between the City and the County, a copy of which is attached hereto as Exhibit A, is hereby approved, and the City Manager, the City Attorney, and the City Clerk are hereby authorized and directed to execute and deliver said Agreement, for and in the name and on behalf of the City. The City Manager, with the advice and consent of the City Attorney, is authorized to approve any additions to or changes in the form of said Agreement which he, with the advice and consent of the City Attorney, deems necessary or advisable, his approval of such additions or changes to be conclusively evidenced by the execution by the City Manager of said Agreement as so added to or changed. 3. The City Manager, or his designee, is hereby authorized, on behalf of the City, to submit one or more applications, and such other documents as may be required, to or upon the direction of the Committee, for an allocation of a portion of the state ceiling, in an amount not to exceed the maximum amount for which the City may apply, for application towards the issuance of mortgage credit certificates, the final determination of the amount to be so applied for to be determined by the City Manager or his designee. 4. The City Manager, or his designee, is hereby authorized, on behalf of the City, to have deposited in a fund to be held by the City Treasurer, the amount required by the Committee to be deposited in order to receive an allocation to issue mortgage credit certificates in the amount applied for. 5. The City Manager, or his designee, is hereby directed to authorize a payment to the County, not to exceed $7,500, to pay for costs incurred by the County in establishing and operating the Program, and to authorize payment for those fees charged by the California Debt Limit Allocation Committee in connection with an application for a mortgage credit certificate allocation. 6. The City Manager, or his designee, 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 he may deem necessary or appropriate to carry out the purpose and intent of the Agreement or to cooperate in the implementation of the Program, including, without limitation, the application to the Committee for an allocation of a portion of the state ceiling for the issuance of mortgage credit certificates. All previous actions taken by the officers of the City in connection with the Program and the actions authorized hereby are hereby ratified and approved. 7. This resolution shall take effect immediately upon its adoption. COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AND THE CITY OF ALAMEDA THIS COOPERATIVE AGREEMENT (this "Agreement "), is made and entered into as of , 1991, by and between the County of Alameda, a political subdivision of the State of California (the "County "), and the City of Alameda, a political subdivision of the State of California (the "City "). WITNESSETH: WHEREAS, the County has determined to engage in a mortgage credit certificate program (the "(Program ") pursuant to Chapter 3.5 of Part 1 of Division 31 of the Health and Safety Code of the State of California (the "Act ") to provide assistance in the financing of homes for persons in the lower end of the home purchasing spectrum in Alameda County; and WHEREAS, the County has established the Program pursuant to the Act and has determined to cooperate with the City in the exercise of its powers under the Act for purposes of the Program; and WHEREAS, the City has requested that the County apply on the City's behalf for an allocation of $7,000,000 of the State ceiling to issue mortgage credit certificates and has requested that the County administer any allocation received by the City as the result of said application; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1. The County agrees to undertake the Program and to issue mortgage credit certifications pursuant to the Act. SECTION 2. City hereby agrees to cooperate with the County in the exercise jointly or otherwise of their powers for the purpose of assisting in the financing of homes pursuant to the Act by agreeing that the County shall exercise its powers under the Program, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City. In particular, and without limiting the foregoing, the City agrees to authorize the County to administer any allocation received by the City within the City of Alameda. EXHIBIT A SECTION 3. In administering the City's allocation of mortgage credit certificates, the County will accept and process mortgage credit certificate applications for the purchase of homes in the City; report monthly to the City on the status of the Program; prepare on behalf of the City the required quarterly and annual mortgage credit certificate reports to the Internal Revenue Service; train lenders to enable them to participate in the Program; educate local realtors on the use of mortgage credit certificates with first -time home buyers; market the program through newspapers, buyer outreach programs and other methods; compile and disseminate program guidelines; print marketing brochures and all required application forms; and consult with counsel to ensure the Program conforms with all applicable rules and regulations. SECTION 4. 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 Agreement. Nothing in this Agreement shall prevent the County from entering into one or more agreements with the other political subdivisions within the County, if deemed necessary and advisable to do so by the County. SECTION 5. This 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 any citizens who purchase a home with assistance from the Program. SECTION 6. This Agreement shall continue in effect throughout the period during which the County is empowered to engage in the Program pursuant to the Act, provided however, that the City may, with 30 days notice, relieve the County of administrative responsibilities for the mortgage credit certificate allocation received by the City in order for the City to administer its own allocation. SECTION 7. The City shall pay the County the sum of $7,500 for costs incurred by the County in applying for an allocation for the City and for operating, marketing, and materials cost incurred by the County in administering any allocation of mortgage credit certificate authority received by the City. In addition, the City shall separately pay all fees charged by California Debt Limit Allocation Committee. The County shall retain all application fees paid by lenders and home buyers in connection with issuance of mortgage credit certificates in the City. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereunto affixed, all as of the day first above written. COUNTY OF ALAMEDA CITY OF ALAMEDA BY BY PRESIDENT, BOARD OF SUPERVISORS MAYOR ATTEST: CLERK OF THE BOARD APPROVED AS TO FORM: KELVIN H. BOOTY, County Counsel BY DEPUTY COUNTY COUNSEL CITY CLERK APPROVED AS TO FORM: BY CITY ATTORNEY I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in regular meeting assembled on the fifth of November, 1991, by the following vote to wit: AYES: Councilmembers Arnerich, Camicia, Lucas, Roth and President Withrow - 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this sixth day of November, 1991. / Diane B. Felsch, City Clerk City of Alameda