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HomeMy WebLinkAboutResolution 2008-073 N.C.S. 05/05/2008Resolution No. 2008-073 N.C.S. of the City of Petaluma, California AUTHORIZING PARTICIPATION IN A COUNTY-WIDE APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FORA $3.2 MILLION BOND ALLOCATION IN 2008 AND FOR FURTHER ALLOCATIONS IN FUTURE YEARS TO PERMIT ISSUANCE OF QUALIFIED MORTGAGE CREDIT CERTIFICATES (MCC) THROUGHOUT SONOMA COUNTY AND ALL ITS NINE CITIES WHEREAS, there is a need for affordable homeownership opportunities within the County of Sonoma for low and moderate income households; and, WHEREAS, the issuance of Mortgage Revenue Certificates (MCCs) to homebuyers throughout Sonoma County has been shown to enhance the affordability of both new and existing homes within statutory limits; and, WHEREAS, the California Health and Safety Code Sections 50197.1 et. seq. ("the Act") authorizes "...a redevelopment agency, housing authority, or other local entity, authorized by state law to issue qualified mortgage bonds..." to create and participate in MCC Programs; 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 Allocation Committee (CDLAC) prior to the issuance of qualified mortgage bonds or MCCs; and, WHEREAS, the City of Petaluma has previously entered into cooperative agreements with the County of Sonoma and the cities of Cloverdale, Cotati, Healdsburg, Rohnert Park, Santa Rosa, Sebastopol, Sonoma, and the Town of Windsor (the "Cities") pursuant to which the Sonoma County Community Development Commission (CDC) applied to CDLAC for mortgage revenue bond Single Family Allocation authority for an MCC Program; and, WHEREAS, the City of Petaluma wishes to continue to cooperate with the countywide jurisdictions for the purposes of the MCC Program; and, WHEREAS, a security deposit of up to $100,000 has been set aside in a local interest bearing account by the CDC only to be released to. CDLAC if the CDC is unable to issue one MCC; and, WHEREAS, the CDC continues to have the capacity to administer an MCC program. NOW, THEREFORE, BE IT RESOLVED that: 1. The City requests that the Sonoma County Community Development Commission (CDC) make immediate application to the California Debt Allocation Committee (CDLAC) fora 2008 mortgage bond allocation in an amount of up to $3.2 million. Resolution No. 2008-073 N.C.S. Page 1 2. The City requests that the CDC make application in future years for additional mortgage bond allocations in amounts as determined annually by the CDLAC. The City Manager is authorized to execute and/or amend the cooperative agreement with the CDC for the continued use of MCC allocations within the City's corporate limits. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the rove as to Council of the City of Petaluma at a Regular meeting on the 5`h day of May, 2008, fon by the following vote: n AYES: Barrett, Freitas, Harris, Nau, Vice Mayor Babbitt, Mayor Torliatt NOES: None ABSENT: O'Brien ABSTAIN: o+ne N~ ATTEST: / ~ `-~.J~~,~ City Clerk City Resolution No. 2008-073 N.C.S. page 2