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HomeMy WebLinkAboutAGENDA REPORT 2005 1207 CC REG ITEM 10ETO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council Nancy Burns, Senior Management November 17, 2005 (CC Meeting SUBJECT: Consider Resolution to of the Joint Powers Ventura Cities Mortgage to Dissolve the Ventura Authority BACKGROUND ITEM ;` ] " %: J- 6&t ORVARK. CALIFORNIA City ', (stinril Meetinq ACTION: Analyst of December 7, 2005) Authorize the Termination Agreement Creating the Financing Authority and Cities Mortgage Financing On April 21, 1999, the City Council adopted Resolution No. 99- 1592, authorizing participation in the Ventura Cities Mortgage Financing Authority (VCMFA), through a Joint Powers Agreement (JPA) to assist with home mortgage financing programs. Additional cities were added to the JPA with the adoption of Resolution No. 2002 -1941, approved on February 6, 2002. DISCUSSION The VCMFA's "Fresh Rate" program was targeted to home buyers who could make a mortgage payment, but did not have funds for a down payment. This program provided four percent (40) down payment assistance which was forgiven over time. The financing carried a slightly higher than market interest rate in exchange for this assistance. In a market with steadily decreasing mortgage interest rates, the program did not gain the popularity that had been anticipated. Never - the -less, eighteen (18) loans, totaling $2,848,311 were made to families in Ventura County while this program was in effect. All principal funds and interest on the bonds that were issued by VCMFA to finance this program have been paid in full, and it is now time to dissolve the VCMFA. 000�'�3 Honorable City Council December 7, 2005, Meeting Page 2 STAFF RECOMMENDATION 1. Adopt Resolution No. 2005 r authorizing the termination of the Joint Powers Agreement which created the Ventura Cities Mortgage Finance Authority (VCMFA); dissolving the VCMFA; and rescinding Resolutions No. 99- 1592 and No. 2002 -1941; and 2. Authorize the mayor to execute an agreement for the performance of administrative functions associated with these actions. Attachment "A" 00062IS ` Attachment "A" RESOLUTION NO. 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE DISSOLUTION OF THE VENTURA CITIES MORTGAGE FINANCING AUTHORITY (VCMFA), TERMINATING THE JOINT POWERS AGREEMENT (JPA) WHICH CREATED THE VCMFA, RESCINDING RESOLUTIONS NO. 99- 1592 AND NO. 2002 -1941, AND PROVIDING FOR OTHER ASSOCIATED ADMINISTRATIVE MATTERS WHEREAS, the City of Moorpark, a municipal corporation, is a duly authorized member of the Ventura Cities Mortgage Finance Authority (VCMFA), along with certain other cities within the County of Ventura, through a Joint Powers Agreement (JPA); and WHEREAS, the VCMFA "Fresh Rate" Mortgage Finance Program provided for the issuance of bonds to finance down payment assistance and mortgage finance programs; and WHEREAS, all principal and interest on the above - referenced bonds have been paid in full, and the VCMFA has fulfilled its purpose and needs to be dissolved at this time. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby authorizes the dissolution of the JPA and termination of the VCMFA. SECTION 2. The Mayor is directed to execute an Agreement to Terminate the Joint Powers Agreement Creating the Ventura Cities Mortgage Financing Authority and to Dissolve the Ventura Cities Mortgage Financing Authority and any related documents. SECTION 3. Resolutions Nos. 99 -1592 and 2002 -1941 are hereby rescinded. 000255 Resolution No. 2005 - Page 2 SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 7th day of December 2005. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 0002 Ir-T6