HomeMy WebLinkAboutAGENDA REPORT 1997 1119 CC REG ITEM 10IWIR
FROM:
DATE:
MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
Nancy Burns, Management Analyst
30 S.4(167) (4)
ITEM 10.1 •
CITY OF MOORPARK. CALIFORNK
City Coup it Meeting
of 4 1992.
November 7, 1997 (Mtg. of 11/19/97)
SUBJECT: Consider Authorizing Cooperative Agreement Between
the County of Ventura and the City of Moorpark for
Participation in the Ventura County Regional
Mortgage Credit Certificate Program and Adopting
Resolution No. 97- , Amending the FY 1997 -98
Budget for Costs of Program Initiation
• • •
Approximately two years ago, the County of Ventura applied for
and received an allocation of approximately $4.5 million from the
California Debt Limit Allocation Committee (CDLAC) to implement a
Mortgage Credit Certificate Program (MCC) for single- family
residences. This allocation was sufficient for approximately
fifty (50) certificates. At that time, the cities of Oxnard,
Thousand Oaks and Ventura were the only cities participating in
this program. The following year, the cities of Camarillo, Port
Hueneme, Santa Paula and Simi Valley joined in the 1997 single -
family allocation of $8.9 million. At this time, the City of
Moorpark has the opportunity to join this regional program.
Discussion
The MCC Program provides a tax credit to eligible first time home
buyers which enables them to qualify for a larger mortgage than
they otherwise could afford. The tax credit is good for the life
of the loan and each year amounts to 150 of the interest on the
mortgage the buyer obtains to purchase the home. Although the
program carries limits on the buyer's income, these limits are
higher than 120% of median income for most family sizes in
Ventura County ($61,100 for 1 -2 persons; $70,265 for a family of
3 or more). The program limits purchase price to $222,527 for
new construction and $203,865 for resales and applies to single
family residences or condos /townhouses. This program may be
combined with other programs, such as a down - payment assistance
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program. It may also be used to target a specific geographic
area in which to encourage home ownership.
The fees to the City to participate in the Regional MCC Program
include a one time set -up fee, estimated to be approximately
$375 -$500; a fee of approximately $200, which represents the
City's pro -rata share of the cost of a study to document the
higher housing prices in Ventura County, as compared to other
counties land thereby justify higher housing limits than would
otherwise be authorized); and a program fee of approximately
$300. The County utilizes a consultant who administers the
program, processes the applications, as submitted by lenders, and
reports on program activity to each participating jurisdiction.
The City has no reporting requirements to the County. To
participate in the 1998 allocation, new member cities must
approve a cooperative agreement by December 1, 1997, in order for
the County to meet a December 15, 1997, application deadline.
(See Attachment "A" - "Cooperative Agreement Between the County
of Ventura and the City of Moorpark for Participation in the
Ventura County Regional Mortgage Credit Certificate Program ".)
Among other provisions, this agreement allows for the
reallocation of any unused portion of the City's original
allocation one year after funds become available to the City.
Under the MCC Program, a first -time buyer is one who has not had
an ownership interest in a principal residence within the last
three years. The buyer applies for the MCC at the time
application is made for a mortgage loan. The lender submits
application for the MCC to the consultant for this program. If
the MCC is approved, an MCC Commitment is forwarded to the
lender. (An MCC will not be approved if the buyer is obtaining
100% financing.) This Commitment assures the lender of the
extended mortgage capability now available to the home buyer.
The tax credit, translated into additional income, is actually
used in underwriting the loan.
A buyer who receives an MCC may be subject to a recapture tax if
the house is sold within nine years. This is based on several
factors, including the length of time the buyer resides in the
home and the buyer's income at the time of the sale. Several
conditions can exempt the buyer from this recapture tax,
including a sale due to death or divorce, and insufficient
increase in the buyer's income between the time of the purchase
of the home and its sale.
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Recommendation
(1) Approve Cooperative Agreement Between the County of
Ventura and the City of Moorpark for Participation in the Ventura
County Regional Mortgage Credit Certificate Program, subject to
final language approval of the City Attorney and City Manager.
(2) Adopt Resolution 97- , to amend the FY 1997 -98 Budget
by appropriating $1,000 from the City's Housing Rehabilitation
Costs (221.504.0000.000.9402) to Other Contractual Services
(221.504.0000.000.9191).
Attachment A - Cooperative Agreement Between the County of
Ventura and the City of Moorpark for Participation in the
Ventura County Regional Mortgage Credit Certificate Program
Attachment B - Resolution No. 97--
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�.NOV- 7 -97 FRI 12 :11 PM VENTURA CO CHIEF ADMIN FAX NO. 8056545106 P.�II
. �-f - �-c��h r� e ►�-�- �' NOV - 7 1997
City Of Moorpark
COOPERATIVE AGREEMENT BETWEEN Economic Deve'.oprnent Dept.
THE COUNTY OF VENTURA AND THE
CITY OF
THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement ") is hereby made and
entered into as of , 19 by and between the County of
Ventura, a legal subdivision and body corporate and politic of the State of California (the
"County'), and the City of , a municipal corporation (the "City "). This
agreement is entered into pursuant to the provisions of the Joint Exercise of Powers Act
(Chapter 5 of Title 1 of Division 7 of the Government Code.)
WITNESSETH
WHEREAS, 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 County, pursuant to the Act, has established the Program, and has
determined to cooperate with the City pursuant to the Act and in the exercise of its powers
under the Act for purposes of the Program; 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:
SECTLON 1. The words and phrases of this Cooperative Agreement shall, for all
purposes hereof unless otherwise defines 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 therefor pursuant to the Act and the Code from
time to time to the extent that the County receives allocations from the California Debt Limit
Association Committee ( "CDLAC'). 000%.2?
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SECTION 3. The City represents and warrants to the County that: (i) the City is in
the process of updating its general plan in conformance with the provisions of the Planning
and Zoning Law of the State of California (Government code Sections 65000 et seq.), (ii)
said update includes a land use element as required by Govemment Code Section 65302,
and (iii) the Program complies with the existing and proposed land use and housing
elements.
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 the
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 make any deposit required by CDLAC for an
application for a mortgage credit certificate allocation. In the event of forfeiture of any
portion of the deposit required by CDLAC, the City agrees to provide its proportionate
share of such forfeited deposit. The City further agrees to pay timely when invoiced by the
County its proportionate share (based upon the number of participants in the Program) of
administration costs applicable to each allocation received from CDLAC, which share is
estimated not to exceed $1,000 per allocation period.
SECTION 6. 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 7. 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 8. This Cooperative Agreement may be amended by one or more
supplemental agreements executed by the County and City at any time, except that no
such amendments or supplemental 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 9. This Cooperation Agreement shall expire and be of no further force
and effect upon any of the following: 1) agreement of the parties hereto; 2) within 30 days
after expiration of MCC issuing authority, or 3) giving by any party of 180 days written
notice to the other parties, except that no such termination shall adversely affect the rights
of the owners of any mortgage credit certificates issued by the County in connection with
the Program.
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NOV- 7 -97 FRI 12 12 PM VENTURA CO CHIEF ADMIN FAX NO, 8056545106 P, 0
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.
COUNTY OF VENTURA
APPROVED AS TO FORM:
County Counsel
Chief Administrative Officer
M.L. Koester
CITY OF '
By:
City Manager
(SEAL)
ATTEST:
City Clerk
APPROVED AS TO FORM
City Attorney
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