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CC Resolution 7870RESOLUTION NO. 7870 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL, CALIFORNIA ENTERING INTO A COOPERATIVE AGREEMENT WITH THE COUNTY OF SANTA CLARA, CALIFORNIA FOR ADMINISTRATION OF A MORTGAGE CREDIT CERTIFICATE PROGRAM AND AIJDCATION OF MORTGAGE CREDIT CERTIFICATES WHEREAS, there is a continued need for affordable homeownership opportunities within the City of Campbell; and WHEREAS, issuance of Mortgage Credit Certificates (MCCs) in the County's current MCC Program to individual home purchasers has been shown to enhance the affordability of both new and existing homes within the statutory limits; and WHEREAS, the City of Campbell has previously entered into a cooperative agreement with the County of Santa Clara for the purpose of participating in a Mortgage Credit Certificate program; and WHEREAS, the City of Campbell committed 128 certificates for which over 50% of those households participating had incomes under 80% of the County median income; and WHEREAS, the City of Campbell wishes to continue this cooperative arrangement for the purpose of allocating mortgage credit certificates; and WHEREAS, Congress and the President have seen fit to extend the MCC Program through September 30, 1990. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby authorizes the Mayor to execute the attached Cooperative Agreement, Exhibit A, with the County of Santa Clara for the administration of the mortgage credit certificate program; and BE IT FURTHER RESOLVED that the City Council of the City of Campbell hereby submits with the Cooperative Agreement a pledge of $60,000 which is 1% of the Mortgage Revenue Bond amount to assure the State that the City of Campbell will utilize the Allocations requested; and BE IT FURTHER RESOLVED that the City Council of the City of Campbell hereby designates 40% of its MCC's to households earning under 80% of the County median income. PASSED AND ADOPTED this 16th day of January 1990, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: AT�T Barbara Olsasky, City Clerk KOTOWSKI, WATSON, CONANT, BURR, ASHWORTH NONE NONE N J. ASHWORTH, MAYOR �".�� 'i.' � fit} �{Y '� �%� � }�.: •s3 � MR1$�srt� �4. -yc ea` ,�" Y 1q.. r.T .. ,.�N �� � � s `? l ���,^� '� �'w A���.s�t ;�v's =x' x'P,j, �t $., �# �X��� _ h•� � •:� ''�,pg;� �� -:' �':.,F �., .�.. ,.- ✓•: - �' SSA. 4 . 1: ,: a a .. � z _� � y •�-;. "�^.� f��, 5:�3'� a r{ fir'_ a - 9 ��,� a , .ri�S 7 n 4 { Jr r 41 n. 5 s Tk %A ;cAF,", y S a"u �' a; i.�e } `? r y.:- ✓ y.+r3t'�'!' �{ _Au V ,ems r.. ., .Yx •a. r.. as ,s j 'a•' �+ r ��s°—Y 71 r` ,-'�-t-- M1j •K`, _ .,��,�e 5� p��.�, �h �.. s s {hn a.: r� jt•�,� } +t7 ¢�� � r�� '. * 2 Y A, ef,.. jX x i a. _ `�ac..Fn . +:, �_rc ...,as. t'x..�'ae!r3asY., .'�L ...K._-. .-,., ,aa..�.,ei:�Ga•�#?�sa.'�.A. ; ..... - ::.,�3*,�'.zi.'Sr:... x.wr._... �_ V,I EXHIBIT A COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF SANTA CLARA AND THE CITY OF CAMPBETJ THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is made and entered into as of JANUARY 16 , 1990 , by and between the COUNTY OF SANTA CLARA, a legal subdivision and body corporate and politic of the State of California (the "County"), and the City of CAMPBELL , a municipal corporation of the State of California (the "City"). WITNESSETH: WHEREAS, the Tax Reform Act of 1984 established the Mortgage Credit Certif- icate Program (hereinafter referred to as "MCC Program") as a means of assisting qualified individuals with the acquisition of new and exisitng single family housing; and WHEREAS, the County and the City have heretofore determined to engage in an MCC Program pursuant to Chapters 1399, Statutes of 1985 Section 50197, et seq of the Health and Safety Code of the State of California (the "Act") in order to assist indi- vidual home purchasers in the County to afford both new and existing homes within the statutory limits as provided for in said Act; and WHEREAS, in furtherance of the MCC Program, the City Council has authorized the County to apply to the State of California Debt Limit Allocation Committee (CDLAC) in the name of the City of CAMPBELL for a mortgage bond allocation in the amount of $ 6.000,000 to be traded for authority to issue Mortgage Credit Certificates in a face amount of $1,500,000 (based upon the 4:1 trade-in value of bond allocation); and WHEREAS, it is expected that the City's application for the MCC Program will be subsequently approved by the CDLAC in 1990; and WHEREAS, the County Housing Bond Coordinator is administering a County- wide MCC Program; and WHEREAS, the City and the County wish to cooperate with one another pur- suant to the Act in the exercise of their powers under the Act for the purposes of the MCC Program; WHEREAS, the County will be operating an MCC Program in the County, and the City desires that the Program be applicable to otherwise eligible real property in the City; NOW, THEREFORE, in consideration of the 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 meanings assigned to such words and phrases in the Act. SECTION 2. 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 and Zoning Law of the State of California (Govemment Code Sections 65000 et seq.), (ii) said general plan includes a land use element and a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 3. The County shall continue to staff a program for the effective administration of the MCC program within the geographical boundaries of the County. The County shall continue its cooperation with local real estate -and lending institutions in order to maintain their participation in securing applications from eligible applicants for review and approval by County representatives on behalf of the County and the City. SECTION 4. If, during the term of this agreement, the City determines that it cannot utilize all of the MCC allocation provided by the CDLAC, the City will have the option to assign a portion of the allocation to the County for redistribution among the County and other participating cities. SECTION 5. This agreement may be terminated by either party upon 90 days written notice delivered to the other party. The term of this agreement shall extend until such termination by written notice. SECTION 6. The City agrees to undertake such further proceedings or actions as may be necessary to carry out the terms and intent of this agreement as expressed in the recitals hereto; provided, however, that nothing herein shall require the City to appropriate any funds to the County for services under this agreement. Funds for the administration of the program shall be derived by the County from the application fee paid by MCC applications administered by the County. These fees shall be collected and retained by the County in all cases administered by the County including those where the City's MCC allocation is debited. SECTION 7. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements with other municipal corporations 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 the City at any time. SECTION 9. Nothing contained herein shall be interpreted to impose a relation- ship of partners or joint ventures between the City and the County. SECTION 10. The County agrees to indemnify, defend and hold the City, its officers, attorneys, employees and agents harmless against any and all claims, dam- ages or causes of action arising from any act or omission on the part of the County, its officers, attorneys, employees and agents. IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly author- ized, and their official seals to be hereto affixed, all as of the day first above written. (SEAL) ATTEST: ATTEST: APPROVED AS TO FORM AND LEGALITY: County Counsel (SEAL) MCC-COOP-AG(11/89) COUNTY OF SANTA CLARA Chairperson of the Board of Supervisors Clerk, Board of Supervisors City of CAr�FpLL L By Mayor � ARP OVE S TO OR City Attorney DEPOSIT CERTIFICATION FORM California Debt Limit Allocation Committee 915 Capitol Mall, Room 280 P.O. Box 942809 Sacramento, CA 94809-0001 (916) 324-0310 CERTIFICATION OF THE CHIEF ADMINISTRATIVE OFFICER OF THE CITY OF CA"BELL (Applicant) REGARDING AN APPLICATION FOR PRIVATE ACTIVITY BOND ALLOCATION In connection with the following private activity bond allocation application: APPLICANT: CITY of CAMPBELL ISSUER: COUNTY OF SAWA CLARA AMOUNT: $ 6, 000, 000 PROJECT NAME/PROGRAM TYPE: Single family new/existing the undersigned officer of the CITY OF CAMPBELL (Applicant) hereby certifies as follows: 1. I, KEVIN C. DUGGAN (Name), am the Chief Administrative Officer of the _ CITY OF CAMPBELL (Applicant). 2. The CITY OF CAMPBELL (Applicant) has collected and has placed on deposit in an account in a financial institution, $ 60,000.00 which equals one percent of the amount of private activity bond allocation being requested. 3. The deposit will be held until receipt of a written notification from the California Debt Limit Allocation Committee that the deposit is authorized to be released or forfeited, in whole or in part, pursuant to the procedures of the Committee. 4. To the extent that any portion of the deposit is forfeited, the applicant agrees to send the required amount in a check made payable to the "California Debt Limit Allocation Committee." Such check shall be mailed to the Committee at the address noted above immediately upon receipt of the written notification from the Committee. 5. The undersigned has read the procedures of the California Debt Limit Allocation Committee and understands that if any portion of an approved private activity bond allocation is not used for the purpose for which it was granted, then the corresponding portion of the performance deposit must be forfeited to the Committee. Da ure GENERAL INSTRUCTIONS FOR DEPOSIT CERTIFICATION FORM 1. Each applicant for a private activity bond allocation must submit evidence to the Committee that it has on deposit in an account in a financial institution, an amount equal to one percent of the amount of private activity bond allocation being requested. The Committee's procedures provide for certain alternatives (e.g., a letter of credit) to a deposit in a financial institution. Please consult the procedures for information concerning acceptable alternatives. 2. The Deposit Certification Form (see other side) must be filed with the Committee at the same time the application is submitted. 3. The Committee will authorize release or require forfeiture of the deposit as follows: a. If the Committee provides no allocation, or an amount lower than requested by the applicant, the Committee will authorize release of a pro rats amount of the deposit so that only one percent of the allocation granted is on deposit; b. If the applicant (or the issuer, if different from the applicant) uses only a portion of the allocation granted to issue bonds (or to convert to mortgage credit certificate authority and to issue at least one mortgage credit certificate), the Committee will authorize the release of a pro rats portion of the deposit and require forfeiture of the remainder; c. If the applicant (or the issuer, if different from the applicant), does not use any of the allocation to issue bonds (or to convert to mortgage credit certificate authority and issue at least one mortgage credit certificate), the entire deposit will be forfeited; and d. If the applicant withdraws the application in writing prior to the Committee's consideration of the application, the performance deposit shall be automatically released. 4. The Committee may waive the forfeiture of the performance deposit if substantially all the allocation granted was used for the purpose for which it was granted or if the failure to issue bonds (or to convert to mortgage credit certificate authority and to issue at least one mortgage credit certificate) can be shown to be the result of factors which could not have been anticipated and which were outside the control of the proposed issuer, bond counsel, underwriter(s), credit provider, developer or company, and other parties to the proposed issuance. Notwithstanding the preceding, the performance deposit shall be subject to release if at least 95% of the allocation granted is used and the amount of the performance deposit otherwise subject to forfeiture does not exceed $5,000, as provided in the Committee's procedures. (NOTE: The "95%* release provision is subject to the Committee's approval as part of the 1990 procedures.) 5. If the applicant (or the issuer if different from the applicant), forfeits all or a part of a deposit pursuant to the procedures of the Committee, the applicant shall send the required amount to the Committee in a check made payable to the California Debt Limit Allocation Committee. Amounts received will be deposited in the Committee's Fund.