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
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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.