Resolution 1992-01
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RESOLUTION NO. 92 - 1
RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY RELATING TO AN APPLICATION FOR
ALLOCATION OF MORTGAGE CREDIT CERTIFICATE ISSUANCE AUTfIDRITY.
WHEREAS, here is a continued need for affordable homeownership
opportunities within the City of Gilroy particularly for households at the lower
end of the purchasing spectrum; and
WHEREAS, issuance of Mortgage Credit Certificates to individual home
purchasers would enhance the affordability of both new and existing homes within
the statutory limits; and
WHEREAS, Mortgage Credit Certificates are of comparable value to the
subsidy provided by Mortgage Revenue Bonds with very few associated costs; and
WHEREAS, Congress and the President of the United States have seen fit to
extend the MCC Proram; and
WHEREAS, the Mortgage Credit Certificate program allows Joint Exercise of
Powers and Cooperative Agreements for administration and strength of proposal.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy
approves the Joint Exercise of Powers Agreement and Cooperative Agreement with the
County of Santa Clara; and
BE IT FURTHER RESOLVED by the City Council of the City of Gilroy that the
County of Santa Clara's Housing Bond Coordinator is hereby authorized to act under
the Joint Exercise of Powers Agreement to make immediate application to the
California Debt Limit Allocation Committee in the name of the City of Gilroy for a
mortgage bond allocation in the amount of $3,600,000. to be traded for authority to
issue Mortgage Credit Certificates in a face amount of $900,000. (based upon the
4:1 trade-in value of bond allocation); and
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RESOLUTION NO. 92 - 1
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BE IT FURTHER RESOLVED by the City Council of the City of Gilroy that the
executed Cooperative Agreement be sent with the application to describe the
cooperative relationship between the County of Santa Clara and the City of Gilroy,
such relationship allowing the City of Gilroy to transfer portions of the
allocation to the County at the City of Gilroy's discretion if the allocation is
not used by the City; and
BE IT FURTHER RESOLVED that proof of a Certificate of Deposit be sent with
the application pledging the deposit amount equal to one percent (1%) of the bond
amount requested to assure the State of California the MCC Program will utilize the
Allocations requested.
PASSED AND ADOPTED, at a regular meeting of the City Council of the City
of Gilroy this 6th day of January, 1992 by the following vote:
AYES:
COUNCILMEMBERS: GILROY, HALE, KLOECKER, NELSON, ROWLISON, VALDEZ
and GAGE.
NOES:
COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
APPRO VED:
_Jj~ 1--~ {L_~_
Mayor t/7::"
ATTEST:
t~LU:l~~~ -
City Clerk ---?
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RESOLUTION NO. 92 - 1
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 92-1
is an original
resolution, duly adopted by the Council of the City of Gilroy at a special
meeting of said Council held on the
6th
day of ~~ry _
1992 ,
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this
7th
day of
January
19 92.
4~t
City Clerk of the City of Gilroy
(Seal)