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Resolution 1993-44 . . ~ RESOLUTION NO. 93 - 44 RESOLUTION OF THE COUNCIL OF THE CITY OF GILROY RELATING TO AN APPLICATION FOR ALLOCATION OF MORTGAGE CREDIT CERTIFICATE ISSUANCE AUTHORITY. WHEREAS, there 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 Program; 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 $12,000,000 to be traded for authority to issue Mortgage Credit Certificates in a face amount of $3,000,000 (based upon the 4:1 trade-in value of bond allocation); and -1- RESOLUTION NO. 93 - 44 . . .~ 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 thst proof of a Certificate of Deposit be sent with the application pledging the deposit amount equal to one percent of the bond amount requested to assure the State of California the 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 2nd day of August 1993 by the following vote: NOES: COUNCILMEMBERS: GILROY, HALE, KLOECKER, NELSON, ROWLISON, VALDEZ and GAGE. COUNCILMEMBERS: None AYES: ABSENT: COUNCILMEMBERS: None APP/1ED: u...fJj~ Mayor ATTA: ~~ -2- RESOLUTION NO. 93-44 . . . / I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 93-44 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 2nd day of August , 19~, 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 3rd day of August ,1993. City (Seal)