1987-131-Enter Into A Cooperative Agreement With The County Of Santa Clara For Participation In The Mortgage Credit Certificate ProgramRESOLUTION NO, 1987_131
RESOLUTION AUTHORIZING THE TOWN MANAGER TO ENTER INTO A
COOPERATIVE AGREEMENT WITH THE COUNTY OF SANTA CLARA
FOR PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM
WHEREAS, there is a continued need for affordable homeownership opportunities
within the Town of Los Gatos, 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;
NOW THEREFORE, BE IT RESOLVED that the Town Council does hereby authorize the Town
Manager to enter into a Cooperative Agreement with the County of Santa Clara for
participation in the Mortgage Credit Certificate Program.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos this day of
vote: °— ? — y September , 1987 by the following
AYES: COUNCILIIEM[ERS: Joanne Benjamin, Eric D. Carlson,
Thomas J. Ferrito, Robert L. Hamilton & Mayor Brent N. Ventura
NOES: COUNCIL14EMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILHEMBERS: None
SIGNED BY:
ATTEST:
CLER' OF THE TOWFd OF LOS GATE
COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF
SANTA CLARA AND THE TOWN OF LOS GATOS
THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement ") is made and
entered into as of N 0 V , 4 IJ87.1987 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 Town of Los Gatos (the
"Town "), a municipal corporation of the State of California.
WITNESSETH:
WHEREAS, the Tax Reform Act of 1984 established the Mortgage
Credit Certificate Program (hereinafter referred to as "MCC Program ")
as a means of assisting qualified individuals with the acquisition of
new and existing single family housing; and
WHEREAS, the County and the Town have heretofore determined to
engage in an MCC Program pursuant to Chapters 1399, Statutes of 1985
Section 50197, et sea of the Health and Safety Code of the State of
California (the l' c_t'1*) in order to assist individual home purchasers
in the Town to afford both new and existing homes vithin the statutory
limits as provided for in said Act; and
WHEREAS, in furtherance of the 1CC Program the Town Council
authorized the application to the State of California Hortgage Bond
Allocation Committee (MBAC) in the name of the Town of Los Gatos for a
mortgage bond allocation in the amount of $20,000,000 to be traded for
authority to issue Mortgage Credit Certificates in a face amount of
$5,000,000 (based upon the 4:1 trade -in value of bond allocation); and
WHEREAS, the Town application for the MCC Program subsequently
approved by the MBAC on August 26, 1987, and
WHEREAS, the County Housing Bond Coordinator is administrating a
County wide MCC Program with support from the San Jose Real Estate
Board to educate potential home buyers and mortgage lenders, to
prepare and review buyer MCC applications, and to disburse Mortgage
Credit Certificates and monitor program status, and
WHEREAS, the Town and County wish to cooperate with one another
pursuant to the Act in the exercise of their powers under the Act for
the purposes of the MCC Program;
NOW, THEREFORE, in consideration of the covenants herein after
provided, the parties hereto agree as follows:
SECTION 1. The words and phrases of this Cooperative Agreement
shall, or alb purposes hereof unless otherwise defined herein, have
the meanings assigned to such words and phrases in the Act.
SECTION 2. The Town represents and warrants to the County that:
(i) t e own as heretofore adopted a general plan for the Town in
conformance with the provisions of the Planning and Zoning Law of the
State of California (Government 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. Administration of the MCC Program for the Town shall
be performed by the County's Housing Bond Coordinator in cooperation
with the San Jose Real Estate Board.
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