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01-0220_ORANGE, COUNTY OF_Cooperative Agreement�,rr r,�) MEMORANDUM TO: Debbie Dirnu, Housing Consultant FROM: Cheryl Johnson, City Clerk 9 DATE: February 21, 2001 SUBJECT: Mortgage Credit Certificate Program At their meeting of February 20, 2001, the City Council adopted Resolution No. 01-2-20-3, which approved the City's continued participation in the County's Mortgage Credit Certificate Program. A certified copy of the resolution is enclosed for your use in notifying the County. A copy is also enclosed for your files. Enclosure cc: Planning Director (with enclosure) 0 0 8. ADOPTION OF A RESOLUTION AUTHORIZING CONTINUED CITY PARTICIPATION IN THE COUNTY OF ORANGE'S MORTGAGE CREDIT CERTIFICATE PROGRAM FOR FIRST TIME HOMEBUYERS (600.50) As set forth in the Report dated February 20, 2001 from the Planning Director, the following resolution was adopted: RESOLUTION NO 01-2-20-3, CONTINUED PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST-TIME HOMEBUYERS 9. DENIAL OF CLAIMS BY CLAIMANTS LAM, TRAVIS AND CURTIS (170.10) As set forth in the Report dated February 20, 2001, from the City Attorney, the claims filed by Maurice Lam, Linda Travis, and John Curtis were denied. PUBLIC HEARINGS Proposal: Consideration of a request for temporary street closures and issuance of a parade permit in conjunction with the Annual Swallows Day Parade and Mercado scheduled for Saturday, March 24, 2001 Applicant: San Juan Capistrano Fiesta Association, P. O. Box 532, San Juan Capistrano, CA 92693 Written Communications: Report dated February 20, 2001, from the Engineering and Building Director, forwarding maps of the parade route and necessary street closures for both the parade and Mercado to be held on Saturday, March 24, 2001. The parade will begin at 11:00 a.m., with street closures beginning at 6:00 a.m. The Mercado will be held between the hours of 8:00 a.m. to 5:30 p.m. and require street closures until approximately 8:00 p.m. William Huber, Engineering Director, gave an oral presentation outlining the staff report. Public Hearing: Notice having been given as required by law, Mayor Hart opened the Public Hearing and, there being no response closed the Hearing with the right to re -open at any time. CC Minutes -4- 02/20/01 AGENDA ITEM February 20, 2001 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director SUBJECT: Consideration of Resolution Authorizing Continued City Participation in the County of Orange's Mortgage Credit Certificate Program for First - Time Homebuyers RECOMMENDATION By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers. SITUATION A. Applican City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation In 1993, the County invited the City of San Juan Capistrano to participate in a mortgage credit certificate (MCC) allocation program which is an alternative to mortgage revenue bond -backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first-time home buyers, this program will provide a federal tax credit, which increases an MCC holder's spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single-family detached homes, condominiums or townhomes. On October 19, 1993 the City entered into a Cooperative Agreement with the County. On January 12, 2001, the County requested that the City Council take an action by March 9, 2001 to maintain its membership with the program (Attachment 2). City staff notified the County (Attachment 3) that the earliest date the resolution could be scheduled for City Council consideration was February 20, 2001. The County requested that the City forward the resolution following the February 20th meeting. Staff recommends the City Council adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers. FOR CIN COUNCIL AGEN� 3 g Agenda Item -2- February 20, 2001 C. Program Description Under the MCC program, which the County Administrative Office administers, the County issues a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyerto take an annual credit against federal income taxes when preparing his federal income tax return. The maximum amount of credit allowed is twenty percent 20% of annual first mortgage interest paid on the home owner's principal residence. The value of the MCC must be taken into consideration by the mortgage lender or lending institution in underwriting the loan and may be used to adjust the borrower's federal income tax withholding. The certificate reduces the amount of federal income taxes owed, thus increasing the qualified home buyer's "after tax income" to help qualify for a loan and make the monthly mortgage payments. Since 1999, three households in San Juan Capistrano have participated in the County's program. Staff had concerns that households were not taking advantage of the mortgage credit certificates and attributed the lack of participation to the fact that residents may not be aware that such a program exists. To get the word out to the public, staff added information about the program and a contact number on the City's web page. Since placing the information on the web page about six months ago, two households purchased homes in San Juan Capistrano using the Mortgage Credit Certificate Program. Continued participation in the MCC program will assist in implementing goals of the City's Housing Element by providing an assistance program for income -eligible households in acquiring their first home (ownership). COMMISSION/BOARD REVIEW AND RECOMMENDATIONS FINANCIAL CONSIDERATIONS The City will not be required to provide any financial assistance to the County for administration of the MCC program. The County will absorb administrative costs and will coordinate the marketing of the program at no cost to the City. PUBLIC NOTIFICATION A notice is not required for the City to participate in the program. ALTERNATE ACTIONS By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers. RESOLUTION NO. 01-2-20-3 CONTINUED PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST-TIME HOME BUYERS WHEREAS, the City of San Juan Capistrano has been invited to continue its participation with the County of Orange in its Mortgage Certificate Program in order to assist first-time home buyers; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed Mortgage Credit Certificate Program will assist first-time home buyers by providing a 20% federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment. 2. The proposed program will be administered by the County at no cost to the City of San Juan Capistrano. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve the City's continued participation with the County of Orange for a Mortgage Credit Certificate Program to assist first-time home buyers. PASSED, APPROVED, AND ADOPTED this 20`h day of February, 2001. ATTEST: i CITY CLER ajL& =i1jzz WYVT HART, MAYOR -1- 4. RECEIVE AND FILE CASH BALANCES BY FUND FOR JANUARY AND FEBRUARY, 2000 (330.50) The City Treasurer's Report of Cash Fund Balances for the months of January and February, 2000, was ordered received and filed. 5. RECEIVE AND FILE INVESTMENTS AS OF FEBRUARY 29 2000 (350.30) The City Treasurer's Report of Investments as of February 29, 2000, was ordered received and filed. —>6. APPROVAL OF CONTINUED CITY PARTICIPATION IN THE COUNTY'S MORTGAGE CREDIT CERTIFICATE PROGRAM FOR FIRST-TIME HOMEBUYERS (608.50) I As set forth in the Report dated April 4, 2000, from the Planning Director, the following Resolution was adopted authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers: RESOLUTION NO. 00-4-4-1, PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST-TIME HOME BUYERS (COUNTY OF ORANGE) APPROVAL OF CONSTRUCTION LICENSE AGREEMENT- SAN JUAN MESA VERDE HOMEOWNERS ASSOCIATION - LA NOVIA/LA RONDA DRAIN (CIP NO. 129) (600.30) As set forth in the Report dated April 4, 200, from the Engineering and Building Director, the Construction License Agreement with the San Juan Mesa Verde Homeowners Association for a catch basin construction project on the west side curb line of La Novia Avenue immediately upstream of the intersection with Paseo La Ronda, was approved to allow the portion of the project on private property to proceed. The Mayor and City Clerk were authorized to sign the Agreement. The License Agreement will be effective for the period ending with the filing of a Notice of Completion or December 31, 2001, whichever is sooner. S. APPROVAL OF LICENSE AGREEMENT FOR JOINT USE OF ACCESS DRIVEWAY AND PARKING IMPROVEMENTS AT THE INTERSECTION OF CAMINO CAPISTRANO AND JUNIPERO SERRA ROAD (SILVERADO SENIOR LIVING, INC.) (600.30) As set forth in the Report dated April 4, 2000, from the Planning Director, the License Agreementwith Silverado Senior Living, Inc., was approved, providing for reciprocal use of the access driveway and parking improvements. City Council Minutes -3- 4/4/00 0 0 AGENDA ITEM April 4, 2000 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director SUBJECT: Consideration of Continued City Participation in the County of Orange's Mortgage Credit Certificate Program for First -Time Homebuyers By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers. SITUATION A. Applicant City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation In 1993, the County invited the City of San Juan Capistrano to participate in a mortgage credit certificate (MCC) allocation program which is an alternative to mortgage revenue bond -backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first-time home buyers, this program will provide a federal tax credit, which increases an MCC holder's spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single-family detached homes, condominiums or townhomes. On October 19, 1993 the City entered into a Cooperative Agreement with the County. On February 22, 2000, the County requested that the City Council take an action by March 9, 2000 to maintain its membership with the program (Attachment 2). City staff notified the County (Attachment 3) that the earliest date the resolution could be scheduled for City Council consideration was April 4, 2000. The County requested that the City forward the resolution following the April 4th meeting. Staff recommends the City Council adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first- time homebuyers. FOR CITY COUNCIL AGE ✓I 1(p 0 0 Agenda Item -2- April 4, 2000 C. Program Descri tp ion Under the MCC program, which the County Administrative Office administers, the County issues a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyer to take an annual credit against federal income taxes when preparing his federal income tax return. The maximum amount of credit allowed is twenty percent 20% of annual first mortgage interest paid on the home owner's principal residence. The value of the MCC must be taken into consideration by the mortgage lender or lending institution in underwriting the loan and may be used to adjust the borrower's federal income tax withholding. The certificate reduces the amount of federal income taxes owed, thus increasing the qualified home buyer's "after tax income" to help qualify for a loan and make the monthly mortgage payments. Continued participation in the MCC program will assist in implementing goals of the City's Housing Element by providing an assistance program for income -eligible households in acquiring their first home (ownership). COMMISSION/BOARD REVIEW AND RECOMMENDATIONS None. FINANCIAL CONSIDERATIONS The City will not be required to provide any financial assistance to the County for administration of the MCC program. The County will absorb administrative costs and will coordinate the marketing of the program at no cost to the City. PUBLIC NOTIFICATION A notice is not required for the City to participate in the program. ALTERNATE ACTIONS By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers. 2. By motion, adopt a modified resolution discontinuing the City's participation in the MCC program. 3. Continue the item and direct staff to return with further information on specified issues. • Agenda Item -3- April 4, 2000 By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers. Respectfully submitted, Thomas Tomlinson Planning Director Attachments: 1. Draft Resolution 2. Letter from County of Orange requesting Council authorization to participate in MCC 3. Letter to County dated March 7, 2000 COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF SAN JUAN CAPISTRANO THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby made and entered into as of no V. 9L'L- , 19Y3 by and between the County of Orange, a legal subdivision and body corporate and politic of the State of California (the "County"), and the City of San Juan a political subdivision of the State of California (the "City"). Capistrano WITNESSETH WHEREAS, the County has determined to engage in a mortgage credit certificate program (the "Program") pursuant to Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") in connection with the construction and acquisition of homes in the County, all as provided for in said Act; and WHEREAS, the County has determined to finance the Program by the issuance of mortgage credit certificates as authorized by the Internal Revenue Code of 1986 (the "Code"); and WHEREAS, the County, pursuant to the Act, has established the Program, and has determined to cooperate with the City pursuant to the Act and in the exercise of its powers under the Act for purposes of the Program; and WHEREAS, the City has adopted the Program and has determined to cooperate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual 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 same meanings assigned to such words and phrases in the Act. SECTION 2. The County agrees to use its best efforts to undertake the Program and to issue mortgage credit certificates therefor pursuant to the Act and the Code from time to time to the extent that the County receives allocations from the California Debt Limit Allocation Committee ("CDLAC"). SECTION 3. 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 Zoning Law of the State of California (Government Code Sections 65000 et sem.), (ii) said E TO: Lynnette Adolphson, Management Analyst I FROM: Cheryl Johnson, City Clerk 6 DATE: January 20, 1999 SUBJECT: Mortgage Credit Certificate Program Attached is a certified copy of Resolution No. 99-1-19-1, approving the City's continued participation in the Program, for forwarding to the appropriate County personnel. Also attached is a copy of the Resolution for your files. cc: Planning Director (with attachment) It was carried by the 0 0 by Council Member Jones, seconded by Council Member Hart, that the staff lid be accepted for the following items listed on the Consent Calendar. The motion )116wine vote: AYES: Council Members Jones, Swerdlin, Hart, Campbell and \ Mayor Greiner NOES: Nose ABSENT: Non I. MOTION TO READ BY TITLE O The Reading of all Ordinances by title 2. APPROVAL OF CITY COUNCI_L M - approved. The Minutes of the Regular Meeting of December 15, 1 , were approved as submitted. 3. RECEIVE AND FILE WARRANTS OF DECEMBER 30. 199 00.30 The List of Demands dated December 30, 1998, in the total amount of 62,115.36, was ordered received and filed. 4. APPROVAL OF CONTINUED CITY PARTICIPATION IN THE COUNTY'S MORTGAGE CREDIT CERTIFICATE PROGRAM FOR FIRST TIME HOME BUYERS (600.50) As set forth in the Report dated January 19, 1999, from the Planning Director, the following Resolution was adopted authorizing continued participation in a mortgage credit certificate allocation program which will assist first time home buyers by providing a 20% Federal tax credit: RESOLUTION NO. 99-1-19-1, CONTINUED PARTICIPATION IN 5. MORTGAGE CREDIT CERTIFICATE PROGRAM -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS ELEGANCIA) (BRAKKE) (670.501 As set forth in the Report dated January 19, 1999, from the R Building, the following Resolution was adopted accepting a of Engineering and d recreational trail City Council Minutes -3- 1/19/99 0 0 AGENDA ITEM January 19, 1999 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director SUBJECT: Consideration of continued City Participation in the County of Orange's Mortgage Credit Certificate Program for First Time Homebuyers. RECOMMENDATION By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. SITUATION A. Anolicant City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation In 1993 the County invited the City of San Juan Capistrano to participate in a mortgage credit certificate (MCC) allocation program which is an alternative to mortgage revenue bond - backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first time home buyers, this program will provide a federal tax credit, which increases an MCC holder's spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single family detached homes, condominiums or townhomes. On October 19, 1993 the City entered into a Cooperative Agreement with the County. In order to update their files and program, the County requests that the City Council take an action to maintain its membership with the program. Staff recommends that the City Council adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. C. Program Description Under the MCC program, which the County Administrative Office administers, the County issues a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyer to take an annual credit against federal income taxes when preparing his federal income tax return. The maximum amount of credit allowed is twenty percent 20% of annual FOR CITY COUNCIL AGE 0 P Agenda Item -2- January 19, 1999 interest paid. The value of the MCC must be taken into consideration by the mortgage lender or lending institution in underwriting the loan and may be used to adjust the borrower's federal income tax withholding The certificate reduced the amount of federal income taxes owed, thus increasing the qualified home buyer's "after tax income" to help qualify for a loan and make the monthly mortgage payments. Continued participation in the MCC program will assist in implementing goals of the City's Housing Element by providing an assistance program for income eligible households in acquiring their first home (ownership). COMMISSIONBOARD REVIEW AND RECOMMENDATIONS None. FINANCIAL CONSIDERATIONS The City will not be required to provide any financial assistance to the County for administration of the MCC program. The County will absorb administrative costs and will coordinate the marketing of the program with City staff at no cost. PUBLIC NOTIFICATION A notice is not required for the City to participate in the program. ALTERNATE ACTIONS By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers; or, 2. By motion, adopt a modified resolution discontinuing the City's participation in the MCC program; or, Continue the item and direct staff to return with further information on specified issues. 9 Agenda Item -3- January 19, 1999 By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. Respectfully submitted, �,is► �irl/"� Thomas Tomlinson Planning Director Attachments: 1. Draft Resolution 2. Letter from County requesting Council authorization to participate in MCC C:AWPWIN60AWPDOCSVHOUSGWCCAI.CC 0 0 RESOLUTION NO. 99-1-19-1 CONTINUED PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS WHEREAS, the City of San Juan Capistrano has been invited to continue its participation with the County of Orange in its Mortgage Credit Certificate Program in order to assist first time home buyers; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed Mortgage Credit Certificate Program will assist first time home buyers by providing a 20% federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment; and, 2. The proposed program will be administered by the County at no cost to the City of San Juan Capistrano. NOW, THEREFORE, BE IT RESOLVED, that the City Council ofthe City of San Juan Capistrano does hereby approve the City's continued participation with the County of Orange for a Mortgage Credit Certificate Program to assist first time home buyers. PASSED, APPROVED, AND ADOPTED this 19th day of January ,1999. MAYOR ATTEST: CITY CLERK 0 0 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano. California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 99-1-19-1 adopted by the City Council ofthe City of SanJuan Capistrano, California, at a regular meeting thereof held on the 19th day of January 1999, by the following vote: AYES: Council Members Jones, Swerdlin, klart, Campbell and Mayor Greiner NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOFfWONXITY CLERK -2- NOVJ'30-98 IG 22 FROM ,rnP. 1D PAG1: 1/1 L r� t -Y -- • • COUNTY EXECIJTIVF:OFFICE 10 CIVIC CENTER PLAZA, 3" FLOOR SANTA ANA, CA 92701-4062 FAX Date- November 30, 1998 To- Distribution From: Laurie Pernas, Staff Analyst Phone: (714) 834-6009 Fax: (714) 834-3346 Public Finance Pages: Subject: 1999 Mortgage Credit Certificate Program The County plans to submit an application to the California Debt Limit Allocation Committee (CDLAC) by December 15, 1998 to request a portion of the State ceiling of private activity bonds, which will be converted to mortgage credit certificates. For the 1999 Mortgage Credit Certificate (MCC) Program application, the County has agreed to set aside the required one half of one percent of the private activity bond allocation being requested (not to exceed $100,000) Therefore, there is no need for your city to provide a Certificate of Deposit form as was done in previous years Additionally, the County does not intend to apportion the 1999 MCC allocation among the 29 participating titres and the unincorporated areas, but will make the allocation available on a first- come, first-served basis As a result, the reservation letter process will be discontinued. As you may recall, the same process was followed for the 1998 MCC allocation. Affordable Housing Applications, Inc. (AHA) will process all allocation requests, and each city will be credited accordingly. Any city desiring to participate in the County administered 1999 MCC Program must provide the County by December 15, 1998 evidence of its intent to obtain City Council's approval to participate. Such evidence can be in the form of the City Council's agenda. Official certification by the City Council (i e a copy of the executed resolution or the minutes) must be. provided to the County no later than Janus 26, 1999 Receipt of the information requested by the established deadlines is crucial to preparing a competitive 1999 MCC: Program application. If you have any questions, please call me at (714) 8 54-6009. Thank you_ ATTACHMENT 2 • December 4, 1997 Chris Herendeen Orange County Housing Authority Housing and Community Development Department 1770 North Broadway Santa Ana, California 92706 Re: 1998 Application for Mortgage Credit Certificate MEMBERS OF THE CITY COUNCIL COLLENE CAMPBELL JOHN GREINER WYATT HART GIL JONES DAVID M. SWERDLIN CITY MANAGER GEORGESCARBOROUGH At their meeting of December 2, 1997, the City Council of the City of San Juan Capistrano adopted Resolution No. 97-12-2-6, which approves the City's continued participation with the County of Orange in a Mortgage Credit Certificate Program to assist first time home buyers. A certified copy of Resolution No. 97-12-2-6 is enclosed for your information. Please feel free to contact Debbie Dirnu, the City's Housing Consultant, at 443-6330, if you need any further information. Very truly yours, TC CherylJoh o City Clerk Enclosure cc: Planning Director Debbie Dirnu 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 9 (714) 493-1171 y r 0 a 10. 11. consisting of siting, design, preparation of plans and specifications, and monitoring of construction of a replacement domestic water supply well, known as the North Area *mestic Well, on City Open Space near Trabuco Creek and Camino Capistrano, in the of $18,424.00, was approved. As set forth in Repor the following Reso on relating to the Operaft Valley Water District, to fees: : dated December 2, 1997 from the Administrative Services Director, was adopted, in response to Water Advisory Commission concerns L and Maintenance Agreement between the City and the Capistrano require a public hearing when considering the imposition of franchise OF THE CITY OF SAN AFFIIiMING INTENT TO R WHEN CONSIDERING THE THE CITY OF SAN JUAN C7 - A RESOLUTION CAPISTRANO, CALIFORNIA, PUBLIC HEARING PROCESS QN OF FRANCHISE FEES FOR As set forth in the Report dated December 2, 1997 fr the City Attorney, the Reimbursement Agreement with Kaiser Foundation Health Plan, In to provide for pro -rata contributions to Kaiser from future private, commercial developers o develop within the general area and benefit from the water and sewer utility Foundation Health Plan, Inc., was approved. by Kaiser As set forth in the Report dated December 2, 1997 from the Public Works Direct the emergency work, consisting of hand clearing of vegetation in San Juan Creek, in orde to protect City sewer trunk pipelines which was contracted out to meet the Fish and Gam Permit deadline of November 30, 1997, was ratified. I I►IJ • I V.1 0,411 Lai h: •RVI► • AMM • all;:► (61,41 111Y.T11 WA - M : I • ';• ;:u walCa a 1114-110613 M•CIN) l 1• L Km •11 1 As set forth in the Report dated December 2, 1997 from the Planning Director, the following Resolution was adopted authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first-time home buyers: City Council Minutes -7- 12/2/97 • •► 9MQUIRM"MA I W I 6W4 1 LOWNI ORANGE) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS A set forth in the Report dated December 2, 1997, from the Secretary to the Community Servkes Director, the bid for the Community Services Brochure Agreement was awarded to Summ%ee oup, as the lowest qualified bidder, and the Mayor was authorized to execute the agt for a three-year term ending on December 31, 2000, at a total amount of $12,482 editions of an 8" x 103/4" brochure. Proposal: Consideration of a proposed general plan endment, zone change and subdivision tact ^yap for the San Juan Meadows development i the Forster Canyon Planned Community. The General Plan Amendment would redesignate a rtion of the "2.1 open space recreation area" located along Forster Canyon Road near Pacific oint to "5.0 public institutional" for public site dedication; redesignate the "2.1 open space re eation area" adjoining the senior site to " 1.4 medium density residential;" and, establish an ternate trail alignment along Forster Canyon Road linking the Old Forster Canyon Road trail 'th the City's open space lands. The zone change would revise the Forster Canyon Comp hensive Development Plan for development consistency. Significant revisions would inclu changes to the land use plan, revisions to the "Public & Institutional" District Regulations "Village Residential Mesa" District, and a reduction in the "General Open Space." The revise tentative tract map would create 196 single-family, detached residential lots; a lot for the d elopment of 79 single- family, detached condominiums; a lot for the development of 165 s or housing units; 72 acres of open space; eliminate the dedicated public use site located along he north side of La Novia Avenue; and, dedicate a 1.86 -acre public use site along Forster yon Road. The subdivision waiver requests approval to grade manufactured slopes to 1'/z: instead of the Municipal Code -required minimum 2:1 slope for manufactured slopes. Manufa tured slopes would be reinforced with Geogrid, a rigid, plastic material designed to maintain sl o a stability and prevent surficial slope failure. City Council Minutes -8- 12/2/97 0 0 AGENDA ITEM December 2, 1997 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director SUBJECT: Continued City Participation in the County of Orange's Mortgage Credit Certificate Program for First Time Homebuyers. RECOMMENDATION By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. SITUATION A. Applicant City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation In 1993 the County invited the City of San Juan Capistrano to participate in a mortgage credit certificate (MCC) allocation program which is an alternative to mortgage revenue bond - backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first time home buyers, this program will provide a federal tax credit, which increases an MCC holder's spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single family detached homes, condominiums or townhomes. On October 19, 1993 the City entered into a Cooperative Agreement with the County. In order to update their files and program, the County requests that the City Council take an action to maintain its membership with the program. Staff recommends that the City Council adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. C. Program Description Under the MCC program, which the County Administrative Office administers, the County issues a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyer to take an annual credit against federal income taxes when preparing his federal income tax return. The maximum amount of credit allowed is twenty percent 20% of annual FOR CITY COUNCIL AGEPC ^, . �/L 0 0 Agenda Item -2- December 2, 1997 interest paid. The value of the MCC must be taken into consideration by the mortgage lender or lending institution in underwriting the loan and may be used to adjust the borrower's federal income tax withholding The certificate reduced the amount of federal income taxes owed, thus increasing the qualified home buyer's "after tax income" to help qualify for a loan and make the monthly mortgage payments. Continued participation in the MCC program will assist in meeting the requirements of the Housing Element when used in conjunction with the proposed first time homebuyer program adopted this past year by the City. 10_MY 1, 6$3 Lai►l11• 1 11 A 914 RVA 1 01WAKIK1 1 1 PKLOJI FINANCIAL CONSIDERATIONS The City will not be required to provide any financial assistance to the County for administration of the MCC program. The County will absorb administrative costs and will coordinate the marketing of the program with City staff at no cost. PUBLIC NOTIFICATION A notice is not required for the City to participate in the program. ALTERNATE ACTIONS By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers; or, 2. By motion, adopt a modified resolution discontinuing the City's participation in the MCC program; or, Continue the item and direct staff to return with further information on specified issues. 0 U A ends Item -3- December 2, 1997 RECOMMENDATION By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. Respectfully submitted, Thomas Tomlinson Planning Director Attachments: 1. Draft Resolution 2. Letter from County requesting Council authorization to participate in MCC C:AWPWIN60AWPDOCS\HOUSGAMCCAI.CC RESOLUTION NO, 97-12-2-6 1N I 1 '• I'• 1 I tLl, ;_ 1_ L 1_ 1 u 1, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS WHEREAS, the City of San Juan Capistrano has been invited to continue its participation with the County of Orange in its Mongage Certificate Program in order to assist first time home buyers; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed Mortgage Credit Certificate Program will assist first time home buyers by providing a 20% federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment; and, 2. The proposed program will be administered by the County at no cost to the City of San Juan Capistrano. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve the City's continued participation with the County of Orange for a Mortgage Credit Certificate Program to assist first time home buyers. PASSED, APPROVED, AND ADOPTED this Ind day of December 1997. G I L JONES, MAYOR ATTEST: CITY CLERV STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 97-12-2-6 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 2nd day of December 1997, by the following vote: AYES: Council Members Swerdlin, Greiner, Hart, Campbell and Mayor Jones NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOWS014, CITY CLERK -2- 0 0 TY OF A N G E L Drange County Housing Au omy Housing & Community Devebprnent Department November 18, 1997 Mr. Tom Tomlinson, Director, Planning City of, San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92677 SUBJECT: 1998 Application for Mortgage Credit Certificate Dear Mr. Tomlinson: Bob Wilson ,Director Housing & ConvnUnity Devebpment LOCATION 1770 NORTH BROADWAY SANTA ANA, CALIFORNIA 92706 TELEPHONE: (714) 480-2900 FAX: (714) 480-2803 FILE The County of Orange will be submitting an application to the State for a 1998 Mortgage Credit Certificate (MCC) allocation. In order to comply with Bond Counsel requirements, each City needs to provide to my office official certification that your City Council is aware and approves your City's participation in the County Administered 1998 MCC Program. This certification is due to my office no later than December 10, 1997. Please send these documents to Chris Herendeen, your MCC representative at Housing and Community Development. Your City will be notified when the County is awarded an allocation for the 1998 MCC Program. Please continue to refer any interested first-time homebuyers to Chris Herendeen of my staff. Thank you for your cooperation. If you have any questions, please feel free to contact Chris at (714) 480-2904. cc: Tom Watford, Mgr. New Housing Chris Herendeen, New Housing File Sincerely, nr WL W_4� Bob Wilson, Director Housing and Community Development ATTACHMENT 2 Jwa► IRLMNLIW OTWISH III 1961 1776 January 27, 1997 Anna E. Plank Housing and Community Development 1770 North Broadway Santa Ana, California 92706 Re: Mortaaae Credit Certificate Proaram Dear Ms. Plank: MEMBERS OF THE CITY COUNCIL COLLENE CAMPBELL JOHN GREENER MATT HART GIL JONES DAVID M. SWERDLIN CITY MANAGER GEORGESCARBOROUGH At their meeting of January 21, 1997, the City Council of the City of San Juan Capistrano adopted Resolution No. 97-1-21-1, which approves the City's continued participation in the Mortgage Credit Certificate Program. A certified copy of Resolution No. 97-1-21-1 is enclosed for your files. Please feel free to contact Tom Tomlinson, Planning Director, if you have any questions. Very truly yours, Cheryl Johnson City Clerk Enclosure cc: Planning Director 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171 AGENDA ITEM January 21, 1997 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director SUBJECT: Continued City Participation in the County of Orange's Mortgage Credit Certificate Program for First Time Homebuyers. RECOMMENDATION By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. SITUATION A. Applicant City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation In 1993 the County invited the City of San Juan Capistrano to participate in a mortgage credit certificate (MCC) allocation program which is an alternative to mortgage revenue bond - backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first time home buyers, this program will provide a federal tax credit, which increases an MCC holder's spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single family detached homes, condominiums or townhomes. On October 19, 1993 the City entered into a Cooperative Agreement with the County. In order to update their files and program, the County requests that the City Council take an action to maintain its membership with the program. Staff recommends that the City Council adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. C. Program Description Under the MCC program, which the County Administrative Office administers, the County issues a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyer to take an annual credit against federal income taxes when preparing his federal income tax return. The maximum amount of credit allowed is twenty percent 20% of annual FOR CITY COU14CIL RCG:''Lr /� 0 Agenda Item -2- January 21, 1997 interest paid. The value of the MCC must be taken into consideration by the mortgage lender or lending institution in underwriting the loan and may be used to adjust the borrower's federal income tax withholding The certificate reduced the amount of federal income taxes owed, thus increasing the qualified home buyer's "after tax income" to help qualify for a loan and make the monthly mortgage payments. Continued participation in the MCC program will assist in meeting the requirements of the Housing Element when used in conjunction with the proposed first time homebuyer program adopted this past year by the City. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS None. FINANCIAL CONSIDERATIONS The City will not be required to provide any financial assistance to the County for administration of the MCC program. The County will absorb administrative costs and will coordinate the marketing of the program with City staff at no cost. PUBLIC NOTIFICATION A notice is not required for the City to participate in the program. ALTERNATE ACTIONS By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers; or, By motion, adopt a modified resolution discontinuing the City's participation in the MCC program; or, Continue the item and direct staff to return with further information on specified issues. Agenda Item RECOMMENDATION -3- January 21, 1997 By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. Respectfully submitted, Thomas Tomlinson Planning Director Attachments: 1. Draft Resolution 2. Letter from County requesting Council authorization to participate in MCC C:\WPWIN60\WPDOCS\IIOUSG\MCCAI.CC Adbk Ah RESOLUTION NO. 97-1-21-1 :1:_USLIZAM ClicsICA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE CITY'S CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS WHEREAS, the City of San Juan Capistrano has been invited to continue its participation with the County of Orange in its Mortgage Credit Certificate Program in order to assist first time homebuyers; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed Mortgage Credit Certificate Program will assist first time homebuyers by providing a 20% federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment; and, 2. The proposed program will be administered by the County at no cost to the City of San Juan Capistrano. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve the City's continued participation with the County of Orange for a Mortgage Credit Certificate Program to assist first time homebuyers. PASSED, APPROVED, AND ADOPTED this 21st day of January .1997. ATTEST: CITY CLERIV i . i DAVID M. SWIRDLIN, MAYOR -1- • TY C)Fi ANGE F -I ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND REDEVELOPMENT FILE December 30, 1996 Ms. Mary Raskin City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92677 Dear Ms. Raskin: MICHAEL M. RUANE DIRECTOR, EMA DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT LOCATION: 1770 NORTH BROADWAY SANTA ANA, CALIFORNIA 92706 TELEPHONE: (714) 480-2900 FAX: (714) 480-2803 The County of Orange submitted an application to the State of California for a 1997 Mortgage Credit Certificate (MCC) allocation. In order to comply with Bond Counsel requirements, each City needs to submit a signed minute order or resolution approved by the City Council, authorizing continued participation in the MCC Program. Please send these documents to my attention no later than February 7, 1997. Your City will continue to participate under the Housing and Community Development "umbrella", with no administrative cost to your City. I will notify you when the County is awarded an allocation and the 1997 MCC Program is ready to accept applications. Thank you for your cooperation. If you have any questions, please feel free to contact me at (714) 480-2842. IT IM, cc: B. Wilson, Dir., H&CD P. Leaning, Mgr., Adm. Sry T. Watford, Mgr., NHD Sincerely, Anna E. Plank Housing and Community Development ATTACHMENT 2 0 0 County Fire Authority was approved allowing the Board of Directors to determine the number of members elected to the Executive Committee. 12. APPROVAL OF AMENDMENT NO, 5 TO SERRA JOINT POWERS AGREEMENT (600.50) As set forth in the Report dated January 21, 1997, from the Engineering and Building Director, Amendment No. 5 to the SERRA Joint Exercise Powers Agreement Creating the South East Regional Reclamation Authority was approved amending the quorum requirements for the Board of Directors from three quarters to two thirds. �--� 13. RESOLUTION CONTINUING THE CITY'S PARTICIPATION IN THE COUNTY'S MORTGAGE CREDIT CERTIFICATE PROGRAM FOR FIRST- TIME HOMEBUYERS (600.50) It As set forth in the Report dated January 21, 1997, from the Planning Director, the following Resolution was adopted authorizing the City's continued participation in the Mortgage Credit Certificate Program with the County of Orange to offer financial assistance to first-time homebuyers in the purchase of single-family housing: RESOLUTION NO, 97-1-21-1. AUTHORIZATION TO CONTINUE PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING THE CITY'S CONTINUED PARTICIPATION IN MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST-TIME HOMEBUYERS PUBLIC HEARINGS ACCESSORY USE PERMIT TO ALLOW THE SALE OF ALCOHOLIC BEVERAGES - TEA HOUSE ON LOS RIOS_ 31731 LOS RIOS STREET (NICCOLA/RODMAN) (400.30) Council Member Jones noted his abstention in this matter due to a conflict of interest relating to the proximity of his business/residence to the project. Council Member Greiner noted his abstention because of a potential conflict of interest relating to a business interest located within 300 feet of the project. Pr s : Consideration of an application for an Accessory Use Permit to allow the sale of alcoholic beverages at the proposed "Tea House on Los Rios" to be located in the historic Rodman house, 31731 Los Rios Street. City Council Minutes -6- 1/21/97 • /� II(IIIOA,11 I,INll,lll 1961 1776 February 8, 1996 Chris Herendeen Housing and Redevelopment 1770 North Broadway Santa Ana, CA 92706 MEMBERS OF THE CRY COUNCIL COLLENE CAMPBELL WYATT HART GILJONES CAROLYN NASH DAVID SWERDLIN CITY MANAGER GEORGE SCARBOROUGH Re: January 16, 1996 Request for City's participation in the Mortgage Credit Certificate Dear Ms. Herendeen: Please be advised that on February 6, 1996 the City Council authorized San Juan Capistrano's continued participation in the 1996 application for Mortgage Credit Certificate Program. Enclosed is an signed resolution authorizing San Juan Capistrano's involvement in the program. Due to the timeframe of the Council meetings, it would be greatly appreciated if more than two weeks' notice could be provided for future items involving City Council approval. I look forward to working with you on this terrific program aimed at assisting housing opportunities county -wide. Please let me know if any additional information is needed, Cordially, /c�� �� echel e a Wk fence' Planner ML:sh cc: Thomas Tomlinson, Planning Director ✓Cheryl Johnson, City Clerk 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171 0 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO E I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the attached is a true and correct copy of Resolution No. 96-2-6-3, adopted by the City Council of the City of San Juan Capistrano on the 6th day of February, 1996. (SEAL) /1 r� fiv �- Cheryl Johns Ci lerk San Juan Capistrano, California DATED: This 8th day of February, 1996 �t 0 0 RESOLUTION NO. 96-2-6-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS WHEREAS, the City of San Juan Capistrano has been invited to continue its participation with the County of Orange in its Mortgage Certificate Program in order to assist first time home buyers; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed Mortgage Credit Certificate Program will assist first time home buyers by providing a 20% federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment; and, 2. The proposed program will be administered by the County at no cost to the City of San Juan Capistrano. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve the City's continued participation with the County of Orange for a Mortgage Credit Certificate Program to assist first time home buyers. PASSED, APPROVED, AND ADOPTED this 6th day of Fehruaa 1996. WYATTMART, MAYOR ATTEST: CITY CLERK 9 0 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 96-2-6-3 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 6th day of February 1996, by the following vote: AYES: Council Members Jones, Nash, Swerdlin, Campbell and Mayor Hart NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOHNSON, CITY CLERK -2- STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss AFFIDAVIT OF POSTING CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, declare as follows: That I am the duly appointed and qualified City Clerk of the City of San Juan Capistrano; That in compliance with State laws of the State of Caffimia and in further compliance with City Resolution No. 83-12-20-3 and on the 8th day of February 1996, I caused to be posted: RESOLUTION NO. 96-2-6-3 , being A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS in three (3) public places in the City of San Juan Capistrano, to wit: City Hall; Old Fire Station Recreation Complex; Orange County Public Library. CHERYL JOHNSON,CITY CLERK San Juan Capistrano, California 0 0 � 9. REQUEST FOR CONTINUED PARTICIPATION INT MORTGAGE CREDIT . CERTIFICATE PROGRAM FOR FIRST-TIME HOMEBUYERS (COUNTY OF ORANGE/COOPERATIVE AGREEMENT (600.5M T As set forth in the Report dated February 6, 1996, from the Planning Director, the following Resolution was adopted authorizing the City's continued participation in the Mortgage Credit Certificate Program with the County of Orange to assist first-time homebuyers: • RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST-TIME HOMEBUYERS (COUNTY OF ORANGE) The Claim for Damages filed by Arthur S. Frumkin of the law offices of Fox & Frumkin, on behalf of San Juan Golf, Inc., was denied in its entirety, as set forth in the Report dated February 6, 1996, from the City Attorney. FILBLIC 8• :I Council recessed at 8:26 p.m. to convene the San Juan Capistrano Community Redevelopment Agency, and reconvened at 8:30 p.m. as the City Council. • I�r ul .r • r.l 1�1' �1 �r _ • ► ; ►1• • ' C : • ► • 4�1 •.:► • I►rrt :�� I■ •Mull►! •► r a .�1 � •.r LII • a:•u ;u ;: ... Written Cotmnunication: Report dated February 6, 1996, from the City Manager, recommending that consideration of the implementation of the 800 MHz system be continued to the meeting of February 20, 1996, for further evaluation of the governance issue by city managers. City Council Minot= -10. 2,'696 L � D AGENDA ITEM February 6, 1996 TO: George Scarborough, City Manager FROM: Thomas Tomlinson, Planning Director SUBJECT: Continued City Participation in the County of Orange's Mortgage Credit Certificate Program for First Time Homebuyers. RECOMMENDATION By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. SITUATION A. Applicant City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation In 1993 the County invited the City of San Juan Capistrano to participate in a mortgage credit certificate (MCC) allocation program which is an alternative to mortgage revenue bond -backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first time home buyers, this program will provide a federal tax credit, which increases an MCC holder's spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single family detached homes, condominiums or townhomes. On October 19, 1993 the City entered into a Cooperative Agreement with the County. In order to update their files and program, the County requests that the City Council take an action to maintain its membership with the program. Staff recommends that the City Council adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. C. Program Description Under theMCC program, which the County Administrative Office administers, the County issues a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyer to take an annual credit against federal income taxes when preparing his federal income tax return. The maximum amount of credit allowed is twenty percent 20% of annual FOR CITY COUNCIL AGENIJ ry D �L-,1 Agenda Item -2- August 15, 1995 interest paid. The value of the MCC must be taken into consideration by the mortgage lending in underwriting the loan and may be used to adjust the borrower's federal income tax withholding The certificate reduced the amount of federal income taxes owed, thus increasing the qualified home buyers "after tax income" to help qualify for a loan and make the monthly mortgage payments. Continued participation in the MCC program will assist in meeting the requirements of the Housing Element when used in conjunction with the proposed first time homebuyer program (scheduled for separate review on February 20, 1996). COMMISSIONBOARD REVIEW AND RECOMMENDATIONS None. FINANCIAL CONSIDERATIONS The City will not be required to provide any financial assistance of the County for administration of the MCC program. The County will absorb administrative costs and will coordinate the marketing of the program with City staff at no cost. PUBLIC NOTIFICATION A notice is not required for the City to participate in the program. ALTERNATE ACTIONS By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers; or, 2. By motion, adopt a modified resolution discontinuing the City's participation in the MCC program; or, Continue the item and direct staff to return with further information on specified issues. Agenda Item RECOMMENDATION -3- August 15, 1995 By motion, adopt the attached resolution authorizing the City to continue to participate in the Mortgage Credit Certificate Program with the County of Orange to assist first time homebuyers. Respectfully submitted, Thomas Tomlinson Planning Director Attachments: 1. Draft Resolution 2. Letter from County requesting Council authorization to participate in MCC 3. Original Letter from County dated September 23, 1993 regarding City Participation in MCC CAWPWIN60AAP\MCCAI.CC 00, 36 RESOLUTION NO. 96-2-6-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING CONTINUED PARTICIPATION IN THE MORTGAGE CREDIT CERTIFICATE PROGRAM WITH THE COUNTY OF ORANGE FOR FIRST TIME HOME BUYERS WHEREAS, the City of San Juan Capistrano has been invited to continue its participation with the County of Orange in its Mortgage Certificate Program in order to assist first time home buyers; and, WHEREAS, the City Council of the City of San Juan Capistrano finds and determines as follows: 1. The proposed Mortgage Credit Certificate Program will assist first time home buyers by providing a 20% federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment; and, 2. The proposed program will be administered by the County at no cost to the City of San Juan Capistrano. NOW, 'THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve the City's continued participation with the County of Orange for a Mortgage Credit Certificate Program to assist first time home buyers. PASSED, APPROVED: AND ADOPTED this 6th day of February 11996. WYATTYIART, MAYOR ATTEST: CITY CLERk 0 0 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) 1, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 96-2-6-3 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 6th day of February 1996, by the following vote: AYES: Council Members Jones, Nash, Swerdlin, Campbell and Mayor Hart NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOHNSON, CITY CLERK -2- F GE +`�:� ., MICHAEL M. RUANE DIRECTOR, EMA :NVIRONMENTAL MANAGEMENT AGENCY HOUSING AND REDEVELOPMENT January 16, 1996 City of San Juan Capistrano Ms. Mary Raskin 32400 Paseo Adelanto San Juan Capistrano, CA 92677 SUBJECT: 1996 Application for Mortgage Credit Certificate Dear: Ms. Mary Raskin FILE DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT LOCATION: 1770 NORTH BROADWAY SANTA ANA, CALIFORNIA 92706 TELEPHONE: (714) 480-2900 FAX: (714) 480-2803 The County of Orange will be submitting an application to the State for a 1996 Mortgage Credit Certificate (MCC) allocation. In order to comply with Bond Counsel requirements, each City needs to obtain a Certified Minute Order or some type of document signed/and or approved by the City Council, certified by the City Clerk authorizing continued participation in the MCC Program. Please send these documents to my attention no later than February 10, 1996. Your City will continue to participate under the Housing/ Redevelopment "umbrella", with no administrative cost to your City. I will notify you when the County is awarded an allocation and the 1996 MCC Program is ready to accept applications. Thank you for your cooperation. If you have any questions, please feel free to contact me at (714)480-2840. cc: Aniko Sherry, Sec. Chief NH File Sincerely, CL„ Aakn�� Chris Herendeen Housing/ Redevelopment ATTACHMENT 2 A�44;4� • MICHAEL M. RUANE DIRECTOR. EMA Y O F DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT N G E LOCATION 1200 N MAIN STREE? SUITES 600 8 618 SANTA ANA. CALIFORNIA ENVIRONMENTAL MANAGEMENT AGENCY MAILING ADDRESS. U OX 4048 SANTA ANA. CA2702-4048 HOUSING AND REDEVELOPMENT TELEPHONE - (714) 568-4199 FAX (714) 568-4202 FILE September 23, 1993 Mr. Scarborough, City Manager City of San Juan Capistrano 324 Paseo Adelanto San Juan Capistrano, CA 92675 Subject: County of Orange Mortgage Credit Certificate Program Dear Mr. Scarbough: The County of Orange will apply to the State for a Mortgage Credit Certificate (MCC) allocation. If we are successful in receiving an allocation, we would like to invite your City, as a participating City in the HUD sponsored County of orange Urban County Program, to participate in the County's MCC Program. The MCC Program is an alternative to mortgage revenue bond -backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first-time home buyers, this program will provide a federal tax credit, which increases an MCC -holders spendable income ("take-home pay") thereby increasing the ability of the MCC -holder to afford a mortgage payment. The certificate can be used for single-family detached homes, condominiums, or townhomes. Under the subject program, which the County Administrative Office administers, the County would issue a certificate to a qualified home buyer authorizing that home buyer to take an annual credit against federal income taxes when preparing his or her federal income tax return. The maximum amount of credit allowed is twenty percent (20%) of the annual interest paid. The value of the mortgage credit certificate must be taken into consideration by the mortgage lender in underwriting the loan and may be used to adjust the borrower's federal income tax withholding. The certificate reduces the amount of federal income taxes owed, thus increasing the qualified home buyers after-tax income to help qualify for a loan and make the monthly mortgage payments. In conjunction with the MCC Program, the County intends to include a component that offers moderate and low-income applicants assistance with their down -payment for purchases in ATTACHMENT 3 • County of Orange MCC Program Page 2 the unincorporated areas not to The down -payment assistance will deferred payment loan. w exceed $10,000 per household. most likely be in the form of a If your City elects to participate with the County in the MCC Program and would also like to provide down -payment assistance to residents and/or buyers purchasing a home in your City, the County will accomodate your request to reprogram HOME funds allocated to your City. Cities participating in this program under the County's allocation will not be required to provide the County any financial assistance to administer the program. The County will absorb all administrative costs and will coordinate the marketing of the program at no cost to the Cities. If your City would like to participate in this program, please complete and return the attached "Information Sheet" to our office by October 8, 1993. In addition, please present the attached Cooperative Agreement to your City Council for their approval and return the Agreement to our office not later than October 25, 1993. Should you have any questions, please contact Tom Watford at (714) 571-5683. Very truly yours, ai�j � i" hongchai Pusa at, Director (911*11ousing and Redevelopment TW:ch5AW7-39.1 Attachment 0 �,s� munanw mmuu 1961 1776 October 22, 1993 Mr. Tom Watford Housing and Redevelopment County of Orange P. O.Box 4048 Santa Ana, California 92702-4048 Re: Mortgage Credit Certificate Program Dear Mr. Watford: MEMBERS OF THE CITY COUNCIL COLLENE CAMPBELL GARY L. HAUSDORFER GIL JONES CAROLYN NASH JEFF VASQUEZ CITY MANAGER GEORGE SCARBOROUGH At its meeting of October 19, 1993, the City Council of the City of San Juan Capistrano approved the City's participation in a Mortgage Credit Certificate allocation program. Attached for your files is a certified copy of Resolution No. 93-10-19-6, which approved the Cooperative Agreement between the City and the County for this program. Two copies of the Agreement are enclosed. Upon approval of the Board of Supervisors, please return one fully -executed copy to this office. Thank you for your cooperation. If we can be of further assistance, please call. Ve truly yours, *_��� Cheryl Johns City Clerk Enclosure cc: Director of Planning (with resolution/agreement) Mary Raskin (with resolution/agreement) 32400 PASEO ADELANTO, SAN JUAN CAPISTRANO, CALIFORNIA 92675 0 (714) 493-1171 0 0 Modification which required the applicant to construct a sidewalk along the north side of the property fronting Via Escolar. The applicant appealed this condition because of cost, gaps between portions of the sidewalk, and the usefulness of the sidewalk. Staff recommended that the appeal be continued to allow staff to work with the applicant on resolving the sidewalk issue. Continuation of Item: It was moved by Council Member Hausdorfer, seconded by Council Member Campbell, and unanimously carried that this item be continued to the meeting of November 2, 1993. 2. REQUEST FOR APPROVAL OF COOPERATIVE AGREEMENT FOR MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM. AFFORDABLE HOUSING FOR FIRST- TIME BUYERS (COUNTY OF ORANGE) (600.50) Written Communication: T Report dated October 19, 1993, from the Planning Director, recommending that the City enter into a Cooperative Agreement with the County to participate in a Mortgage Credit Certificate Program which would provide assistance for first-time home buyers, at no cost to the City. The program would provide a federal tax credit, which would increase a Mortgage Credit Certificate holder's spendable income and ability to afford a mortgage payment for single-family detached homes, condominiums, or townhomes. The City would also have the option, under this Agreement, to provide down payment assistance to residents and/or buyers purchasing a home in San Juan Capistrano. Participation in this program would assist the City in meeting the requirements of the Housing Element and the use of the 20% set-aside funds for the benefit of low- and moderate -income residents and could be integrated into the Citys Neighborhood Preservation Program. Adoption of Resolution Approving the Cooperative Agreement with the County for Participation in a Mortgage Credit Certificate Program: It was moved by Council Member Nash, seconded by Council Member Hausdorfer, that the following Resolution be adopted: RESOLUTION NO. 93-10-19-6. APPROVAL OF COOPERATIVE AGREEMENT FOR MORTGAGE CREDIT CERTIFICATE PROGRAM FOR FIRST TIME HOMEBUYERS (COUNTY OF ORANGE) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING A COOPERATIVE AGREEMENT WITH THE COUNTY OF ORANGE FOR A MORTGAGE CREDIT CERTIFICATE PROGRAM TO ASSIST FIRST-TIME HOMEBUYERS The motion carried by the following vote: AYES: Council Members Campbell, Hausdorfer, Nash, Vasquez, and Mayor Jones NOES: None ABSENT: None 3. FORMATION OF COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND HOME PARTICIPATION PROGRAM - FISCAL YEAR 1994-95 APPLICATION COMMITTEE (480.20) Written Communication: Report dated October 19, 1993, from the Planning Director, recommending that a Community Development Block Grant Committee be formed to evaluate and recommend projects for the Community Development Block Grant application for fiscal year 1994.95. The Committee is to be made City Council Minutes -8- 10/19/93 0 AGENDA ITEM 0 October 19, 1993 To: George Scarborough, City Manager PROM: Thomas Tomlinson, Planning Director SUBJECT: Contract with the County of Orange for a Mortgage Credit Certificate Program for first time homebuyers. By motion, adopt the attached resolution approving the Cooperative Agreement between the County of Orange and the City of San Juan Capistrano for participation in a Mortgage Credit Certificate Program to assist first time homebuyers. ,SITUATION A. Applicant/Property Owner City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 B. Summary and Recommendation The County has invited the City of San Juan Capistrano to participate in a Mortgage Credit Certificate (MCC) allocation program. The MCC program is an alternative to mortgage revenue bond -backed financing as a means of providing assistance for the purchase of single-family housing. Designed to benefit first-time home buyers, this program will provide a federal tax credit, which increases an MCC holders spendable income (take home pay), thereby increasing the ability of the MCC holder to afford a mortgage payment. The certificates can be used for single family detached homes, condominiums or townhomes. Under this program, which the County Administrative Office administers, the County would issue a certificate to a qualified home buyer (based on annual gross income) authorizing that home buyer to take an annual credit against federal income taxes when preparing his/her federal income tax return. The maximum amount of credit allowed is twenty percent (20%) of the annual interest paid. The value of the MCC must be taken into consideration by the mortgage lender in underwriting the loan and may be used to adjust the borrower's federal income tax withholding. The certificate reduces the amount of federal income taxes owed, thus increasing the qualified home buyers after tax income to help qualify for a loan and make the monthly mortgage payments. FOR CITY COUNCIL AGEN CZL 0 0 Agenda Item October 19, 1993 Another option available to the City in conjunction with this program, is to provide down payment assistance to residents and/or buyers purchasing a home in the City. This can be accomplished by reprogramming HOME funds allocated to the City or by structuring a program utilizing the 20% set aside funds, as long as the program benefits low and moderate income people. Participation in the MCC program and a down payment assistance program will assist in meeting the requirements of the Housing Element and the use of the 20% set aside fund for the benefit of low and moderate income residents. More specifically, such a program can be integrated into the City's Neighborhood Preservation Program. City staff time spent administering these programs will be able to be billed directly to the 20% set aside fund. Staff recommends approval of the Cooperative Agreement to participate in the MCC program with the County of Orange (attachment 1). COMMISSION/BOARD REVIEW AND RECOMMENDATIONS None. FINANCIAL CONSIDERATION The City will not be required to provide any financial assistance to the County for administration of the MCC program. The County will absorb all administrative costs and will coordinate the marketing of the program with Mary Raskin, Assistant Planner, who is managing the City's housing programs, at no cost to the City. PUBLIC NOTIFICATION None required. 0 0 Agenda Item 3 October 19, 1993 ALTERNATE ACTIONS 1. Approve the Cooperative Agreement for participation in the MCC program with the County, or; 2. Deny to enter into a Cooperative Agreement for participation in the MCC program with the County, or; 3. Continue the item and direct staff to return with further information on specified issues. By motion, adopt the attached resolution approving the Cooperative Agreement between the County of Orange and the City of San Juan Capistrano for participation in a Mortgage Credit Certificate Program to assist first time homebuyers. -C Respectfully submitted, Thomas Tomlinson, Planning Director Attachments 1. Draft Resolution MCC1019AI.CC RESOLUTION NO. 93-10-19-6 1�-i�Pl�riiI�t•I•:•19=I:7yrl1 _ u! .i i• : • • •L'_.. _• Y CERTIFICATE PROGRAM FOR FIRST TIME HOM`EBUYER (COUNTY OF • . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING A COOPERATIVE AGREEMENT FOR A MORTGAGE CREDIT CERTIFICATE PROGRAM TO ASSIST FIRST TIME HOMEBUYERS (COUNTY OF ORANGE) WHEREAS, the applicant, the City of San Juan Capistrano, has been invited to enter into a cooperative agreement with the County of Orange for a mortgage credit certificate program to assist first time homebuyers; and, follows: WHEREAS, the City Council of the City of San Juan Capistrano rinds and determines as 1. The proposed Mortgage Credit Certificate Program will assist first time homebuyers by providing a 20% Federal tax credit. This tax credit will increase a certificate holder's spendable income (take home pay) thereby increasing their ability to afford a mortgage payment. 2. The proposed program will be administrated by the County at no cost to the City of San Juan Capistrano. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve a Cooperative Agreement with the County of Orange for a Mortgage Credit Certificate Program to assist first time home buyers. PASSED, APPROVED, AND ADOPTED this 19th day of October 1993. ---GIL 70NES, MAYOR ATTEST: i STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 93-10-19-6 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 19th day of October , 1993, by the following vote: AYES: Council Members Nash, Hausdorfer, Campbell, Vasquez and Mayor Jones NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOHNSON, CITY CLERK -2- 2 ) I 1] UNTY OF GE D I r 1 A93 MICHAEL D DIRECTOR, EMA ENVIRONMENTAL MANAGEMENT AGENCY HOUSING AND REDEVELOPMENT December 13,1993 City of San Juan Capistrano Ms. Mary Raskin 32400 Paseo Adelanto San Juan Capistrano, CA 92677 FILE DHONGCHAI PUSAVAT DIRECTOR OF HOUSING AND REDEVELOPMENT LOCATION: 1200 N. MAIN STREET SUITES 600 & 618 SANTA ANA, CALIFORNIA MAILING ADDRESS: P.O. BOX 4048 SANTA ANA, CA 92702-4048 TELEPHONE: (714) 568-4199 FAX: (714) 568-4202 SUBJECT: County of Orange, 1993 Mortgage Credit Certificate Program - Executed Cooperative Agreement Dear Ms. Raskin: Enclosed is a copy of the executed Cooperative Agreement for the Mortgage Credit Certificate (MCC) Program. This copy is for your official City records (no other copies have been forwarded to your City). In addition, the final County of Orange MCC Participating Lenders List is enclosed for your reference. As we discussed at our meeting on November 17,1993, you may immediately refer first-time homebuyers to the MCC Program at (714) 568-4199. Staff from our office will return each call to prequalify applicants and provide program guidance. Our office has updated the content of the MCC brochure to incorporate City comments and copies will be sent under separate cover. We look forward to your City's participation in the MCC Program. If you need additional information, please contact Linda Nelson at (714) 568-4198 or Chris Herendeen at (714) 568-4736. LN:ch cc: MCC Cooperative Agreement MCC Participating Lenders List Sincerely, Dhongchai Pusavat, Director Housing/ Redevelopment