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Resolution Number 99-10-19-6439 RESOLUTION NO. 99-10-19-6 APPROVAL OF THE SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM; THE EXECUTION OF A STANDARD AGREEMENT, IF SELECTED FOR SUCH FUNDING ANDANY AMENDMENT THERETO; AND, ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM WHEREAS, the City of San Juan Capistrano, a political subdivision of the State of California, wishes to apply for and receive an allocation of funds through the HOME Investment Partnerships Program (hereinafter referred to as "HOME"); and, WHEREAS, the California Department of Housing and Community Development (hereinafter referred to as the "Department') has issued a Notice of Funding Availability for the HOME program and is authorized to approve funding allocations which will be made available directly through the U.S. Department of Housing and Urban Development to be used for the purposes set forth in Title II of the Cranston -Gonzalez National Affordable Housing Act of 1990, the implementing regulations set forth in Title 24 of the Code of Federal Regulations, Part 92, and Title 25 of the California Code of Regulations commencing with Section 8200; and, WHEREAS, the City of San Juan Capistrano wishes to submit an application to obtain from the Department an allocation of HOME funds; and, WHEREAS, the proposed program is consistent with the policies and objectives of the San Juan Capistrano General Plan; and, WHEREAS, the proposed program is consistent with the policies and objectives of the San Juan Capistrano Housing Element. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano as follows: 1. The City of San Juan Capistrano shall submit to the Department an application to participate in the HOME program in response to the Notice of Funding Availability issued on September 10, 1999, which will request a funding allocation for the following activity: -1- 440 B. First -Time Homebuyer Program - This program consists of providing secured, 30 -year second mortgage loans to eligible lower income households. Up to $30,000 is proposed to be provided to eligible first-time homebuyers with down payment and closing cost assistance. Soft costs (closing costs) directly related to the loan for the property being purchased with HOME program funds such as credit reports, appraisals, application processing fee, inspection service fees and specifications, engineering costs, recording fees, etc., will be paid for through the loan made to the homeowner. The second mortgage loans will be offered at 3 percent interest for the first 10 years, dropping to 0 percent interest after 10 years. The loan will be due in 30 years, at refinance for cash out, when the owner ceases to reside in the property, or upon sale or change in ownership. 2. If the application for funding is approved, the City of San Juan Capistrano hereby agrees to use the HOME funds for eligible activities in the manner presented in the application as approved by the Department and in accordance with regulations cited above. It also may execute any and all other instruments necessary or required by the Department or the U.S. Department of Housing and Urban Development for participation in the HOME program. 3. The City of San Juan Capistrano authorizes George Scarborough, City Manager, and/or Thomas Tomlinson, Planning Director, to execute in the name of the City of San Juan Capistrano, the application, the Standard Agreement, and all otherdocuments required by the Department or the U.S. Department of Housing and Urban Development for participation in the HOME program, and any amendments thereto. PASSED, APPROVED, AND ADOPTED this 19th day of October .1999. ATTEST: CITY CLE q1L AW1W JO N GREINER, MAYO -2- 441 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.g4-in-i g-6 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 1 oth day of October , 1999, by the following vote: AYES: Council Member Jones, Swerdlin, Hart, Campbell and Mayor Greiner NOES: None ABSTAIN: None ABSENT: None (SEAL) U vyY� CHERYL JCNNSON, CITY CLERK -3-