HomeMy WebLinkAboutResolution No. 7819RESOLUTION NO. 7819
A RESOLUTION APPROVING HOUSING POLICY REPORT
UNDER INTERNAL REVENUE CODE SECTION 103A
AND DIRECTING ITS PUBLICATION
RESOLVED, by the City Council of the City of Azusa, California, as follows:
WHEREAS, Section 103A(j)(5) of the Internal Revenue Code of 1954, as amended, as
implemented by Section 6a103A-2(1) of the temporary regulations of the Department of the
Treasury, requires the applicable elected representative of an issuer of qualified mortgage
bonds to publish, after public hearing, a housing policy report;
WHEREAS, this Council is the applicable elected representative of the Redevelopment
Agency of the City of Azusa, which Redevelopment Agency proposes to issue qualified
mortgage bonds in 1985;
WHEREAS, this Council has received a proposed housing policy report entitled, "Policy
Report Under Section 103A", a copy of which is on file in the Office of the City Clerk, and
has reviewed said report and each and every part thereof;
WHEREAS, copies of the report have been made available to affected residents of the
City in the Office of the City Clerk, and a public hearing on the housing, development and
low-income housing assistance policies which the City is to follow in issuing qualified
mortgage bonds has been duly held following published notice thereof; and
WHEREAS, it is in the public interest and for the public benefit that said housing
policy report be approved and published;
NOW, THEREFORE, it is hereby ORDERED and DETERMINED as follows:
1. The report of the Redevelopent Agency entitled, "Policy Report Under Section
103A," is hereby approved.
2. This Council does hereby direct the publication of said report by authorizing and
directing the City Clerk, and the City Clerk is hereby so authorized and directed, to make
copies of said Report available within ten days of the date hereof in the Office of the City
Clerk for distribution to the public.
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3. The City Clerk is hereby authorized and directed to file said report with the
Internal Revenue Service at the Internal Revenue Service Center, Philadelphia, Pennsylvania
19255.
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I hereby certify that the foregoing is a full, true and correct copy of Resolution No.
7819, duly adoped by the City Council of the City of Azusa , at a meeting regularly
held on thel8thday of Novembe 19 85, by the following vote of the members thereof:
AYES, and in favor thereof: Councilmembers CRUZ, COOK, CAMARENA, LATTA, MOSES
NOES: Councilmembers NONE
ABSENT: Councilmembers NONE
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City Clerk //.
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REDEVELOPMENT AGENCY OF THE CITY OF AZUSA
EID Number applied for.
(City EID No. is 95-6000670)
POLICY REPORT UNDER SECTION 103A
November 18, 1985
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This is the first annual policy statement in compliance with Section 6a:103A-2(t) of the
Internal Revenue Code, concerning the issuing of qualified mortgage bonds. The
Redevelopment Agency of the City of Azusa, California, will present this report in an
appropriate public hearing, and having notified the appropriate state and federal authorities
of its intent, will issue up to $20,000,000 in qualified mortgage bonds prior to December 31,
1985. This issuance is for the amount allowed the City of Azusa by the Mortgage Bond
Allocation Committe of the State of California, in compliance with federal ceilings for the
issuance of mortgage subsidy bonds.
The California State Legislature has found and declared that:
"... there exists within the State of California a serious shortage of
decent, safe, and sanitary housing which is affordable to many
persons in the state. This shortage is exacerbated during periods of
rising interest rates, particularly as high interest rates have the
effect of diminishing the number of otherwise creditworthy buyers
from qualifying for private sector mortgage capital sources. In order
to remedy this adverse effect on potential home buyers on the lower
end of the purchasing spectrum, it is necessary to implement a public
program to reduce the cost of mortgage financing for the single-
family purchases for those persons unable to compete for the
mortgage financing in the conventional mortgage market."
"... it is necessary and essential that counties and cities be authorized
to directly and indirectly make long-term, low-interest loans to
persons not presently eligible for financing through private sector
lending institutions to finance construction, rehabilitation, and
acquisition of homes in order to encourage investment and upgrade
local areas."
(California Health and Safety Code 52001, 52002)
The California State Legislature further found and declared that:
"... it is necessary and essential that redevelopment agencies be
authorized to make long-term, low-interest loans through qualified
mortgage lenders to finance residential construction in order to
encourage investment and upgrade redevelopment project areas and
increase the supply of housing. Unless redevelopment agencies
intervene to generate mortgage funds and to provide some form of
assistance to finance residential construction, many redevelopment
areas will stagnate and deteriorate because owners and investors are
not able to obtain loans from private sources."
(California Health and Safety Code 33750)
The Redevelopment Agency of the City of Azusa ("the Agency") concurs with the State's
findings of the need to provide affordable housing stated above. The Agency also recognizes
the intent of Congress that state and local governments are expected to use their authority
under Section 103A and Section 25 to the greatest extent feasible to assist lower income
families before assisting higher income families.
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Accordingly, the Agency plans to issue in 1985 qualified mortgage bonds, the proceeds of
which will provide financing for the acquisition of newly constructed single-family
residences by first-time home buyers within established redevelopment project areas. Need
for new housing is based upon data contained in the City's Housing Element of the General
Plan indicating a need for 378 housing units within the next five years.
By increasing the housing availability through the issuance of qualified mortgage revenue
bonds, the pressure on the rental housing market will be alleviated. This, in turn, would tend
to stabilize the upward trend in rental prices and allow low- to moderate -income persons
access to decent, safe, and sanitary housing at affordable costs.
Through the issuance of qualified mortgage revenue bonds, the Agency intends to promote
the development of housing within existing redevelopment project areas and, thereby, bring
into the community additional purchasing power. This, in turn, would tend to further
stimulate commercial activities and improve the economic and social conditions of blighted
areas within the City. Other than promoting development within such redevelopment
project areas, bond proceeds are not targeted to any specific areas. The bond proceeds will
be used to make loans for new single-family homes in accordance with income limitations
imposed by California State Law.
The Agency has not previously been required to publish reports under Section 103A. The
Agency had issued $20,000,000 of qualified mortgage revenue bonds during the 12 -month
period between January 1, 1984, to December 31, 1984, in order to provide financing to
first-time home buyers for the acquisition of new single-family residences. During the
above referred 12 -month period, no loan has been made from the bond proceeds. However,
it can be anticipated that moderate -income families will be able to qualify for a portion of
the loans from the bond proceeds and purchase new homes in compliance with the intent of
Congress to assist lower-income families in acquiring homes.
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