HomeMy WebLinkAboutMINUTES - 02211984 - 1.23 TO: BOARD OF SUPERVISORS f
FROM: Anthony A. Dehaesus Contra
Director of Planning Costa
DATE: February 7, 1984 County
SUBJECT: Extension of the Mortgage Revenue Bond Sunset Clause
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
Recommendations
Authorize the Chairman to send a letter to members of the California Congressional
delegation reaffirming the Board's support for extension of the Mortgage Revenue
Bond Sunset Clause, and requesting immediate positive action by Congress.
Background
The Board has previously gone on record in support of extending the Federal Mortgage,
Revenue Bond Sunset Clause. As indicated in a memorandum dated December 6, 1983
from the Director of Planning, the Congress adjourned in November, 1983 without
taking action on this item. Because Congress adjourned without taking action no new
single family mortgage revenue bonds can be issued. This is occuring despite the fact
that there is the overwhelming support of the members of the House and Senate.
Three-quarters of the members of Congress are co-sponsoring the Sunset extension
legislation. However, the Senate Finance Committee Chairman Dole (R-Kansas) and
Way and Means Committee Chairman Rostenkowski (D-Illinois) have refused to allow
the Sunset Extension to move on its own. While neither actively opposes Sunset
extension they have insisted that the price for extension be the imposition of new
restrictions on industrial development bonds. This controversy has led to a deadlock
on action on Sunset extension. This deadlock has an immediate effect on this County
in that our application for mortgage revenue bond authority with the State is very high
on the current list of applicants. If the Sunset legislation were already approved we
would likely receive allocation authority in February and issue in May or June. As of
now, however, we can do nothing. The 1982 mortgage revenue bond program will
terminate soon, and the 1983 program - with attractive 9S4% mortgages - will soon
exhaust its funds as well. Without an infusion of new mortgage capital first time
homebuyers will be without this below market rate financing. A profile of buyers
purchasing under prior programs is attached.
Further reason to press for immediate action is to recognize the tendency of Longress
to not act on tax bills when an election is imminent. The longer this issue drags on the
more reluctant Congress may be to act.
An expression of dissatisfaction with anything less than priority action or single family
mortgage bonds is necessary so as to dispell any beliefs that support for these
programs is weak.
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CONTINUED ON ATTACHMENT: YES SIGNATURE:
_RECOMMENDATION OF COUNTY ADMINISTRATORRECOM N ATION ARD CO MITTEE
APPROVE OTHER
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SIGNATURE(S) L
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
L1_ UNANIMOUS (ABSENT ) 1 HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED
Auditor-Controller J.R. OLSSON. COUWTY CLE K
Planning AND EX OFFICIO CLERK OF THE BOARD
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M382/7-e9 M - BY DEPUTY