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HomeMy WebLinkAboutMINUTES - 05072013 - C.87RECOMMENDATION(S): ADOPT Resolution No. 2013/211 authorizing the Director of the Department of Conservation and Development, or her designee, to prepare and submit an application, certification, and $600 application fee to the California Debt Limit Allocation Committee for an allocation of $8,000,000, in Private Activity Bond Authority for conversion to Mortgage Credit Certificates. FISCAL IMPACT: None. No General Fund monies are involved. All costs associated with the issuance and administration of this program are paid by fees assessed on program participants. The issuance of a Mortgage Credit Certificate does not involve the issuance of any debt by the County, therefore there is no pledge of revenue by the County, or any party contracting with the County. BACKGROUND: Contra Costa County began operation of a Mortgage Credit Certificate (MCC) Program in June 1991. MCCs are an alternative means of assisting low and moderate income first-time homebuyers in achieving home ownership. The County MCC program has provided assistance to over APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/07/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Kara Douglas 925-674-7880 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 7, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C. 87 To:Board of Supervisors From:Catherine Kutsuris, Conservation and Development Director Date:May 7, 2013 Contra Costa County Subject:Mortgage Credit Certificates: Application for $8,000,000 in Private Activity Bond Authority BACKGROUND: (CONT'D) 3,500 households. Recipients of a MCC are eligible for an income tax credit from the federal government that effectively reduces their net mortgage payment by 100 to 200 basis points (1% - 2%). The County’s application to the California Debt Limit Allocation Committee (CDLAC) for $8,000,000 in Private Activity Bond Authority for MCCs is based on State allocation procedures. Contra Costa County received an allocation in December, 2012 of $7,059,414. Almost all of the allocation is exhausted. CDLAC allows applications for additional, or Bonus Pool Allocation, funds when specific performance measures are met. The County meets all requirements for additional funds. Therefore, staff recommends requesting an additional $8,000,000 in Bonus Pool Allocation funds. This allocation will result in the issuance of approximately 40 MCCs. CONSEQUENCE OF NEGATIVE ACTION: If this request is not approved, an additional allocation of $8,000,000 for Contra Cost County will not be provided and will remain with CDLAC for use elsewhere in the State. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS Resolution No. 2013/211