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HomeMy WebLinkAboutRESOLUTIONS - 12161986 - 86-745 7 � 3) CONTRA COSTA COUNTY EMPLOYEE IDENTIFICATION #94-600050-9 POLICY REPORT UNDER SECTION 103A OF THE INTERNAL REVENUE CODE A. GENERAL On July 18, 1984, Congress enacted into law the Tax Reform Act of 1984 (the "1984 Act") . The 1984 Act imposed certain requirements on issuers of qual- ified single family mortgage bonds and mortgage credit certificates. One of these requirements is that issuers publish a statement of their policies with respect to housing, development, and low-income housing assistance and report on their compliance, for the period between July 1, 1985 and June 302 1986 with the policy set forth in the County's prior report and with the intent of Congress that qualified mortgage bond issues and mortgage credit certificates assist lower income families to afford home ownership before assisting higher income families. In order to qualify for a federal tax exemption for interest on bonds issued to refund qualified mortgage bonds in 1987, this statement must be published prior to December 31, 1986. On October 22, 1986 Congress enacted into law the Tax Reform Act of 1986- (the "1986 Act") . The 1986 Act requires that bonds issued to refund qualified SF mortgage bonds satisfy certain requirements of Sections 103 and 103A of the Internal Revenue code of 1954 as amended, including the submission of statement of policies and report on compliance. As Contra Costa County plans to issue bonds or certificates to refund qualified single family mortgage bonds and/or mortgage credit certificates in 1987, possibly in conjunction with the City of Antioch under a Joint Powers Agreement, the following report is being published in order to comply with the requirements of the "1984 Act", the 1986 Act and the Regulations thereunder. B. POLICIES AND GOALS (1) Housing Policies and Goals. . The California State Legislature has found and declared that "there exists within the State of California a serious shortage of de- cent, 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 qualify- ing 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 mortgage financing in the con- ventional mortgage market." (California Health and Safety Code 552001) The California State Legislature has additionally found and declared that "it is necessary and essential that counties and cities be authorized to directly and indirectly make long-term, low-interest loans to per- sons not presently eligible for financing through private sector lend- ing institutions to finance construction, rehabilitation, and acquisi- tion of homes in order to encourage investment and upgrade local areas." (California Health and Safety Code 552002) Contra Costa County plans to issue bonds or certificates to refund qualified single family mortgage bonds and/or mortgage credit certificates (the "Bonds/Certificates") in 1987 in furtherance of the above-stated policies of the California State Legislature and in conformance to the following policies and goals: (i ) Use of Amounts. The amounts made available by the issuance of the Bonds/Certificates will be used to finance the acquisition of residences and qualified rehabilitation loans; and perhaps be available to finance home improvement loans. (ii ) Targeting of Amounts to Housing Type. The amounts made available by the issuance of the Bonds/Certificates will be targeted to new housing, existing housing, and perhaps to the purchase/rehabilitation of existing homes and home improvement loans. These housing types are being targeted because they represent the broad spectrum of homes that are generally affordable to families of low and moderate income. (iii ) Determination of Need for Targeting. The need to target by housing type is determined pursuant to Section 52020 of the California Health and Safety Code, which requires that 60 percent of the proceeds of a bond issue be used to assist in the financing of new or substantially rehabilitated homes. According to the Association of Bay Area Government's most recent Housing Needs Report there is a need to accommodate over 58,000 additional households in the County during the ten year period 1980-1990. The provision of the Bond/Certificate proceeds facilitates and induces this necessary new construction. Some priority with respect to the remaining 40 percent is provided to existing homes in order to enhance the affordability of homes generally available under the program, and to broaden the choice of prospective buyers. (iv) Method of Targeting Amounts. Bond/Certificate amounts made available by the issuances are targeted via a County controlled allocation process which takes into account unit type, unit price and affordability, geographic location, and the presence of other mechanisms designed to reduce unit prices. Priority is provided to housing priced under $100,000, or less than 2/3 of the safe harbor sales price limit. The units .selected are from a portfolio of projects provided by builders/developers in response to a solicitation. The County makes provision for existing and substantially rehabilitated homes in the absence of an identified builder/developer. (v) Other Pertinent Information. None. (vi ) Relationship of Development and Low Income Housing Assistance Policies. Programs using the amounts made available by the issuance of Bonds/Certificates in the County will be implemented in a manner which addresses the needs of first time homebuyers subject to income restrictions. All mortgage funds are restricted to households meeting income restrictions established in the California Health and Safety Code (Sections 52020 and 50189) in order to assist low and moderate income households. Approximately 2/3 of the Bond Certificate proceeds are reserved for households with incomes at less than 120% of the County median. Historically 80% of the proceeds are used by mortgagors earning less than 120% of median. Amounts made available by the issuance of the Bonds/Certificates will be targeted to geographic areas and neighborhoods where home prices are affordable to persons of low and moderate income. In order to provide first time homebuyers with a variety of choices, geographic dispersion is desired, consistent with affordability. Given the nature of the County's housing markets, new single family detached homes are most affordable in the East County, while new condominiums are the most affordable housing type in the Central and West County. Consumer choice and affordability is further enhanced by the provision of Bonds/Certificates proceeds for existing homes. Historically, over 60% of all units financed are priced at least 33% below the maximum allowed under federal law. (2) Development Policies and Goals 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 mortgage financing in the conventional mortgage market." (California Health and Safety Code 552001) The California State Legislature has additionally found and declared that "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 financ- ing 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 S52002) Contra Costa County plans to issue the "Bonds/Certificates" in 1987 in furtherance of the above-stated policies of the California State Legislature and in conformance to the following policies and goals: (i ) Targeting of Amounts to Areas. Approximately $6 million, depending on which cities are included as cooperating cities in the issue, of the proceeds of the Bonds/Certificates will be targeted to specific targeted areas residences. In the past three bond issues the County has reserved 5%, 1.5% and 11% of mortgage loans for the financing of properties located in targeted areas. In addition, the County may further target other lower income communities by providing, on a priority basis, funds for the purchase and/or purchase/rehabilitation of existing and new homes located in predominantly lower income communities. Targeted Areas Description. The expected service area of the County program includes three targeted areas. The first such target area is Census Tract 3141 in the unincorporated West Pittsburg community, a community in which 67% of the households have an income below 80% of the median income for the County, and 17% below the poverty income level . The second targeted area, a portion of the City of Martinez, is characterized by an older housing stock and a population which has approximately 60% of its households with incomes at or below 80% of median. The third targeted area is the City of San Pablo, which may be included in the 1987 Bond issue, a community in which 62% of the households have an income below 80% of the median income for the County. Additional areas in which targeting may occur is in neighborhoods where comprehensive revitalization is being undertaken through Community. Development Programs and other programs designed to benefit low and moderate income persons. Section of Targeted Areas. Targeted areas have been targeted by federal tax law. Additional targeting of funds to neighborhoods, may be done based on the presence of a predominantly lower income population, and other indicators of distress, including those used to designate neigh- borhoods eligible for Community Development Block Grant programs. (iv) Use of Targeted Proceeds. The amounts made available by the issuance of the Bonds/Certificates which will be targeted to the areas described in (ii ) above will be used to finance the purchase and/or rehabilitation of existing housing and new construction. (v) Other Pertinent Information. Where possible, the County intends to use the amounts made available by the issuance of Bond/Certificate proceeds in conjunction with developments utilizing public land, other local resources, density bonuses, or other means of reducing housing prices. (vi ) Relationship to Housing and Low Income Housing_ Assistance Policies. Programs using the amounts made available by the issuance of Bonds/Certificates in the County will be implemented in a manner which addresses the needs of first time homebuyers subject to income restrictions. All mortgage funds are restricted to households meeting income restrictions established in the California Health & Safety Code (Sections 52020 and 50198) in order to assist low and moderate income households. Approximately 2/3 of the Bond Certificate proceeds are reserved for households with incomes at less than 120% of the County median. Historically, over 80% of the proceeds are used by mortgagors earning less than 120% of median. Amounts made available by the issuance of the Bonds/Certificates will be targeted to geographic areas and neighborhoods where home prices are affordable to persons of low and moderate income. In order to provide first time homebuyers with a variety of choices geographic disperson is desired, consistent with affordability. Given the nature of the County' s housing markets, new single family detached homes are most affordable in the East County, while new condominiums are the most affordable housing type in the Central and West County. Consumer choice and affordability is further enhanced by the provision of Bonds/Certificates proceeds for existing homes. Historically, over 60% of all units financed are priced at least 33% below the maximum allowed under federal law. B. (3) Low-Income Housing Assistance Policies and Goals. To insure that qualified mortgage bond issues assist lower income families to afford home ownership, California law provides that a city or county that administers a home financing program must establish criteria for qualification of persons and families for participation in such program. The criteria for the County programs include a maximum household income for entitlement funds, which maximum shall not exceed one hundred fifty percent of Countywide median household income for mortgagors who will be the first occupant of a home and one hundred twenty percent of the median household income for mortgagors who will not be the first occupant of a home. In addition, to obtain a supplementary allocation of qualified mortgage bonds from . the California Mortgage Bond Allocation Committee, proceeds of qualified mortgage bonds issued with such supplementary allocation must be used to provide mortgages to persons and families who incomes do not exceed one hundred twenty percent of median household income for mortgagors who will be the first occupant of a home and median household income for mortgagors who will not be the first occupant. Approximately 2/3 of the amounts made available by the issuance of the County' s proposed 1987 issuance of Bonds/Certificates will consist of supplementary funds. The County plans to issue the Bonds/Certificate in 1987 in furtherance of the above stated policies of the California State Legislature and in conformance to the following policies and goals: (i ) Targeting of Amounts According to Income. Price and affordability are priority considerations in the selection of units to be financed with the proceeds of bonds/certificates. Consistent with state law (California Health and Safety Code 552020 and 50198) , the proceeds of the Bonds are restricted to households meeting targeted low and moderate income requirements. Approximately 2/3 of the proceeds are supplementary funds pursuant to the California Health and Safety Code and therefore will be set aside for persons earning less that 120% of the County median income. Only 1/3 of the proceeds are entitlement funds pursuant to the California Health and Safety code and therefore may be used for persons earning between 120% and 150% of the County median income. Approximately $2 million of the amounts made available by the issuance of the Bonds/Certificates will be targeted to low-income families, approximately $5 million of the amounts made available by the issuance of the Bonds/Certificates will be targeted to moderate income families and approximately $10 million of the Bonds/Certificates will be targeted to median income families. "Low-income families" means families earning 50% or less of median income; "moderate income families" means families earning between 50% and 80% of median income. Countywide household median income for Contra Costa County is currently $40,894. Method of Targeting Amounts. The County's process of allocating the amounts made available by the issuance of Bond/Certificates proceeds takes into account the unit type, unit price and affordability, geographic location, and presence of other mechanisms to reduce price and/or improve affordability. Unit price and affordability is the primary criteria for the allocation of proceeds. Amounts made available by the issuance of the Bonds/Certificates can only be used by mortgagors who satisfy . the income limits contained in the California Health and Safety Code. In addition, the County may make provision for the financing of the purchase and/or rehabilitation of existing homes located in communities where low and moderate income persons predominate. Other Pertinent Information. Where possible, the County intends to use the amounts made available by the issuance of Bond/Certificates proceeds in conjunction with developments utilizing public lands, other local resources, density bonuses, and other means of reducing housing prices. It has been the experience of the County that over 80% of the proceeds are used by households earning less than 120% of the County median income. (iv) Relationship to Development and Housing Policies. Programs using the amounts made available by the issuance of Bonds/Certificates in the County will be implemented in a manner which addresses the needs of first time homebuyers subject to income restrictions. All mortgage funds are restricted to households meeting income restrictions established in the California Health and Safety Code (Sections 52020 and 50189) in order to assist low and moderate income households. Approximately 2/3 of the Bond Certificate proceeds are reserved for households with incomes at less than . 120% of the County median. Historically, over 80% of the proceeds are used by mortgagors earning less than 120% of median. Amounts made available by the issuance of the Bonds/Certificates will be targeted to geographic areas and neighborhoods where home prices are affordable to persons of low and moderate income. In order to provide first time homebuyers with a variety of choices geographic dispersion is desired, consistent with affordability. Given the nature of the County's housing markets, new single family detached homes are most affordable in the East County, while new condominiums are the most affordable housing type in the Central and West County. Consumer choice and affordability is further enhanced by the provision of Bonds/Certificates proceeds for existing homes. Historically, over 60% of all units financed are priced at least 33% below the maximum allowed under federal law,. C. COMPLIANCE WITH PREVIOUS REPORT 1. Housing Policies and Goals (i ) Use of Proceeds On May 1, 1985, Contra Costa County issued Single-Family Mortgage Revenue Bonds in the amount of $58,999.782.20. The proceeds of the bond sale resulted in the availability of $58,240,000 for the purchase of approximately 645 homes for low and moderate income households. ( ii ) Targeting of Proceeds to Housing Type The proceeds of the Bonds provide mortgage funds in the amount of $53,240,000 which is available for the purchase of new single family homes ranging in purchase price from $65,000 to $161,990. An additional $3,000,000 is available for the purchase of existing or resale homes and for scat- tered site new homes for which a developer had not been identified at the time of issuance. The remaining $2;000,000 is available for the purchase and rehabilitation of existing homes. (iii ) Determination of Need for Targeting The 1985 Bond proceeds are allocated to target over 94% of the mortgage funds for new or substantially rehabilitated homes. The 1985 Bond will provide financing for 645 homes and in combination with the 1984 Bond (525 homes) , the 1983 Bond (450 homes) , and the 1982 Bond (400 homes) will provide over 2000 homes which will be available to low and moderate income persons. (iv) Method of Targeting Proceeds The allocation of 1985 Bond proceeds to county developments took into account unit types, unit price and affordability, and geographic location. The allocations resulted in unit prices which range from $65,000 to $161,990 with 53% of the units at a price of under $100,000. Unit types are varied with 44% townhouse and condominiums and the remaining 56% single family, (attached and detached) and duplexes. Geo- graphically, the units were divided to provide 42% in West County, 14% in Central , County and 44% in East County. In addition, funds were made available for approximately 70 existing units, some of which may be purchased and rehabili- tated. These funds were made available to households with incomes under $32,000. (v) Other Pertinent Information None (vi ) Relationship of Development and Low Income Housing Assis- tance Policies The 1985 Bond issue was structured to place income limits of 120% of the County median income on 67% of the funds. The proceeds of the Bond issue have been disbursed geographical- ly throughout the county with a variety of housing types and acquisition price in each area. 2. Development Policies and Goals (i ) Targeting of Proceeds to Areas The 1985 Bond proceeds were allocated in the amount of $6 million or approximately 11.3% of the Bond issue to develop- ments within "targeted areas" . In addition, $5 million is allocated for the purchase of existing homes and for purchase and rehabilitation of existing homes. (ii ) Targeted Area Description The 1985 Bond issue service area includes three "targeted areas" pursuant to Section 103A. The targeted area in a portion of unincorporated West Pittsburg received alloca- tions totalling $3.7 million. The Martinez targeted area received $2.3 million in allocations. The third targeted area is the City of San Pablo. As no specific developments were located within the city, no area specific allocations were made. It is anticipated that the allocation for exist- ing homes and the purchase/rehabilitation funds will be actively utilized within San Pablo. (iii ) Selection of Targeted Areas No selection of additional targeted areas has occurred. (iv) Use of Targeted Proceeds A total of $6 million was allocated from the 1985 Bond issue to specific targeted areas. (v) Other Pertinent Information None (vi ) Relationship to Housing and Low Income Housing Assistance Policies The 1985 Bond issue proceeds have been allocated in order to reserve 2/3 of the funds for households with incomes at less than 120% of median. The Bond proceeds have been targeted by geographic location and housing type to provide the most affordable housing possible in each areas and still provide a reasonable choice of housing types. The result is that 80% of the single family homes are located An East County where land is still relatively inexpensive. The majority of the condominiums and townhouses are located in West and Central County where land is more expensive. B. (3) Low-Income Housing Assistance Policies and Goals (i ) Median income for Contra Costa County is now $40,894. Approximately 9.3% of the new housing available to be purchased with the 1985 Bond proceeds is priced below $82,000, an amount affordable to moderate income families (families earning between 50% and 80% of median income) . Median income families can afford over 57% of the homes available for financing with the 1985 Bond Issue. ( ii ) Method of Targeting Proceeds Bond proceeds in the amount of $6 million has been reserved for financing within "targeted areas" pursuant to Section 103A. (iii ) Other Pertinent Information The County has provided a density bonus for a developer within the Bond program to allow for an increase in number of units for those units which have sales prices of approxi- mately $70,000. (iv) Relationship to Development and Housing Policies Approximately 67% of the 1985 Bond proceeds have been reserved for households with incomes at less than 120% of the County median. The 1985 Bond issue provides 66% of the total number of units at a price 33% below the maximum allowed under federal law. D. COMPLIANCE WITH INTENT OF CONGRESS On May 15, 1985, the County issued $58,999,782.20 in single family mortgage revenue bonds. The County took the steps outlined below with respect to the distribution of bond proceeds in order to assist lower income house- holds: 1. All mortgage funds were restricted to households meeting income restrictions established in California Health and Safety Code Sections 52020 and 50189 in order to assist low and moderate income persons. The median income for the County, as established for the 1985 Program, is $40,894; therefore, income limits are $49,073 for supplemental funds; , $61,341 for entitlement funds. Approximately two-thirds of the funds are supplemental . Bond/Certificate proceeds are targeted via an allocation process which takes into account unit type, price and affordability, geographic location, and the presence of other mechanisms designed to reduce unit prices. In addition, a portion of the 1985 funds were reserved for homes which are to be purchased and rehabilitated and for the purchase of existing homes. As of June 30, 1986, 21% of the loans from the 1985 bond had gone to households with income under $32,000 and 74% of the loans were provided to households with incomes under the supplemental income limit. 2. In order to assure that units with sale prices affordable to persons earning less than 120% of the area median were made available to lower income persons before being sold to higher income persons, program funds were set aside for persons earning 120% or less of the area median income; approximately 66% of the aggregate mortgages included in the 1985 program and were to set aside. Most developers partici- pating in the bond programs are required to reserve nearly all of their allocation for persons earning 120% or less of the area median income. Homebuyers are required to be first time homebuyers, except in "targeted areas", required by the Code. Additionally, the homes are subject to sales price limits as required by the Code. 3. One of the major criteria for the selection of developments for the County' s single family mortgage revenue bond programs is to give priority to developers with low sale prices. Due to the high demand for mortgage money, 66% of the units to be financed in the 1985 Program were at least 33% below the maximum sale price. As of June 30, 1986 43% of the mortgage loans had been made on homes priced at least 33% below the maximum sales price ($112.835) . 4. Eleven percent of mortgage loans were reserved for properties located in target residential areas populated by lower-income families. As of June 30. 1986, 15% of the mortgage loans had been made on homes located in target areas. 5. The restrictions on sale prices of units, below the maximum permitted under the law, plus provision for developer buydown of the mortgage interest rate will further enable lower-income homebuyers to qualify.. On August 22. 1984, the Contra Costa Home Mortgage Finance Authority, a joint powers agency between the County and the City of Antioch, issued $57.562.608.11- of 57.562.608.11of Single Family Mortgage Revenue Bonds (the "1984 Bonds") in an effort to assist lower-income families to afford home ownership. As of June 30, 1986, $22,384,010 of the 1984 Bond proceeds remained available for use. The following information is provided with respect to the 1984 Bonds: 1. All mortgage funds were restricted to households meeting income restrictions established in California Health and Safety Code Sections 52020 and 50189 in order to assist low and moderate income persons. The median income at the time of issuance was $39,205: therefore income limits were $47,046 for supplemental funds and $58,807 for entitlement funds. As of June 30, 1986, 12.7% of the loans from the 1984 Bond had gone to households with income under $32,000 and 70% of the loans were provided to households with incomes under the supple- mental income limit. 2. In order to assure that units with sale prices affordable to persons earning less than 120% of the area median were made available to lower income persons before being sold to higher income persons, approxi- mately 65% of the aggregate mortgages included in the 1984 program were set aside for persons earning 120% or less of the area median income. Most developers participating in the bond programs are required to reserve nearly all of their allocation for persons earning 120% or less of the area median income. 3. One of the major criteria for selection of developments for the County's single-family mortgage revenue bond Programs is to give priority to developers with low sale prices. Due to the high demand for mortgage money, 60% of the units to be financed in the 1984 Program were at least were at least 33% below the maximum sale price permitted by law (below $112,835) . As of June 30, 1986, 78% of the mortgage loans had been made on homes priced below $112,835, 58% of the mortgage loans had been made on homes priced below $100,000 and 36% on homes priced below $90,000. 4. $865,983 of mortgage loans were reserved for properties located in target residential areas populated by lower-income families in the 1984 program. As of June 30, 1986, 7.6% of the mortgage loans had been made on homes located in target areas. 5. The restrictions on sale prices of units, below the maximum permitted under law, plus provision for developer buydown of the mortgage interest rate will further enable lower-income homebuyers to qualify. On April 20, 1983, the County issued Home Mortgage Revenue Bonds in the aggre- gate principal amount of $37,100,000 (the "1983 Bonds") in an effort to assist . lower-income families to afford home ownership. As of June 30, 1986, $7 million of the 1983 bond proceeds remained available for use. The following information is provided with respect to the 1983 Bonds: 1. All mortgage funds were restricted to households meeting income restrictions established in California Health and Safety Code Sections 52020 and 50189 in order to assist low and moderate income persons. The median income at the time of issuance was $36,760 for the 1983 Bonds; therefore, income limits were $44,112 for supplemental funds and $55,140 for entitlement funds under the 1983 Bonds. Two-thirds of the funds are supplemental . 2. In order to assure that units with sale prices affordable to persons earning less than 120% of the area median were made available to lower income persons before being sold to higher income persons. 55% of the aggregate mortgage's in the 1983 program were set aside for persons earning 120% or less of the area median income. As of June 30, 1986, over 90% of the mortgage loans had been made to households with incomes of less than 120% of median. 3. One of the major criteria for the selection of developments for the County's single family mortgage revenue bond programs is to give priority to developers with low sale prices. Due to high demand for mortgage money, 80% of the units to be financed in the 1983 Program were at least 33% below the maximum sale price permitted under the law. 4. Five percent of mortgage loans were reserved for properties located in target residential areas populated by lower-income families. By June 30, 1986, 7% of the loans had been made for houses located in target areas. 5. The restrictions on sale prices of units, below the maximum permitted under the law, plus provision for developer buydown of the mortgage interest rate will further enable lower-income homebuyers to qualify. Conclusion As income restrictions have applied to each of the County' s single family housing bond issues, and for other reasons discussed in this Policy Report, the County has complied during the twelve month period ending June 30, 1986 with the intent of Congress that the County use its authority to issue qualified mortgage bonds to the greatest extent feasible to assist lower-income families to afford home ownership before assisting higher income families, and has been successful in implementing the goals which were stated in the previous policy report. E. " SUMMARY OF HEARING COMMENTS A public hearing on the proposed Policv Report was duly noticed and held on December 16, 1986. The following comments were received: This report is submitted by the undersigned elected representative of the County. BOARD Of SUPERVISORS CONTRA COSTA COUNTY By: To Powers, Chairman (SEAL) ATTEST: Phil Batchelor County Administrator & Clerk of the Board of Supervisors By: - Deputy JK:vpljk3 a:secl03a.rpt RESOLUTION RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE PUBLICATION OF A POLICY REPORT REGARDING A STATEMENT OF THE POLICIES OF THE COUNTY OF CONTRA COSTA WITH RESPECT TO HOUSING, DEVELOPMENT AND LOW-INCOME HOUSING ASSISTANCE TO BE FOLLOWED IN ISSUING QUALIFIED MORTGAGE BONDS AND MORTGAGE CREDIT CERTIFICATES; AN ASSESSMENT OF THE COMPLIANCE OF THE COUNTY OF CONTRA COSTA WITH STATEMENTS MADE WITH RESPECT TO THE ABOVE-STATED POLICIES CONTAINED IN THE POLICY REPORT PREVIOUSLY ISSUED BY THE COUNTY OF CONTRA COSTA; AND AN ASSESSMENT OF THE COMPLIANCE OF THE COUNTY OF CONTRA COSTA WITH THE INTENT OF CONGRESS THAT SUCH BONDS AND CERTIFICATES BE ISSUED TO THE GREATEST EXTENT FEASIBLE TO ASSIST LOWER INCOME FAMILIES TO AFFORD HOME OWNERSHIP BEFORE ASSISTING HIGHER INCOME FAMILIES. WHEREAS, the County .of Contra Costa ( the "County" ) is authorized under Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Law" )- to issue revenue bonds for the purpose of providing home mortgages to low- or moderate-income families; WHEREAS, pursuant to Section 1313 of the Tax Reform Act of 1986, bonds the proceeds of which are used exclusively to refund bonds issued before August 16, 1986 must generally comply with the provisions of Section 103 and 103A of the Internal Revenue Code of 1954, as amended, as in existence before amended by the Tax Reform Act of 1986 (the "1954 Code" ) ,- WHEREAS, pursuant to Section 103A( j ) of the 1954 Code prior to the issuance of its revenue bonds, the Board of Supervisors of the County must publish ( after a public hearing following reasonable public notice) a policy l report including a statement of the policies of the County with respect to housing, development, and low-income housing assistance to be followed in issuing qualified mortgage bonds and mortgage credit certificates; an assessment of the compliance of the County with statements made with respect to the above-stated policies contained in the County' s previous policy report; and an assessment of the compliance of the County with the intent of Congress that such bonds and certificates be issued to the greatest extent feasible to assist lower income families to afford home ownership before assisting higher income families ( the "Policy Report" ) ; WHEREAS, this Board of Supervisors must deliver such Policy Report to the Secretary of the United States Treasury ( "Secretary" ) on or before December 31, 1986; WHEREAS, a notice of public hearing with respect to the proposed Policy Report containing information regarding the public hearing and the availability of the proposed and final Policy Report was published at least fourteen ( 14) days before the date set for such public hearing, in a newspaper of general circulation in the County of Contra Costa; WHEREAS, this Board of Supervisors held said public hearing, at which time an opportunity was provided to present arguments both for and against the publication of the Policy Report and the nature of the contents of the Policy Report; NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, as follows: 2 1 . This Board of Supervisors does hereby find and declare that the above recitals are true and correct. 2 . The proposed form of Policy Report presented to this meeting of the Board of Supervisors is hereby approved and adopted by the County. The Chair of the Board of Supervisors of the County of Contra Costa is hereby authorized and directed to execute such Policy Report on behalf of the Board of Supervisors, with such changes therein as he may approve, such approval to be conclusively evidenced by his execution of such Policy Report. 3 . The appropriate officers of the County are hereby authorized and directed to mail such Policy Report by the United States Postal Service, certified mail, return receipt requested, to the Secretary, to be postmarked on or before December 31, 1986. 4. It is the purpose and intent of this Board of Supervisors that this resolution constitute approval of the Policy Report by the applicable elected representative in accordance with Section 103A( j ) of the 1954 Code. 5. This Resolution shall take effect immediately upon its passage. 3 PASSED AND ADOPTED by the Board of Supervisors of the County of Contra Costa on December 16, 1986 by the following vote: AYES: Supervisors Fanden, Schroder , McPeak, Torlakson, Powers . NAYES: None . ABSENT: None . X " ' Tom Powers, Chair [ SEAL] Attest: Phil Batchelor, Clerk of the Board of Supervisors By. / Deputy Clerk of the Board of Supervisors 4