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HomeMy WebLinkAboutMINUTES - 05031994 - 2.3 ( 3 TO: BOARD OF SUPERVISORS :�. '. Contra FROM: Harvey E. Bragdon '.^ Costa Director of Community Development s` County C JK� County DATE: May 3, 1994 SUBJECT: Mortgage Credit Certificates SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Authorize the Director of Community Development or his Designee to prepare and submit the necessary applications and certifications to the California Debt Limit Allocation Committee for up to $60 million in Private Activity Bond Authority for 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 of program participants. BACKGROUND/REASONS FOR RECOMMENDATIONS Contra Costa County has been operating a Countywide Mortgage Credit Certificate (MCC) program :since June 1991, and has only a limited amount of authority remaining to issue additional MCCs. Mortgage Credit Certificates are an alternative means of assisting low and moderate income first-time homebuyers in achieving home ownership. The Contra Costa County Mortgage Credit Certificate Program has provided assistance to approximately 650 households since the program's inception. Recipients of a Mortgage Credit Certificate are eligible for an income tax credit from the federal government that effectively reduces their net mortgage payment by 200 basis points (2%) . CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECDATION BOARD CO TTEE APPROVE OTHER 7 SIGNATURE(S) : ACTION OF BOARD ON �/`�QTc`cj!. APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Source: Kelly Calhoun 646-4208 cc: Community Development ATTESTED CAO PHIL BA HE OR, CLERK OF Redevelopment Agency THE BOARD OF SUPERVISORS 1KC/jb/mcc.bos AND COUNTY ADMINISTRATOR BYYva e � �_J , DEPUTY p fA -10 ¢to so ra cr a 00 Q '� ry�p C to o� n mss. 0to to Ng soso� � �e �+ S' a ' �a3 cn •o Cl ti to n a in FA FA 3 S rO• c ° 3 S. IA m Contra Costa County Community Development Department 651 Pine Street, 4th Floor, North Wing Martinez, CA 94553-1224 ,r ON .-- n � � • p rh • (p `� INA n� y w eT n � � sem' E � G to Q 'i1��p�F: �,. {{ I^ MtA �... v j 140 Op IA oc O n s A G r ? "'' ^ "•'• � G °� m !sip � �' 'r Ay n i• �^ .fir G A"+; 9; +�yAji ,SrS• p � (,� /�Q •7 ?, �. � A ^ Q n i ^ ".• i. �,� �!► ¢ '.li t"'� R � 7► R ".. a 7� ? 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LENDER Verifies Borrowers eligibility for MCC. Files Transmittal Form (MCC-013), Application Affidavit (MCC-003, pp 1-3), MCC Commitment (MCC-007), Notice of Potential Recapture Tax (MCC-015), a copy of the signed sales agreement, Appraisal Report, 3 years prior tax returns and Application Fee ($200) with the County during Escrow period. COUNTY Issues MCC Commitment (MCC-007) to Lender LENDER Provides Borrower with copy of MCC Commitment. Prepares and forwards MCC Closing Documents; Seller Affidavit (MCC-005), Closing Affidavit (MCC-008), Lender Closing Certificate (MCC-009), Notice to Mortgagor of Maximum Recapture Tax (MCC-016), to County either prior to loan closing or immediately following loan closing. COUNTY Issues Mortgage Credit Certificate (MCC-010) to Lender LENDER Delivers Mortgage Credit Certificate to Borrower. Establishes permanent file for MCC documents and retains for a six (6) year period. Files one time IRS report (IRS Form 8329) to IRS in January of following year. F- BORROWER Accepts MCC and retains for permanent tax records. Report MCC use on annual federal tax returns Amends W-4 Form with employer. 1KC1jb/1WCC.0ut , ' • L. CONTRA COSTA COUNTY MORTGAGE CREDIT CERTIFICATE PROGRAM Average Median Incomes of Homebuyers participating in the MCC Program Average Median Incomes Total No. of Program Participants 1990 $43,132.99 93 1991 $38,642.00 267 1992 $371791.74 241 1993 $37.734.00 257 Average $38,618.00 Total 858 Lettersjb/progpart.cht