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Home My WebLink AboutMINUTES - 05231995 - 2.4 t cq 2 .4 THE BOARD OR SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on _May 23, 1995,_ by the following vote: AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop NOES: None ABSENT: None ABSTAIN: None -------------- SUBJECT: Single Family Mortgage Financing Programs/AB 997 The Board considered the recommendations of the Community Development Director set forth in the attached report. At the conclusion of the discussion on this matter, the Board took the following actions: 1. ACCEPTED the report and ADOPTED the position of "co-sponsor if amended" on AB 997 (Hauser; 2. AUTHORIZED the Chair, Board of Supervisors, to execute letter of support and sponsorship to the County's State legislative delegation; 3. AUTHORIZED the County's legislative lobbyist (Heim, Noack, Kelly & Spahn) to work with other interested parties in support of AB 997; 4. Acting in the capacity of the Housing Authority Commission, REQUESTED that the Advisory Housing Authority Commission also write letters supporting the Board's position on AB 997. 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 23, 1995 Phil Batchelor,Clerk of the Board of Supervisors and County Administrator By J, Deputy cc: County Administrator Exec. Dir. , Housing Authority f Conga TO: BOARD OF SUPERVISORS f ._ Costa FROM: Harvey E. Bragdon t � County Director of Community Development DATE: May 23, 1995 SUBJECT: Single Family Mortgage Financing Programs/AB 997 SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT position and sponsor AB 997 (Hauser); AUTHORIZE the Chair to execute letters of support and, sponsorship to the County's State legislative delegation; and AUTHORIZE the County's legislative lobbyist - Heim, Noack, Kelly & Spahn - to work with other interested parties in support of AB 997. FISCAL IMPACT None. The County has always supported its single family homeownership programs with administrative fees gained from the sale of single family mortgage revenue bonds or application fees generated from Mortgage Credit Certificate programs. No net costs to the County General Fund are incurred. BACKGROUND/REASONS FOR RECOMMENDATIONS Since 1982, the County of Contra Costa has issued Single family Mortgage Revenue Bonds and Mortgage Credit Certificates in an amount sufficient to finance ear 6,000 ortgages CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RI-COMM&NIbATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF ERVISORS_ I HEREBY CERTI THAT THIS IS A UNANIMOUS ( SENT ) TRUE AND C RECT COPY OF AN AYES:. NOES: ACTION EN AND ENTERED ON THE ABSENT: A AIN: MIN S OF THE BOARD OF ERVISORS ON THE DATE SHOWN. Source: Jim Kennedy 646-4208 cc: Community Development ATTESTED County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS via Redevelopment ND COUNTY ADMINISTRATOR CGMS Orrick Herrington & tcliffe Developers BY DEPUTY Lenders Real E to Firms C -ALHFA JK:Ih srat 8/ab997bos for low and moderate income first time homebuyers. The County has been among the more successful local participants in the State of California in providing this mortgage assistance for low and moderate income first time homebuyers. On January 10, 1995, your Board authorized the submittal of an application for an additional $60,000,000 Private Activity Bond Authority for Mortgage Credit Certificates, and on March 21, 1995, your Board authorized the submittal of an application for Single Family Mortgage Revenue Bonds in the amount of$90,650,000. The County submitted these applications pursuant to procedures of the California Debt Limit Allocation Committee (CDLAC), a unit administered by the State Treasurer's Office. The Committee consists of the Governor, the Treasurer, and the State Controller. Subsequent to the County's applications, CDLAC proposed and subsequently adopted revised procedures that substantially altered the allocation system for single family homeownership programs. CDLAC adopted revised procedures that stipulate that California Housing Finance Agency (CHFA) is to be the "primary provider of single family housing assistance in the State of California." The procedures then stipulate that amounts designated for single family homeownership programs be allocated on a per capita basis by county, and that a reduction to that amount based on CHFA mortgage activity in that County in the prior year be imposed. These factors resulted in a zero allocation for both the County's application for Single Family Bonds and also Mortgage Credit Certificates. The County had gone on record opposing the revised procedures of the California Debt Limit Allocation Committee, but our appeals fell on deaf ears. The effective result of the revised procedures is to eliminate the availability of Private Activity Bond Authority for Single Family Mortgage Bond programs and Mortgage Credit Certificate programs in counties where the California Housing Finance Agency is even somewhat active. In 1994, CHFA provided 152 mortgages for first time homebuyers in Contra Costa County. We suspect most of that mortgage activity was in East County, however, CHFA has not been forthcoming with information on their mortgage portfolio. AB 997 would re-introduce into California State Law a provision that was mistakenly dropped out in the 1994 Legislative Session. This provision would require the California Debt Limit Allocation Committee to provide at least two thirds of its housing funds to local issuers versus state issuers. The bill could also serve as a vehicle for developing a rational formula allocation using reasonable criteria. The action of the California Debt Limit Allocation Committee is inconsistent with State Law and previous state policy, particularly as it relates to local responsibilities for the provision of housing needs. Every jurisdiction in the State of California must adopt a Housing Element, in which it is stipulated how it will address identified local housing needs. The California Department of Housing and Community Development has been vigorous in its enforcement of the Housing Element requirement. The Department of Housing and Community Development has recommended that jurisdictions engage in implementing housing programs such as mortgage revenue bonds and mortgage credit certificate programs when there are mortgage-deficient areas or underserved populations in the community. This inconsistency between actions of state agencies leaves local agencies with the responsibility but without one of the major tools to successfully address its obligations. The California Debt Limit Allocation Committee has also stated that CHFA is a more efficient issuer of mortgage assistance programs. This comment is erroneous when compared to most, if not all, local mortgage assistance programs. Local agencies have continually provided more flexible programs at a lesser cost, and at equal or better rates than the California Housing Finance Agency. Most urban counties in California, including Contra Costa, have created proficient administrative systems that should not be dismissed by a committee of state officials. The California Housing Finance Agency has a role in the State of California. Its role is not to supersede local agencies when local capacity exists, but rather to play a mutually complementary role. This is certainly the case for Contra Costa County. The local'builder, lender and real estate industries have been apprised of this action, and will be mobilizing to diligently pursue the preservation of local single family mortgage assistance programs. It is our hope that rationality can be re-introduced into an acknowledged already difficult situation through legislative action and direction. The Board of Supervisors Contra CerkB�hBoard Costa and County Administration Building County Administrator 651 Pine Street, Room 106 (510)1146-2371 Martinez,California 94553-1293 County -Jim Rogers,1st District Jeff Smtth,2nd District _s. = Gayle Bishop,3rd District Mark DeSaulnier,4th District .< Tom Torlakson,5th Districto4 September 26, 1995 ST'9 COUK'� Governor Pete Wilson Governor's Office, State Capitol Legislative Unit Sacramento, CA 95814 The Honorable Pete Wilson, Governor: The County of Contra Costa strongly supports AB 997(Hauser), and urges you to sign this important bill for local housing finance and development. AB 997 (Hauser)will restore to local jurisdictions two-thirds of the state allocation of housing resources that was previously a part of state law, and will allow local decision making regarding the development of first time homebuyer homes and programs in local communities. Contra Costa County firmly believes that local programs most effectively address local conditions, and that local programs have the ability to most effectively assess the needs of the communities they serve. Local housing programs are more responsive to local needs and local programs meet local market conditions. The changes that have occurred in the California Debt Limit Allocation Committee's allocation process have eliminated Contra Costa County's ability to issue mortgage revenue bonds or mortgage credit certificates. Under the current State Housing Element Law, local jurisdictions have an obligation to provide programs that will address the needs of affordable housing in their communities. The ability of local jurisdictions to leverage single family bond programs and mortgage credit certificate programs with other local programs is essential in carrying out affordable housing programs that will work in our communities. AB 997 (Hauser) will restore the ability of local jurisdictions to operate effective affordable housing programs, as well as, provide a balanced effective way for homebuyers in our communties to utilize these important housing programs. We appreciate your consideration of our request. Sincerely, Gayle Bishop, Chair Board of Supervisors cc:Board Members California Association of Realtors CCC Board of Realtors California Association of Mortgage Brokers