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<br />. <br /> <br />items are processed through the normal finance and purchasing <br />procedures of the City. The Agency retains the right to prior <br />approval of expenditures by the Commission which exceed the <br />project budget by more than five percent (5%). <br /> <br />In addition, the Agency has delegated to the Commission the <br />authority to approve contracts and agreements arising from the <br />operations budget. However, the Agency reserves the right of <br />final approval if the contract or agreement exceeds $25,000. <br /> <br />The Commission submits quarterly financial reports to the Agency <br />and all actions taken by the Commission, not requiring Agency <br />action, are placed on the Agency concent calendar for information <br />purposes. Also the Agency and Commission try to conduct periodic <br />meetings, such as joint study sessions, to review the Commission's <br />progress and to discuss the Agency's concern over any project <br />implementation. <br /> <br />The Executive Director explained that the agreement was drafted at <br />the request of the Agency to relieve them of the basic <br />housekeeping functions. Several projects, such as the OCTD <br />facilities must be handled by the Agency because they involve non- <br />Agency funds. <br /> <br />. <br /> <br />Agency Chairman Ward <br />functioning very well <br />excellent job. Agency <br />role appears to have <br />established. <br /> <br />stated that the agreement had been <br />and that the Commission had been doing an <br />member Serrato noted that the Commission's <br />expanded greatly since the agreement was <br /> <br />SB 99 AND MARKS FORAN BOND ISSUES <br /> <br />. <br /> <br />Commissioner Jessee requested the Executive Director to explain <br />the current status of the SB 99 and Marks Foran bond issues. The <br />Executive Director explained that the Agency's proposed SB 99 bond <br />issue for the 315 unit market rate condominium project, and the <br />City's Marks Foran housing rehabilitation loan program bond issue <br />have been seriously jeopardized by the introduction of HR 3712 by <br />Congressman Al Ullman, Chairman of the House Ways and Means <br />Committee. The legislation provides for the removal of the tax <br />exempt status of state and local government mortgage secured <br />revenue bonds. There are exceptions for rental projects, but the <br />effect of HR 3712 is to "kill" nearly all pending SB 99 and Marks <br />Foran issues in the State of California. Though HR 3712 is only <br />pending legislation, it provides for an effective date that will <br />effect all mortgage secured obligations issued after April 24, <br />1979. This retroactive provision clouds the tax exempt status of <br />all pending issues even before the bill becomes law. A bond <br />opinion could be written guaranteeing tax exempt status at the <br />present time, but a statement to the effect that HR 3712 is <br />pending and would render an issue taxable would have to be <br />included. <br /> <br />The Executive Director stated that he had gone to Washington, D.C. <br />the previous week to testify against the bill before the House <br />Ways and Means Committee. It appears that the Committee may be <br />willing to amend the bill to allow tax exempt bonds for certain <br />types of low and moderate income housing and rehabilitation. In <br />addition, the legislation may be amended to allow issues such as <br />the Agency's and City's, where official action had been taken to <br />proceed. Approximately 170 people testified against the bill in <br />two days of public hearings. <br /> <br />~ <br /> <br />-7- <br />