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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 4, 2008 <br />TITLE: <br />CLERK OF COUNCIL USE ONLY: <br />RESOLUTION IN SUPPORT OF THE UNITED STATES <br />PRESIDENT'S LEGISLATIVE PACKAGE ADDRESSING <br />HOMEOWNERSHIP PRESERVATION <br />.__~ <br />CITY MANAGER <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1S` Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Adopt a resolution in support of the United States President's <br />legislative package addressing homeownership preservation. <br />DISCUSSION <br />The preservation of homeownership has taken on additional significance <br />this past year as sub-prime mortgage lending has impacted homeowners <br />throughout the United States. Santa Ana has taken a leadership role in <br />Orange County to assure that our residents are able to access all <br />available information and resources to enable them to make informed <br />decisions regarding their home and sub-prime or adjustable rate home <br />mortgage. <br />Efforts underway to preserve homeownership in Santa Ana will also benefit <br />from a package of initiatives introduced by President George W. Bush <br />which include: <br />• Modernization of the Federal Housing Administration (FHA) to allow <br />greater numbers of households to access FHA mortgage insurance. <br />• Reform of the Internal Revenue Code, to exclude the forgiveness of <br />mortgage debt as taxable income and to allow cities and states to <br />issue tax-exempt mortgage bonds to allow the refinance of existing <br />loans. <br />• Appropriation of $180M to support mortgage counseling for households <br />at risk of losing their homes due to subprime mortgage loans. <br />• Reform of Government Sponsored Enterprises like Fannie Mae and <br />Freddie Mac to increase conforming loan limits and allow these <br />institutions to provide further liquidity in the mortgage markets. <br />The proposed resolution recognizes the impact of subprime mortgage <br />lending in our community and addresses Santa Ana's support of this <br />important package of federal initiatives. <br />55A-1 <br />