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9-27-79
RESOLUTION NO. 79-179
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA OPPOSING HR 3712
WHEREAS, the provision of safe and decent housing
through new construction and rehabilitation is an important
goal of local government; and
WHEREAS, there are only a limited number of
governmental programs available to achieve said goal; and
WHEREAS, the level of federal housing assistance
provided through the "Section 8" program is expected to
decrease during the next fiscal year; and
WHEREAS, mortgage revenue bonds have the potential
of furthering national homeownership objectives, stimulating
the housing market which in turn stimulates other parts of the
national economy, creating additional sources of home
financing revenue, and expanding and revitalizing the national
supply of housing; and
WHEREAS, the "SB 99" program in California provides
redevelopment agencies with the opportunity to provide tax-
exempt mortgage financing for newly constructed dwelling units
within targeted, blighted areas, and, under certain
circumstances, on an areawide basis; and
WHEREAS, the "Marks-Foran" program permits similar
tax exempt financing for residential rehabilitation to
redevelopment agencies, housing authorities and
municipalities; and
WHEREAS, Congress is now considering HR 3712 and
other measures which will seriously restrict the use of such
tax-exempt "municipal" financings.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SANTA ANA:
1. That the City Council hereby proclaims its
opposition to HR 3712 unless amended to be consistent with
following:
the
Se
Delete the 5% annual limitation on issuances
within a state and the prohibition against
using bond proceeds to acquire or replace
existing mortgages.
be
Amend the income limitation on home buyers to
require that a buyer's income not exceed the
historical income standards which would support
the mortgage on the dwelling.
Ce
Amend the limitation on mortgage loans to
include an automatic inflation factor and to
permit separate data bases for existing housing
and new production.
de
Amend the definition of a "targeted area" to
permit designation upon findings by the local
agency that the area meets the requirements for
a redevelopment area under state law.
e®
Amend the limitation on prior home ownership to
exempt persons displaced by a government action
and to permit the limitation to lapse after
some reasonable period.
fe
Amend Section 4(b)(1)(D) to delete the June 16
deadline for State authorization and to expand
the non-profit corporation language to include
all instrumentalities of a local government.
2. That the City Council hereby proclaims its
opposition to the following three (3) substitute proposals to
be considered by Congress under a modified closed rule:
ae
A proposal by Rep. Andy Jacobs (D-Ind) which
would replace the mortgage bonds with 12%, non-
refundable tax credits for low-income, first
time home buyers.
be
A proposal by Rep. W. Henson Moore, (R-La) to
provide a $100 tax exclusion for interest
earned on savings deposits in mortgage pools of
lending institutions.
Ce
A proposal by Rep. James R. Jones, (D-Okla),
calling for a two year moratorium on mortgage
bond sales to allow Congress to study the
issue.
3. That the Clerk of the council is directed to
distribute copies of this Resolution to Senators Cranston and
Hayakawa and to all members of the California Congressional
Delegation.
ADOPTED this 1st
1979, by the following vote:
day of October ,
AYES: COUNCILMEN:
NOES: COUNCILMEN:
Bricken, Griset, Luxembourger,
Markel, Serrato, Ward, Yamamoto
None
ABSENT: COUNCILMEN: None
ATTEST:
APPROVED AS TO FORM:
KEITH L. GOW, CITY ATTORNEY