Loading...
HomeMy WebLinkAbout1994-02-10; Housing Commission; MinutesMinutes of: Time of Meeting: Date of Meeting: Place of Meeting: CALL TO ORDER: HOUSING COMMISSION 6:00 P.M. February 10, 1994 CITY COUNCIL CHAMBERS -. Chairman Scarpelli, called the Regular Meeting to order at 6:26 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Noble. ROLL CALL: Present: Absent: Staff Present: Chairman Scarpelli, Commissioners Avis, Escobedo, Noble, and Sato Commissioners Calverly, Peterson, Rombotis, and Wellman Reggie Harrison, Housing Program Manager Debbie Fountain, Senior Management Analyst Leilani Hines, Management Assistant Clint Phillips, Senior Management Analyst COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no requests to address the Commission. APPROVAL OF MINUTES: ACTION: VOTE: AYES: NOES: ABSTAIN: NEW BUSINESS: Motion by Commissioner Noble, and duly seconded, to approve the Minutes of the Regular Meeting of January 13, 1994, as submitted. 5-0 Chairman Scarpelli, Commissioners Avis, Escobedo, Noble, Sato None None 1. SAN DIEGO COUNTY REGIONAL MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM COOPERATIVE AGREEMENT -Request for approval of a recommendation to approve a cooperative agreement between the City of Carlsbad and the County of San Diego for participation in a San Diego County Regional MCC Program. Clint Phillips, Senior Management Analyst, reviewed the background of the request and stated that in an effort to provide low and moderate-income households with home ownership opportunities, the Housing and Redevelopment staff has been meeting with staff of the County of San Diego and other local cities to discuss and evaluate the effectiveness of operating a regional Mortgage Credit Certificate (MCC) first time home buyer program. As a result of these meetings, it has been determined that a regional approach would be advantageous because it would centralize the administration of the MCC Program, and allow cost sharing between participating cities within San Diego County. It would also standardize the process, - HOUSING COMMISSION February 10, 1993 PAGE2 making it easier to use and understand by all those involved. The regional program would serve all qualified first time home buyers within each participating city/jurisdiction. The MCC Program, authorized by the Tax Reform Act of 1984, is a publicly sponsored financial assistance program which provides assistance to first time home buyers for the purchase of single family housing. The regulations allow a home buyer to qualify if the household income does not exceed $41,300 for a family of one to two persons, or $47,495 for a family of three or more persons. A qualified home must have a purchase price at or below $221,850 for a new home, and $148,230 for an existing home. An MCC can only be used for new or existing single family homes, condominiums, half-plexes, or town houses. Duplexes, triplexes, or four-plexes do not qualify as eligible structures. The home buyer applies for an MCC through any of the participating lenders at the same time a formal application is made for a mortgage loan. The MCC operates as an IRS tax credit. With an MCC, the qualified home buyer can take a federal income tax credit of 20% of the annual interest paid on the mortgage. The tax credit reduces the federal income taxes due the government, resulting in an increase in earnings for the home buyer. The increased earnings enables the buyer to qualify for a mortgage loan when they may not have been able to do so otherwise. Each participating city would be required to sign a cooperative agreement with the County of San Diego to take part in the program. This agreement will specify the number of MCC's to be allocated as well as the shared administration costs. Carlsbad would be allotted approximately 25 MCCs per year. The estimated cost to the City would be $252 per MCC. Staff feels that the shared program is an excellent way to provide affordable housing to low and moderate income families, and recommends approval of the cooperative agreement. Chairman Scarpelli opened the public testimony and issued the invitation to speak. There being no persons desiring to address the Commission on this topic, Chairman Scarpelli declared the public testimony closed and opened the item for discussion among the Commission members. Commissioner Avis stated that the County is sometimes overburdened with paperwork and he would like assurance that they will be responsive. Mr. Philips replied that once the City of Carlsbad receives their share, the County would be out of it. Carlsbad's share of the certificates would be managed by Housing and Redevelopment staff, specifically he and Leilani Hines. Commissioner Avis inquired about the consequences of renting or selling a home which was acquired under the program. Mr. Philips replied that the home must be owner-occupied. If the home is sold, there would be a recapture of the tax credit. Commissioner Sato inquired what would happen if the applicanfs income increased after the purchase. Mr. Philips replied that there are no restrictions once the applicant has qualified. As the loan is repaid, the balance becomes lower and the tax credit lowers as well. Commissioner Escobedo was interested to know that condominiums would qualify under the program because they are not as expensive as single family homes. Commissioner Avis inquired if institutional lenders would be willing to participate in the program. Chairman Scarpelli replied that lenders must provide affordable housing loans per the Community Reinvestment Act. In addition to the MCC program, there are also many methods available for waivers of fees and reduced down payments. A down payment can now be as low as 3%. HOUSING COMMISSION February 10, 1993 PAGE3 ACTION: Motion was made by Commissioner Noble, and duly seconded, to approve Resolution No. 94-005 recommending to the City Council approval of a Cooperative Agreement adopting the San Diego County Regional Mortgage Credit Certificate Program in the City of Carlsbad in cooperation with the County of San Diego. VOTE: AYES: NOES: ABSTAIN: ADJOURNMENT: 5-0 Chairman Scarpelli, Commissioners Avis, Escobedo, Noble, Sato None None By proper motion, the Regular meeting of February 10, 1994 was adjourned at 6:50 p.m. Respectfully submitted, v~F~ \8.)EVANBECKER \J Housing and Redevelopment Director BETTY BUCKNER Minutes Clerk