HomeMy WebLinkAbout229 - Ordinances ORDINANCE NO. 229
AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA,
RELATING TO THE ESTABLISHMENT OF A HOME MORTGAGE FINANCING
PROGRAM FOR MODERATE AND LOW-INCOME FAMILIES FOR THE CITY OF
RANCHO CUCAMONGA
The City Council of the City of Rancho Cucamonga does ordain as
follows:
WHEREAS, the City Council of the City of Rancho Cuca~onga (the "City")
proposes to undertake a home mortgage financing program (the "Program")
pursuant to Chapters 1-5 of Part 5 of Division 31 of the Health and Safety Code
of the State of California (the "Act") for persons and families within the
income limits established by the Act, and proposes to issue revenue bonds
pursuant to the Act to provide funds for the Program;
WHEREAS, there is a shortage of decent, safe and sanitary housing,
particularly of housing affordable by persons in the lower end of the
purchasing spectrum, and a consequent need to encourage the construction of
homes affordable by such persons and otherwise to increase the housing supply
for such persons in the City; and
WHEREAS, the authorization, issuance and sale of mortgage revenue
bonds under the Act represents a means of providing funds at below market rates
for the purpose of financing such housing;
NOW, THEREFORE:
SECTION l: Adoption of Rome Mortgage Financing Program
Based upon the findings of the City Council, the City hereby adopts
the Program pursuant to the Act for the purpose of increasing the housing
supply for moderate and iow-income families in the City.
SECTION 2: Findings
The City Council hereby finds and declares that:
(a) Decent housing is an essential motivating force in helping people
to achieve self-fulfillment in a free and democratic society;
(b) A healthy housing market is one in which residents of this state
have a choice of housing opportunities and one in which the housing consumer
may effectively choose within the free market;
(c) There exists within the City a shortage of housing available to
moderate and low-income persons, as such persons are now or hereafter defined
by the provisions of the Act, and that this shortage is exacerbated during
periods of rising interest rates, particularly as high interest rates have the
effect of diminishing the number of otherwise creditworthy buyers from
qualifying for private sector mortgage capital sources, and in order to remedy
this adverse effect on potential homebuyers on the low end of the purchasing
spectrum, it is necessary to implement a public program to reduce the cost of
mortgage financing for single family purchases for those persons unable to
compete for mortgage financing in the conventional mortgage market; and
(d) It is necessary, in order to implement a public program to reduce
the cost of mortgage financing, to authorize long-term, low-interest mortgages
to persons not presently eligible for financing through private sector lending
institutions to finance construction, rehabilitation and acquisition of homes,
and in order to finance the Program, to issue mortgage revenue bonds to fund
the Program.
SE6'£ION 3: Ltberal Coustruction
The provisions of this Ordinance, being necessary for the welfare of
the City and its inhabitants shall be liberally construed to effect the purpose
of the Program.
Ordinance No. 229
Page 2
SECTION 4: EffectLve Date
The Mayor shall sign this Ordinance and the City Clerk shall cause the
same to be published within fifteen (15) days after its passage at least once
in The Daily Report, a newspaper of general circulation published in the City
of Ontario, California, and circulated in the City of Rancho Cucamonga,
California. This Ordinamce will take effect immediately upon adoptiom pursuant
to Health and Safety Code Section 52031. The facts constituting the public
purpose of this Ordinance are the findings of the City Council set forth in
Section 2.
PASSED, APPROVED, and ADOPTED this 1st day of August, 1984.
AYES: Wright, Buquet, Mikels, Dahl, King
NOES: None
ABSENT: None
n -D. Mikels, 'Mayor
ATTEST:
Beverly A. Authelet, City Clerk