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HomeMy WebLinkAbout85-70 - ResolutionsRESOLUTION NO. 85-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA APPROVlNG HOUSING POLICY REPORT OF THE CITY OF RANCHO CUCAMONGA UNDER INTERNAL REVENUE CODE SECTION 103A AND DIRECTING ITS PUBLICATION RESOLVED, by the City Council of the City of Rancho Cucamonga, California, as follows: WHEREAS, Section 103A(J)(5) of the Internal Revenue Code of 1954, as amended, as implemented by proposed and temporary regulations of the Department of the Treasury, Section 6a.103A-2(1), requires the applicable elected representative of an issuer of qualified mortgage subsidy bonds to publish, after public hearing, a housing polley report; and WHEREAS, this Council is the applicable elected representative of the City of Rancho Cucamonga which City proposes to issue in 1985 qualified mortgage subsidy bonds; and WHEREAS, this Council has received a draft housing policy report dated September 30, 1984, and has reviewed each and every part thereof and this Council has conducted a duly noticed public hearing; and WHEREAS, it is in the public interest and for the public benefit that said housing policy report be approved and published. NOW, THEREFORE, it is hereby ORDERED and DETERMINED as follows: 1. The City Manager of the City is hereby authorized and directed to prepare a summary of the comments made at the aforesaid public hearing and to cause said summary to be included as a part of the Policy Report uhder Section 103A. 2. The report of the City of Ranoho Cucamonga entitled, "Policy Report Under Section 103A", and dated September 30, 1984, is hereby approved with the inclusion of said s,Jmm~ry of comments. 3. The Mayor of the City, as a member of this Council, is hereby authorized and directed to execute said report on behalf of this Council as the duly elected representative of the City. 4. This Council does hereby publish the Report by authorizing and directing the City Clerk, and the City Clerk is hereby so authorized and directed, to make said Report available in the Office of the City Clerk for distribution to the public. 5. The City Clerk of the City is hereby authorized and directed to file the Report with the Internal Revenue Service at the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255. Resolution No. 85-70 Page 2 ATTEST: PASSED, APPBOVED, and ADOPTED this 6th day of MARCH, 1985. AYES: Wright, Buquet, Mikels, Dahl, King NOES: None ABSENT: None ~Aut~l e~ Resolution No. 85-70 Page 3 HOUSING POLICIES REPORT Section 103A(3)(5), as added by Section 611 of the Tax Reform Act of lgg4. requires the filing with the Internal Revenue Service of a housing policies report prior to the issuance of qualified mortgage bonds. The substantive and procedural requirements pertaining to such a report are set forth in proposed and temporary regulations section 6a.lO3A-2<l) and are more particularly described below: I. Content of Report A. Cover Page. The cover page of the report must contain the name of the Issuer of the Proposed issue of qualified mortgage bonds during the forthcoming year, the tax identification number ("EID Number") of SuCh issuer, and the title, "Policy Report Under Section 103A." 8. General Content. The report must contain four sections: (1) a statement of policies and goals regarding housing. development. and low-income housing assistance: (2) an assessment of compliance with prior report; (3) an assessment of compliance with Congressional intent: and (4) a summary of comments received at public hearing. These sections are discussed below. (1) Policy Statement. The policy statement section is to be divided into three parts, the first to discuss policies and qoals regarding housing, the second to discuss Policies and gotis re~tng development and the third to discuss policies and goals reqardtng low-income housing asslstanct. 'These parts are discussed below. (A) The statement as to housing policies and goals must include a statement as to (1) whether the proceeds of the proposed issue of bonds will be used to provide financing for acquisition of residences, to provide qualified home improvement loans, or to provide qualified rehabilitation loans; (ti) whether all or a portion of the proceeds will be targeted to new, existing, or any other particular class or type of housing; (il)) how the existence of a need or absence of a need for such targeting has been determined; (iv) the method by which the proceeds of the proposed bonds will be targeted; (v) any other pertinent information relating to the issuer's housing Policies; and (vii how the housing Policies related to the issuer's development and low-income housing assistance policies. Resolution No, 85-70 Page 4 (8) The statement as to development policies and goals must include (i) a statement as to whether all or a portion of the proceeds will be targeted to specific areas (including targeted areas as described in the law); (ill a description of the areas to which the proceeds will be targeted: (iii) a summary of the reasons for selecting such areas; (iv) a Statement as to whether Proceeds targeted to each area are to be used to finance redevelopment of existing housing or new construction; <v) any other pertinent information relating to the issuer's development policies; and (vii a statement as to how the development policies relate to the iSsuer's housing and low-income housing assistance policies. (C) The statement as to low-income housing assistance ~oltcies and goals must include a statement as to (1) whether all or a portion of the proceeds of the proposed bonds will be targeted to low-income (meaning, 501 of median income), moderate-income (meaning. 80~ of median income) and median-income (meaning, 100l of median income) families; (it) the method by which the proceeds will be targeted to such families; (itS) any other pertinent information relating to the isSuer's lOw-lncome housing policies; and (lv) how the low-income housing assistance policies relate to the lssuers housing and development policies. (The term "family" means two or more persons related by blood, marriage, or operation of law. The term "median income" means the median income for the area. as determined with adjustments for smaller and larger families by HUD.) (2) Assessment of Complfance with P~ior Report. The section constituting an assessment of compliance ~ith the prior report must assess the compliance of the issuer during the twelve-month period ending with the "date of the report" (see below) with the statement of housing, development. and low-income housing assistance policies with respect to qualified mortgage bonds and mortgage credit certificates that were set forth in the report. if any, published in the preceding year, including a statement as to whether the issuer successfully implemented its policies and achieved its goals and, if not, an analysis of the reasons for such failure. The term "date of the report", for the purpose of the above paragraph, means the last day of the twelve-month period for which such assessment of compliance is made. The date of the report must be the last day of September, October, or November, and an tssuer must use the same date of the report in each year. The "date of the report" for the purpose of the assessment of compliance is not the date that the report is published or filed. Resolution No. 85-7~ Page 5 (3) Assessment of Compliance with Intent o? Congress. The section constituting an assessment of compliance with the intent of Congress must assess the compliance of the issuer during the twelve-month period ending with the "date of the report" <see below) with "the intent of Congress that State and local government are expected to use their authority to issue qualified mortgage bonds and mortgage credit certificates to the greater extent feasible (taKing into account prevailing interest rates and conditions in the housing market) tO assist lower income families to afforq home ownership before assisting higher income families." This section must include a description of <l) the method used by the tssuer to distribute proceeds of bonds. <2) whether and how that method enabled the tssuer to assist lower income families before higher income families. anq (3) any income levels that have been defined and used by the Issuer in connection with the distribution of the Proceeds. (No specific definition of lower and higher income is imposed by the law on issuers.) The term "date of the report" has the same meaning for this section of the report as above-described for the preceding section. (4) Summary of Comments. This section of the report must contain a summary of the comments on the Proposed report which were received at the public hearing described below. II. Procedural Requirements. A. Responsible Parties (1) Author of Report. The report is the report of the Proposed tssuer of the bonds or the governmental unit on whose behalf bonds are to be issued. (2) Publisher of Report. The report must be "published" <see below) by the "applicable elected representative" of the governmental unit which is the tssuer of the bonds or the unit on whose behalf bonds are to be issued. The applicable elected representative of a city is the city council: the applicable elected representative of a county is the board of supervisors. the appiicable elected representative of a redevelopmerit agency or housing authority is the city council of the city in which the redeve)opment agency or housing authority is located. or. in the case of a county redeve)opment agency or a county housing authority. the board of supervisors of the county in which the redeve)opment agency or housing authority is located. Resolution No. 85-70 6 (3) Holder of the Hearing. While "compliance with State procedural requirements . . . will generally assure that the hearing satisfies the requirements." the hearing may De conducted by any individual appointed or employed to perform such function by the government unit. its agencies or the issuer. As a general proposition. therefore, the hearing should be held by the applicable elected representative which is to be the publisher of the report. (4) Multiple Jurisdictions. With respect to the author of the report. a single report may be filed in the case of an issuer that issues qualified mortgage bonds on behalf of two or more governmental units (such as a Joint powers authority), but in such event, the report must be signed either by the applicable elected representative of each governmenta) unit on whose behalf obligations have been issue~ during any preceding calenOar year. or by the Governor of the state in which the issuer is located. With respect to the hearing. if an iSsuer issues bonds on behalf of two or more governmenta] units, each governmental unit on whose behalf qualifieO mortgage bon~s were issued during the preceding calendar year and each governmental unit on whose behalf the issuer reasonably expects to issue qualified mortgage bonds during the succeeding calenOar year must hold a public hearing. A multiple Jurisdiction tssuer may hold a combined hearing if the combined hearing is a joint undertaking that provides all residents of the Participating governmental units a reasonable opportunity to be heard. The location of a combineO hearing is presumed to provide reasonable opportunity for all affected residents to be heard if it is no farther than lO0 miles from the seat of government of each participating governmental unit beyond whose jurisdiction the hearing is to be held. B. Public Hearing. (1) Notice. (A) The hearing must be preceded by notice published once in a newspaper of general circulation within the boundaries of the issuer not less than 14 full days before the hearing. (Thus. if the notice is published on day one, then the hearing may be held on day fifteen.) (B) The notice of hearing must contain the following information: (i) the time and place for hearing; (ill any applicable limitations regarding participation in such hearing; (tit) the manner in which affected residents may obtain copies of the proposed report prior to the hearing; and (iv) a description, in brief and summary terms, of the report. Resolution No. 85-70 Page 7 <2) The Nearing. The hearing must be a "forum providing a reasonable opportunity for interest individuals to express their view,both orally and in writing on the report that the applicable elected representative proposes to publish. Local nearing procedures apply. Reasonable requirements on persons who wish to participate may be imposed (such a requirement that remarks be limited to 10 minutes). The applicable elected representative neeO not be present at the hearing. B. Publication of Report. The reBort must be published after a public hearing following reasonable public notice. "Publication" for the purposes of this requirement means making copies of the feBoft available for distribution to the public. Reasonable public notice of the manner in which copies of the report may be obtained must be provided and such notice may be incluOeO as a part of the notice of public hearing. C. Filing of Report. After hearing and publication of the report, the report must be filed with the Internal Revenue Service Center, Philadelphia. Pennsylvania t9255, The filing of the lgB4 report must take place not later than March ll, 1985. The filing of subsequent reports must take place not later than the end of the year <DecemBer 31) prior to the year in which qualified mortgage bonds are proposed to be issued. D. Summary of Procedure. Thus the applicable procedure is as follows: Preparation of report. (li) Publication of notice of hearing (iii) Holding of hearing (iv) Approval of report by applicaple elected representative. (v) Publication (maKing available to the public) of the report. (vi) Filing of the report.