COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Human Services Agency

Office of Housing

 

DATE:

March 15, 2002

BOARD MEETING DATE:

April 2, 2002

 

TO:

Honorable Board of Supervisors

FROM:

Maureen Borland, Director, Human Services Agency
Steve Cervantes, Director, Office of Housing

SUBJECT:

THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE FOR MORTGAGE CREDIT

 

Recommendation

Adopt a resolution:

1. Authorizing the Director of the Office of Housing to file an application with the California Debt Limit Allocation Committee for an allocation of the State's Qualified Private Activity Bonds to be converted to Mortgage Credit Certificates.

2. Authorizing the Director of the Office of Housing to file subsequent annual applications.

3. Authorizing the set-aside of Community Development funds equal to .5% of the allocation amount requested, not to exceed $100,000, as evidence of the State's required performance deposit.

4. Authorizing the County Manager to execute the State's Deposit Certificate form.

 

Background

The Mortgage Credit Certificate program provides financial assistance to eligible first-time homebuyers in the form of annual federal tax credits of up to 15% of the mortgage interest paid. The credit effectively increases the recipient's disposable income, thus increasing their purchasing power.

 

Since 1989, the County has issued over $43 million in certificates, which have assisted 1,683 low and moderate-income families with the purchase of their first home. All of the cities in San Mateo County, with the exception of the Town of Hillsborough, have executed cooperation agreements authorizing the County to administer the program on their behalf, making the program available countywide. At this time, the County administers this program at no charge to the participating cities.

 

The Mortgage Certificate Program is well established and an integral part of the various First-Time Homebuyer Programs offered throughout the County that has contributed significantly to the successful placement of new home owners throughout the County.

 

Discussion

The California Debt Limit Allocation Committee distributes what it refers to as a "fair share" portion of State Ceiling on Tax-exempt Private Activity Bonds, based on the agency's (San Mateo County) population as a percentage of the total population of the State. Accordingly, the County's 2002 allocation, based on its percentage of State population (2.068%) will be $7,035,557 or $1,758,890 in Mortgage Credit Certificate authority.

 

Vision Alignment

This resolution with the California Debt Limit Allocation Committee keeps the commitment to, Offer a full range of housing choices and goal number 9: Housing exists for people of all income levels and for all generations of families. The program which this resolution authorizes, contributes to this commitment by assisting low and moderate-income families with the purchase of their first home by subsidizing their purchase with federal tax credits.

 

Fiscal Impact

Application fees and the County's administrative expenses are paid by fees charged to program applicants, participating mortgage brokers and lenders, and revenue earned by Housing and Community Development for monitoring bond-funded housing developments. No general fund revenues are used.

 

The State required performance deposit set aside remains in County control and is released upon issuance of the first Mortgage Credit Certificate.