1985 RES 4562 - Laserfiche WebLink

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I. INTRODUCTION On July 19, 1984, Congress enacted into law the Tax Reform Act of 1984. This Act imposes certain requirements on issuers of qualified single family mortgage bonds and mortgage credit certificates. One of these requirements is that issuers publish a statement of their policies with respect to housing, development, and low-income housing assistance and report on their compliance, for the one-year period preceding the date of the report, with the intent of Congress that qualified mortgage bond issues and mortgage credit certificates assist lower income families to afford home ownership before assisting higher income families. In order to qualify for a federal tax exemption for interest on qualified mortgage bonds to be issued in 1985, this statement must be published prior to March 11, 1985. As the City of Colton (the "City") plans to issue qualified single family mortgage bonds in 1985, the following report is being published in order to comply with the requirements of the Tax Reform Act of 1984 and the Regulations thereunder. II. POLICIES AND GOALS A. Housing Policies and Goals. The California State Legislature has found and declared in California Health and Safety Code 52001 that: there exists within the State of California a serious shortage of decent, safe, and sanitary housing which is affordible to many persons in the state. 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. In order to remedy this adverse effect on potential home buyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for the single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market. The California State Legislature has additionally found and declared in California Health and Safety Code 52002 that: it is necessary and essential that counties and cities be authorized to directly and indirectly make long-term, low-interest loans to persons not presently eligible for financing through private sector lending institutions to finance construction, rehabilitation, and acquisition of homes in order to encourage investment and upgrade local areas. The City of Colton plans to issue qualified single family mortgage bonds (the "Bonds") in 1985 in furtherence of the above -stated policies of the California State Legislature and in conformance to the following policies and goals: