1985 RES 4562 - Laserfiche WebLink

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The California State Legislature has additionally 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 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 plans to issue qualified single family mortgage bonds (referred to above as 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: (1) Targeting of Proceeds to Areas. Existing federal tax laws require that at least 20% of the proceeds of a single family mortgage bond issue be set aside and made available for owner financing within targeted areas, as that term is defined and used in Section 103A of the Internal Revenue Code of 1954, as amended, in the event there are targeted areas within the boundaries of an issuer. Targeted areas within the City are set forth below. (2) Description of Target Areas. The following Census Tracts are Targeted Areas as defined by the Code; #68, #69, #70. (3) Selection of Target Areas. Targeted Areas include only those areas of the City falling within the definition of that term under Section 103A of the Internal Revenue Code. It is not expected that Bond proceeds will be targeted to specific areas beyond that called for in Section 103A of the Internal Revenue Code of 1954, as amended.