Agenda

Return

C. 62

To:	Board of Supervisors
From:	Catherine Kutsuris, Conservation and Development Director
Date:	January 7, 2014

Contra

Costa

County

Subject:

Mortgage Credit Certificates: Application for $7,067,129 in Private Activity Bond Authority

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/07/2014

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Kara Douglas 925-674-7880

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: January 7, 2014
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2014/2 authorizing the Director of the Department of Conservation and Development, or designee, to prepare and submit an application, certification, and $600 application fee to the California Debt Limit Allocation Committee for an allocation of $7,067,129, in Private Activity Bond Authority for conversion to Mortgage Credit Certificates.

FISCAL IMPACT:

None. No General Fund monies are involved. All costs associated with the issuance and administration of this program are paid by fees assessed on program participants. The issuance of a Mortgage Credit Certificate does not involve the issuance of any debt by the County, therefore there is no pledge of revenue by the County, or any party contracting with the County.

BACKGROUND:

Contra Costa County began operation of a Mortgage Credit Certificate (MCC) Program in June 1991. MCCs are an alternative means of assisting low and moderate income first-time homebuyers in achieving home ownership. The County MCC program has provided assistance to over 3,600 households. Recipients of a MCC are eligible for an income tax credit from the federal government that effectively reduces their net mortgage payment by 100 to 200 basis points (1% - 2%). The County’s application to the California Debt Limit Allocation Committee (CDLAC) for $7,067,129 in Private Activity Bond Authority for MCCs is based on State allocation procedures. Contra Costa County received an allocation in July, 2013 of $7,067,129. Almost all of the allocation is exhausted. This allocation will result in the issuance of approximately 30 MCCs.

CONSEQUENCE OF NEGATIVE ACTION:

If this request is not approved, the allocation of $7,067,129 for Contra Cost County will not be provided and will remain with CDLAC for use elsewhere in the State.

CHILDREN'S IMPACT STATEMENT:

None.