HomeMy WebLinkAboutRESOLUTIONS-2006-027-R-06•
3/31/2006
27-R-06
A RESOLUTION
Ceding of $2,484,800 of Bond Volume Cap in Year 2006 to the
Illinois Housing Development Authority
First Time Home Buyer Single Family Program and the
Mortgage Credit Certificate Program
WHEREAS, there exists within the borders of the City of Evanston,
Illinois, a recognized need for decent, safe, sanitary, well -constructed and well
maintained housing which persons of moderate income can afford; and
WHEREAS, The City of Evanston is a home rule unit of local
government pursuant to Article VII of the Illinois Constitution of 1970, and as
such, Evanston receives an annual allocation of private activity bond volume cap
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( "Volume Cap") pursuant to Section 146 of the Internal Revenue Code of 1986,
as amended from time to time (the "Code"); and
WHEREAS, Section 143 of the Code ("Section 143") authorized
home rule units to issue mortgage revenue bonds ("Revenue Bonds") using
Volume Cap, the proceeds of which can be used to purchase qualified mortgage
loans, as defined in Section 143 ("Mortgage Loans"), made to homebuyers
satisfying the requirements of Section 143 ("Homebuyers"); and
WHEREAS, Section 25 of the Code authorized home rule units to
elect to surrender all or a portion of the Volume Cap available to issue Revenue
Bonds and to issue mortgage credit certificates ("MCC's") in place of those
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27-R-06
Revenue Bonds; Home buyers receiving such MCC's are entitled to a credit •
against their federal income tax; and
WHEREAS, the City of Evanston is willing to cede $1,448,800.00 of
its Volume Cap for the Year 2006 for the use by IHDA to operate a First Time
Homebuyers Program for the benefit of Evanston residents; and to cede
$1,000,000 for a mortgage credit certificate program (the "MCC Program") which
will issue MCC's to homebuyers living within the City of Evanston; and
WHEREAS, the Illinois Housing Development Authority ("IHDA")
has offered to create and administer both the MRB Program and the MCC
Program; the City of Evanston would cede to IHDA a portion of its Year 2006
Volume Cap, IHDA would purchase Mortgage loans from private lenders made
exclusively to, and provide the MCC's exclusively to, homebuyers living in the •
City of Evanston; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1. The City of Evanston makes the findings and
determinations set forth in the preamble. The terms defined in the preamble are
adopted for the purposes of this Resolution.
SECTION 2. The City of Evanston approves and authorizes its
participation in the MRB Program and cedes to IHDA $1,448,800.00 for purposes
of establishing and administering the MRB Program.
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27-R-06
• SECTION 3. The City of Evanston approves and authorizes its
participation in the MCC Program and cedes to IHDA $1,000,000.00 of its Year
2006 Volume Cap for purposes of establishing and operating the MCC Program.
SECTION 4: From and after the adoption of this Resolution, the
proper officials, agents and employees of the City are hereby authorized,
empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of
this Resolution or to effectuate the purposes hereof.
SECTION' 5: This Resolution shall be in full force and effect upon
its passage and approval in the manner provided by law.
rraine H. Morton, Mayor
Attest:
cUl u ,
Mary o ity Clerk
Adopted: AfAJ
1 I , 2006
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