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HomeMy WebLinkAboutRes 12-95 04/18/1995 RESOLUTION NO. 12-95 A RESOLUTION APPROVING A MORTGAGE CREDIT CERTIFICATE PROGRAM WHEREAS, the Village of Mount Prospect is eligible to participate in a Mortgage Credit Certificate Program under Federal law; and WHEREAS, the V'fllage of Mount Prospect has ceded $665,750 in unused Private Activity Bond capacity to provide for this program; and WHEREAS, the Mayor and Board of Trustees have determined that the Mortgage Credit Certificate Program can benefit Mount Prospect low- and moderate-income first-time home buyers by providing them with a partial tax credit on their mortgage interest payment; and WHEREAS, the Illinois Housing Development Authority has proposed to administer this program for the Village of Mount Prospect. NOW, TI:IEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor and Board of Trustees of the Village of Mount Prospect hereby approve the attached Agreement, Exhibit A, between the Illinois Housing Development Authority and the Village of Mount Prospect which cedes to the Illinois Housing Development Authority a certain portion of the Village of Mount Prospect's private activity bond cap; and authorizes the Mayor to sign said Agreement. SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: Clowes, Hendricks, Hoefert, Skowron, Wilks NAYS: None ABSENT: Corcoran PASSED AND APPROVED this 18th day of April ,1995. Ge~ral-d L Farley, Mavo¢ ATTEST: Carol A. Fields, Village Clerk AGREEMENT THIS AGREEMENT (this "Agreement") is made and entered into this day of , 1995 by and between the VILLAGE OF MOUNT PROSPECT, an Illinois municipal corporation (the "Village") and the ILLINOIS HOUSING DEVE~~~ AUTHORITY, a body politic and corporate of the State of Illinois, created by pursuant to the tools Housing Deveopment Act, 20 ILCS 3805/1 et seq.~~U~ amended (the "Authority"). RECITALS OCT 1 6 1995 A. Pursuant to Section 146 of the Internal Revenue Code of 1986 (the "Code"), the Village has the authority to issue qualified mortgage revenue bonds for the calendar year 1995 in the aggregate amount of six hundred and sixty-five thousand seven hundred and fifty dollars and no/100 Dollars ($ 665,750.00 .00) (the "1995 Volume Cap"). The Village desires to have a mortgage credit certificate program CMCC Program") pursuant to which individuals and families purchasing single family residences in the Village would receive mortgage credit certificates ("MCC's"), as provided under Section 25 of the Code and the regulations promulgated thereunder (collectively, "Section 25"). B. The Village has determined to cede to its 1995 Volume Cap to the Authority on the condition that the Authority use the 1995 Volume Cap to establish and operate an MCC Program on behalf of the Village for the benefit of residents of the Village. NOW, THEREFORE, in consideration of the Recitals set forth above and the mutual agreements set forth below, the parties agree as follOws: 1. Recitals. The Recitals set forth above are incorporated in this Agreement and made part of it. 2. Ceding of 1995 Volume Cap. The Village agrees to cede the 1995 Volume Cap to the Authority to allow the Authority to establish and conduct an MCC Program in accordance with the provisions of this Agreement. 3. Authority Obligations. Upon receipt of a copy of a resolution duly adopted by the Board of Trustees and the Mayor of the Village and certified by the Village Clerk, ceding the 1995 Volume Cap to the Authority, the Authority shall establish an MCC Program on behalf of the Village for the benefit of the residents of the Village. In connection with such MCC Program, the Authority shall perform the following: (a) Publish a Notice of Issuance of MCC's and submit to the Internal Revenue Service an MCC Election, both as required by Section 25; (b) Take all necessary steps to adequately market the MCc Program to lenders, realtors, homebuilders and the Village's residents; (c) Create and distribute to participating lenders in connection with the MCC Program a lender participation agreement and procedural manuals; (d) Develop and maintain a first-come, first-served reservation system for applicants for MCC's; (e) Prepare forms and affidavits in connection with certifying eligibility of applicants for MCC's and compliance with the requirements of Section 25; (f) Review all applications for MCC's for eligibility and compliance with the requirements of Section 25; (g) Maintain records and prepare and submit to the Internal Revenue Service the quarterly and annual reports, both in connection with the issuance of MCC's, as required under Section 25; (h) Furnish such information to participating lenders as may be necessary to enable them to file the annual report required of each participating lender under Section 25; (i) Maintain such demographic information as is required under Section 25; (j) Otherwise comply with all of the requirements of Section 25; (k) Prepare such reports as may be required by the Governor of illinois in connection with the use of the 1995 Volume Cap for the MCC Program; and (I) Cooperate with the Village in all respects, including the delivery to the Village of copies of all applicable documents in connection with the MCC Program. 4. Eligible Applicants. For a period of one (1) year from the date on which MCC's first become available under the MCC Program, the Authority shall accept applications for, and issue, MCC's only in connection with, single-family residences located within the city limits of the Village. After the termination of that one (1) year period, the Authority may use any remaining MCC authority attributable to the 1995 Volume Cap to issue MCC's to eligible applicants purchasing single-family residences in any locality in the State of Illinois. 5. MCC Rate. The MCC rate for each MCC issued under the MCC Program shall be ~ent,z-f±wpercent (25 %) of the certified indebtedness amount on the MCC. The sum of the products determined by multiplying the certified indebtedness amount of each MCC times the MCC rate for that MCC shall not exceedu~e~ty-f±'~rcent (25 %) of the amount of the 1995 Volume Cap. 6. Fees. Each applicant for an MCC shall pay a fee in the amount of Three Hundred Fifty and no/100 Dollars ($350.00). Of that amount, the participating lender making the mortgage loan to the applicant shall retain One Hundred and No/100 Dollars ($100.00) and shall remit Two Hundred Fifty and No/100 Dollars ($250.00) to the Authority. -2- 7. Amendment of Agreement. This Agreement shall not be altered or amended without the prior written approval of all of the parties hereto. 8. No Liability. No member, office, agent or employee of the Authority or the Village, their successors and assigns, shall be liable personally concerning any matters arising out of or in relation to the undertakings or obligations set forth in this Agreement. The parties further acknowledge and agree that the Village shall have no obligations or responsibilities to the Authority or to any third parties in connection with the matters contemplated herein, and the Authority hereby indemnifies and holds the Village harmless from and against any and all loss, cost, damage or expense which may be incurred by the Village in connection with the terms and previsions of this Agreement. 9. Partial Invalidity. if a court of competent jurisdiction determines that any term, covenant, condition or provision of this Agreement, or its application to any circumstance, at any time or to any extent, is invalid or unenforceable, the remainder of this Agreement, or the application of it to circumstances other than those as to which it is held invalid or unenforceable, shall not be affected by such determination and each term, covenant, condition and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. '10. Successors. This Agreement shall bind, and the benefits shall inure to, the respective parties hereto, their legal representatives, successors in office or interest and assigns; provided, however, this Agreement may not be assigned without the prior written approval of the non-assigning party. 11. Gender. The use of the plural in this Agreement shall include the singular; the singular shall include the plural; and the use of any gender shall be deemed to include all genders. 12. Captions. The captions used in this Agreement are used only as a matter of convenience and for reference and in no way define, limit or describe the scope or the intent of this Agreement. '13. Notices. Any notice, demand, request or other communication which any party may desire or may be required to give to any other party under this Agreement shall be given in writing, at the addresses set forth below, by any of the following means; (a) personal services; (b) overnight courier; or (c) registered or certified United States mail, postage prepaid, return receipt requested. If to the Village: Village of Mount Prospect 100 South Emerson Mount Prospect, Illinois 60056 Attention: Village Clerk -3- If to the Authority: Illinois Housing Development Authority 401 N. Michigan Avenue, Suite 900 Chicago, Illinois 60611 Attention: Legal Department Such addresses may be changed by notice to the other party given in the same manner as provided in this Agreement. Any notice, demand, request or other communication sent pursuant to subsection (a) shall be served and effective upon such personal service. Any notice, demand, request or other communication sent pursuant to subsection (b) shall be served and effective one (1) business day after deposit with the overnight courier. Any notice, demand, request or other communication sent pursuant to subsection (c) shall be served and effective three (3) business days after proper deposit with the United States Postal Service. 14. CounterParts. This Agreement may be executed in counterparts, and each counterpart shall, for all purposes for which an original of this Agreement must be produced or exhibited, be the Agreement, but all such counterparts shall constitute one and the same agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and attested by their duly authorized representatives. VILLAGE: VILLAGE OF.~IOUNT PRO~SP~ Village Clerk ' AUTHORITY: ILLINOIS HOUSING DEVELOPMENT AUTHORITY By: Its: / ¢/¢_..¢/',¢ ~ ~~ Its: " 6¢ D~c. 62345-1 Exhibit A MORTC~tGE CREDIT Cq~RTIFICATE PROGI~ PHOOIU~i ADMINISTIU~?ION ~)IUU)~I~ This Program Administration Agreement ("Agreement") dated as of April 18 , 199 5, is made by and between The Illinois Housing Development Authority ("The Authority") ("Program Administrator") and Village of Mount Prospect, Illinois. ( "Issuer" ). W I TNESSETH WHEREAS, the Internal Revenue Code of 1986 ("Tax Code') provides for the issuance of Mortgage Credit Certificates ("MCCs') as a means of assisting qualified individuals with the acquisition of new and existing single family housing; and WHEREAS, by resolution, the Issuer has established the MCC Program ("Program") and agrees to issue MCC's in connection with mortgage loans which meet the requirements of the Tax Code; and WHEREAS, the Authority wishes to administer the MCC Program for the Issuer. NOW T~EREFORE, in consideration of the mutual covenants and agreements herein contained, the Issuer and the Authority agree as follows: 1. Issuer hereby appoints the Authority.as its agent for receipt and Tax Code compliance review of applications for MCd's under the Program. 2. The Authority warrants that it is familiar with Section 25 of the Tax Code and all temporary and permanent regulations applicable thereto as well as all applicable provisions of state law. The Authority hereby agrees to be hound by and comply with all applicable provisions of the Tax Code in effect or that may become effective in the future. 3. The Authority hereby agrees to assist the Issuer prepare and file its election to issue MCC's with the Internal Revenue Service, and its report to the Governor's Office on volume cap allocated and issued. 4. The Authority hereby agrees to assist the Issuer market the Program to lenders, realtors, homebuilders and the general publ lc. 5. The Authority hereby agrees to provide the Issuer with all documents for the MCC Program, including Lender Participation Agreements, Procedural Manuals, Program Forms and Affidavits. 6. The Authority hereby agrees to develop and maintain a first come, first sex-red MCC reservation system. ~. To the extent NCC authority re.dins available, the Authority hereby agrees to review MCC applications for eligibility and Tax Code compliance, and issue MCC's as Issuer's agent following loan closing. 8. The Authority hereby agrees to~aintain records regarding the issuance of MCC's, and prepare for the Issuer quarterly and annual reports to the Internal Revenue Service on MCC's issued. 9. The Authority hereby agrees to furnish data to participating lenders and monitor their annual reporting to the Internal Revenue Service. 10. The Authority hereby agrees that the Issuer has the authority to examine and inspect all books and records in the Authority's 1)ossession relating to a~y MCC and the Program. 11. The Authority may charge each borrower an administrationfee in an amount equal to $3S0.00 or one percent (1%) of the mortgage loan, whichever is less, dueand payable at closing. 12. The Issuer hereby agrees to demand strict performance by lenders of all provisions of the Lender Participation Agreement, and further agrees not to waive or modify any provision of the Lender ParticipationAgreement withdut written consent of the Authority. 13. This Agreement shall remain in full force and effect until terminated. This Agreement shall terminate one year from the date of this Agreement dated above, or upon issuing all MCC's and filing all reports to the Internal Revenue Service, whichever occurs the latter. Village of Mount Prospect ~he Illinois Housin~DeveloDment Authgrit¥ (Issuer) /O / Its: Mayor / Its: Its: Village Clerk Its: