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HomeMy WebLinkAboutRes 11-96 04/02/1996 WL 3/27/96 3/28/96 RESOLUTION NO. 11-96 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 Village of Mount Prospect has ceded $815,750 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 Iow, 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, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS AS FOLLOWS: 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, Corcoran, Hendricks, Hoefert, Skowron, Wilks NAYS: None ABSENT: None PASSED and APPROVED this 2nd day of April ,1996. ATTEST: Carol A. Fields Village Clerk WNL Page 1 of 4 r.._~ ....... APR 2. 2 199 THIS AGREEMENT (this "Agre~ ~(~O~B~l~r~ entered into this 2nd day of ,1996 by an~een the Village of Mount Prospect, an Illinois municipal co~oration (the '~llage"), and the Illinois Housing Development Authori~, a body politic and corporate of the State of Illinois, created by and existing pumuant to the tllinois Housing Development A~, 20 ILCS 3805/'1 ~ se~. (1994), as amended (the "Authori~"). RECITALS A. Pumuant to Section 146 of the Internal Revenue Code of 1986 (the "Code"), the Village has the autho~ to issue quailed mo~gage revenue bonds for the calendar year 1996 in the aggregate amount of eioht hundred and fifteen thousand, seven hundred and fi~. dollam ($815.750.00) (the 1996 Volume Cap"). The Village desires to have a mo~gage credit ~ificate program ("MCC Program") pumuant to which individuals and families pumhasing single family residences in the Village would receive mo~gage credit ce~ificates ("MCC's"), as provided under Section 25 of the Code and the regulations promulgated thereunder (collectively, "Se~ion 25"). B. The Village has dete~ined to ~de to its 1996 Volume Cap to the Authori~ on the condition that the Authori~ use the 1996 Volume Cap to es~blish 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 fo~h above and the mutual agreements set fo~h below, the pa~ies agree as folIows: 1. Recitals: The Recitals set foAh above am inco~omted in this Agreement and made pa~ of it. 2. Cedino of 1996 Volume CaD: The Village agrees to cede the 1996 Volume Cap to the Authori~ to allow the Authori~ to establish and conduct an MCC Program in accordance with the provisions of this Agreement. 3. AuthoriN Obligations: Upon re~ipt of a copy of Resolution duly adopted by the Board of Trustees and the Mayor of the Village and ceAified by the Village Cle~. ~ding the 1996 Volume Cap to the Author, the A~ho~ 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 Authori~ shall perform the following: (a) Publish a Notice of Issuance of MCC's and submit to the Internal Revenue Se~ice an MCC Election, both as required by Se~ion 25; (b) Ta~ all ne~ssa~ steps to adequately market the MCC Program to lendem, realtom, homebuildem and the Village's residents; (c) Create and distribute to pa~icipating lendem in connexion with the MCC Program, a lender pa~icipation agreement and pm~duml manuals: (d) Develop and maintain a flint-come, first-se~ed rese~ation system for applicants for MCC's; (e) Prepare fo~s and a~davits in connexion with ce~i~ing eligibili~ of appli~nts For MCC's and compliance with the requirements of Se~ion 25; VVVL Page 2 of 4 (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 maybe required by the Governor of Illinois in connection with the use of the 1996 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. J~JJg~Le_~. 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 1996 Volume Cap to issue MCC's to eligible applicants purchasing single-family residences in any locality in the State of Illinoiso 5. MCC Rate. The MCC rate for each MCC issued under the MCC Program shall be twenty-five percent ~ 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 shall not exceed twenty-five percent (25%) of the amount of the 1996 Volume Cap. 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. 7. Amendment of Agreement. This Agreement shall not be altered or amended without the prior written approval of all the parties hereto. 8. ~. No member, officer, 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 provisions of this Agreement. VVVL Page 3 of 4 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. S~l¢cessors. 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. (~ender. 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. CaDtions. 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 part 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 Street Mount Prospect, Illinois 60056 Attention: Village Clerk 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. ¢~)unteroarts. 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. VVL Page 3 of 4 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and attested by their duly authorized representatives. VILLAGE: VILLAGE OF MOUNT PROSPECT ATTEST: Village Clerk AUTHORITY: ILLINOIS HOUSING DEVELOPMENT AUTHORITY ATTEST: By: Its: