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HomeMy WebLinkAboutRes 05-94 01/18/1994 RESOLUTION NO. 5 - 9 4 A RESOLUTION APPROVING A MORTGAGE CREDIT CERTIFICATE PROGRAM W~r~REAS, 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 $2,658,400 in unused industrial revenue bond capacity to provide for this program; and W~REAS, 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, TIIEREFORE, 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, Exhihit A, between the Illinois Housing Development Authority and the Village of Mount Prospect which grants the Illinois Housing Development Authority the administrative responsibility for the Mortgage Credit Certificate Program of the Village of Mount Prospect; and authorizes the Mayor to sign said Agreement. SECTION TWO: That this Resolution shall be in full force and effect fi.om and after its passage and approval in the manner provided by law. AYES: Clowes, Corcoran, Hendricks, Hoefert, Skowron NAYS: None ABSENT: Wilks PASSED AND APPROVED this 18 th day of January ,1994. ~i-~5 '~~~~ GeraldL. Farley, ayor/ Carol A. Fields, Village Clerk Exhib ~ MORTGAGE CREDIT CERTIFICATE PROGRAM PROGRAM ADMINISTRATION AGREEMENT This Program Administration Agreement ("Agreement ") dated as of January 18 , 199 % , is made by and between The Illinois Housing Development Authority ("The Authority") ("Program Administrator") and Village of Mount Prospect, Illinois. ("Issuer") . WITNESSETH 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 THEREFORE, 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 MCC'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 bound 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 ~overnor'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 public. 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 served MCC reservation system. 7. To the extent MCC authority remains available, the Authority hereby agrees to r~view 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 maintain 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 possession relating to any MCC and the Program. 11. The Authority may charge each borrower an administration fee in an amount equal to $350.00 or one percent (1%) of the mortgage loan, whichever is less, due and 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 Participation Agreement without 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 The Illinois I~ousinq Development Authority (Issuer) By: By: / Its: Mayor / Its: Director Its: Village Clerk Its: Resolution No. 5-94