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<br />R.ST FOR CITY COUNCIL AGE_EM <br /> <br />Agenda Date Requested: <br /> <br />November 8. 1993 <br /> <br />Requested By: <br /> <br />Charles Harrington <br /> <br />QV- <br /> <br />Department: <br /> <br />Planning <br /> <br />x <br /> <br />Report <br /> <br />Resolution <br /> <br />x <br /> <br />Ordinance <br /> <br />Exhibits: <br />1. Ordinance <br />2. Letter from Southeast Texas Housing Finance Corporation <br />3. Certificate <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Background <br /> <br />The City of La Porte, a member of the Southeast Texas Housing Finance Corporation <br />(Southeast Texas) has been asked to consider supporting two new programs to be <br />undertaken by Southeast Texas to assist citizens in purchasing housing. <br /> <br />The first program is a traditional single family mortgage revenue bond program. This <br />program will allow Southeast Texas to issue $30 million of tax exempt revenue bonds to <br />provide funds to offer below market rate mortgage loans to low and moderate income <br />citizens. The City of La Porte will not have any debt or obligation from these bonds and <br />the bonds would be repaid from payments received from the mortgage loan. <br /> <br />The second program is a mortgage credit certificate program. Under federal law, <br />Southeast Texas may exchange all or part of a bond authority to issue mortgage credit <br />certificates to qualified low and moderate income home buyers. These home buyers <br />would then receive credits against their federal income taxes for a portion of the interest <br />payments on their mortgage loans. This will enable the home buyer to better afford their <br />mortgage payments. Again, this program will not place any financial obligation on the <br />City of La Porte. <br /> <br />Both programs to be implemented in La Porte will require that La Porte approve a <br />"Certificate Approving the Issuance of Mortgage Credit Certificates and/or Single Family <br />Mortgage Revenue Bonds by the Southeast Texas Housing Financing Corporation" and <br />authorize the Mayor to sign the appropriate documents related to said certificate. <br /> <br />Recommendation <br /> <br />The staff recommends that the City Council endorse the single family mortgage bond and <br />mortgage credit certificate programs and authorize the Mayor to sign all necessary <br />documents approving those programs. <br /> <br />Action Required by Council: <br /> <br />Approve an ordinance authorizing the Mayor to sign all necessary documents approving <br />the issuance of up to $30,000,000.00 in bonds and the issuance of Mortgage Credit <br />Certificates not to exceed 25% of the aggregate bond allocation. <br /> <br />Availability of Funds: N/ A <br /> <br />General Fund <br />Capital Improvement <br />Other <br /> <br />Water/Wastewater <br />General Revenue Sharing <br /> <br />Account Number: <br /> <br />Funds Available: _YES _NO <br /> <br />Approved for City Council Agenda <br /> <br />~#. <br /> <br />ty ager <br /> <br />);/ot~;' ;J <br />I I DATE <br />