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HomeMy WebLinkAbout55A - RESO HOMEOWNERSHIP PRESERVATIONREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 4, 2008 TITLE: CLERK OF COUNCIL USE ONLY: RESOLUTION IN SUPPORT OF THE UNITED STATES PRESIDENT'S LEGISLATIVE PACKAGE ADDRESSING HOMEOWNERSHIP PRESERVATION .__~ CITY MANAGER APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1S` Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION Adopt a resolution in support of the United States President's legislative package addressing homeownership preservation. DISCUSSION The preservation of homeownership has taken on additional significance this past year as sub-prime mortgage lending has impacted homeowners throughout the United States. Santa Ana has taken a leadership role in Orange County to assure that our residents are able to access all available information and resources to enable them to make informed decisions regarding their home and sub-prime or adjustable rate home mortgage. Efforts underway to preserve homeownership in Santa Ana will also benefit from a package of initiatives introduced by President George W. Bush which include: • Modernization of the Federal Housing Administration (FHA) to allow greater numbers of households to access FHA mortgage insurance. • Reform of the Internal Revenue Code, to exclude the forgiveness of mortgage debt as taxable income and to allow cities and states to issue tax-exempt mortgage bonds to allow the refinance of existing loans. • Appropriation of $180M to support mortgage counseling for households at risk of losing their homes due to subprime mortgage loans. • Reform of Government Sponsored Enterprises like Fannie Mae and Freddie Mac to increase conforming loan limits and allow these institutions to provide further liquidity in the mortgage markets. The proposed resolution recognizes the impact of subprime mortgage lending in our community and addresses Santa Ana's support of this important package of federal initiatives. 55A-1 Resolution in Support of the United States President's Legislative Package Addressing Homeownership Preservation February 4, 2008 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Stephen Harding Deputy ty Manager for Development Services Community Development Agency SGH/SK/mlr HH:\ACTION ITEMS\COONCIL\2008CC\020408 ResoSupportHomeownership.doc 55A-2 1 /28/08LES RESOLUTION NO. 2008-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA SUPPORTING THE LEGISLATIVE PACKAGE ADDRESSING HOMEOWNERSHIP PRESERVATION PROPOSED BY THE PRESIDENT OF THE UNITED STATES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The impact of sub-prime mortgage lending has impacted homeowners throughout the United States, making the preservation of homeownership highly significant. B. The City of Santa Ana has taken a leadership role in Orange County to assure that our residents are able to access all available information and resources to enable them to make informed decisions regarding their home and their mortgage. C. Efforts underway to preserve homeownership in Santa Ana will also benefit from a package of initiatives introduced by the President of the United States. This package includes the following: 1. Modernization of the Federal Housing Administration (FHA) to allow greater numbers of households to access FHA mortgage insurance. 2. Reform of the Internal Revenue Code to exclude the forgiveness of mortgage debt as taxable income and to allow cities and states to issue tax-exempt mortgage bonds to allow the refinancing of existing loans. 3. Appropriation of $180,000,000 to support mortgage counseling for households at risk of losing their homes due to sub-prime mortgage loans. 4. Reform of government sponsored enterprises such as Fannie Mae and Freddie Mac to increase conforming loan limits and allow these institutions to provide further liquidity in the mortgage markets. 55A-3 Resolution No. 2008-XXX Page 1 of 3 1/28/08LES Section 2. The City Council of the City of Santa Ana urges the Congress and the President of the United States to adopt this legislative package addressing homeownership preservation. Section 3. The Clerk of the Council is directed to forward this Resolution to appropriate federal elected officials. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2008-XXX 55A-4 Page 2 of 3 1/28/08LES ADOPTED this day of APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Lisa E. Storck Assistant City Attorney AYES: NOES: Councilmembers Councilmembers 2008. Miguel A. Pulido Mayor ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2008- to be the original resolution adopted by the City Council of the City of Santa Ana on . Date: Clerk of the Council City of Santa Ana 55A-5 Resolution No. 2008-XXX Page 3 of 3 55A-6