RES 85101 - Laserfiche WebLink

A. GENERAL On July 18, 1984, Congress enacted into law the Tax Reform Act of 1984. This Act imposes certain requirements on issuers of qualified single family mortgage bonds and mortgage credit certificates. One of these requirements is that issuers publish a statement of their policies with respect to housing, development, and low-income housing assistance and report on their compliance, for the one-year period preceding the date of the report, with the intent of Congress that qualified mortgage bond issues and mortgage credit certificates assist lower income families to afford home ownership before assisting higher income families. In order to qualify for a federal tax exemption for interest on qualified mortgage bonds to be issued in 1985, this statement must be published prior to March 11, 1985. As City of Pleasanton plans to issue qualified single family mortgage bonds (and/or) mortgage credit certificates in 1985, the following report is being published in order to comply with the requirements of the Tax Reform Act of 1984 and the Regulations thereunder. B. POLICIES AND GOALS B(1) Housing Policies and Goals. The California State Legislature has found and declared that there exists within the State of California a serious shortage of decent, safe, and sanitary housing which is affordable to many persons in the state. This shortage is exacerbated during periods of rising interest rates, particularly as high interest rates have the effect of diminishing the number of otherwise creditworthy buyers from qualifying for private sector mortgage capital sources. In order to remedy this adverse effect on potential home buyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for the single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market.