1994-20•
RESOLUTION NO. 94- 20
•
A RESOLUTION AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL
AGREEMENT BETWEEN THE VILLAGE OF BUFFALO GROVE AND
ILLINOIS HOUSING DEVELOPMENT AUTHORITY
WHEREAS, the Village of Buffalo Grove desires to participate in the Mortgage Credit
Certificate program administered by the Illinois Housing Development Authority in order to assist
qualified individuals with the acquisition of new and existing single - family housing, and
WHEREAS, the Village of Buffalo Grove must establish a Mortgage Credit Certificate
program and issue such Certificates in connection with mortgage loans which meet the requirements
of the federal tax code, and
WHEREAS, the Village of Buffalo Grove desires that the Illinois Housing Development
Authority administer the program on behalf of the Village in order to gain efficiencies due to such
administration.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES,
ILLINOIS the following:
SECTION 1. The Village President is authorized to cede the Village's calendar 1993 private
activity bond volume cap of $1,820,850 to the Illinois Housing Development Authority for
use in the Mortgage Credit Certificate program.
SECTION 2. The Village President and Clerk are hereby authorized to execute a Mortgage
Credit Certificate Program Administration Agreement, attached as Exhibit "A" to this
Resolution dealing with the administrative aspects of the program to be performed by the
Illinois Housing Authority on behalf of the Village of Buffalo Grove.
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AYES: 6 - Marienthal, Reid, Kahn, Rubin,Braiman, Hendricks
NAYES: 0 - None
ABSENT:
PASSED: April 18 , 1994.
APPROVED: April 18 , 1994
ATTEST:
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C]
EXHIBIT 'A"
MORTGAGE CREDIT CERTIFICATE PROGRAM
PROGRAM ADMINISTRATION AGREEMENT
This Program Administration Agreement ( "Agreement ") dated as of April 18, 1994, is made by and
between The Illinois Housing Development Authority ( "The Authority ") ( "Program Administrator ")
and the Village of Buffalo Grove ( "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 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 and prepare and file its election to issue
MCC's with the Internal Revenue Service, and its report to the Governor's Office on volume cap
allocated and issued.
4. The Authority hereby agrees to assist the Issuer in marketing the Program to lenders, realtors,
homebuilders and the general public.
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5. The Authority hereby agrees to provide the Issuer with all documents for the MCC Program,
including Lender Participation Agreements, Procedural 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 review 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 Buffalo Gr The Illinois Housing Development Authority
(Issuer)
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