S9-91 ORDINANCE NO. 59-91
AN ORDINANCE PRELIMINARILY APPROVING THE
ISSUANCE OF QUALIFIED MORTGAGE BONDS OR
MORTGAGE CREDIT CERTIFICATES
WHEREAS, Section 6(a) of Article VII of the 1970
Constitution of Illinois provides that "any municipality which,
has a population of more than 25,000. . . (is a) home rule unit"
and the City of Elgin , Kane and Cook County, Illinois (the
"Municipality") , has a population of more than 25,000 and is
therefore a home rule unit and may, under the power granted by
said Section 6(a) of Article VII of said Constitution of 1970
exercise any power and perform any function pertaining to ..ts
government and affairs; and
WHEREAS, there exists within the borders of the
Municipality a recognized need for decent, safe, sanitary and
well-constructed and maintained housing which persons of moderate
income can afford; and
WHEREAS, it is necessary and desirable that the
Municipality issue either qualified mortgage bonds pursuant to
Section 143(a) of the Internal Revenue Code of 1986 (the "Code")
or mortgage credit certificates pursuant to Section 25 of tha
Code in order to reduce the cost of financing for the acquisitir
of housing located in or near the Municipality for qual3
persons;
WHEREAS, it is necessary and desirable that the
Municipality apply for an allocation of 1991 "volume cap" under
the Illinois Private Activity Bond Allocation Act to be used for
the issuance of qualified mortgage bonds or mortgage credit
certificates.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF ELGIN , KANE AND COOK COUNTY, ILLINOIS, as follows:
Section 1. Home Rule Authority. The Municipality is a
home rule unit under the provisions of the 1970 Constitution cf
Illinois, and as a home rule unit may, under the powers granted
by Section 6(a) of Article VII thereof, "exercise any power and .
rbk perform any function pertaining to its government and affairs,"
and this Ordinance is adopted pursuant to the Municipality's home
rule powers, any provisions contained in any other Municipality
ordinance or resolution or in Illinois law to the contrary not-
withstanding.
Section 2. Declaration of Public Purpose. It is here-
by found, determined and declared that the purpose of this Ordi-
nance is to take steps designed to reduce the cost of financing
for the acquisition of principal residence housing located in or
near the Municipality in order to provide decent, safe and
sanitary housing for qualifying persons of moderate income. It
is further hereby found, determined and declared that this will
provide for and promote the public health, safety, morals and
welfare, maintain and foster the increase of industrial and
r
commercial activity and economic development, and preserve and
increase the ad valorem tax base of the Municipality and its
environs. The foregoing are hereby declared and determined to be
public purposes and functions pertaining to the government and
affairs of the Municipality.
Section 3. Preliminary Authorization for Issuance of
Qualified Mortgage Bonds or Mortgage Credit Certificates. The
Mayor, City Clerk and other officers of the Municipality are
hereby authorized to take such steps as are necessary to provide
for the issuance by the City, subject to City Council approval of
the final terms of all instruments and agreements to be entered
into in connection therewith, of its qualified mortgage bonds or,
in lieu thereof, mortgage credit certificates. Such qualified
mortgage bonds shall be issued in one or more series in a
principal amount not to exceed the "volume cap" approved by the
State of Illinois as approved pursuant to Section 4 hereof. If
mortgage credit certificates are issued in lieu of qualified
mortgage bonds, the Municipality shall elect not to issue
qualified mortgage bonds in an amount not to exceed the amount
set forth in the preceding sentence.
Section 4. 1991 Volume Cap. The Mayor and other
officials of the Issuer are hereby authorized to take such
actions as are necessary under the Illinois Private Activity Bond
Allocation Act to obtain up to $ 7,000,000 of "volume cap" as
defined therein for the calendar year 1991 for purposes of the
.
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issuance of either qualified mortgage bonds or mortgage credit
certificates as described herein.
Section 5. Approval of Further Actions. From and
after the adoption of this Ordinance, the proper officials,
agents and employees of the Municipality are hereby authorized,
empowered and directed to do all such acts and things and to
execute all such documents as may be necessary to carry out and
comply with the provisions of this Ordinance or to effectuate the
purposes hereof.
Section 6. Repeal of Conflicting Actions. All
pordinances, resolutions, orders or parts thereof, in conflict
with the provisions of this Ordinance are, to the extent of such
conflict, hereby repealed. `
Section 7. Effective Date. This Ordinance shall be in
full force and effect upon its passage and approval.
.
PRESENTED, PASSED, APPROVED AND RECORDED by the City of
Elgin , Kane & Cook County, Illinois, a home rule unit of
government, this 12th day of June , 1991.
APPROVED:
•
s/ George VanDeVoorde
• MAYOR, City of Elgin ,
Kane & Cook County, Illinois
Attest:
sl Dolonna Mecum
City Clerk, City of Elgin ,
Kane & Cook County, Illinois
•
Recorded in the records of the City the 12thday of June , 1991.
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