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ECONOMIC AND URBAN DEVELOPMENT MEM RANDUM <br /> Memo No. 07-146 <br /> December 12,2007 <br /> TO: Honorable Ma or Paul Osborne and City Council <br /> FROM: Steve Garm , City Manager �-/ <br /> Greg C. Cro e,Assistant City Managefi� <br /> SUBJECT: O r d i n a n c e to Authorize the Election of Mortgage Certifi ates with Unused 2004 <br /> Carryforwazd Volume Cap <br /> SUMMARY RECOMMENDATION: It is recommended by staff th t the City Council approve the <br /> attached resolution authorizing the election of mortgage certificates to u ilize unused 2004 volume cap <br /> to create a joint Mortgage Credit Certificate program with Illinois Finan e Authority. <br /> BACKGROIJND: In October of 2005, the City of Decatur and Ill' ois Finance Authority (IFA) <br /> jointly authorized the issuance of$37,387,360 of Taac exempt single f 'ly mortgage revenue bonds <br /> under a pilot program to make low interest mortgage loans to q fying first time homebuyers. <br /> Decatur contributed $6,387,360 of its 2004 volume cap and IFA con 'buted $6,000,000 of its 2004 <br /> volume cap. The 2004 cazryforwazd volume cap expires on De ember 31, 2007. To date, <br /> approximately$2.55 million of mortgages have been originated. <br /> The proposed election would allow IFA and the City to make use of the approximately $9.5 million in <br /> remaining 2004 volume cap before it expires at yeaz end by estab ishing an IFA single family <br /> mortgage pilot program. The program will pmvide a tax credit betwee 20% and 50% of.the interest <br /> paid on mortgage loans to first-time homebuyers of low to moderate in me families across the state. <br /> INPUT FROM OTHER SOURCES: N/A <br /> POTENTIAL OBJECTION: N/A <br /> STAFF REFERENCE: Any additional questions may be forwazded to Greg Crowe at 424-2727 or at <br /> �ccrowe(u�decaturnet.or�. <br /> BUDGET/TIlVIE IMPLICATIONS: N/A <br />