San Mateo County Municipal Code Ch. 3.100 Home Mortgage Financing Program

Pursuant to part V of division 31 of the Health and Safety Code of the State of California (the "Act"), commencing with section 52000, and based upon the findings of the Board of Supervisors, the County hereby adopts a home mortgage financing program (the "Program") pursuant to the Act for the purpose of increasing the housing supply for moderate and low-income families in the unincorporated areas of the County and within the incorporated areas of the Cities within the County which cooperate with the County in undertaking the Program.

(Prior code § 3910.1; Ord. 2787, 05/18/82)

The Board of Supervisors hereby finds and declares that:

(a) Decent housing is an essential motivating force in helping people to achieve self-fulfillment in a free and democratic society;

(b) A healthy housing market is one in which residents of this state have a choice of housing opportunities and one in which the housing consumer may effectively choose within the free market;

(c) There exists within the County a shortage of housing available to moderate and low-income persons, as such persons are now or hereafter defined by the provisions of the Act, and that 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, and in order to remedy this adverse effect of potential homebuyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market; and

(d) It is necessary, in order to implement a public program to reduce the cost of mortgage financing to authorize long-term, low-interest mortgages to persons not presently eligible for financing through private sector lending institutions to finance construction, rehabilitation and acquisition of homes, and in order to finance the Program, to issue mortgage revenue bonds to fund the Program.

(Prior code § 3910.2; Ord. 2787, 05/18/82)

Only condominium conversion projects for which a final subdivision map has been recorded no later than April 30, 1982, may be financed under this program. No other condominium conversion projects shall be financed under the program.

(Prior code § 3910.3; Ord. 2787, 05/18/82)

Pursuant to section 52020 of the Act, the County hereby adopts the following criteria for qualification of lending institutions for the program:

1. Such lending institution shall be seller/servicer approved by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation;

2. The lending institution shall have demonstrated the capacity to originate and service home mortgages of the nature and in the number proposed for the program, as shown by information filed with respect to invitations distributed by the County Director of Housing and Community Development;

3. Final selection of a qualified lending institution shall be based upon the foregoing and the agreement of the lending institution to provide such services at a reasonable cost most advantageous to the homebuyers participating in the program.

(Prior code § 3910.4; Ord. 2787, 05/18/82)