HomeMy WebLinkAboutRES 89-07RESOLUTION NO.89-07
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,
ARIZONA,SUPPORTING LEGISLATION TO INCREASE THE FHA MAXIMUM LOAN LIMITS,
THEREBY PROVIDING ACCESS FOR MORE CITIZENS TO AFFORDABLE HOUSING.
WHEREAS the City of Apache Junction in Pinal County,Arizona,wishes to
encourage home ownership with reasonable and comparable mortgage loans,
and,
WHEREAS Apache Junction is by geographic proximity and normal economic
activity a part of the Phoenix Standard Metropolitan Area and Southeast
Maricopa County housing market,and,
WHEREAS the economic linkages between Apache Junction,and the East Valley
financial and real estate network;the housing markets of Mesa,Gilbert,
Chandler,Tempe and environs are apparent and pertinent,and,
WHEREAS Apache Junction home buyers are at a disadvantage in obtaining
FHA mortgage loans under loan limitations set by the Federal Housing Act,
and,
WHEREAS the inability to finance home ownership via FHA mortgage loans
at maximum amounts comparable to area market conditions is an obstacle
to the growth and development of City of Apache Junction,
THEREFORE,BE IT RESOLVED,that the Mayor and Council of the City of Apache
Junction,Arizona support legislation that will increase utilization of
FHA mortgage loans within the City of Apache Junction and its environs
by:
1)Amending the Federal Housing Act to provide an alternative method
to set the maximum FHA mortgage loan limit by local market area annual
home sales when a city or community is located within the economic
impact of a standard metropolitan area and/or encompasses more than
one county or state entity.
2)Eliminating the current ceiling of $101,250 and allowing the loan
limit to be 95% of the median sales price within the market area.
3)Raising the loan floor for rapidly growing rural areas to $101,250
or 95%of the median sales price for the market area - whichever
is higher.
4)Adjusting the jurisdictional area in which the 95% formula applies
to define a market area for which valid sales data can be provided.
BE IT FURTHER RESOLVED that this resolution be forwarded to President
Bush,and appropriate Cabinet members;the Arizona Congressional
delegation;members of the House Banking Committee and Senate Banking
Committee;the FHA Director and Arizona FHA Administrator;Pinal County
Board of Supervisors;the National Board of Realtors and others with an
akin interest,with a letter from the Mayor requesting assistance in this
matter.
BE IT RESOLVED by the Mayor and City Council of the City of Apache
Junction,Arizona,this 7th day of March ,1989.
SIGNED AND ATTESTED TO THIS 9TH DAY OF MARCH ,1989.
Attest:
Kathleen Connelly
City Clerk
Approved as to form
Davf4 F.Alex
City Attorney
NORMAN S.HILL
MAYOR
by Vice Mayor Tom DAmiano
Y-2-