(A) There is established and implemented a qualified mortgage credit certificate program under § 25 of the Internal Revenue Code, as amended (the “program”), for the purpose of issuing certificates. The certificates shall be issued to borrowers in connection with the acquisition, rehabilitation or improvement of the borrower’s principal residence within the incorporated area of the municipality (the “program area”).
(B) The certificates shall carry a credit rate as shall be provided in the administration agreement (as executed and as amended from time to time), which credit rate shall be not less than 10% nor more than 50%, and an indebtedness amount specified in each certificate.
(C) The municipality elects not to issue the principal amount of qualified mortgage bonds specified in the election referred to in § 33.148 below that are otherwise authorized to be issued by the municipality during calendar year 1992 pursuant to §§ 103, 143(a) and 146 of the Internal Revenue Code, as amended, and the regulations promulgated thereunder, in no event, however, to exceed the principal amount of $1,323,032.
(D) The Program Administrator is authorized and directed, on behalf of the municipality, to timely file all reports, annual and otherwise, as are or may be required by § 25 of the Internal Revenue Code, as amended, and the regulations promulgated thereunder.
(E) The certificates authorized herein shall be provided in the manner, in the amounts and in the time frames required by IRS Regulations § 125-4T(g) in connection with owner-financed target area residences, if any, within the program area.
(F) The imposition of fees to fund the costs of the program is authorized and directed as provided in the administration agreement. Those fees shall be charged to each borrower and shall not exceed 2% of the borrower’s indebtedness amount. The amount and type of the fees shall not be unreasonable and shall include only those which are permissible under IRS Regulations § 1.25-4T(h)(2).
(2000 Code, § 3.16.040)