REPORT TO COUNCIL
SUBJECT
Title
Approve Mortgage Credit Certificate Program (MCC) Cooperative Agreement between the County of Santa Clara and the City of Sunnyvale
Report
BACKGROUND
The MCC Program was originally established by the federal Deficit Reduction Act of 1984 and modified by the Tax Reform Act of 1986 (the TRA) to help lower and moderate income households buy homes. The program provides MCC recipients with a credit against their personal income tax liability equal to fifteen percent of their total annual mortgage interest payments. The MCC differs from some other tax credit programs, such as the earned income tax credit (EITC), as it can reduce the amount of income tax owed by the home owner, but does not provide a cash refund like the EITC if the amount of taxes owed is less than the value of the MCC. Additional details about the program are provided in the MCC Fact Sheet in Attachment 1.
The County of Santa Clara began administering its MCC Program in 1987. In March 1991, Sunnyvale entered into a cooperative agreement with the County to allow it to administer the MCC Program within Sunnyvale on the City's behalf. Since inception of this program, the County has issued 650 MCCs in Sunnyvale.
The Housing and Human Services Commission reviewed this item at its special meeting on October 28, 2015 and unanimously recommended approval of the Cooperative Agreement.
EXISTING POLICY
General Plan, Housing Element
Goal A: Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale's households of all income levels.
Policy A.6: Provide first time homebuyer assistance to low and moderate income households, with priority to buyers who currently work and/or live in Sunnyvale
Policy A.7: Support collaborative partnerships with non-profit organizations, affordable housing builders, and for-profit developers to gain greater access to various sources of affordable housing funds.
ENVIRONMENTAL REVIEW
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