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HomeMy WebLinkAboutCC Res 3889 1989-10-09 " .[ RESOLUTION NUMBER ~~~ ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, EXPRESSING OPPOSITION TO POSITION OF NATIONAL LEAGUE OF CITIES ON THE HOME MORTGAGE INTEREST DEDUCTION THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY RESOLVES: I WHEREAS, home ownership is important in promoting neighborhood stability, and enhancing participation in community affairs; and WHEREAS, an important factor which makes owning and maintaining a home possible for many Americans is the ability to deduct interest which is paid on home mortgages; and WHEREAS, the original intent of the home mortgage interest deduction which was to encourage home ownership, home improvement and neighborhood stability, is still valid today; and WHEREAS, the National League of Cities has recently adopted a Priorities Statement for the 1990 federal budget and programs, which identifies as a potential revenue enhancement option three modifications to the home mortgage interest deduction; and WHEREAS, the City Council believes that any modifications to the home mortgage interest deduction which would limit the total amount of interest allowed to be deducted would have a deleterious impact on the residents of the City of Seal Beach, California for the following reasons; I 1) It would discourage home ownership and improvement by removing the tax benefits of investing in a home. 2) In discouraging home ownership and improvement, it would damage the stability of our City's neighborhoods by attracting a more transient population with fewer roots in the community. 3) It would have a disproportionate impact on the residents of Seal Beach, Southern California and other high-cost housing areas, since the value of mortgages and the total amount of interest paid is greater than other areas of the country. 4) It could have the effect of limiting the construction of new housing in Southern California, as fewer people would be qualified to purchase homes. In turn, this would exacerbate the already severe housing shortage which exists in the area and contribute to the imbalance of jobs and housing, and would worsen secondary effects such as traffic congestion and air pollution. I NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH, does here by find, determine and resolve as follows: Section 1. The City Council expresses its opposition to any modifications to the home mortgage interest deduction. Section 2. The City Council calls upon the Executive Board of the National League of Cities to amend its Priorities Statement to eliminate all references to modifications of the home mortgage interest deduction as a potential revenue enhancement tool. Resolution Number ~ Section 3. The City Council calls upon the leadership of the Orange County Division of the National League of Cities to adopt a similar position in position to any modification of the home mortgage interest deduction. PASSED, APPROVED AND ADOPTED BY THE City Counc ~at a meeting thereof held on the , 1989, by the ollowing vote: AYES: Counc1lmembers the City of day of I NOES: Councilmembers ABSENT: Counc1lmembers STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SEAL BEACH ) ) SS ) nOl~ "Of SEAL 8~~ f~" 'c:oe.~~;~";o~~'h. Ii:] ,+ ..0'1>-...._1 1* ~\-tli g g c( 00 .g- l~\o,. ~~:ll ~ ~o."o ...,":10# 1,. Q"o.~rq 21.~~; 'r,b. ~ ('ci;,o::;~,c.~ "I"\\~ I, Joanne, M. Yeo, City Clerk of Seal Beach, California, do hereby certify that th~~~~Oing resolution is the original copy of Resolution Number ~lJtJ' on file in the office of the City ~l k, passed, app yed an adopted by the City Council of the of Seal Beac, t egu r meeting thereof held on the day of , 1989. I I