HomeMy WebLinkAboutCC Res 3889 1989-10-09
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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:
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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;
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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.
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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
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NOES:
Councilmembers
ABSENT:
Counc1lmembers
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF SEAL BEACH
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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.
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