SENATE HILL NO. 178
AN ACT ALLOCATING AUTHORITY TO ISSUE MORTGAGE REVENUE BONDS TO THE DELAWARE STATE HOUSING AUTHORITY AND VARIOUS POLITICAL SUBDIVISIONS IN THE STATE OF DELAWARE.
WHEREAS, housing programs supported by the sale of tax exempt single family mortgage revenue bonds (the "Bonds") have been of great benefit to first time home buyers and members of families of low and moderate income in the State of Delaware (the "State"): and
WHEREAS, the Mortgage Subsidy Bond Tax Act of 1980 (the "Act") limits the sale of the Bonds within the State to a maximum amount of $200,000,000 in any calendar year; and
WHEREAS, the Act permits the State to allocate by legislation the authority to issue the Bonds among various authorized issuers within the State; and
WHEREAS, the absence of such allocation of issuing authority in the put has worked a hardship on authorized issuers of Bonds and the families that would benefit thereby.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: "Section 1. Definitions
(a) 'Act' means the Mortgage Subsidy Bond Tax Act of 1980.
(b) 'Bonds' means tax exempt single family mortgage revenue bonds.
(c) 'Chief Elected Official' means the highest elected official in the State of Delaware or any political subdivision or agency thereof, including, but not limited to, the Governor, the County Executive of New Castle County, the President of County Council of Sussex County, the President of the Levy Court of Kent County, and the Mayor of the City of Wilmington, or their designees.
(d) 'Issuer' mew the State or any political subdivision or agency thereof which is authorized by law or Executive Order to issue Bonds. including, but not limited to, the State, the Counties of New Castle. Kent and Sussex, and the City of Wilmington.
(e) 'State' means the State of Delaware. Section 2. Allocation of Authority
In accordance with the provisions of the Act, the agencies or political subdivisions specified below are hereby allocated for each calendar year the following issuing authority with respect to Bonds:
(a) Delaware State Housing Authority - $100,000,000
(b) New Castle County - $50,000.000
(c) Sussex County -- $20,000,000
(d) Kent County - $20.000.000
(e) City of Wilmington $10,000,000
Section 3. Assignment of Allocated Issuing Authority
The allocation of Bond issuing authority may be assigned in whole or in part by any agency or political subdivision of the State to any other Issuer upon approval, in writing, of the Chief Elected Official of such agency or political subdivision desiring to assign the allocation.
Section 4. Recapture of Issuing Authority
(a) Statement of Reallocation. Any Issuer desiring to be granted an increase In its allocated issuing authority shall the with the Secretary of State a Statement of Reallocation on or before September I of each calendar year. The Statement of Reallocation shall specify the name and address of the Issuer and the amount of issuing authority desired to be reallocated to it.
(b) Statement of Intent to Issue Bonds. Any Issuer intending to issue Bonds after September 1 of each calendar year shall file a Statement of Intent to Issue Bonds with the Secretary of State on or before September 1 of that particular year. No Bonds shall be issued after September 1 unless the Statement of Intent to Issue Bonds is filed. The Statement of Intent to Issue Bonds shall specify the name and address of the Issuer and the principal amount of Bonds the Issuer intends to Issue after September 1.
(c) If an Issuer files a Statement of Intent to Issue Bonds and fails to issue a principal amount of Bonds during the balance of such calendar year equal to at least 90% of the amount specified therein, such Issuer shall be prohibited from filing a Statement of Intent to Issue Bonds the next calendar year.
(d) in the event that more than one Issuer files a Statement of Reallocation, the Secretary of State on or before September 15 of such calendar year shall reallocate the remaining issuing authority on a pro rata basis based upon the respective amount of issuing authority of such Issuers as provided in Section 2, but not in excess of the reallocation requested in the Statement of Reallocation. Written notice of reallocation of issuing authority shall be sent by the Secretary of State to all Issuers requesting reallocation on or before September 30 each year.
Section 5. This bill shall be effective immediately upon signing by the Governor."
Approved May 24, 1985.