ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE a HOME RULE VOLUME CAP ALLOCATION for PRIVATE ACTIVITY BONDS to Illinois Assist MCC Program and Tri-County River Valley Development Authority.
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BACKGROUND: The City of Peoria receives an annual Volume Cap allocation as a Home Rule Unit of government. The Volume Cap allocation for 2020 is $11,695,740. The calculation of the Volume cap for 2020 is based on $105 per resident. Based on Section 146 of the Internal Revenue Code of 1986, as amended (the "Code"), The number of residents for 2020 has been calculated based on 111,388 residents. The "Code" allows the volume cap to be allocated to certain tax-exempt private activity bonds.
In addition to the Code above the Illinois Private Activity Bond Allocation Act, (the "Act"), provides that a home rule unit of government may transfer its allocation of volume cap to any other home rule unit of government, the State of Illinois or any State agency, or any non-home rule unit of government.
Under the authority of the Statues above the City of Peoria has made Volume Cap allocation transfers to Illinois Assist MCC Program (IAssist) and Tri-county River Valley Development Authority (TRVDA) in the past. Both (IAssist) and TRVDA qualify as private activity bond program under the code.
IAssist is sponsored by communities throughout the State. IAssist promotes individual home ownership. The home buyer assistance features of the Assist program provide families with funds to pay all or most of their closing costs and down payment, enabling families with good credit but little capital to by their home. Additional benefits of the program include a mortgage credit certificate which reduces the homebuyers' ongoing cost of borrowing in form of a credit that reduces the effective rate they pay on interest for the mortgage.
TRVDA is sponsored by communities in the Tri-County area. TRVDA issues bonds on behalf of the City of Peoria and ou...
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