HomeMy WebLinkAbout1989-09-26 - RESOLUTIONS - HOME MORTGAGE DEDUCTION (2)RESOLUTION NO. 89-127
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA
EXPRESSING ITS OPPOSITION TO THE RECENT NATIONAL
LEAGUE OF CITIES' POSITION ON THE HOME MORTGAGE INTEREST DEDUCTION
WHEREAS, the home ownership is of primary importance 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, it is this City Council's belief that any modifications to the home
mortgage interest deduction which would limit the total amount of interest allowed
to be deducted would have a devastating impact on the residents of Santa Clarita,
for the following reasons:
It would discourage home ownership and improvement by removing
the tax benefits of investing in one's home.
In discouraging home ownership and improvement, it would damage
the stability of the City's neighborhoods by encouraging the
renting of homes and attracting a more transient population with
fewer roots in the community.
It would have a disproportionate impact on the residents of
Santa Clarita, 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.
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.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Santa
Clarita expresses its firm opposition to any modifications to the home mortgage
interest deduction; and
BE IT FURTHER RESOLVED, that the City Council of the City of Santa Clarita
calls upon the Executive Board of the National League of Cities to amend its
Priorities Statement to eliminate all reference to modifications of the home
mortgage interest deduction as a potential revenue enhancement tool; and
BE IT FURTHER RESOLVED, that the City Council of the City of Santa Clarita
calls upon the leadership of the Los Angeles County Division of the National League
of Cities to adopt a similar position in opposition to any modification of the home
mortgage interest deduction.
PASSED, APPROVED AND ADOPTED this
26th day of September 1989,
MAYOR
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of the City of Santa Clarita at a regular meeting thereof, held on
the 26th day of September 1989 by the following vote of Council:
AYES: COUNCILMEMBERS: Boyer, Darcy, Koontz, Heidt
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: McKeon