HomeMy WebLinkAboutO-1993-1947
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ORDINANCE NO. 93- 1947
AN ORDINANCE AUTHORIZING THE MAYOR TO SIGN A CERTIFICATE APPROVING
THE ISSUANCE OF MORTGAGE CREDIT CERTIFICATES AND/OR SINGLE FAMILY
MORTGAGE REVENUE BONDS BY THE SOUTHEAST TEXAS HOUSING FINANCE
CORPORATION; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE
SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING
AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
section 1. The City Council hereby approves and authorizes
the contract, agreement, or other undertaking descr ibed in the
,
title of this ordinance, in substantially the form as shown in the
document which is attached hereto and incorporated herein by this
reference. The Mayor is hereby authorized to execute such document
and all related documents on behalf of the City of La Porte. The
City Secretary is hereby authorized to attest to all such
signatures and to affix the seal of the City to all such documents.
section 2. The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the
Ci ty for the time required by law preceding this meeting, as
required by the Open Meetings Law, Article 6252-17, Texas Revised
civil Statutes Annotated; and that this meeting has been open to
the public as required by law at all times during which this
ordinance and the subject matter thereof has been discussed,
considered and formally acted upon. The City council further
ratifies, approves and confirms such written notice and the
contents and posting thereof.
section 3. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
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ORDINANCE NO. 93- 1947
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PASSED AND APPROVED, this 8th day of November, 1993.
ATTEST:
~ . L./
Sue enes,
City Secretary
AP~d
Knox W. ASkins,
City Attorney
By:
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CITY OF LA PORTE
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Mayor
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SOUTHEAS'f TEXAS
HOUSING FINANCE CORPORATION
Bill Eiland
Executive Director
October 20, 1993
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
TO: MA YORS OR COUNTY JUDGES OF
SPONSORING GOVERNMENTAL BODIES OF
THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION
The Southeast Texas Housing Finance Corporation ("Southeast Texas") needs your help to
undertake two new programs designed to make housing more affordable to persons of low
and moderate income in your jurisdiction. The first program is a trad,itional single family
mortgage revenue bond program. Southeast Texas recently received authority.from the State
of Texas to issue up to $30 million aggregate principal amount of tax-exempt single family
mortgage revenue bonds to raise money to make below-market-rate mortgage loans to
qualified low and moderate income individuals and families in Southeast Texas' jurisdiction;
including your city or county. Like any of Southeast Texas' bonds, pursuant to state law,
the proposed bonds would not be a debt or obligation of your jurisdiction and would be
payable only from payments received from the mortgage loans made with the proceeds of the
proposed bonds.
The second program is a mortgage credit certificate program. Southeast Texas may, under
federal law, exchange all or a portion of the bond authority that it recently received for
authority to issue mortgage credit certificates to qualified low and moderate income home
buyers in its jurisdiction. Mortgage credit certificates would permit home buyers to receive
credits against their federal income taxes for a specified portion of the interest payments on
their mortgage loans, thereby enabling them to better afford their mortgage payments.
Southeast Texas presently plans to issue $25 million aggregate principal amount of tax-
exempt single family mortgage revenue bonds and exchange the remaining $5 million of its
bond authority for mortgage credit certi ficate authority; however, if market conditions so
warrant, it may issue a greater amount or a lesser amount of bonds unused bond authority to
mortgage credit certificate authority.
In any event, as I noted earlier, Southeast Texas needs your help to undertake these
programs. Under state law, Southeast Texas' bonds must be approved by the Texas Attorney
General. As part of his approval process, he requires certain certifications regarding
Southeast Texas from each of its sponsoring political subdivisions. In addition, pursuant to
the so-called "TEFRA" hearing and approval requirements of the Internal Revenue Code, the
highest elected official in each of Southeast Texas' sponsoring local governmental units (i.e.,.
you and the other mayors and county judges) must approve the single family bond program
and the mortgage credit certificate program in order for these programs to comply with the.
4620 Fairmont Parkway · Suite 201 · Pasadena, Texas 77504
(713) 487-8772 .. FAX (713) 487-9574
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Internal Revenue Code. I have had Southeast Texas' bond counsel prepare the required
attorney general certification documents, a General Certification of Local Governmental Unit
(the "General Certificate") and a letter addressed to the attorney general (the" AG Letter"),
as well as the required tax approval certificate (the "Tax Certificate").
So that your jurisdiction may participate in the programs, please sign and return each of
these three documents to me no later than November 15, 1993. Please do not date the,
General Certificate; the Attorney General requires that he be allowed to date it on the date of
his approval of the bonds. Also, do not sign and date the Tax Certificate until after
Novemb~r 10. 1993. the date on which Southeast Texas has scheduled a "TEFRA" hearing
regarding the proposed bonds and mortgage certificate program. Promptly after the hearing,
Southeast Texas will notify you of any public comments presented at the hearing, and you
may then sign and date the Tax Certificate.
If you have any questions, please feel free to call me at (713) 487-8772 or Ed Molter,
Southeast Texas' bond counsel, at (512) 499-3973. Thank you in advance for your
cooperation in this matter.
Respectfully yours,
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Bill Eiland
Executive Director
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CERTIFICATE APPROVING THE ISSUANCE OF
MORTGAGE CREDIT CERTIFICATES AND/OR
SINGLE FAMILY MORTGAGE REVENUE BONDS BY
THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION
WHEREAS, The Southeast Texas Housing Finance corporation
(the "Issuer") is a public nonprofit corporation organized under
the laws of the State of Texas pursuant to the Texas Housing
Finance Corporations Act (the "Act"), Texas Local Government Code,
Chapter 394, to act on behalf of the counties of Austin, Brazoria,
Chambers, Fort Bend, Liberty, Matagorda, Walker, Waller and
Wharton, Texas and the cities.of Bay town , Deer Park, Dickinson, La
Marque, La Porte, League City, Pasadena, Santa Fe, Shoreacres,
Texas City and Tomball, Texas (the "Local Gover.nmental Units");
WHEREAS, pursuant to the Act, the Issuer is authorized
to, among other things, (a) make and acquire, and enter into
advance commitments to make and acquire, single family mortgage
loans to persons of low and moderate income for residences located
within the Local Governmental Units and (b) issue its. bonds for the
purpose of Obtaining funds to make or acquire such single family
mortgage loans;
WHEREAS, pursuant to Article 5190.9 of the Texas Revised
Civil Statutes and the rules promulgated by the Texas Department of
Commerce thereunder, the Issuer has received an allocation to issue
single family mortgage revenue bonds in the amount of $30,000,000
to provide financing for owner-occupied residences located within
the Local Governmental units to persons of low and moderate income;
WHEREAS, pursuant to section 25 of the Internal Revenue
.Code of 1986, as amended, and the regulations promulgated
thereunder (the "Code"), the Issuer may make a revocable election
to exchange all or a portion of its allocation for the issuance of
such single family mortgage revenue bonds for the authority to
issue mortgage credit certificates to qualified applicants relating
.to housing located within the Local Governmental Units, which
mortgage credit certificates would entitle the holders thereof to
credits against their federal income taxes based upon the amount of
interest paid on their mortgages on such housing;
WHEREAS, the Issuer proposes to (a) issue its limit~d
obligation revenue bonds known as "The Southeast Texas Housing
Finance Corporation Collateralized Single Family Mortgage Revenue
Bonds, Series 'l993 A" in an aggregate principal amount not to
exceed $30,000,000 (the "Bonds") for the purpose of providing
financing for owner-occupied residences through the acquisition of
securities guaranteed as to payment of principal and interest by
the Government National Mortgage Association and/or the Federal
National Mortgage Association and backed by home mortgage loans
made with respect to residences located within the Local
Governmental Units and owned and occupied by persons of low and
moderate income and/or (b) to exchange the portion of its
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allocation for the issuance of single family mortgage revenue bonds
not used for the Bonds for the authority to issue mortgage credit
certificates (the "Mortgage Credit Certificates");
WHEREAS, section .l47 (f) of the Code requires that, in
order for interest on bonds issued to finance single family housing.
to be excluded from gross income for federal income tax purposes,
the issuance of such bonds must be approved by the governmental
unit within which such housing is located, and the other
governmental units which sponsor the bond-issuing authority, after
holding a public hearing where affected' members of the public are
allowed to present their views on the proposed bond issue;
WHEREAS, section 147(f) of the Code further provides that
the issuance of such bonds shall be treated as having been approved
by such governmental units if, after such public hearing, such
issue is approved by the respective applicable elected
representatives of such governmenta~ units;
WHEREAS, section 25 of the Code. requires that, in order
for a mortgage credit certificate to entitle the holder thereof to
a credit against his or her federal income taxes, the issuance of
such mortgage credit certificate must be approved by the
governmental unit within which the housing to which such mortgage
credit certificate relates is located;
WHEREAS, the issuance of mortgage credit certificates
shall be treated as having'been approved by such governmental units
if such issuance is approved by the re~pective applicable elected
representatives of such governmental units;
WHEREAS, the undersigned is the applicable elected
representative for a governmental unit sponsoring the Issuer and
mortgage loans may be financed with the Bonds, and/ or Mortgage
Credit certificates may be issued by the Issuer, with respect to
housing located within the boundaries of such governmental unit;
WHEREAS, a public hearing was held by a representative of
the .Issuer at 9:00 a.m., Houston, Texas time, on November 10, 1993,
at 4620 Fairmont Parkway, suite 201, Pasadena., Texas 77504
following public notice published at least fourteen days prior to.
such hearing, where affected members of the public were allowed to
present their views on the proposed issuance of the Bonds and the
Mortgage Credit Certificates;
WHEREAS, the undersigned has been apprised of the results
of such public hearing;
WHEREAS, the undersigned hereby finds and declares that
the issuance by the Issuer of the Bonds and Mortgage Credit
certificates with respect to housing located in the Local
Governmental Unit named below (the "Applicable Unit") should be
approved and is in the best interests of the inhabitants of the
Applicable Unit.
AUMAINOl Doc: 18934.1
Printed: 10-19-93 15:46
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NOW, THEREFORE, on behalf of the Applicable Unit, the
undersigned hereby:
1. approves the issuance by the Issuer of (a) Bonds in
an aggregate principal amount not to exceed $30,000,000 and
(b) Mortgage Credit. Certificates in .an aggregate amount not to
exceed 25% of the amount of the Issuer's allocation for the
issuance of single family mortgage revenue bonds not used for the
Bonds, in each case with respect to housing located within the
boundaries of the Applicable Unit;
2. represents that this approval is adopted for the
purpose of satisfying the conditions and requirements of sections
25 and 147(f) of the Code; and
3. represents that this approval is not to be construed
as (i) a representation or warranty by the state of Texas, the
Applicable Unit, or any other political or municipal corporation or
subdivision of the state of Texas, that the Bonds will be paid or
that any obligations assumed by any of the parties concerned will
in fact be performed;. (ii) a pledge of the faith and credit of or
by the state of Texas, the Applicable unit or any other political
or municipal corporation or subdivision of the state of Texas; or
(iii).a representation or warranty concerning the validity of the
corporate existence of the Issuer or the validity of the Bonds.
Signature: ~,e,.,~
Printed Name:
Norman L. Malone
Office:
I XI
County Judge 1--1
Mayor
Local Governmental unit:
Date of Signature:
1--1 County of
1--/ City of
November IS, 1993
La Porte, Texas
AUMAIN01 Doc: 18934.1
Printed: 10-19-93 15:46
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Office of the Attorney General
Public Finance Section
P. O. Box 12548
Austin, Texas 78711-2548
Re: The Southeast Texas Housing Finance Corporation
Ladies and Gentlemen:
By this' letter, the Attorney General of the State of
Texas, any Assistant Attorney General or any of their respective
delegates or assigns, is authorized to complete the date of che
"General Certificate of Local Governmental Unit" of the undersigned
Local Governmental Unit and to rely upon such information unless
notified otherwise.
Signature: .Jf~~~
Norman L. Malone
Printed Name:
Office:
County Judge
Mayor
x
Local Governmental Unit:
County of
Date of Signature:
City of
November IS, 1993
La Porte, Texas
AU Doc: 1222.1
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GENERAL CERTIFICATE
OF LOCAL GOVERNMENTAL UNIT
I have executed this Certificate for the benefit of all
persons interested in the validi ty of the proceedings of The
Southeast Texas Housing Finance corporation (the "Issuer") relating
to the issuance of its bonds. Terms defined in Section 394.003 of
the Texas Housing Finance Corporations Act, Texas Local Government
Code chapter 394 (the "Act"), have the same meanings when used in
this Certificate as in the Act. I hereby certify as follows:
l. I am the duly elected and incumbent official specified
below of the county or city named below (the "Local Governmental
Unit").
2. The Issuer has been authorized to act on behalf of the
Local Governmental unit by action of the governing body of the
Local Governmental unit.
3. The First Restated Articles of Incorporation of the
Issuer have been approved by the governing body of the Local
Governmental unit. The minutes of the governing body of the Local
Governmental unit do not reflect any amendment to the First
Restated Articles of Incorporation of the .Issuer.
4. The. minutes of the governing body of the Local
Governmental Unit do not reflect any action for the purpose of
(i) changing the structure, organization, programs or activities of
the Issuer, (ii) terminating the Issuer, (iii) withdrawing from the
Issuer, or (iv) limiting the effectiveness of any of the
resolutions of the Issuer's board of directors authorizing the
issuance of the Issuer's bonds or otherwise affecting any of the
Issuer's bonds.
5. Except for the Issuer, the Local Governmental unit has
not created or authorized to act on its behalf any housing finance
corporation (including any joint housing finance corporation) with
the power to make home mortgages or to make loans to lending
institutions, the proceeds of which are to be used to make home
mortgages or to make loans on residential developments.
6. The Local Governmental unit has appointed the individual
named below to act as a member of the board of directors of the
Issuer for a term ending as indicated below. That individual is a
resident of the Local Governmental unit. The minutes of the
governing body of the Local Governmental unit do not reflect that
such individual has been removed as a member of the Issuer's board
of directors.
7. No litigation is pending or, to my knowledge, threatened
against the Local Governmental unit relating to the Issuer, any
AU Doc: 18940
.~rinted: 10-18-93 16:25
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bonds of the Issuer, the proceedings regarding the issuance of any
bonds of the Issuer, the representation on the Issuer's board of
directors of the Local Governmental Unit, or the participation of
the Local Governmental Unit in the Issuer.
Signature: ~~
Printed Name: Norman L. ~alone
Office:
County Judge
Local Governmental Unit:
Name of Member of
Issuer's Board of Directors:
County of
City of
Mayor
x
La Porte, Texas
Expiration of Director's Term:
Date of this certificate:
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AU Doc: 18940
Printed: 10-18-93 16:25
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