HomeMy WebLinkAboutResolution 2026-14_SETH bond authorityRESOLUTION 2026-14
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS,
APPROVING ASSIGNMENT OF PRIVATE ACTIVITY BOND AUTHORITY TO THE
TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS IN
ACCORDANCE WITH TEXAS GOVERNMENT CODE SEC. 1372.044; AND
CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, The Southeast Texas Housing Finance Corporation (the "Corporation") was
created by the Texas Counties of Austin, Brazoria, Chambers, Galveston (excluding the City of
Galveston), Liberty, Matagorda, Walker, Waller and Wharton and the Texas Cities of Baytown,
Deer Park, Dickinson, La Marque, La Porte, Pasadena, Santa Fe, Texas City, and Tomball pursuant
to the provisions of the Texas Housing Finance Corporations Act, as amended, formerly Article
12691-7, Vernon's Annotated Texas Civil Statutes, and now codified as Texas Local Government
Code, Chapter 394 (as it may be amended, the "Act"); and
WHEREAS, the Corporation has informed City of La Porte, Texas (the "Sponsor") that
the Corporation has filed or intends to file with the Texas Bond Review Board an application in
the 2026 program year for reservation of state ceiling for issuance of qualified mortgage revenue
bonds in the maximum amount of $70,000,000.00 (the "Reservation"); and
WHEREAS, the Corporation has informed the Sponsor that the Board of Directors of the
Corporation has adopted or intends to adopt a resolution to delegate to the Texas Department of
Housing and Community Affairs ("TDHCA"), pursuant to Section 394.032(e) of the Act, the
authority to act on its behalf in the financing, refinancing, acquisition, leasing, ownership,
improvement, and disposal of certain home mortgages or residential developments as permitted
under the Act, including its authority to issue bonds for those purposes; and
WHEREAS, as a governmental unit that created the Corporation, the City Council of the
City of La Porte, Texas (the "Governing Body") desires to approve the assignment of the
Reservation to TDHCA in accordance with Section 1372.044 of the Texas Government Code; and
WHEREAS, the Governing Body desires to approve the Assignment Agreement in
substantially the form attached hereto as Exhibit A between the Corporation and TDHCA (the
"Assignment Agreement"); and
WHEREAS, it is deemed necessary and advisable that this Resolution be adopted;
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA
PORTE, TEXAS THAT:
Section 1. The Governing Body specifically approves and consents to the assignment
of the Reservation to TDHCA in accordance with Section 1372.044 of the Texas Government
Code and approves the Assignment Agreement. The approval herein given is solely pursuant to
Section 1372.044 of the Texas Government Code, and is not to be construed as any undertaking
by the Sponsor, and it is expressly acknowledged that any bonds issued by TDHCA using the
Reservation would be obligations only of TDHCA and shall never constitute an indebtedness or
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pledge, within the meaning of any constitutional or statutory provision, of the Corporation, the
Sponsor or any other municipal or political corporation or subdivision of the State of Texas, and
the holders of any such obligations shall never be paid in whole or in part out of any funds raised
or to be raised by taxation or any other revenues of the Corporation, the Sponsor or any such
municipal or political corporation or subdivision
Section 2. The Mayor of the Sponsor is hereby authorized, jointly and severally, to
execute and deliver such endorsements, instruments, certificates, documents, or papers necessary
and advisable to carry out the intent and purposes of this Resolution.
Section 3. 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 City for the time required by
law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas
Government Code; and that this meeting has been open to the public as required by law at all times
during which this resolution and the subject matter thereof have 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 4. This resolution shall be in effect from and after its passage and approval.
PASSED AND APPROVED on this 3i>1 day of 20
(SEAL)
ATTE
ward,
Rick Heltonayor
APPROVED AS TO FORM:
7-
Clark T. Askins, City Attorney
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SUPPLEMENTAL INFORMATION
For many years it has been very difficult for Local Housing Finance Agencies to issue Single
Family Mortgage Revenue Bonds. In the past, when SETH contemplated the issuance of single
family bonds, the issuance and non -origination fees would have been approximately $1.7 Million
for $25,000,000 in mortgage originations. SETH would not have receive any contribution back.
This is a result of the statutory requirement that obligates local housing finance agencies (LHFAs)
to reserve at least 50% of issued bonds for homebuyers with incomes below 80% of the area
median income for at least 12 months. State agencies do not have this requirement. Because it
is difficult to qualify these homebuyers, LHFAs often face non -origination fees when a bond issue
is not fully committed.
We appreciate the Partnership with the State Agency. By transferring our Bond Allocations to
TDHCA, SETH does not incur any costs and we are still able to serve the homebuyers in our
jurisdictions, which include: Texas Counties of Austin, Brazoria, Chambers, Galveston
(excluding the City of Galveston), Liberty, Matagorda, Walker, Waller and Wharton and the Texas
Cities of Baytown, Deer Park, Dickinson, La Marque, La Porte, Pasadena, Santa Fe, Texas City
and Tomball.
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FOLLOWING EXHIBITS:
Exhibit A — Assignment Agreement