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HomeMy WebLinkAboutRES 88-020 6,-moo RESOLUTION APPROVING THE AMENDMENT TO THE BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION'S RESOLUTION AUTHORIZING THE ISSUANCE OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION $1,900, 000 MULTI-FAMILY HOUSING REVENUE BONDS, SERIES 1984 (PINEDALE MANOR DEVELOPMENT) WHEREAS, by a duly adopted resolution of the City Council (the "Governing Body" ) of the City of Beaumont, Texas (the "City" ) , the Governing Body authorized and approved the creation of the Beaumont Multi-Family Housing Finance Corporation (the "Corporation" ) pursuant to the Texas Housing Finance Corporations Act, Chapter 394 Texas Local Government Code (formerly Article 12691-7, Vernon' s Annotated Texas Civil Statutes) (the "Act" ); and WHEREAS, the Corporation has been duly and properly created and organized as a housing finance corporation under the Act; and WHEREAS, the Act authorizes the Corporation to (i) lend money for corporate purposes, (ii ) issue revenue bonds for the purpose of providing financing for, and to defray in whole or part, the development costs of residential developments located within the City and intended to be occupied substantially (at least 90%) by persons of low and moderate income, as determined in Rules and Regulations adopted by the Board of Directors of the Corporation, and (iii) rent, lease, sell or otherwise dispose of such residential developments, or loan the proceeds of such revenue bonds to any person to defray, in whole or in part, the development costs of any residential development; and WHEREAS, on October 23, 1984, the Corporation approved and passed a RESOLUTION AUTHORIZING THE ISSUANCE OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION $1 , 900, 000 MULTI-FAMILY HOUSING REVENUE BONDS, SERIES 1984 (PINEDALE MANOR DEVELOPMENT) , THE EXECUTION OF A TRUST INDENTURE AND OTHER RELATED DOCUMENTS, AND ADOPTION OF CERTAIN RULES AND REGULATIONS (the "Bond Resolution" ) , wherein the Corporation authorized the issuance of its Multi-Family Housing Revenue Bonds, Series 1984 (Pinedale Manor Development) (the "Bonds" ) , in the maximum aggregate principal amount of $1,900,000, for the purpose of providing Pinedale Manor, a Texas general partnership (the "Owner" ) , and W. H. Watkins, Jr. , and B. R. Casey (the "Guarantors" ) , with financing for a multi-family residential development known as Pinedale Manor (the "Development" ) ; and WHEREAS, the Governing Body by resolution dated June 20, 1984, approved the Corporation' s Bond Resolution; and WHEREAS, the Corporation has issued the Bonds and has loaned the proceeds to the Owner for the purpose of financing the Development in the manner provided in the Bond Resolution; and WHEREAS, at the request of the Owner and the Guarantors, the Corporation proposes to adopt substantially -2- in the form attached hereto as Exhibit "A" a RESOLUTION OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION AMENDING ITS RESOLUTION AUTHORIZING THE ISSUANCE OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION $1, 900,000 MULTI-FAMILY HOUSING REVENUE BONDS, SERIES 1984 (PINEDALE MANOR DEVELOPMENT) , THE EXECUTION OF A TRUST INDENTURE AND OTHER RELATED DOCUMENTS AND ADOPTION OF CERTAIN RULES AND REGULATIONS (the "Amendment" ) , wherein the Corporation proposes to amend the Bond Resolution and the Bonds to provide for a reduction in the "Bond Interest Rate" payable on the Bonds as provided in the Amendment; and WHEREAS, the Governing Body has determined that the Amendment is in compliance with the public purposes of the Act and that the Governing Body should approve the Amendment; and WHEREAS, the Bonds are tax exempt obligations within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended (the "Code" ) ; and WHEREAS, in order for the Bonds to remain as tax exempt obligations under the Code, the Amendment to the Bonds and the Bond Resolution must be approved by the applicable elected representative of the governmental unit on whose behalf such obligations were issued and each governmental jurisdiction over the area in which any facility financed from the proceeds of such issue may be located (except that if more than one governmental unit has jurisdiction over the -3- entire area in which such facility is located, only one governmental unit need approve the Amendment) , only after a public hearing has been held; and WHEREAS, the City is a "governmental unit" within the meaning of the Code; and WHEREAS, as the elected legislative body of the governmental unit within which the entire Development is located, the Governing Body is an "applicable elected representative" of the governmental unit with specific authority within the meaning of Section 147(f) of the Code; and WHEREAS, the facilities comprising the Development are located entirely within the geographic jurisdiction of the City, thus necessitating only one public hearing and approval pursuant to Section 147(f) of the Code; and WHEREAS, in compliance with Section 147(f) of the Code, and the Open Meetings Law, as amended, Article 6252-17, Vernon's Annotated Texas Civil Statutes, notice in writing of a public hearing to approve the Amendment was published in a newspaper of general circulation in the City on January 17, 1988, and written notice has also been posted continuously at the Jefferson County Courthouse in Beaumont, Texas, since January 19, 1988, and pursuant to such notice, the Governing Body has this day held a public hearing for the purpose of considering the authorization and approval of the proposed Amendment; and -4- WHEREAS, this public hearing has been conducted 'in order to provide the opportunity for persons with differing views on the Amendment to be heard, and in order to comply with Section 147(f) of the Code and the Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, TEXAS: Section 1. The Governing Body hereby finds, determines, recites and declares that the proposed Amendment is in furtherance of and will promote the public purposes of the Act, including, without limitation, assisting persons of low and moderate income to obtain decent, safe and sanitary housing at rentals they can afford. Section 2 . The Governing Body, as the elected legislative body of the City, and for the purposes of complying with the terms and provisions of Section 147(f) of the Code and the Act, does hereby approve, ratify, adopt and confirm the Amendment, in substantially the form attached hereto as Exhibit "A, " and does hereby approve and authorize the Corporation to amend the Bonds and the Bond Resolution as provided in the Amendment. Section 3 . The Governing Body has considered evidence of the publication and posting of notice of this meeting and public hearing and officially finds, determines, recites, and declares that a sufficient written and reasonable public notice of the date, hour and place of this meeting and public hearing and of the subject matter of this Resolution, -5- was published in a newspaper of general circulation in the City not less than fourteen ( 14) days prior to this meeting and public hearing; that such meeting and public hearing was opened to the public as required by law at all times during which this Resolution and the subject matter hereof was discussed, considered, and formerly acted upon; that the giving of notice in the manner provided above was reasonably designed to apprise residents of the City of the proposed Amendment; that the meeting and public hearing was conducted in a manner that provided a reasonable opportunity for persons with differing views on the Amendment to be heard; and that this meeting and public hearing was held at a time and place convenient for persons affected by the financing of the Development and the Amendment; and that the foregoing notice and hearing complied with the Open Meetings Law, as amended, Article 6252-17, Vernon' s Annotated Texas Civil Statutes, and Section 147(f) of Code. PASSED, ADOPTED AND APPROVED this 2nd day of February 1987, but EFFECTIVE as of February 1, 1988. -4"Ae9� ayo Exhibit "A" - Resolution of Corporation Authorizing Amendment -6- RESOLUTION OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION AMENDING ITS RESOLUTION AUTHORIZING THE ISSUANCE OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION $1, 900,000 MULTI-FAMILY HOUSING REVENUE BONDS, SERIES 1984 (PINEDALE MANOR DEVELOPMENT) , THE EXECUTION OF A TRUST INDENTURE AND OTHER RELATED DOCUMENTS AND ADOPTION OF CERTAIN RULES AND REGULATIONS WHEREAS, the Beaumont Multi-Family Housing Finance Corporation (the "Corporation") , a Texas housing finance corporation duly organized and created pursuant to and in accordance with the provisions of the Texas Housing Finance Corporations Act, Chapter 394, Texas Local Government Code (Vernons 1988) (previously codified in Article 12691-7, Vernon's Annotated Texas Civil Statutes) (the "Act") , has authorized the issuance of its Multi-Family Housing Revenue Bonds, Series 1984 (the Pinedale Manor Development) (the "Bonds") , in the maximum aggregate principal amount of $1,900,000, pursuant to that certain Bond Resolution adopted and approved by the Corporation on October 23, 1984 (the "Bond Resolution") , for the purpose of providing Pinedale Manor, a Texas general partnership (the "Owner") , and W. H. Watkins, Jr. , and B. R. Casey (the "Guarantors") , with financing for a multi-family residential development known as Pinedale Manor (the "Development") ; and WHEREAS, each bond comprising a part of the Bonds is in the form set out in Section 5 of the Bond Resolution (the "Bond Form") ; and WHEREAS, the Bonds and the Bond Form provide that the "BOND INTEREST RATE" shall mean "a variable per annum rate "EXHIBIT,, equal to 80% of the prime commercial lending rate per annum as announced by Allied Bank Beaumont, N.A. , at its principal office in Beaumont, Texas, as in effect from time to time during any interest period (the 'Prime Rate' ) , adjusted daily, but in no event shall the Bond Interest Rate ever be less than 9% or greater than 15% per annum"; and WHEREAS, at the request of the Owner and the Guarantors, the Corporation desires to amend the Bond Resolution and the Bonds to reduce the Bond Interest Rate as hereinafter provided; and WHEREAS, Section 13 of the Bond Resolution authorizes the Corporation to amend the Bond Resolution and the Bonds; and WHEREAS, Allied Bank Beaumont, N.A. ("Allied") is currently the holder of 100% of all of the outstanding Bonds; and WHEREAS, Allied Merchants Bank ("Allied Merchants Bank") is - the trustee under that certain Trust Indenture executed by and between the Corporation and Allied Merchants Bank in connection with the issuance of the Bonds; and WHEREAS, as evidenced by their signatures below, the Owner, the Guarantors, Allied and Allied Merchants Bank approve and consent to the amendments to the Bond Resolution and the Bonds and waive the requirements of any notices and publications in order to amend the Bond Resolution and the Bonds; -2- NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF BEAUMONT MULTI-FAMILY HOUSING FINANCE CORPORATION THAT: Section 1 - Approval of Amendments. The Corporation hereby approves and authorizes the amendments to the Bond Resolution and the Bonds as set forth in Section 2 below, effective as of February 1, 1988, and the President and any Vice President of the Corporation are hereby severally authorized and directed to execute and deliver such amendments on behalf of the Corporation and execute any documents required in connection with such amendments, and the Secretary or any Assistant Secretary of the Corporation is hereby authorized to attest and affix the Corporation's seal thereto, with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by such execution thereof. Section 2 - Amendments to Bonds and Bond Resolution. The first sentence of the first full paragraph on page 12 of the Bond Resolution and on Page 2 of the Bonds is modified to read as follows: "THE TERM 'BOND INTEREST RATE' shall mean a variable per annum rate equal to 80% of the prime commercial lending rate per annum as announced by Allied Bank Beaumont, N.A. , at its principal office in Beaumont, Texas, as in effect from time to time during any interest period (the 'Prime Rate') , adjusted daily, but in no event shall the Bond Interest Rate ever be less than 8% or greater than 15% per annum. " Section 3 - Preservation of Bonds and Bond Resolution. Except as specifically amended by the terms of this -3- Resolution, all of the terms, provisions, covenants, warranties and agreements contained in the Bond Resolution, the Bonds and all other documents and agreements described therein shall remain in full force and effect as executed. Section 4 - Effect. This Resolution shall take effect and be in full force and effect upon and after its passage. Section 5 - Notation on Bonds. Allied agrees to deliver all outstanding Bonds to Allied Merchants Bank in order that Allied Merchants Bank shall print the following legend on the face of each such Bond: "This Bond has been amended pursuant to Resolution adopted by the Beaumont Multi-Family Housing Corporation on February 2, 1988; a certified copy of the Resolution may be obtained without ` charge upon written request to the Trustee. " After making such notation, Allied Merchants Bank shall return all outstanding Bonds to Allied. Section 6 - Governmental Approval. The Corporation hereby directs that this Resolution 'and all other appropriate documents relating hereto be submitted to any governmental entity, agency, or office for such approvals as may be required under applicable law. IN WITNESS WHEREOF, the Corporation has caused this Resolution to be adopted and signed on its behalf on this the 2nd day of February, 1988, but EFFECTIVE as of February 1, 1988. BEAUMONT MULTI-FAMILY HOUSING FINAN E CORPORAT By: Its: -4- APPROVED AND CONSENTED TO: FiR37 c,JZ�R fc/157 AM-AlK- 01` loo1z4 ALLIED ME CHANTS BANK, Trustee By: d Its cRs �� F 7 a,+A,'I - of 136 4u.ka,,t ALLIED BANK BEAUMONT, N.A. , For itself and as holder of all Outstand' Bonds By: Its 2E7 .J�T PINEDALE MANOR, a Texas general partnership By: v Its: W. H. Watkins, Jr. B. R. Casey -5-