CC Resolution No. 1321 2534
RESOLUTION NO. 1321
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, APPROVING THE CONVERTIBLE NOTE PROGRAM OF THE
SOUTHEAST TEXAS HOUSING FINANCE CORPORATION; DIRECTING THE
MAYOR TO EXECUTE THE APPROPRIATE CERTIFICATES EVIDENCING
THE PUBLIC'S APPROVAL OF THE SAME; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
WHEREAS, The Southeast Texas Housing Finance Corporation (the "Corporation") has
proposed offering up to $12,500,000 of tax-exempt qualified mortgage bonds in order to provide
funds to finance the origination of certain mortgage loans for the purchase of single family
residences by persons and families of low and moderate income; and
WHEREAS the proposed issuance will enable the Corporation to recapture prepayment
funds from previously issued single family mortgage revenue bonds and to convert said prepayments
into convertible notes (the "Convertible Note Program") for use in generating new mortgages; and
WHEREAS, the Convertible Note Program is expected to advance the Corporation's
continued efforts in providing safe, decent, sanitary and affordable housing to residents of its
sponsoring political subdivisions, including the City of Baytown; and
WHEREAS,to gain approval of the Texas Attorney General's Office for the issuance of the
Convertible Notes,the Corporation has asked that the City of Baytown confirm certain information
regarding the Corporation and execute certain documents evidencing the public's approval of the
proposed Convertible Note Program; and
WHEREAS, at the public hearing on August 27, 1997, held by the Corporation, in
compliance with federal law, concerning the Convertible Note Program, no member of the public
attended to speak or discuss such program; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section l: That the City Council of the City of Baytown, Texas, hereby evidences its
approval of the Corporation's Convertible Note Program described in the recitals hereinabove and
authorizes the Mayor to execute the documents entitled"General Certificate of Local Governmental
Unit" and"Certificate of Highest Elected Official Evidencing Public Approval pursuant to §147(f)
of the Internal Revenue Code of 1986, as amended"which are attached hereto as Exhibits "A" and
"B,"respectively, and made a part hereof for all intents and purposes.
Section 2: This resolution shall take effect immediately from and after its passage by the
City Council of the City of Baytown, Texas.
2535
INTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the
City of Baytown this the 11" day of September, 1997.
PETE C. ALFARO, Mayor
ATTEST:
P �
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
10-'� g4�m"
ACIO RAMIREZ, SRLCjPy Attorney
c:kl h57\Council\Resol utions\STHFCConvertibleNoteProgram.Resolution
2
GENERAL CERTIFICATE
OF LOCAL GOVERNMENTAL UNIT
I have executed this Certificate for the benefit of all persons interested in the validity of the
proceedings of The Southeast Texas Housing Finance Corporation (the "Issuer") related to the
issuance by the Issuer of its Convertible Program Notes, Series 1997-1 in an amount not to exceed
$12,500,000(the`Bonds"). Capitalized terms used herein and not otherwise defined shall have the
same meanings ascribed to such terms in the Texas Housing Finance Corporations Act, Chapter 394,
Texas Local Government Code, as amended (the"Act"). I hereby certify as follows:
I. I am the duly elected and incumbent official of
(the "Local Governmental Unit") holding the office indicated below.
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 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 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 the
resolution of the Issuer's board of directors authorizing the issuance of the Bonds or otherwise
affecting the Bond transaction.
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),
except a housing finance corporation that has no 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 a Local Governmental Unit which is a member of the Issuer. 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,the Bonds, the proceeding regarding the issuance of Bonds,
the bonds being refunded with the Bonds,the representation on the Issuer's board of directors of the
Ag.t 13, 1997
E>>a11BIT A
Local Governmental Unit, or the participation of the Local Governmental Unit in the Issuer or the
Program
Signature:
Printed Name:
OFFICE:
County Judge Mayor
County Clerk Mayor ProTem ❑
City Secretary El
LOCAL GOVERNMENTAL UNIT:
County of City of
Name of Member of Expiration of
Issuer's Board of Directors: Director's Tenn:
[DO NOT DATE THIS PAGE]
Date of this
Certificate:
August 13, 1997
CERTIFICATE OF HIGHEST ELECTED OFFICIAL
EVIDENCING PUBLIC APPROVAL PURSUANT TO
§147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
WHEREAS, The Southeast Texas Housing Finance Corporation(the "Corporation")has,
in accordance wit the provisions of the Housing Finance Corporations Act, Chapter 394, Local
Government Code, as amended, duly authorized the issuance of The Southeast Texas Housing
Finance Corporation Single Family Mortgage Revenue Bonds in one or more series in an aggregate
principal amount not to exceed$12,500,000(collectively,the`Bonds"). The Corporation authorized
the issuance of the bonds for the purpose of refunding certain outstanding obligations of the
Corporation and providing funds to purchase (i) fully modified mortgage-backed securities
guaranteed as to the timely payment of monthly principal and interest by the Government National
Mortgage Association and backed by pools of qualifying FHA insured, VA guaranteed USDA/RD
guaranteed mortgage loans, and (ii)mortgage-backed securities guaranteed as to timely payment of
monthly principal and interest by the Federal National Mortgage Association and backed by pools of
qualifying conventional mortgage loans. The mortgage loans will be made by certain mortgage
lending institutions to qualified persons or families of low or moderate income to finance the purchase
of single family residences in the State of Texas (the "Program");
WHEREAS, on August 27, 1997, the Corporation held public hearings in connection with
the issuance of the Bonds after due notice thereof was published in The Chronicle, a newspaper of
general circulation within the jurisdictions of each of the Local Governmental Units which comprise
the Corporation and which meets the requirements of§2051.044, Government Code, at which no
objections were raised by anyone present at the hearing;
WHEREAS,the provisions of Section 147(f) of the Code require that the issuance of certain
private activity bonds, such as the Bonds,must be approved by the"applicable elected representative"
of the "governmental unit" issuing said bonds or on whose behalf said bonds are being issued;
WHEREAS, under Section 147(f)(2)(E)(i)(I1) of the Code, the applicable elected
representative of the governmental unit is, in this case,the Mayor of the City of (the
"City"); and
WHEREAS, as the highest elected official of the City, the undersigned desires to approve
the issuance of the Bonds in one or more series for the purpose of financing the Program, on behalf
of the Corporation, all in accordance with Section 147(f) of the Code.
NOW,THREFORE, I, , Mayor of the City, do hereby certify
that I am the highest elected official of the City and I do hereby approve the issuance of the bonds
for the purpose of financing the cost of the Program on behalf of the Corporation, all in accordance
with Section 147(f) of the Code. I do hereby authorize the members of the Corporation and its
officers to cause this Certificate to be filed of record in the Transcript of Proceedings for the Bonds
Aug.t 25, 1997
EXHIBIT B
and to file a copy thereof with any state or federal agency, board or commission as may be required
by any applicable state or federal laws, rules or regulations.
WITNESS my signature this day of September, 1997.
Mayor
City of
Aagm135. 1997