CC Resolution No. 13852630
RESOLUTION NO. 1385
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, APPROVING THE SINGLE FAMILY MORTGAGE REVENUE NOTE
PROGRAM OF THE SOUTHEAST TEXAS HOUSING FINANCE
CORPORATION; DIRECTING THE MAYOR, SUBJECT TO THERE BEING NO
OPPOSITION LODGED AGAINST THE PROGRAM AT THE IMPENDING
PUBLIC HEARING OF THE CORPORATION, TO EXECUTE THE
APPROPRIATE CERTIFICATES EVIDENCING THE APPROVAL OF THE
SAME; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, the Southeast Texas Housing Finance Corporation (the "Corporation ") has
proposed another single family financing which will enable the Corporation to recapture prepayment
funds from previously issued single family mortgage revenue bonds, and convert said prepayments
into convertible notes (the "Bond Program ") for the use in generating new mortgages; and
WHEREAS, the Corporation has proposed offering up to $12,500,000 of tax - exempt
qualified mortgage revenue 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 provide 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; and
WHEREAS, the Mortgage Revenue 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
bonds, 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 Bond
Program; and
WHEREAS, the Corporation will hold a public hearing on March 12, 1999, in compliance
with federal law, concerning the Note Program; and
WHEREAS, this resolution shall be expressly contingent upon there being no opposition to
the Note Program voiced at such public hearing; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
2631
Section 1: That subject to no opposition being lodged to the Bond Program proposed by
the Corporation at the public hearing to be held on March 12, 1999, the City Council of the City of
Baytown, Texas, hereby evidences its approval of the Corporation's Bond 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. The Mayor is further directed to authorize the Attorney General of the State of Texas, any
Assistant Attorney General of the State of Texas or any of their respective delegates or assigns, to
complete the date on the general certificate.
Section 2: This resolution shall take effect immediately from and after its passage by the
City Council of the City of Baytown, Texas.
INTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the City
of Baytown this the 11th day of March, 1999.
PETE C. ALFARO, Mayor
APPROVED AS TO FORM:
i
ACIO RAMIREZ, City Attorney
c klhl4TCouncil\Resolut ions\ STHFCSingleFamilyMorigageRevenueNoteProgram .Resolution
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 Single Family Mortgage Revenue Notes, Series 1999 -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:
1. I am the duly elected and incumbent official of City of Baytown (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
EXHIBIT A
Bonds, the bonds being refunded with the Bonds, 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
or the Program.
Signature: �G� gyt
Printed Name: Pete C. Alfaro
OFFICE:
Mayor
Mayor ProTem
City Secretary
LOCAL GOVERNMENTAL UNIT:
City of Baytown
Name of Director
on Issuers Board: Daniel Sandoval
[DO NOT DATE THIS PAGE]
Expiration date
of Directors Term:
Date of this
Certificate:
March 12, 1999
Jim Thomassen, Chief
Public Finance Division
Office of the Attorney General
Price Daniel Building
209 West 14th Street, 6th Floor
Austin, Texas 78701
RE: The Southeast Texas Housing Finance Corporation
Single Family Mortgage Revenue Notes, Series 1999 -1
Dear Mr..Thomassen:
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 the "General
Certificate of Local Governmental Unit" of the undersigned Local Governmental Unit and to rely
upon such information unless notified otherwise.
0
Printed Name: Pete C. Alfaro
Title: Mayor
LOCAL GOVERNMENTAL UNIT
City of Baytown
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
to provide 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, (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 Friday, March 12, 1999, 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(0(2)(E)(i)(II) of the Code, the applicable elected representative
of the governmental unit is, in this case, the Mayor of the City of Baytown (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, THEREFORE, I, Pete C. Alfaro , Mayor, 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 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 March, 1999
Mayor Pete C. Alfaro
City of Baytown, Texas
EXHIBIT B