CC Resolution No. 1796 52
RESOLUTION NO. 1796
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS; AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE
GENERAL CERTIFICATES OF LOCAL GOVERNMENTAL UNIT AND THE
CERTIFICATE OF HIGHEST ELECTED OFFICIAL'S APPROVAL OF THE
SOUTHEAST TEXAS HOUSING FINANCE CORPORATION'S (SETH)
ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS (PIEDMONT
APARTMENTS) IN ONE OR MORE SERIES IN AN AGGREGATE AMOUNT
NOT TO EXCEED FIFTEEN MILLION AND NO/100 DOLLARS
($15,000,000.00); AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
WHEREAS, the Southeast Texas Housing Finance Corporation (the "Corporation") is
proposing to issue the Corporation's Multifamily Housing Revenue Bonds for a multifamily
property in the City of Baytown, Texas; and
WHEREAS, the Corporation has represented to the City of Baytown that (i) it has held a
public hearing concerning the anticipated bond issuance on May 31, 2006, at 12:15 p.m., in the
Lone Star Room of the Baytown Community Center; (ii) there was one comment made by an
attorney representing the Deer Park ISD, who opposed the project because of potential
overcrowding in San Jacinto Elementary School and Deer Park Junior School; and (iii) no one
submitted any written comments for the same; and
WHEREAS, the issuance of the above-referenced bonds is expected to advance the
Corporation's continued efforts in providing safe, decent, sanitary and affordable housing to
residents of its sponsoring political subdivisions; 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 approve the bonds and plan of financing; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes
and directs the Mayor to execute the General Certificates of Local Governmental Unit regarding
the Southeast Texas Housing Finance Corporation's (SETH) issuance of Multifamily Housing
Revenue Bonds (Piedmont Apartments) in one or more series in an aggregate amount not to
exceed FIFTEEN MILLION AND NO/100 DOLLARS ($15,000,000.00). Said certificates are
attached hereto as Exhibit "A" and incorporated herein for all intents and purposes.
Section 2: That the City Council of the City of Baytown hereby authorizes and
directs the Mayor to execute the Highest Elected Official's Approval of the issuance of Bonds by
the Southeast Texas Housing Finance Corporation and the plan of financing thereof concerning
53
the bonds referenced in Section 1 hereof, which is attached hereto as Exhibit `B" and
incorporated herein for all intents and purposes.
Section 3: 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 t4affinnatveity Council of the
City of Baytown this the 22nd day of June, 2006.
W Mayo
LORRI COO Y, City Clerk
APPROVED AS TO FORM:
qONttrer��
ACIO RAMIREZ, S , City Attorney
RAKaren\Files\City Counci1\Reso1utions\2006\June 22\SBTHbondsPiedmontApartments.doe
2
GENERAL CERTIFICATE OF LOCAL GOVERNMENTAL UNIT
I hereby certify that I am a duly elected or appointed and an acting officer of the City of
Baytown, Texas (the "Local Governmental Unit"). I do hereby further certify that:
1. This Certificate is for the benefit of the Attorney General of the State of Texas (the
"Attorney General") and all persons interested in the validity of the proceedings of The
Southeast Texas Housing Finance Corporation (the "Corporation") related to the issuance by the
Corporation of its Multifamily Housing Revenue Bonds (Piedmont Apartments) in one or more
series(the "Bonds") in an aggregate amount not to exceed $15,000,000.
2. The City Council (the "Governing Body") of the Local Governmental Unit
authorized the creation of the Corporation as a joint housing finance corporation pursuant to the
Texas Housing Finance Corporations Act, Texas Local Government Code, Chapter 394, as
amended (the "Act"), and approved the Articles of Incorporation (and all amendments thereto).
The Corporation's Articles of Incorporation have not been amended since March 29, 1983.
3. The officers and directors of the Corporation are currently as follows:
SPONSORING
NAME OFFICE LOCAL GOVERNMENT
Winnie Corsaro President City of Santa Fe
Gary Meyer First Vice President Cities of La Marque and Texas
City
E. Rusty Vidrine Second Vice President City of League City
I.O. Coleman, Jr. Assistant Secretary Wharton County
Bob Allen Director City of Pasadena
Carolyn Bilski Director Austin County
Jerry Cornelius Director City of Deer Park
George Deshotels Director Matagorda County
Joseph Gomer Director City of Shoreacres
Andrea Greer Director City of Dickinson
Rick Ferguson Director Chambers County
H.G. Harrington Director City of Tomball
Pat Muston Director City of La Porte
Daniel Sandoval Director City of Baytown
John Towner Director Galveston County
Milton Whiting Director Waller County
Brian Woodward Director Walker County
Andy Zumwalt Director Brazoria County
Vacant Director Liberty County
cCS.doc HIBIT A
162921 UBMC
4. The Governing Body has taken no action pursuant to the Act, including
Section 394.016(c) thereof, or otherwise, to limit the effectiveness of the resolution authorizing
the issuance of the Bonds or in any way affecting the proceedings relating to the issuance of the
Bonds.
5. The Governing Body has not created any other Corporation with the power to make
home mortgages or loans to lending institutions or borrowers, the proceeds of which are to be
used to make home mortgages or loans on residential developments.
6. No litigation is pending, or to our knowledge threatened, in any court in any way
affecting the existence of the Corporation or seeking to restrain or to enjoin the issuance, sale or
delivery of the Bonds, or in any way contesting or affecting the validity or enforceability of the
Bonds or the financing documents to which the Corporation is a party, or contesting in any way
the completeness or accuracy of the statements made in the offering document relating to the
Bonds, or contesting the powers of the Corporation or its authority with respect to the financing
documents to which it is party.
7. Each of the undersigned officers of the Local Governmental Unit hereby certifies
that he or she is the duly elected or appointed incumbent of the office appearing below his or her
signature and that the signature of the other officer appearing below is the true and correct
signature of such person.
8. The Attorney General of the State of Texas is hereby authorized and directed to date
this certificate concurrently with the date of his approval of the Bonds and this Certificate shall
be deemed for all purposes to be accurate and correct on and as of that date and on and as of the
date of the initial issuance and delivery of the Bonds to the initial purchasers thereof.
[Remainder of page intentionally left blank]
EXECUTED AND DELIVERED AS OF THE DATE SET FORTH BELOW.
CITY OF BAYTO,, TEXAS
ayor tep en H. DonCarlo
DO NOT DATE THIS PAGE
Date of this
Certificate:
HIGHEST ELECTED OFFICIAL'S APPROVAL OF THE
ISSUANCE OF BONDS BY THE SOUTHEAST TEXAS HOUSING FINANCE
CORPORATION AND THE PLAN OF FINANCING THEREOF
WHEREAS, the City of Baytown, Texas (the "City") has approved and authorized the
creation of The Southeast Texas Housing Finance Corporation (the "Corporation") as a joint
housing finance corporation, pursuant to the Texas Housing Finance Corporations Act, Texas
Local Government Code, Chapter 394, as amended (the "Act"), to act on behalf of the City, in
carrying out the public purposes of the Act;
WHEREAS, the Corporation is authorized by the Act to issue its bonds on behalf of the
City for the purpose of obtaining funds to finance home mortgage loans to persons of low and
moderate income for homes located within the jurisdiction of the Corporation and to make loans
to borrowers for use in financing residential developments located within the jurisdiction of the
Corporation intended to be occupied by persons of low and moderate income;
WHEREAS, the Corporation proposes to issue Multifamily Housing Revenue Bonds
(Piedmont Apartments) in one or more series in an aggregate amount not to exceed $15,000,000
in order to provide funds to loan to HFI Piedmont Apartments, L.P., or an affiliate thereof, for
the payment of costs related to the construction of a 250-unit housing community located in the
City of Baytown, Texas;
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the
"Code"), requires the chief elected executive officer of the City, as "applicable elected
representative" thereof, to approve the issuance of the Bonds and the plan of financing thereof
after a public hearing following reasonable public notice;
WHEREAS, an authorized representative of the Corporation conducted a public hearing at
12:15 p.m. on Wednesday, May 31, 2006, in the Lone Star Room, Baytown Community Center,
2407 Market Street, Baytown, Baytown, Texas, following publication of notice thereof in the
"Houston Chronicle" and the "Beaumont Enterprise, " newspapers of general circulation in the
City, at least 14 days prior to the date of the public hearings. (A copy of such notice is attached
hereto as Exhibit A);
WHEREAS, I am the chief elected executive officer of the City and, as such, I am
authorized to approve the issuance of the Bonds and the plan of financing thereof; and
WHEREAS, I am familiar with the facts and circumstances regarding the issuance of the
Bonds and the plan of financing thereof;
Highest Elected Official.doc EMIT B
1629211/BMC
I Now, THEREFORE, HEREBY APPROVE the issuance of the Bonds in the amount and for
the purposes referred to or described in the recitals hereof and Exhibit A hereto and the plan of
financing with respect thereto, as required by and for purposes of Section 147(f) of the Code.
This approval shall take effect immediately.
APPROVED AS OF, E DATE SET FORTH BELOW.
i
/MaySte�to . DonCarlos
wn, Texas
DO NOT DATE THIS PAGE
Date of this
Certificate:
EXHIBIT A
THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION
NOTICE OF PUBLIC HEARING
In accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended,
notice is hereby given that The Southeast Texas Housing Finance Corporation (the
"Corporation") will hold a public hearing at 12:15 p.m. on May 31, 2006, in the Lone Star
Room, Baytown Community Center, 2407 Market Street, Baytown, Texas, 77520. The
Corporation's designated hearing officer will conduct the hearing on behalf of the Texas
Counties of Austin, Brazoria, Chambers, Galveston, Liberty, Matagorda, Walker, Waller and
Wharton and the Texas Cities of Baytown, Deer Park, Dickinson, La Marque, La Porte, League
City, Pasadena, Santa Fe, Shoreacres, Texas City and Tomball (the "Sponsoring Political
Subdivisions").
The purpose of the hearing is to provide residents of the Sponsoring Political
Subdivisions an opportunity to comment on the proposed issuance by the Corporation of its
Multifamily Housing Revenue Bonds (Piedmont Apartments) to be issued in one or more series
(the "Bonds") in an aggregate face amount of not more than $15,000,000. The Bonds will be
issued for the benefit of HFI Piedmont Apartments, L.P., or an affiliate thereof (the
"Borrower"), in connection with the construction of a 250-unit housing community to be known
as Piedmont Apartments located at the southeast intersection of State Highway 330 (Decker
Drive) and 1-10 East Freeway,Baytown,Texas, 77520 (the "Property"). The Borrower will own
the Property.
The Bonds will be limited obligations of the Corporation, payable solely from the
revenues, receipts and resources of the Corporation pledged to their payment. The Bonds will
not constitute an indebtedness or obligation of any of the Sponsoring Political Subdivisions (or
any other city, county or other municipal or political corporation or subdivision of the State of
Texas) or of the State of Texas, or a loan of credit of any of them, within the meaning of any
constitutional or statutory provision.
All interested persons are invited to attend the hearing and present written or oral
comments on the proposed issuance of the Bonds. Questions or written comments prior to the
date of the hearing may be directed to The Southeast Texas Housing Finance Corporation, I I I I I
S. Sam Houston Parkway East, Houston, Texas, 77089, Attention: Ron Williams.