CC Resolution No. 11332036
RESOLUTION NO. 1133
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, APPROVING ISSUANCE OF SINGLE FAMILY MORTGAGE
REVENUE BONDS AND REVENUE REFUNDING BONDS BY THE
SOUTHEAST TEXAS HOUSING FINANCE CORPORATION.
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WHEREAS, the Southeast Texas Housing Finance Corporation
(the "Issuer "), a public nonprofit corporation organized under
the laws of the State of Texas pursuant to the Texas Housing
Finance Corporations Act, Texas Local Government Code, Chapter
394, to act on behalf of the counties of Austin, Brazoria,
Chambers, Fort Bend, Galveston, Liberty, Matagorda, Walker,
Waller and Wharton, Texas and the cities of Baytown, Deer Park,
Dickinson, La Marque, La Porte, League City, Pasadena, Santa Fe,
Shoreacres, Texas City and Tomball, Texas (the "Local
Governmental Units "), proposes to issue its limited obligation
revenue bonds known as "The Southeast Texas Housing Finance
Corporation Single Family Mortgage Revenue Bonds (GNMA and FNMA
Mortgage- Backed Securities Program) , 1991 Series All in the
aggregate principal amount not to exceed $30,000,000 (the 111991
Bonds "), to provide financing for owner - occupied residences
through the acquisition of securities ( "Mortgage- Backed
Securities ") guaranteed as to payment of principal and interest
by the Government National Mortgage Association or the Federal
National Mortgage Association and backed by home mortgage loans
( "Qualified Mortgage Loans ") made with respect to residences
located within the Local Governmental Units (excluding the
portion of the City of Houston within Fort Bend County and the
portion of Galveston County within the City of Galveston) and
owned and occupied by persons of low and moderate income; and
WHEREAS, the Issuer proposes to issue its limited obligation
revenue refunding bonds known as "The Southeast Texas Housing
Finance Corporation Single Family Mortgage Revenue Refunding
Bonds (GNMA and FNMA Mortgage- Backed Securities Program) , 1991
Series All in an aggregate principal amount not to exceed
$7,950,000 (the "Series A Refunding Bonds ") for the purpose of
refunding $7,950,000 aggregate principal amount of the Issuer's
limited obligations revenue refunding bonds known as "The
Southeast Texas Housing Finance Corporation Single Family
Mortgage Revenue Refunding Bonds (GNMA Mortgage- Backed Securities
Program), 1991 Series All (the 111991 Prior Bonds ") in order to use
moneys on deposit with the trustee for the 1991 Prior Bonds to
provide financing for owner - occupied residences through the
acquisition of Mortgage- Backed Securities backed by Qualified
Mortgage Loans; and
WHEREAS, the Issuer proposes to issue its limited obligation
revenue refunding bonds known as "The Southeast Texas Housing
Finance Corporation Single Family Mortgage Revenue Refunding
Bonds (GNMA and FNMA Mortgage- Backed Securities Program) , 1991
Series B" in an aggregate principal amount not to exceed
$12,790,000 (the "Series B Refunding Bonds ") for the purpose of
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refunding $12,790,000 aggregate principal amount of the Issuer's
limited obligation revenue refunding bonds known as "The
Southeast Texas Housing Finance Corporation Single Family
Mortgage Revenue Refunding Bonds (GNMA Mortgage- Backed Securities
Program), 1990 Series A, 1990 Series B, 1990 Series C, 1990
Series D and 1990 Series E" (the 111990 Prior Bonds ") in order to
use monies on deposit with the trustee for the 1990 Prior Bonds
to provide financing for owner - occupied residences through the
acquisition of Mortgage- Backed Securities backed by Qualified
Mortgage Loans; and
WHEREAS, Section 147(f) of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder (the
"Code ") require that, in order for interest on bonds issued to
finance single family housing to be excluded from gross income
for federal income tax purposes, the issuance of such bonds must
be approved by the governmental unit within which such housing is
located, and the other governmental units which sponsor the bond -
issuing authority, after holding a public hearing where affected
members of the public are allowed to present their view on the
proposed bond issue; and
WHEREAS, Section 147(f) of the Code further provides that
the issuance of such bonds shall be treated as having been
approved by such governmental units if, after such public
hearing, such issue is approved by the respective applicable
elected representatives of such governmental units; and
WHEREAS, the undersigned is the applicable elected
representative for a governmental unit sponsoring the Issuer and
such single family housing may be located within the boundaries
of such governmental unit; and
WHEREAS, a public hearing was held by a representative of
the Issuer at 10:00 a.m., on November 1, 1991, at 4620 Fairmont
Parkway, Suite 201, Pasadena, Texas 77504, following public
notice published at least fourteen days prior to such hearing,
where affected members of the public were allowed to present
their views on the proposed issuance of the 1991 Bonds, the
Series A Refunding Bonds and the Series B Refunding Bonds
(collectively, the "Bonds "); and
WHEREAS, the undersigned has been apprised of the results of
such public hearing; and
WHEREAS, the undersigned hereby finds and declares that the
issuance by the Issuer of the Bonds should be approved and is in
the best interests of the inhabitants of the Local Governmental
Unit named below (the "Applicable Unit "); NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN:
Section 1: That the City Council of the City of Baytown
hereby approves the issuance by the Issuer of (a) the 1991 Bonds
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in an aggregate principal amount not to exceed $30,000,000, (b)
the Series A Refunding Bonds in an aggregate principal amount not
to exceed $7,950,000, and (c) the Series B Refunding bonds in an
aggregate principal amount not to exceed $12,790,000, all to
provide financing for owner - occupied residences through the
acquisition of Mortgage- Backed Securities backed by Qualified
Mortgage Loans.
Section 2: That the City Council of the City of Baytown
represents that this approval is adopted for the purpose of
satisfying the conditions and requirements of Section 147(f) of
the Code.
Section 3: That the City Council further represents that
this approval is not to be construed as (i) a representation or
warranty by the State of Texas, the Applicable Unit, or any other
political or municipal corporation or subdivision of the State of
Texas that the Bonds will be paid or that any obligations assumed
in connection with the Bonds by any of the parties concerned will
in fact be performed; (ii) a pledge of the faith and credit of or
by the State of Texas, the Applicable Unit or any other political
or municipal corporation or subdivision of the State of Texas; or
(iii) a representative or warranty concerning the validity of the
Bonds.
Section 4: That this Resolution shall take effect from and
after its passage by the City Council.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown this the 2nd da of December,
1991.
EMMETT O. HUT , Mayor
ATTEST:
DA ILGORE, %Dep ty Clerk
,, ACIO RAMIREZ, S , City Attorney
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