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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. ********************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** 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 2037 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 - 2 - 2038 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 C:1:78:11 - 3 -