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STEELE GEORGETOWN LIHTC, LLC, FOR THE RENOVATION OF THE
GEORGETOWN SQUARE APARTMENTS, LOCATED AT 206 ROYAL
DRIVE, GEORGETOWN, TEXAS.
Whereas, Steele Georgefo-w—n I:fKI-UL-EC,-a-l-ex-a-s-EimitecL Lia5i 1 ompany t-717,1�Picain
applying to the Texas Department of Housing and Community Affairs (the "TDHCA") for
Housing Tax Credits to provide equity financing for the renovation of existing affordable
housing for families called Georgetown Square Apartments (the -Project'), which is located at
206 Royal Drive, Georgetown, Texas, and which will be owned by the Applicant;
Whereas, a municipality may support an application to the TDHCA pursuant to Title 10, Part 1,
Chapter 11, Rule 11.9(d)(2) of the Texas Administrative Code, by providmig local political
subdivision financial support for a development through a loan, a grant or a contribution in
kind, and such support will qualify the development for points that are needed in order to
compete for Housing Tax Credits to provide financing for the Project;
Whereas, pursuant to Section 392.003 ® the Texas Local Government Code, the Texas
Legislature has found that there is a shortage of safe and sanitary housing at rents that persons
of low income can afford and that the providing of safe and sanitary housing for persons of low
income are public uses and purposes and governmental functions of state concern for which
public money may be spent;
Whereas, the Applicant has applied to the City for local political subdivision support for the
Project;
Whereas, the City wishes to support the Project by providing a loan to the Applicant with a
value that is sufficient to permit the Project to obtain maximum points for the City's financial
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Whereas, the City wishes to meet this support level by loaning $450,000 to the Applicant to pay
for construction costs for the Project;
Be it therefore resolved that:
1 . The City of Georgetown acting through the City Council, its governing body, hereby
confirms that it supports the Georgetown Square development to be located at 206 Royal Drive,
rexas, and that this formal action has been taken to put on record the opinion expressed by the
City on this date for the purpose of Title 10, Rule 11.9(d)(1) of the Texas Administrative Code.
2. The City Council hereby approves and authorizes the City of Georgetown's local
political subdivision financial support for the Project through the following: A firm
Resolution Number: 0 QIQIS--Y- Page I of
Description- Steele Georgetown LIHTC City Loan
11ate Approved: FJENV—A)�-gy to, -Jols I
commitment of funding in the form of a loan of $450,000 to the Applicant for the purpose of
paying construction costs attributable to the Project. Such loan shall be for a term of fifteen (15)
years, bearing interest at a fixed rate of three percent (3%) per annum, with monthly
installments based upon a 40 -year amortization period, with the unpaid balance of principal
and accrued but unpaid interest being due and payable upon maturity. The loan will be
conditioned upon an allocation of Housing Tax Credits to the Applicant prior to December 31,
2015, and a closing not later than July 1, 2016. The City has received the Applicant's funding
application request and is -pre-pared to fund this loan by September 1, 2015. The loan shall be
secured by a standby letter of credit payable to the City from a banking institution mutually
acceptable to the parties. The City Council acknowledges that the City is not a Related Party to
the Applicant as defined in Section 2306 of the Texas Government Code. Additionally, the City
acknowledges that these funds were not first provided by the Applicant.
3. The City Council hereby approves and authorizes the execution on behalf of the City of
all other documents and writings whatsoever that may be necessary or convenient, in the
reasonable opinion of the City Attorney, for carrying out these resolutions. These resolutions
are intended to authorize a loan that meets the requirements of Title 10, Part 1, Chapter 11, Rule
11.9(d)(2)(B)(i) and (C) and (D) of the Texas Administrative Code. To the extent that any
modification of terms is reasonably necessary to meet such requirements, the City Attorney is
hereby authorized to make such modification to the documents,
4. The City Council hereby authorizes, empowers and directs Dale Ross, Mayor of
Georgetown, to certify these resolutions to the TDHCA; and
5. These resolutions shall be effective as of their date of passage by City Council.
ATTEST:
JessI r -
V Brettle
Cit
Y Secretary
APPROVED AS TO ORM:
�'
Bridget Chapin n
City Attorney
THE CITY OF GEORGETOWN:
Dale Ross
Mayor
Resolution Number Page 2 ofT
Description: Steele Georgetown LIHTC City Loan
Date Approved: R�.(Z'U)W—y lo, 0_kWG_