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HomeMy WebLinkAboutRES 021015-M - Loan Rehab NW Apts• i • # • p, a r i ♦ R MORMON DEVELOPMENT IN THE FORM OF A LOAVV III I HVM 2015 GEORGETOWN, LTD, FOR THE REHABILATATION OF THE NORTHWEST APARTMENTS, ♦D AT 1623 E. NORTHWEST BOULEVARD, GEORGETOWN, Whereas, HVM 2015 Georgetown,••licant"), is applying to the Texas Departmentof Housing• Communityfor •using Tax Credits to provide equity financing for • • of • •,rle housing for families called Northwest Apartments (the "Project"), which is located at 1623 E. Northwest Boulevard, Georgetown, TX and which will be owned bthe•• Whereas, a municipality may support an application to the TDCA pursuant to Title 10, Part 1, Chapter 11, Rule 11.9(d)(2) of the Texas Administrative Code, by providing 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 of 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 points for the City's financial support; Whereas, the City wishes to meet this support level by loaning $197,633 to the Applicant to pay for construction costs for the Project; Be it therefore resolved that; 1 . The City of .• g-'twn acting through the City Council,• •ra .� Boulevard, Georgetown, Texas, and that this formal action has been taken to put on record t opinion expressed by the City on this date for the purpose of Title 10, Rule 11.9(d)(1) of Texas . supportsconfirms that it • p. development • -• r • 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 Resolutionr b • • Description: HVM 2i -e+ •- M r. commitment of funding in the form of a loan of $197,633 to the Applicant for the purpose of paying construction costs attributable to the Project. Such loan shall be for a term of 5 years, bearing interest at a fixed rate of three percent (3%) per annum, with unpaid balance of principal and accrued 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 closmig not later than July 1, 2016. The City has received the Applicant's funding application request and is prepared to fund this loan by September 1, 2015. The loan shall be secured by a 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 App icant. 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) 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. APY4ZOVED AS T F Bridget Chapml City Attorney THE CITY OF GEORGETOWN: Dale Ross Mayor Resolution Number: -0 *At 0 1197- M Page 2 of Description: HVM 2015 Georgetown City Loan Date Approved- T��A'Ir-Y 110t DOLS- 1