Loading...
HomeMy WebLinkAboutResolution - 2022-R0187 - Tax-Exempt Multifamily Housing Revenue Bonds for Lubbock Housing Finance CorpResolution No. 2022-RO187 Item No. 7.11 April 26, 2022 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: WHEREAS, the Lubbock Housing Finance Corporation (the "Corporation") is a nonprofit corporation established for the purpose of providing affordable housing within the City of Lubbock; and WHEREAS, the Corporation has proposed to issue of one or more series of tax exempt multifamily housing revenue bonds in an aggregate face amount of not more than $30,000,000 (South Plains Apartments & Homestead Apartments) (the "Bonds"); and WHEREAS, the Bonds will be issued for the benefit of LIH South Plains Preservation, LP, or an affiliate thereof (the "Borrower"), in connection with the acquisition, rehabilitation and equipping of approximately 144 multifamily rental housing units located at 5520 58th Street, Lubbock, Texas 79414 known as South Plains Apartments and approximately 100 multifamily rental housing units located 5401 56th Street, Lubbock, Texas 79414 known as Homestead Apartments, all of such units located in the City of Lubbock, Texas; and WHEREAS, pursuant to the provisions of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Issuer has caused to be published a notice of a public hearing with respect to the issuance of the Bonds and the financing and refinancing of the Project, and held such a hearing after a reasonable notice on March 17, 2022 (the "TEFRA Hearing"); and WHEREAS, pursuant to the provisions of Section 147(f) of the Code and State law, the City Council of the City is the designated "applicable elected representative" authorized to approve, after the TEFRA Hearing, the issuance of the Bonds by the Issuer to enable the Bonds to qualify as tax-exempt obligations under the Code; and THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LUBBOCK, TEXAS: Section 1. THAT the City Council, solely for the purposes of Section 147(f) of the Code, hereby approves the issuance of the Bonds by the Issuer to finance or refinance the Project for the benefit of the Borrower. Section 2. THAT the foregoing approval is given in accordance with the provisions of Section 147(f) of the Code and for no other purposes and is not to be construed as a financial undertaking by the City. The Bonds shall not constitute a liability, indebtedness, or an obligation of the City, nor shall any of the assets of the City be pledged to the payment of the Bonds. Section 3. THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Certificate of Approval for Issuance of Tax - Exempt Multifamily Housing Revenue Bonds, and all related documents. Said Certificate of Approval is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the City Council. Page 1 of 2 Passed by the City Council on the 26th day of April , 2022, WEST: Garza, City APPROVED AS TO CONTENT: rA AS TO FORM: Deputy Officer (Z-1— DANIEL M. POPE, MAYOR Page 2 of 2 Resolution No. 2022-RO187 CERTIFICATE OF APPROVAL FOR ISSUANCE OF TAX-EXEMPT MULTIFAMILY HOUSING REVENUE BONDS I, the chief elected executive officer of the City of Lubbock, Texas, elected at -large by the voters of the City of Lubbock, Texas, make this certificate solely to satisfy the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, with respect to the proposed issuance of one or more series of tax-exempt multifamily housing revenue bonds by The Lubbock Housing Finance Corporation (the "Corporation ") in an aggregate face amount of not more than $30,000,000 (South Plains Apartments & Homestead Apartments) (the "Bonds "). The Bonds will be issued for the benefit of LIE South Plains Preservation, LP, or an affiliate thereof (the "Borrower "), in connection with the acquisition, rehabilitation and equipping of approximately 144 multifamily rental housing units located at 5520 58th Street, Lubbock, Texas 79414 known as South Plains Apartments and approximately 100 multifamily rental housing units located 5401 56th Street, Lubbock, Texas 79414 known as Homestead Apartments, all of such units located in the City of Lubbock, Texas (the "Development "). The Borrower will own the Development. A public hearing was held on behalf of the City of Lubbock, Texas, by Shari Flynn, the designated hearing officer, as described in the attached Certificate of Hearing Officer. As the "applicable elected representative" of the City of Lubbock, Texas, I approve the issuance of the Bonds in the amount and for the purpose described above. This approval is not: (1) a warranty by the City of Lubbock, Texas, the Mayor of the City of Lubbock, Texas, or of any agency, political subdivision, or instrumentality of the State of Texas that the Bonds will be paid or that any of the obligations assumed in connection with issuance of the Bonds will in fact be performed; (2) a pledge of the faith and credit of the State of Texas or of any agency, political subdivision, or instrumentality the State of Texas; or (3) a warranty of the validity of the corporate existence of the Corporation or of the Bonds themselves. IN WITNESS WHEREOF, I have officially signed my name in e City of Lubbock, Texas, on the date set forth below. Dan Pope, Mayor City of Lubbock, Texas Dated: April 26 , 2022 Tefia Approval Certificate 4869-7018-9079 v2 2299329 GENERAL AND NO LITIGATION CERTIFICATE OF THE CITY OF LUBBOCK We hereby certify that we are duly elected or appointed and acting officers of the City of Lubbock, Texas (the "City'). We 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 Lubbock Housing Finance Corporation (the "Corporation ") related to the issuance by the Corporation of its multifamily housing revenue bonds entitled "The Lubbock Housing Finance Corporation Multifamily Housing Revenue Bonds (South Plains Apartments & Homestead Apartments)" issued in one or more series (the "Bonds'). 2. The City Council (the "Governing Body ") of the City authorized the membership of the City in the Corporation, a joint housing finance corporation created pursuant to the Texas Housing Finance Corporations Act, Chapter 394, Local Government Code, as amended (the "Act "), and approved the Articles of Incorporation and Bylaws of the Corporation (and all amendments thereto). 3. The City has appointed Tom Couture, Dwight Overton, Nita Kiesling, Vickie Noyola-Al Souki, Nicholas Bergfeld, Ty Craft and Carl Russell to act as members of the board of directors of the Corporation. Each individual is a resident of a city or county which is a member of the Corporation. 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 that currently has the power to make home mortgages or loans to lending institutions, the proceeds of which are to be used to make home mortgage 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 any disclosure document prepared in connection with the issuance of 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 City 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 General and No Litigation Certificate 4877-4194-1015 Q 2299329 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. 9. By his or her signature hereto, the undersigned representative of the Governing Body assumes no liability whatsoever with respect to the Bonds. The Bonds are not an indebtedness of the Governing Body or the City and the Governing Body and the City shall have no liability therefor. [Remainder of Page Intentionally Left Blank] EXECUTED AND DELIVERED AS OF THE DATE SET FORTH BELOW. CITY OF LUBB ,TEXAS By Mayor Dan Pope ATTEST By 'ty Secretary DATED: [TO BE DATED BY ATTORNEY GENERAL OF THE STATE OF TEXAS] CERTIFICATE OF HEARING OFFICER I, the undersigned, acting as hearing officer (the "Hearing Officer"), do hereby make and execute this certificate for the benefit of all persons interested in the proposed issuance of The Lubbock Housing Finance Corporation Multifamily Housing Revenue Bonds (South Plains Apartments & Homestead Apartments) to be issued in a principal amount not to exceed $30,000,000 (the "Bonds") for the benefit of LIH South Plains Preservation, LP, or an affiliate thereof, in connection with the acquisition, rehabilitation and equipping of approximately 144 multifamily rental housing units located at 5520 58th Street, Lubbock, Texas 79414 known as South Plains Apartments and approximately 100 multifamily rental housing units located 5401 56th Street, Lubbock, Texas 79414 known as Homestead Apartments, all of such units located in the City of Lubbock, Texas (the "Development"). I hereby certify as follows: 1. That I am the duly appointed Hearing Officer for the public hearing that was held on March 17, 2022, at 11:00 a.m. Central time telephonically whereby all interested persons could monitor and participate in the hearing by calling (800) 330-3765 (a toll -free telephone number) and entering 312-845-3277, followed by a pound key (#), in connection with the issuance of the Bonds. 2. That notice of the public hearing was published no less than 7 days before the date of the public hearing in a newspaper or newspapers of general circulation available to residents of Lubbock, Texas, as described in Exhibit A attached hereto; the notice included the date, time and place of the public hearing, the location, a description of the Development and the maximum aggregate principal amount of the Bonds. 3. That all interested persons appearing at the public hearing were given an opportunity to comment on the proposed issuance of the Bonds and the Development. The names and comments of all interested persons appearing at the public hearing, if any, are set forth in Exhibit A attached hereto. 4. That after giving all interested persons an opportunity to attend the hearing telephonically by dialing into the toll -free telephone conference line number noted above and comment, the public hearing was declared closed. 5. That copy of the Affidavit of Publication of Notice of Public Hearing is set forth in Exhibit B attached hereto. [Remainder of Page Intentionally Left Blank] certificate of hearing officer 4854-8668-3667 v2.docx 2299329 WITNESS MY HAND this 17th day of March, 2022. Shari Flynn, Hearin Officer EXHIBIT A MINUTES OF PUBLIC HEARING A public hearing was held by The Lubbock Housing Finance Corporation (the "Issuer") telephonically whereby all interested persons could monitor and participate in the hearing by calling (800) 330-3765 (a toll -free telephone number) and entering 312-845-3277, followed by a pound key (#), on March 17, 2022, beginning at 11:00 a.m. Central time. The hearing was held with respect to the proposed issuance by the Issuer of not to exceed $30,000,000 of its Multifamily Housing Revenue Bonds (South Plains Apartments & Homestead Apartments) (the "Bonds") in satisfaction of the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, regarding the public approval prerequisite to the excludability of the interest on the Bonds from gross income for federal income tax purposes. The Notice of Public Hearing published in the Lubbock Avalanche -Journal on March 7, 2022 indicated that the proceeds of the Bonds will be used to finance the acquisition, rehabilitation and equipping of South Plains Apartments and Homestead Apartments (the "Development"), located within the geographic limits of the City of Lubbock, Texas, by LIH South Plains Preservation, LP, or an affiliate thereof (the "Borrower"). Present at the hearing on behalf of the Issuer were Shari Flynn, the hearing officer for the Issuer (the "Hearing Officer"), Ryan J. Bowen and Evelyn Irwin of Chapman and Cutler LLP, bond counsel to the Issuer and James Crowder and Andrea Lau of LEDG Capital, LLC, an affiliate of the Borrower. The Hearing Officer called the meeting to order and asked if there were any interested persons present who wished to express their views with respect to the issuance of the Bonds, or the Development being financed. No one expressed an interest to speak. Whereupon the Hearing Officer closed the public hearing at 11:15 a.m. EXHIBIT B AFFIDAVIT OF PUBLICATION OF NOTICE OF PUBLIC HEARING AFFP PUBLIC NOTICE Miller Advertising Agency 10 Rockefeller Plaza, Suite 1016 New York, NY 10020 Affidavit of Publication State of Wisconsin County of Brown I, said Legal Clerk, being duly swom, says: That I am the Legal Clerk of the Avalanche-Joumal, a daily newspaper of general circulation, printed and published in Lubbock, Lubbock County, Texas; that the publication, a copy of which is attached hereto, was published in the said newspaper on the following dates: March 7, 2022 General circulation in the following counties: Cochran, Crosby, Dawson, Floyd, Gaines, Garza, Hale, Hockley, Lamb, Lubbock, Lynn, Motley, Terry, and Yoakum That said newspaper was regularly issued and circulated on those dates. SIGNED: Legal CIA Subscribed to and swom to me this 8th day ofMarch, 2022. fi)4* Notary Public, State of Wisconsin, County of Brown My commission expires: ���• 00011757 16115283 V I C KY F E LTY Notary Public State of Wisconsin THE LUBBOCK HOUSING FINANCE CORPORATION NOTICE OF PUBLIC HEARING In accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code'), notice is hereby given that The Lubbock Housing Finance Corporation (the "Corporation') will hold a public hearing telephonically at 11:00 a.m. Central time on Thursday, March 17, 2022. All persons interested may monitor and participate in the hearing by calling (800) 330-3765 (a toll -free telephone number) and entering 312-845-3277, followed by a pound key (#) promptly at 11:00 a.m. Central time on March 17, 2022. The Corporation's designated hearing officer will conduct the hearing on behalf of the City of Lubbock, Texas (the "Sponsoring Political Subdivision'). The purpose of the hearing is to provide residents of the Sponsoring Political Subdivision an opportunity to comment on the proposed issuance bythe Corporation of its Multifamily Housing Revenue Bonds to be issued in one or more series (the "Bonds') in an aggregate face amount of not more than $30,000,000. The Bonds will be issued for the benefit of LIH South Plains Preservation, LP, or an affiliate thereof (the "Borrower'), to finance a portion of the costs in an amount not to exceed $30,000,000 of the acquisition, rehabilitation and equipping of approximately 144 multifamily housing units located at 5520 58th Street, Lubbock, Texas 79414 (the "South Plains Development') and to finance a portion of the costs in an amount not to exceed $30,000,000 of the acquisition, rehabilitation and equipping of approximately 100 multifamily housing units located at 5401 56th Street, Lubbock, Texas 79414 (the "Homestead Development" and, together with the South Plains Development, the "Developments') and consisting of approximately 244 units. The Borrower will own the Developments and the land on which the Developments are situated. 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 the Sponsoring Political Subdivision (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 telephonically by dialing into the toll -free telephone conference line number noted above and will be given the opportunity to express their views on the proposed issuance of the Bonds at a designated point in the public hearing. Questions or written comments may be submitted to The Lubbock Housing Finance Corporation no later than 4:00 p.m. Central time on March 16, 2022 via e-mail at sflynn@lubbockhousing.com or at 3212 Avenue Q, Lubbock, Texas 79411, Attention: Shari Flynn at (806) 745-9559. LUSSOCKONLINLCOM I MONOAY, MARCH r. 2012: *a Announcements....... Education /Training..... Financial ............ Employment ........ . General Merchandise... . Pats / Liwstodc........ Ranch / Farm / Garden ... Real Estate.......... . Recreation.......... . Rentals ............. Transportation ....... . service Directory ...... an SOLD. FOUND. View our mobile automotive and real estate m.autos.lubbockonline.com & m.homes. lubbockonline.com Employment Real Estate, Autos, General Merchandise 806.642.0806 Shauma 800.695.1926 or LubbockAJdass@gannetLoom sgulsbyQlocallq.com or visit us online at Legals LubbockAJLegals0gannett.com btSc �k5 7 AMTIOYB MALL OF LUBBOCK 72" _ 19 TN>Ibeat ALSO mean wa esAn. eALa sssR sea Atl.7a!!K aArAn e•lA aamm Oi Wt--•ice-- �w�ar��iwr rr w.tre�irM t •••aa�•er r B ! BRICK WORKI Ra1WbW Oue1RYMbm sa•CIOWN In BrkII rapwrs aw Ah— Rrealxab -1 Do TM Jeae ORMra Do" Want.. 30 Yeers Exa«I•nce Eddie Walters stsayso MRnlro �w BB8 Nia eat Pltees Paid r« el..a Aaou.ae« tTaralro o. Na BOB•7d8-0208 1. MOnumtnt/ �, ctmtctrY Iql Ranch, Farm, & Garden 11` Pets & Livestock Dogs - 7i i , \unl x.\\rll ♦.1 G♦ \�I. AYYX.\I\.\I.♦ F'/.. 1.92,9 (806) 763.5331 chassmiddleton.com Is Financing 17 �..r� Recreation RV/TrovCl TrailtK7'�L Campers /�• U 01RIPOW Real Estate SCOTT LAND COMPANY, LLC RANCH i FARM REAL ESTATE Ben G. 500tt— BfWOef lostaa Al Ner.x-xAtw 800.933-%98 5:00—Aa00sun IRent 0 �X Transportation • 1 • L 1 CALL 00000000 1-800- 695-1926