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HomeMy WebLinkAboutResolution - 2023-R0278 - Certificate of Approval for Lubbock Housing Finance Corp. Revenue BondsResolution No. 2023-RO278 Item No. 5.40 May 23, 2023 RESOLUTION 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 $25,000,000 (the "Bonds"); and WHEREAS, the Bonds will be issued for the benefit of The Ella TX TC, LP, or an affiliate thereof (the "Borrower"), in connection with the acquisition, rehabilitation and equipping of approximately 152 multifamily rental housing units located at 1102 58`h Street, Lubbock, Texas 79412 known as The Ella 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 April 24, 2023 (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 23rd day of May , 2023. ATTEST: ASI �"K Courtney Paz, City ecretary APPROVED AS TO CONTENT: D. u Koste 'ch, Chief Financia Officer APPROVED AS TO FORM: Amy S' s, Deputy City Attorney Page 2 of 2 Resolution No. 2023-RO278 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 principal amount of not more than $25,000,000 (The Ella Apartments) (the "Bonds "). The Bonds will be issued for the benefit of The Ella TX TC, LP, or an affiliate thereof (the "Borrower "), in connection with the acquisition, rehabilitation and equipping of approximately 152 multifamily rental housing units located at 1102 58th Street, Lubbock, Texas 79412 and known as "The Ella Apartments" (the "Development"). All of the units in the Development are located in the City of Lubbock, Texas. The Borrower or an affiliate of the Borrower, will own the Development and the land on which the Development is located. 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 the City of Lubbock, Texas, on the date set forth below. a� Payne, Mayor of Lubbock, Texas Dated: May 23 , 2023 Tefra Approval Certificate (The Ella) 4881-3123-4911 v3 2309557 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 (The Ella 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, Paul Dannevik, 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 the City which is the 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 be General and No Litigation Certificate (The Ella) 4871-5868-0671 Q 2309557 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. AT DATED: [TO BE DATED BY ATTORNEY GENERAL OF THE STATE OF TEXAS] CITY OF LUBBOCK, TEXAS