HomeMy WebLinkAbout26347-06.04.1979 EXCERPT FROM MINUTES OF MEETING ----
OF CITY OF WATERLOO HOUSING AUTHORITY
Th- members of the City of Waterloo Housing thority
(the "Authority" et in 274a- 1..--'-'
sessiovat its
regular meeting place t 7.( ) o'clock on .Tt 4 1g79 ►
1979 , with iex, 'p_ RoofF , bairman, pres pt and presiding and
the following members present:
Delman Borers Jaffa �. Lorton ., Iimiz. D. Dame III
Harold E. Getty Thomas R. P una Jack L. Roehr
Robert R. 41.lh—m
Absent: 1'on
f*.
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,. r 6 moved and Perlalt'WIN
.a.oplion of the following rccolution:
Resolution No. 2 6 3 4 7
RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS WITH
RESPECT TO A PROPOSED FINANCING PLAN FOR THE WATERLOO
HOUSING DEVELOPMENT CORPORATION AND CONSENTING TO THE
DETERMINATION TO BE MADE BY HUD THAT SAID CORPORATION
QUALIFIES AS A "PUBLIC HOUSING AGENCY" UNDER SECTION 3 (6)
OF THE UNITED STATES HOUSING ACT OF 1937 , AS AMENDED.
WHEREAS, the Authority is a duly constituted,
qualified and acting local housing authority under and pursuant
to the laws of the State of Iowa; and
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WHEREAS, a shortage of decent, safe and sanitary
housing for elderly persons of low income exists in the County
of Blackhawk, State of Iowa; and
WHEREAS, the Waterloo Housing Development Corporation
(the "Corporation" ) , has been formed by public-spirited
citizens under the laws of the State of Iowa, to engage in or
assist in the development or operation of low-income housing in
Waterloo, Iowa; and
WHEREAS, under the laws of the State of Iowa and its
Articles of Incorporation, the Corporation is duly authorized
to borrow money through the issuance of notes, bonds , or other
forms of indebtedness of the Corporation and is duly authorized
to loan the proceeds of such borrowing in order to further the
public purposes for which the Corporation was formed; and
WHEREAS, the Corporation proposes to provide the
construction financing and permanent mortgage financing for the
acquisition, construction and equipping of 82 units of housing,
81 of which units are designed for occupancy by elderly,
handicapped or disabled persons of low income located in the
City of Waterloo, Iowa (the "Project") ; and
WHEREAS, the Project will be developed and owned by
Ridgeway Associates, a limited partnership organized and
existing under the Limited Partnership Law of the State of Iowa
(the "Owner") ; and
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WHEREAS, pursuant to the provisions and requirements
of Section 8 of the United States Housing Act of 1937 , as
amended, the United States Department of Housing and Urban
Development ("HUD" ) will enter into an Agreement to Enter into
Housing Assistance Payments Contract (the "HAP Agreement") with
the Owner , providing for the execution of a Housing Assistance
Payments Contract (the "HAP Contract" ) by HUD and the Owner
upon the completion of the Project and its acceptance by HUD;
and
WHEREAS, under the HAP Contract, HUD will be
obligated to make housing assistance payments to the Owner on
behalf of eligible tenants occupying dwelling units in the
Project; and
WHEREAS , in connection with the proposed mortgage
financing of the Project by the Corporation, the Owner will
pledge and assign its right, title and interest in and to the
HAP Agreement and the HAP Contract to the Corporation; and
WHEREAS , in order to finance the cost of construction
and development of the Project , the Corporation intends to
issue its Bond Anticipation Note in the amount of $2 ,026 ,733;
and
WHEREAS, in order to raise funds with which to
provide the permanent mortgage financing for the Project, the
Corporation intends to issue not more than $2,195,000 principal
amount of First Lien Revenue Bonds (the "Bonds" ) , to be secured
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by a Mortgage Agreement and Indenture of Trust from the
Corporation to St. Joseph Bank and Trust Company, South Bend,
Indiana, as Trustee (the "Indenture" ) ; and
WHEREAS, it is now necessary and advisable for the
Authority to adopt this resolution so as to enable the
Corporation to proceed with the financing of the development of
the Project.
NOW, THEREFORE, BE IT RESOLVED by the members of the
City of Waterloo Housing Authority, a lawful quorum of which is
duly assembled, as follows:
Section 1. It is hereby found and determined that
the plan of the Corporation with respect to the Project,
including the Corporation' s projected program and expenditures ,
will tend to provide decent , safe and sanitary housing for
elderly persons of low income at rentals which such persons can
afford and is hereby approved.
Section 2. It is hereby further found and determined
that the Articles of Incorporation and By-Laws of the
Corporation presented to this meeting are consistent with the
plan of the Corporation and are hereby approved.
Section 3 . It is hereby further found and determined
that the form of Indenture presented to this meeting is
consistent with the plan of the Corporation and is hereby
approved.
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Section 4 . It is hereby further found and determined
that the Bond Anticipation Note and the Bonds will be issued in
connection with a low-income housing project to be situated in
Waterloo, Iowa.
Section 5. It is hereby further found and determined
that the issuance of the Bond Anticipation Note and the Bonds
by the Corporation pursuant to the Indenture will serve to
enable the Corporation to carry out its plan and is hereby
approved, provided that each of the Bonds and the Note shall
contain a recitation substantially similar to the following:
"Neither the State of Iowa, the Authority, nor any
other political subdivision, agency or body corporate
and politic of the State of Iowa shall in any event
be liable for the payment of the principal of or
interest on the (obligations) or for the performance
of any pledge, obligation or agreement of any kind
whatsoever of the Corporation, and none of the
(obligations) nor any of the Corporation' s agreements
or obligations shall be construed to constitute an
indebtedness of the State of Iowa, the Authority, or
any other political subdivision, agency or body
corporate and politic of the State of Iowa, within
the meaning of any constitutional or statutory
provision whatsoever . "
Section 6 . This Authority hereby approves and
consents to the determination to be made by HUD that the
Corporation constitutes an "instrumentality" of the Authority
and a "public housing agency" within the meaning, but only for
the purposes , of Section 3 (6) of the United States Housing Act
of 1937 , as amended, and HUD Regulations 24 CFR, Part 811 ,
Subpart A, for the purpose of providing the permanent mortgage
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financing for the Project, provided that nothing contained in
this resolution is intended, nor shall it be construed, to
establish or create, or to authorize the establishment or
creation by HUD or the Corporation or otherwise, of any common
law agency relationship between the Corporation and the
Authority under the laws of the State of Iowa, or to create , or
authorize the creation of, any indebtedness , obligation or
liability of the Authority of any kind whatsoever .
Section 7 . The Authority hereby agrees to review the
annual audit to be made of the Corporation pursuant to
provision therefor contained in the Indenture and to cause such
audit together with the Authority' s review to be forwarded to
HUD and to accept title to or any interest in any real or
personal property owned by the Corporation upon dissolution of
the Corporation.
Section 8 . The Authority hereby agrees that, in the
event of a default by the Owner under the HAP Contract or the
Indenture , to the extent that either HUD or the Trustee shall
require operation of the Project by an entity other than the
Owner , the Authority will either assume management
responsibility for the Project, or will assist the Trustee in
locating a management entity acceptable to HUD, all with a view
to providing assurance to HUD of continued operation of the
Project for the housing of eligible persons of low income as
contemplated by the HAP Contract.
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Section 9 . It is hereby directed that the Bond
Anticipation Note and the Bonds shall be delivered within sixty
(60) days of the adoption of this resolution or this resolution
shall become void.
Section 10 . If any section, paragraph or provision
of this resolution shall be held to be invalid or unenforceable
for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the
remaining provisions of this resolution.
Section 11. All resolutions and orders or parts
thereof in conflict herewith are , to the extent of such
conflict, hereby repealed. This resolution shall take effect
immediately.
The roll being called upon the question of adoption
of the resolution, the vote thereon resulted as follows:
AYES: Bowers, Burton, Davie, Getty, ?eualma, "Roehr nd �?i1haxr .
NAYS:
ABSTENTIONS: c,;-,.
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The Chairman thereupon declared said resolution
adopted and approved the same in open meeting.
Adopted and approved hme L' , 1979.
Attest:
Rete-a/2)
Secretary
A * A A A A A * * * * * A A
p n
Cuituaissioncrs zdjourned.
Chairman (1
Secretary