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Item 4IM E M O R A N D U M January 12, 2010 To: Shana Yelverton, City Manager From: Sharen Jackson, Finance Director Subject: Resolution No. 10-004, Granting approval to the Tarrant County Housing Finance Corporation for the use of the proceeds of Series 2009 Single Family Mortgage Revenue Bonds to finance home mortgages for single family homes located within the City of Southlake Action Requested: Approval of Resolution No. 10-004 Background Information: Council approval of this resolution will authorize the Tarrant County Housing Finance Corporation (the “Corporation”) to provide loans to “first time” homebuyers seeking to buy homes in Southlake. The program offers down payment and closing cost assistance and below market mortgage interest rates to individuals whose incomes do not exceed those established under the federal mortgage revenue bond program guidelines. Borrowers must be “first time” home buyers and must occupy the purchased home as their principal residence. To qualify for a mortgage, mortgager may not have had an ownership interest in a principal residence during the last 3-year period and loans may not be made to refinance pre-existing mortgage loans. Normal mortgage underwriting requirements which demonstrate credit- worthiness must be met. State law and the Attorney General require that cities within Tarrant County with a population greater than 20,000 pass a resolution, as you have done in the past, to allow qualifying residents of the City to participate in the program. Southlake’s approval of this resolution will allow program participants (qualified buyers) to purchase single family houses. Purchase price limitations residences is $225,000. Financial Considerations: The City of Southlake will have no financial obligation related to this program. Honorable Mayor and City Council Page 2 of 2 Strategic Link: L5 Actively promote opportunities for partnerships and volunteer involvement (individual and group); B2 Collaborate with select partners to implement service solutions Citizen Input/ Board Review: N/A Legal Review: The law firm Fulbright and Jaworski prepared the Resolution. Alternatives: Council may decline participation. Supporting Documents: Resolution No. 10-004 Staff Recommendation: Approval of Resolution No. 10-004 A RESOLUTION GRANTING APPROVAL TO THE TARRANT COUNTY HOUSING FINANCE CORPORATION FOR THE USE OF THE PROCEEDS OF ITS SERIES 2009 SINGLE FAMILY MORTGAGE REVENUE BONDS TO FINANCE HOME MORTGAGES FOR SINGLE FAMILY HOMES LOCATED WITHIN THE CITY. WHEREAS, pursuant to the Texas Housing Finance Corporations Act, Chapter 394, Local Government Code, V.T.C.A. (the "Act"), the creation of the Tarrant County Housing Finance Corporation (the "Corporation"), was approved by resolution of the governing body of Tarrant County, Texas (the "County"), adopted on the 14th day of April, 1980, to provide a means of financing the cost of residential ownership and development that will provide decent, safe and sanitary housing for residents of the County at prices they can afford; and WHEREAS, in accordance with the Act the Corporation is not permitted to provide financing of home mortgages for homes which are located within a municipality with more than 20,000 inhabitants as determined by the Corporation's rules, resolutions relating to the issuance of bonds, or financing documents relating to such issuance, unless the governing body of the municipality approves the application of the Act to the property located within the municipality; and WHEREAS, the Board of Directors of the Corporation has requested the approval of the governing body of the City of Southlake, Texas (the "City") to provide financing for home mortgages for homes within the City with the proceeds of the issuance of the Corporation's proposed Series 2009 Single Family Mortgage Revenue Bonds (the "Bonds"); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. That the preambles to this Resolution are hereby adopted in their entirety and incorporated herein as though set forth in full herein. SECTION 2. The governing body of the City hereby approves the application of the Act to the property within the City and grants its approval to the Corporation for the use of proceeds of the Bonds to finance home mortgages for single family homes located within the City. SECTION 3. This Resolution shall be effective from and after its passage. 85355066.1/10911494 [Remainder of page intentionally left blank] 2 85355066.1/10911494 PASSED AND APPROVED this ________ day of ________________________, 2009. Mayor, City of Southlake, Texas ATTEST: City Secretary, City of Southlake, Texas 3 85355066.1/10911494