Item 4JM 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. 10-005, Granting approval to the Tarrant
County Housing Finance Corporation for the use of the
proceeds of Series 2010 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. 10-005
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. 10-005
Staff
Recommendation:
Approval of Resolution No. 10-005
A RESOLUTION GRANTING APPROVAL TO THE TARRANT
COUNTY HOUSING FINANCE CORPORATION FOR THE
USE OF THE PROCEEDS OF ITS SERIES 2010 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 2010 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.
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PASSED AND APPROVED this ________ day of ________________________, 2009.
Mayor, City of Southlake, Texas
ATTEST:
City Secretary, City of Southlake, Texas
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