HomeMy WebLinkAboutResolution 2292 Findings for proposed financing plan for Greenwood Plaza Housing, Inc: 1-14-81
-.--.--.---.--..- -.
_.~ -~......
..__._._._----~--.............--.-
-322
COMMISSION RESOLUTION
NO. 2292
RESOLUTION MAKING
CERTAIN FINDINGS AND DETERMINATIONS WITH i~ESPECT TO A
PROPOSED FINANCING
PLAN OF GREENWOOD PLAZA HOUSING. INC.. A MONTANA NON-
PROFIT CORPORATION.
AND CONSENTING TO THE DETERMINATION TO BE MADE BY THE
UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THAT SAID COR-
PORATION CONSTITUTES
AN INSTRUMENTALITY OF A PARENT ENTITY PHA SOLELY I
WITHIN THE MEANING
OF SECTION 3(6) OF THE UNITED STATES HOUSING ACT OF
1937. AS AMENDED;
APPROVING CERTAIN DOCUMENTS RELATING THERETO.
WHEREAS. a serious
shortage of decent. safe and sanitary housing for persons and families
exists in the City of Bozeman. Montana (the "City") and the City desires to cause to be provided
decent. safe and sanitary housing for persons and families in the City; and
WHEREAS. Greenwood
Plaza Housing. Inc. (the "Corporation") has been formed by public-spirited
citizens under the Montana Nonprofit Corporation Act (the "Act"). to engage in or assist in carry-
ing out (including assistance by borrowing and lending funds) the acquisition. construction or
re-
habilitation. and equipping of housing projects for low-income persons pursuant to Section 8 of
the
United States Housing Act of 1937. as amended (the "Housing Act") which may be insured pursuant
to
the National Housing Act of 1934. as amended; and
WHEREAS. under
the Act and the Articles of Incorporation of the Corporation. the Corporation will
be duly authorized to borrow money through the issuance of notes. bonds. or other forms of indebted-
ness of the Corporation and will be duly authorized to loan the proceeds of such borrowing in
order
to further the public purposes for which the Corporation will be formed; and
WHEREAS. the Corporation
will propose to provide for the interim construction loan financing
and permanent mortgage financing for the acquisition. construction and equipping of a 50-unit
housing
development designed for occupancy by persons and families. including handicapped persons. eligible
for assistance under Section 8 of the Housing Act. to be located in the City (the "Project").
to be
owned and operated by Greenwood Plaza Associates. a ~1ontana limited partnership (the IOWner").
and
WHEREAS. the Owner
had indicated that the financing of the Project would be facilitated by the
issuance of tax-exempt permanent and interim obligations by a "public housing agency" (or instru-
I
mentality thereof) pursuant to Section 11 (b) of the Housing Act and the regulations promulgated
thereunder; and
WHEREAS. pursuant
to the provisions and requirements of Section 8 of the Housing Act. the United
States Department of Hous ing and Urban Development ("HUD") wi 11 enter into an Annual Contri
buti ons
Contract (the "ACC") with the City and the City will enter into an Agreement to Enter Into Housing
Assistance Payments Contract with the Owner (the "AHAP Agreement") for the Project. providing
for
the execution of a Housing Assistance Payments Contract (the "HAP Contract") by the City and the
owner upon the
completion of the Project and its acceptance by HUD; and
WHEREAS. under
the HAP Contract. the City will be obligated to make housing assistance payments
to the OWner on behalf of eligible tenants occupying dwelling units in the Project which housing
assistance payments are payable solely from the annual contributions HUD will be obligated to
make
to the City under the ACC; and
WHEREAS. in order
to raise funds with which to provide the construction loan financing for the
Project. the Corporation intends to issue $1.604.100 approximate aggregate principal amount of
Con-
struction Loan Notes (FHA Insured Advances) (Greenwood Plaza Project) (the "Notes"), to be secured
by an Indenture of Trust (the "Note Indenture") from the Corporation to a trustee to be selected
(the "Note Trustee"); and
WHEREAS. in order
to raise funds with which to provide the permanent mortgage financing for the
Project, the Corporation intends to issue $1.690.000 approximate aggregate principal amount of
Mortgage Revenue Bonds (FHA Insured MortgagenSection 8 Assisted Project) (the "Bonds"), to be
I
secured by an Indenture of Trust (the "Bond Indenture"). from the Corporation to a trustee to
be
selected (the "Bond Trustee"); and
WHEREAS. the City
approves (i) the Articles of Incorporation and Bylaws of the Corporation.
to be filed with the Secretary of State of Montana. (ii) certain other documents prepared and
presented to this meeting with regard to the proposed issuance of the Corporation's Bonds to be
issued for the purpose of paying the principal of and interest on the Notes. funding a debt service
reserve fund and certain costs of
issuance with respect to the Project. (iii) documents prepared and
presented to this meeting with regard to the proposed issuance of the Corporation's Notes to be
issued
COMMISSION RESOLUTION
NO. 2292
.. n._.~__.O~_.~. _. ..._ __.~_.___". _ _'''.~~.~____'''''-'''''_...._~._._.~__a. ~...._ ~~~__~__&_~..
~. ~_~~~....._............._......._. _.0 _.~ _.. _.~ ..~ ....' ~~ ~__.~ ~_---...o."""____.-"_._~."""".->ouI......
..-___ _--------..._~.J...__...__..u._..~ '-"._-'--~""_ '----"" ~"---'--'---'-'"-____________~~__~""'--~_ -
-_._--~~-_. -_...._.....~-_.._--._~~ ---..-..--
, .
...............-_.~". -.,.,. -." '.....-.".- - .__.~_. .-.- - ..-
R23
the purpose of
paying the costs of development and construction of the Project in anticipation of
release of the
proceeds of the Bonds upon completion of the Project and (iv) resolutions and
actions of the
Corporation in selecting bond counsel to assist in issuance, sale and delivery of
the Notes and
the Bonds, and hereby authorizes its City Attorney to review said documents and approve
them in substantially
final form on behalf of the City; and
I WHEREAS, it is
now necessary and advi sabl e for the members of the City'C'O'uncil of the City to
adopt this Resolution, as required by HUD Regulations, 24 CFR, Part 811, Subpart A, to enable
the
Corporation to proceed with the financing of and the development of the Project:
NOW'.JHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOZEMAN, MONTANA, THAT:
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, as submitted to HUD
pursuant to 24
CFR Part 811, Subpart A, will tend to provide decent, safe and sanitary housing for
persons and families,
including handicapped persons, eligible for assistance under Section 8 of the
Housing Act, and
is hereby approved.
SECTION 2.
The Articles of Incorporation and Bylaws of the Corporation, organizational and
other activities
and records are hereby ratified and approved and the City Attorney of the City is
authorized to
review and give final approval and ratification of said documents on behalf of the
City.
SECTION 3.
The Directors of the Corporation plan to have issued a Certificate of Incorporation
by the Secretary
of State of the State of Montana. The Directors of the Corporation will be authorized
and directed to
issue~sell and peliver Bonds and Notes of Said Corporation pursuant t9\permit the
+re opp\\CQ Ie,
\o.I,).)S 0 -\-\\e 'S-\-o-\e of' 1'f'o'f\\oDC\ ,Q\.\\t1- p\o'(\ -TD
assignment and/or
pledge of any security interest in the property so acquired by said Corporation for
the purpose of
constructing the Project and to enter into contracts for the sale of the Bonds and -9 +~~
o .
Notes and the
construction of the Project, and, upon payment or defeasance of all bonded indebtednessI\Cc:>\"poro'hol"
\\'L\:~~d {approved herein and such additional bonded indebtedness of the Corporation approved
by the City, to
-\.W, f\ >
;~de~~Ss convey the title to any property or property rights owned by the Corporation to the City
or to its
I lawful successors
or assigns for public purposes.
SECTION 4.
The City has been presented with a Note and Bond Resolution of the Corporation
which will include provisions for the issuance and sale of Notes and Bonds, forms of the Note
Inden-
tureand Bond Indenture, including the forms of Notes and Bonds, and miscellaneous materials
relating
to the authorization
of the Notes and Bonds, and, hereby approves the same in substatially the same
form here presented
and authorizes the Corporation to adopt and execute the same and all other docu-
ments necessary
and proper to carry out the purposes herein including the preparation of Official
Statements with
respect to the Notes and Bonds; provided, however, that the Notes and Bonds approved
hereby must be
issued within 60 days of the effective date of this Resolution or approval and authori-
zation of such
documents by the City Attorney of the City acting on behalf of the City as provided in
this Section 4;
and provided further that the City Attorney of the City is authorized to give final
approval and authorization
of such documents in their final form on behalf of the City.
SECTION 5.
It is hereby further found and determined that the issuance of the Notes.land the
Bonds by the Corporation
pursuant to the Note Indenture and the Bond Indenture will serve to enable
the Corporation
to carry out its plan and are hereby approved, provided that each of the Notes and
Bonds shall expressly
recite that:
Neither the State
of Montana, the City of Bozeman, the County of Gallatin nor any
other political
subdivision or body corporate and politic of the State of Montana,
shall in any event
be liable for the payment of principal of, premium, if any, or
interest on the
Bonds (or Notes as the case may be) or for the performance of any
pledge, obligation
or agreement of any kind whatsoever of the Corporation, and
none of the Bonds
(or Notes as the case may b~ nor any of the Corporation's agree-
ments or obligations
shall be construed to constitute an indebtedness of the State
I of Montana, the
City of Bozeman, the County of Gallatin or any other political sub-
division or body corporate and politic of the State of Montana, within the meaning
of any constitutional or statutory provision.
SECTION 6.
The City Council of the City hereby approves and consents to the determination to
be made by HUD that the Corporation constitutes an
"agency" or "instrumentality" and a "public
housing agency"
solely within the meaning, and only for the purposes, of Section 3(6) of the Hou~ing
Act, and HUD Regulations,
particularly 24 CFR Part 811, Subpart A, for the purpose of providing the
interim and permanent
financing for the Project. Nothing contained in this Resolution is intended,
COMMISSION RESOLUTION NO.
2292
~~.._. __.~ _.~_ ._._ ~.____L ~ ..- -- _._~
-,~-~ ., .-- .~...- -- ._-~-~. -~ ~~--- -~---~~~_._~-~~-------'--'---'--"-"'----"~.
."- --- .,~..._._---~---,--_.~-,,~.............-._.~~ ' . .~--~ .--- -..-..--.- ..~. .,._..~..~,--~."..
.~ - ., . - ~...
u ~ .. _..._ .._..._.._....._~____~_._
."..__...~~__n. ._,.._ ._.. _~.n......"_~~'_._..~...~__.r - -.. -~_. ...~.~_..-
324
nor shall it be construed, to establish or create, or to authorize the establishment or creation
by HUD, the City, or the Corporation, or otherwise, of (i) any common law or statutory agency
re-
lationship between the Corporation and the City or between the Corporation and HUD, under the
laws
of the State of Montana, or (ii) to create, or authorize the creation of, any indebtedness, obliga-
tion or liability of the City or HUD of any kind whatsoever, except for obligations assumed by
HUD
in accordance with written contracts executed by HUD and except as provided in Sections 13 and
14 I
hereof.
SECTION 7.
The officers of the City are hereby authorized to execute such documents as are
deemed on the advice of counsel necessary and proper to implement the construction, financing
and
leasing of the housing units for persons and families eligible for assistance under Section 8
of
the Housing Act.
SECTION 8.
The Bonds and Notes of the Corporation shall not constitute a debt of the City or
the State of Montana or any of its political subdivisions.
SECTION 9.
Upon dissolution of the Corporation, title to or other interest in any real or
personal property that is owned by the Corporation at the time of dissolution shall be transferred
to the City, another public housing agency (as that term is defined by HUD in its regulations)
or
to another nonprofit entity as determined by the City and approved by HUD, to be used only for
purposes approved by HUD, and the City agrees to accept title to or other interest in such real
or
personal property, and i'f the City is unable to accept such gift, conveyance or distribution,
then
the City Council of the City shall designate another public housing agency or another nonprofit
entity subject to approval by HUD, to accept such title or other interest.
SECTION 10.
The Project and the providing of financing for the Project are in the public
interest of the citizens of the City, and are proper public purposes, and the City desires to
co-
operate with agencies of the federal government and other public and private bodies to fulfill
such
public purposes.
SECTION 11.
The City hereby agrees to perform an annual review of the Corporation's perfor-
mance and to cause a copy of such review together with any audits performed during the reporting
I
period td be forwarded to HUD.
SECTION 12.
The City hereby agrees that in the event of a default by the Owner under the
HAP Contract, the City will pursue all available remedies to achieve correction of the default,
including operation and possession of the Project, if called upon by HUD or the Note Trustee or
the
Bond Trustee, as the case may be.
SECTION 13.
The City hereby agrees to execute and administer the ACC and to enter into and
administer the AHAP Agreement and the HAP Contract pursuant to the ACC with HUD.
SECTI ON 14.
The City acknowledges the duties, obligations and covenants that it agrees to
undertake, including administering the ACC, AHAP Agreement and HAP Contract and officers of the
City,
including its Mayor, are authorized,
empowered and directed to execute any documents to accomplish
the purposes of this Resolution, upon completion of construction of the Project and execution
of
the HAP Contract by and between the Owner and the City.
SECTION 15.
The lawful acts of the Corporation, in authorizing the issuing and selling of the
Bonds secured by the Bond Indenture and the Notes secured by the Note Indenture are hereby approved
and ratified.
SECTION 16.
The City shall have a right of access at any time to all books and records of the
Corporation.
SECTION 17.
It is found and determined that all formal actions of the City concerning and
relating to the adoption of this Resolution were adopted in an open meeting of the City; and that
all deliberations of the City and of any of its committees that resulted in such formal action
were
in meetings open to the public, in compliance with all legal requirements.
I
SECTION 18.
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, para-
graph or provision shall not affect any of the remaining provisions of this Resolution.
SECTION 19.
All prior resolutions and orders or parts thereof in conflict herewith are, to
the extent of such conflict, hereby repealed and this Resolution shall take effect from and after
its passage, the public welfare requiring it.
COMMISSION RESOLUTION NO. 2292
.~~~-,,--~--~.,,~-_._.._~.~......~._......_- -.- ~ ...,~.._.~ . .... .~._,,~.~~.~._~_.~ ._~~.
~.~_._,~ . .._..,~. .... .._~. ~._""""".~_~_~~~__,,___~""..~~__'-"'-""',~"""~..I. ".~..~.__ _.~._.....u.~"_
. ~ .... .
" . ~ - _..........................
......-..__J_ ..
" .- - - ,,- -- ---........ _._'~.. -~--.... --- ------..-,.,..~'-'.-............~, -~ -~ "~ ~ .. ... ..- ,..~,..~... -~ -- .'r__ ...._-_~~'_'....._ .... _., ......._ ". .,~'___....-..........
_" u_... _.,..............-.,.............."T.-.~.... n_ n. .._.__~___', ._._.............. '._._._. ___".
~25'
THIS RESOLUTION shall be in full force and effect from and after its passage in accordance
with the 1 aws of the State of Montana. r....,'
Adopted and approved this 14 day of Januar.y.... .9.81: h.- - : _ ..'
, .(/1 ,_
J( .-c~-'-_/" ']..,"7-"-"'/ ' "",,-
,. - -- .
I MAYOR. City of Bozeman. Montana
ATTEST:
(Pdt: ct tr)J~~
Clerk of the City Commission
State of Montana )
County of Gallatin)
City of Bozeman )
I. Erna V. Harding. Clerk of the Commission of the City of Bozeman do hereby certify that
the foregoing Resolution No. 2292 was published by title and number in the Bozeman Daily
Chronicle. a newspaper of general circulation printed and published in said City. in the issue
dated the day of . 1981. and due proof of such publication is on file in my
office.
IN WITNESS WHEREOF I hereunto set by hand and affix the corporate seal of mY office this
27 day of January. 1981.
C?~ c/ it)~U~
Clerk of the City Commission
I AMENDMENT TO THE GREENWOOD PLAZA MANAGEMENT PLAN
The management plan for the Greenwood Plaza project is amended as follows:
The tenant selection criteria will give preference to those potential tenants who are
displaced by governmental action. such as condemnation. and who otherwise qualify under normal
Section 8 criteria (i.e.. family size. Title 24CFR880.603). In addition. outreach stations
will be set up at Legion Housing and City Hall to contact those residents in condemned low
income units. .r., ' . r. ......... . -'. '
~-----JJ~~--~---
MAYOR. City of Bozeman. Montana
ATTEST:
{fJ dt:v ex! U~~
I Clerk of the City Commission
COMMISSION RESOLUTION NO. 2292
_.,,~~,......,~,...,.....,.,~, --,._-,...~.- _n _ --.....- -~._-, ,.,~~. ._.......................~_~..........,._._~~~.~._....._,"_,_.__ ~,.,....... ........_...............~~..............._~.~,__.
..... _ ._. _~_~._._. ,,~~.._ n... ......_ .__~,_~"....,,~_.,_. ~._._~.._.. ~........._ ~..~.~_.___.._ ......"..__..............._~~_.,~.~.........~.._.~..""._._... .._. ~~._.~_~.____