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HomeMy WebLinkAboutApproving Beacon Heights ApartmentsAttest: RESOLUTION N0. 793 -80 Passed by the Common Council of the City of South Bend, Indiana, Attest: July 14, 19 80 . q Clerk President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana July 15, 19 80 Approved and signed by me City Clerk 1 G (/l, (,f /V IV Mayor RESOLUTION NO. 7 9 �-- �U A RESOLUTION APPROVING BEACON HEIGHTS APARTMENTS WHEREAS, a shortage of decent, safe and sanitary housing for persons and families exists in South Bend, ndiana (the "City ") ; WHEREAS, it is proposed that a housing project be fin- anced and constructed in the City to be owned and operated by Beacon Heights, an Indiana limited partnership (the "Owner "), consisting of 174 units of housing for persons and families, including elderly and handicapped persons, eligible for assistance under Section 8 of the United States Housing Act of 1937 (the "Project "), as amended; WHEREAS, the Beacon Heights housing Development Corpor- ation (the "Corporation "), a not - for - profit Indiana corpor- ation, will be created to provide construction and permanent mortgage financing for the Project by issuing its Construction Loan Notes (FHA Insured Advances) (Beacon Heights Apartments) (the "Notes ") and its Mortgage Revenue Bonds (FHA Insured Morgage- Section 8 Assisted Project) (the "Bonds "); WHEREAS, Section 11(b) of the United States HOusing Act of 1937 provides that interest paid on obligations issued by certain entities, such as the Corporation, to assist in finan- cing of housing, such as the Project, are tax - exempt, and the same section authorizes an exemption from taxation for income derived by such entities from such housing; WHEREAS, in order to obtain the tax exemption benefits of Federal law, it is necessary for City of South Bend, Indiana (the findings and enter into certain the Project and the Corporation, are set out in substantially the hereto as Exhibit A; and the Housing Authority of the "Authority ") to make certain agreements with respect to which findings and agreements form of the Resolution attached WHEREAS, in order for the Housing Authority of the City of South Bend, Indiana to make such findings, enter into such agreements and engage in transactions contemplated by Exhibit A attached hereto, it is necessary, pursuant to IND. CODE ANN. Section 18- 7 -11 -8 (Burns), for the Common Council of South Bend, Indiana, the governing body which activated the Authority, to approve the Project; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, that: SECTION I. The Project is hereby approved. SECTION 2. The adoption by the Authority of a Resolution in substantially the same form as Exhibit A attached hereto, is approved. SECTION 3 The Authority's transactions contemplated by the Resolution, attached hereto as Exhibit A, are approved. SECTION 4. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Pt���1•ka+�3 �— � �!—� Membe of the Common Council FILF0 liJ q :�'� or ICE J U ; , _, Irene Gammon CITY CLERK, SDUTH BEND, IND. n'e RESOLUTION NO_ EXHIBIT /4 " RESOLUTION MAKING CERTAIN FINDINGS AND DETER - MINATIONS WITH RESPECT TO A PROPOSED FINANCING PLAN OF THE BEACON HEIGHTS HOUSING DEVELOPMENT CORPORATION, AN INDIANA NOT -FOR- PROFIT CORPORA- TION, AND CONSENTING TO THE DETERMINATION TO BE MADE BY THE UNITED STATES DEPARTMENT OF EOUSING AND URBAN DEVELOPMENT THAT SAID COR- PORATION CONSTITU'T'ES AN INSTRUMENTALITY OF A PUBLIC HOUSING AGENCY SOLELY WITHIN THE MEANING _ Oa SECTION 3 (6) OF THE UNITED STATES H.OUS ING AC:�: OF 1937, AS AMENDED; APPROVING CERTAIN DC`_<U ENTS RELATING THERETO.. ` HE.?.r_AS, a serious shortage of decent, safe and sanitary housing for persons and families exists in the City of South Bend, Indiana (the "City") and The Housing Authority of tie City of South Bend, Indiana (the "Authority') desires to cause to be provided decent, safe and sanitary housing for persons and families in the City; and g+'FsEAS, the Beacon Heights Housing Development Corpora- tion (the "Corporation ") will be formed by public - spirited citizens _under the Indiana Not -for- profit Corporation Act ( the "Act") , to engage in or assist in carrying out (includ- ing assistance by borrowing and lending funds) the acquisi- tion, construction or rehabilitation, and equipping of hous- ing projects for low imome persons pursuant to Section ° of the United States Housing Act of 1937, as amended (the "Hous- ing Act ") which may be insured pursuant to the National Eousinc Act of 1934, as amended; and WH=R 1AS, under the Act of the Corporation, the Cor to borrow money through the other fo=s of indebtedness duly authorized to loan the order to further the public tion will be formed; and and the Articles of Incorporation poration will be duly authorized issuance of notes, bonds, or of the Corporation and will be proceeds of such borrowing in purposes for which the Corpora- WHEREAS, the Corporation will propose to provide for the interim construction loan financing and permanent mortgage financing for the acquisition, construction and equipping of 2 a 174 -unit housing development designed for occupancy by per- sons and families, including elderly and 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 Beacon Heights, an Indiana limited partnership (the "Owner"); and "►T_�EREAS, 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 agencv`= (or instrumentality 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 Housing and Urban Development ( "HUD ") will enter into an Annual Contributions Contract (the "ACC ") with the Authority and the Authority will enter into an Agreement To Enter Into Housing Assistance Payments Contract with the Owner (the "HA13 Agreement ") for the Project, providing for the execution of a Housing Assistance Payments Contract (the "HAP Contract") by the Authority and the Owner upon the completion of the Proj- ect and its acceptance by HUD; and F,HEER.EAS, under the HAP Contract, the Authority 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 Authority under the ACC; and WHEREAS, in order to raise funds with which to provide the construction loan.financing for the Project, the Corpora- tion intends to issue $5,549,900 maximum approximate aggre- gate principal amount of Construction Loan motes (FHA Insured Advances) (Beacon Heights Apartments) (the "Notes "), to be secured by an Indenture of Trust (the "Note Indenture ") from the Corporation to St. Joseph Valley Bank, Elkhart, Indiana, as Trustee (the "Note Trustee "); and WHEREAS, in order to raise funds with which to provide the permanent mortgage financing for the Project, the Corpo- ration intends to issue $5,800,000 maximum approximate aggre- gate principal amount of Mortgage Revenue Bonds (FHA Insured 3 Mortgage- Section 8 Assisted Project) (the "Bonds ") , to be secured by an Indenture of Trust (the "Bond Indenture "), from the Corporation to St. Joseph Valley Bank, Elkhart, Indiana, as Trustee (the "Bond Trustee "); and WHEREAS, the Authority approves the general concept of (1) the Articles of Incorporation and Bylaws of the Corpora- tion, to be f iled with the Secretary of State of Indiana, (2) certain other documents prepared and presented to this meet- ing 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 Proj- ect, (3) documents prepared and presented to this meeting with regard to the proposed issuance of the Corporation's Notes to be issued for 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 (4) resolutions and actions of the Corpora- tion in selecting counsel to the Corporation and bond counsel to assist in issuance, sale and delivery of the Notes and the Bonds, and hereby authorizes its Chairman to review said documents and approve them in final form on behalf of the Authority; and .z_- :W? RP_AS -8 . it is now .necessary and advisable- for_._the- Members of the Authority to adopt this Resolution, as re- quired by FEUD Regulations, 24 CFR, Part 811, Subpart A. to enable the Corporation to proceed with the financing of and the development of the Project: NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COI ✓i�IS -- SIONEPS OF THE HOUSING AUTHORITY OF THE CITY OF SOUTH BEND, INDIANA, THAT SECTION 1. It is hereby found and determined that the plan o the Corporation with respect to the Project, includ- ing 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 familiies, including elderly and handicapped persons, eligible for assistance under Section 8 of the Hous- ing Act, and is hereby approved. SEC'T'ION 2. The Articles of Incorporation and Bylaws of the Corporation, organizational and other activities and 4 records are hereby ratified and approved in general concept, and the Chairman of the Authority is authorized to review and give final approval and ratification of said documents on behalf of the Authority. SECTION 3. The Directors of the Corporation plan to have issued a Certificate of Incorporation by the Secretary of the State of Indiana. The Directors of the Corporation will be authorized and directed to issue, sell and deliver Bonds and Notes of said Corporation pursuant to the appli- cable laws of the State of Indiana, and plan to permit the 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 Notes and the construction of the Project., and, upon payment or defeasance of all bonded in- debtedness of the Corporation, including the bonded indebt- edness a -cproved herein and such additional bonded indebted- ness of the Corporation approved by the Authority, to convey the title to any property or property rights owned by the Corporation to the Authority or to its lawful successor or assign for public purposes. SECTION 4. The Authority has been presented with a Bond Resolution, of the Corporation which will include provisions for the issuance and sale of Bonds, form of the Bond Inden- ture, including the form of Bonds, and the form of the Offi- cial Statement respecting the Bonds, and miscellaneous mate- rials relating to the authorization of the Bonds and, in general principal, hereby approves the same in substantially the sane form here presented and authorizes the Corporation to adopt and execute the same and all other documents neces - sary and proper to carry out the purposes herein; provided, however, that the Bonds approved hereby must be issued within SO days of the effective date of this Resolution or approval, and authorization of such documents by the Chairman of the Authority acting on behalf of the Authority as provided in this Section 4; and provided further that the Chairman of the Authority is authorized to give final approval and authoriza- tion of such documents in their final form on behalf of the Authority. SECTION 5. The Authority has been presented with a Con- struction Loan Note Resolution of the Corporation which will include provision for the issuance and sale of Notes, form of the Vote Indenture, including the form of the Notes and form n 5 of mortgage and mortgage notes, the pledge of which shall secure the Notes, the form of the Official Statement respec- ting the Notes, and miscellaneous materials relating to the authorization of the Notes and, in general principle, hereby approves the same and authorizes the Corporation to adopt and execute the same in substantially the form here presented and all other documents necessary and proper to carry out the purposes herein; provided, however, that the Notes approved hereby must be issued within 60 days of the effective date of this Resolution or approval of authorization of such docu- ments by the Chairman of the Authority acting on behalf of the Authority as provided min this Section 5; and provided furthe_ that the Chairman of the Authority is authorized to give final approval a,_nd authorization of such documents in their =final form on behalf of the Authority. SECTION 6. It is hereby further found and determined that tre issuance of the Notes and the Bonds by the Corpora- tion 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 Indiana, the City of South Bend, The Housing Authority of the City of South Bend, Indiana, the County of St. Joseph nor any other political subdivision or body corporate and pcliti�- _-of-the -State of: Indiana, = -shall . in- .1: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 nor any of the Corporation's agreements or obligations shall be construed to constitute an indebtedness of the State of Indiana, the City of South Bend, The Housing Authority of the City of South Bend, Indiana, the County of St. Joseph or any other political subdivision or body corporate and poli- tic of the State of Indiana, within the meaning oJE any constitutional or statutory provision. SECTION 7. The Board of Commissioners of the Authority hereby approve and consent to the determinaton to be made by HUD that the Corporation constitutes an "agency" or "instru- mentality" and a "public housing agency" solely within, the 6 meaning, and only for the purposes, of Section 3(6) of the Housing 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, nor shall it be construed, to establish or create, or to authorize the establishment or creation by BUD, the Authority, or the Corporation, or other - wise, of (1) any common law or statutory agency relationship between the Corporation and the Authority or between the Corporation and HUD, under the laws of the State of Indiana, or (2) to create, or authorize the creation of, any indebt- edness, obligation.or liability of the Authority or HUD of any k=.nd whatsoever, except for obligations assumed by HUD in accord_­.ce with written contracts executed by HUD and except as provided in Section 10 hereof. SECTION 8. The officers of the Authority 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 9. The Bonds and Motes of the Corporation shall not constitute a debt of the Authority or the State of Indiana car any of its political subdivisions. - SECTION 10. Lipon dissolution of the Corporation, title to or other interest in any re-- or personal property that is owned by the Corporation at the time of dissolution shall be transferred to the Authority, another public housing agency :- (as that term is defined by HUD in its regulations) or to another nonprofit entity as determined by the Authority and approved by HUD, to be used only for purposes approved by IUD, and the Authority agrees to accept title to or other interest in such real or personal property, and if the Author- ity is unable to accept such gift, conveyance or distribu- tion, then the Board of Commissioners of the Authority shall designate another public housing agency or another nonprofit entity subject to approval by HUD, to accept such title or other interest. SECTION 11. 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 Authority desires to cooperate with agencies of the federal government 7 and other public and private bodies to fulfill such public purposes. SECTION 12. The Authority hereby agrees to perform an annual review of the Corporation's performance and to cause a copy of such audit together with any audits performed during the reporting period to be forwarded, to HUD. SECTION 13. The Authority hereby agrees that in the event of a default by the Owner under the Housing Assistance Payments Contract, the Authority will pursue all available remedies to achieve correction of the default, including operation and possession of the Project, if called upon by HUD or tie Note Trustee or (upon final endorsement of the Mortgage Note and assignment thereof to the Bond Trustee) the Bond Trustee. SECTION 14. The Authority hereby agrees to administer the HAD Contract pursuant to the ACC. SECTION 15. The Authority acknowledges the duties, obligations and covenants that it agrees to undertake, as will be set forth in the Note Indenture and the Bond Inden- ture, and officers of the Authority, including its Chairman, are authorized, empowered and directed to execute any docu- ments to- accomplish the purposes of this resolution, upon completion ®f construction of the Project and execution ok the Housing Assistance Payments Contract by and between the Owner and the Authority. SECTION 16. 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 Inden- ture, as well as the projected financing program and pro- jected expenditures of the Corporation, are to be reviewed by the Chairman of the Authority who is authorized to act on behalf of the Authority to approve, ratify and confirm the same. SECTION 17. The Authority shall have a right of access at any time to all books and records of the Corporation. SECTION 18. It is found and determined that all formal actions of the Authority concerning and relating to the adop- tion of this Resolution were adopted in an open meeting of the Authority; and that all deliberations of the Authority M. 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. SECTION 19. 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 20. All prior resolutions and orders or parts thereof in conflict herewith are, to the extent of such con- flict, hereby repealed and this Resolution shall take effect from ar_d after its passage, the public welfare requiring it. THIS RESOLUTION shall be in full force and effect from and of ter its passage in accordance with the laws of the State of Indiana. Adcpfed and approved this day of dune, 1980. Chairman, The Housing Authority of the City of South Bend, Indiana. Attest with the Seal of The Housing Authority -- _ of the City of South Bend, Indiana Secretary