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HomeMy WebLinkAboutResolution of the City of South BendRESOLUTION NO. 697 -79 Passed by the Common Council of the City of South Bend, I May 14 79 19 Attest: �`�` City Clerk Attest: Presented by me to the Mayor of the City of South Bend, Indiana May 15 79 19 Of Common Council City Clerk Approved and signed by me 9'!'l A. 19�� RESOLUTION NO. 697 -79 A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA. WHEREAS, newly enacted legislation permits the issuance of mortgage- backed housing revenue bonds (the "Bonds ") by municipalities in the State of Indiana in order to finance residential dewelling units; and WHEREAS, Kirchner, Moore and Company has presented information and background material relating to the issuance of such bonds demon- strating that such bonds are in the best interest of the City in pro- viding adequate, safe, sanitary housing which persons of low and moderate income can afford; and WHEREAS, the City desires to issue such Bonds for the aforesaid purpose and desires to show intent to do the same. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, that: SECTION I. The City agrees to issue such Bonds and to sell the same to Kirchner, Moore and Company and local underwriting firm or firms equally pursuant to the terms of a Bond Purchase Agreement to be mutually acceptable to the City and Kirchner, Moore and Company and local underwriting firm or firms. SECTION II. The issuance of such Bonds is found to be for a public purpose, and shall benefit the residents of the City. SECTION III. The obligation of the City to issue such Bonds as set forth in Section I above is subject to: (a) final approval of the issuance of such Bonds, (b) receipt of an unqualified approving opinion with respect to such Bonds of nationally recognized bond counsel, which opinion shall also be to the effect that interest on the Bonds shall be exempt from Federal taxation, and (c) execution of a Bond Purchase Agreement between the City and Kirchner, Moore and Company and local underwriting firm or firms. SECTION IV. Kirchner, Moore and Company with the local underwriting firm or firms are to select a recognized leader in the field to lead the underwriting teams. SECTION V. This resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. ofoKt'h& Common Counc Adopted, as amended, May 14, 1979 Peter H. Mullen Director, Administration and Finance CITY of PETER SOUTH J. NEMETH, BEND Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 Members of the Common Council City Council Office Fourth Floor County -City Bldg. South Bend, IN 46601 May 10, 1979 Dear Members of the Common Council: Attached is a resolution beginning the process of issuing a mortgage - backed housing bond. 219/284 -9742 We are starting this process because of a possibility that the Federal government may either stop this bonding method or, at least, restrict its usage. It appears that the uniqueness and popularity of these bonds have caused concern over the loss of Federal tax monies. As you know, Senator Doug Hunt sponsored this bill in the Indiana Senate which was approved by both houses and ultimately signed into law. Indiana's bill basically allows this mortgage bond to be used inside the city limits of South Bend for those families who have a combined family income of approximately $20,000.00 or less. This procedure will be worked in joint cooperation with any institution that presently is in the home mortgage business in South Bend. We feel that this mortgage will be an excellent tool to make South Bend an attractive city to purchase a home. But, because of the possibility of the Federal government restricting this fine urban tool, we would request that the Council pass this resolution. In the event that Congress grandfathers any municipality "in the process" we feel that we will be considered as a city falling in that category. Very truly/yqurs, Meter H! -Mu I I en City ontroller PHM /mer RESOLUTION NO. OF THE CITY OF SOUTH BEND, INDIANA WHEREAS, newly enacted legislation permits the issuance of mortgage - backed housing revenue bonds (the "Bonds ") by municipalities in the State of Indiana in order to finance residential dwelling units; and WHEREAS, Kirchner, Moore and Company has presented information and background material relating to the issuance of such Bonds demon- strating that such bonds are in the best interest of the City in providing adequate, safe, sanitary housing which persons of low and moderate income can afford; and WHEREAS, The City desires to issue such Bonds for the aforesaid purpose and desires to show intent to do the same. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, that: SECTION I. The City agrees to issue such Bonds and to sell the same to Kirchner, Moore and Company pursuant to the terms of a Bond Purchase Agreement to be mutually acceptable to the City and Kirchner, Moore and Company. SECTION II. The issuance of such Bonds is found to be for a public purpose, and shall benefit the residents of the City. SECTION III. The obligation of the City to issue such Bonds as set forth in Section I above is subject to: (a) final approval of the issuance of such Bonds, (b) receipt of an unqualified approving opinion with respect to such Bonds of nationally recognized bond counsel, which opinion shall also be to the effect that interest on the Bonds shall be exempt from federal taxation, and (c) execution of a Bond Purchase Agreement between the City and Kirchner, Moore and Company. SECTION IV. This resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Member of the Commo ncil R1I signed only to provide an oppor cur for Iic d;_scl!ssion and Council action on the issue. FILED IN CLERK'S OFFICE MAY 91979 Irene Gammon CITY CLERK, SOUTH BEND, IND, PMSENTED J -,4V -;I NOT APPROVED ADOPTED