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R-84-579 - 1/26/1984{ RESOLUTION DECLARING INTENT TO ISSUE BONDS TO PROVIDE FINANCING FOR A RESIDENTIAL DEVELOPMENT FOR PERSONS OF LOW AND MODERATE INCOME (BOWMAN'S WALK APARTMENT DEVELOPMENT); PRESCRIBING CERTAIN TERMS AND CONDITIONS OF SUCH BONDS; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT WHEREAS, Round Rock Housing Finance Corporation (the "Corporation ") has been duly and properly created and organized under the Texas Housing Finance Corporations Act, Article 12691 -7, Vernon's Annotated Texas Civil Statutes, as amended (the "Act "); and WHEREAS, the Act authorizes the Corporation to issue revenue bonds for the purpose of providing financing for residential developments located within the boundaries of the City of Round Rock, Texas (the "Area "), and intended to be occupied substantially (at least 90 percent) by persons of low and moderate income, as determined by the Board of Directors of the Corporation; and WHEREAS, Section 103(b)(4)(A) of the Internal Revenue Code, as amended (the "Code "), provides that the interest on fully registered obligations issued by or on behalf of a state or a political subdivision thereof substantially all of the proceeds of which are to be used to provide projects for residential rental property shall be exempt from federal income taxation if, among other requirements, at least 20 percent of the units in each project are to be occupied by individuals of low or moderate income, within the meaning of Section 103(b) (12)(C) of the Code at all times during the qualified project period set forth in Section 103(b)(12)(B) of the Code; and WHEREAS, it is proposed that the Corporation issue its revenue bonds for the purpose of providing financing for a multi - family rental residential development (the "Development ") consisting of approximately 100 units located within the County on the land described in Exhibit "A" attached hereto, and to be owned by Bowman's Walk Partnership, or assigns (the "Owner "); and WHEREAS, the Owner has indicated his willingness to enter into contractual arrangements with the Corporation providing assurance satisfactory to the Corporation that at least 90 percent of the units in the Development will be occupied at all times by persons of low and moderate income, as determined by the Board of Directors of the Corporation, and that at least 20 percent of the units in the Development will be occupied by individuals of low or moderate income within the meaning of Section 103(b)(12)(C) of the Code at all times during the qualified project period set forth in Section 103(b)(12)(B) of the Code; and 1/P L WHEREAS, the Board of Directors of the Corporation desires to take official action declaring the Corporation's intent to issue revenue bonds to provide financing for the Development upon the terms and conditions set forth hereinafter; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF ROUND ROCK HOUSING FINANCE CORPORATION: Section 1. That the Corporation thereby declares its intent to issue its Multi- Family Housing Revenue Bonds, Series 1984 (the "Bonds "), in the approximately aggregate principal amount of $3,000,000, which amount is estimated to be suffi- cient; (a) to fund a loan to provide financing for the acqui- sition of the Development; (b) to fund certain reserves for the benefit of the holders of the Bonds; and (c) to pay certain costs incurred in connection with the issuance of the Bonds. Section 2. That the Bonds shall be issuable as fully registered bonds in the denomination of $5,000 or any integral multiple thereof; shall bear interest at a rate or rates determined by the Corporation, which interest shall be payable and which shall mature (or become subject to mandatory redemption) as determined by the Corporation; and shall be subject to prior redemption upon such terms and conditions as may be established by the Corporation. Section 3. That the Bonds shall be special, limited obligations of the Corporation payable solely from revenues received by the Corporation from or in connection with its loan to provide financing for the Development and from such other amounts as may be obtained through the exercise of the remedies provided in the financing documents upon the occurrence of an event of default. Section 4. That the Board of Directors hereby finds, determines, recites and declares that the Bonds shall not constitute an indebtedness, liability, general, special or moral obligation or pledge or loan of the faith or credit or taxing power of the State of Texas, the county or any other political subdivision or municipal or political corporation or governmental unit, nor shall the bonds ever be deemed to be an obligation or agreement of any officer, director, agent or employee of the Corporation in his or her individual capacity, and none of such persons shall be subject to any personal liability. Section 5. That the issuance of the Bonds shall be subject to: (a) the execution by the Owners and the Corporation of contractual arrangements providing assurance satisfactory to the Corporation that at least 90 percent of the units in the Development will be occupied at all times by persons of low and moderate income as determined by the Board of Directors of the Corporation, and that at least 20 percent of the units in the Development will be occupied by individuals of low or moderate - 2 - 1/P income within the meaning of Section 103(b)(12)(C) of the Code at all times during the qualified project period set forth in Section 103(b)(12)(B) of the Code; and (b) the receipt of a ruling from the Internal Revenue Service or an opinion from Vinson & Elkins, Austin, Texas, or other nationally recognized bond counsel, substantially to the effect that the interest on the Bonds is exempt from federal income taxation under existing statutes, regulations, published rulings and judicial deci- sions. Section 6. That the Board of Directors of the Corporation hereby finds, determines, recites and declares that the issu- ance of the Bonds to provide financing for the Development will promote the public purposes set forth in Section 3 of the Act, including, without limitation, assisting persons of low and moderate income to obtain decent, safe and sanitary housing at rentals they can afford. Section 7. That the Board of Directors hereby finds, determines, recites and declares the Corporation's intent that this Resolution constitute an official action toward the issuance of the Bonds within the meaning of Section 1.103 -8(a) (5)(iii), Title 26, Code of Federal Regulations, as amended, and applicable rulings of the Internal Revenue Service there- under, to the end that the Bonds may qualify for the exemption provisions of Section 103(b)(4) of the Code and that the interest on the Bonds will therefore be excludible from the gross incomes of the holders thereof under the provisions of Section 103(a)(1) of the Code. - ATTEST: Secretary PASSED AND APPROVED this - 3 - day of . GlA"----" / , 1984. President Jaii&) 579R ,94A/tAL,bel/L6e4 WoJJ 101 6)60~6 raArA4bu4 1-0264