HomeMy WebLinkAboutRES 950124-P - Dev Affordable HousingFUSOLUTION NO. _Y� �0/,07_ —,Ila
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WHEREAS, the City of Georgetown recognizes a need for the development, rehabilitaticl
*r renovation of affordable housing units; and
WHEREAS, the City of Georgetown recognizes that private ownership of affordable
housing units is a desirable and beneficial phenomenon for a community; and
WHEREAS, North American Capital Resource Services, (NACRS) L.C., is desirous to
renovate, rehabilitate, erect, construct or otherwise develop affordable housing units within the
City of Georgetown which ultimately should pass into the private market; and
WHEREAS, NACRS desires to renovate, rehabilitate or erect and develop affordab
housing units that conform to and meet the City of Georgetown's plans and provide substant*
quality housing; and i
WHEREAS, NACRS has suggested a means and method of financing the developmem
of an affordable housig unit program through a lease -purchase financing mechanism. I
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF GEORGETOWN, TEXAS, THAT:
SECTION 1. The facts and recitations contained in the preamble of this resolution are
hereby found and declared to be true and correct, and are incorporated by reference herein and
expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this
resolution implements Housing Policy 1 of the Century Plan - Policy Plan Element, which states:
"The City will work with builders, developers, and property owners to provide safe and adequate
housing opportunities for all household types"; and further finds that the adoption of this
resolution is not inconsistent or in conflict with any other Century Plan Policies, as required by
Section 2.03 of the Administrative Chapter of the Policy Plan.
SECTION 2. The City's intent is as follows:
A. NACRS will develop a plan to locate one or more proposed sites for the purpose
of renovating, rehabilitating, erecting or developing affordable housing units and
to project the cost of improving the site or sites for the purpose of offering to
qualified members of the City of Georgetown, approved quality, affordable
housing units through a lease purchase program.
Affordable Housing Resolution
Page 1 of 3 Pages
B. NACRS will develop a plan to rehabilitate, renovate or erect and develop the
project so that it meets or exceeds all government codes and specifications or in
the case of single-family units, meets or exceeds FHA standards (except down
payment requirements) and all applicable City ordinance requirements.
C. NACRS will, if the project appears feasible, to present the same to its sources of
financing for preliminary approval of financing.
D. Qualified members of the public shall be those persons consisting of either
individuals or families who earn 100% of the local median income or less, but that
other persons who are able to secure traditional financing shall not be excluded
from acquiring the units as homes,
E The City of Georgetown will - as part of the proposed financing for the project
- investigate the creation of a single -purpose corporation or financing authority
empowered to issue tax exempt certificates of participation adequate to finance the
following:
i. Site acquisition-,
ii. Site improvement necessary to support the housing unit,
iii. The cost of construction;
iv. The cost necessary to capitalize interest on the land acquisition, site
improvement, construction period and an appropriate period of the
marketing phase;
V. A reserve debt service fund; and
vi. The cost of issuing the securities,
F. If the City of Georgetown decides to create a single -purpose corporation or
financing authority, funds may be held by a trustee bank or other suitable financial
institution which would pay out authority in trustee approved expenditures and
administer the mortgage aspects of the program.
I
G. If the City of Georgetown decides to create a single purpose corporation or
financing authority, title to the project and the certificates of participation would
be secured ultimately only by a first mortgage or deed of trust on the project site
and individual housing units. The single -purpose corporation or authority would
then lease on a year-to-year basis the housing units to qualified persons as leasee -
purchasers until the leasee -purchaser has sufficient credited down payment to
secure conventional financing to purchase the unit outright, thereby retiring the
authority's debt.
SECTION 3: This is a preliminary indication of the City's interest to explore the feasibility of
developing an affordable housing program within the City of Georgetown.
Affordable Housing Resolution !?50lo2
Page 2 of 3 Pages
SECTION 4: This resolution shall be void on the 1st day of May, 1995.
SECTION 5: This resolution shall be effective immediately upon adoption.
RESOLVED this ay of 1995.
ATTEST: THE CITY OF GEORGETOWN:
Sandra D. Lee hy:\_ LEO WOOD
City Secretary Mayor
APPROVED AS TO FORM:
4�.
Marianne Landers Banks
City Attorney
Affordable Housing Resolution 9,5-0
Page 3 of 3 Pages