1998 Resolutions - Laserfiche WebLink

Home Browse Search

available for persons who qualify for assistance under Section 8 of the U.S. Housing Act of 1937, as amended. It having been represented to the Authority that it is necessary to proceed with the acquisition and rehabilitation of the Housing Project, the Authority hereby agrees that the Developer may proceed with plans therefor and enter into contracts, advance monies and take such other steps as it may deem necessary and appropriate therefor, provided that nothing herein shall be deemed to authorize the Developer to obligate the Authority, without its prior written consent in each instance, to the payment of any monies or the performance of any acts in connection with the Housing Project. It is further agreed that, should the Portsmouth City Council approve (a) the making of the Loan by the Authority to the Developer, and (b) the issuance by the Authority of the Bonds to provide funds for the Loan, and should the Loan be obtained by the Developer, then any monies advanced by the Developer in accordance with this paragraph may be reimbursed from the proceeds of the Loan, subject to approval by the Authority and its counsel. If for any reason the Loan is not obtained, it is understood that all such advances and any other costs and expenses which may be incurred in connection with the acquisition of the Housing Project shall be paid by the Developer and that the Authority shall have no liability or responsibility therefor. This resolution shall not be construed to impose upon the Authority any obligation to make the Loan unless and until: (a) the Portsmouth City Council has approved the making of the Loan by the Authority, the construction of additional housing not previously authorized or approved, and the issuance by the Authority of the Bonds to provide funds for the Loan; (b) the Authority's Bond Counsel is satisfied that the interest on the Loan will be exempt from taxation by the Commonwealth of Virginia and under the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder; (c) the Authority shall have received an allocation of $6,050,000, with respect to the Bonds, if required, from the Virginia Small Business Financing Authority pursuant to Title 15.1, Chapter 33.2, Code of Virginia of 1950, as amended; and (d) the Developer. the Authority and the financial institution or other person or entity which agrees to fund the Loan have all agreed upon the terms and conditions of the Loan and the documents to be executed in connection with the Loan. The Council of the City of Portsmouth, Virginia is hereby requested to (a) approve the issuance by the Authority of the Bonds in an aggregate principal amount not to exceed $6.050.000 to provide funds for the Loan, to the extent such approval is required by Section 147(f) o f the Internal Revenue Code and Section 15.1- 1378.1, subsection 9 of the Section 36-19 and Section 36-19.2 of the Virginia Code, and (b) make a request, if required, to the Virginia Small Business Financing Authority for an allocation of $6,050,000 with respect to the Bonds pursuant to Title I5.1,Chapter 33.2 of the Code of Virginia of 1950, as amended, and a copy of this resolution shall be submitted to the Council for its consideration. All costs and expenses in connection with the financing and the acquisition and rehabilitation