Minutes 12/10/1985 - Laserfiche WebLink

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216 December 10, 1985 NOW, THEREFORE, BE IT RESOLVED that Yhe Council oF City of Portsmouth, Virginia, approves the issuance of Industrial Development Revenue Bonds by IDA for the "Company" in an amount not to exceed Four Hundred Fifty Thousand Dollars [$450,000[ to assist in financing the acquisitio~ and renovating of, and the construction and equipping of the "Facility" BE IT FURTHER RESOLVED that the approval of the issuance of the Bonds as required by the applicable federal and stare'laws does not constitute an endorsement of the Bonds, financial viability of the "Facility" or the credit worthiness of the "Company", but, as required by the applicable provisions of the Code of Virginia the Bonds shall provide that neither the Cdrmmonwealth of Virginia, City of Portsmouth or IDA shall be obligated to pay the Bonds or the interest thereon or other costs incident thereto except from the revenues and monies pledged therefor, and neither the faith or credit of the taxing power of the Commonwealth, the City nor the IDA shall be pledge thereto. This resolution shall take effect immediately upon its adoption.' Ayes: Gray, Lucas, Webb, Whitlow, Holley Nays: Ncne 85-400 Letter from the City Manager recommending PRHA to advertise and hold public hearing and publish a Mortgage Subsidy Bonds. adoption of a resolution authorizing report relative to the issuance of "The Portsmouth Redevelopment ~ Housing Authority is proposing to issue up to $1,519,276 in mortgage subsidy bonds and to use up to $250,000 of Community Development Funds to assist residents mn neighborhoods located in Conservation Project Areas in the City and the rehabili- tation of their homes. The PRHA has conducted a public hearing on this proposed financing and has recommended that City Council approve the issuance of the bonds as required by the applicable provisions of the federal and state law. This program will provide low interest rate loans while at the same time increasing the number of loans that could be made available in order to provide financial assistance to many neighborhoods throughout the City. The Authority is proposing to use the funds to "~rite down" the interest rate ~o the ultimate borrower with the homeowner receiving a 7% fixed rate for a 10~year term. The average loan wilI amount to approximately $15,000 allowing 120 loans throughout the City during the year. ~hree local lending institutions have agreed to participate the bonds, and these banks are Central Fidelity, Bank of Virginia whose participation the program would not be possible. in the program by buying and Commerce Bank without Ratification by the City Council by the adoption of the attached resolution would permit the PRHA to close on the bond ~ssue during the next two to four weeks and to implement the loa~ program in January. I, therefore, recommend adoption of this resolution. ' On motion of Mrs. Webb and seconded by Mrs. Lucas, the following resolution was adopted, and by the following vote: "A RESOLUTION AUTHORIZING THE PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY TO ADVERTISE, HOLD A PUBLIC HEARING AND PUBLISH A REPORT RELATIVE TO THE ISSUANCE OF MORTGAGE SUBSIDY BONDS. WHEREAS, the Portsmouth Redevelopment and Housing Authority [the "A~thority") proposes to issue up to $1,519,276 in mortgage subsidy bonds to assist residents ~n conservatmon projec areas in the City of Portsmouth in the rehabilitation of their homes: and WHEREAS, the Authority and the City Council believe that the rendering of financial assistance to residents inconservation project areas of the aforesaid neighborhoods through the issuance by the Authority of its bonds gill benefit the inhabitants of the City of Ports- mouth and the Commonwealth of Virginia; and WHEREAS, the statutory authority for the issuance of mortgage subsidy bonds requires that there b~ published (after a public hearing following reasonable public notice) a report of the policies to be followed in issuing said bonds; and WHEREAS, the enabling legislation of the Authority authorizes it to issue such bonds withJ the meaning of the applicable Federal and State law; and WHEREAS, the Authority has requested that the City Council ratify the Autho.rity publishin the required report relative to the issuance of such bonds. NOW, THEREFORE, BE IT RESCLVED by the Council of the City of the actions of the Portsmouth Redevelopment and Housing Authority the public hearing and in publishing the required report relative mortgage subsidy bonds it proposes to issue is hereby ratified. Portsmouth, Vir§~nia, that in advertising and holding to the issuance of the said BE IT FURTHER RESOLVED by the Council of the City-.df Portsmouth that the City Clerk be, and she hereby is directed to forward a copy of this resolution to the Chairman of the Ports- mouth Redevelopment and Housing Authority." Ayes: Gray, Lucas, Webb, Whitlow, Holley Nays: None