Title
RESOLUTION AUTHORIZING CITY OF DULUTH PARTICIPATE IN THE HUD PUBLIC OFFERING AS PART OF THE SECTION 108 LOAN GUARANTEE ASSISTANCE PROGRAM TO REFINANCE THE EXISTING NOTE OR OTHER OBLIGATION IN THE ORIGINAL PRINCIPAL AMOUNT OF $10,000,000, FOR THE VILLAGE PLACE APARTMENTS
Body
WHEREAS, the City Of Duluth, by Resolution adopted 03-0600R, authorized an application seeking loan guarantee assistance under Section 108 of the Housing and Community Development Act of 1974, as amended, from the United States Department of Housing and Urban Development ("HUD"), and did authorize the proper city officials to execute the documents necessary to accomplish the transaction, and did accept HUD's guarantee of Section 108 note number B-03-MC-27-0002 for the Village Place Apartments under a Section 108 Contract for Loan Guarantee Assistance dated August 15, 2005; and
WHEREAS, the assistance provided by HUD was the guarantee of a note in the original principal amount of $10,000,000, plus interest thereon; and
WHEREAS, HUD has notified the City of Duluth that a public offering will occur in February, 2019, and to participate, the City of Duluth must immediately notify HUD of its intention to refinance all or a portion of its existing Section 108 commitment through the public offering; and
WHEREAS, HUD may require, as a condition of participation in the public offering, that the City of Duluth execute documents related to the transaction, and whereas the City of Duluth has previously agreed to pay the City of Duluth's share, as determined by HUD, of the customary and usual issuance, underwriting, and other costs related to the public offering and future administration of the Note and the trust certificates; and
WHEREAS, it is economically sound and in the best interest of the City of Duluth to accept more favorable fixed rates of interest under the Section 108 Loan Guarantee program offered by HUD under the public offering;
NOW THEREFORE IT IS RESOLVED BY the C...
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