R2018-166 Resolution Authorizing City of Decatur to 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 $3,000,000

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Resolution No. R 2 018-1 6 6 RESOLUTION AUTHORIZING CITY OF DECATUR TO 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 $3,000,000 FOR THE NEAR NORTH REDEVELOPMENT PROJECT WHEREAS, the City of Decaturl by Resolution adopted June 17, 2002, 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 Mayor to execute the documents necessary to accomplish the transaction, and did accept HUD's guarantee of Section 108 note number B-95- MC-17-0008-A for the Near North Redevelopment Project under a Section 108 Contract for Loan Guarantee Assistance dated August 8, 2002; and WHEREAS, the assistance provided by HUD was the guarantee of a note in the original principal amount of$3,000,000 plus interest thereon; and WHEREAS, HUD has notified the City of Decatur that a public offering will occur in February 2019, and to participate, the City of Decatur 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 Decatur execute documents related to the transaction, and whereas the City of Decatur has previously agreed to pay the City of Decatur'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 Decatur to accept more favorable fixed rates of interest under the Section 108 Loan Guarantee program offered by HUD under the public offering; NOW THEREFORE BE IT RESOLVED BY the Decatur City Council,that Billy Tyus, Interim City Manager, or his duly authorized agent, shall notify HUD of the City of Decatur's desires to participate in the February 2019 public offering by HUD through the loan guarantee assistance program under Section 108 of the Housing and Community Development Act of 1974, as amended, for the existing obligation B-95-MC-17-0008-A in the original principal amount of $3,000,000, and to refinance the remaining principal amount of$810,000 at such rates of interest that will be determined by HUD at the time of the public offering. 1