HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2011-18RESOLUTION NO. FWHFC-2011-18
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
RATIFYING ACTIONS OF THE CORPORATION A5 SOLE MEMBER
OF RACE STREET LOFTS GP, LLC, THE GENERAL PARTNER OF
RACE STREET LOFTS, LTD., AND RATIFYING ALL ACTIONS
PREVIOUSLY TAKEN BY THE CORPORATION, THE GENERAL
PARTNER OR THE PARTNERSHIP IN CONNECTION WITH THE
LOANS TO THE PARTERSffiP FROM BANK OF AMERICA, 1�.A. FOR
THE RACE STREET LOFTS PROJECT
WHEREAS, the City Council of the City of Fort Worth ("City") has adopted the
development and revitalization of the City's affordable housing stock as a strategic goal, and the
City Council has determined that quality, accessible, affordable housing is needed for moderate,
low, and very low income City citizens;
WHEREAS, the City Council created the Fort Worth Housing Finance Corporation (the
"Corporation") in 1979 pursuant to the Texas Housing Finance Corporation Act, to facilitate
housing initiatives in the City, including but not limited to issuing tax exempt bonds, developing,
rehabilitating, and promoting housing, and assisting low to moderate income City citizens in
acquiring quality, accessible, affordable housing through lending and construction activities;
WHEREAS, on March 2, 2010, the �oard approved and accepted a letter agreement and
a contract with NRP Holdings LLC ("NRP") for the development of the Race Street Lofts, a
thirty-six (36) unit multifamily affordable housing development which has been awarded tax
credits by the Texas Department of Housing and Community Affairs ("TDHCA"), approved the
creation of a single purpose entity to serve as general partner of the partnership that will own the
development, and approved other actions necessary for the development of the project;
WHEREAS, on August 12, 2010 the Corporation created the Race Street Lofts GP,
LLC, a Texas limited liability company (the "GP"), which is the general partner of Race Street
Lofts, Ltd., a Texas limited partnership (the "Partnership"), which was organized to acquire,
construct, control and maintain the project;
WHEREAS, on September 14, 2010, the Board approved various actions relating to the
creation and operation of the GP;
WHEREAS, on March 31, 2011, the Corporation entered into a Memorandum of
Understanding with NRP setting forth in more detail the agreement between the Corporation and
NRP for the development of the project (the "MOU") which among other things, provided for a
loan of HOME funds fi•oin the City to the Partnership approved by the City Council on June 22,
2010 in M&C G24290;
WHEREAS, the Corporation is the sole member of the GP;
RESOLUTION NO. FWHFG2011-18
PAGE 2
WHEREAS, on May 3, 2011, the Board approved the Partnership, in order to provide
debt financing for the development, construction, and operation of the Project, negotiating the
terms of, and entering into, construction and permanent loans from Bank of America, N.A.
("BoA") in the amount up to $4,041,406.00 in construction financing and up to $1,235,000.00 in
permanent financing (collectively, the `BoA Loans");
WHEREAS, the on June 28, 201 l, the Partnership closed on the BoA Loans in the in the
amount of $4,200,000.00 in construction financing and $1,365,000.00 in permanent financing for
the development, construction, and operation of the Project; and,
WHEREAS, the Board of the Corporation desires to ratify the final amounts of the BoA
Loans and adopts the following Resolutions, as the Resolutions of the Corporation acting on
behalf of the GP in its own capacity, and in its capacity as the general partner of the Partnership:
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
l. THAT the actions of the Partnership entering into a construction loan in the amount of
$4,200,000.00 and a permanent loan in the amount of $1,365,000.00 for the Project with
Bank of America, N.A. ("BoA Loans") are hereby ratified and confirmed as the valid
actions of the Partnership, effective as of the date such actions were taken.
2. That any actions taken by the Partnership and the GP, and any actions taken by the
Corporation, acting on behalf of the Partnership and GP, in connection with the BoA
Loans and related transactions contemplated thereby, are hereby ratified and confirmed as
valid actions of the Partnership, the GP and the Corporation, as applicable, effective as of
the date such actions were taken.
AND IT IS SO RESOLVED.
Adopted August 2, 2011.
FORT WORTH HOUSING FINANCE CORPORATION
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By: �°`�(,hrl�� G'� � i � �' �.
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Kathleen Hicks, President