HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2012-06RESOLUTION NO. FWHFC-2012-06
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION
TO REDEEM FORT WORTH HOUSING FINANCE CORPORATION
SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES 2002
WHEREAS, the City Council of the City of Fort Worth (the "City") created the
Fort Worth Housing Finance Corporation (the "Corporation") in 1979 pursuant to the
Texas Housing Finance Corporation Act to increase home owneiship and to facilitate the
development of quality, accessible, affordable housing for low and moderate income City
residents through lending and construction activities;
WHEREAS, in 2002, the Corporation was able to secure $11,000,000.00 in state-
authorized, sin�le family moi-tgage revenue bonds (the `Bonds") and use the tax-exempt
proceeds fi•om the sale of the Bonds to finance a First Time Homebuyers Program that
assisted approximately 100 homebuyers with Federal Housing Adininistration-insured
loans for their home purchase at below-marlcet interest rates;
WHEREAS, the 2002 Bonds are revenue bonds and not obligations of the City
and are secured by the underlying mortgage loans which were pooled into Government
National Mortgage Association or GNMA securities;
WHEREAS, over 90% of the Bonds have paid down as borrowers have made
principal payments which were used to redeem the Bonds, leaving about $1,000,000.00
of the Bonds outstanding as of May 2012;
WHEREAS, the Bonds are now subject to redemption at the Corporation's
option, and the Corporation may realize approximately $50,000.00 in excess funds if it
does redeem the Bonds at this time;
WHEREAS, the premium is currently very high historically for seasoned GNMA
securities so redeeining the Bonds at this time will provide the greatest cash benefit to the
Corporation;
WHEREAS, the Bonds will otheitivise remain outstanding until 2034 if not
redeeined and any future redemption wi11 be based on a smaller amount since the Bonds
and underlyiilg mortgages continue to pay down every inonths; and
WHEREAS, the Board finds that it is in the Corporation's best interest to redeem
the Bonds and release any surplus funds.
R�SOLUTION NO. I+WHFG2012-06
PAGE 2
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION
(THE `BOARD"):
1. THAT the Board approves the redemption of the Fort Worth Housing Finance
Corporation Single Family Mortgage Revenue Bonds, Series 2002 (the `Bonds")
to the extent that an economic advantage exists to the Corporation after the
payment of reasonable and customary costs.
2. THAT the Board approves the payment of all reasonable and customary fees and
costs as well as all related activities necessary to redeem the Bonds.
3. THAT Torn Higgins, General Manager of the Coi-�oration, or Jesus J. Chapa,
Assistant General Manager of the Corporation, are authorized to execute and
deliver all documents necessary to redeem to the Bonds.
4. THAT this Resolution talces effect on the date of its adoption.
AND IT IS SO RESOLVED.
Adopted June 5, 2012.
FORT WORTH HOUSING FINANCE CORPORATION
By: � 2` �(✓I � �C�� G{ � ��1..��_�
, �
I�athleen Hicks, President