HomeMy WebLinkAboutIR 7164 INFORMAL REPORT TO CITY COUNCIL MEMBERS No.- 7164
January 13, 1987
To the Mayor and Members of the City Council
'
*ww
PROPOSED _g=ING ASSISTANCE
Subject: �B� BETWEEN FORT WORTH
HOUSING FINANCE CORPORATION AND CITY OF FORT WORTH
On August 26, 1986, M&C G-6789, Council was presented with the proposed
advance refunding of Fort Worth Housing Finance Corporation Single Family
Mortgage Revenue Bonds, Series 1980 and advised that the refunding was
expected to generate $3,000,000 of net proceeds for FWHFC.
When approving this M&C the Council included a recommendation that $1.5
million of the estimated $3 million proceeds be budgeted as a General Fund
revenue in the 1986-87 Annual Budget. The Council indicated that the
estimated $1.5 million balance of the proceeds would be retained by FWHFC
and reserved for future direct housing assistance.
Subsequently, the City staff and the City's financial advisor, First
Southwest Corporation worked with Prudential-Bache Securities, Inc. to
maximize proceeds from this program and developed a revised plan involving
the sale of insured Zero Coupon Mortgage Residual Revenue Bonds. The FWHFC
Board of Directors approved the sale of these bonds on January 7, 1987. At
closing and delivery of the bonds the proceeds to FWHFC will be $4.2 - $4.5
Consistent with Council direction, the staff is preparing to transfer $1.5
million of the proceeds to General Fund revenue at the time of closing on
January 21, 1987. To authorize this transfer the Council will be asked to
approve the execution of a Housing Services Agreement with the FWHFC. The
Agreement identifies broad areas of housing-related services to bei provided
FWHFC by the City. No dollar amount is specified in the Agreement allowing
for transfer of additional funds if Council should so direct.
The remaining proceeds of $2.7 - $3 million will be invested immediately
upon receipt to increase the funds available for future housing services
provided to FWHFC by the City and/or direct housing assistance programs-of
Additional information will be provided upon request.
)ouaglas Haman
Cit� �J 1�7
City Manage7r
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS