oRCER rao. ~3PPvi ,~ AP'P'ROVAL OF RESOLUTION RY THE KERR COUNTY COMMISSIONERS' COURT ON THE RLAMO AREA HOUSING FINANCE CORPORATION On this the 10th day of March 1997, upon motion orade 6y Commissioner Paldwin, seconded by Commissioner Letz, the Court unaniAOUSly approved by a vote of 5-0-0, the r^esolution 6y Kerr Ca~_mty Commissioners' Court on the Rlamo Area Housing Finance Corporation relating to the issuance of obligations designated as "Rlamo Rrea Housing finance Corporation Single Family Mar-t gage Reven~_re Roods (GNMR and FNMA Mortgage-Racked Securities Program) Series 1997";authori- SERIES 1997;AUTHORIZING TtiE COUNTY JUDGE TO EXECUTE RNY AND ALL DOCUMENTS IN CONNECTION WITH THE ISSUANCE OF TI-{E^aE SINGLE FAMILY MORTGAGE REVENUE PONDS OR WITH RESF'EC7 TO THE IMPLEMENTATION OF TI•{E SINGLE FRMIL`f h{OU5ING F'ROGRRM;AND OTIIER MATTERS IN CONNEGTION THEREWITH WHEREAS, the Commissioners Court (the Co~_rr•t) of Kerr County, Texas (the County) has previously author^iaed the creation of the Alamo Area Ho~_rsing Finance Corporation (the Corporation) as a .joint housing finance corporation pursuant to the pr•ovisians of Section 39G, as amended, Texas Local Government Code, PAGE 7 WHEREAS, the Cai.~rt previo~_~sly authorized the Co~_~nty J~_idye, to serve as a member of the Poar^d of Directors of the Corpor^at i on; WHEREAS, Article Eight of the Corporation's Ar^ticles of Incorporation permit the Co~_trt to name any resident of the County to serve as a member of the Poard of Director^s of the Corporation; WHEREAS, the next sched~_~le meeting of the Corporation is at noon on March 26, 1997 at the Rlamo Area Council of Governments, 118 Broadway, Suite 4QtiQ~ San Antonio, Texas 782x5; WHEREAS, at this meeting the Corporation intends to a~_ithor•ize the iss~_rance of ~15,085,0¢~0 of its obligations designated as "Rlamo Rrea Housing Cor^poration Single Family Mnr•tgage Reven~_ie Bonds, Series 1997", dated Mar^ch 15, 1997 (the Bonds) in artier to implement a 1997 Single Family Ho~_ising Program (the Program); WHEREAS, proceeds from the sale of the Ponds will allow certain first time homeb~_ryers in the County to sec~_rre low inter^est mortgage loans; WHEREAS, in or•der• for- the interest en the Bonds to be tax-exempt under the Internal Revenue Code of 1986, as amended (the Code> the Corpor^ation, or^ its designee, must cond~_ict a Tax Equity and Responsibility Act of 1982 (TEFRA) hearing in ~ order^ to satisfy the pr^ovisions of Section 147(f) of the Code; a WHEREAS, the form of TEFRA notice is attached hereto as Exhibit A and incur^porated by all reference for• all purposes to this Resolution; WHEREAS, the issuance of the Bonds and the implementation of the Program ar^e hereby found and determined to be in the best interests of the residents of the Co~.inty;now, therefore, PE IT RESOLVED RY THE GOMMISSIONERS COURT OF N.ERR COUNTY, TEXRS THAT: SECTION is The Co~.trt her•etry appoints H. A. Baldwin to ser^ve as a member of the Roar^d of Directors of the Corporation in accordance with 'the pr-avisions of the Corporation's Articles of Incor'pora'tion. The term of this appointment shall be for three year^s from the date hereof i_mless sooner terminated in accordance with the Corporation's Articles of Incur^poration. SECTION 2: The Cot.n•t hereby a~_rthorizes the p~_iblication of the TEFRA Notice which is attached hereto as Exhibit A and incorpor°ated by reference for- all p~.rrposes to this Resolution. SECTION 3: the Court hereby authorizes the County Judge to ~"\ execute any and all doc~_unents relating to the issuance of the Ponds and the implementation of the program. PAGE 73 SECTION 4: The recitals contained in the preamble hereof are hereby found to be tr~_ie, and s~_ich recitals are hereby made a part of this Resol~.~tian far all p~_~rposes and are ~'`, adopted as a part of the j~_idgment and findings of the Court. SECTION ~: All orders and resol~.itions, or parts then^e of, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent o'f s~-ich conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. SECTION F: This Resolution shall be construed and enforced in actor•dance with the laws of the State of Texas and the United States of America. SECTION 7: If any provision of this Resolution or' the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of s~_~ch provision to other persons and circumstances shall nevertheless be valid, and the Co~_~r•t hereby declares that this Resal~_ition would have been enacted with such invalid provision. SECTION a: It is officially fa~.ind, determined, and declared that the meeting at which this Reso1~_~tion is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resol~_ition, was given, as as req~_~ired by Chapter JJ1, as amended, texas Government Code. SECTION 9: This Resolution shall be in for-ce and effect from and after the date of its adoption, and it is so resolved. PASSED, RDOPTED AND RE'P'ROVED, this 'the 10th day of March, 1997. I:ERR COUNTY, TEXRS /s/Robert A. Denson Co~_mty Judge ATTEST: /sl Patricia Dye Co~_mty Clerk and Ex-Officio Clerk ~\ of the Commissioners Court of Y.err Co~.inty, Texas E'AGE 74 EXH:[PIT A ALAMO AREA HOUSING FINANCE CORPORATION '~`, SINGLE FAMILY MDRTGAGE REVENUE PONDS (GNMA AND FNMA MORTGAGE-RACKED SECURITIES PROGRAM), SERIES 1997 NOTICE OF F'URLIC HERRING Pursuant to section 147('f) of the Internal Revenue Code o~F 1981,, as amended (the "Code"), NOTICE I5 HEREBY GIVEN that the Alamo Rrea Housing Finance Corporation {the "Issuer") will hold ~a F'u61ic Hearing on Rpr-il 7, 1997, at 1:00 o'clock, p. m. San Rntonio time, in the official meeting place of the Poar-d of Directors of the Issuer, located at 118 Broadway, Suite 400, San Antonio, Texas 78205, with respect- to the contemplated sale and iss+_iance of not to exceed 515,090,000 in principal amount of its Alamo Rrea Housing Finance Cor^puration Single Family Mortgage Revenue Ponds (GNMR and FNMA Mortgage-Packed Sec+_~rities Program), Series 1997 (the 'Bonds"). The Rands will be issr_red for the p+_rblic purpose of assisting persons of low and moderate income in acquiring decent, safe, and sanitary housing within the .j+.rrisdiction of the Iss'_rer (the "Program") which include~~ the counties of Rtascosa, Pandera, Comal, Fr^i o, Gillespie, Guadalupe, Karnes, Kerr, Medina, and Wilson and the cites of PJew Pra'_mfels and Seg~_+in, ~.1 Texas ('the "Sponsoring Units"). The Bonds will be iss~_red to ' obtain the f~_rnds necessary +.o finance the acquisition of mortgage-backed securities (the "GNMA Certificates"> of the Government National Ihor^t gage Rssociation ("GNMA") or the Federal National Mortgage Association ("FNMA"> evidencing a g'_rarantee 6y GNMA or^ FNMA of the timely payment of the monthly principal of and interest on the GNMR or FNMR Certificates which are secured 6y an undivided interest in certain qualified home mortgage loans (the "Mortgage Loans") originated by vario~_rs qualified lending instigations located, or having oFfices, within the .jurisdiction of the sponsoring Units. These Mor^t gage Loans will enable y+_~alified persons and families, to aeq~_rire y~_{alified sinyle family reci.der~ccs. To accomplish this public purpose, the Issuer has determined to implement the Program as a pi an of financing to ins~.rr•e the orderly administration and processing of all Mortgage Loans, the purchase of the GNMA Certificates or FNMA Cer^tificates and to account for all funds received or disbursed purs+.iant to the req+_rir-ement of the Program. The Ponds will be issued pur-s~_rant to the provisions of the Texas Ho+asing Finance Corporations Act, as amended, Chapter 394, Local Government Code and do not constitute, within the meaning of any statutory or constitutional provision, an indebtedness, an o6ligatian or a loan of credit of the State Texas, the Sponsoring Units, or any other coi_rntry, municipality, or other- political subdivision of the State of R-1 F'RGE 75 Texas. The Ronds will 6e limited obligations of the Issuer payable solely from the r-evenues generated and der-ived '~, p~_+rs~_+ant to provisions of the Program. In or^der• for^ the inter-est on the Ronds to be exempt fr-om federal income taxation, the Code requires that the issuance of the Ponds be approved by the applicable elected r^epr•esentatives, after- a public hear^ing following reasonable public notice. Approval of the Ponds for pur^poses of the Code does not create, and shall not be construed as creating, any debt, nbligatian, or liability of the Sponsor-ing Units, nor approval of the provision ~For• the financing of the F'rogr-am p~_rrsuant to any other applicable provisions of law. All interested persons ar-e invited to attend the hearing to express their views with r-espect to the financing of the F'rayr•a+n or the issuance of the Ponds. In lieu of attendance at the meeting, written comments may be submitted to the issuer. F~_n^ther• information with r•especa prior thereto addressed to the Iss~_rer. If requested by a s~_+bstantial n~_imber of members of the public prior to the scheduled date set forth above for the p~_+bli.c hearing, the Issuer will can~sider changing the site and tune of the p~.+blic hearing or- holding a second p~_+b1ic hearing. S~_+ch requests should be directed to: Alamo Area Housing Finance Corporation c/o Rlamo Rrea Co~_+ncil of Governments l1R Broadway, S~_+ite 40a San Antonio, Texas 78 ^c Q+5 Attention:Mr-. Al .I. Notzon, III Exec~_+tive Director The site of the meeting is accessible to handicapped persons. RLRMO RRER I-{OUSING FINRNCE CORGORRTION Ry:/s/James E. Sagebiel F'r^esident, Roar•d of Directors A-- F'AGE 7F