Title
Consideration of and action on approving a Resolution approving assignment of private activity bond authority to Texas Department of Housing and Community Affairs; and containing other provisions relating to the subject.
Body
Summary:
Staff received the following information from SETH along with the attached resolution.
Re: The Southeast Texas Housing Finance Corporation Single Family Mortgage Origination Program
The Southeast Texas Housing Finance Corporation (“SETH”) has applied to the Texas Bond Review Board for an allocation of private activity bond volume cap (the “Volume Cap Allocation”) to facilitate a single-family mortgage origination program. SETH intends to assign a portion of the Volume Cap Allocation to the Texas Department of Housing and Community Affairs (“TDHCA”) in connection with TDHCA’s single family mortgage revenue bond programs. The Volume Cap Allocation, once assigned, will be used to provide a means of financing single family home mortgages for residents in SETH’s jurisdictions.
Pursuant to the provisions of Section 1372.044 of the Texas Government Code (the “Act”), the City, as a sponsoring political subdivision of SETH, must approve of the assignment of the Volume Cap Allocation by the Corporation to TDHCA.
Accordingly, SETH is asking for City Council to pass the attached Resolution prior to September 5, 2025.
It is important to note that any bonds issued by TDHCA will be special limited obligations of TDHCA and neither the sponsoring political subdivisions of SETH, nor SETH, will be liable in any manner for the payment of such bonds.
Fiscal/Budgetary Impact:
N/A.
Recommended action
Approve the attached resolution regarding approving assignment of the Volume Cap Allocation (SETH).