HomeMy WebLinkAbout5836RESOLUTION NO.5836
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE
AUTHORIZED OFFICER TO FILE A SECTION 108 LOAN
GUARANTEE APPLICATION TO THE US DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT TO FINANCE
THE AUBURN RESOURCE CENTER PROJECT
WHEREAS, the Congress of the United States has enacted, and the President of
the United States has signed into law on August 22, 1974, Public Law 93-383, the
"Housing and Community Development Act of 1974"; and
WHEREAS Section 108 is the loan guarantee component of the Community
Development Block Grant (CDBG) Program. Section 108 provides communities with a
source of financing for economic development, housing rehabilitation, public facilities,
and large-scale physical development projects.
WHEREAS the primary objective of this program is the development of viable
urban communities by providing decent housing and a suitable living environment and
expanding economic opportunities principally for persons of low and moderate income;
and
WHEREAS it is the intention of Congress that the federal assistance made
available under this program not be utilized to reduce substantially the amount of local
financial support for community development activities below the level of such support
prior to availability of assistance hereunder; and
WHEREAS it is necessary and in the public interest that the City of Auburn,
Washington avail itself of the financial assistance provided by Title I of the Housing and
Resolution No. 5836
June 16, 2025
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Community Development Act of 1974, as amended, to commence a Community
Development Program within the City of Auburn; and
WHEREAS, documentation of public benefit shall be maintained by the City of
Auburn, Washington in accordance with 24 CFR 570.209(d) and the City with all
information necessary to document the public benefit; and
WHEREAS, the City will be required under the loan contract to fully repay, with
interest, the Section 108 loan by pledging its future allocations of Community
Development Block Grant (CDBG) funds pursuant to 24 CFR 570.705(b)(2), as security
for HUD's guarantee of the loan funds as well as an established debt reserve account;
and
NOW, THEREFORE, BE IT RESOLVED, the Mayor and City Council of the City
of Auburn, Washington that;
Section 1. The City Council authorizes and approves the negotiation and
execution of the HUD Section 108 Loan. The Mayor is designated as the "Authorized
Officer." The Mayor is directed to take all actions necessary or desirable to complete the
HUD Section 108 Loan financing in accordance with provisions of this resolution.
Section 2. The Council authorizes and approves the issuance by the City of up
to a $3,000,000 Variable/Fixed Rate Note ("Note") to the registered holder of the Note.
The Authorized Officer is authorized to execute and deliver the Note, and other
necessary documents as defined by HUD, with such changes, insertions, deletions, or
modifications as may be necessary to obtain the guarantee financing under the HUD
Section 108 Loan. The actual principal amount of the Note and the interest on the Note
Resolution No. 5836
June 16, 2025
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shall be: (i) secured solely by, and payable solely from, the security described in the
Note, and the contract relating to the Note; and (ii) payable in the manner provided in
the Note. The Authorized Officer is authorized to execute and deliver the Note, with
such changes, insertions, deletions, or modification as may be necessary to obtain the
guaranteed financing under the HUD Section 108 Loan. The execution of the Note is
conclusive evidence the City Council approved the Note.
Section 3. The City Council authorizes and approves the Authorized Officer to
execute and deliver documents not mentioned in this Resolution if these documents are
needed to complete the issuance and delivery of the Note, including any document
required to complete the conversion of the Note in accordance with the terms of the
Note and the Contract, its execution and delivery.
Section 4. This Resolution will take effect and be in full force on passage and
signatures.
Dated and Signed: June 16, 2025
ATTEST:
Shawn Campbell, MMC, City Clerk
Resolution No. 5836
June 16, 2025
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CITY OF AUBURN
NANCY BACK", AYOR
Whalen, City Attorney