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9007RESOLUTION NO. 9.0 0 7 459 A RESOLUTION APPROVING THE ISSUANCE BY THE CITY OF LITTLE ROCK, ARKANSAS RESIDENTIAL HOUSING AND PUBLIC FACILITIES BOARD OF $3,850,000 PRINCIPAL AMOUNT OF MULTIFAMILY HOUSING REFUNDING REVENUE BONDS WHEREAS, the City of Little Rock, Arkansas Residential Housing and Public Facilities Board (formerly City of Little Rock, Arkansas Residential Housing Facilities Board) (the "Facilities Board ") has adopted a resolution indicating its intent to issue multifamily housing refunding revenue bonds (the "Refunding Bonds "), for the purpose of refunding its outstanding Multifamily Housing Revenue Bonds, Series 1985 (First National Mortgage Association Program /Village Green Apartments) (the "1985 Bonds "), the unpaid principal balance of which is $3,850,000; and WHEREAS, ALCO Village Green Associates, Ltd., the owner of the project financed by the Bonds (the "Owner "), has requested that the Bonds be refunded on terms acceptable to the Facilities Board, the Owner, and the Federal National Mortgage Association ( "FNMA ") in order to obtain a savings in interest expense; and WHEREAS, pursuant to the request of the Owner, FNMA issued on July 30, 1993, its commitment to purchase a new mortgage loan (the "FNMA Commitment "), which is essential to the refunding process; and WHEREAS, the Owner has requested that T. J. Raney & Sons, Division of Morgan Keegan & Company, Inc., of Little Rock, Arkansas, be employed as the managing underwriter for the refunding, and that the firm of Rose Law Firm, a Professional Association, of Little Rock, Arkansas, be employed a bond counsel for the proposed refunding; and WHEREAS, the Board of Directors of the City of Little Rock is desirous of cooperating with the Facilities Board and the Owner to reduce the expense of the FNMA Program and the Owner's debt service costs, so as to assure the continued availability of the Village Green Apartments Project residential units to persons of low and moderate income; WHEREAS, a public hearing was held before the Board of Directors of the City of Little Rock, Arkansas, on September 21, 1993, regarding the issuance of the Refunding Bonds following publication of notice of the public hearing in the Arkansas Democrat - Gazette on September 4, 1993; and WHEREAS, pursuant to the provisions of the Revenue Bond Act of 1987, Arkansas Code Annotated Sections 19 -9 -601 to 607, inclusive (Supp. 1991) (the "Arkansas Code "), and Section 147(f) of the Internal Revenue code of 1986, as amended (the "1986 Code "), it is necessary that the issuance of the Refunding Bonds be approved by the Board of Directors of the City of Little Rock, Arkansas; and WHEREAS, the Board of Directors of the City of Little Rock, Arkansas, has determined that the Refunding Bonds will be issued to serve a proper public purpose; Now THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS, THAT: e�� Section 1. The issuance by the Facilities Board of not to exceed $3,850,000 principal amount of its Refunding Bonds for the purposes described above, in one or more series, as it shall determine, be and the same is hereby approved within the meaning of Arkansas Code and the 1986 Code. The Facilities Board may proceed in the manner deemed proper by it to accomplish the refinancing of the 1985 Bonds on such terms and conditions as the Facilities Board shall determine consistent with the laws of the State of Arkansas and the ordinances of the City of Little Rock applicable to it. Section 2. That this Resolution is adopted solely for the purpose of complying with the provisions of the Arkansas Code and the 1986 Code, and, by the adoption of this Resolution, the City does not assume any direct or indirect financial responsibility for the payment of the Refunding Bonds. Section 3. It is hereby ascertained and declared that, due to uncertainties of the marketplace and the limited term of the FNMA Commitment, the refinancing of the 1985 Bonds above must be accomplished as soon as possible in order to assure the continued availability of safe and sanitary housing facilities for low and moderate income residents of the City of Little Rock, and to alleviate immediate hazards to the health, safety, and welfare of the City of Little Rock, its inhabitants, and their property, and that this can be accomplished only by the issuance of the Refunding Bonds. It is, therefore, declared that an emergency exists, and this Resolution, being necessary of the immediate preservation of the public peace, health, and safety, shall take effect and be in force from and after its passage. ADOPTED: September 21, 1993. Attest: C J�O,Q D ��°Ar'�C. Robbie Hancock, ity Clerk (SEAL) Approved as to form: 4, C44-L- Thomas M. Carpenter, Ci ttoiney -2- Approved: Mason, Jr. Mayor