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HomeMy WebLinkAboutORDINANCE - 2150 - 3/26/1991 - SINGLE FAMILY MORTGAGE REV. BONDORDINANCE NO. 2150 AN ORDINANCE authorizing the execution and delivery of an Inter- governmental Cooperation Agreement and reallocation of private activity bond volume cap in connection with the issuance of certain Single Family Mortgage Revenue Bonds and related matters. WHEREAS, Section 10 of Article VII of the Constitution of the State of Illinois authorizes units of local government and school districts to contract or otherwise associate among themselves in any manner not prohibited by law or by ordinances, and to use their credit, revenues and other reserves to pay cash and to service debt related to intergovernmental activities; and WHEREAS, the Intergovernmental Cooperation Act (Illinois Revised Statutes 1989, Chapter 172, Paragraph 741 et seq., as supplemented and amended) authorizes public agencies to exercise jointly with any other public agency in the State of Illinois any power,' privilege or authority which may be exercised by such public agency individually; and WHEREAS, the Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the "'.Municipality") is a home -rule unit of local government and a public agency of the State of Illinois; and WHEREAS, pursuant to the Constitution of the State of Illinois, and particularly Article VII, Section 6(a) of the 1970 Constitution of the State of Illinois, the Municipality has the power to issue its revenue bonds for public purposes including the financing and purchase of mortgage loans or interests therein to finance the cost of residences for low and moderate income persons within its corporate boundaries, and to pledge to the payment of the principal of, premium, if any, and interest on such revenue bonds the payments made with respect to the mortgage loans purchased with and financed by the proceeds of such revenue bonds; and WHEREAS, pursuant to Section 146 of the Internal Revenue Code of 1986 (the "Code") bonds issued for the purpose described in the preceding paragraph may not be issued on a tax-exempt basis unless the aggregate principal amount of such bonds issued by any issuer is within such issuer's "volume cap" for the calendar year; and WHEREAS, pursuant to Section 146 of the Code and the relevant provisions of the Illinois Private Activity Bond Allocation Act (the "Bond Allocation Act") prior to a specified date each year, the "volume cap" of the Municipality is limited to SSO multiplied by such Municipality's population based on the most recent census estimate released prior to January 1 of that calendar year; and WHEREAS, pursuant to the Bond Allocation Act and the current Guidelines and Procedures issued thereunder (the "Guidelines"), the Municipality may reallocate its volume cap to another municipality; and WHEREAS, the Municipality hereby finds and determines that it cannot individually access the capital markets on favorable terms through the issuance of tax- exempt mortgage revenue bonds due to the limitations on the aggregate principal amount of such bonds which may be issued under the Municipality's "volume cap" authority; and WHEREAS, the Municipality hereby finds and determines that the pooling of all of the "volume cap" authority of the Municipality and certain other municipalities for 1991 and the reallocation of all of such authority to a single governmental entity would permit that governmental entity to issue tax-exempt mortgage revenue bonds to finance residences for low and moderate income persons within the corporate boundaries of all of the municipalities in an aggregate principal amount of sufficient size to adequately access the capital markets at a favorable interest rate; and WHEREAS, it is now determined that it is necessary, desirable and in the public interest for the Municipality to enter into an Intergovernmental Cooperation Agreement (the "Cooperation Agreement") dated -as of March 25, 1991, by and among the Municipality and the other municipalities listed therein, to effect the purposes described in the preceding paragraph and a form of such Cooperation Agreement is currently before this President and Board of Trustees; and -2- WHEREAS, the Municipality proposes to reallocate its 1991 "volume cap" to a governmental entity to be specified in the Cooperation Agreement (as executed), which governmental entity shall either be a home -rule unit of local government which is a party to the Cooperation Agreement or an Illinois state agency empowered to issue single family mortgage revenue bonds (such governmental entity being herein referred to as the "Issuer") so that the Issuer may use its best efforts to issue, sell and deliver its Single Family Mortgage Revenue Bonds, Series 1991 (the "Bonds") in order to obtain funds to finance the cost of one to no more than four family residences for tow and moderate income persons within the corporate boundaries of each of the participating municipalities; NOW, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, as follows: Section L .That the form, terms and provisions of the proposed Coopera- tion Agreement be, and they are hereby, in.all respects approved; that the President of the Municipality be, and is hereby, authorized, empowered and directed to execute, and the Village Clerk of the :Municipality be, and is hereby, authorized, empowered and directed to attest and to affix the official seal of the Municipality to, the Cooperation Agreement in the name and on behalf of the Municipality, and thereupon to cause the Cooperation Agreement to be delivered to the other parties thereto; that the Cooperation Agreement is to be in substantially the form presented to and before this meeting and hereby approved or with such changes therein as shall be approved by the officer of the Municipality executing the Cooperation Agreement, his execution thereof to constitute conclusive evidence of his approval of any and ail changes or revisions therein from the form of Cooperation Agreement before this meeting; that from and after the execution and delivery of the Cooperation Agreement, the officers, officials, agents and employees of the Municipality are hereby authorized, empowered and directed -3- to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Cooperation Agreement as executed; and that the Cooperation Agreement shall constitute and is hereby made a part of this authorizing ordinance and a copy of the Cooperation Agreement shall be placed in the official records of the Municipality and shall be available for public inspection at the principal office of the Municipality. Section 2. That the President, the Village Clerk and the proper officers, officials, agents and employees of the Municipality are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents and certificates as may be necessary to carry out and comply with the provisions of the Cooperation Agreement and the transactions contemplated by this authorizing ordinance including the preambles hereto. Section 3. That all acts of the officers, officials, agents and employees of the Issuer heretofore or hereafter taken, which are in conformity with the purposes and intent of this authorizing ordinance and in furtherance of the issuance and sale of the Bonds, and the same hereby are, in all respects, ratified, confirmed and approved. Section 4. That the Municipality hereby authorizes and directs the President and the Village Clerk of the Municipality (or any other officer or official of the Municipality) to take any and all actions required by the Illinois Private activity Bond Allocation Act and the Guidelines which are necessary to effect a reallocation of the Municipality's 1991 private activity bond allocation to the Issuer in order that the Issuer may use its best efforts to issue the Bonds for the purposes described herein, such reallocation to be effective only upon the effective date of the Cooperation Agreement. Section 5. The President and Board of Trustees of the Municipality hereby approves the issuance of the Bonds for the purpose of financing a single family mortgage program for the purchase of one to not more than four family residences in the Municipality and the other municipalities that are a party to the Cooperation Agreement, -4- in an aggregate principal amount of not to exceed $70,000,000. The President and other officers of the Municipality are hereby authorized and directed to take such further actions, if any, as are necessary to provide the public approval of the Bonds by the Municipality under Section 147(f) of the Code. Section 6. That after the Bonds are issued, this authorizing ordinance shall be and remain irrepealable until the Bonds and the interest thereon shall have been fully paid, cancelled and discharged. Section 7. That the provisions of this authorizing ordinance are hereby declared to be separable, and if any section, phrase or provision of this authorizing ordi- nance shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions of this authorizing ordinance, Section 8. That all ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this authorizing ordinance are, to the extent of such conflict, hereby superseded. _S_ Presented, passed, approved and recorded by the President and Board of Trustees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, this 26th day of March , 1991. Approved: [SEAL] Attest: Ilafern R. Snick Deputy Village Clerk Charles J. Zettek President Ayes: Joseph T. Bosslet, Ronald L. Chernick, Nancy J. Czarnik, Dennis J. Gallitano, James P. Petri, Michael A. Tosto Nays: Absent or Not Voting: None -s- Trustee Gallitano moved, and Trustee Bosslet seconded the motion, that said ordinance as presented and read by the Village Clerk be adopted. After a full discussion thereof, the President directed that the roll be called for a vote upon the motion to adopt said ordinance, as read. Upon the roll being called, the following Trustees voted: AYE: Joseph T. Bosslet, Ronald L. Chernick, Nancy J. Czarnik, Dennis J. Gallitano, James P. Petri, Michael A. Tosto MAY: None ABSENT OR NOT VOTING: None Whereupon the President declared the motion carried and said ordinance adopted, and hereforth did approve and sign the same in open meeting and did direct the Village Clerk to record the same in full in the records of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois. [SEAL] s ■ « (Other Business) Upon motion duly made and seconded, the meeting was adjourned. Ilafern R. Snick Deputy Village Clerk