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Home My Public Portal Aboutr 17-221Yve5olution of toe �Oroug4 of Tart exet, N- - No. 17 —)21 Date of Adoptio D'a ht 7 201 RESOLUTION OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY, WITH RESPECT TO THE ISSUANCE AND SALE BY THE BOROUGH OF CARTERET HOUSING AUTHORITY OF ONE SERIES OF HOUSING REVENUE BOND (RENTAL ASSISTANCE DEMONSTRATION PROJECT), SERIES 2017 WHEREAS, the Borough of Carteret Housing Authority (the "Authority" or the "Housing Authority") is a public body corporate and politic, constituting an instrumentality of the State of New Jersey (the "State "). created by the Borough of Carteret (the "Borough ") pursuant to the provisions of the Housing Authorities Law, Chapter 67 of the Pamphlet Laws of 1950, codified at N.J.S.A. 55:14A -I et sue., repealed and replaced by the Local Redevelopment and Housing Law, under Chapter 79 of the Pamphlet Laws of 1992, as amended and supplemented, and codified at N.J.S.A 40A:12A - et s (the "Act "); and WHEREAS, the Authority owns and operates residential affordable housing rental public housing units for which it has received approval from the United States Department of Housing and Urban Development ("HUD ") to convert such housing units (the "Housing Units ") to the Rental Assistance Demonstration Program, P.L. 112 -55 (2012) ( "RAD ") administered by HUD. and WHEREAS, the Act authorizes the Authority to issue bond, notes or other obligations to fulfill its purposes ( N.J.S.A . 40A:12A -16(5) and -29); and WHEREAS, in furtherance of the purposes of the Act, the Authority proposes to issue a bond in an aggregate principal amount not to exceed $2,300,000 (the 'Bond"), and to apply the proceeds of the Bond to, inter alia. finance capital improvements, to fund rehabilitation reserves for the Housing Units that will be subject to the RAD program, to defease existing debt of the Authority and to pay costs in connection therewith; and WHEREAS, the Bond, when issued, will be special and limited obligations of the Authority, and neither the Borough nor the County of Middlesex (the "County"). nor any political subdivision thereof (other than the Authority, but solely to the extent of the trust estate as defined in the Bond Resolution (as defined below). will be obligated to pay the principal or redemption price of or interest on, the Bond, and neither the faith and credit nor the taxing power of the Borough, the County or any political subdivision thereof will be pledged to the payment of the principal or redemption price of or interest on, the Bond; and WHEREAS, the Bond will be issued pursuant to the terms of the Act, other applicable law and agreements and a resolution to be adopted by the Authority prior to the issuance of the Bond authorizing the issuance of the Bond (collectively, together with any amendments or supplements, the "Bond Resolution "): and WHEREAS. N.J.S.A 40A:12A -29(d) requires that the governing body which created a housing authority and which housing authority is financing a housing project determine that the rate of interest on any such financing undertaken by a housing authority be in the best interest of the municipality; and WHEREAS, on October 5, 2017 the Borough previously adopted a resolution entitled. "RESOLUTION OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY, WITH RESPECT TO THE ISSUANCE AND SALE BY THE BOROUGH OF CARTERET HOUSING AUTHORITY OF ONE SERIES OF HOUSING REVENUE BONDS (RENTAL ASSISTANCE DEMONSTRATION PROJECT), SERIES 2017" (the "Interest Rate Resolution'), which Interest Rate Resolution determined that the interest rate on the Bond to be purchased by Lakeland Bank (the 'Bank') as provided in the Bank Loan Commitment dated September 11, 2017 NO. 17 —M PAGE-- (the "Original Commitment ") was in the best interests of the Borough; and WHEREAS, as a result of the expiration of the Original Commitment. the Bank and the Authority have entered into an amended Commitment dated November 21. 2017 (the "Revised Cotrmiitment ") reflecting an increase in the interest rate (the "Revised Interest Rate ") previously approved by the Borough: and WHEREAS, it therefore becomes necessary for the governing body of the Borough to determine that the Revised Interest Rate, as described herein, is in the best interest of the residents of the Borough. NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE BOROUGH OF CARTERET, a majority of the membership thereof affirmatively concurring, as follows: Section I. The Borough acknowledges that the Housing Authority proposes to issue a Bond in an aggregate principal amount not to exceed $2,300,000 to (i) finance capital improvements to and find rehabilitation reserves for the Housing Units that are subject to the RAD program, (ii) defease outstanding indebtedness of the Authority with respect to the Housing Units and (iii) pay costs in connection therewith. The terms and conditions for the issuance of the Bond shall be as provided in the Revised Commitment. The Bond shall be dated, shall bear interest at such rate of interest, and shall be payable as to principal, interest and premium, if any. all as specified in the Revised Commitment. The Revised Interest Rate shall be fixed for the first ten (10) years of the Bond terns at the initial rate of 3.625% (the "Revised Initial Interest Rate "). The Revised Initial Interest Rate of 3.625% will expire December 31, 2017 if the Loan to the Authority is not closed with the Bank. On the tenth aimiversary of the closing of the Bond (the "Change Date "). the Revised Initial Interest Rate will reset to the Bank's tax exempt equivalent of 2.50% in excess of the then prevailing Federal Home Loan Bank of New York 10/20 Year Amortizing Advance Rate (the "Change Date Index "). rounded up to the next highest one - eighth of one percent (0.125 %). At no time during the term of the Bond. shall the interest rate be less than the Revised Initial hiterest Rate. The interest rate adjustment shall be limited to an increase of up to 3.625% over the Revised Initial Interest Rate. If the Index is no longer available, the Bank will substitute the comparable Federal Reserve Bank interest rate as the Index. The term of the Bond shall be 20 years based upon a 30 year amortization schedule. Payments will be made in 240 equal monthly installments of principal and interest with a balloon payment at maturity. The Authority may, from time to time, prepay, in whole or in part, the outstanding principal amount due on the Bond, upon thirty (30) days prior written notice to the Bank. with and without redemption premium, plus accrued interest thereon. as provided in the Commitment. Neither the faith and credit nor the taxing power of the Borough nor any political subdivision thereof will be pledged to the payment of the principal or redemption price of, or interest on, the Bond. Nothing in the Bond or the Bond Resolution will assign or pledge therefor any other finds or assets of the Authority, the County or the Borough. Section 2. Subject to satisfaction of the conditions set forth below, the Borough hereby finds and detem ines, in accordance with the provisions of N.J.S.A. 40A: 12A-29(d), that the Revised Interest Rate, is in the best interest of the Borough. The Authority shall establish either at or before the issuance of the Bond, that the Authority has either performed, or covenanted to perform. each of the following conditions: A. The proceeds of the Bond shall be applied to: (i) finance capital NO. 17 -221 PAGE 3 improvements to and fund replacement reserves for the Authority's Project that is subject to the RAD program: (ii) to defease outstanding indebtedness of the Authority issued by the New Jersey Housing and Mortgage Finance Agency: and (iii) pay costs in connection therewith. The proceeds of the Bond shall not he used for any other purpose other than as described above. B. The Authority shall provide a copy of the closing transcript with respect to the Bond to the Borough. C. The Mayor. Clerk and Chief Financial Officer of the Borough of Carteret are each hereby authorized and directed to execute and deliver such certificates, agreements and documents, and to take such other actions as may be necessary or appropriate in order to consummate the transactions contemplated hereby. D. Certified copies of this Resolution shall be filed with the Clerk of the Borough of Carteret and the Housing Authority. This Resolution shall take effect immediately upon the adoption hereof. RECORD OF COUNCIL VOTE COUNCILMAN YES I NO NV A.B. COUNCILMAN YES I NO NV A.B. Baum X ,]CIm X DIAZ X KKM X D]IAk= X KqLEs X X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto Adopted at a meeting of the Municipal Council Dma tbEr 7, 2D17 3 �K &��4 NO. 17 — M PAGE 4 CERTIFICATE OF CLERK I, Kathleen M. Barney, the duly appointed Clerk of the Borough of Carteret. in the County of Middlesex. New Jersey (the "Borough "), DO HEREBY CERTIFY as follows: 1. A true and complete copy of Resolution Number of the Borough duly adopted by the governing body of the Borough on December 7 , 2017. and entitled "RESOLUTION OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY, WITH RESPECT TO THE ISSUANCE AND SALE BY THE BOROUGH OF CARTERET HOUSING AUTHORITY OF ONE SERIES OF HOUSING REVENUE BOND (RENTAL ASSISTANCE DEMONSTRATION PROJECT), SERIES 2017" (hereinafter. "Resolution No. ") has been filed and available for review in the Borough Clerk's Office. Resolution No. has not been amended, modified or repealed, and remains in full force and effect on and as of the date hereof. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Borough as of the day of December, 2017. Kathleen M. Barney, Borough Clerk (SEAL)