SUBJECT
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An Ordinance of the City of Laredo, Texas authorizing a promissory note in the aggregate principal amount of $4,115,000.00 together with the contract for loan guarantee assistance under Section 108 of The Housing and Community Development Act of 1974, as amended, 42 U.S.C., Section 5308, in connection therewith; providing for findings.
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PREVIOUS COUNCIL ACTION
On October 28, 2024, City Council introduced a Public Hearing and Introductory Ordinance authorizing a promissory note in the aggregate principal amount of $4,115,000.00 together with the contract for loan guarantee assistance under Section 108 of The Housing and Community Development Act of 1974, as amended, 42 U.S.C., Section 5308, in connection therewith; providing for findings.
On March 20, 2023, the City Council approved Ordinance 23-O-050, authorizing the City Manager to accept and enter into a contract with United States Department of Housing and Urban Development (HUD) for the Section 108 Loan.
BACKGROUND
The City of Laredo, Texas has entered into a community development program in accordance with Chapter 373 of the Local Government Code, and the City is desirous of issuing a promissory note (the "Note") pursuant to Section 373.005 of the Local Government Code, to implement the program for rehabilitation of an existing City owned building located downtown, for low-and moderate-income housing, in an approved community development program that the City has determined to be a public program and is also the recipient of federal funds which may be used for these purposes in accordance with the Housing and Community Development Act of 1974 as managed by the United States Department of Housing and Urban Development.
The City deems it advisable to authorize, issue and sell the Note in an aggregate principal amount of $4,115,000 for those purposes, which Note is payable from the sources identified herein.
Section 1. The Note is hereby authorized to be delivered by the City and e...
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