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HomeMy WebLinkAbout08-27-26-7.12 - Resolution - 08/27/2026RESOLUTION NO. 08-27-26-7.12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, WAIVING INTEREST FOR EARLY REPAYMENT OF OUTSTANDING PRINCIPAL UNDER THE CITY'S HUD -ASSISTED CONTRACT FOR HOME PROGRAM WITH SANTOUR COURT, LTD.; AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTATION OF RELEASE AND SATISFACTION OF THE NOTE AND DEED OF TRUST PURSUANT TO THE CONTRACT. WHEREAS, the City Council of the City of College Station, Texas, executed an agreement with Santour Court, Ltd. ("Santour") effective September 21, 2007 ("Agreement") under which the City provided a loan of HOME Investment Partnerships Program funds pursuant to the U.S. Department of Housing and Urban Development ("HUD") regulations for construction costs in the amount of $500,000.00 ("HOME Loan") in consideration for thirteen HOME -assisted units restricted for a period of forty years in accordance with 24 CFR 92.252 (the "Project"); WHEREAS, the HOME Loan note under the Agreement was amended by that certain Renewal, Modification and Extension Agreement between the City and Santour dated April 25th, 2008, extending the HOME Loan maturity date to December 31, 2047; WHEREAS, Santour has requested to pay off the full principal of the HOME Loan prior to the maturity date in accordance with Section 4 of the Agreement and Section 10 of the Note; and WHEREAS, the Project remains subject to the affordability period under Section 3.03 of the Agreement, HUD regulations and TDHCA deed restrictions filed against the Project, regardless of early payoff on the HOME Loan; Now, therefore; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: That the City Council hereby waives any interest and fees due to the City on the HOME Loan early repayment, subject to repayment of the HOME Loan outstanding principal amount of $500,000.00 within thirty days of adoption of this Resolution. PART 2: That the City Council hereby authorizes the City Manager, City Attorney and City Secretary, or their respective designees, to prepare and execute all documentation required under Section 10 of the Agreement upon receipt of the HOME Loan payment of $500,000.00 from Santour, thereby evidencing release and satisfaction of: (i) the HOME Loan, including any interest that would otherwise be due, (ii) Note, and (iii) HOME Loan deed of trust. PART 3: That the City Council hereby directs the Community Development Administrator or his designee to document receipt of this early repayment as Program Income as required under 2 CFR 92.503 and to prepare an amendment to the City's HUD 2026-2027 Annual Action Plan to account for and allocate such Program Income in accordance with HUD requirements and the City's HOME programs. PART 4: That this resolution shall take effect immediately from and after its passage. ADOPTED this 27th day of August, A.D. 2026. ATTEST: APPROVED: City Secretary APPROVED: Pia, P City Attorney.