Res 2023-144R approving assignment of private activity bond authority to Texas Department of Housing and Community Affairs; and containing other provisions relating to the subject

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ASSIGNMENT AGREEMENT This ASSIGNMENT AGREEMENT (this "Agreement") is made as of the day of , 2023 by and between the CAPITAL AREA HOUSING FINANCE CORPORATION ("CAHFC"), a Texas nonprofit housing finance corporation and the TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS ("TDHCA"), a public and official agency of the State of Texas. RECITALS: A. CAHFC has been duly created and organized pursuant to and in accordance with the provisions of the Texas Housing Finance Corporations Act,as amended,Texas Local Government Code, Chapter 394 (the "Act"), for the purpose of providing a means of financing the costs of residential ownership and development that will provide decent, safe and sanitary housing for persons of low and moderate income at prices they can afford. B. The Act authorizes CAHFC to issue bonds for the purpose of obtaining funds to financehome mortgage loans (or participation interests therein) for persons of low and moderate income forhomes within the geographic limits of the Counties of Bastrop, Blanco, Burnet,Caldwell,Fayette,Hays,Lee,Llano and Williamson and the City of San Marcos. C. Section 103 and Section 143 of the Internal Revenue Code of 1986,as amended (the "Code"), provide that the interest on obligations issued by or on behalf of a state'or a political subdivision thereof the proceeds of which are to be used to finance owner-occupied residences shall be excludable from gross income of the owners thereof for federal income tax purposes if such issue meets certain requirements set forth in Section 143 of the Code. D. Section 146(a) of the Code requires that certain "private activity bonds" (as defined in Section 141(a) of the Code)must come within the issuing authority's private activity bond limit for the applicable calendar year in order to be treated as obligations the interest on which is excludable from the gross income of the holders thereof for federal income tax purposes. E. The private activity bond "State ceiling" (as defined in Section 146(d) of the Code) applicable to the State of Texas (the "State")is subject to allocation,in the manner authorized by Section 146(e) of the Code,pursuant to Chapter 1372,Texas Government Code,as amended (the "Allocation Act"). F. The Allocation Act requires CAHFC,in order to reserve a portion of the State ceiling for qualified mortgage bonds and satisfy the requirements of Section 146(a)of the Code,to file an application for reservation(an "Application for Reservation")with the Texas Bond Review Board (the "Bond Review Board"), stating the maximum amount of the bonds requiring an allocation, the purpose of the bonds and the section of the Code applicable to the bonds. G. The Allocation Act and the rules promulgated thereunder by the Bond Review Board (the "Allocation Rules")require that an Application for Reservation be accompanied by a copy of the certified resolution of the issuer authorizing the filing of the Application for Reservation. Assignment Agreement for HFC single family volume cap reservation 4886-7021-4504 v3.docx 2239861