Res 2026-075 approving a settlement agreement with Pecos Housing Finance Corporation under which the corporation’s multifamily apartments in San Marcos, Kyle and Hays County

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SETTLEMENT AGREEMENT Pecos Housing Finance Corporation ("Pecos HFC") and the City of San Marcos, City of Kyle,and Hays County,Texas(collectively"Cities")hereby enter into this Settlement Agreement (the"Agreement"),which shall be deemed effective as of April_,2026(the"Effective Date"). Definitions "Pecos HFC"shall mean and refer to Pecos Housing Finance Corporation. "Cities" shall refer collectively to the City of San Marcos, the City of Kyle, and Hays County, Texas. "Party"and"Parties"shall refer, individually or collectively,to Pecos HFC or the Cities. "Property"refers to the 12.567 acre tract, legally described as Stonecreek Crossing Phase 2, Block, 3, Lot 9-BI, located within the City of San Marcos and acquired by Pecos HFC on February 28,2025; "Litigation" shall refer to all proceedings relating to (1) Pleasanton Housing Finance Corporation and Pecos Housing Finance Corporation v. City of San Marcos, City of Kyle, and Hays County, Texas, Cause No. 08-25-00291-CV in the Eighth District Court of Appeals ("the Court of Appeals"), and (2) City of San Marcos, City of Kyle, and Hays County, Texas v. Pecos Housing Finance Corporation and Pleasanton Housing Finance Corporation, Cause No. 25- 1185-DCB in the 207th Judicial District Court of Hays County,Texas("the Trial Court"). Recitals WHEREAS,on February 28,2025, Pecos HFC acquired the Property; WHEREAS, on April 25, 2025, the Cities filed the Litigation seeking declaratory relief regarding tax exemptions related to the Property; WHEREAS,the trial court signed a Final Judgment on September 9,2025 which included, among other things,an award of attorney's fees against Pecos HFC("Final Judgment"); I _l.