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Report and possible action to approve use of advances agreement for recycling prepayments as approved by Resolution No. 24-009, to include repayments
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BACKGROUND
Passed and approved by the TDHCA Board on October 26, 2023, Resolution 24-009 authorized the use of the Department’s FHLB Advances Agreement for recycling prepayments; authorized the execution of documents and instruments, and relating thereto; making certain findings and determinations in connection therewith; and containing other provisions relating to the subject.
Where Resolution 24-009 authorized the use of the Department’s FHLB Advances Agreement to recycle mortgage prepayments, the only adjustment this item seeks is the inclusion of mortgage repayments as well.
The effect is that the Department would materially increase the amount of volume cap that can be recycled and used to issue additional mortgage revenue bonds, to fund below-market mortgage loans to qualified low and moderate income first-time home buyers and veterans.
The addition of repayments, should enable the Department to recycle somewhere between $75 to $90 million annually, with $35-$40 million from repayments and $40-$50 million from prepayments