Subject: 19110/Chatt Neigh Hous Serv Loans/Comm. Devel.
Date: Mon, 9 Apr 1990 16:20:00 -0500


                               RESOLUTION NO. 19110
        
        
                   A RESOLUTION AUTHORIZING THE MAYOR AND CITY
                   FINANCE OFFICER TO EXECUTE AND ATTEST,
                   RESPECTIVELY, AN AGREEMENT BETWEEN CHATTANOOGA
                   COMMUNITIES NEIGHBORHOOD HOUSING SERVICES,
                   INC., CHATTANOOGA NEIGHBORHOOD ENTERPRISE,
                   INC., NEIGHBORHOOD HOUSING SERVICES OF AMERICA,
                   INC. AND THE CITY OF CHATTANOOGA, TENNESSEE
                   RELATIVE TO THE SERVICING OF LOANS MADE FROM
                   COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.
                  
                         _______________________________
        
              	   WHEREAS, Chattanooga Communities Neighborhood Housing
         Services, Inc. ("NHS of Chattanooga") and Neighborhood Housing
         Service of America, Inc. ("NHSA") entered into a certain Loan
         Sale and Servicing Agreement ("LSSA") dated January 22, 1986;
         and
              	   WHEREAS, NHS of Chattanooga originated certain
         mortgages which subsequently were sold to NHSA and were 
serviced
         by NHS of Chattanooga pursuant to the LSSA (the "NHSA Loans");
         and
              	   WHEREAS, NHS of Chattanooga originated certain
         mortgages which NHS of Chattanooga maintained in its own loan
         portfolio ("NHS Loans") and holds certain properties and
         interest therein ("NHS Properties"); and
              	   WHEREAS, NHS of Chattanooga intends to terminate its
         corporate existence; and
              	   WHEREAS, the City of Chattanooga is a funding source
         of both NHS of Chattanooga and CNE and desires that CNE accept
         assignment of the NHS Loans and NHS properties; and
              	   WHEREAS, NHS of Chattanooga desires to assign to CNE
         the NHS Loans and NHS properties, and CNE desires to accept
         assignment of the NHS Loans and NHS Properties, under the terms 

         and conditions set forth in the Agreement attached hereto; and
              	   WHEREAS, NHSA desires to contract with CNE for
         servicing of the NHSA Loans, and CNE desires to service the 
NHSA
         Loans, under the terms and conditions contained herein;
                                 NOW, THEREFORE,
              	   BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
         CHATTANOOGA, TENNESSEE, That the Mayor and the City Finance
         Officer be and are hereby authorized to execute and attest,
         respectively, an agreement between Chattanooga Communities
         Neighborhood Housing Services, Inc., Chattanooga Neighborhood
         Enterprise, Inc., Neighborhood Housing Services of America, 
Inc.
         and the City of Chattanooga, Tennessee, relative to the
         servicing of the NHS loans and NHSA loans made from Community
         Development Block Grant Funds, a copy of said agreement being
         attached hereto and incorporated herein by reference.
        
        
         ADOPTED:  July 30, 1991
         WSPjr:jrm