Title
Ordinance No. 21-29 authorizing the issuance and delivery of the City's Series 2021 multi-family housing revenue bonds for the Academy Heights Apartments project in one or more series, in the aggregate principal amount of $22,000,000
Presenter:
Steve Posey, HUD Program Manager, Planning & Community Development
John Bales, Fred Marienthal, Kutak Rock LLP
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
The ordinance will authorize the issuance of Private Activity Bonds (PAB) for the Academy Heights Apartments, a 201 unit affordable housing project located at the NW Corner of E. Fountain Boulevard & Academy Park Loop. Due to a favorable modification of the 4% Low Income Housing Tax Credit program, the bond amount has been reduced to $22M from the $23M previously approved by City Council in July, 2020.
Previous Council Action:
20-278: Preliminary inducement resolution adopted for $23M in private activity bonds to finance the Academy Heights Apartments.
18-038, 19-352, 20-389: Resolutions adopted to carry forward the City's annual private activity bond allocations for the financing of affordable multi-family rental projects.
Background:
In 2018, 2019, and 2020, City Council voted to carry forward its PAB allocations for the purpose of financing qualified residential rental projects, an eligible use of PAB under the IRS code. Carrying forward PAB for multi-family affordable housing is a means for City Council to address the need for additional housing for lower-income populations in the community. The City is a conduit issuer of PAB. As a result, the City assumes no liability for repayment of the bonds. The developer accessing PAB financing agrees to carry all costs related to the bond issuance, marketing and servicing, including attorney's fees, document preparation, and public notifications.
In June, 2020, the CC Budget Committee recommended moving forward with a preliminary inducement resolution to issue up t...
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