Title
Adoption of a Resolution Approving the Issuance of Multifamily Housing Revenue Bonds (Residences at Falcon Park Project), Series 2023, For Purposes of Section 147(F) of the Internal Revenue Code of 1986, As Amended (Resolution 22156)
Description
Requests City Council adoption of a resolution approving the issuance of Multifamily Housing Revenue Bonds (Residences at Falcon Park Project), Series 2023, to be issued in one or more tax-exempt and/or taxable series in an aggregate principal amount not to exceed $30,000,000 following a public hearing held on Sept. 29, 2023, solely for the purposes of complying with Section 147(f) of the Internal Revenue Code, as amended (the “Code”).
Report
Summary
On Aug. 31, 2022, the City Council adopted Resolution 22060 granting approval of the proceedings under which The Industrial Development Authority of the City of Phoenix, Arizona (the “Phoenix IDA”) had resolved to issue up to $30,000,000 of Multifamily Housing Revenue Bonds (the “Revenue Bonds”) as required by Arizona Revised Statues (A.R.S.) 35-721(B). The proceeds from the sale of the Revenue Bonds are to be used by Falcon Park, LLC (the “Borrower”), an Arizona limited liability company, to:
a.) finance or refinance, as applicable, acquisition, construction, improvement, equipping and/or operation of a multifamily residential rental housing community to be comprised of 192 units in Phoenix, Arizona, and;
b.) pay certain costs related to the issuance of the Revenue Bonds.
Resolution 22060 also approved the plan of financing for the project and the issuance of the Revenue Bonds following a public hearing as required by Section 147(f) of the Code. For such purpose, the City Council’s original approval was valid until Aug. 31, 2023, however, market conditions led to financing delays such that the Bonds were not able to be issued by said date.
Because the previous public hearing and approval has “expired” for purposes of Section 147(f) of the Code, a public hearing was held on Sept. 29, 2022, and a new approval of the plan of financing and issuance of the Revenue Bonds is requested by adoption of a resolution, which will allow the Revenue Bonds to be issued on a tax-exempt basis on or before Oct. 4, 2024.
Concurrence/Previous Council Action
The Phoenix IDA Board previously resolved to issue the Revenue Bonds at its meeting held on Sept. 21, 2023. For purposes of providing the previous approval required by Arizona Revised Statutes 35-721(B) and Section 147(f) of the Code, the City Council adopted Resolution 22060 on Aug. 31, 2022, which approval has expired.
Location
1220 N 34th Ave.
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer.