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Title:
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Issuance of Multifamily Housing Revenue Bonds (Foothills Village Apartments Project) for Purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended (Resolution 21836)
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Title
Issuance of Multifamily Housing Revenue Bonds (Foothills Village Apartments Project) for Purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended (Resolution 21836)
Description
Requests City Council adoption of Resolution 21836 approving the issuance of Multifamily Housing Revenue Bonds (Foothills Village Apartments Project) to be issued in one or more tax-exempt and/or taxable series in an aggregate principal amount not to exceed $15,000,000 following a public hearing held on May 26, 2020, solely for the purposes of complying with the notice requirement set forth in Section 147(f) of the Internal Revenue Code, as amended (the “Code”).
Report
Summary
On June 5, 2019, the City Council adopted Resolution 21754 granting approval of the proceedings under which The Industrial Development Authority of the City of Phoenix, Ariz. (the “Phoenix IDA”) had resolved to issue up to $15,000,000 of Multifamily Housing Revenue Bonds (the “Revenue Bonds”) as required by A.R.S. 35-721(b). The proceeds from the sale of the Revenue Bonds are to be used by FVA, LLC (the “Borrower”), an Arizona limited liability company, to
finance or refinance, as applicable, acquisition, construction, improvement, equipping and/or operation of a multifamily residential rental housing facility in Phoenix, Arizona, and
pay certain costs related to the issuance of the Revenue Bonds.
Resolution 21754 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 is valid until June 5, 2020, however, the Bonds will not be issued before June 5, 2020.
Current Request
Because the previous public hearing and approval is considered “stale” under Section 147(f) of the Code, a public hearing was held on May 26, 2020, and a new approval of the plan of financing and issuance of the Revenue Bonds is requested by adoption of Resolution 21836, which will allow the Revenue Bonds to be issued on a tax-exempt basis on or before June 2, 2021.
Concurrence/Previous Council Action
The Phoenix IDA Board previously resolved to issue the Revenue Bonds at its meeting held on May 16, 2019. For purposes of providing the approval required by A.R.S. 35-721(b), the City Council adopted Resolution 21754 on June 5, 2019, which approval remains valid.
Location
The Project is located at 920 W. Alta Vista Road in Phoenix, Arizona.
Council District: 7
With the exception of certain housing bonds, the Phoenix IDA can finance projects located anywhere in Arizona. In addition, the Phoenix IDA may issue bonds to finance projects outside of Arizona, if the out-of-state project provides a benefit within the State.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr.