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October 10, 2017 <br /> <br />NOW, THEREFORE, BE IT RESOLVED <br /> by the Council of the City of Portsmouth, <br />Virginia that the City Manager is hereby authorized to execute and deliver a Loan <br />Agreement between the City and the Commonwealth substantially on the terms set forth <br />herein, and to take such further action as may be necessary or desirable to obtain the <br /> <br />loan described herein.” <br /> <br />Ayes: Cherry, Clark, Lucas-Burke, Moody, Psimas, Whitaker, Rowe <br />Nays: None <br /> <br />17 - 447 - Adoption of a resolution approving the issuance by the Portsmouth <br />Redevelopment and Housing Authority of its revenue bonds for the acquisition and <br />renovation of a portion of the Dale Homes Apartments housing facility located in <br />the City of Portsmouth, Virginia (Phase II). <br /> <br />Background: <br /> <br /> PRHA has committed to the phased renovation of the Dale Homes community. <br /> <br /> PRHA is currently renovating 146 rental units in Phase I of the project. <br /> <br /> As the second phase of rehabilitation of Dale Homes, PRHA will renovate the <br />remaining 150 rental units in the community. <br /> <br /> Rather than rely on local funding, PRHA will use tax credit and tax-exempt bond <br />financing to fund the rehabilitation. <br /> <br /> The amount of the tax-exempt bond issuance will be not to exceed $11,500,000. <br /> <br />Discussion: <br /> <br /> Federal law requires that a municipality approve the issuance of multifamily <br />housing bonds. <br /> <br /> City approval is an administrative requirement of federal law and does not subject <br />the city to any liability. <br /> <br />Financial Impact: <br /> <br /> <br /> There will be a positive financial impact on the city. The bonds will not constitute <br />city debt and the use of bond financing will allow PRHA to leverage private equity rather <br />than rely on city or other governmental funding. Additional benefits to the city are <br />identified on Exhibit 3 (Fiscal Impact Statement) to the attached PRHA Certificate of <br />Public Hearing. <br /> <br />Staff Recommends: <br /> <br /> Adoption of proposed resolution. <br /> <br />Next Steps Following Council Action: <br /> <br /> <br /> <br /> PRHA will obtain financing commitments from a bond purchaser. <br /> <br />Motion by Ms. Lucas-Burke, and seconded by Mr. Moody, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />“RESOLUTION APPROVING THE ISSUANCE BY THE PORTSMOUTH <br />REDEVELOPMENT AND HOUSING AUTHORITY OF ITS REVENUE BONDS FOR <br />THE ACQUISITION AND RENOVATION OF A PORTION OF THE DALE HOMES <br />APARTMENTS HOUSING FACILITY LOCATED IN THE CITY OF PORTSMOUTH, <br />VIRGINIA (PHASE II). <br /> <br /> WHEREAS, <br /> the Portsmouth Redevelopment and Housing Authority (the <br />“Authority”) is authorized to advertise and hold public hearings relative to the issuance of <br />private activity bonds; and <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />