Minutes 01/12/2021 - Laserfiche WebLink

Home Browse Search

January 12, 2021 Motion by Dr. Whitaker, and seconded by Mr. Barnes, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE TO AMEND AND REORDAIN CHAPTER 2 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (ADMINISTRATION) BY MODIFYING SECTION 2-111 THEREOF (LEGAL HOLIDAYS) FOR THE PURPOSE OF INCORPORATING CHANGES TO THE HOLIDAYS RECOGNIZED BY THE COMMONWEALTH OF VIRGINIA.” Ayes: Barnes, Battle, Lucas-Burke, Moody, Whitaker, Woodard, Glover Nays: None 21 - 22 - Adoption of a resolution approving the issuance by the Portsmouth Redevelopment and Housing Authority of its multifamily housing revenue bonds for the acquisition, construction, renovation, rehabilitation and equipping of the approximately 90-unit Mt. Hermon Village Apartments located in the City of Portsmouth, Virginia. Background:  Mt. Hermon Village, located in the 2400 block of Cutherell Street, is a 90-unit HUD- assisted property restricted to residents aged 62 and older.  The development was constructed in 1982 and, despite the age of the units, continues to have an occupancy rate that is consistently near 100% and to score well in HUD reviews of the condition of the property.  NHT Communities (NHT), a non-profit entity based in Washington, D.C., acquired Mt. Hermon Village in 2019 and, through its affiliate MHV Preservation Partners LP (MHV), intends to perform a substantial renovation. The renovation will include updating kitchens, bathrooms, LED lighting, flooring, new roofs and windows, adding in-unit dishwashers, and performing other site improvements.  To finance the substantial rehabilitation, NHT has requested that the Portsmouth Redevelopment and Housing Authority issue not to exceed $10,000,000 in tax-exempt multifamily housing revenue bonds. The proceeds of the bonds will be loaned to MHV to fund the rehabilitation. NHT will also utilize 4% low income housing tax credits obtained from the Commonwealth of Virginia.  It is anticipated that the rehabilitation will commence in February of 2021 and be completed within approximately 15 months. Discussion:  PRHA conducted a public hearing on issuance of the bonds and received no comments in opposition.  PRHA is not affiliated with NHT and will not be involved in ownership of the development. It will receive a small fee for issuing the bonds.  Neither PRHA nor the City will have any liability for repayment of the bonds.  The substantial rehabilitation performed by NHT will extend the useful life of Mt. Hermon Village, which will ensure that the Village continues to be a viable option for senior living in Portsmouth. Financial Impact:  None. Staff Recommends:  Adoption of proposed resolution. Next Steps Following Council Action:  PRHA will issue the bonds. Motion by Ms. Lucas-Burke, and seconded by Mr. Moody, to adopt the following resolution, and was adopted by the following vote: