Minutes 11/23/2021 - Laserfiche WebLink

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November 23, 2021 21 - 358 - Adoption of a resolution approving the issuance by the Portsmouth Redevelopment and Housing Authority of multifamily housing revenue bonds for the renovation and rehabilitation of the Mount 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 scores 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 late Q1/Early Q2 2022 and be completed within approximately 15 months. Discussion:  PRHA conducted an initial public hearing on the issuance of the bonds on November 19, 2020 and received no comments in opposition.  By resolution adopted on January 12, 2021, City Council approval of the issuance of the bonds was obtained as required by certain federal tax rules.  Under such federal tax rules, upon the expiration of one year from the date of Council's approval, a subsequent public hearing must be held and public approval obtained before the issuance of the bonds.  PRHA conducted such subsequent public hearing on the issuance of the bonds on November 18, 2021.  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:  There is no financial impact to the City from the issuance of bonds by PRHA.  City staff is currently evaluating a separate request from the developer to provide up to $400,000 in City-controlled HOME Investment Partnerships Program funding from HUD in support of the Mount Herman Village Apartments renovation. 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: “RESOLUTION APPROVING THE ISSUANCE BY THE PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE RENOVATION AND REHABILITATION OF THE MOUNT HERMON VILLAGE APARTMENTS LOCATED IN THE CITY OF PORTSMOUTH, VIRGINIA.