CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: April 18, 2022 Action Required: Adoption of Resolution (1 reading only, no public hearing) Presenter: Michael W. Graff, Jr. McGuire Woods LLP Contacts: John Sales, CRHA Executive Director Lisa Robertson, City Attorney Title: City Council Approval for CRHA to Issue Bonds for Midway Manor Affordable Housing Development Background: Standard Midway Manor has requested that the CRHA and the City Council approve bonds to help finance the acquiring, constructing, renovating, rehabilitating and equipping of an age restricted multifamily residential rental housing project to be known as Midway Manor Apartments. The bonds are not obligations of the CRHA or the City and have no impact on the City’s debt ratings. They are “pass through” or conduit revenue bonds payable solely from the Midway Manor project. When issued by a governmental entity like the CRHA, the bonds carry a tax-advantaged, lower rate of interest and allow the project to qualify for federal housing tax credits (another incentive available to workforce housing development at no cost to the CRHA or the City). Discussion: Adoption of a resolution approving the CRHA’s upcoming Midway Manor revenue bond issuance for the issuance of revenue bond financing in the amount of up to $23,000,000 for Standard Midway Manor Venture LP, consisting of completion of the approximately 98 age restricted units located at 100 Ridge Street. Budgetary Impact: City staff consulted with the City’s Bond Counsel, and have been advised that these bonds would NOT count against the City’s debt limit or be taken into account by the rating agencies, unless the City were to provide some sort of financial backing for the bonds. Alignment with Council Vision Areas and Strategic Plan: Yes. Community Engagement: City Manager Recommendation: The City Manager recommends approval of the attached Resolution. Suggested Motion: “I move the RESOLUTION Approving the issuance by the Charlottesville Redevelopment and Housing Authority of its up to $23,000,000 multifamily revenue bonds for Standard Midway Manor Venture LP” Attachments: • Proposed Resolution for City Council’s Approval • Collected CRHA Materials, documenting CRHA’s approval of the Bond Issue RESOLUTION Approving the issuance by the Charlottesville Redevelopment and Housing Authority of its up to $23,000,000 multifamily revenue bonds for Standard Midway Manor Venture LP WHEREAS the Charlottesville Redevelopment and Housing Authority (the “Authority”) is authorized to advertise and hold public hearings relative to the issuance of private activity bonds; and WHEREAS the Authority has considered the application of Standard Midway Manor Venture LP, a Virginia limited partnership (the “Applicant”) requesting that the Authority issue up to $23,000,000 of its revenue bonds (the “Bonds”) to assist the Applicant or an entity affiliated with and controlled by, or under common ownership with, the Applicant (the Applicant or such resulting ownership entity hereinafter referred to as the “Borrower”) in acquiring, constructing, renovating, rehabilitating and equipping an age restricted multifamily residential rental housing project to be known as Midway Manor Apartments, to consist of 94 one-bedroom units and 4 two- bedroom units, to be located on approximately 2.32 acres of land located at 100 Ridge Street in Charlottesville, Virginia 22902 (the “Project”), including the financing of reserve funds as permitted by applicable law and the costs of issuance incurred in connection with the issuance of the Bonds. Based on representations of the Applicant, the Project is structured to meet the requirements of a qualified residential rental project within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended (the “Code”). The Applicant has represented that the Project will be owned by the Borrower; and WHEREAS the facilities related to the Project to be financed or refinanced with the Bonds are located in the City of Charlottesville, Virginia; and WHEREAS, the City of Charlottesville, Virginia is the geographic jurisdiction that contains the site of the Project to be financed or refinanced with the Bonds (“Host”) the City Council of the City of Charlottesville, Virginia (the “City Council”) constitutes the governmental unit having jurisdiction of the Project Site, and Section 147(f) of the Code requires the City Council, as the governmental unit, to approve the issue; and WHEREAS a copy of the Authority’s resolution authorizing the issuance of the Bonds, a certificate of the public hearing (including a summary of statements expressed at the hearing) and a fiscal impact statement have been filed with the City Council; and WHEREAS the Authority has recommended that the City Council approve the issuance of the Bonds; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Charlottesville, THAT: 1. The City Council approves the issuance of the Bonds by the Authority for the benefit of the Borrower, to satisfy the requirements of Section 147(f) of the Code, to permit the Authority to assist in the financing of the Project. 2. The approval of the issuance of the Bonds does not constitute City Council’s endorsement to a prospective purchaser of the Bonds or the creditworthiness of the Project or the creditworthiness of the Borrower. 3. The Bonds shall provide that the City of Charlottesville, Virginia shall not be obligated to pay the Bonds or the interest thereon, or other costs incident thereto, and neither the full faith and credit nor the taxing power of the City of Charlottesville, Virginia is pledged to payment of the principal of the Bonds, or the interest thereon, or other costs incident thereto. 4. The Bonds shall provide that the Authority shall not be obligated to pay the Bonds or the interest thereon or other costs incident thereto except from the revenues and monies pledged thereto and that full faith and credit of the Authority shall not be pledged to the payment of the principal of the Bonds or the interest thereon or other costs incident thereto. 5. In adopting this resolution, the City of Charlottesville, Virginia, including its elected councilors, representatives, officers, employees and agents, shall not be liable for, and hereby disclaim all liability for, any damages to any person, direct or consequential, resulting from the Authority’s failure to issue the Bonds for any reason. 5. This resolution shall take effect immediately upon its adoption. The undersigned Clerk of the City Council of Charlottesville, Virginia certifies that the foregoing Resolution was adopted by the City Council on ___________, 2022. 01234ÿ678ÿ6966ÿ ÿÿÿÿÿ ÿ! 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