City of San Antonio - File #: 20-3015

• File #: 20-3015
• Type: Misc - Financial Services
• In control: City Council A Session
• On agenda: 5/14/2020
• Posting Language: Ordinance approving the issuance by the Las Varas Public Facility Corporation of its Multifamily Housing Revenue Bonds (Trader Flats Apartments) Series 2020 for purposes of Section 147(f) of the Internal Revenue Code. An administrative fee of $2,500.00, payable by the Las Varas Public Facility Corporation, will be deposited into the General Fund in accordance with the FY 2020 Adopted Budget. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]

Date	Ver.	Action By	Action	Result
5/14/2020	1	City Council A Session	adopted	Pass

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Approval of financing for purposes of the Internal Revenue Code (Trader Flats Apartments)


SUMMARY:

This Ordinance approves the issuance by the Las Varas Public Facility Corporation of its Multifamily Housing Revenue Bonds (Trader Flats Apartments) Series 2020 (the "Bonds") for purposes of Section 147 (f) of the Internal Revenue Code.


BACKGROUND INFORMATION:

Section 147(f) of the Internal Revenue Code (the "Code") requires that the issuance of any private activity bond obligations be approved by the applicable elected representative of the governmental unit in which the project is located after a public hearing following reasonable public notice.
The City was contacted regarding the Las Varas Public Facility Corporation (the "Issuer") financing the costs of acquiring, constructing, and equipping a 324-unit affordable multifamily housing facility (the "Project") to be located at 8671 SW Loop 410, San Antonio, Bexar County, Texas 78242, for the benefit of Trader Flats Ltd. (the "Borrower"). All units in the project will be made available to families whose income averages 60% or less than the median income, with 38% of the units further restricted to families whose income does not exceed 40% of the median family income. In addition, the rents will be restricted to the Texas Department of Housing Tax Credit rents for the tenant income adjusted for family size. These restrictions will remain in place for 35 years. A public hearing with respect to the Project and issuance of the Bonds was held in the City of San Antonio on April 27,, 2020 in compliance with Section 147(f) of the Code


ISSUE:

To meet the requirements of the Code, the Borrower has requested that City Council adopt a Resolution confirming public approval of the financing plan and issuance of the one or more series of Bonds by the Issuer up to a maximum aggregate amount of $38,000,000, all...