DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Approval of tax exempt bonds for purposes of the Internal Revenue Code and to comply with the San Antonio Housing Trust Finance Corporation's organizational documents.
SUMMARY:
This Ordinance approves the issuance by the San Antonio Housing Trust Finance Corporation of its "First Lien Multifamily Housing Revenue Bonds (Northview Apartments Project) Series 2020A" and its "Second Lien Multifamily Housing Revenue Bonds (Northview Apartments Project) Series 2020B" (collectively, the "Bonds") for purposes of Section 147 (f) of the Internal Revenue Code and in order to comply with the San Antonio Housing Trust Finance Corporation's organizational documents.
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 created the San Antonio Housing Trust Finance Corporation (the "Corporation") and the organizational documents require that all bonds issued by the Corporation be approved by the City prior to their issuance. The attached ordinance approves the bonds for purposes of complying with this requirement.
The Bonds are being issued to finance the costs of acquiring, constructing, and equipping a 156-unit affordable multifamily housing facility (the "Project") to be located at 23132 US Highway 281 North in San Antonio for the benefit of VCCPHC-San Antonio I, LP (the "Borrower"). All units in the Project will be made available to families whose income averages 60% or less than the median income. In addition, the rents will be restricted to 30% of the tenant's income. These restrictions will remain in place for 40 years. A public hearing with respect to the Project and issuance of the Bo...
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