Title
Resolution Approving the Issuance of Multifamily Housing Revenue Bonds by the Housing Authority of the City of Greensboro to Provide Financing for the Renovation of Claremont Courts
Body
Department: Executive
Council District: 2
Public Hearing: No
Advertising Date/By: N/A
Contact 1 and Phone: Tom Carruthers, City Attorney, 373-2320
Contact 2 and Phone: Barbara Harris, 373-2509
PURPOSE:
To approve in principle the issuance of not to exceed $10,000,000 Multifamily Housing Revenue Bonds by the Housing Authority of the City of Greensboro to provide financing for the renovation of Claremont Courts.
BACKGROUND:
The Housing Authority of the City of Greensboro (the "Authority") has tentatively agreed to issue its multifamily housing revenue bonds in an amount not to exceed $10,000,000 (the "Bonds"), for the purpose of financing the acquisition and rehabilitation by Claremont Courts, LLC, a North Carolina limited liability company, which is partially owned by an affiliate of the Authority (the "Borrower"), of a low and moderate income multifamily residential rental facility consisting of 250 units located at 2702 Patio Place and known as Claremont Courts (the "Development"). Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that the City Council approve any bonds issued by the Authority for the Development. The Authority held a public hearing with respect to the issuance of the Bonds to finance the Development and has requested the City to approve the issuance of the Bonds as required by the Code.
Approval of the issuance of the Bonds is solely to satisfy the requirements of Section 147(f) of the Code and does not in any way constitute an endorsement of the Bonds or the Development or the creditworthiness of the Borrower, nor does it obligate the City for the payment of the principal of or premium or interest on the Bonds or of any other related obligations.
BUDGET IMPACT:
None.
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