Trinity Affordable Housing Corporation's Purchase of Sheridan Village_Initiate Copyright 2014
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Trinity Affordable Housing Corporation's Purchase of Sheridan Village
Apartments
SUMMARY: City Manager recommending that a public hearing be set for May 18, 2015
to approve the issuance of tax-exempt bonds related to Trinity Affordable
Housing Corporation's proposed purchase of Sheridan Village Apartments.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Set Public Hearing for 5/18/15
ATTACHMENTS:
Description Type
❑ Trinity Affordable Housing's Purchase of Sheridan Village Apartments- City Manager Memo
MVM Memo
❑ Staff Memo Staff Memo
❑ Resolution Resolutions
❑ Public Notice Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Trinity Affordable Housing Corporation's Purchase of Sheridan Village
Apartments
DATE: April 16, 2015
Sheridan Village is a 60-unit property located at 3260 Getty Terrace in Dubuque, with a
Housing Assistance Payment Section 8 contract covering 100% of the units. It is
designated as a "family" development. Trinity Affordable Housing Corporation, a not-
for-profit organization, has proposed to purchase Sheridan Village.
Housing & community Development Director Alvin Nash requests the City Council set a
public hearing for May 18, 2015 to approve the issuance of tax-exempt bonds for the
proposed project. This approval is required for compliance with the federal tax laws
under the Tax and Equity Fiscal Responsibility Act of 1982. This approval does not
commit any financial obligations on behalf of the City of Dubuque related to the project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Alvin Nash, Housing & Community Development Department Director
THE CITY OF Dubuque
DUAll-America City
B E i r
Masterpiece on the Mississippi 200,.2012.2013
a better way of living
TO: Michael C. Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Director
SUBJECT: Trinity Affordable Housing Corporation's Purchase of Sheridan Village
Apartments
DATE: April 15, 2015
Introduction
Sheridan Village is a sixty (60)-unit property located at 3260 Getty Terrace in Dubuque,
with a Housing Assistance Payment (HAP) Section 8 contract covering 100% of the
units. It is designated as a"family" development. Trinity Affordable Housing
Corporation (Trinity), a not-for-profit organization, has proposed to purchase Sheridan
Village.
Trinity requests the City Council hold a public hearing and adopt a resolution
approving the issuance of tax-exempt bonds for the proposed project. This approval is
required for compliance with the federal tax laws under the Tax and Equity Fiscal
Responsibility Act of 1982 ("TEFRA"). This approval does not commit any financial
obligations on behalf of the City of Dubuque related to the project.
Background
Trinity Affordable Housing Corporation approached the Program Manager for the Public
Finance Authority (PFA) to assist in financing six (6) properties in Iowa and Missouri,
including the Sheridan Village Apartments. Trinity's intention is to acquire, renovate and
improve the housing while maintaining HUD assistance for these units. Trinity is a non-
for-profit corporation with a mission to create and preserve affordable housing
communities for persons and families of low- and moderate-income, the elderly, and the
disabled. Trinity provides social and educational services to enhance quality of life for
residents in these communities.
The Public Finance Authority (PFA) is a political subdivision of the State of Wisconsin
authorized to issue taxable and tax-exempt bonds for public benefit projects
nationwide. The PFA was formed and is sponsored by the National League of Cities
and National Association of Counties. In order to complete the financing the local
agency where the project is proposed must approve the PFA financing. Trinity requests
the City Council hold a public hearing to meet the requirements of the Tax and Equity
Fiscal Responsibility Act of 1982, TEFRA. The TEFRA hearing process is a public
accountability procedure involving the legislative body of the local agency in which the
proposed project is located and provides members of the community the opportunity to
comment on the nature and location of the proposed project to be financed with tax-
exempt bonds. Regulations require notice of such hearing be published in a newspaper
of general circulation at least 14 days prior to the date of the public hearing.
In early 2010, the Wisconsin Legislature passed 2009 Wisconsin Act 205 (the "Act')
which was signed into law on April 21 , 2010. The Act added Section 66.0304 to the
Wisconsin Statutes providing the authority for two or more political subdivisions to
create a commission to issue bonds under that Section. The PFA was formed upon
execution of an Amended and Restated Joint Exercise of Powers Agreement dated
September 28, 2010 among four Wisconsin Counties (Adams, Bayfield, Marathon and
Waupaca) and the city of Lancaster, Wisconsin.
The PFA was established by local governments, primarily for local governments, for the
public purpose of providing local governments a means to efficiently and reliably
finance projects that benefit local governments, nonprofit organizations, and other
eligible private borrowers in the State and throughout the country. The PFA is governed
by a Board consisting of seven Directors.
Sheridan Village was built in 1980 and is in above average condition. Trinity
engaged a firm to conduct an environmental phase one test and a property
condition report. The property is environmentally clean. The property requires
minor repairs to the asphalt pavement and concrete curbing and sidewalks. The
total cost is slightly more than $17,000. The funds for this will be set aside at
closing out of closing proceeds. The work will be completed within two (2) months
of closing. In addition, Trinity will deposit $21 ,000 per year into a reserve account
for capital replacements. This obligation will run for as long as Trinity owns the
property.
Discussion
The City is being asked to hold a public hearing and adopt a resolution supporting the
issuance of tax-exempt bonds for the proposed project. This approval is required for
compliance with the federal tax laws under the Tax and Equity Fiscal Responsibility
Act of 1982 ('TEFRA"). This approval will not constitute any other approval of the City
and the City will have no financial obligation related to the project. Note that all tax-
exempt financings issues by the PFA throughout the country have gone through this
same process. The acquisition of Sheridan Village by Trinity is one of several acquisitions
across the country being financed through these means.
An affirmative vote would set a public hearing and allow the financing for the acquisition
to proceed as required by TEFRA requirements. Without this approval, the Dubuque-
specific portion would not be included in the financing and Trinity may not be able to
proceed with the acquisition of Sheridan Village.
The City is not a party to any of the financing documents related to the issuance of the
bonds nor is it named in any of the disclosure documents describing the bonds or the
proposed financings. The approval process is in accordance with the TEFRA approval
requirements and Wisconsin Statutes.
Action Steps/Recommendation
It is recommended that City Council, during its April 20, 2015 meeting, schedule a public
hearing for May 18, 2015, for the purpose of receiving public comment on a resolution
approving the issuance of tax-exempt bonds to financing the purchase of Sheridan
Village by Trinity Affordable Housing Corporation. Such approval is required for
compliance with the federal tax laws under the Tax and Equity Fiscal Responsibility Act,
TEFRA, as well as the Wisconsin statutes requiring local approval.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBUQUE, IOWA
APPROVING THE ISSUANCE BY THE PUBLIC FINANCE AUTHORITY
OF BONDS ON BEHALF OF
TRINITY AFFORDABLE HOUSING CORPORATION,
AN ILLINOIS NONPROFIT CORPORATION
WHEREAS, the City of Dubuque, Iowa(the "City") is a political subdivision of the State of
Iowa and the City Council (the "Governing Body") is the elected governing body of the City;
and
WHEREAS, the Public Finance Authority (the "Authority") is a commission organized
under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304 of the Wisconsin
Statutes, is authorized to issue tax-exempt, taxable, and tax credit conduit bonds for public and
private entities throughout all 50 states and is jointly sponsored by the National Association of
Counties, National League of Cities, Wisconsin Counties Association and League of Wisconsin
Municipalities (the "Sponsors"); and
WHEREAS, Trinity-Sheridan Village, LLC, an Iowa limited liability company of which
Trinity Affordable Housing Corporation, an Illinois nonprofit corporation ("Trinity"), is the sole
member (collectively, the `Borrower'), has requested that the Authority adopt a plan of
financing providing for the issuance of its Public Finance Authority Multifamily Housing
Revenue Bonds, Series 2015 (Trinity Affordable Section 8 Assisted Apartments Project) (the
"Bonds"), in one or more series from time to time, in an aggregate amount not to exceed
$25,015,000. A portion of the proceeds from the sale of such Bonds, not expected to exceed
$4,675,000, will be used to finance and/or refinance the acquisition, rehabilitation, equipping
and/or improvement of Sheridan Village, a 60-unit multifamily rental housing facility located at
3260 Getty Terrace, Dubuque, Iowa, to pay interest on the Bonds, to pay costs of issuance of the
Bonds, and/or to fund a debt service reserve fund for the Bonds (the "Project'); and
WHEREAS, the Bonds or a portion thereof will be "private activity bonds"for purposes
of the Internal Revenue Code of 1986 (the "Code'), and pursuant to Section 147(f) of the Code,
prior to their issuance, the Bonds are required to be approved by the "applicable elected
representative" of a governmental unit having jurisdiction over the entire area in which the
Project is located, after a public hearing held following reasonable public notice; and
WHEREAS, pursuant to Section 147(f) of the Code, the Governing Body, following
notice duly given in the form attached hereto as Exhibit A (the "TEFRA Notice'), held a public
hearing regarding the financing of the Project and the issuance of the Bonds, and now desires to
approve the financing and the issuance of the Bonds; and
WHEREAS, pursuant to Section 66.0304(11)(a) of the Wisconsin Statutes, prior to their
issuance, bonds issued by the Public Finance Authority must be approved by the governing
body or highest ranking executive or administrator of the political jurisdiction within whose
boundaries the project is to be located; and
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WHEREAS, the Borrower(s) has/have requested that the City approve the financing of
the Project and the issuance of the Bonds in order to satisfy the public approval requirement of
Section 147(f) of the Code and the requirements of Section 4 of the Amended and Restated
Joint Exercise of Powers Agreement Relating to the Public Finance Authority, dated as of
September 28, 2010 (the "Joint Exercise Agreement) and Section 66.0304(11)(a) of the
Wisconsin Statutes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
1. The foregoing recitals are true and correct.
2. For purposes of the requirements of Section 147(f) of the Internal Revenue Code of
1986, the Governing Body hereby approves the issuance of the Bonds by the
Authority for financing the Project in an aggregate principal amount not to exceed
the amount set forth in the TETRA Notice attached hereto as EXHIBIT A.
3. It is the purpose and intent of the Governing Body that this Resolution constitute
approval of the issuance of the Bonds by the Project Jurisdiction, which is the (or
one of the) governmental unit(s) having jurisdiction over the area in which the
Project is located, in accordance with Section 66.0304(11)(a) of the Wisconsin
Statutes and Section 4 of the Joint Exercise Agreement.
4. The officers of the Governing Body are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents
that they deem necessary or advisable in order to carry out, give effect to and
comply with the terms and intent of this resolution and the financing approved
hereby.
[Remainder of Page Intentionally Left Blank]
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ADOPTED by the City Council of the City at a regular meeting of said body held on the
18th day of May, 2015, by a majority vote.
CITY COUNCIL
CITY OF DUBUQUE, IOWA
By:
Mayor
(Seal)
Attest:
City Clerk
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EXHIBIT A
FORM OF TETRA NOTICE
[to be attached]
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NOTICE OF PUBLIC HEARING
FOR THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA
AN AMOUNT NOT TO EXCEED
$4,675,000 OF PUBLIC FINANCE AUTHORITY
MULTIFAMILY HOUSING REVENUE BONDS, SERIES 2015
(TRINITY AFFORDABLE SECTION 8 ASSISTED APARTMENTS PROJECT)
Notice is hereby given that, at 6:30 p.m., or as soon thereafter as the matter can be heard on
May 18, 2015, at the City Council Chambers, Historic Federal Building, 2°d Floor, 350 W. 6th Street,
Dubuque, Iowa, a public hearing, as required by Section 147(f) of the Internal Revenue Code of 1986,
as amended (the "Code"), will be held by the City Council of the City of Dubuque, Iowa (the "City")
with respect to the proposed plan of financing for the issuance by the Public Finance Authority (the
"Authority") of its Multifamily Housing Revenue Bonds, Series 2015 (Trinity Affordable Section 8
Assisted Apartments Project), in one or more series (the "Bonds") issued from time to time, in an
aggregate amount not to exceed $25,015,000. A portion of the proceeds from the sale of the Bonds,
not expected to exceed $4,675,000, will be used to make a loan to Trinity-Sheridan Village, LLC, an
Iowa limited liability company, of which Trinity Affordable Housing Corporation, an Illinois nonprofit
corporation is the sole member (collectively, the `Borrower") and used to finance and/or refinance the
acquisition, rehabilitation, equipping and/or improvement of Sheridan Village, a 60-unit multifamily
rental housing development located at 3260 Getty Terrace, Dubuque, Iowa, to pay interest on the
Bonds, pay costs of issuance of the Bonds, and/or fund a debt service reserve fund for the Bonds (the
"Project').
The Authority has provided the following information for this Notice: The Bonds are expected
to be issued pursuant to Section 66.0304 of the Wisconsin Statutes, as amended, by the Authority, a
commission organized under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304
of the Wisconsin Statutes. The Bonds will be limited obligations of the Authority payable only from
the loan repayments to be made by the Borrower to the Authority, and certain funds and accounts
established by the bond indenture for the Bonds.
The hearing will provide a reasonable opportunity to be heard for persons wishing to express
their views on the merits of the Project, its location, the issuance of the Bonds or related matters.
Written comments will be accepted by the City at 50 W. 13th Street, Dubuque, Iowa 52001, but must
be received on or before the time and date of the hearing.
Dated: 12015
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