Trinity Affordable Housing Corporation's Purchase of Sheridan Village_Hearing Copyright 2014
City of Dubuque Public Hearings # 6.
ITEM TITLE: Trinity Affordable Housing Corporation's Purchase of Sheridan Village
Apartments
SUMMARY: Proof of publication on notice of public hearing to approve the issuance of
tax-exempt bonds on Behalf of Trinity Affordable Housing Corporation, an
Illinois Nonprofit Corporation 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 and approval does not commit any
financial obligations on behalf of the City of Dubuque related to the project
and the City Manager recommending approval.
RESOLUTION Approving The Issuance by the Public Finance Authority of
Bonds on Behalf of Trinity Affordable Housing Corporation, an Illinois
Nonprofit Corporation
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Trinity Affordable Housing Purchase of Sheridan Village Apartments- City Manager Memo
MVM Memo
❑ Memo Staff Memo
❑ Resolution Resolutions
❑ Notice Staff Memo
❑ Proof of Publication Trinity 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 24, 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
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. The City of Dubuque would not be issuing the bonds and
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.
RESOLUTION 175-15
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 4'
"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 financingproviding
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
OHSUSA:761509695.2
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 TEFRA 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]
OHSUSA:761509695.2 2
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
f
By: ...,.
(Seal)
Attest:
OHSUSA:761509695.2
3
Lynn V. Sutton, Mayor Pro Tem
EXHIBIT A
FORM OF TETRA NOTICE
[to be attached]
OHSUSA:761509695.2
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
OHSUSA:761491169.2
STATE OF IOWA {SS:
DUBUQUE COUNTY
CERTIFICATION OF PUBLICATION
I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation,publisher
of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper
on the following dates: May 01, 2015, and for which the charge is $43.21.
Subscribed to before me, a Notary Public in and for Dubuque County, Iowa,
this & day of 20 /-1-
Notary
,gNotary Public in and for Dubuque County, Iowa. p
i'
MARY K WESTEM705 f
Commission Number 184885
',qwa
My Comm. Exp, FEB, 1,2017
s
i
i
CITY OF DUBUQUE, Revenue Bonds, Series
IOWA
OFFICIAL NOTICE 2015 (Trinity Afford-
able Section 8 Assisted
NOTICE OF PUBLICi
HEARING FOR THE 'Apartments artments Project),in
CITY COUNCIL OF one or more series(the
THE CITY OF "Bonds ) issued from
DUBUQUE, IOWA AN time to ti'M6 in '-an''
AMOUNT NOT TO aggregate amount not
EXCEED$4,675,000 OF to exceed $25,015,000.
PUBLIC . FINANCE If A portion of the
AUTHORITY MULTI- ":Proceeds from the sale
FAMILY, HOUSING 'of "the' Bonds,-`rot"
REVENUE BONDS,I expected t6 .exceed
SER16,2015(TRINITY $4,675,000,will be used
AFFORDABLE SEC- to make a loan to
TION 8 ASSISTED Trinity-Sheridan : ViII-,,I
APARTMENTS PRO- Iage, LLC an Iowa
JECT limited liability, cow ce is hereby'"g"iJen pang,"of which Trinity
that,at 6.3.0 p.m;,oras Affordable; Housing
soon thereafter'as the ' Corporation, an Illinois ii
matterdan be heard on nonprofit corporation i
May 1'$, `2015, at the j is the sole "member
city Council`Chambers, (collectively, the 'Bor-
Historic FederalBuild- rower") and used to
ing, 2nd Floor, 350 W. finance and/or refi
6th Street, Dubuque, nan6e,the acquisition, l
Iowa,a;public hearing, 1 `rehabilitation, equip-
as required by Section ping-and/or improve-
147(f) of the, Internal I Ment ,of I Sheridan
Revenue,"Co'de of 1986, Village,a 60-unit multi-
,as 'acnended (the"
'family rental housing I I
"Code"), will be held development located .{
by"the City Council of—at 3260 Getty Terrace, %I
the'City of Dubuque, Dubuque, Iowa, to pay k
Iowa (the "City") with I `interest on the Bonds,
respect to the pro=
i pay costs�of issuance _
(posed plan of financing of the Bonds, and/or
for the issuance,by the fund. a debt service
Public Finance Author- reserve fund for'the
ity(the"Authority")of Bonds(the"Project").
its Multifamily Housing The Authority has
provided,the following
information for this
Notice:The Bonds are
expected;to be issued
pursuant to:, Section
1 66.0304 'of, the'.'Wis-
consin 'Statutes; ,as
amended;'" by ""the
Authority, a commis- I
cion organized under i
and L pursuant to the ,
pr'ovisior s, of Sections
66.030 1, 66.0303 .and
66.0304 of the-Wis-
consin Statutes. The
Bonds will be limited i
obligations . of' °-the
Authority'payable only, j
from the loan 'repay-
ments to be- made;by I
the Borrower to the
Authority;: and certain;,
funds and accounts
established "by" ;the
bond indenture fo11 r;the
Bonds.
The hearing; will
provide areasonable
1,opportunity to be
.heard
for persons
wishing to express I
"their views" on `flie
merits of the Broject,
its location, the 1ssu
ance of ne Bonds or.
related matters. 1Nrit'
tern.corn merits will be I
accepfed',bythe City at
50 'W.,'13th" Street,_j
Dubuque, Iowa 52001, j
but must"be received
on,or before the time,
and date of the i ea`r-
ing. Documents are"on
-
file at the City Clerk's
Office, 50 W. 13th
Street ;Dubuque;"and
may be viewed during
,regular business hours.
Any visual or hearing-
impaired persons need- '!,
ing special assistance
or=s with special "
accessibility needs
should contact the City
Clerk's,office at (563)
589-4100 or TDD at
(563) 690-6678 at least
48 hours prior to the
meeting.
Dated:May 1,2015
Kevin S.Firnstahl,
City Clerk
it 5/1