HomeMy WebLinkAboutContract CAG-17-203
CERTIFICATE OF MAYOR APPROVING
ISSUANCE OF OBLIGATIONS BY
HOUSING AUTHORITY OF THE CITY OF RENTON
(Golden Cedars Project)
� I am in receipt of the attached letter from the Housing Authority of the City of Renton
(the"Authority") dated October 30, 2017 (the "Authority Letter"), advising the City of Renton,
Washington (the "City") that the Authority intends to issue certain obligations
(the"Obligations") pursuant to a plan of financing, which may consist of multiple issues as
described in the Authority Letter (the "Plan of Financing") with respect to the project further
described below (the"Project"). The Authority has advised the City that the Project will be
owned, for federal income tax purposes, by Golden Cedars LLLP, a Washington limited liability
limited partnership of which the Authority is the sole general partner (the"Bonower") and that
proceeds of the Obligations will be used to make a loan or loans to the Borrower. The
Obligations, the Project and the proposed financing are further described below:
Project Description: Finance the acquisition and rehabilitation of three
aparhnent complexes containing a total of
approximately 369 dwelling units, to provide
housing for low-income persons, as qualified
, residential rental projects under Section 142(d} of
the Code _
Maximum Amount of Obligations: $58,000,000
Project-Owrier/Operator: Golden Cedars LLLP, a Washington limited
liability limited partnership of which the Authority
is the sole general partner
Project Locations: Golden Pines: 2901 NE 10`�' Street, Renton,
. Washington
Cedar River i errrac�: 51 Burnett�verrae S.
Renton, Washington
Cedar Park: 408, 432, 450, 454, and 458 Monroe
Avenue NE, Renton, Washington
The Mayor is a City-wide elected official, the City has jurisdiction over the location of
the Project and the Authoriry has advised the City that the Authority's bond counsel has
determined.that the Mayor represents the City for the purposes of the approval of the issuance of
the Obligations pursuant to the Plan of Financing as required by Section 147(� of the Code.
51G44646�
I, Denis Law, Mayor of the City of Renton, Washington, approve each issue of the
Obligations that is timely issued by the Authority for the Project in accordance with the Plan of
Financing for the Project as described herein and in the Authority Letter. This approval is
intended solely to comply with the requirements of Section 147(� of the Code. This approval is
not intended to imply that the Obligations are issued on behalf of the City, that the City has
approved the form of documents relating to the Obligations, that the City has approved
underlying credit issues regarding the Project, or that the City is under any duty or has any
responsibility for the payment of the Obligations or for fulf llment of the Authority's obligations
under documents relating to the Project or Plan of Financing.
�� IN WITNESS WHEREOF, I have executed this instrument this 3` � ay of
;�d�,✓, 2017.
�
�
Denis Law,Mayor
City of Renton, Washington
51644646.2
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��N�oN HOUS�Nc
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AU�-HOR1'i�
RE�iITON HOIJSIIVG 1�lJTFi�RITY
= P.O.Box 2316• Renton,WA 98056-0316
Office 425/2261850•Fax 425/271-8319
EovA��o�S��c "ITY 1-800-833-6388��
cNPoa,urmTr wtiv�v.rentonhousina.arQ
October 30, 2017
Honorable Mayor Denis Law
City of Renton
Renton City Hall
1055 S. Grady Way
Renton, Washington 98057
Re: Housing Authority of the City of Renton—Golden Cedars Project
Dear Mayor Law:
The Housing Authority of the City of Renton (the "Authority"), a housing authority created
under chapter 35.82 of the Revised Code of Washington (the "Housing Authorities Law"), is planning
the rehabilitation of the following three apartment complexes, known collectively as the Golden
Cedars Project(the "Project"):
1. Golden Pines, located at 2901 NE 10`h Street; Renton, Washington,
2. Cedar River Terrace, Iocated at 51 Burnett Avenue S. Renton, Washington, and
3. Cedar Park, located at 408, 432, 450,454, and 458 Monroe Avenue NE, Renton, Washington.
The renovated Project will provide a total of approximately 369 unit of housing for low-income
persons in the City of Ftenton, �Nashington (fhe "City").
As further described below, the Authority is requesting your approval of the issuance of tax-
exempt qualified private activity obligations (the "Qbligations") to fnancP ,�portion of thp costs of the
Project. Although the City's approval is required for the issuance of the Obligafions, it does not create
or imply any responsibility on the part of the City to issue the Obligations, to pay debt service on the
Obligations or to determine whether the Obligations or the Project are financially feasible.
The financing sources for the Project will include low income housing tax credits, the
Obligations, and other loans. In order to qualify for low income housing t� credits, the Project must
be owned by a private entity. Here, ownership of the Project for federal income tax purposes will be
transferred via a long-term lease to Golden Cedars LLLP (the "Borrower"), a Washington limited
liability limited partnership of which the Authority is the sole general partner. The Authority will issue
the Obligations as a conduit issuer and use the proceeds of the sale of the Obligations to make a loan or
loans to the Borrower to f nance the costs of the Project.
x , .
The Obligations will be issued for the Projeet pursuant to a plan of financing within the
meaning of applicable Treasury Regulations (the "Plan of Financing") and (a)may eonsist of a line of
credit and/or one or more issues (including refunding issues) of revenue bond anticipation notes to
provide interim financing for the Project and one or more issues (including refunding issues) of long-
term revenue bonds or notes to provide permanent financing for the Project; and (b) will be issued in
accordance with a schedule such that the first issue of the Obligations for the Project will be issued no
later than one year after the clate of txie Mayor's approval and any subsequent issue for the Project will
be issued .no later than three years after the issue date of the first such issue for the Project. The
maximum aggregate principal amount of Obligations issued for the Project will not exceed
$58,000,000. In caleulating the maximum aggregate principal amount of the Obligations issued for the
Project pursuant to the Plan of Financing, the principal amount of any issue of Obligations used to
currently refund a prior issue of Obligations will be disregarded to the extent that the principal amount
of such refunding issue does not exceed the outstanding principal arnount of the prior is5ue.
Unlike "governmental" taa�-exempt bonds, qualified private activity bonds may finance a
facility to be used primarily by a private entity, so long as 95% o£ the proceeds of the bonds are
applied to a qualifying purpose (here,provision of low-income housing) and certain other requirements
are met. Among the special requirements applicable to qualified private activity bonds are those
contained in Section 147(� of the Internal Revenue Code (the "Code"}. Under these provisions, added
'by the Tax Equity and Fiscal Responsibility Act and therefore often referred to by the acronym
"TEFRA", are notiee, hearing and local government approval requirements. These TEFRA
requirements are intended to provide opportunities for the public to be rnade aware of projects to be
financed�vith tax-exempt qualified private activity bonds.
Section 147(� of the Code requires that a qualified private activity bond be approved by (a)the
governmental unit that issues the bond, or on behalf of which such bond is issued, and (b)a
governmental unit having jurisdiction over the area in which the financed facility is located. A bond
may be approved by the "applicable elected representative" of a governmenta.l unit, The City has
jurisdiction over the location of the Project. Therefore, approval by the City constitutes approval by a
governmental unit having jurisdiction over the area in which the financed facility is located. Tn
addition, as explained below, the Authority's bond counsel has advised us that approval by the City
satisfies the requirement for approval by the governmental unit that issues the Obligations, in this case,
the Authority. Here, the Authority is serving as the issuer of the tax-exempt Obligations. Because the
members of the Autho:ity governing body are appointed, rather than elected, the Authority does not
have its ow.n "appli.cable elected re�resent�ti�e" fo�' p��?�,+oses �f thP TEFRA requireme??ts. The �
Authority's bond counsel has advised us that; because the City activated the Authority(Resolution 559
of the City Council of the City of Renton adopted September 2, 1941) under the Housing Authorities
Law and appoints members to the Authority's governing body, the "applicable elected representative"
of the City is treated as the "applicable elected representative" of the Authority for TEFRA purposes.
Our bond counsel has further advised that the Citq's Mayor, as the City's chief elected executive .
officer, is an "applicable elected representative" of the City and represents the City for ,purposes of
TEFR.A approval. Approval by the Mayor satisfies both the "issuer"' TEFRA approval requirements
and the"jurisdietion"TEFRA approval requirements.
The approval of the applicable elected representative must be made "after a public hearing
following reasonable public notice." The Treasury Regulations on this topic provide that notice is
presumed reasonable if is published no fewer than 14 days before the hearing in a newspaper of
general circulation available to residents of that locality. The Authority published a notice of a public
hearing with respect to the Project and the Obligations on October 9, 2017, in The Daily .Tournal of
51'6446462
*_. . � ;
Commerce,:a.newspaper of general circulation in the City. A copy of the affidavit of ptiblication of
this notice is enclosed. The:Treasury Regulations also provide that a public hearing "means a forurri
providing a reasonable opjiortunity for interested individuals to express their views; tioth orally and in
writing, ori the proposed issue of:bonds and the loeation and nature of a proposed facility to be
financed." The Authority held a hearing regarding the proposed Obligations and the Project :on
Octobei 25, 2017. As shown in the enclosed hearing minutes; no one from the public appeared to .
present testimony or provided writteri.testimony in advance of the hearing.
Although approval;of the City is required for issuar�ce of tax-exempt qualified private activity
bonds to finanee the Project, this approval is intended solely to comply with tlie requirernents of
Section 147(� o�the Code and is not intended to irriply that the Obligations are issued on belialf of the
City, that the City has appraved the form of documents relating to the Obligations, that the City has: . .
approved underlying credit issues regarding the Project, or that the City is under any duty.or has any
responsibility for tlie payment of the Obligations or�ar fulfillment of.the Authority's or the Borrower's
obligations under documents�relating to the Project or the Plan of Finaricing.
_
`I'he Authorit res ectfull . re uests that ou execute the enclos.ed certificate indicatin our
Y p Y q Y
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approval of the issuance of the Obligations pursuant:to the Plan of Firiaricing for the Project: Please do
not hesitate to contact.:me, or our bond eourisel (Allison Scliwartzman (206) 447=5406) witli any:
,
questions or if we may be of assistance.
Sincerely,
Ma
rk Gr p i Director:
Ericl.
. � 51644646.7 . . . �
MINUTES OF PUBLIC HEARING
_
The Housing Authority of the City of Renton (the "Authority") conducted a public hearing on.. :
Wednesday, October 25,2017,at 3:00 p.m.; at the offices of the Authority located at 2900 NE l Ocn
Street, Renton, Washington..
T1ie purpose of the hearing was to corisider public testimoriy on the proposed issuance by the
Authority; pursuant to chapter 35.82 RCW arid a plan of financing witli respect to tlie project
described below (the"Project"),.of certain obligations fhe interest on wliich will be excluded from.
gross income for federai income tax purposes pursuant to Sections 103 and 142.of the Internal
_
Revenue Code of 1986; as amended.(the"Code"): '
Proj ect Description: . Finance the acquisition.and rehabilitatio.n of three
apartment complexes containing a tofal of
approximately 369 dwelling units,to provide ;
housing far low-income persons, as qualified
residential rental projects under Sectian 142(d) o
the Code �
1Vlaximum Amount of Obligations: $58,000,000 _
Proj.ect Owner/Operator: Golden Cedars LLLP, a Washirigton limited
liability limited partnership of wliich the Authority
� is the sole general partner
Project Locations: ' Golden Pines: 2901 NE l Oth Street,Renton,
Washington . .
Cedar River.Terrace: 51 Burriett Avenue S.
R.enton, Washington
Cedar Fark: 408, 432, 450,454, anci 458 Monroe
Avenue NE, Rentoi�, `3Jashi�igton
The hearing was called to order by 1Vlark Gropper of the Authority, �t 3:00 p:m. No one from the
: public appeared to present testimony; aiid no written comments were received prior to or at the
hearing. The hearing was adjourried at 3:15 p.rri.
Mark Gro per, irector
. . S 1 G44647.2 " � � � �
TEFRA PIJ�LIC FlEAR'ING
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FOS7'ER.PEPPER PLLC .
Affidadit of Publication
The undersigned,on oath states:th.at he is an authorized represenfative of The D.ai1y Journal of
Cominerce,a daily newspaper,which newspaper is a legal newspaper of general eirculation and it is now
and has been.for more than six_moinths prior to the date:of pulilication hereinafter referred to,published in ;
the Engl'ish language continuously as a daily newspaper in Seattle,King Gouilty,V✓ashington,and it is now
and during all of said time was printed in an office maintained at the aforesaid place of publication of this
newspaper.:The Daily Journal of Commerce was on the 12`h day of June, 1941,approved as a legal
newspape�•by the Superior Gourt of.King County.
The notice in the exact form annexed;was published in regular issues of`I'he Daily Journal of
Commerce,.which was regularly distributed to its subscribers during the below stated period,The annexed
notice,:a
PNPH:GOLDEN GEDARS LLLP
was publislied on
10/09/17
�,�,��'�'��4�ltt�filie�'ee charged for.the foregoing publication is Ut s,ti; ` of$ _.4 80 which ainount fias been .
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I��% A'�- e,��= �Z.�`� Subscribed and sw�,rn to before me on . •
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Affidavit of Publication
State of Washin�ton, I�ing County
NOTICE Or PUBLIC 2A hoius prior to the time of the
HEARING hearing,at(425)22G-1860.
/s/1VIaz•k Gropper,
The Housing Authority of the �xecutive Director
City oF Renton (the "Authority") Date of publication in
�vill hold a public hearing on the Seattle Daily Journal of
Wednesday, October 25, 2017,
at 3:00 m., at tlie offices of the Commerce,October 9,2017.
Authori y located at 2900 NE 10/9(354690)
lOth Street,Renton,Washington,
on the proposed issuance Uy the
AuthoLity pursuant to chapter
35,82 RCW and a plan of financ-
ing with respect to the project
described below(the"Project°)of
certain obligations the interest on
which will be excluded fi•om gross
income for f'ederal income t:�x pur-
po�es pursuant to Sections 103
and lA`L of the Internal Revenue
Code of 198G, as amended (the
"Code").
Project Description: Finance
the acquisition and rehabilitation
of three apartment complexes con-
tainin� a total of approximately
3G9 dwelling units, to provide
housing foi• low-income persons,
as qualified residential rental
projects under Section 14`L(d) of
the Code
Maximum Amount of Obliga-
tions:$68,000,000
Project Owner/Operator:Golden
Cedars LLLP,a Washington lim-
ited liability limited partnership
of which the Authority is the sole
generalpartner
Project Locations:
Golden Pines: `L�JUi NE lOth
Street,Renton,Washington
Cedar River Terrace:61 Burnett
Avenue S.Renton,Washington
Cedar Park: 408, 432, 45U,
454,and�t58 Monroe Avenue NE,
Renton,Washington
The pnblic is invited to attenc�
the hearing and present oral or
written testimony regarding the
project,or to submit written com-
ments �to the Authority at the
above address to be received no
later than the time of the hear-
ing.7'he hearin�shall conatitute
the public hearing required by
Section 1�7(f} of the Code. The
Authority iscommitted to provid-
ing equal access to individuals
with disabilities,consistent with
the Americans with Disabilities
Act and other sCate and federal
laws prohibiY,ing discriminatiion
against inclividuals with disabili-
ties.Anyone requiring an accom-
modation to participate in this
hearing or to obtain informa-
tion subject to this notice should
contact the Authority, at least