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To approve the issuance by the Richmond Redevelopment and Housing Authority of its multifamily housing revenue bonds in an amount up to $46,000,000.00 for the acquisition, construction, and equipping of the approximately 128-unit Walmsley Senior Apartments and the approximately 216-unit Walmsley Gardens Apartments multifamily housing facilities located at 4824 Walmsley Boulevard, 4838 Walmsley Boulevard, 4850 Walmsley Boulevard, 4870 Walmsley Boulevard, and 4890 Walmsley Boulevard in the city of Richmond. (9th District)
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WHEREAS, the Richmond Redevelopment and Housing Authority (the “Authority”) is authorized to advertise and hold public hearings relative to the issuance of private activity bonds; and;
WHEREAS, the Authority has considered the applications of (i) Walmsley Senior, LLC (the “Walmsley Senior Borrower”) requesting that the Authority issue its revenue bonds (the “Walmsley Senior Bonds”) in a maximum stated principal amount of $15,000,000 to finance or refinance a portion of (a) the costs of acquiring, constructing and equipping a multifamily residential rental housing project for seniors consisting of one building containing approximately 128 units (the “Walmsley Senior Project”), (b) the funding of reserve funds as permitted by applicable law and (c) the costs incurred in connection with the issuance of the Walmsley Senior Bonds (collectively, the “Walmsley Senior Plan of Finance”), and (ii) Walmsley Gardens, LLC (the “Walmsley Family Borrower,” and, together with the Walmsley Senior Borrower, the “Borrowers”) requesting that the Authority issue its revenue bonds in a maximum stated principal amount of $31,000,000 (the “Walmsley Family Bonds,” and, together with the Walmsley Senior Bonds, the “Bonds”) to finance or refinance a portion of (a) the costs of acquiring, constructing and equipping a multifamily residential rental housing project for families consisting of nine buildings containing approximately 216 units (the “Walmsley Family Project,” and, together with the Walmsley Senior Project, the “Projects”), (b) the funding of reserve funds as permitted by applicable law and (c) the costs incurred in connection with the issuance of the Walmsley Family Bonds (collectively, the “Walmsley Family Plan of Finance,” and, together with the Walmsley Senior Plan of Finance, the “Plans of Finance”), and has held public hearings in connection therewith (the “Public Hearings”); and
WHEREAS, the Projects shall be established and maintained as a “qualified residential rental projects” within the meaning of Section 142(d) of the Internal Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, Section 147(f) of the Code provides that the applicable elected representatives of the governmental unit having jurisdiction over the issuer of private activity bonds and over the area in which any facility financed with the proceeds of private activity bonds is located must approve the issuance of such bonds; and
WHEREAS, the Authority issues its bonds on behalf of the City of Richmond, Virginia (the “City”) and the Projects are located in the City; and
WHEREAS, the Authority, as the issuing governmental unit with respect to the Bonds, has no applicable elected representative, the City constitutes the next highest governmental unit with such a representative, and the members of the City Council of the City (the “Council”) constitute the applicable elected representatives of the City; and
WHEREAS, the Authority has recommended that the Council approve the issuances of the Bonds; and
WHEREAS, a copy of the Authority’s resolution approving the issuances of the Bonds, a certificate of the Public Hearings and a summary of the statements expressed at the Public Hearings have been filed with the Council;
NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
1. That the Council approves the issuances of the Bonds by the Authority, in one or more series at one time or from time to time, in an aggregate maximum stated principal amount of $15,000,000 for the benefit of the Walmsley Senior Borrower or a party related to the Walmsley Senior Borrower, and in an aggregate maximum stated principal amount of $31,000,000 for the benefit of the Walmsley Family Borrower or a party related to the Walmsley Family Borrower, as required by Section 147(f) of the Code, Section 15.2-4906, as applicable to housing authorities, of the Code of Virginia of 1950, as amended (the “Virginia Code”) and Section 36-19(9) of the Virginia Code to permit the Authority to assist in the financing of the Plans of Finance.
2. That the approval of the issuances of the Bonds does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Plans of Finance or the Borrowers.
3. That the Bonds shall provide that neither the City nor the Authority shall be obligated to pay the Bonds or the interest thereon or other costs incident thereto except from the revenues and monies pledged thereto and that neither the faith and credit nor the taxing power of the City or the Authority is pledged to the payment of the principal of the Bonds or the interest thereon or other costs incident thereto.
4. That, in adopting this resolution, the City, including its elected representatives, officers, employees and agents, shall not be liable for, and hereby disclaim all liability for, any damages to any person, direct or consequential, resulting from the Authority’s failure to issue the Bonds for any reason.
5. This resolution shall take effect immediately upon its adoption.