Title
Resolution Calling Public Hearing Regarding the Proposed Issuance by the Ann Arbor Housing Commission of Tax-Exempt Bonds (Dr. Willis C. Patterson Project)
Memorandum
This resolution calls a public hearing regarding the proposed issuance by the Ann Arbor Housing Commission (the "Housing Commission") of one or more series of tax-exempt qualified 501(c)(3) bonds in a maximum aggregate principal amount not to exceed eighteen million dollars ($18,000,000) (the "Bonds") for the benefit of Ann Arbor Housing Development Corporation, a Michigan nonprofit corporation (AAHDC).
AAHDC, as a nonprofit corporation qualified under Section 501(c)(3) of the Internal Revenue Code of 1988, as amended (the "Code"), is an eligible borrower of tax-exempt bond proceeds. Bonds issued for the benefit of the AAHDC would be "qualified 501(c)(3) bonds," a category of "private activity bonds" under the Code.
The bond proceeds are expected to be loaned to AAHDC, and used to defray the cost of purchasing, acquiring, owning, improving, furnishing, equipping, and financing an approximately 114-unit multifamily residential rental housing facility known as AVIA Lofts, located at 800 Victors Way in Ann Arbor (the "Project"). The Project is intended to preserve and provide long-term low- and moderate-income rental housing subject to applicable affordability restrictions.
Due to the nature of the Bonds to be issued, certain procedural requirements and approvals are required of the City pursuant to the Code, before the Housing Commission can approve the issuance of the Bonds. Specifically, to fulfill the public approval requirements of Section 147(f) of the Code with respect to the Bonds, a public hearing must be held by the City, and notice of the public hearing must be published at least 7 calendar days in advance of the hearing. The hearing provides interested persons a reasonable opportunity to comment on the proposed issuance of the Bonds, the nature and location of the Project,...
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