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Record #: O2015-6173   
Type: Ordinance Status: Passed
Intro date: 7/29/2015 Current Controlling Legislative Body: Committee on Finance
Final action: 9/24/2015
Title: Bond inducement language for Lawn Terrace Preservation LP for rehabilitation of low-income senior housing at 3214 W 63rd Pl
Sponsors: Emanuel, Rahm
Attachments: 1. O2015-6173 (V1).pdf, 2. O2015-6173.pdf

ORDINANCE

 

WHEREAS, the City of Chicago (the "City"), a home rule unit of government under Section 6(a), Article VII of the 1970 Constitution of the State of Illinois, has heretofore found and does hereby find that there exists within the City a serious shortage of decent, safe and sanitary rental housing available for persons of low- and moderate-income; and

WHEREAS, the City has determined that the continuance of a shortage of affordable rental housing is harmful to the health, prosperity, economic stability and general welfare of the City; and

WHEREAS, Lawn Terrace Preservation, L.P., an Illinois limited partnership (the "Borrower") the sole general partner of which is Lawn Terrace Preservation, NFP, an Illinois not-for-profit corporation (of which Greater Southwest Development Corporation, an Illinois not-for-profit corporation is the sole member), has proposed the rehabilitation of a certain low-income senior housing development project consisting of approximately one hundred and two (102) residential dwelling units and certain common areas located at 3214 West 63rd Place in the City (the "Project"); and

 

WHEREAS, the Borrower has requested that the City issue multi-family housing revenue bonds, notes or other indebtedness in an amount not to exceed Eight Million Dollars ($8,000,000) (the "Bonds") for the purpose of financing all or a portion of the Project costs, including but not limited to the costs incurred in connection with the issuance of the Bonds; and

WHEREAS, it is intended that the interest on the Bonds will be excluded from gross income for federal income tax purposes; and

WHEREAS, it is intended that this ordinance shall constitute a declaration of intent to reimburse certain eligible expenditures for the Project made prior to the issuance of the Bonds from the proceeds of the Bonds (if and when issued) within the meaning of Section 1.150-2 of the Treasury Regulations promulgated under the Internal Revenue Code of 1986, as amended (the "Treasury Regulations"); now, therefore,

 

Be It Ordained by the City Council of the City of Chicago:

SECTION 1. The above recitals are expressly incorporated in and made a part of this ordinance as though fully set forth herein.

SECTION 2. The City intends to issue the Bonds and lend the proceeds thereof to the Borrower, or an entity affiliated with or related to the Borrower, for the purpose of financing all or a portion of the Project costs, including but not limited to the costs incurred in connection with the issuance of the Bonds. The maximum principal amount of Bonds which the City intends to issue for the Project will not exceed Eight Million Dollars ($8,000,000).

SECTION 3. Certain costs will be incurred by the Borrower, or an entity affiliated with or related to the Borrower, in connection with the Project prior to the issuance of the Bonds. The City reasonably expects to reimburse such costs with proceeds of the Bonds.

SECTION 4. The costs to be reimbursed will be paid from funds of the Borrower, or an entity affiliated with or related to the Borrower, which have been allocated to other purposes.

 

 

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SECTION 5. This ordinance is consistent with the budgetary and financial circumstances of the City. No funds from sources other than the Bonds are or are reasonably expected to be, reserved, allocated on a long-term basis or otherwise set aside by the City for the Project costs to be paid from the proceeds of the Bonds.

 

SECTION 6. This ordinance constitutes a declaration of official intent of the City with respect to the Project under Section 1.150-2 of the Treasury Regulations.

 

SECTION 7. To the extent that any ordinance, resolution, rule, order or provision of the Municipal Code of Chicago, or part thereof, is in conflict with the provisions of this ordinance, the provisions of this ordinance shall control. If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this ordinance.

 

SECTION 8. This ordinance shall be effective as of the date of its passage and approval.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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OFFICE  OF THE MAYOR

CITY OF CHICAGO

RAHM EMANUEL

MAYOR

July 29, 2015

 

 

 

 

 

 

 

 

 

 

TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO

 

 

Ladies and Gentlemen:

 

At the request of the Commissioner of Planning and Development, I transmit herewith an ordinance authorizing bond inducement language for Lawn Terrace Preservation, LP.

 

Your favorable consideration of this ordinance will be appreciated.

Mayor

 

Very truly yours,

 

CHICAGO September 24, 2015

To the President and Members of the City Council:

Your Committee on Finance having had under consideration

An ordinance which would evidence the City's intent to issue City of Chicago Multi-Family Housing Revenue Bonds (The Lawn Terrace Preservation Project).

 

02015-6173

 

Amount of Bonds

not to exceed: $8,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the proposed Ordinance Transmitted Herewith

 

This recommendation was concurred in by                     (a (viva voce votej)

of members of the committee with                     dissenting vote(s):                     

 

Alderman Burke abstains pursuant to the provisions of Rule 14.

Chairman

 

 

Respectfully submitted

 

 

OVED

APPROVED

 

 

Mayor