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, The Habitat Company LLC, an Illinois limited liability company ("Habitat") has proposed a certain low-income housing development project consisting of the rehabilitation of approximately one hundred and fifty-three (153) residential dwelling units and certain common areas and parking spaces in connection therewith located at 3300 West Maypole Avenue in the City and currently known as the East Park SRO Project (the "Project"); and
WHEREAS, Habitat has requested that the City issue multi-family housing revenue bonds, notes or other indebtedness in an amount not to exceed Ten Million Dollars ($10,000,000) (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 Habitat, or an entity affiliated with or related to Habitat (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 Ten Million Dollars ($10,000,000).
SECTION 3. Certain costs will be incurred by Habitat or 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 Habitat or the Borrower, which have been allocated to other purposes.
l
S:\SHARED\Finance\East Park SRO\East Park SRO Inducement Ordinance v.3.docx
. V 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. 'c'
2
S:\SHARED\Finance\East Park SRO\East Park SRO Inducement Ordinance v.3.docx
EXHIBIT "A"
City of Chicago Economic Disclosure and Affidavit The Habitat Company LLC SECTION II: DISCLOSURE OF OWNERSHIP INTERESTS
B.l
Names of all officers of limited liability company:
|
DANIEL E. LEVIN |
CHAIRMAN |
|
MATTHEW G. FIASCONE |
PRESIDENT |
|
STEPHEN F. GALLER |
EXECUTIVE VICE PRESIDENT & GENERAL COUNSEL |
|
SHEILA BYRNE |
EXECUTIVE VICE PRESIDENT / PROPERTY MANAGEMENT |
|
THOMAS H. BLACK |
SENIOR VP, ARCHITECT & DIR. OF PROJECT MANAGEMENT |
|
MICHAEL J. CARSON |
SENIOR VP & CHIEF INFORMATION OFFICER |
|
CYNTHIA DIETZ |
SENIOR VP, CORPORATE CONTROLLER & ASSET MANAGER |
|
THEODORE J. VERNER, JR. |
SENIOR VP / MARKET RATE MANAGEMENT |
|
DIANE WHITE |
SENIOR VP / CONDOMINIUM MANAGEMENT |
|
JACK DEVEDJIAN |
VICE PRESIDENT / OPERATIONS |
|
LORI FLASKA |
VICE PRESIDENT / HUMAN RESOURCES |
|
CHARLTON HAMER |
VICE PRESIDENT / PUBLIC HOUSING |
|
JEFFREY D. HEAD |
VICE PRESIDENT / COMMUNITY DEVELOPMENT GROUP |
|
BRYAN SULLIVAN |
VICE PRESIDENT / ACQUISITIONS & INVESTMENT |
|
SHANGWE PARKER |
VICE PRESIDENT / AFFORDABLE HOUSING |
|
MAUREEN VAUGHN |
VICE PRESIDENT / MARKETING & COMMUNICATIONS |
Names of all managers of limited liability company:
|
DANIEL E. LEVIN |
MANAGER |
|
MATTHEW G. FIASCONE |
MANAGER |
|
STEPHEN F. GALLER |
MANAGER |
OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL
MAYOR
April 13,2016
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 ordinance authorizing bond inducement language for the Habitat Co.
Your favorable consideration of this ordinance will be appreciated.
Mayor
Very truly yours,
CHICAGO May 18,2016
To the President and Members of the City Council:
Your Committee on Finance having had under consideration
An ordinance concerning the authority to evidence the City's intent to issue City of Chicago Multi-Family Housing Revenue Bonds (East Park SRO Project).
02016-3321
Amount of Bonds
not to exceed: $ 10,000,000
Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the Ordinance Transmitted Herewith
This recommendation was concurred in by fa viva voce^yj:
of members of the committee with dissent»g-voTe(s).
Aldermen Burke (14) abstained from voting under the provisions of Rule 14.
(sign
Respectfully submitted
Chairman