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Record #: O2016-3321   
Type: Ordinance Status: Passed
Intro date: 4/13/2016 Current Controlling Legislative Body: Committee on Finance
Final action: 5/18/2016
Title: Declaration of official intent to issue multi-family housing revenue bonds for Habitat Company LLC for rehabilitation of low-income housing project at 3300 W Maypole Ave
Sponsors: Emanuel, Rahm
Attachments: 1. O2016-3321.pdf, 2. O2016-3321 (V1).pdf

A

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, 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.

 

 

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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