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, Woodlawn Roll Up Preservation Associates Limited Partnership, an Illinois limited partnership (the "Borrower"), has proposed the rehabilitation of 16 low-income housing development projects consisting of approximately 196 total residential dwelling units and certain common areas located in the City at 6153-59 South Eberhart Avenue, 6152-58 South Eberhart Avenue, 6201-03 South Eberhart Avenue, 6157 South Evans Avenue, 6428 South Ingleside Avenue, 6323 South Ingleside Avenue, 6350-58 South Kimbark Avenue, 6418 South Maryland Avenue, 6456 South Maryland Avenue, 5615 South Prairie Avenue, 6154-56 South Rhodes Avenue, 6200-06 South Rhodes Avenue, 6153-59 South Saint Lawrence Avenue, 6156-58 South Vernon Avenue, 6200-04 South Vernon Avenue, and 6211-21 South Vernon Avenue (collectively, 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 $20,000,000 (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"); and
WHEREAS, the City reasonably expects, but is not obligated, to issue the Bonds; 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 reasonably expects 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 reasonably expects to issue for the Project will not exceed $20,000,000.
SECTION 3. Certain costs will be incurred by the Borrower, or an entity affiliated with or
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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.
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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CHICAGO March 29, 2017
To the President and Members of the City Council:
Your Committee on Finance having had under consideration
An ordinance evidencing the City's intent to issue City of Chicago Multi-Family Housing Revenue Bonds (Woodlawn Roll Up Apartments Project).
02017-1517
Amount of Bonds
Not to exceed: $20,000,000
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 vote^)
of members of the committee with dissenting vote(s).