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, HPR Preservation Limited Partnership, an Illinois limited partnership (the "Developer") of which the general partner is HPR GP, LLC, an Illinois limited liability company whose sole member is Latin United Community Housing Association, an Illinois not-for-profit corporation ("LUCHA"), intends to acquire certain property located generally at 1152 North Christiana Avenue/3339 West Division Street and 1146 North Christiana Avenue in the City (the "Property"); and
WHEREAS, LUCHA has proposed a certain low-income housing development project on the Property consisting of the rehabilitation of one residential building and of approximately 65 residential dwelling units therein, along with associated parking (the rehabilitation and equipping of the real estate and the building and other improvements on the Property, including the residential dwelling units and associated areas in the building, shall be known as the "Project"); and
WHEREAS, LUCHA has requested that the City issue multi-family housing revenue bonds, notes or other indebtedness in an amount not to exceed $7,000,000 (the "Bonds") for the purpose of financing a portion of the Project costs; 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 ("Eligible Project Costs") 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 ofthis ordinance as though fully set forth herein.
SECTION 2. The City intends to issue the Bonds and lend all or a portion of the proceeds thereof ("Bond Proceeds") to the Developer, or to another entity affiliated with, related to, or with overlapping ownership interests in the Developer (in either case, the "Borrower"), for the purpose of financing a portion of the Project costs. The maximum principal amount of Bonds which the City intends to issue for the Project will not exceed
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$7,000,000.
SECTION 3. Certain Eligible Project Costs will be incurred by the Borrower in connection with the Project prior to the issuance of the Bonds. The City reasonably expects to reimburse such Eligible Project Costs with Bond Proceeds.
SECTION 4. The Eligible Project Costs to be reimbursed with Bond Proceeds will be paid initially from funds of the Borrower.
SECTION 5. This ordinance is consistent with the budgetary and financial circumstances of the City. No funds from sources other than Bond Proceeds are, or are reasonably expected to be, reserved, allocated on a long-term basis or otherwise set aside by the City for the Project for costs to be paid from Bond Proceeds.
SECTION 6. This ordinance constitutes a declaration of official intent 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 the City, or any 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 shali be effective as of ihe date of, its passage and approval.
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OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL MAYOR
May 23,2018
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request ofthe Commissioner of Planning and Development, I transmit herewith an ordinance authorizing the issuance of bond inducement language for HPR GP, LLC.
Your favorable consideration of this ordinance will be appreciated.
Mayor
Very truly yours,
CHICAGO June 27, 2018
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 for HPR Preservation Limited Partnership.
02018-4502
Amount of Bonds
not to exceed: $7,000,000
Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the proposed Ordinance.
This recommendation was concurred in by (awiva voce vote^)
of members of the committee with dissenting vote(s)7
Respectfully submitted
(signedX4>< n ^—
Chairman