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Town of Chapel Hill Executive Summary |
Meeting Date: 10-15-2008 AGENDA #8 |
Title of Agenda Item: Council Committee for Affordable Housing recommendation concerning a Tax Exempt Financing Proposal for the Redevelopment of Timberlyne Apartments
Background: Town Staff has been contacted by representatives of Related Companies, L.P., a firm that develops, manages and finances affordable apartment complexes, concerning a proposal to redevelop the Timberlyne Apartments. The proposed acquisition and rehabilitation would be financed through a combination of tax exempt bonds and federal low income housing tax credits. The tax exempt bond portion of the financing would require that the bonds be issued in the name of the Town of Chapel Hill using a pass-thru or conduit type arrangement. As a “conduit-issuer” the Town would have no obligation for payments on the bonds. The Council Committee for Affordable Housing met with town staff, bond counsel and representatives from the developer on September 18, 2008 and September 25, 2008 to review the proposal.
The committee generally endorsed the proposal and recommends that the Council take the next step to permit the proposal to be considered further by adopting the accompanying inducement resolution. This resolution states the Town’s general agreement to continue the bond financing process. This resolution is required for the developer to make a complete application to the North Carolina Housing Finance Agency for its required approval of bond financing of the project. The issuance of the bonds would be subject to (among other matters) final Council approval after a public hearing and the approval of the North Carolina Local Government Commission. [See attached Council Committee memorandum for further details.]
Staff Recommendation(s): In accordance with the recommendation of the Council Committee for Affordable Housing, staff recommends adoption of the resolution giving preliminary approval to issuance of multi-family housing revenue bonds.
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