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Resolution Providing Approval for the Wilmington Housing Authority’s Financing of a Multifamily Housing Facility to be Known as Avenue Flats in the City of Wilmington, North Carolina, with Multifamily Housing Revenue Bonds in an Amount Not to Exceed $28,000,000
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Department: |
City Attorney |
Meeting Date: |
8/5/2025 |
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Contact Name: |
Meredith Everhart |
Public Hearing: |
No |
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Contact Phone: |
910-343-3629 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution |
PURPOSE:
The purpose of this resolution is to provide statutorily required approval by the City for the Wilmington Housing Authority to issue housing revenue bonds.
BACKGROUND:
The Housing Authority of the City of Wilmington, North Carolina (“WHA” or the “Issuer”) has tentatively agreed to issue its multifamily housing revenue bonds in an amount not to exceed $28,000,000 (the “Bonds”), for the purpose of financing the acquisition, construction, and equipping by BRAD Avenue Flats, LLC, a North Carolina limited liability company, or an affiliated or related entity (the “Borrower”), of a qualified residential rental project to be known as Avenue Flats (the “Development”). The Development will consist of approximately 184 units and be located at 507 South Kerr Avenue, Wilmington, North Carolina.
Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), requires that any bonds issued by the Issuer for the Development may only be issued after approval of the plan of financing by the City Council of the City, following a public hearing by the Issuer with respect to such plan. On July 1, 2025, the Issuer held a public hearing with respect to the issuance of the Bonds to finance, in part, and has requested the City Council approve the issuance of the Bonds, as required by the Code.
The City has determined that approval of the issuance of the Bonds is solely to satisfy the requirement of Section 147(f) of the Code and shall in no event constitute an endorsement of the Bonds or the Development or the creditworthiness of the Borrower, nor shall such approval in any event be construed to obligate the City of Wilmington, North Carolina for the payment of the principal of or premium or interest on the Bonds or for the performance of any pledge, mortgage or obligation or agreement of any kind whatsoever which may be undertaken by the Issuer, or to constitute the Bonds or any of the agreements or obligations of the Issuer an indebtedness of the City of Wilmington, North Carolina, within the meaning of any constitutional or statutory provision whatsoever.
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BUDGET IMPACT:
N/A
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RECOMMENDATION / ACTION REQUESTED:
Passage of the Resolution is recommended.