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Resolution Providing Approval of the Reissuance of a $13,600,000 (Starway Village II) Multifamily Housing Revenue Note Issued to Finance a Multifamily Housing Facility Known as Starway Village Phase II in the City of Wilmington, North Carolina
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Department: |
City Attorney’s Office |
Meeting Date: |
9/22/2026 |
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Contact Name: |
Meredith T. Everhart |
Public Hearing: |
No |
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Contact Phone: |
910-341-7820 |
Advertising Date/Advertised By: |
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Attachments: |
Attachment #1: Resolution, Attachment #2: Certificate and Summary of Public Hearing, Attachment #3: 7/18/2023 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:
There are two proposed resolutions included in the agenda approving the reissuance of revenue notes which financed the acquisition, rehabilitation, and equipping of multifamily residential properties at Starway Village.
The first is for approximately 176 units of multifamily residential property known as Starway Village - Phase I in the City of Wilmington, and the reissuance of notes financing the development with the proposed reissuance by the Wilmington Housing Authority ("WHA" or "Issuer"), in an amount not to exceed $23,500,000, in multifamily housing revenue bonds ("Bonds").
The second is for approximately 102 units of multifamily residential property known as Starway Village - Phase II in the City of Wilmington, and the reissuance of notes financing the development with the proposed reissuance by the Wilmington Housing Authority ("WHA" or "Issuer"), in an amount not to exceed $13,600,000, in multifamily housing revenue bonds ("Bonds").
The City was contacted by McGuireWoods, LLP, serving as bond counsel to WHA, requesting approval from the Wilmington City Council for the reissuance of the above referenced bonds. Federal tax law requires that tax-exempt bonds issued to finance affordable housing be approved by both the Issuer and the governmental unit having jurisdiction over the area in which the facility is to be located, after holding a public hearing (Internal Revenue Code Section 147(f)). WHA is the issuer of the Bonds, and the proposed facilities are within the jurisdiction of the City.
WHA, at the request of Starway Village I, LLC and Starway Village II, LLC, both North Carolina limited liability companies ("Company"), proposes to reissue the Bonds previously made to finance the acquisition, rehabilitation, and equipping of two affordable multifamily residential rental facilities known as Starway Village - Phase I and Starway Village - Phase II, which are both located in Wilmington, New Hanover County, North Carolina (the "Development"). WHA and the Companies have requested the City to approve the reissuance of the Bonds for purposes of Section 147(f) of the Internal Revenue Code.
The Companies will agree to repay the principal, premium, if any, and interest on the Bonds. Neither WHA, nor the City, will have any liability whatsoever for the payment of principal or interest on the Bonds, and the Bonds will not affect the City’s debt ratios or legal debt limit. Because no taxes or other revenues of the City are pledged to pay these Bonds, the staff of the City has made no financial analysis of the Bonds, the Companies, or the Developments.
A public hearing with respect to the reissuance of the Bonds by WHA and the Development was held by the Authority on August 4, 2026.
budget
BUDGET IMPACT:
N/A
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of the Resolution is recommended.