Number
13389
Version
Original
Reference
Sponsor
The Chair
Title
Resolution approving a Sale, Lease and Reconveyance Agreement for the Housing Authority of the City of Milwaukee Mortgage Properties 2015 Series A&B Bonds
Analysis
Body
WHEREAS, the Housing Authority of the City of Milwaukee (“HACM”) was created for the purpose of providing quality housing for low-income families and individuals; and
WHEREAS, the Redevelopment Authority of the City of Milwaukee (“RACM”) was created for the purpose of carrying out blight elimination and urban renewal programs and projects; and
WHEREAS, the parties previously entered into an Intergovernmental Cooperation Agreement dated as of July 26, 2006, and an Amended and Restated Intergovernmental Corporation Agreement (Expanded HACM Activities) dated January 15, 2015, providing for the development of mixed-use properties and market-rate homes by HACM; and
WHEREAS, the parties now propose to enter into a Second Amended and Restated Intergovernmental Cooperation Agreement in order to restate and expand the description of RACM’s activities in order to accommodate the transfer of certain real property owned by HACM to RACM pursuant to a separate Sale, Lease and Reconveyance Agreement (the “Sale Agreement”); and
WHEREAS, on March 2, 2015 HACM issued its (i) Multifamily Housing Revenue Bonds, Series 2015A, is the aggregate principal amount of $13,635,000 (the “Series 2015A Bonds”) and (ii) Multifamily Housing Revenue Bonds, Series 2015B (Taxable), in the aggregate principal amount of $5,410,000 (the “Series 2015B Bonds” and together with the Series 2015A Bonds the “2015 Bonds”); and
WHEREAS, proceeds from the 2015 Bonds were applied, in part, to finance certain costs of renovation and improvements to HACM’s Berryland, Northlawn, Southlawn (Vet’s) Housing Developments (the “Developments”); and
WHEREAS, on October 30, 2017 the United States Department of Housing and Urban Development (“HUD”) issued Notice PIH 2017-21 (HA) which changed certain regulations to no longer allow HACM to be both the owner and Section 8 Contract Administrator; and
WHEREAS, the only way to comply with the revised regulations is to have an entity other than HACM own the Developments and such entity must be a governmental entity, such as RACM, in order to maintain the tax-exempt status of the 2015A Bonds; and
WHEREAS, RACM has previously taken title to real property in order to facilitate revenue bond financings and is willing to enter into the Sale Agreement and to take title to the Developments in order to assist HACM in complying with the HUD regulations; now therefore, be it
RESOLVED, by the Housing Authority of the City of Milwaukee, that the proper officials are authorized to execute the attached Sale, Lease and Reconveyance Agreement (HACM 2015 Series A & B Bonds), which agreement may be modified in non-substantive ways prior to execution upon advice from the City Attorney and with approval of the Executive Director.
Requestor
Drafter
Housing Management, Michael Best & Friedrich LLP, Atty Tom Gartner, 3/31/2023