City of Milwaukee - File #: R13494

• File #: R13494
• Version: 0
• Type: Housing Authority Resolution
• Status: Passed
• File created: 8/8/2024
• In control: HOUSING AUTHORITY
• On agenda: 8/14/2024
• Final action: 8/14/2024
• Title: Resolution approving the Housing Authority of the City of Milwaukee to take all actions necessary in connection with the rehabilitation and restructuring of Highland Gardens including serving as Guarantor for all loans and tax credit investments related thereto and as Developer for Highland Gardens
• Sponsors: THE CHAIR

Date	Ver.	Action By	Action	Result	Tally
8/14/2024	0	HOUSING AUTHORITY	ADOPTED; Minutes note: Fernando Aniban, HACM’s Assistant Secretary, summarized the documents provided with the agenda including the attached resolutions for the two LLCs, Highland Gardens Development and Highland Park Development. He stated that this resolution gives the Executive Director authority to sign all documents in connection with the refinancing and rehabilitation of Highland Gardens. Mr. Aniban explained that Highland Gardens is a 114-unit property that is a new RAD conversion project which has completed its 15-year tax credit compliance period. Mr. Aniban stated that the refinancing will go toward two new elevators, replacement of carpets with life-proof vinyl flooring, window repairs, and other items that have been deferred for some time. He pointed out that PNC will be the federal investor and Sugar Creek Capital will be the state tax credit investor for this project. WHEDA will be providing construction financing and a permanent loan on the project. The project's total development cost is $25.3 million. Mr. Aniban noted that, pending HUD approval, HACM is expected to close on this loan on September 2nd. Commissioners discussed timelines for the closing date, interest rates for the loan, and the relocation of residents during the rehabilitation of the units.	Pass	4:0

Number
13494

Version
Original

Reference

Sponsor
The Chair

Title
Resolution approving the Housing Authority of the City of Milwaukee to take all actions necessary in connection with the rehabilitation and restructuring of Highland Gardens including serving as Guarantor for all loans and tax credit investments related thereto and as Developer for Highland Gardens

Analysis

Body
The following resolutions were duly adopted by the Board of Commissioners of the Housing Authority of the City of Milwaukee, a Wisconsin public body corporate and politic (“HACM”), at a meeting held on August 14th, 2024, which meeting was duly called and at which a quorum was present:

WHEREAS, Highland Gardens is a 114-unit residential housing development with other ancillary improvements (the “Project”) currently owned by Highland Park Community, LLC, a Wisconsin limited liability company (“HPC”);

Whereas, the Project is subject to that certain RAD Use Agreement dated April 16, 2018 (the “RAD Use Agreement”) that was entered into by and among HPC, HACM, and the U.S. Department of Housing and Urban Development (“HUD”);

WHEREAS, the Project is subject to a RAD Project Based Voucher Housing Assistance Payment contract (the “RAD HAP”) and a Project-Based Voucher Housing Assistance contract (“PBV HAP” and together with RAD HAP, the “HAP Contracts”), dated June 1, 2018;

WHEREAS, HACM is the sole member and manager of Highland Park Development, LLC, a Wisconsin limited liability company (“HP Development”). HP Development is the manager of HPC, the current owner of the Project;

WHEREAS, pursuant to Resolution R13432, HACM, authorized, among other things, the refinancing and rehabilitation of the Project and the formation of a new owner of the Project;

WHEREAS, in furtherance of the Project and pursuant to Articles of Organization, filed on July 11, 2023, with the State of Wisconsin Department of Financial Institutions; Highland Gardens LLC, a Wisconsin limited liability compa...