AGENDA CAPTION:
Title
Consider approval of Resolution 2024-198R, approving the reissuance of revenue bonds in a principal amount not to exceed $25,550,000.00 by the New Hope Cultural Education Facilities Finance Corporation for a residential senior living project known as the Villas Del San Xavier Senior Residences and located at 2621 South 1-35 in San Marcos; and declaring an effective date.
Body
Meeting date: October 2, 2024
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: October 16, 2018, approved Resolution 2018-198R supporting the submission of an application for Low Income Housing Tax Credits to the Texas Department of Housing and Community Affairs (TDHCA). December 19, 2018, approved Resolution 2018-238R, which was in the format required by TDHCA since the project would be seeking tax-exempt bonds. November 19, 2019, approved Resolution 2019-239R, approving the issuance of revenue bonds in an amount not to exceed $25,000,000. February 24, 2021, approved Resolution 2021-39R, approving the issuance of revenue bonds in an amount not to exceed $30,000,000. September 17, 2024, approved Resolution 2024-185R, approving a public hearing for the reissuance of revenue bonds.
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Background Information:
For private activity bonds such as the bonds providing the financing for the Villas Del San Xavier Senior Residences, Section 147(f) of the Internal Revenue Code requires the approval of the bonds by the issuer, New Hope Cultural Education Facilities Finance Corporation, and the governmental unit having jurisdiction over the area where the project is located, City of San Marcos, in order for the bonds to be tax exempt.
At the September 17, 2024 City Council meeting, City Council approved a public hearing on the proposed reissuance of bonds. A notice of the public hearing was published on September 22, 2024 in the San Marcos Daily Record and the public hearing was held September 30, 2024. Minutes of the public hearing will be provided prior to the City Council meeting on October 2, 2024.
The reissuance of the bonds is to refinance the costs of the project from construction to permanent financing, and the terms of the bonds stay the same. The principal amount of the reissuance is capped at $25,550,000. The City has no financial responsibility for repayment of the bonds and is not involved in the bond reissuance.
Council Committee, Board/Commission Action:
N/A
Alternatives:
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Recommendation:
City Council approve the reissuance of revenue bonds in a principal amount not to exceed $25,550,000 by the New Hope Cultural Education Facilities Finance Corporation for the Villas Del San Xavier Senior Residences project.