the secret things that we're going to be passing today. But Recording in progress. He did. >> He's great. >> Hey, stranger. >> How are you? >> Haven't seen you in a good 24 hours. I
know. Seriously. my company's tagline for a while. like if it was something um that seemed like it could work for us, I'd probably make some phone calls and get some better understanding. The what's interesting about their approach was that they um they have disaster money.
>> Yeah. No, that so that's how I looked at San Jose instead >> and HUD has allowed Gulf Coast communities to do stuff with money that they don't let other people do. Exactly. But the um when I pitched it today just like I'm down but you've got it Cameron and I need a little bit of leverage
which I know that is >> I just you I was thinking so I think >> I call the Charlottesville special city council meeting to order. Um Madame Clerk will you please call the role. >> Councelor Fleer
>> here. >> Vice Mayor Ashin >> here. >> Councelor Payne. Councelor Snook >> here. >> Mayor Wade >> here. Um today we have um one action item on the agenda and it's a resolution um authorizing the housing authority to
issue up to $7 million in a tax exempt um revenue bonds for Kinderwood phase three and um Miss Meetsler will present. >> Good evening Mayor Wade and
Um, I'm Maline Metsler, acting housing program manager with Neighborhood Development Services. And as the mayor mentioned, I'm presenting a resolution authorizing the Charlottesville Redevelopment and Housing Authority, or CRA to issue up to $7 million in
taxexempt revenue bonds for phase three of the Kindle Wood redevelopment project. Um, thank you for your time this evening. This item was originally scheduled for your April 20th meeting uh but was rescheduled for tonight so that we could correct the amount of the bond
uh amount that was listed in the public notice. And that correct amount is up to $7 million. Um I'll briefly review tonight what this action is, why it's needed, and what council is being asked to do. And I'm also joined here by uh Kathleen
Matthews, the deputy executive director of CRA, who can um answer any additional questions you might have at the end. And with that, I'll begin. As many of you know, Piedmont Housing Alliance, or PHA, is leading the redevelopment of Friendship Court into the new Kindlewood
community. Once completed, Kindlewood will replace the existing slash some previously existing 150 town home apartments with a 385 unit income tier neighborhood. And that will also include
resident services, a community center, a park, and an early learning center. The development has been carefully planned in phased to avoid displacing current residents. And the focus of tonight's meeting is phase three of the project, which will include 85 new units in
total. And of those, 24 will be town homes. The town homes will be financed using a combination of tax exempt bonds and low-income housing tax credits or LITC equity. Um, and for added context, the city has also uh included support
for phase three in the capital improvement program with a total of $4.15 million planned across FY27 and FY28. The CIP funding is separate from and not affected um by the bond action before you tonight.
Uh to finance the space, PHA plans to use a combination of tax exempt revenue bonds and 4% LITC credits. Um, access to those credits requires CRA to serve as what's called a conduitent issuer for the bonds. What that means in practice
is CRA would issue the $7 million in um revenue bonds on behalf of the project. Neither the city nor CRA is financially responsible for repaying these bonds. That's the when we say revenue bonds, it's the revenue from the project that will go towards repaying those bonds.
and all payments, fees, and costs are the responsibility of the borrower, which in this case is um a subsidiary of PHA that exists specifically for the development of this project. In other words, this action supports affordable housing financing, but it does not create any financial obligation for the
city or for CRA. Issuing these bonds does however unlock access to the 4% LITC um credits that are essential financing tool for this project. And this type of bond issuance is allowed under the Virginia Housing
Authorities Law. Um the specific section that is applicable is included in your packet tonight. And um under that law, the CRA is authorized as a housing authority to issue revenue bonds for affordable housing projects with council's approval ultimately. Um and
CRA's board of commissioners has already adopted its inducement resolution back on March 23rd. And the final stop is or final step is council's approval this evening. Um the city staff recommends that council adopts the resolution um that's in front of you this evening. And
again, if you have any questions, we're here to answer those for you. >> Yep. Thank you. Thank you. Um questions. Jen, you have any questions? Lloyd, did you >> I not really a question, just a comment. I I was on the PHA board for 12 years and the one thing that struck me about
all the projects we wound up doing was just how many incredibly disperate parts there are to making any of these things work. And it's just getting them all to work in perfect synchronicity is a real challenge. And this is one
instance where we may have missed one of the the opportunities, but I'm glad we're able to rectify it by coming back this week. Yes. >> Yeah. Agreed. >> Um so the it's up to seven million. Um
are these used just generally to fund the project or are they for a specific part of the project? >> They're um it as it's written it can fund really any part of it. Um, I don't know if there would be any additional restrictions placed going forward, but
as it stands today, it's just it could be anywhere from acquisition to development of associated costs with the site development. >> Okay, cool. Um, no. I second what what um councelor Snook said that we've I've learned a lot about the LITC process and
uh the capital stacking required and the just administrative um I mean onus is not even it's it's such an effort that has to go into putting all of these pieces together. So um I'm
glad we can help >> in this instance. Thank you. Michael, you have anything? >> Yeah, I mean my only question is um the
resolution that uh CRA passed was for up to 7 million. Um that was PHA's request. Um fortunately everything was able to work out and we're here today because what was um in front of council was not up to 7 million. It was a lower
incorrect dollar amount. um the deadline was April 30th. Uh there's not always a guarantee that we would be able to hold a meeting um before that deadline had passed. You know, if something happened in the future um as others mentioned,
the capital stack is very complex. So any risk is a negative thing. All of which say, you know, what what happened um where what the CRA board passed was up to 7 million. That was PHA's request. And then that was not what was in front
of us at council meeting. >> Sure. The initial request uh as I understand it from PHA to CRA was for $3.4 million that was previously in the packet. Uh that request amount changed at some point in time and it it was
correct in the packet that went to the CRA board. However, that information was not communicated to staff until the Friday before the board meeting or your council meeting, at which point it was too late already to republish those
materials. Um, which is why deputy director or deputy city manager Freeze decided to discuss it at the council meeting instead. >> Yeah. And obviously good we can be here. It was able to be solved, but um >> no guarantees in the future that that can always be the case.
>> Understood. Yeah, I think it goes with, you know, what Lord was saying is that it's a lot of moving pieces. Um but um glad we could had the flexibility to be able to do that. That being said, is there a motion to approve this um um resolution? >> So moved.
>> Second. >> Um all in favor, please say yes. >> Yes. >> All oppose, please say no. >> Um with no further business, is there a motion to adjurnn? >> So moved. >> Second. All in favor, please say yes.
All oppose, please say no. >> Thank you very much. >> Thank you. >> Doing