WHEREAS, the Hennepin County Housing and Redevelopment Authority (the “Issuer” or “HCHRA”) is a housing and redevelopment authority and a public body corporate and politic duly organized and existing under the Constitution and laws of the State of Minnesota; and

WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the “Housing Act”), the Issuer is authorized to carry out the public purposes described in the Housing Act by issuing revenue bonds or other obligations to finance or refinance multifamily housing developments, and as a condition to the issuance of such revenue bonds, adopt a housing program providing the information required by Section 462C.03, subdivision 1a of the Housing Act; and

WHEREAS, on February 12, 2019, the Board of Commissioners of the HCHRA (the “Board”) adopted Resolution No. 19-HCHRA-0007 approving the issuance of one or more series of multifamily housing revenue bonds or other obligations (the “Bonds”), in an aggregate principal amount not to exceed $28,800,000, under the provisions of the Housing Act, to assist in the financing of the acquisition, construction, and equipping of an approximately 223-unit multifamily rental housing development and facilities functionally related and subordinate thereto, located at 1125 Fremont Avenue N., and 1121 and 1227 12th Avenue N., Minneapolis, within Hennepin County (the “County”), to be owned and operated by Parkview Apartment Associates, LP, a Delaware limited partnership or its affiliates or assigns, for occupancy by persons and families of low and moderate income (the “Project”); and

WHEREAS, on February 12, 2019, the Board further approved the Executive Director and other officers, employees, and agents of the Issuer to participate in the preparation and review of necessary documents relating to the Project and the Bonds issued in connection therewith, including application to the State of Minnesota Department of Management and Budget (“MMB”) for allocation of bonding authority, and preparation and submission to the Metropolitan Council for its review and comments on a housing program with respect to the Project (the “Housing Program”) in accordance with the requirements of Section 462C.04, subdivision 2 of the Housing Act; and

WHEREAS, under Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), prior to the issuance of the Bonds a public hearing duly noticed must be held by the Board. Under Section 462C.04, subdivision 2 of the Housing Act, a public hearing must be held on the Housing Program after one publication of notice in a newspaper circulating generally in the County, at least 15 days before the hearing.

History: DeSola Capital, on behalf of Parkview Apartment Associates, LP, (the “Developer”), submitted an application for housing revenue bond financing to assist in the acquisition and rehabilitation of an existing housing development with 223 affordable rental units (the “Project”) in Minneapolis.

The Project contains a mix of one-bedroom and two-bedroom apartments. Two hundred twenty-two of the units will be affordable to households at or below 50 percent of area median income (AMI), as determined by the U.S. Department of Housing and Urban Development, and one unit will be affordable to households at or below 60 percent of AMI. The Project has an existing Section 8 contract for 222 of the 223 units. The developer has committed to retaining the Section 8 contract and extending the affordability period for an additional 30 years.

Resolution 19-HCHRA-0007 (adopted on February 12, 2019) granted preliminary authorization to issue up to $28.8 million in tax-exempt multifamily housing revenue bonds for the Project. At a future meeting, the HCHRA Board will consider final authorization to issue bonds. In a similar timeframe, the Hennepin County Board of Commissioners will consider a companion resolution approving the HCHRA’s action.

Current Request: This request is to establish a public hearing on Tuesday, April 16, 2019 at 1:30 p.m., or as soon thereafter as practicable, for the purpose of public comment on the issuance of tax-exempt multifamily housing revenue bonds for a project to be located at 1125 Fremont Ave N, and 1121 and 1227 12th Ave N, Minneapolis.

Impact/Outcomes: Issuance of multifamily housing revenue bonds will rehabilitate and preserve the affordability of 223 housing units, with 222 units serving households at or below 50 percent of area median income and one unit serving households at or below 60 percent of area median income.