STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: January 22, 2025
COUNCIL DISTRICT(S): 6, 11
DEPARTMENT: Office of Government Affairs
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
Title
A public hearing to receive comments concerning the issuance of tax-exempt revenue bonds in an amount not to exceed $152,000,000.00 by Public Finance Authority for the benefit of AIDS Healthcare Foundation to finance the cost of acquisition, construction and equipping of (i) a multifamily apartment building and related amenities to be located at 2330 W Northwest Highway, Dallas, Texas 75220 and (ii) a multifamily apartment building and related amenities to be located at 8051 Lyndon B Johnson Freeway, Dallas, Texas 75251, as required by 147(f) of the Internal Revenue Code of 1986, as amended (Code); and at the close of the public hearing consider host approval of a resolution authorizing the issuance of bonds as required by Section 147(f) of the Code - Financing: No cost consideration to the City (see Fiscal Information)
Body
BACKGROUND
AIDS Healthcare Foundation (“AHF” or the “Borrower”), a California nonprofit public benefit corporation as described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), has requested that the Public Finance Authority (the “Authority”), issue one or more series of its tax-exempt revenue bonds and/or taxable revenue bonds in an aggregate principal amount not to exceed $152,000,000.00 (“Bonds”) for the purpose of financing, refinancing, and/or reimbursing the cost of acquisition, construction, improvement, rehabilitation, equipping and furnishing various capital facilities in the state of Florida, the city of Dallas, the city of Gardena, California, and the city of Los Angeles, California. For the facilities located within the city of Dallas (the “City”), Section 147(f) of the Code requires that in order for the bonds to be tax-exempt, after a public hearing following reasonable public notice of the proposed bond issuance, the City Council, as the applicable elected representative of the city of Dallas, must approve the bond issuance by the Authority.
Approval of the City is for the sole purpose of satisfying the conditions and requirements of Section 147(f) of the Code and is not to be construed as an undertaking by the City. That is, the Bonds are not issued by, or on behalf of, the City. The Bonds shall not, therefore, constitute a City liability, indebtedness, or obligation, nor shall any City revenues or assets be pledged to pay the Bonds. The City’s name will not appear on the Bonds. City staff has not reviewed any documents related to Bond issuance. The Bonds shall specifically provide that the Bonds are not a debt of the City of Dallas, Dallas County or the State of Texas and that the City of Dallas, Dallas County and State of Texas are not liable with respect to the Bonds
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
No cost consideration to the City.