CITY OF SEATTLE
COUNCIL BILL __________________
AN ORDINANCE relating to the financing of affordable housing; authorizing the loan of funds in the amount of $29,000,000 from the Low-Income Housing Fund to the 2018 Multipurpose LTGO Bond Fund for bridge financing of affordable housing.
WHEREAS, through Ordinance 125197, adopted November 21, 2017, the Council authorized $29,000,000 of limited tax general obligation (LTGO) bond financing for eligible affordable housing projects; and
WHEREAS, Council provided $29,000,000 of appropriation authority in the 2017 Adopted Budget for the Low-Income Housing Fund for affordable housing projects financed by the authorized LTGO bond proceeds; and
WHEREAS, Ordinance 125197 authorized the Executive to issue bonds for the stated purposes anytime within a three-year window; and
WHEREAS, the Office of Housing might require bridge financing to fund approved affordable housing projects or programs in advance of the LTGO bond issuance in 2018; and
WHEREAS, Seattle Municipal Code subsection 5.06.030.C requires City Council approval by ordinance of any interfund loan for a duration of more than 90 days; and
WHEREAS, in the normal course of business the City may temporarily lend cash between funds to maintain required balances; and
WHEREAS, the Director of Finance and the City Budget Director have determined that this interfund loan request is consistent with the Debt Management Policies adopted by Resolution 31553; and
WHEREAS, there is sufficient cash in the Low-Income Housing Fund to support an interfund loan of up to $29,000,000 through the end of 2018 and still meet regular budgeted operating needs; and
WHEREAS, funds loaned by the Low-Income Housing Fund to the 2018 Multipurpose LTGO Bond Fund for the purpose of bridge financing of affordable housing project(s) are anticipated to be repaid from the proceeds of the sale of LTGO bonds in 2018; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. The Director of Finance is authorized to make a non-revolving loan of up to $29,000,000 principal and interest outstanding from the Low-Income Housing Fund to the 2018 Multipurpose LTGO Bond Fund, created by the ordinance introduced as Council Bill ________, to provide bridge financing for affordable housing programs or projects that will be financed by authorized limited tax general obligation (LTGO) bond proceeds. The loan is to be repaid by no later than December 31, 2018 with interest on the loan at the rate of return of the City’s Consolidated (Cash) Pool. The entire principal and interest amount of the loan drawn shall be repaid with proceeds from the sale of LTGO bonds issued in 2018.
Section 2. The Director of the Office of Housing is authorized to draw amounts up to the total loan amount, subject to prior review and approval by City officials and bond counsel, as necessary to confirm the affordable housing programs or projects are eligible to be financed by LTGO bond proceeds. The Office of Housing shall provide a report on approved projects funded by this interfund loan to the Council’s Affordable Housing, Neighborhoods, and Finance Committee (or successor committee).
Section 3. The Director of Finance may effectuate the loan authorized in Section 1 by transferring cash from one or more subfunds of the Low-Income Housing Fund to the 2018 Multipurpose LTGO Bond Fund, or by carrying the 2018 Multipurpose LTGO Bond Fund in a negative cash position, in an amount not to exceed $29,000,000 until no later than December 31, 2018 or until repayment with proceeds from the sale of LTGO bonds in 2018, whichever is earlier.
Section 4. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020.
Passed by the City Council the ________ day of _________________________, 2017, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2017.
President ____________ of the City Council
Approved by me this ________ day of _________________________, 2017.
Edward B. Murray, Mayor
Filed by me this ________ day of _________________________, 2017.
Monica Martinez Simmons, City Clerk