Title
Resolution expressing the intention of the County of Lake, Illinois, to make a loan to Hebron Townhouse Apartments, LP, an Illinois limited partnership, to finance a portion of the costs of acquiring, constructing, rebuilding, improving, and extending a multifamily housing facility located in Zion, Illinois, and approving and authorizing the execution of a memorandum of agreement relating to the project.
Staff Summary
* Hebron Townhouse Apartments, located at 2705-2719 Hebron Avenue in Zion, Illinois, consists of 63, three-bedroom, townhome rental units originally constructed in the 1960s. The rental units have been eligible for Section 8 rental assistance for more than 30 years.
? Current ownership intends to sell the development to a new group of owners, who will use the funds to rehabilitate the property and maintain its affordable housing use.
? The issuance of federal tax-exempt Private Activity Bonds will benefit the public health and safety by providing adequate, decent, safe, sanitary, and affordable housing to persons within Lake County, and will also provide employment opportunities in connection with the rehabilitation and maintenance of the property.
? Private Activity Bonds are "pass-through" or "conduit" bonds rather than debt of the County. The County issues these bonds but assumes no financial liability or responsibility for issuance or repayment of the bonds. The borrower services the debt and pays any costs incurred by the County to provide this service.
? The federal Tax Code limits the volume of these bonds which may be issued in each state each year, currently $100 per capita in Illinois. State law allocates an amount to each home rule community equal to $100 multiplied by a home rule community's population.
? In the current year, the volume cap can be used for industrial projects-that is why the Private Activity Bonds are also referred to as Industrial Revenue Bonds. The volume cap can also be used for bonds to finance afforda...
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