BACKGROUND

By State Statute, the Village of Arlington Heights must either utilize, reserve, or cede its 2015 tax exempt private activity bond volume cap by May 1, 2015, or the authority to allocate the bond volume cap will revert to the State of Illinois.

Stern Brothers & Co. is working with Village of Justice and Waterton Associates, LLC, a developer of affordable multifamily housing, to acquire and renovate an affordable housing project in Justice, Illinois. The project, The Laurels Apartments, is a 550-unit apartment complex which services the need for affordable housing in and around Justice.

Toward that end, Stern Brothers & Co. is requesting that the Village of Arlington Heights transfer its $7,599,000 in 2015 volume cap to Stern Brothers & Co. for the above described project. Stern Brothers & Co. will compensate the Village of Arlington Heights a fee of $75,994 (1% for the volume cap amount) for the transfer of the volume cap. The Village will be paid for the bond cap upon the passage of the ordinance regarding this transfer.

As per Village Ordinance 13-037, the $75,994 will be deposited into the Village of Arlington Heights’ Affordable Housing Trust Fund unless other wise directed by the Village Board.

RECOMMENDATION

It is recommended that the Village Board adopt the attached ordinance approving the transfer of $7,599,000 in Illinois private activity bond volume cap for 2015 to Stern Brothers & Co. for the financing of an affordable multifamily housing project in the Village of Justice, Illinois under the condition that the Village receives a $75,994 transfer fee upon the passage of this ordinance and on or before the transfer of the volume cap.