PFA Issues $24 Million Tax-Exempt Bonds to Preserve Low Income Housing Units in Jacksonville, FL
Public Finance Authority Issues $24 Million in Tax Exempt Multifamily Housing Revenue Bonds to Preserve Low Income Multifamily Housing Projects in Jacksonville, Florida.
(Madison, WI) March 17, 2011 – The Public Finance Authority (“PFA”) recently issued $24 million in tax-exempt bonds on behalf of two multi-family affordable housing projects in Jacksonville, Florida. The transactions, which closed in late-February and early-March, will preserve hundreds of affordable housing units in the area.
Kendall Court Apartments and Lindsey Terrace Apartments provide high quality, low cost housing to low- to- moderate-income families and individuals. In total, the projects consist of 696 units in 29 3-story buildings. Residents living in the units have access to full-service amenities.
“The Public Finance Authority’s ability to provide a streamlined and predictable issuance process led to a successful collaboration with Fannie Mae in support of the issuance of tax-exempt debt on behalf of these two projects. As a result of this effort, hundreds of affordable housing units in Jacksonville have been preserved.” explained James Hamill, Program Manager, Public Finance Authority.
Skyrocketing interest rates coupled with the downturn in the market precipitated the need to refund the borrower’s outstanding bonds. PFA’s legal structure and processes enabled a bond issuance process that could not otherwise have been achieved.
“Had PFA not existed as viable issuer alternative, these transactions likely would not have gone forward and hundreds of low-income housing units in the City of Jacksonville may have been lost. Because PFA was able to step in and quickly facilitate the issuance of bonds on behalf of these two housing developments, the rents for hundreds of tenants will remain stable and quality, affordable low- and moderate-income housing stock will remain available,” said John Rood, Chief Executive Officer, The Vestcor Companies.
The Public Finance Authority, with cooperation from the city of Jacksonville, Florida and the Jacksonville Housing Finance Authority worked to secure all the required local approvals, while local government officials and the public the opportunity to review and approve the financing.
About Public Finance Authority®
Public Finance Authority® (“PFA”) is a political subdivision of the State of Wisconsin and is sponsored by the Wisconsin Counties Association, the League of Wisconsin Municipalities, the National Association of Counties and the National League of Cities. PFA provides local governments and private entities access to low-cost, tax-exempt financing for projects that promote economic development and provide public benefit. Created by local government, for local government the PFA efficiently, effectively, and reliably funds community-based public benefit projects on local governments’ behalf.