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5lo
Newport News Redevelopment and Housing Authority
Memorandum
Date: April 15, 2025
To: All Members, Board of Commissioners
From: Lysandra M. Shaw fre
Executive Director |
Subject: Multifamily Housing Revenue Bonds Issuance Request for Stuart Gardens
Phases | and II
Stuart Gardens Housing Partners, LP and Stuart Gardens II Housing Partners LP have
applied to the Newport News Redevelopment and Housing Authority (NNRHA) for the
issuance of multifamily housing revenue bonds not to exceed $93,000,000. The proceeds
from the sale of these bonds would be used to finance the acquisition, rehabilitation, and
equipping of a total of 491 affordable housing units located at 1326C Garden Drive in two
separate/contiguous projects containing 252 and 239 units on two parcels of land
containing 21.15 acres and 18.98 acres of land, respectively. These projects are currently
known as Stuart Gardens Phases | and II.
Approximately two (2) years ago ,the developer approached NNRHA and the City for
approval of this project. At that time the City administration was not in favor of the
issuance of the bonds in large part because income restrictions are placed on the property
for an additional fifteen (15) years. The City administration sees this as a never ending
extension of the restrictions, which would prevent the property from becoming a market
rate rent property.
For your consideration, the inducement resolution is attached. Representatives of the
purchasers will attend virtually to present the proposed financing plan and the overall
development and to respond to questions.
It is important to note that all fees and costs related to this bond issue will be the
Borrower's responsibility and neither NNRHA nor its Board will be liable in any way for
this debt.
As you may recall, the City recently conducted a housing study and has not yet extended
its support for this project, pending the development of housing policies aligned with the
City鈥檚 future housing needs.
NNRHA is not providing a recommendation to the Board.
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