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[250 of the 252] apartment units as follows: (i) 26 of the units in the Project to tenants whose household
incomes do not exceed 40% of AMI; (ii) 124 of the units in the Project to tenants whose household incomes
do not exceed 50% of AMI; and (iii) 100 of the units in the Project to tenants whose household incomes do
not exceed 60% of AMI.
In connection with the GRRP Loan (as defined herein) such financing arrangement was awarded
to the Borrower via the GRRP Program through HUD. The Borrower will execute a GRRP Use Agreement
further restricting the affordability of the Project until August 28, 2049, requiring that 100% of units be
reserved exclusively for Low-Income Families (as defined therein), and restricting rents for such units to
30% of 80% of applicable AMI. See “THE PROJECT AND THE PRIVATE PARTICIPANTS –
Regulatory Restrictions” herein.
Simultaneously with the closing of the FHA Insured Mortgage Loan, the Borrower will execute a
Regulatory Agreement for Multifamily Projects required by FHA (the “HUD Regulatory Agreement”) with
respect to the Project in order to provide for, among other things, a reserve fund for replacements, as well
as escrows for taxes, insurance and mortgage insurance premiums, which will be held by the FHA Lender.
In the event of conflict between the provisions of the Note (Multistate) (the “FHA Note”) secured by a first-
lien priority Multifamily Mortgage, Security Agreement, Assignment of Rents, and Fixture Filing
(Virginia) (the “FHA Mortgage”) on the Project, the HUD Regulatory Agreement and certain other
documents required by FHA or the FHA Lender (collectively, the “FHA Loan Documents”) and the
Indenture, the Loan Agreement, the Promissory Note or the Regulatory Agreement, the FHA Loan
Documents will control.
Brief descriptions of the Issuer, the Bonds, the security for the Bonds, the Borrower, the Project,
the private participants, the Indenture, the Loan Agreement and the Regulatory Agreement, are included in
this Official Statement. All references herein to the Indenture, the Loan Agreement, the Regulatory
Agreement and other documents and agreements are qualified in their entirety by reference to such
documents and agreements, copies of which are available for inspection at the offices of the Trustee.
THE ISSUER
The following information has been provided by the Issuer for use herein. While the
information is believed to be reliable, none of the Trustee, the Borrower, the Underwriter, the Senior
Lender nor any of their respective counsel, members, officers or employees make any representations
as to the accuracy or sufficiency of such information.
The Issuer was created by an ordinance adopted by the City Council of the City of Newport
News, Virginia (the “City Council”) to promote and further the purposes of the Act. The Issuer is a
political subdivision of the Commonwealth of Virginia governed by seven commissioners appointed
by the City Council. The Issuer is empowered, among other things, to borrow money and issue evidence
of indebtedness in the name of and for the use of the Issuer, to issue bonds and give security therefor
and to make loans for assistance in housing rehabilitation by private sponsors. The Bonds will be limited
obligations of the Issuer payable solely from the Trust Estate pledge pursuant to the Indenture. The
Issuer has no taxing power.
Thaddeus Holloman is the Chair of the Issuer. Lysandra M. Shaw is the Executive Director of
the Issuer and also serves as its Secretary. The terms of the Chair and the Executive Director and
Secretary each expire on the first meeting of the year of the Issuer on January 19, 2027. The members
of the Board of Commissioners of the Issuer and the expiration dates of their respective terms as
commissioners are set forth below:
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