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OFFICIAL STATEMENT
$24,000,000 *
NEWPORT NEWS REDEVELOPMENT AND HOUSING AUTHORITY
MULTIFAMILY HOUSING REVENUE BONDS
(STUART GARDENS II APARTMENTS)
SERIES 2026
INTRODUCTION
This Official Statement, including the Appendices, is furnished in connection with the original
issuance and sale by the Newport News Redevelopment and Housing Authority (the “Issuer”) of the Bonds
identified on the cover page (the “Bonds”). The Bonds are being issued by the Issuer pursuant to an
Indenture of Trust (the “Indenture”), dated as of July 1, 2026, between the Issuer and U.S. Bank Trust
Company, National Association, as Trustee (the “Trustee”). The Trustee is expected to also serve as
Registrar. Capitalized terms used but not otherwise defined herein are defined in Appendix A.
The Issuer will loan the proceeds of the sale of the Bonds (the “Loan”) to Stuart Gardens II Housing
Partners, LP, a Virginia limited partnership (the “Borrower”), pursuant to a Loan Agreement (the “Loan
Agreement”), dated as of July 1, 2026, between the Issuer and the Borrower to finance the costs of the
renovation, rehabilitation, construction, improvement and equipping of the multifamily rental housing
facility consisting of approximately 239 rental units and related facilities and located in Newport News,
Virginia (the “Project”), to be owned by an affiliate of the Borrower. See “THE PROJECT AND THE
PRIVATE PARTICIPANTS” herein. Pursuant to the Loan Agreement, the Borrower has agreed to make
payments to the Issuer in amounts sufficient to pay the principal of and interest on the Bonds when due (the
“Bond Debt Service Charges”) to the extent that amounts otherwise available for such payment are
insufficient therefor. The Loan will be secured and evidenced by a promissory note in the principal amount
of $24,000,000* (the “Promissory Note”) from the Borrower to the Issuer, and assigned by the Issuer to the
Trustee. The Loan Agreement, except for Unassigned Issuer’s Rights and the Promissory Note will be
assigned without recourse by the Issuer to the Trustee.
Simultaneously with the issuance of the Bonds, the Borrower will obtain a mortgage loan (the
“FHA Insured Mortgage Loan”) from Merchants Capital Corp., an Indiana corporation (the “FHA
Lender”), which FHA Insured Mortgage Loan will be insured by the Federal Housing Administration
(“FHA”) under Section 221(d)(4) of the National Housing Act of 1934, as amended, and applicable
regulations promulgated thereunder. Subject to the conditions set forth in the FHA Loan Documents (as
such term is defined below), at the time of closing of the Bonds and from time to time thereafter, Available
Money, including, without limitation, FHA Lender Funds, in the aggregate amount of $24,000,000* will
be advanced to the Trustee for deposit into the Collateral Fund to enable the Trustee to disburse an
equivalent amount of Bond proceeds from the Project Fund. See “SECURITY AND SOURCES OF
PAYMENT FOR THE BONDS” herein. None of the owners of the Bonds, the Trustee or the Issuer will
have rights with respect to the FHA Insured Mortgage Loan or under the FHA Loan Documents.
Furthermore, none of the owners of the Bonds, the Trustee or the Issuer will have a lien on any funds,
accounts or reserves established, maintained and/or collected by the FHA Lender in connection with the
FHA Insured Mortgage Loan. FHA does not provide enhancement with respect to the Loan or the Bonds.
The aggregate funds on deposit in the Project Fund and the Collateral Fund, together with the Initial
Deposit to the Interest Account of the Bond Fund, if any, as invested pursuant to the Indenture, have been
calculated to be sufficient to pay, at all times, principal and interest on the Bonds as and when they become
due to the Initial Mandatory Tender Date. Interest on the Bonds will be paid from amounts on deposit in
* Preliminary; subject to change.Jump to an indexed page (744 of 744)