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5D
NEWPORT NEWS REDEVELOPMENT AND HOUSING AUTHORITY
MEMORANDUM
DATE: August 18, 2026
TO: All Members, Board of Commissioners
FROM: Lysandra M. Shaw, Executive Director View
SUBJECT: Resolution — Authorization for Execution of Bond Loan Forbearance and
Permanent Financing Documents for Choice Neighborhood IV-R
Choice Neighborhood IV-R, now part of the community known as Legacy Landing,
consists of 84 mixed-income units. The Newport News Redevelopment and Housing
Authority (NNRHA) is a shareholder of the managing member corporation that manages
the limited liability company owning the property.
JPMorgan Chase Bank, N.A. initially financed the project through an approximately $16.3
million construction loan funded by tax-exempt bonds issued by NNRHA. The loan is
secured by various documents, including notes, deeds of trust, security agreements, and
related modifications recorded in the official city records. The funding note and project
note were originally scheduled to mature in May and November 2025, respectively, and
were later extended to November 29, 2025. It is necessary to amend and modify certain
provisions of the bond loan documents in order to facilitate the loan extensions and
financing conversions.
Sentara Health provided construction-to-permanent financing of up to $6,005,028,
secured by a deed of trust and governed by a Construction and Term Loan Agreement,
as amended. It is also necessary to further extend the completion and conversion
deadlines to on or before November 29, 2026, to allow for conversion of the Sentara loan
to permanent financing, at which time it will hold first lien position.
The attached resolution authorizes the Executive Director to execute amendments to the
Bond Loan Documents, agreements related to loan conversion and extension, and
documents necessary for the DHCD loans and Project Operating Agreement
amendments. This includes signing loan notes, deeds of trust, subordination agreements,
and any other related documents deemed necessary for permanent financing and
conversion of loans.
Approval of the resolution is recommended.Jump to an indexed page (62 of 62)