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Service <br /> Integrity <br /> EVERETT Respect <br /> Community <br /> HOUSING AUTHORITY Leadership <br /> Wisdom <br /> Creativity <br /> March 15,2021 <br /> Honorable Cassie Franklin <br /> City of Everett <br /> 2930 Wetmore Avenue <br /> Everett,Washington 98201 <br /> Re: Housing Authority of the City of Everett—Baker Heights Legacy <br /> Dear Mayor Franklin: <br /> The Housing Authority of the City of Everett(the"Authority"),a housing authority created under chapter <br /> 35.82 of the Revised Code of Washington(the"Housing Authorities Law"),is planning the acquisition,construction <br /> and equipping of a multifamily housing complex to be known as Baker Heights Legacy(the"Project")and to be <br /> located in Everett,Washington(the"City")on an approximately 3.175-acre site between 14"'Street to the North,15th <br /> Street to the South,a boundary line to the West of vacated Larch Street,and Pine Street to the East.The Project will <br /> provide approximately 105 units of housing for low income persons in the City. <br /> As further described below,the Authority is requesting your approval of the issuance of tax-exempt <br /> qualified private activity obligations(the"Obligations")to finance a portion of the costs of the Project.Although <br /> the City's approval is required for the issuance of the Obligations,it does not create or imply any responsibility on <br /> the part of the City to issue the Obligations,to pay debt service on the Obligations or to determine whether the <br /> Obligations or the Project are financially feasible. <br /> The financing sources for the Project will include low income housing tax credits,the Obligations,and <br /> other loans. In order to qualify for low income housing tax credits,the Project must be owned by a private entity. <br /> Here,ownership of the Project for federal income tax purposes will be transferred via a long-term lease to Everett <br /> Housing Legacy LLLP,a Washington limited liability limited partnership of which the Authority is the sole general <br /> partner(the"Borrower").The Authority will issue the Obligations as a conduit issuer and use the proceeds of the <br /> sale of the Obligations to make a loan or loans to the Borrower to finance the costs of the Project. <br /> The Obligations will be issued for the Project pursuant to a plan of financing within the meaning of <br /> applicable Treasury Regulations(the"Plan of Financing")and(a)may consist of a line of credit and/or one or more <br /> issues(including refunding issues)of revenue bond anticipation notes to provide interim financing for the Project <br /> and one or more issues(including refunding issues)of long-term revenue bonds or notes to provide permanent <br /> financing for the Project;and(b)will be issued in accordance with a schedule such that the first issue of the <br /> Obligations for the Project will be issued no later than one year after the date of the Mayor's approval and any <br /> subsequent issue for the Project will be issued no later than three years after the issue date of the first such issue <br /> for the Project.The maximum principal amount of Obligations issued for the Project will not exceed$9,300,000. In <br /> calculating the maximum aggregate principal amount of the Obligations issued for the Project pursuant to the Plan <br /> of Financing,the principal amount of any issue of Obligations used to currently refund a prior issue of Obligations <br /> will be disregarded to the extent that the principal amount of such refunding issue does not exceed the <br /> outstanding principal amount of the prior issue. <br /> Mailing: P.O. Box 1547 Everett, WA 98206-1547 I Office: 3107 Colby Avenue Everett, WA 98201 I (425)258-9222 <br /> IV <br />