Everett Housing Authority 3/16/2021

Unlike"governmental"tax-exempt bonds,qualified private activity bonds may finance a facility to be used primarily by a private entity,so long as 95%of the proceeds of the bonds are applied to a qualifying purpose(here,provision of low-income housing)and certain other requirements are met.Among the special requirements applicable to qualified private activity bonds are those contained in Section 147(f)of the Internal Revenue Code(the"Code").Under these provisions,added by the Tax Equity and Fiscal Responsibility Act and therefore often referred to by the acronym"TEFRA",are notice,hearing and local government approval requirements.These TEFRA requirements are intended to provide opportunities for the public to be made aware of projects to be financed with tax-exempt qualified private activity bonds. Section 147(f)of the Code requires that a qualified private activity bond be approved by(a)the governmental unit that issues the bond,or on behalf of which such bond is issued,and(b)a governmental unit having jurisdiction over the area in which the financed facility is located.A bond may be approved by the "applicable elected representative"of a governmental unit.The City has jurisdiction over the location of the Project.Therefore,approval by the City constitutes approval by a governmental unit having jurisdiction over the area in which the financed facility is located.In addition,as explained below,the Authority's bond counsel has advised us that approval by the City also satisfies the requirement for approval by the governmental unit that issues the Obligations,in this case,the Authority. Here,the Authority is serving as the issuer of the tax- exempt Obligations. Because the members of the Authority's governing body are appointed,rather than elected,the Authority does not have its own"applicable elected representative"for purposes of the TEFRA requirements.The Authority's bond counsel has advised us that,because the City activated the Authority(by resolution adopted by the City Council on March 9,1939)under the Housing Authorities Law and appoints members to the Authority's governing body,the"applicable elected representative"of the City is treated as the"applicable elected representative"of the Authority for TEFRA purposes.Our bond counsel has further advised that the City's Mayor,as the City's chief elected executive officer,is an"applicable elected representative"of the City and represents the City for purposes of TEFRA approval.Approval by the Mayor satisfies both the"issuer"and"jurisdiction"TEFRA approval requirements. The approval of the applicable elected representative must be made"after a public hearing following reasonable public notice."The Treasury Regulations on this topic provide that notice is presumed reasonable if is published no fewer than seven days before the hearing in or more ways,including by publication in a newspaper of general circulation available to residents of that locality.The Authority published a notice of a public hearing with respect to the Project and the Obligations on February 12,2021,in The Everett Daily Herald,a newspaper of general circulation in the City.[A copy of the affidavit of publication of this notice is enclosed.]The Treasury Regulations also provide that a public hearing"means a forum providing a reasonable opportunity for interested individuals to express their views,orally or in writing,on the proposed issue of bonds and the location and nature of a proposed project to be financed."The Authority held a hearing regarding the proposed Obligations and the Project on February 22,2021.As shown in the enclosed hearing minutes,no one from the public appeared to present testimony or provided written testimony in advance of the hearing. In recognition of the need to curtail the spread of the COVID-19 pandemic,and in accordance with Internal Revenue Service Revenue Procedures 2020-21 and 2020-49 and Proclamations of the Governor of the State of Washington,the public hearing was conducted by a teleconference accessible to residents of the City by calling a toll-free number,and was not conducted in person. Although approval of the City is required for issuance of tax-exempt qualified private activity bonds to finance the Project,this approval is intended solely to comply with the requirements of Section 147(f)of the Code and is not intended to imply that the Obligations are issued on behalf of the City,that the City has approved the form of documents relating to the Obligations,that the City has approved underlying credit issues regarding the Project,or that the City is under any duty or has any responsibility for the payment of the Obligations or for fulfillment of the Authority's or the Borrower's obligations under documents relating to the Project or the Plan of Financing. The Authority respectfully requests that you execute the enclosed certificate indicating your approval of the issuance of the Obligations pursuant to the Plan of Financing for the Project. Please do not hesitate to