(a) Pursuant to § 1-204.90, subject to the restrictions of this chapter, the Council delegates to the Authority the power to issue revenue bonds, notes, and other obligations to finance, refinance, or assist in the financing or refinancing of any undertaking of the Authority in the area of housing that is in furtherance, and not inconsistent with, the purposes of this chapter. Nothing in this chapter shall be construed as restricting, impairing, or superseding the authority otherwise vested in the HFA. Each such issuance shall be authorized by a resolution of the Authority and the Authority shall send a copy of the resolution to the Chairman of the Council and the Mayor. The resolution shall describe the nature of the project; the benefits designed to result therefrom, as related to the public purposes of the Authority; and the criteria under which funds will be made available.
(b) The Board shall determine, by enactment of an eligibility resolution, that a housing project or homeownership program contemplated to be financed through a bond issuance meets the requirements of this chapter. Subsequent to enactment of an eligibility resolution, the Authority shall send to the Chairman of the Council and the Mayor written notification thereof, describing the nature of the housing project, the benefits designed to result therefrom as related to the public purposes of the Authority, and the criteria under which funds will be made available.
(c) Each notification transmitted to the Chairman of the Council and the Mayor shall set forth information pertaining to the following:
(1) Date of application;
(2) Name and description of the project;
(3) Address and ward location of the project;
(4) Developer of the project;
(5) Amount and type of financing requested;
(6) Amount and type of federal or District funds involved; and
(7) The number of units reserved for very-low, low-, and moderate-income persons; income restrictions; and rent levels.
(d)(1) The Authority may not adopt an inducement resolution or a resolution authorizing a bond issuance to fund a project nor may the Authority implement a proposed housing program submitted in accordance with this section unless the proposal has been submitted to the Council for a 30-day review period, excluding Saturdays, Sundays, holidays, and days of Council recess. During the Council review period, comments of the Council representative from the affected ward shall be considered.
(2) If, during the 30-day review period, the Council does not adopt a resolution disapproving the proposal, the Authority may take action to implement the proposal. The Council may adopt a resolution approving the proposal prior to the expiration of the 30-day period, in which case the Authority may take immediate action to implement the proposal.
(e) If a proposal is disapproved, the resolution shall state the reasons for disapproval. The Authority staff may modify the proposal to address the concerns expressed in the resolution of disapproval and may, without further action of the Board, resubmit the proposal, as modified, for a 30-day review period, excluding Saturdays, Sundays, holidays, and days of Council recess. If, during the 30-day review period, the Council does not adopt a resolution disapproving the resubmitted proposal, the Authority may take action to implement the proposal. The Council may adopt a resolution approving the resubmitted proposal prior to the expiration of the 30-day review period, in which case the Authority may take immediate action to implement the proposal. For the purposes of this section, the term “proposal” shall include financing for housing projects and programs.
(f) The Obligations shall be obligations payable solely from revenues of the Authority, from whatever source derived, including lease or loan payments, dedicated revenues, earnings on the Fund, and any other funds available to the Authority which may be used for such purposes in accordance with applicable law. The Authority may expressly provide additional security by pledge or contribution from any source not proscribed by Title 47 of the District of Columbia Official Code.
(g) Regardless of their form or character, the Obligations shall be negotiable instruments for all purposes of Article 9 of Subtitle I of Title 28, subject only to the specific provisions of the bonds and notes pertaining to registration.
(h) No Officer, employee, or Commissioner of the Authority shall be held personally liable solely because an Obligation is issued. The Authority shall indemnify any person who shall have served as a Commissioner, Officer, or employee of the Authority against financial loss or litigation expense arising out of or in connection with any claim or suit involving allegations that pecuniary harm has been sustained as a result of any transaction authorized by this section, unless the person is found by a final judicial determination not to have acted in good faith and for a purpose which he reasonably believed to be lawful and in the best interest of the Authority.
(i) The issuance and servicing of Obligations by the Authority as contemplated in this section and the adoption of resolutions authorizing the issuance of Obligations shall be done in compliance with the requirements of this chapter, but shall not be subject to the requirements of §§ 2-502 through 2-510, or any successor legislation.
(j) The Authority shall have the power to borrow money and to issue Obligations regardless of whether or not the interest payable by the Authority under such loans or Obligations or the income derived by the holders of such loans or Obligations is, for the purposes of federal taxation, includable in the taxable income of the recipients of these payments or is otherwise not exempt from the imposition of taxation on the recipients. Whenever expedient, the Authority may refund Obligations, including Obligations previously issued by other than the Authority, by the issuance of new Obligations, regardless of whether or not the Obligations to be refunded have matured. The Authority may also issue Obligations for a combination of refund, renewal, and financing programs authorized by HUD or this chapter.
(k) The Authority shall have the power to contract with the holders of its Obligations as to the custody, collection, securing, investment, and payment of any monies of the Authority and of any monies held in trust or otherwise for the payment of the Obligations, subject to applicable provisions of federal law regarding a program for which Obligations were issued.
(l) The Authority may treat expenses incurred in carrying out a trust indenture as operating expenses.
(m) The Authority shall not issue Obligations pursuant to this chapter unless it has transmitted a written request, which shall be accompanied by a completed application in the form prescribed by HFA, to the HFA that the HFA, pursuant to the Housing Finance Agency Act, issue revenue bonds, notes, or other obligations to finance an undertaking of the Authority, and the HFA has:
(1) Affirmatively declined such request in writing within 30 calendar days of receipt of the request;
(2) Failed to adopt an eligibility resolution pursuant to § 42-2702.07(a) within 45 calendar days after receipt of the request;
(3) Failed to transmit the eligibility resolution to the Council pursuant to § 42-2702.07(a) within 10 business days after the approval of the eligibility resolution by the Board of Directors of the HFA; or
(4) Failed, after adoption of an eligibility resolution as set forth in paragraph (2) of this subsection and the authorization of the proposal by the Council (whether by express approval or failure to disapprove) pursuant to § 42-2702.07(b)(3) or (c), to adopt a bond resolution authorizing issuance of the revenue bonds, notes, or other obligations to fund the undertaking of the Authority within 45 days after authorization of the proposal by the Council.
(n)(1) Notwithstanding the provisions of subsections (b), (c), (d), and (e) of this section, the Authority may, without submission to Council, adopt inducement resolutions or resolutions authorizing issuance of bonds, notes, or other obligations and, pursuant to this section, may issue bonds, notes, or other obligations to finance, refinance, or reimburse development costs of the Capper/Carrollsburg Public Improvements undertaken by the Authority. The issuance of bonds, notes, or other obligations by or on behalf of the Authority to finance, refinance, or reimburse development costs of the Capper/Carrollsburg Public Improvements is in furtherance of, and not inconsistent with, the purposes of this chapter.
(2) The bonds, notes, or other obligations issued under this section may be secured, in whole or in part, by:
(A) The note, and security provided therefor, issued by the District of Columbia pursuant to the PILOT Authorization Increase and Arthur Capper/Carrollsburg Public Improvements Revenue Bonds Approval Act of 2006, effective March 8, 2007 (D.C. Law 16-244; 54 DCR 609), and § 1-204.90; and
(B) Available revenues, assets, or other property of the Authority, subject to pre-existing agreements with HUD.
Effect of Amendments
D.C. Law 17-118 added subsec. (n).
For temporary (90-day) addition of section, see notes following § 6-201.
For temporary (90 day) amendment of section, see § 102(b) of Arthur Capper/Carrollsburg Public Improvement Revenue Bonds Technical Correction Emergency Act of 2008 (D.C. Act 17-318, March 19, 2008, 55 DCR 3418).