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Commissioners approve tax‑exempt bond approval for Kinsey Green apartment renovations
Summary
The board approved a section 147(f) resolution allowing tax‑exempt bonds (not to exceed $16 million) to finance renovation of the Kinsey Green Apartments; the bonds are revenue bonds to be issued by the Greene County Port Authority and credit‑enhanced by Fannie Mae.
The Greene County Board of Commissioners on Jan. 30 approved a federal tax notice resolution under Internal Revenue Code section 147(f) to permit issuance of tax‑exempt revenue bonds for renovation of the Kinsey Green Apartments.
Brad Ruhey of the Cincinnati law firm Dinsmore & Shohl told commissioners the Port Authority will issue revenue bonds with a not‑to‑exceed principal amount of $16,000,000 for renovation and rehabilitation at Kinsey Green. The project affects 10 units and is expected to take about 12 months, Ruhey said. He described the bonds as revenue obligations to be repaid from project rents and noted that credit support is provided by Fannie Mae.
Why it matters: The 147(f) approval—commonly called a TEFRA approval—is required for certain private‑activity tax‑exempt financings so elected officials in the jurisdiction acknowledge that tax‑exempt proceeds will be used for the project. Ruhey told the board the Port Authority has conducted the required public hearing and that no members of the public testified for or against the financing.
Officials said the Port Authority previously approved inducement and later authorized the bonds; the county’s 147(f) approval is a procedural federal tax requirement rather than a county debt pledge. Ruhey emphasized the issuance would not constitute a general obligation of the county or port authority; the bonds “would be paid exclusively from the rents collected” and would be guaranteed or credit‑enhanced by Fannie Mae, which would hold mortgage security as part of its credit support.
The board moved, seconded and recorded unanimous approval of the resolution. The motion passed with all commissioners voting aye.
Clarifying details from the presentation: not‑to‑exceed bond principal $16,000,000; project scope—renovation/rehabilitation of 10 units; expected construction schedule—about 12 months; issuer—Greene County Port Authority; source of payment—rents collected at Kinsey Green; credit support—Fannie Mae. The county’s approval was limited to the federal tax requirement and did not pledge county taxing power.
