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Oak Ridge council approves TEFRA resolution allowing housing authority bond issuance
Summary
The council voted unanimously to approve a Tax Equity and Fiscal Responsibility Act (TEFRA) resolution backing bonds to finance construction and rehabilitation of the Oak Ridge redevelopment multifamily housing project; city says it will carry no obligation for the bonds.
The Oak Ridge City Council on Thursday approved a resolution under the Tax Equity and Fiscal Responsibility Act allowing the Oak Ridge Housing Authority to issue bonds to finance construction and rehabilitation of a multifamily redevelopment project.
The vote was 7-0. The council’s action is an approval required under TEFRA and does not create a city obligation for repayment of the bonds.
The resolution’s attorney of record, Ms. Recker, told council members the federal TEFRA process requires local public approval of bonds issued by a housing authority. “There is no city obligation for these bonds,” Recker said, “It just does require that city council approve the issuance.” She added that the bonds must be issued and closed within one year of the approval and that the new approval will revoke the prior resolution once passed.
Council members asked for confirmation that the city would not be financially liable. Ms. Recker reiterated that the city would carry no obligation. After brief procedural steps the council voted, recorded as seven ayes and no nays.
The resolution does not change city finances and does not appropriate city funds. The action grants the housing authority the local approval needed to proceed under TEFRA; the authority will move forward with financing on its own timetable subject to the one-year closing requirement.
The council adjourned its special session and moved into the scheduled work session after completing the resolution and other agenda items.
