Peekskill IDA approves resolution to amend Courtyard Housing bond indenture

The Peekskill Industrial Development Agency voted Feb. 25 to approve an authorizing resolution to amend the indenture for Courtyard Housing’s multifamily housing revenue bonds, enabling the owner to purchase its tax-exempt loan and eliminate an interest-rate reset scheduled for March 1.

Justin, speaking for the agency, said the amendment would "authorize the amendment to the indenture" subject to conditions in the circulated resolution and ensure the IDA’s fees and costs are identified. Matthew Judge, representing Courtyard Housing (owner of Peekskill Plaza), said the owner is negotiating with a potential purchaser and "we believe that, that will result in a sale of the building probably within the next 12 months." Justin added staff expects reissuance documentation to occur around April 1 or in early April.

Board members discussed financial specifics. Justin said the bonds were reissued last year at a bit over $8,000,000 and, after amortization and payments, the principal is now roughly $7,800,000. A typographic error in the draft resolution was flagged during review — a line that read "40100% of the residential units" was corrected to read "40%" — and board members noted that an existing regulatory agreement requires affordability at 60% AMI for all units.

Chair moved to approve the authorizing resolution; the motion was seconded and approved by voice vote without recorded roll call. Justin said the IDA had negotiated conditions including adjustments to PILOT (payments in lieu of taxes) calculations and indemnification for liabilities during the transaction.

Next steps include finalizing the amendment paperwork and circulating documentation for reissuance and approval, expected in early April.