|
$4,100,000*
<br /> CITY OF SOUTH BEND,INDIANA
<br /> MULTIFAMILY HOUSING REVENUE BONDS,SERIES 2020A
<br /> (CEDAR GLEN APARTMENTS PROJECT)
<br /> INTRODUCTION
<br /> This Official Statement sets forth certain information concerning the issuance and sale by the City
<br /> of South Bend, Indiana (the "Issuer"), a municipal corporation of the State of Indiana (the "State"), of
<br /> $4,100,000* aggregate principal amount of Multifamily Housing Revenue Bonds, Series 2020A (Cedar
<br /> Glen Apartments Project)(the"Bonds").
<br /> The Bonds will be issued pursuant to Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, as
<br /> amended(collectively, the"Act"), and Ordinance No. [ ]-20 of the Issuer adopted by the City Council
<br /> on April [ ], 2020 (the "Bond Resolution") and secured by a Trust Indenture, dated as of April 1, 2020
<br /> (the"Indenture"),between the Issuer and The Huntington National Bank, as trustee(in such capacity, the
<br /> "Trustee"). The Bonds are being issued to make a loan(the"Loan")to MAH Cedar Glen, LP, an Indiana
<br /> limited partnership (the "Borrower"), for the acquisition, rehabilitation, improvement and equipping of a
<br /> 179-unit affordable rental housing project located in the City of South Bend, Indiana(the"Project"). The
<br /> terms of the financing are to be as set forth in the Loan Agreement, dated as of April 1,2020,between the
<br /> Issuer and the Borrower (the "Loan Agreement"). The obligation of the Borrower to repay the Loan
<br /> pursuant to the Loan Agreement will be evidenced by a promissory note(the"Note").
<br /> Under the terms of the Indenture, an amount equal to the par amount of the Bonds is to be
<br /> deposited in the Project Fund and amounts received as accrued interest plus the negative arbitrage deposit
<br /> are to be deposited in the Interest Payment Account of the Bond Fund established under the Indenture and
<br /> invested in Eligible Investments, as defined below. See "THE INDENTURE—Investment of Funds"
<br /> herein.
<br /> The principal of and interest on the Bonds are payable from the security pledged under the
<br /> Indenture, including the payments on the investment of funds under the Indenture. Under the Indenture,
<br /> the Trustee is to invest amounts held under the Indenture in Eligible Investments (as defined below). At
<br /> all times, the Bonds will be secured by amounts on deposit under the Indenture, which shall
<br /> constitute Eligible Funds and shall be invested in Eligible Investments and such amounts will be
<br /> sufficient, along with investment earnings thereon, without the need for reinvestment, to pay all of
<br /> the interest on the Bonds when due and to pay the principal of the Bonds at the earlier of any
<br /> Redemption Date or any Mandatory Tender Date, as further described herein. See "SECURITY
<br /> AND SOURCES OF PAYMENT FOR THE BONDS" herein.
<br /> The Issuer has determined to simultaneously issue and sell its Multifamily Housing Revenue
<br /> Bonds, Series 2020B (Cedar Glen Apartments Project), in the principal amount of $[ ]* (the
<br /> "Series 2020B Bonds") to fund one or more loans in the aggregate principal amount of the Series 2020B
<br /> Bonds (the"Series 2020B Loan") to the Borrower, which Series 2020B Loan shall be advanced pursuant
<br /> to the terms of a Construction Loan Agreement dated as of April 1, 2020 among the Issuer, the Borrower
<br /> and Merchants Bank of Indiana (the"Series 2020B Bondholder"), as the purchaser, to provide additional
<br /> funds to finance the Project. The Series 2020B Bonds are not secured by the Trust Estate created under
<br /> the Indenture.
<br /> *Preliminary,subject to change.
<br /> 1
<br />
|