City Council will consider signing off on issuing $65 million in tax-exempt bond financing to nonprofit senior communities in Alexandria and Falls Church.
The bonds for Goodwin Living were approved by the Industrial Development Authority of the City of Alexandria.
According to Goodwin Living:
The action being taken is a conversion – as planned – for a 2022 refinancing to convert from taxable to tax exempt. This is a part of the 2022 refinance and is NOT new debt.
The refinance had to be taxable until a certain number of days before the call period then converts and needed the permission of the conduit issuer, which is the City of Alexandria Industrial Development Authority. Having a conduit issuing authority is required for tax-exempt financings.We anticipate that this conversion will take place without incident as it is a routine action associated with bond refinancings.
The senior living community is home to more than 2,000 residents at its locations in Falls Church and in Alexandria’s West End (4800 Fillmore Avenue).
The funds will be used to allow Goodwin House to pay off debt, as well as for routine capital expenditures, according to a City memo. They will also not affect the city’s credit rating if they are not repaid on time.
According to the City:
The IDA has the authority under Virginia law to issue revenue bonds for certain nonstock, 501(c)(3) organizations and has done so frequently in the past. An administrative fee is charged to applicants for the bond financing. As such bonds are conduit revenue bonds, neither the City nor IDA is obligated to repay the bonds or the interest on the bonds. The bonds do not contain any pledge of the City’s faith and credit. The obligation rests solely with the Borrower.
