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Housing Authority of Kittitas County 107 W. 11th Ave. Ellensburg, WA 98926 July 30, 2019 JUL 3 0 7.019 psi - - _o:d.- County Commissioners of Kittitas County ..::;;; r W Gr• UJUM,> Re: Housing Authority of Kittitas County - Kittitas RAD Affordable Housing Portfolio LLLP Dear County Commissioners: The Housing Authority of the Kittitas County (the "Authority"), a housing authority created under chapter 35.82 of the Revised Code of Washington (the "Housing Authorities Law"), is planning the rehabilitation of the following six apartment complexes: (1) the 20 -unit multifamily rental housing development known as Cahill Manor located at 404 East Patrick Avenue in the City of Kittitas; (2) the nine -unit multifamily rental housing development known as Cherry Lane located at 301 East Cherry Lane in the City of Ellensburg; (3) the five -unit multifamily rental housing development known as Helena Annex located at 2201 North Airport Road in the City of Ellensburg; (4) the 30 -unit multifamily rental housing development known as Mount Stuart Vista located at 1305, 1307, 1309 and 1311 Cora Street, and 704, 705, 706, 707, 708, 709, 710, 711, 712, 713, 714, 715, 716, 717, 719, 801, 802, 803, 804, 805, 806, 807, 808, 809, 810 and 811 Rainier Avenue in the City of Ellensburg; (5) the 16 -unit multifamily rental housing development known as Patrick Place located at 308 East Patrick Avenue in the City of Kittitas; and (6) the 30 -unit multifamily rental housing development known as Trinal Manor located at 107 West 11th Avenue in the City of Ellensburg (collectively, the "Projects"), all located within Kittitas County (the "County"). The renovated Projects will provide approximately 110 units of housing for low income individuals and families in the County. As further described below, the Authority is requesting your approval of the issuance of tax-exempt qualified private activity obligations (the "Obligations") to finance a portion of the costs of acquiring and rehabilitating the Projects. Although the County's approval is required for the issuance of the Obligations, it does not create or imply any responsibility on the part of the County to issue the Obligations, to pay debt service on the Obligations or to determine whether the Obligations or the Projects are financially feasible. The financing sources for the Projects will include low income housing tax credits, the Obligations, and other loans. In order to qualify for low income housing tax credits, the Projects must be owned by a private entity. Here, ownership of the Projects for federal income tax purposes will be transferred via a long-term lease to Kittitas RAD Affordable Housing Portfolio LLLP, a Washington limited liability limited partnership of which the Authority is the sole general partner (the "Borrower"). The Authority will issue the Obligations as a conduit issuer and use the proceeds of the sale of the Obligations to make a loan or loans to the Borrower to finance the costs of acquiring, rehabilitating and equipping the Projects. PHONE: (509) 962-9006 FAX: (509) 962-3575 EMAIL: Housing@hakittitas.org