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PR 26-0660

D.C. Preparatory Academy Revenue Bonds Project Approval Resolution of 2026

26th Council Period (2025-2026) Introduced by Phil Mendelson

Authorizes up to $25 million in tax-exempt DC revenue bonds to fund DC Preparatory Academy’s Edgewood campus renovation, repaid from bond proceeds and related sources, with no reco

Resolution R26-0411, Effective from Jun 02, 2026 Published in DC Register Vol 73 and Page 008397
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Bill Summary · PR 26-0660

Summary of Bill PR 26-0660 | D.C. Preparatory Academy Revenue Bonds Project Approval Resolution of 2026

Purpose and Intent

  • To authorize the issuance, sale, and delivery of tax-exempt District of Columbia revenue bonds up to a total principal amount of $25,000,000.
  • Proceeds will finance the acquisition, renovation, equipping, and development of a 42,000 square foot public charter school facility for DC Preparatory Academy located at 711 Edgewood Street NE (Ward 5), including related working capital, interest, credit enhancement, liquidity, debt service reserve, and issuance costs.
  • The bonds would be issued as a non-recourse obligation of the District, not a general obligation or pledge of the District’s credit or taxing power.

Key Provisions and Changes

  • Bond Authorization: Enables the Mayor to issue bonds in one or more series up to $25 million and to make a loan of bond proceeds to the Borrower (DC Prep).
  • Borrower and Project: The Borrower is DC Preparatory Academy, a DC 501(c)(3) entity. The Project finances a renovated charter school facility for Edgewood Middle Campus, relocating from 701 Edgewood Street NE to 711 Edgewood Street NE. Uses include hard costs, contingency, architectural/engineering, opening costs, and related miscellaneous items.
  • Financing Documents: The Mayor may finalize Financing Documents and Closing Documents, appoint bond counsel, and designate trust arrangements. Bond terms (interest rate, maturity, redemption, etc.) and security provisions will be defined in these documents.
  • Security and Pledges: Bonds are special obligations of the District, without recourse; repayment comes from bond proceeds, investment income, loan revenues, and other specified sources, not from District general funds.
  • Issuance and Sale: Bonds may be sold by negotiated or competitive sale. Issuance requires an appropriate bond opinion from Bond Counsel confirming validity and tax-exempt status if applicable.
  • Compliance and Oversight: Provisions require monitoring of bond proceeds usage, blue-sky qualifications, and compliance with public benefit agreements. Public reporting is required (transcript of proceedings to the Secretary to the Council within 3 days of receipt).
  • Expiration and Conditions: If bonds are not issued within 3 years, the authorization expires. Public approval under federal and local rules is acknowledged.
  • Official Assurances: The resolution includes standard disclaimers about District discretion, viability of the project, and financial soundness, and it reiterates non-liability of District officials for bond performance.

Who Is Affected

  • DC Preparatory Academy (Borrower): Receives bond financing and loan proceeds for the Edgewood project.
  • Ward 5 residents and DC students: Potential benefits from a modernized charter school facility and expanded educational opportunities.
  • District of Columbia: Issuing authority for the revenue bonds; non-recourse to the District; oversight and compliance responsibilities through Finance Documents.
  • Bond Counsel, financial advisors, underwriters, and related professionals: Involved in structuring, issuing, and securing the bonds.

Procedural and Timeline Aspects

  • Referenced action: Introduced April 20, 2026; referred to Committee of the Whole on May 5, 2026.
  • Public approval requirements: Compliance with section 147(f) of the Internal Revenue Code and Home Rule Act section 490(k), including a public hearing.
  • Expiration: Bond authorization lapses if not issued within 3 years of adoption.
  • Immediate Effect: The resolution states it shall take effect immediately upon adoption.

Overall, PR 26-0660 sets up tax-exempt revenue bond financing to support a major Edgewood campus renovation for DC Prep, with non-recourse District backing and structured repayment through bond-financed sources.

Compiled from official sources — confirm details with the bill’s official record.

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