Bill
PR 26-0670
Authorizes up to $15 million in DC revenue bonds to fund renovation and expansion of Food & Friends, Inc.’s facility, with non-recourse District financing and loan to the nonprofit
Date: April 23, 2026
Jurisdiction: District of Columbia
Sponsor: Chairman Phil Mendelson (with co-sponsor)
Purpose
- To authorize the issuance, sale, and delivery of DC revenue bonds totaling up to $15,000,000 in one or more series.
- To provide for the loan of bond proceeds to Food & Friends, Inc. (a DC nonprofit), for financing, refinancing, or reimbursement of project costs associated with the organization’s headquarters and food preparation facility at 219 Riggs Road, NE.
Key Provisions and Changes
- Authority and Financing Structure
- The Mayor is authorized to issue up to $15 million in DC revenue bonds and to make a loan (the Bond proceeds loan) to Food & Friends, Inc. for the Project.
- Bonds may be issued in one or more series and sold by negotiated or competitive means.
- Bond proceeds may be used to fund renovation, expansion, construction, equipment, furnishings, and related project costs, including potential credit enhancements, liquidity facilities, or debt service reserves.
- The resolution contemplates the possibility of refunding bonds in the future, so long as outstanding principal does not exceed the authorized cap.
- Non-Recourse and Public Credit
- The bonds are special obligations of the District with no recourse to the District’s general funds or credit.
- They shall not be general obligations of the District and shall not constitute a debt of the District or a pledge of District taxing power.
- The District has no obligation to purchase the bonds; there is no liability beyond specified financing documents.
- Project Scope (Project Definition)
- Financing, refinancing, or reimbursement of costs for:
- Renovation, expansion, and construction of Food & Friends’ facility at 219 Riggs Road, NE (Square 3766, Lot 0005).
- Purchase of equipment and furnishings for the facility, along with related real and personal property.
- Any credit enhancement costs, liquidity costs, or debt service reserves related to the Bonds.
- Issuance costs related to the bond financing.
- Use of Bond Proceeds and Monitoring
- The Mayor and Authorized Delegates may set final terms (bond form, interest rate, maturity, redemption provisions, security, etc.).
- Proceeds must be used for the Project as permitted and monitored to ensure proper use.
- Potential program fees or borrower counsel fees and issuance-related costs may be charged to the Borrower.
- Legal and Regulatory Compliance
- Bond Counsel must issue an opinion on the bonds’ validity and tax treatment if applicable.
- The resolution includes standard public-approval and IRS compliance language, including a public hearing requirement under IRS rules.
- Administrative and Oversight Provisions
- Financing Documents and Closing Documents: the Mayor may approve and execute these documents; the District seal may be affixed.
- Information reporting: a transcript of proceedings must be transmitted to the Secretary to the Council within 3 days of receipt.
- Expiration: if bonds are not issued within 3 years, authorization expires.
- Severability and compliance clauses protect the validity of remaining provisions if any section is found invalid.
- Effective Date
- Resolution takes effect immediately upon adoption.
Who is Affected
- Food & Friends, Inc. (Borrower): receives up to $15 million in bond financing and a loan from the District to fund the Project.
- District of Columbia (Issuer): issues bonds, undertakes non-recourse financing for a private nonprofit project, with protections that ensure no general obligation or tax-backed drain on District resources.
- Local stakeholders: Ward 5 community and DC residents may benefit from expanded services and increased capacity of Food & Friends, which provides medically tailored meals and nutrition services to individuals with serious illnesses.
Timeline and Process
- Proposed funding plan assumes ground breaking in July 2026.
- The bond issuance is contingent on Council approval and compliance with applicable laws, IRS requirements, and bond counsel opinions.
- If bonds are not issued within 3 years of adoption, authority expires.
Fiscal Impact
- The bill itself creates authorization for up to $15 million in revenue bonds and related issuance/transaction costs (as outlined in the fact sheet: bond proceeds of $15,000,000; uses include construction, fees, and professional services).
- The City’s fiscal obligation is limited to the terms set forth in the Financing Documents; no general obligation or District liability beyond the specified bonds and loan.
Notes
- The bill includes a detailed set of definitions and procedural mechanics typical of the District’s Revenue Bond Program, reflecting standard protections and risk allocations for tax-exempt financing of private undertakings.
Compiled from official sources — confirm details with the bill’s official record.
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