Bill
PR 26-0678
Authorize up to $17 million in DC revenue bonds to finance a new Harmony DC Charter campus and related costs, with repayment through bond proceeds and district loan.
A. Purpose and Intent
- Authorizes the District of Columbia to issue revenue bonds totaling up to $17 million to support Harmony DC Public Charter Schools.
- Proceeds may be used to finance, refinance, or reimburse the costs of acquiring, improving, equipping, furnishing, and developing a new public charter school campus located at 2917 8th Street NE, Washington, DC (approximately 33,774 square feet), as well as related costs (parking, working capital, and issuance/credit costs).
- The project is considered a qualified undertaking under section 490 of the Home Rule Act and aligns with the District’s public purpose to support education and economic development.
B. Key Provisions and Changes Proposed
1. Bond Authorization and Loan
- Mayor is authorized to issue, sell, and deliver up to $17 million in DC revenue bonds in one or more series.
- The District would make a loan (the “Loan”) to Harmony DC Public Charter Schools (the Borrower) to finance the Project costs.
- Bonds may be issued in certificated or book-entry form and may be issued in one or more series; issuance can include refunding bonds to refinance prior bonds, with the overall cap remaining within $17 million.
2. Project Scope (Project Definitions)
- Acquisition, renovation, and development of a new Harmony DC campus at 2917 8th Street NE (approximately 33,774 sq ft).
- Funding of working capital, interest on bonds, credit enhancements, liquidity, debt service reserves, and related issuance costs.
3. Financing Documents and Security
- The Mayor and Authorized Delegates would sign and oversee Financing Documents and Closing Documents.
- Bonds would be special obligations of the District, without recourse to the District’s general credit, and not a debt of the District.
- Security arrangements may include security interests in collateral and a loan payment structure funded by Bond proceeds, investment earnings, and loan revenues.
4. Issuance, Sale, and Tax Compliance
- Bonds may be sold on negotiated or competitive terms, at par, above, or below par.
- The District must receive an approving bond counsel opinion confirming the bonds’ validity and tax treatment if interest is tax-exempt.
- The Bonds must include a legend clarifying District non-recourse status and lack of general obligation.
5. Reporting and Compliance
- Financial reporting obligations include providing a transcript of proceedings to the Secretary to the Council within three days of receipt.
- Periodic monitoring to ensure proper use of bond proceeds and compliance with public benefit obligations.
6. Expiration, Severability, and Compliance
- If bonds are not issued within 3 years, the authorization expires.
- Provisions are severable; if any provision is invalid, the rest remains in effect.
- The resolution explicitly satisfies IRS Section 147(f) public approval requirements and Home Rule Act Section 490(k).
C. Who Is Affected
- Harmony DC Public Charter Schools (Borrower) would receive up to $17 million in bond proceeds and enter into a loan with the District.
- The District of Columbia would issue, secure, and manage the bonds but with no general obligation or taxing power pledge.
- Bond Counsel, underwriters, and related financial advisors would be involved (as designated in the resolution).
D. Procedural and Timeline Aspects
- Action history indicates the bill was introduced (April 24, 2026) and referred to the Committee of the Whole (May 5, 2026).
- The resolution would take effect immediately upon adoption.
- Expiration: If bonds are not issued within 3 years of adoption, the authorization lapses.
- Public hearing requirements are acknowledged to meet IRS Section 147(f) requirements.
E. Financial Impact (as described in accompanying materials)
- Estimated aggregate bonds: up to $17,000,000.
- Uses include land/building acquisition ($15,000,000), renovations ($1,500,000), issuance costs ($250,000), and a debt service reserve fund ($250,000).
- A fiscal impact statement is attached to the resolution, aligning with standard DC Revenue Bond Program procedures.
Compiled from official sources — confirm details with the bill’s official record.
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