REPORT TO CITY COUNCIL
SUBJECT
Title
Public Hearing - Adopt a Resolution Approving the California Municipal Finance Authority Issuance of Tax-Exempt Bonds for Financing of a 100% Affordable Multifamily Rental Housing Project located at 3550 El Camino Real
Report
BACKGROUND
The California Municipal Finance Authority ("CMFA") was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural, and community development through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA.
The CMFA was formed to assist local governments, non-profit organizations, and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA's representatives and its Board of Directors have considerable experience in bond financing.
Clara Gardens LP, an affiliate of Resources for Community Development, (the "Borrower") is building a 120-unit 100% affordable project for Extremely Low and Very Low Income Households at 3550 El Camino Real. RCD has applied to the CMFA for tax-exempt bonds to help finance the project. As part of the financing process for affordable housing projects when utilizing State tax-exempt bonds, the local jurisdiction, in this case, the City of Santa Clara, is required by State law to conduct a public hearing. The City is conducting this public hearing to allow members of the public to provide input on the issuance of the bonds for this project as required by State law.
DISCUSSION
Clara Gardens LP (the "Borrower") has requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $50,000,000 (the "Bonds") of tax-exempt revenue Bonds. The proceeds of the Bonds will be used to finance and refinance the acquisition, construction, development, and equipping?of a 100% affordable 120-unit qualified ...
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