REPORT TO COUNCIL
SUBJECT
Title
Hold a Public Hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) and Action on the Adoption of a Resolution Approving the California Municipal Finance Authority (CMFA) Reissuance of Tax-Exempt Bonds Relating to the Financing of 145-unit Affordable Housing Project for Low-income Households, Located in the City of Santa Clara, California at 3311 Kifer Road
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
Allied Housing, Inc. (the "Sponsor"), on behalf of Allied 2904 Corvin, L.P. or another entity to be created by the Sponsor or an affiliate of the Sponsor (collectively the "Borrower"), has requested that the CMFA reissue and sell revenue bonds in the maximum principal amount of $35,000,000 including but not limited to revenue bonds reissued as part of a plan to refinance the Project described herein for the purpose of making a loan to the Borrower, to enable the Borrower to refinance the costs of the acquisition, construction and improvement of a 145-unit rental housing facility for low-income tenants, including persons experiencing homelessness, located at 3311 Kifer Road (formerly 2904 Corvin Drive) within the City. This development is also known as Calabazas Apartments.
In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Clara must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to hosting a TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
A TEFRA hearing was held, and a resolution unanimously approved by the City Coun...
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