REPORT TO COUNCIL
SUBJECT
Title
Adopt a resolution to become a member of the California Municipal Finance Authority (CMFA) and to approve the CMFA's issuance of tax exempt bonds relating to the financing of 145 Affordable Housing Units at 2904 Corvin Drive
Report
BACKGROUND
Allied Housing has requested that the California Municipal Finance Authority (CMFA) issue and sell revenue bonds in the maximum principal amount of $54,000,000 as part of a plan to finance the costs of the acquisition, construction and improvement of a 145-unit 100 percent affordable rental housing facility for low-income tenants, including persons experiencing homelessness, located at 2904 Corvin Drive within the City of Santa Clara ("Project").
For all or a portion of the bonds to qualify as tax-exempt bonds, the City of Santa Clara (City) must conduct a public hearing under the Tax Equity and Fiscal Responsibility Act (the "TEFRA Hearing") to provide the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for financing the Project. Public notice must be provided to the members of the community prior to the TEFRA Hearing. Following the close of the TEFRA Hearing, an "applicable elected representative" of the City must provide its approval of the issuance of the bonds for financing the Project.
California Municipal Finance Authority
For the CMFA to have the authority to serve as the issuer of the bonds for the project, it is necessary for the City of Santa Clara to become a member of the CMFA. The 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 300 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 ...
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