REPORT TO COUNCIL
SUBJECT
Title
Adopt a resolution to become a member of the California Public Finance Authority (CalPFA) and to approve CalPFA's issuance of tax exempt bonds relating to the financing of 196 Affordable Housing Units at 2233 Calle del Mundo
Report
BACKGROUND
St. Anton Tasman East, LP (the "Borrower") has requested that the California Public Finance Authority (CalPFA) issue and sell revenue bonds in the maximum principal amount not to exceed $80,000,000 as part of a plan to finance the costs of the acquisition, construction and improvement of a 196-unit 100 percent affordable rental housing facility for low-income tenants, located at 2233 Calle del Mundo 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 Public Finance Authority
For the CalPFA to have the authority to serve as the issuer of the bonds for the Project, it is necessary for the City to become a member of the CalPFA. The CalPFA is a political subdivision of the state of California and was created on May 12, 2015 to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt financing to promote economic, cultural, and community development opportunities that create temporary and permanent jobs, affordable housing, community infrastructure and improve the overall quality of life in local communities. To date, 39 municipalities ha...
Click here for full text