CITY COUNCIL STAFF REPORT
MEETING DATE: MARCH 1, 2017
PREPARED BY: Rebecca Garcia, Housing Manager
APPROVED BY: City Manager
TITLE
TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA) HEARING AND CONDUIT FINANCING FOR REHABILITATION OF VILLAGE AVANTE (PARK PLACE) APARTMENTS AFFORDABLE HOUSING PROJECT
END
RECOMMENDATION(S)
RECOMMENDATION
1. Open/close public hearing consistent with the requirements of the federal Tax and Equity Fiscal Responsibility Act ("TEFRA") and the Internal Revenue Code of 1986, as amended (the "Code"); and
2. Adopt resolution approving the issuance of bonds by the California Municipal Finance Authority ("CMFA") for the benefit of Ecumenical Association of Housing, Inc. ("EAH"), or a subsidiary or affiliate thereof (the "Borrower"), to provide for the financing of the Village Avante (Park Place) Apartments Affordable Housing Project.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Supporting youth
Preserving and cultivating public trust
2017 Strategic Priorities
Inclusiveness
Regional Initiatives
REPORT NARRATIVE:
The City has been asked to hold a hearing under the federal Tax Equity and Fiscal Responsibility Act ("TEFRA") to determine whether the Village Avante Rehabilitation project should be allowed to issue tax exempt bonds to fund the project. Approval by the City is required under Section 147(f) of the Internal Revenue Code of 1986. This action has no fiscal impact on City funds. The City is holding the TEFRA Hearing needed for approval of issuance of bonds by CMFA. The City is not issuing bonds or assuming any financial obligations.
Village Avante Rehabilitation project, approved via a TEFRA hearing one year ago, is temporarily in a holding pattern as new tax credit investors are solidified. Construction plans are complete and building permits have been issued.
Immediately after the November 2016 election, the tax credit investor market was fueled by speculati...
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