REPORT TO THE CITY COUNCIL
May 12, 2016
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: KAREN M. BRADLEY, Assistant Finance Director/City Controller
Finance Department
SUBJECT
Title
TEFRA HEARING - To hear and consider information concerning the proposed issuance of revenue refunding bonds by California Statewide Communities Development Authority ("CSCDA") for the purpose of financing the acquisition and rehabilitation of El Cazador Apartments by Redwood Housing Partners.
1. ***RESOLUTION - Approving a tax-exempt bond financing to be issued by CSCDA to benefit El Cazador Apartments in the aggregate principal amount not to exceed $15 million
Body
RECOMMENDATION
Staff recommends that the Council first hold a Tax Equity and Financial Responsibility Act ("TEFRA") public hearing and then, upon conclusion, adopt the accompanying Resolution approving the issuance of the Revenue Refunding Bonds by the CSCDA on behalf of Redwood Housing Partners (the "Applicant") in the aggregate principal amount not to exceed $15 million.
EXECUTIVE SUMMARY
The Applicant is seeking to obtain financing for the acquisition and rehabilitation of El Cazador Apartments located in Fresno. The new tax exempt obligations will be issued by CSCDA. As an associate member of CSCDA and a jurisdiction in which some of the facilities are located, the Council must hold a public hearing under the provisions of the TEFRA within the Internal Revenue Code to receive any public testimony regarding the project before it considers authorizing CSCDA to issue bonds for this purpose. Other jurisdictions in which facilities are located will be required to do the same.
Should the City authorize the issuance of bonds, the City would have no obligation or liability associated with this facility or with these bonds.
BACKGROUND
The City has received a request by the Applicant to hold a public hearing regarding a proposed issuance of Revenue Refund...
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