The Pinole City Council adopted a resolution to satisfy a federal TEFRA hearing requirement and to approve issuance of tax‑exempt bonds by the California Municipal Finance Authority (CMFA) to benefit Step Up Housing for the acquisition and refinancing of a multifamily property at 530 Sunnyview Drive.

Community Development Director Lily Whelan briefed the council that TEFRA (the federal Tax Equity and Fiscal Responsibility Act) requires a public hearing in the jurisdiction where tax‑exempt financing will occur; the council’s approval does not obligate the city to repay the bonds. "The debt to be issued by the CMFA will be the sole responsibility of the borrower and the city of Pinole will have no financial or legal obligations," Whelan said.

Why it matters: the financing will convert the property’s ownership and, according to the project team, will place affordability restrictions on a large share of units and create a funding structure for planned capital repairs and reserves.

Representatives from CMFA, Step Up Housing and the project asset manager described the financing and the planned affordability levels. CMFA representative Ben Barker said the project will not involve "substantial rehab" that would typically trigger prevailing‑wage or other construction labor standards tied to new construction. Step Up Housing board chair Michael Potter said the plan will restrict 75% of the project’s units: 20% of units will be set at 50% of area median income (AMI) and 55% at 80% AMI. The project team said they expect a bonds issuance below the $65 million cap; staff described an anticipated issuance in the neighborhood of $49.2 million with roughly $39.9 million toward purchase, and about $3 million earmarked for capital improvements and reserves.

A NorCal Carpenters Union representative, Chris Palomo, urged the council to require enforceable labor standards if construction or rehabilitation work takes place, saying tax‑exempt projects should protect workers. Project partners said the current scope contemplates limited capital work and that large‑scale rehab is not planned; they described planned capital spending as modest and spread over time.

The council approved the TEFRA resolution on a roll‑call vote. Council member Toms made the motion; the motion passed by roll call with Mayor Sisai, Council members Toms, Murphy and Martinez Rubin voting in favor and Mayor Pro Tem Tave absent.

Ending: The resolution satisfied the public‑hearing requirement under TEFRA and allows CMFA to proceed as issuer; the project team indicated detailed regulatory agreements will specify unit counts, income restrictions and capital work.