Council joins CMFA’s BOLD program to allow optional development‑funding tools

The Los Banos City Council on Oct. 15 adopted resolutions authorizing the city to join the California Municipal Finance Authority (CMFA) and participate in its Bond Opportunities for Land Development (BOLD) program.

CMFA managing director Ralph Holman explained that BOLD lets developers apply for CFD financing that CMFA forms and administers on behalf of participating projects. The program is designed to aggregate small projects into pooled bond issuances and to outsource the administrative and disclosure work to CMFA. Holman said projects typically need a minimum of approximately $500,000 in improvements to be cost-effective under the program.

During public comment, speakers asked whether the city could perform CFDs in-house and whether BOLD participation would increase costs for new homeowners. Staff and the CMFA representative said the city would retain control: joining the program imposes no cost on the city and does not obligate the city to accept any particular development application or tax; participation would create a voluntary financing option and could accelerate infrastructure funding that otherwise would be paid over time through permit fees or other mechanisms.

Councilors asked about affordability and the risk that developers might benefit while homeowners incur a special tax. Holman and staff said the financing shifts the timing of impact‑fee payments to a tax on the property (similar to a Mello‑Roos CFD) but that market forces generally affect sale prices; they described the city’s role in negotiating what infrastructure will be financed and stressed that participation does not change existing impact‑fee levels."