Council approves TEFRA hearing outcome to clear way for Village Green Apartments bond financing

The City of San Bernardino on Aug. 6 opened and closed a TEFRA public hearing and adopted a resolution allowing the California Municipal Finance Authority (CMFA) to issue tax-exempt bonds for the preservation and rehabilitation of Village Green Apartments in Ward 3.

City housing staff said the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) requires a local public hearing and approval before a tax-exempt bond issued off‑city books can proceed. "The bonds are to be issued by the California Municipal Finance Authority, CMFA, on behalf of the project, and the city is not obligated to repay them," housing staff said during the presentation. "The repayment is reliant on the project. The city's responsibility is to host and adopt the resolution." The staff presentation estimated the bond issuance amount would not exceed $46,000,000 and said any city contribution — currently estimated at $4,000,000 — would be reviewed separately.

Adoption of the resolution satisfied the federal TEFRA requirement and allows the borrower to continue securing tax‑exempt financing. "Without this hearing and approval, the project cannot move forward with the tax-exempt financing," housing staff told the council.

Why it matters: Project supporters said the bond-based preservation would extend existing affordability controls and modernize an aging property. Housing staff said current affordability protections at Village Green were set to expire in 2029; the financing would extend affordability for 55 years and deepen affordability for an additional 20% of units. Developers and staff said the planned rehabilitation would upgrade building systems, expand accessibility and improve site function.

Developer representatives said financing and scope details remain under review. "They did do a full property needs assessment, and it is a combination of the common areas [and] units," said Sean Burrows, director of affordable housing for Security Properties, the preservation project's developer. On parking — a frequent resident complaint — Burrows said: "There are accessibility constraints for adding new parking. The site has the great benefit of being on a very large parcel, but there are space considerations and kind of managing the...competing constraints of accessibility, cost and all those things."

Public comment at the hearing included support from neighborhood speakers who urged the council to approve the resolution so the project could move forward. Christian Shaughnessy, a Second Ward resident, said: "Whenever there's a housing item on the agenda... I encourage council to go and vote yes on this so we can move forward and increase the housing stock and do everything we can to make rental housing…more affordable for our working families here in the city of San Bernardino."

Council discussion focused on timing, funding sources and resident concerns. Councilmember Ortiz asked when the council could expect a follow-up with firm financing details; staff said financial reviews were ongoing and that a later council meeting — possibly in September or October — would return for formal budget or funding commitments. Staff reiterated that the city would not be legally obligated to repay the bonds and that CMFA would be the issuer.

The council then voted to adopt the TEFRA resolution and related documents required to proceed with the tax-exempt bond issuance. The motion passed unanimously.

What remains: Staff said the city will continue reviewing financial documents. If additional funding beyond currently identified sources is needed, staff will return to the council seeking a formal commitment and any required budgetary actions. The developer said it would provide further details on the rehabilitation scope, final budgets and a plan to address resident concerns such as parking and drainage.

Provenance (transcript evidence): Housing staff presentation (topicintro): transcript block starting at 1649.49 — "The housing division is requesting this public hearing... TEFRA requires a public hearing"; topicfinish: transcript block starting at 2354.89 — "Motion passes unanimously."