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Council holds TEFRA hearing, approves support for CMFA tax-exempt bonds for Franciscan Town & Country project
Summary
The council held the required TEFRA hearing and voted to adopt a resolution expressing the City of Salinas' approval for the California Municipal Finance Authority to issue tax-exempt bonds for a multi-jurisdictional affordable housing financing package that includes a Salinas mobile home property.
The Salinas City Council held a TEFRA (Tax Equity and Fiscal Responsibility Act) hearing on May 13 and adopted a resolution indicating the city's support for issuance of tax-exempt revenue bonds by the California Municipal Finance Authority (CMFA) for a multifacility affordable housing financing package that includes a property in Salinas.
Acting Assistant Finance Director A. Pedroza explained that Curitas Affordable Housing, Inc. requested CMFA issue up to $87 million in tax-exempt bonds; a portion of the proceeds will pay acquisition and improvements across multiple California jurisdictions. The Salinas property tied to the request was described in staff materials as the project at 20 Russell Road, referred to in the report as the "California Hawaiian Project" and as the Franciscan Town and Country mobile home park.
Pedroza said TEFRA hearings are required in each jurisdiction where financed projects are located, and that the CMFA is the issuer; the bonds will be the sole responsibility of the borrower and not an obligation of the City of Salinas. Ben Barker, representing CMFA, told the council the Salinas portion would serve about 67 families. Pedroza also said a portion of any issuance fee attributable to the city would be granted to the city general fund, and estimated roughly $15,000 could accrue to Salinas depending on total bonds issued.
After brief public comment and council questions on numbers of families served and expected city grant amounts, the council voted to adopt the TEFRA resolution to allow the CMFA issuance process to proceed. The motion carried unanimously.
