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Council approves TEFRA hearing resolution for mobile‑home project; staff says city has no repayment obligation
Summary
The Salinas City Council adopted a TEFRA resolution allowing the California Municipal Finance Authority to issue tax‑exempt revenue bonds for a multi‑jurisdiction affordable housing financing that includes the Franciscan Town & Country mobile‑home site in Salinas.
The Salinas City Council adopted a resolution on Tuesday making findings required under the federal Tax Equity and Fiscal Responsibility Act (TEFRA) to allow the California Municipal Finance Authority (CMFA) to issue tax‑exempt revenue bonds for a statewide affordable-housing financing package that includes a Salinas mobile‑home project.
A. Pedrosa, acting assistant finance director, told the council the CMFA seeks authority to issue up to $87,000,000 of tax‑exempt revenue bonds to finance acquisition and improvements across multiple jurisdictions; the Salinas property involved was described in staff materials as the California Hawaiian Project at 20 Russell Road and referred to in presentation material as the Franciscan Town & Country Mobile Home Park.
Pedrosa and CMFA representatives emphasized that the debt will be the borrower’s sole liability, that the city would not be financially or legally responsible for repayment and that disclaimers in the financing documents would note the city bears no obligation. Ben Barker, representing CMFA, told council members the Salinas property component would house 167 families in the mobile‑home park portion of the larger financing package.
Councilmembers asked about local benefits. Barker said roughly $30 million of the proposed issuance would be invested in projects in Salinas; he also said a portion of the issuance fee attributable to the city would be granted by CMFA to the city and that the amount to the city could be roughly $15,000, though Barker added the final amount varies with the total bonds issued.
After brief public comment, the council voted to adopt the TEFRA resolution to satisfy federal notice requirements and permit CMFA to proceed with the bond issuance process. The council’s vote was unanimous.
City staff noted that adoption of the TEFRA resolution is a required procedural step and that the issuance itself would be the responsibility of CMFA and the borrower; the city will not incur costs related to principal or interest on the bonds. Staff said final bond documents will include disclaimers that the bonds are not city obligations and that the city will bear no issuance cost.
The item was presented as a consent/regular matter; the council adopted the resolution as part of the formal record and directed staff to continue coordination with the CMFA for any follow-up items needed to document the TEFRA hearing for the issuance.
