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San Bernardino holds TEFRA hearing; council approves tax-exempt financing for Village Green preservation
Summary
City held a TEFRA public hearing and adopted a resolution to allow the California Municipal Finance Authority to issue tax‑exempt bonds for preservation and rehabilitation of Village Green Apartments; city is not obligated to repay the bonds and any city participation will be decided later.
The San Bernardino City Council held a public hearing on Aug. 6 and adopted a resolution to satisfy the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA) so the California Municipal Finance Authority can issue tax‑exempt bonds for the Village Green Apartments preservation project.
City staff said the debt would be issued by the California Municipal Finance Authority on behalf of the borrower and that the city would not be obligated to repay the bonds. The housing division told the council the bond amount is “not to exceed $46,000,000” and that the city’s share, if any, is still under review; staff said an estimated city contribution under consideration would be $4,000,000 and that the amount and funding source would be returned to council for a formal commitment if needed.
The housing division said the financing would extend current affordability controls. “The existing affordability of the project is currently set to terminate in 2029,” a staff speaker explained, and the proposed financing would extend affordability for 55 years and “deepen affordability for an additional 20% of the units,” while modernizing building systems and expanding accessibility.
Representatives of Security Properties, the project sponsor, answered council questions about parking and site constraints. Sean Burrows, director of affordable housing for Security Properties, said the property has “300‑some odd parking spaces” now and that managers are evaluating options to add spaces but face accessibility and zoning constraints. Burrows also said the team will include water‑efficiency improvements as part of the rehabilitation package.
One member of the public, Christian Shaughnessy of the Second Ward, urged council to approve the financing to increase available rental housing for working families.
Council closed the public hearing and moved to adopt the TEFRA resolution; the motion passed with no objection. City staff noted the TEFRA action is required only to allow issuance of tax‑exempt bonds by CMFA; any direct city funding or commitment would come back for separate council consideration after staff completes financial verification and regulatory compliance checks.
The council action satisfies the federal TEFRA public‑hearing requirement and clears the way for the borrower to continue bond financing with CMFA; staff said the debt will be the borrower’s responsibility and the documents will include disclaimers that the loan is not an obligation of the city.
City staff said if additional funding is required for the rehabilitation beyond the bond proceeds, staff will return with details of proposed sources and a recommendation for council action.
