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Council approves up to $45 million in tax-exempt bonds for Arrowhead Grove Phase 4

April 05, 2025 | San Bernardino, San Bernardino County, California


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Council approves up to $45 million in tax-exempt bonds for Arrowhead Grove Phase 4
The San Bernardino City Council on Tuesday unanimously approved a resolution authorizing up to $45 million in tax‑exempt bonds to finance Arrowhead Grove Phase 4, a 92‑unit affordable rental housing development by National Core.

The payment of the bonds will be the responsibility of the project and the issuing authority, the California Statewide Communities Development Authority; the city said it will not be obligated to repay the bonds. The financing mechanism—commonly used for affordable housing—reduces development borrowing costs and will be repaid from the project’s rental revenue, staff said.

Housing staff conducted the public hearing required under TEFRA (the Tax Equity and Fiscal Responsibility Act of 1982) and described the project as a collaborative effort among the developer, the Housing Authority of the County of San Bernardino, the county and the city. The city has conditionally committed about $4.9 million in HOME funds to the project; staff said a formal HOME commitment will return to council in June 2025.

City staff described programmatic features that will be part of the Phase 4 site: a community center with health‑related services in the north wing and nonprofit office space in the east wing to host social services for neighboring residents. The total development cost for the broader Arrowhead Grove development was reported in the presentation as approximately $135.5 million to date for phases 1–4.

Councilmember Theodore Sanchez moved approval; Councilmember Kanas seconded. The roll call vote recorded support from Councilmembers Sanchez, Ibarra (recorded in the roll as Ybarra earlier in the meeting transcript), Mayor Pro Tem Figueroa, Charette, Kanas, Flores and Ortiz; the motion passed unanimously.

Staff emphasized there is no direct fiscal impact to the city’s general fund from the bond issuance and said the city’s role is limited to hosting the hearing and adopting the required resolution.

The council meeting record shows the TEFRA hearing was opened for public comment and closed before council deliberations and the vote; no members of the public remained to speak at the hearing when it closed.

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