Housing authority approves TEFRA hearing for Socorra affordable housing project; CalPFA to issue bonds

The Sacramento Housing and Redevelopment Agency requested and the Housing Authority approved a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and recommendation for issuance of tax‑exempt bonds by the California Public Finance Authority for the Socorra affordable housing project.

Staff planner Whitney Hinton told the Housing Authority the Socorra project is a new‑construction, five‑story building proposed for 0.8 acres at 2000 Sixteenth Street with 34 studios and one‑bedroom units serving households at 30–60% of area median income. Hinton said the project would include about 2,000 square feet of ground‑floor commercial space and on‑site amenities including a dog run, storage for up to 70 bikes, laundry rooms on all five floors, a multipurpose community room and a ground‑floor courtyard.

“This project will be jointly developed with Capital Area Community Development Corporation and Mutual Housing California,” Hinton said. “Mutual Housing would be the property management company and the resident service provider.”

Council members questioned why the California Public Finance Authority, a non‑city issuer, was being used rather than the city acting as bond issuer. Council member Dickinson said the city typically issues bonds to retain long‑term monitoring authority and oversight. Christine (last name given in the meeting as a staff representative) responded that the developer had already established a relationship with CalPFA and progressed far in that issuer’s process before City staff became involved. “In this one case, the developer had already had a relationship with CalPFA on this property and had applied for bonds prior to working with us,” she said, adding that the city made an exception because the project was far along.

Dickinson pressed on oversight implications if the city is not the bond issuer. Christine said SHRA conducted due diligence on construction specifications, budgets and the property management plan; staff reviewed minimum construction standards and determined the project’s maintenance reserves appear sufficient for the first 15–20 years. She cautioned, however, that because the city will not be the legal bond issuer, SHRA would not have authority to perform the usual annual monitoring of tenant income certification or file reviews. “We won’t have any legal ability to do any of those things,” she said.

Council members asked whether the city could reach a contractual arrangement with CalPFA to preserve some oversight or performance standards; staff said they could reach out to CalPFA to explore options. Council member Dickinson also noted developers have sought other issuers because of lower fees; staff said the city has adjusted its fees to be competitive.

Vice Mayor Palaman presided after the mayor recused himself because of proximity to the project. The Housing Authority opened and closed the public hearing and moved to recommend the TEFRA hearing and issuance; a roll call vote was taken with the mayor recused and the measure passing.

The Housing Authority’s approval at the meeting was a recommendation to conduct the TEFRA hearing and allow the CalPFA bond issuance; specific bond terms and any subsequent agreements with CalPFA were not detailed at the hearing and were not voted on at this meeting.