Council approves TEFRA hearing and plan of finance for Olive Park Apartments
Loading...
Summary
Council held a TEFRA hearing and approved a resolution allowing the California Municipal Finance Authority to issue up to $75 million in tax‑exempt multifamily housing revenue bonds for the 199‑unit Olive Park affordable housing project; staff noted total development costs of about $144 million and city participation of $6 million and project‑based vouchers.
The council opened a TEFRA (Tax and Equity Fiscal Responsibility Act) public hearing for financing of Olive Park Apartments and received a staff presentation from Sal Roman of Housing & Neighborhood Services. Roman said the project proposes 199 affordable apartments on a roughly six‑acre site near College Boulevard Sprinter Station, with units targeting 30–80% of area median income and a substantial portion reserved for very low‑income households.
Total development costs were presented at approximately $144 million (about $724,000 per unit). The financing plan relies primarily on tax‑exempt bonds and low‑income housing tax credits. The city’s prior commitments include $6 million approved through the competitive NOFO process and a package of project‑based vouchers (40) and 15 VASH vouchers for veterans. Staff said the requested California Municipal Finance Authority bond issuance would be up to $75 million; counsel explained that the bonds would be non‑recourse to the city and secured by project revenues.
A member of the public asked why the title included “finance and refinance” and questioned the per‑unit cost; staff and applicant representatives explained the title is technical for IRS requirements and that high regional construction costs, prevailing wage rules, layered financing and professional fees account for the per‑unit figure. Councilmember Weiss moved approval of the staff recommendation; the council approved the resolution by roll call with Mayor Sanchez recorded as voting no.
