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Council holds TEFRA hearing and approves CMFA bond issuance for Hancock Terrace Apartments
Summary
At a TEFRA hearing, the council approved a request that the California Municipal Finance Authority issue tax-exempt bonds up to $105 million for the acquisition and rehabilitation of the 205-unit Hancock Terrace Apartments; staff said the city bears no financial obligation.
The Santa Maria City Council on Jan. 20 held a required TEFRA hearing and adopted a resolution supporting a conduit issuance by the California Municipal Finance Authority (CMFA) for Step Up Housing’s Hancock Terrace Apartments project.
Rebecca Campbell, the city’s finance director, said the borrower, Step Up Housing, is a California nonprofit and asked the council to hold the hearing required by the Internal Revenue Service when tax-exempt debt is used for nonprofit housing. The bonds were described as not to exceed $105,000,000 and would finance acquisition, rehabilitation and improvements for a 205-unit multifamily rental property at 534 East Boone Street known as Hancock Terrace Apartments. Campbell emphasized that the bonds would be the sole responsibility of the borrower and that the city would have no legal or financial obligation for the debt.
Travis Cooper (financial adviser for CMFA) and Mike Potter (representing Step Up Housing) were present for questions. No members of the public requested to speak during the hearing. Following a motion and second, the council adopted the TEFRA resolution by roll call. The roll-call record shows all council members present voted Aye.
What the vote means: The council’s action satisfied the TEFRA public-notice requirement and allows the project to proceed with the CMFA process. City staff noted the state treasurer will execute an approval certificate for the financing under TEFRA rules after the council’s action.
