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Board approves TEFRA hearing and supports $50M tax‑exempt bond for 106‑unit Coral Creek affordable housing
Summary
The Board held a TEFRA public hearing and adopted a resolution approving tax‑exempt bond issuance by CMFA for Coral Creek, a proposed 106‑unit 100% affordable project in Windsor, with no county liability; staff estimated a small cost recovery payment to the county.
The Sonoma County Board of Supervisors on Aug. 12 approved a TEFRA public hearing to facilitate tax‑exempt bond financing for Coral Creek Apartments, a proposed 106‑unit affordable rental development in Windsor.
Michelle Whitman of the Community Development Commission explained the California Municipal Finance Authority (CMFA) would issue tax‑exempt bonds in an amount not to exceed $50 million; the proceeds would finance acquisition, construction and equipping of the project at 8975 Conde Lane. "This is a 100% affordable development," Efren Carrillo, representing Coral Creek Limited Partners, told the Board. He said 20% of units would serve households at 50% AMI and the remainder at 80% AMI.
Staff emphasized the financing structure is a private loan and the county will have no legal obligation for repayment; financing documents will disclaim any county obligation. CMFA will distribute a portion of its issuance fee to the county after closing; staff estimated about $15,000 would be remitted to cover staff time.
Supervisor questions focused on bond market rates and the role of tax‑exempt financing in reducing construction financing costs for affordable housing. The developer said tax‑exempt structures can substantially reduce financing costs compared with conventional construction loans, which can be considerably more expensive.
The Board voted by voice to adopt the TEFRA resolution and approve the issuance steps, with no public opposition on the record.
