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Murrieta approves TEFRA resolution for $40 million in CMFA bonds for 126 affordable units
Summary
Council adopted a TEFRA resolution allowing the California Municipal Finance Authority to issue up to $40 million in tax‑exempt bonds for the Kensington Apartments project, 126 affordable units; staff stressed the debt will be the borrower's responsibility and not an obligation of the city.
The Murrieta City Council unanimously adopted a TEFRA resolution required for tax‑exempt financing of the Kensington Apartments, a proposed 126‑unit affordable housing project on Washington and South Magnolia.
City Planner Carl Steele summarized the proposal and the financing structure: the applicant has requested that the California Municipal Finance Authority (CMFA) issue up to $40,000,000 in bonds for the project and the financing would use the Tax Equity and Fiscal Responsibility Act (TEFRA) process required by the Internal Revenue Service. Steele told the council that "the loan is not an obligation of the city," and that the borrower — not the city — would be responsible for repayment.
Steele also said the project received a state tax credit award late last year and that the city will not bear issuance costs; staff recommended adopting the TEFRA resolution solely to satisfy IRS and California Government Code requirements so the CMFA may proceed with bond issuance. After staff presentation and no public testimony, Councilmember Holliday moved and Mayor Pro Tem Lavelle seconded the motion to adopt the resolution; the motion carried unanimously (5–0).
What happens next: Adoption of the TEFRA resolution allows the CMFA and the applicant to proceed with the tax‑exempt bond issuance process; staff said the debt would be the borrower's responsibility and the city would not be obligated on the loan.
