Milpitas council approves TEFRA hearing and up to $25M in tax‑exempt bonds for 75 affordable units on California Circle

The Milpitas City Council on March 3 conducted a TEFRA public hearing and adopted a resolution approving the issuance of tax‑exempt multifamily revenue bonds by the California Municipal Finance Authority for the California Circle Family Apartments project at 1355 California Circle.

Staff and the authority explained the issuance — not to exceed $25 million — would finance acquisition, construction and project improvements for the affordable apartment component of a larger development. City staff and the authority representative clarified that the borrower (the developer) is solely responsible for bond repayment; the city carries no financial or legal obligation for repayment. The city will receive a modest bond issuance fee (approximately $13,500), staff said.

The project includes 75 units restricted to very‑low and low income households (mix cited as roughly 30%–70% AMI levels across units for qualification), representing just over 36% of the overall development’s total units; the regulatory agreement and deed restrictions for affordability were described as a 55‑year term. The authority representative said, “The regulatory agreement or the deed restriction is for 55 years,” and noted owners have options at the end of that term, including reapplying for restrictions or converting to market rate depending on owner intent.

A member of the public spoke in favor, and the council voted 5‑0 to adopt the resolution following the TEFRA hearing.

The city manager’s office and housing staff said they will complete the affordable‑housing regulatory agreement and continue coordination during plan check and permitting; staff reported a target construction start in June. The approval is a necessary local government action to allow the authority to proceed with bond issuance and associated federal/state tax credit financing.