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Council holds TEFRA hearings and approves tax‑exempt bond issuances for two multifamily projects
Summary
Council held TEFRA public hearings and adopted resolutions allowing the California Municipal Finance Authority to issue tax‑exempt bonds (not to exceed $115M and $35M) for two USA Properties Fund projects; the city confirmed it bears no repayment obligation.
The Rockland City Council hosted two Tax Equity and Fiscal Responsibility Act (TEFRA) public hearings April 14 for projects sponsored by USA Properties Fund and asked the council to adopt resolutions required by federal tax rules.
Management analyst Megan Bresson outlined the first TEFRA request for WJU 719 LP, a 324‑unit multifamily project, where the California Municipal Finance Authority would issue tax‑exempt bonds not to exceed $115 million. Bresson said the borrower and CMFA requested the city hold the public hearing required by TEFRA and that the City of Rockland would have no legal or financial obligation for repayment; all documents would disclaim city liability.
Lloyd Reber, a field representative with Carpenters Local 46, asked the council to table both TEFRA items until developers provided assurances that workers would receive living wages and healthcare coverage, and suggested allowing voters to decide on subsidies. Staff answered that the city was not investing funds in these specific projects and that TEFRA hearings are a federal procedural requirement for the proposed financing.
After discussion, council adopted both TEFRA resolutions unanimously: the first allowing CMFA bond issuance for the 324‑unit project (not to exceed $115 million) and the second allowing CMFA bond issuance for Rockland Sierra 703 LP (not to exceed $35 million for a 180‑unit project). Staff reiterated the city will bear no repayment obligation and that the financing is the borrower’s responsibility.
