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Board holds TEFRA hearing, approves issuance of tax-exempt bonds for senior housing project
Summary
After a public hearing, the board approved a resolution required by federal tax rules to allow CFMA to issue up to $11 million in tax-exempt revenue bonds for the Lone Oak Senior 2 Apartments in Penn Valley; staff emphasized the county will have no repayment obligation.
The Board of Supervisors held the required TEFRA public hearing April 14 and adopted a resolution supporting the issuance of tax-exempt revenue bonds by the California Municipal Finance Authority (CMFA) for the Lone Oak Senior 2 Apartments in Penn Valley.
Tyler Barrington, director of Housing and Community Services, explained the bonds (not to exceed $11 million) would finance or refinance acquisition, construction, improvement and equipping of the senior multifamily rental project at 10528 Bridal Oak Court. Barrington said the bonds would be issued by CMFA and the borrower, Pacific West Communities, would be solely responsible for repayment; the county would bear no financial or legal obligation.
Travis Cooper, a financial adviser for CMFA, told the board the public hearing is an IRS requirement that gives local residents an opportunity to comment about tax-exempt financing for privately developed projects. No speakers asked technical questions during the hearing. The board moved and voted to adopt the TEFRA resolution (unanimous).
What happens next: The county's action satisfies the TEFRA requirement; bond issuance and any final financing details will proceed through the issuer and the borrower per CMFA processes.
