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Council clears TEFRA hearing for $80M tax-exempt bonds for Tustin Legacy housing project
Summary
Council held the required public hearing and adopted a resolution permitting issuance of up to $80 million in tax-exempt bonds for a 334-unit rental project at Tustin Legacy; city stated it will bear no financial obligation and the bond issuer will be California Municipal Finance Authority.
The Tustin City Council conducted the federal TEFRA public hearing required for issuance of tax-exempt bonds and adopted the city resolution enabling the proposed financing for USA Tustin Legacy 5 and 6.
Staff described the request from USA Properties Fund Inc. for issuance of up to $80,000,000 in tax-exempt bonds to finance a 334-unit rental development at Tustin Legacy. Council documents and staff stated the California Municipal Finance Authority would issue the bonds and that the city would have no financial or legal obligation for the debt.
Staff noted that 25% of the total units will be set aside as affordable to lower‑income households. No members of the public requested to speak on the item. Council voted on the resolution to satisfy the Tax Equity and Fiscal Responsibility Act (TEFRA) hearing requirement; the motion passed 5–0.
Next steps: the financing will proceed with the financing authority and borrower; the city's action was a procedural determination required under federal tax rules.
