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Board narrowly approves $12M TEFRA bond authorization for Diamond Village phase 2 after traffic and safety debate
Summary
After extended debate about evacuation routes and road capacity, the board approved a TEFRA resolution authorizing up to $12 million in tax‑exempt bonds for Diamond Village Apartments phase 2, 3–2; the board also directed staff to develop a countywide resident‑preference/prioritization program and report back within six months.
The El Dorado County Board of Supervisors approved a TEFRA resolution March 10 authorizing up to $12 million in tax‑exempt bonds to support construction of Diamond Village Apartments phase 2, a 31‑unit affordable housing project restricted to households at or below 80% of area median income. The action passed on a 3–2 vote after supervisors debated whether authorizing the financing should proceed while nearby road capacity and evacuation concerns remain unresolved.
Planning staff explained that TEFRA (the federal notice/hearing requirement) requires a public hearing by the local governing body where the project is located and that the California Municipal Finance Authority (CMFA) would be the issuer. CMFA and the developer said the bonds and 4% low‑income housing tax credits are time‑sensitive: if construction does not begin within the allocation window (about six months after allocation), the financing and credits could be lost and the project rendered infeasible.
Opponents on the board — citing congested evacuation corridors near Pleasant Valley Road and Highway 49 and remaining work on the Diamond Springs Parkway — argued that adding units before sufficient road capacity is in place could increase risks to residents in emergencies. Supporters stressed that TEFRA is an authorization for financing only (the county assumes no fiscal liability) and warned that refusal could prompt HCD oversight or make the project economically unworkable.
After the vote the board gave staff direction to develop a countywide resident‑preference/prioritization program for affordable housing applications (county resident preference) and to report back within six months. The immediate TEFRA authorization allows the developer to pursue the bond allocation and meet tax‑credit timing constraints, with construction start targets discussed between the developer and DOT.
