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Council holds TEFRA hearing and approves financing for Via Verde affordable housing; modifies residual receipt shares
Summary
Council conducted a TEFRA public hearing supporting up to $60M in CMFA bonds for Abode Communities’ Via Verde (108 units) and approved staff adjustments to the city's residual‑receipt share for Chelsea and Abode projects so financing can close; staff said the city has no repayment obligation.
The council held a TEFRA public hearing on March 25 and approved a resolution supporting potential tax‑exempt bond financing by the California Municipal Finance Authority for Abode Communities’ Via Verde affordable housing project (108 units) in an amount not to exceed $60,000,000. Staff emphasized that the bonds would be the borrower's obligation and that the city assumes no legal or financial responsibility for debt repayment.
Separately, staff requested and the council approved adjustments to the city's pro‑rata residual‑receipts shares for Chelsea Investment Corporation’s Sixth Street Senior Apartments and Abode’s Via Verde project. Staff explained that residual receipts — the operating surplus after expenses and mandatory payments — are distributed to lenders and government sources per loan documents, and that the modified split reflects the projects’ financing stacks.
Staff said Via Verde has secured multiple government funding sources and tax credits and expects to close financing soon; construction was projected to begin shortly after closing, with completion anticipated in 2027. Public comment included general observations about the pro‑rata structure from one commenter.
Council adopted both the TEFRA resolution and the staff recommended modification to residual receipts.
