Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Finance topic
No spam. Unsubscribe anytime.
Board OKs tax‑exempt financing hearing for Lone Oak Senior 2, up to $11 million
Summary
Following a TERA hearing, the board adopted a resolution approving proposed issuance of tax‑exempt bonds by the California Municipal Finance Authority to finance Lone Oak Senior 2, a senior rental project in Penn Valley; the county will bear no repayment responsibility, staff said.
The Board of Supervisors adopted a resolution at the April 14 meeting to satisfy the public hearing requirement of the federal Tax Equity and Fiscal Responsibility Act (TERA) for proposed tax‑exempt financing not to exceed $11 million for the Lone Oak Senior 2 apartments in Penn Valley.
Tyler Bington, the county's director of housing and community services, explained the request: the developer seeks CFMA (California Municipal Finance Authority) issuance of tax‑exempt revenue bonds to finance acquisition, construction and equipping of 10528 Broken Oak Court (Lone Oak Senior 2). He emphasized the bonds are the borrower's responsibility and that the county would bear no legal or financial obligation for debt repayment. "This debt to be issued by CFMA will be the sole responsibility of the borrower," Bington said.
Travis Cooper, financial adviser for CMFA, told the board the public hearing is an IRS requirement for tax‑exempt financing and that the county's role is limited to the hearing; the underlying loan remains a private arrangement between developer and lender.
The board voted unanimously to approve the resolution required by TERA; supervisors said they looked forward to senior housing moving forward in Penn Valley.
What happens next: If the developer proceeds with CMFA bond issuance and financing closes, the project will proceed under standard building and financing milestones; the county will not be liable for bond repayment.
