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Council approves tax‑exempt bonds to rehab 240‑unit Centa Apartments, pledges tenant protections
Summary
The council held a TEFRA public hearing and approved a resolution allowing CSCDA to issue qualified 501(c)(3) bonds (not city debt) for Bedford Centa Apartments to finance acquisition and rehabilitation of a 240‑unit property. Staff and the sponsor said no mass displacement is planned and units will be rehabilitated through natural turnover with required affordability set‑asides.
The Oceanside City Council on April 8 held a TEFRA public hearing and adopted a resolution approving the issuance of qualified 501(c)(3) tax‑exempt bonds by the California Statewide Communities Development Authority (CSCDA) for the benefit of Bedford Centa Apartments LLC. The bonds — not issued by the city and not city debt — would finance acquisition and rehabilitation of a roughly 240‑unit multifamily property at 3851 Sherborn Drive.
Housing staff said the financing structure requires at least 75% of units to be occupied at or below 75% of area median income (AMI) over time, including federal minimum set‑asides: at least 20% of units at 50% AMI or 40% at 60% AMI depending on the structure. Presenting staff said rehabilitation work will be phased and completed as natural turnover occurs; no mass tenant relocation or immediate evictions were anticipated. Sponsor representatives confirmed that existing tenants who qualify under the income limits will be retained and that units would be reserved for qualified households as vacancies arise.
Staff also emphasized that the bonds are the borrower’s responsibility and would be issued by CSCDA under Internal Revenue Code section 145 and TEFRA public‑hearing requirements; the city’s action was limited to holding the required TEFRA hearing. After public comment — including concerns about the supply of very low‑income units — the council voted 5‑0 to approve the resolution.
Next steps: CSCDA and the borrower will complete required financing documents; staff will coordinate tenant outreach in English and Spanish per council direction.
