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Murrieta council approves TER Act findings for two affordable-housing financings
Summary
The council adopted federal TEFRA/TERA compliance findings tonight to allow the California Municipal Finance Authority to issue tax-exempt bonds for the Jefferson 82 and Vista Heights affordable-housing projects; staff said the city will have no financial obligation. Council members pressed for transparency on planning and parking.
The Murrieta City Council voted unanimously April 21 to adopt findings under the federal tax-equity procedures that allow the California Municipal Finance Authority to issue tax-exempt bonds for two local affordable-housing developments.
City Planner Carl Steele told the council the Jefferson 82 project is a four‑story, 82‑unit apartment building on a city-owned two‑acre site and that the borrower has requested up to $20 million in bond financing. Staff said the bond debt will be the sole responsibility of the borrower and the city will not be legally obligated to repay it.
At a second public hearing the council similarly approved the Vista Heights project — a 214‑unit affordable complex — for up to $42 million in CMFA bond financing under the same federal procedures.
“Under the law we are not approving the project or the loan repayments,” a city attorney explained during the Jefferson 82 hearing, describing the council’s vote as a procedural compliance step required by the Internal Revenue Code.
Council members used the hearings to press for clarity about project approvals and local impacts. Council Member Stone said he was unhappy the Jefferson 82 project had been approved administratively last year without a planning‑commission hearing and warned residents about limits on local control over state housing mandates. “I’m not happy that I have to vote for this,” Stone said, adding that the council’s role was constrained by state law.
Council Member DeForest asked staff to reiterate that the city bears no financial risk for the bonds. Staff and the city attorney confirmed the issuer (CMFA) and borrower are responsible for repayment and financing costs.
Council members also raised parking concerns tied to the state density‑bonus law, which can reduce local parking requirements for affordable projects. Staff said density‑bonus standards limit the city’s authority to require additional parking beyond what state law allows.
Both TER Act findings passed on unanimous 4–0 votes. No substantive public testimony was offered at either hearing.
