Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing topic
No spam. Unsubscribe anytime.
Council opens path for tax‑exempt bond financing for 109‑unit Palm Villas affordable housing project
Summary
The council held a TEFRA hearing and approved a resolution allowing the CSCDA to issue tax‑exempt multifamily housing revenue bonds (up to $25 million) for Palm Villas at State, a 109‑unit affordable rental project; construction is slated to begin in November 2026 and complete in 2028, the developer said.
The council conducted a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing for Palm Villas at State, a proposed 109‑unit multifamily affordable housing project, and voted unanimously to approve Resolution 2026‑109 allowing the California Statewide Communities Development Authority (CSCDA) to issue tax‑exempt multifamily housing revenue bonds not to exceed $25 million for Hemet PV Partners LP.
Community Development Director Monique Alanise Flater described the project site at the northwest corner of State Street and Menllo Avenue and summarized prior council approvals, funding awards and entitlements. She said the bonds would be issued by CSCDA, are not a fiscal obligation of the City of Hemet, and would enable the borrower to finance acquisition, rehabilitation and equipping of the property with affordability covenants extending an additional 55 years after closing.
Charles Cohen, project manager with Palm Communities (joining virtually), said construction was planned to start in November 2026 with project completion targeted for September 2028. He added that 28 of the units would be targeted to households at risk of homelessness, while the rest would serve households at roughly 30–60% of Area Median Income.
Council voted to approve the resolution. Staff reiterated that the city itself is not a party to the financing documents and bears no repayment responsibility for the bonds.
