Report to Mayor and City Council
Wednesday, March 06, 2024
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING UNDER THE TAX AND EQUITY FISCAL RESPONSIBILITY ACT TO CONSIDER RESOLUTION NO. 24-023 TO APPROVE CONDUIT BOND FINANCING FOR THE AVALON COURTYARD APARTMENTS AFFORDABLE HOUSING PROJECT THROUGH THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
Body
I. SUMMARY
This action is to conduct a public hearing under the Tax and Equity Fiscal Responsibility Act ("TEFRA") in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the "CMFA"), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $20,000,000, (the "Bonds"), to finance or refinance the acquisition, rehabilitation, improvement and equipping of a senior multifamily rental housing project located at 22121 S. Avalon Boulevard, Carson, California (the "Project") and to adopt a resolution to approve the financing of the Project by the CMFA.
TEFRA hearings are required under Federal tax law where a local legislative body must approve a resolution considering the issuance of tax-exempt financing in its jurisdiction. It does not create any financial obligation on the part of the local body but is strictly an acknowledgement and approval of the third party debt issuance.
II. RECOMMENDATION
Recommendation
1) OPEN the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the "Code") and take testimony.
2) CLOSE the public hearing.
3) ADOPT Resolution No. 24-023, approving the issuance of the Bonds by the CMFA for the benefit of Avalon TSA Housing LP (the "Borrower") a partnership of which Thomas Safran & Associates Development, Inc. (the "Developer") or a related person to the Developer is the general partner, to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California...
Click here for full text