REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Lori Ann Farrell Harrison, Interim City Manager
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
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Conduct a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing and adopt Resolution No. 2019-39 approving the issuance by the California Statewide Communities Development Authority ("CDCDA") of Multifamily Housing Revenue Bonds in an amount not to exceed $28,000,000 for Hermosa Vista Apartments, located at 15363 & 15425 Goldenwest St., with no City obligations
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Statement of Issue:
The City Council is asked to conduct a public hearing under the Tax and Equity Responsibility Act ("TEFRA") in connection with the proposed issuance of tax-exempt bonds by the California Statewide Communities Development Authority ("CSCDA") to issue Multifamily Housing Revenue Bonds for the Hermosa Vista Apartments, an existing 88-unit apartment complex located at 15363 & 15425 Goldenwest Street (the "Project"), in an aggregate amount no to exceed $28,000,000 (the "Bonds"). The Bond proceeds will be used by the Borrower for the purpose of re-financing the acquisition, rehabilitation, improvement, and equipping of the multifamily housing rental project.
Financial Impact:
There is no fiscal impact to the City. The Bonds will be issued as limited obligations of CSCDA, payable solely from revenues and receipts derived from a loan to be made by CSCDA to the Borrower with the Bond proceeds. The City bears no liability with respect to the issuance of the Bonds. Further, the City is not a party to any of the financing documents related to the Bond issuance and is not named in any of the disclosure documents describing the Bonds or the proposed financing.
Recommended Action:
recommendation
A) Conduct a public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended ("IRS Code"), in consideration of th...
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