For City Council Meeting [February 27, 2024]
TO: Honorable Mayor and City Council
FROM: David N. Carmany, City Manager
AUTHOR: Colby Cataldi, Director of Community Development
Title
Setting a Public Hearing for March 12, 2024, to Conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing regarding issuance of Tax-Exempt Bonds for Citrus Grove Apartments.
Body
BACKGROUND
National Community Renaissance of California (or an affiliate thereof) (the "Borrower") has requested that the California Statewide Communities Development Authority ("CSCDA") serve as the municipal issuer of tax-exempt multi-family housing revenue bonds in an aggregate principal amount not to exceed $70,000,000 (the "Bonds"). The proceeds of the Bonds will be used for the purpose of making a loan to the Borrower, to enable the Borrower to finance the acquisition, rehabilitation, improvement and equipping of a 152-unit affordable multifamily housing rental project located at 1432 North Willow Avenue, Rialto, California (the "Project"), which will be owned and operated by the Borrower. On December 6, 2023, the project received an award of private activity bond allocation from the California Debt Limit Allocation Committee.
ANALYSIS/DISCUSSION
In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Rialto ("City") must conduct a public hearing (the "TEFRA Hearing") providing the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Adoption of the resolution is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA), the Internal Revenue Code and the California Government Code Section 6500 (and following). Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting t...
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