ADMINISTRATIVE REPORT
MEETING DATE: May 14, 2025 AGENDA CATEGORY: Hearings TO: Honorable Mayor and City Council
FROM: Virginia Gennaro, City Attorney
DATE: April 28, 2025
SUBJECT: Public Hearing to consider a resolution approving the issuance of California Municipal Finance Authority Revenue and Refunding Bonds (HumanGood)
RECOMMENDATION:
Staff recommends adoption of the attached Resolution.
BACKGROUND:
HumanGood, a California nonprofit public benefit corporation (the “Corporation”), has requested that the California Municipal Finance Authority (the “CMFA”) participate in the issuance of one or more series of revenue bonds in an aggregate principal amount not to exceed Two Hundred Five Million Dollars ($205,000,000) (the “Bonds”). The proceeds of the Bonds will be used to finance expenditures for various renovations to existing infrastructure and upgrades to housing units and amenities at the continuing care community owned and operated by the Corporation known as Rosewood, located at 1301 New Stine Road, Bakersfield (the “Project”).
In order for the Bonds to qualify as tax -exempt bonds, City must conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (the “TEFRA Hearing”) providing for 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.
Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
In light of the foregoing, and in order to support affordable housing, staff recommends that the City conduct the TEFRA Hearing and adopt the resolution in favor of the issuance of the Bonds by the CMFA.
FISCAL IMPACT:
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Corporation, and City will have n o financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bond s are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Corporation.
ATTACHMENTS:
Resolution